Einstein Bros 2005 Annual Report Download - page 39

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http://www.sec.gov/Archives/edgar/data/949373/000110465906016136/a06-3178_110k.htm[9/11/2014 10:13:03 AM]
NEW WORLD RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
6. PROPERTY AND EQUIPMENT
Property and equipment consists of the following:
January 3, December 28,
2006 2004
(in thousands of dollars)
Leasehold improvements
$ 49,744
$ 49,186
Store and manufacturing equipment
66,810
61,373
Furniture and fixtures
1,193
1,095
Office and computer equipment
11,044
10,404
Vehicles
115
41
128,906
122,099
Less accumulated depreciation
95,547
80,244
Property and equipment, net
$ 33,359
$ 41,855
Depreciation expense was $18.1 million, $19.6 million and $26.2 million for the fiscal years ended January 3, 2006, December 28, 2004 and
December 30, 2003, respectively.
As of January 3, 2006 and December 28, 2004, manufacturing equipment with a net book value of approximately $4.4 million and $5.1
million, respectively, was located at the plant of Harlan Bakeries, Inc., our frozen bagel dough supplier.
7. TRADEMARKS AND OTHER INTANGIBLES
Trademarks and other intangibles consist of the following as of:
January 3, December 28,
2006 2004
(in thousands of dollars)
Amortizing intangibles:
Trade secrets
$ 5,385
$ 5,385
Trademarks 1,082 2,400
Patents—manufacturing process 33,741 33,741
40,208 41,526
Less accumulated amortization:
Trade secrets 4,847 3,770
Trademarks 1,082 725
Patents—manufacturing process 30,368 23,618
36,297 28,113
Total amortizing intangibles, net
$ 3,911
$ 13,413
Non-amortizing intangibles:
Trademarks 63,806 63,806
Total trademarks and other intangibles, net
$ 67,717
$ 77,219
Certain trademarks were previously treated as a non-amortizing intangible and were reclassified as an amortizing intangible at June 29, 2004.
See Note 2 for additional information.
Intangible amortization expense totaled approximately $8.2 million, $8.2 million and $7.8 million for the fiscal years ended 2005, 2004 and
2003, respectively. The remaining aggregate amortization expense of $3.9 million is to be fully amortized during fiscal year 2006.
51
NEW WORLD RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)