Einstein Bros 2004 Annual Report Download - page 44

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http://www.sec.gov/Archives/edgar/data/949373/000104746905006202/a2153240z10-k.htm[9/11/2014 10:13:29 AM]
Debt issuance costs and other assets consist of the following:
December 28,
2004
December 30,
2003
Security deposits $ 1,296 $ 1,337
Debt issuance costs, net of amortization 5,957 7,802
Other — 31
Total debt issue costs and other assets $ 7,253 $ 9,170
Direct costs incurred for the issuance of debt are capitalized and amortized using the effective interest method over the term of the respective
debt. In the event that the debt is retired prior to the maturity date, debt issuance costs will be expensed in the period that the debt is retired. The
amortization of debt issuance costs is included in interest expense in the consolidated statements of operations. Amortization expense of
approximately $1,800, $3,100 and $10,600 was recorded for the fiscal years ended 2004, 2003 and 2002, respectively.
9. ACCRUED EXPENSES
Accrued expenses consist of the following:
December 28,
2004
December 30,
2003
Payroll and related bonuses $ 12,450 $ 11,664
Interest 10,249 10,039
Integration and reorganization 21 4,073
Gift cards 2,476 2,301
Other 9,640 9,794
Total accrued expenses $ 34,836 $ 37,871
52
10. SENIOR NOTES AND OTHER LONG-TERM DEBT
Senior notes and other long-term debt consist of the following:
December 28,
2004
December 30,
2003
$160 Million Notes $ 160,000 $ 160,000
AmSouth Revolver 15 1,000
Chesapeake Bagel Bakery Note Payable — 825
New Jersey Economic Development Authority Note Payable 1,120 1,400
161,135 163,225
Less current portion of debt 295 2,105
Long-term debt $ 160,840 $ 161,120
$160 Million Notes
On July 8, 2003, we issued $160,000 of 13% senior secured notes maturing on July 1, 2008 ("$160 Million Notes") in a private placement.
The $160 Million Notes are guaranteed, fully and unconditionally, jointly and severally, by us and all present and future subsidiaries of ours
and is collateralized by substantially all of our assets in which we have an interest. Pursuant to an Intercreditor Agreement, the $160 Million Notes