Einstein Bros 2003 Annual Report Download - page 43

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http://www.sec.gov/Archives/edgar/data/949373/000104746904009609/a2132006z10-k.htm[9/11/2014 10:13:55 AM]
In addition to approving the Equity Recap at our September 24, 2003 annual meeting, our stockholders approved the following restructuring-
related items:
•amending our Restated Certificate of Incorporation to effect a one-for-one hundred reverse stock split following the consummation
of the transactions contemplated by the Equity Recap;
•amending our Restated Certificate of Incorporation to reduce the number of shares of common stock authorized for issuance
following the consummation of the effectiveness of the reverse stock split;
•amending our Restated Certificate of Incorporation to eliminate the classification of the board of directors; and
•amending our Restated Certificate of Incorporation to allow our stockholders to take action by written consent of the holders of 80%
of our capital stock entitled to vote on such action.
The 1.6610444-for-one forward stock split and the one-for-one hundred reverse stock split have been retroactively reflected in the
accompanying financial statements and footnotes for all periods presented.
F-9
Principles of Consolidation
The consolidated financial statements herein include our accounts and the accounts of our wholly owned subsidiaries. All material
intercompany accounts and transactions have been eliminated.
Fiscal Year
Effective for the quarter ended July 3, 2001 and as a result of the Einstein Acquisition (see Note 3), we elected to change our fiscal year end to
the Tuesday closest to December 31. Our annual accounting period had previously ended on the Sunday closest to December 31. The fiscal year-
end dates for 2003, 2002 and 2001 are December 30, 2003, December 31, 2002 and January 1, 2002, respectively, resulting in all years containing
52 weeks.
Cash and Cash Equivalents
We consider cash on hand and on deposit and short-term, highly liquid instruments purchased with maturities of three months or less to be
cash equivalents.
Restricted Cash
Restricted Cash consists of the following:
December 30,
2003
December 31,
2002
(amounts in thousands)
Advertising Funds(a) $ 667 $ 770
New Jersey Economic Development Authority(b) 1,684 —
Worker's Compensation Insurance Collateral(c) 2,500 —
4,851 770
Less-current portion of long-term restricted cash 1,815 770
Long-term restricted cash $ 3,036 $ —
(a) We act as custodian for certain funds paid by our franchisees that are earmarked as advertising fund contributions.