Einstein Bros 2005 Annual Report Download - page 48

http://www.sec.gov/Archives/edgar/data/949373/000110465906016136/a06-3178_110k.htm[9/11/2014 10:13:03 AM]
As of January 3, 2006, we have 739,961 warrants outstanding and exercisable to purchase shares of our common stock. The warrants have
exercise prices ranging from $0.60 to $663.00 per share, of which 737,449 are exercisable at $1.20 or less per share, and have an expiration date of
June 20, 2006. Such warrants were issued in connection with financings and certain other services (see Note 13 for further information regarding
the accounting, conversion and valuation of warrants). Transactions during fiscal 2005, 2004 and 2003 were as follows:
2005 2004 2003
Outstanding at beginning of year
961,391 968,337 659,328
Issued — — 541,027
Exercised (216,359) (6,885) —
Converted — — (227,747)
Forfeited
(5,071) (61) (4,271)
Outstanding and exercisable at end of year
739,961 961,391 968,337
17. SAVINGS PLAN
We sponsor a qualified defined contribution retirement plan covering eligible employees of New World Restaurant Group (the 401(k) Plan).
Employees, excluding officers, are eligible to participate in the plan if they meet certain compensation and eligibility requirements. The
401(k) Plan allows participating employees to defer the receipt of a portion of their compensation and contribute such amount to one or more
investment options. We have accrued a discretionary match of approximately 35% of the participants’ elective contribution for 2005. Our
contribution to the plan was $0.3 million, $0.3 million and $0.2 million for 2005, 2004 and 2003, respectively. Employer contributions vest at the
rate of 100% after three years of service.
18. INTEGRATION AND REORGANIZATION COSTS
2001 Restructuring
During the quarter ended July 3, 2001, we implemented a plan to consolidate our two dough manufacturing facilities on the West Coast,
eliminate duplicative labor lines of assembly, and terminate certain lease obligations inclusive of several restaurant and other locations. We initially
recorded a restructuring accrual of approximately $4.4 million associated with this restructuring plan. Approximately
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NEW WORLD RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
$1.0 million of this charge represented a write-off of equipment and leasehold improvements that were either abandoned or deemed unusable by us.
The following table presents the activity and balances related to the 2001 restructuring accrual:
Facility
Consolidation
Costs
Severance
Costs
Contract
Termination
and Other
Costs
Store Lease
Termination Total
Initial accrual
$ 379 $ 151 $ 233 $ 2,629 $ 3,392
Application of costs against the accrual — — (204) (293) (497)
Adjustments to the accrual
— — 29 12 41
Balance at January 1, 2002
$ 379 $ 151 $ 58 $ 2,348 $ 2,936
Application of costs against the accrual (68) (229) (94) (907) (1,298)
Adjustments to the accrual
— 85 43 (702) (574)
Balance at December 31, 2002
$ 311 $ 7 $ 7 $ 739 $ 1,064
Application of costs against the accrual (266) — (14) (229) (509)
Adjustments to the accrual
(32) (7) 7 (181) (213)
Balance at December 30, 2003
$ 13 $ — $ — $ 329 $ 342
Application of costs against the accrual (15) — — (168) (183)
Adjustments to the accrual
2 — — (140) (138)
Balance at December 28, 2004
$ — $ — $ — $ 21 $ 21
Application of costs against the accrual — — — (26) (26)