Panera Bread 2012 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2012 Panera Bread annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
55
The Company has not recorded a goodwill impairment charge in the fiscal years 2012, 2011, and 2010, respectively. In addition,
the Company recorded $0.3 million of measurement period adjustments increasing goodwill involving the Milwaukee and North
Carolina franchise acquisitions during the fiscal year ended December 25, 2012. There were no measurement period adjustments
recorded during the fiscal years ended December 27, 2011 and December 28, 2010.
9. Other Intangible Assets
Other intangible assets consisted of the following (in thousands):
December 25, 2012 December 27, 2011
Gross
Carrying
Value Accumulated
Amortization
Net
Carrying
Value
Gross
Carrying
Value Accumulated
Amortization
Net
Carrying
Value
Trademark . . . . . . . . . . . . . . . . . . $ 5,610 $ (1,504) $ 4,106 $ 5,610 $ (1,250) $ 4,360
Re-acquired territory rights . . . . . 97,129 (15,985) 81,144 68,129 (8,537) 59,592
Favorable leases . . . . . . . . . . . . . . 5,056 (2,233) 2,823 4,996 (1,679) 3,317
Total other intangible assets. . . . . $ 107,795 $ (19,722) $ 88,073 $ 78,735 $ (11,466) $ 67,269
Amortization expense on these intangible assets for the fiscal years ended December 25, 2012, December 27, 2011, and
December 28, 2010, was approximately $8.2 million, $5.7 million, and $2.0 million respectively. Future amortization expense on
these intangible assets as of December 25, 2012 is estimated to be approximately: $9.0 million in fiscal 2013, $8.8 million in fiscal
2014, $8.6 million in fiscal 2015, $8.6 million in fiscal 2016, $8.5 million in fiscal 2017 and $44.6 million thereafter.
10. Accrued Expenses
Accrued expenses consisted of the following (in thousands):
December 25,
2012 December 27,
2011
Unredeemed gift cards, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 78,587 $ 58,321
Compensation and related employment taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,751 41,491
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,903 23,629
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,135 19,116
Taxes, other than income tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,224 18,512
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,526 5,334
Fresh dough and other product operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,175 7,101
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,986 5,958
Loyalty program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,667 5,916
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,255 4,170
Deferred acquisition purchase price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,111 2,565
Litigation settlements (Note 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,729 5,000
Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,775 2,236
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,345 23,101
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 268,169 $ 222,450
11. Credit Facility
On November 30, 2012, the Company terminated the Amended and Restated Credit Agreement, dated March 7, 2008, by and
among Bank of America, N.A., and other lenders party thereto, which the Company refers to as the Prior Credit Agreement. As
of the date of termination, the Company had no loans outstanding and was in compliance with all covenants under the Prior Credit
Agreement.
On November 30, 2012, the Company entered into a new credit agreement (the “Credit Agreement”) with Bank of America, N.A.
and other lenders party thereto. The Credit Agreement provides for an unsecured revolving credit facility of $250.0 million and