Einstein Bros 2004 Annual Report Download - page 46

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http://www.sec.gov/Archives/edgar/data/949373/000104746905006202/a2153240z10-k.htm[9/11/2014 10:13:29 AM]
New Jersey Economic Development Authority Note Payable
In December 1998, Manhattan entered into a note payable in the principal amount of $2,800 with the New Jersey Economic Development
Authority (NJEDA) at an interest rate of 9% per annum. Principal is paid annually and interest is paid quarterly. The note matures on December 1,
2008 and is secured by the assets of Manhattan.
On July 3, 2003, we placed an advanced funding of the note in escrow to enact a debt defeasance as allowed for in the agreement. This
advanced funding is shown as restricted cash and the note is
54
included in both current portion and long-term portion of debt in the December 28, 2004 and December 30, 2003 consolidated balance sheets in
accordance with the payment terms. This classification will continue until the note is fully paid from the escrow amount proceeds.
Our senior notes and other long-term debt obligations for the five years following December 28, 2004 are as follows (in thousands of dollars):
Fiscal year:
2005 $ 295
2006 280
2007 280
2008 160,280
2009 —
Thereafter —
$ 161,135
11. LEASES
Capital Leases
We lease certain equipment under capital leases. Included in property and equipment are the asset values of $51 and the related accumulated
amortization of $5 at December 28, 2004. Amortization of assets under capital leases is included in depreciation and amortization expense.
Operating Leases
We lease office space, restaurant space and certain equipment under operating leases having terms that expire at various dates through fiscal
2017. Our restaurant leases have renewal clauses of 1 to 20 years at our option and, in some cases, have provisions for contingent rent based upon
a percentage of gross sales, as defined in the leases. Rent expense for fiscal 2004, 2003 and 2002 was approximately $31,400, $31,200 and
$30,500, respectively. Contingent rent included in rent expense for fiscal 2004, 2003 and 2002 was approximately $3,700, $3,500 and $2,900,
respectively.
55
Future Minimum Lease Payments
As of December 28, 2004, future minimum lease payments under capital and operating leases were as follows (in thousands of dollars):
Fiscal year:
Capital
Leases
Operating
Leases
2005 $ 18 $ 26,358
2006 18 20,158
2007 14 10,734
2008 — 4,644