Baskin Robbins 2013 Annual Report Download - page 89

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preferred return of 9% per annum, compounded quarterly, was added to the Class L preferential distribution amount each
period and recorded as an increase to accumulated deficit. Dividends paid on the Class L common stock reduced the Class L
preferential distribution amount.
Immediately prior to the initial public offering, each outstanding share of Class L common stock converted into approximately
0.2189 of a share of common stock plus 2.2149 shares of common stock, which was determined by dividing the Class L
preference amount, $38.8274, by the initial public offering price net of the estimated underwriting discount and a pro rata
portion, based upon the number of shares sold in the offering, of the estimated offering-related expenses. As such, the
22,866,379 shares of Class L common stock that were outstanding at the time of the offering converted into 55,652,782 shares
of common stock.
The changes in Class L common stock were as follows (in thousands):
Fiscal year ended
December 31, 2011
Shares Amount
Common stock, Class L, beginning of year 22,995 $ 840,582
Issuance of Class L common stock 65 2,270
Repurchases of Class L common stock —(113)
Retirement of treasury stock (194)—
Accretion of Class L preferred return — 45,102
Conversion of Class L shares to common shares (22,866)(887,841)
Common stock, Class L, end of year —$ —
Common shares issued and outstanding included in the consolidated balance sheets include vested and unvested restricted
shares. Common stock in the consolidated statement of stockholders’ equity excludes unvested restricted shares.
(c) Treasury stock
During fiscal year 2011, the Company repurchased a total of 23,624 shares of common stock and 3,266 shares of Class L shares
that were originally sold and granted to former employees of the Company. The Company accounts for treasury stock under the
cost method, and as such recorded increases in common treasury stock of $173 thousand during fiscal year 2011, based on the
fair market value of the shares on the respective dates of repurchase. During fiscal year 2011, the Company retired all of its
treasury stock, resulting in a $2.0 million reduction in common treasury stock and additional paid-in-capital.
In August 2012, the Company repurchased a total of 15,000,000 shares of common stock at a price of $30.00 per share from
certain existing stockholders, and incurred approximately $341 thousand of third-party costs in connection with the repurchase.
The Company recorded an increase in common treasury stock of $450.4 million during fiscal year 2012, based on the fair
market value of the shares on the date of repurchase and the direct costs incurred. During fiscal year 2012, the Company
retired all outstanding treasury stock, resulting in decreases in common treasury stock and additional paid-in capital of $15
thousand and $180.0 million, respectively, and an increase in accumulated deficit of $270.3 million.
During the fiscal year 2013, the Company repurchased a total of 648,000 shares of common stock at a weighted average price
per share of $43.14 from existing stockholders. The Company recorded an increase in common treasury stock of $28.0 million
during fiscal year 2013, based on the fair market value of the shares on the date of repurchase and direct costs incurred. In
October 2013, the Company retired 417,300 shares of treasury stock, resulting in decreases in common treasury stock and
additional paid-in capital of $17.2 million and $4.7 million, respectively, and an increase in accumulated deficit of $12.5
million.
(d) Accumulated other comprehensive income
The components of accumulated other comprehensive income were as follows (in thousands):
Effect of
foreign
currency
translation
Unrealized
gains (losses)
on interest rate
swaps
Unrealized loss
on pension
adjustment Other
Accumulated
other
comprehensive
income
Balances at December 29, 2012 $ 14,914 (1,655)(2,486)(1,632) 9,141
Other comprehensive income (loss) (14,909) 7,740 (612)(21)(7,802)
Balances at December 28, 2013 $ 5 6,085 (3,098)(1,653) 1,339