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PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
55
The Company recorded depreciation expense related to these assets of $97.2 million, $82.7 million, and $74.2 million for the
fiscal years ended December 31, 2013, December 25, 2012, and December 27, 2011, respectively.
8. Goodwill
The following is a reconciliation of the beginning and ending balances of the Company’s goodwill by reportable segment at
December 31, 2013 and December 25, 2012 (in thousands):
Company Bakery-
Cafe Operations
Franchise
Operations
Fresh Dough and Other
Product Operations Total
Balance as of December 27, 2011 . . . . . . . $ 104,442 $ 1,934 $ 1,695 $ 108,071
Acquisition of North Carolina Franchisee . 13,509 — — 13,509
Currency translation . . . . . . . . . . . . . . . . . . 65 — — 65
Measurement period adjustments . . . . . . . . 258 — — 258
Balance as of December 25, 2012 . . . . . . . $ 118,274 $ 1,934 $ 1,695 $ 121,903
Acquisition of Florida bakery-cafe. . . . . . . 1,278 — — 1,278
Currency translation . . . . . . . . . . . . . . . . . . (173)— —
(173)
Measurement period adjustments . . . . . . . . 5 — — 5
Balance as of December 31, 2013 $ 119,384 $ 1,934 $ 1,695 $ 123,013
The Company has not recorded a goodwill impairment charge in the fiscal years 2013, 2012, and 2011, respectively. In addition,
the Company recorded measurement period adjustments of less than $0.1 million and $0.3 million during the fiscal years ended
December 31, 2013 and December 25, 2012, respectively, increasing goodwill involving the Milwaukee and North Carolina
franchise acquisitions.
9. Other Intangible Assets
Other intangible assets consisted of the following (in thousands):
December 31, 2013 December 25, 2012
Gross
Carrying
Val ue
Accumulated
Amortization
Net
Carrying
Val ue
Gross
Carrying
Val ue
Accumulated
Amortization
Net
Carrying
Val ue
Trademark . . . . . . . . . . . . . . . . . . $ 5,610 $ (1,763) $ 3,847 $ 5,610 $ (1,504) $ 4,106
Re-acquired territory rights . . . . . 97,865 (24,254) 73,611 97,129 (15,985) 81,144
Favorable leases . . . . . . . . . . . . . . 4,866 (2,556) 2,310 5,056 (2,233) 2,823
Total other intangible assets. . . . . $ 108,341 $ (28,573) $ 79,768 $ 107,795 $ (19,722) $ 88,073
Amortization expense on these intangible assets for the fiscal years ended December 31, 2013, December 25, 2012, and
December 27, 2011, was approximately $9.3 million, $8.2 million, and $5.7 million, respectively. Future amortization expense
on these intangible assets as of December 31, 2013 is estimated to be approximately: $8.8 million in fiscal 2014, $8.7 million in
fiscal 2015, $8.6 million in fiscal 2016, $8.6 million in fiscal 2017, $8.5 million in fiscal 2018 and $36.6 million thereafter.