Einstein Bros 2002 Annual Report Download - page 88

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http://www.sec.gov/Archives/edgar/data/949373/000104746903027186/a2116520z10-ka.htm[9/11/2014 10:14:22 AM]
damages from defendants, jointly and severally, in the total specified amount of $118,555.49, plus late charges, taxes, interest, costs and attorneys'
fees. The Company has not yet answered or otherwise responded to plaintiff's complaint.
Special Situations, holders of Series F preferred stock, had notified the Company that they believed that material misrepresentations were
made to them in connection with their purchase of the stock and filed a complaint in the United States District Court for the Southern District
seeking damages in the amount of at least $5,166,000 and the equitable remedy of rescission of its purchase of stock. Prior to responding to Special
Situations' complaint, the Company and Special Situations entered into a settlement agreement and release on April 29, 2003, pursuant to which
the Company agreed to settle Special Situations' claims against the Company and its present and former officers, directors, agents and other
representatives, and Special Situations agreed to release those entities and individuals, in exchange for payment to Special Situations of $176,000.
A Notice of Voluntary Withdrawal was filed by Special Situations with the United States District Court for the Southern District of New York on
May 5, 2003.
F-60
Schedule II—Valuation of Qualifying Accounts
Balance at
Beginning of
Period
Additions
Deductions
Balance at End
of Period
(amounts in thousands)
For the fiscal year ended December 31, 2000:
Allowance for doubtful accounts $ 9,559 $ 1,357 $ 7,454 $ 3,462
Restructuring reserve 926 — 926 —
Valuation allowance for deferred taxes $ 7,136 $ 5,696 — $ 12,832
For the fiscal year ended January 1, 2002:
Allowance for doubtful accounts $ 3,462 $ 1,175 $ 1,140 $ 4,097
Restructuring reserve — $ 3,446 $ 510 $ 2,936
Valuation allowance for deferred taxes $ 12,832 $ 13,042 — $ 25,874
For the fiscal year ended December 31, 2002:
Allowance for doubtful accounts $ 4,097 $ 505 $ 125 $ 4,574
Restructuring reserve $ 2,936 $ 3,107 $ 3,275 $ 2,768
Valuation allowance for deferred taxes $ 25,874 $ 15,941 — $ 41,815
S-1
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EXPLANATORY NOTE
NEW WORLD RESTAURANT GROUP, INC. FORM 10-K INDEX
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
PART I
ITEM 1. BUSINESS
ITEM 2. PROPERTIES
ITEM 3. LEGAL PROCEEDINGS
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS