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PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
54
8. Goodwill
The following is a reconciliation of the beginning and ending balances of the Company’s goodwill by reportable segment at
December 30, 2014 and December 31, 2013 (in thousands):
Company Bakery-
Cafe Operations
Franchise
Operations
Fresh Dough and Other
Product Operations Total
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
Impairment charge . . . . . . . . . . . . . . . . . . . (2,057)— —
(2,057)
Currency translation . . . . . . . . . . . . . . . . . . (178)— —
(178)
Balance as of December 30, 2014 . . . . . . . $ 117,149 $ 1,934 $ 1,695 $ 120,778
The Company recorded a $2.1 million full impairment charge of goodwill for the Canadian bakery-cafe operations reporting unit
during the fourth quarter of fiscal 2014. The Company did not record a goodwill impairment charge in either fiscal 2013 or fiscal
2012.
9. Other Intangible Assets
Other intangible assets consisted of the following (in thousands):
December 30, 2014 December 31, 2013
Gross
Carrying
Val ue
Accumulated
Amortization
Net
Carrying
Val ue
Gross
Carrying
Val ue
Accumulated
Amortization
Net
Carrying
Val ue
Trademark . . . . . . . . . . . . . . . . . . $ 5,610 $ (2,017) $ 3,593 $ 5,610 $ (1,763) $ 3,847
Re-acquired territory rights . . . . . 97,865 (32,369) 65,496 97,865 (24,254) 73,611
Favorable leases . . . . . . . . . . . . . . 4,825 (2,974) 1,851 4,866 (2,556) 2,310
Total other intangible assets. . . . . $ 108,300 $ (37,360) $ 70,940 $ 108,341 $ (28,573) $ 79,768
Amortization expense on these intangible assets for fiscal 2014, fiscal 2013, and fiscal 2012, was approximately $8.7 million,
$9.3 million, and $8.2 million, respectively. Future amortization expense on these intangible assets as of December 30, 2014 is
estimated to be approximately: $8.7 million in fiscal 2015, $8.6 million in fiscal 2016, $8.6 million in fiscal 2017, $8.5 million
in fiscal 2018, $8.1 million in fiscal 2019 and $28.4 million thereafter.