Einstein Bros 2005 Annual Report Download - page 49

http://www.sec.gov/Archives/edgar/data/949373/000110465906016136/a06-3178_110k.htm[9/11/2014 10:13:03 AM]
Adjustments to the accrual
—
—
—
5
5
Balance at January 3, 2006
$ — $ — $ — $ — $ —
2002 Restructuring
During the quarter ended October 1, 2002, we implemented a plan to shut down our dough manufacturing facilities on the East Coast. During
the quarter ended December 31, 2002, we implemented a plan to terminate the lease obligation for the Eatontown location. We vacated the
Eatontown location in the last week of 2002. When initiated, the restructuring plans were expected to take approximately one year to complete,
subject to our ability to sublease the Eatontown facility. We ultimately recorded a $4.8 million charge associated with the restructuring plans in
2002. Approximately $2.2 million of this charge represented a write-off of equipment and leasehold improvements that were either abandoned or
deemed unusable by us. In the fourth quarter of fiscal 2003, we became aware that the Eatontown facility was in the process of being sold and that
the landlord had engaged a valuation expert to determine the total cost associated with our vacating the facility. Based upon the results of this
study, we adjusted our initial charge to our estimate of the ultimate liability on the Eatontown facility. During April 2004, we reached an
agreement with the landlord of the Eatontown facility to settle outstanding litigation. Previously recorded integration and reorganization estimates
associated with closing this facility were adjusted to reflect a reduction of the prior year’ s accrued cost of $0.7 million.
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NEW WORLD RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
The following table presents the activity and balances related to the 2002 restructuring accrual:
Facility
Consolidation
Costs
Severance
Costs
Contract
Termination
and Other
Costs Total
Initial accrual
$ 1,447 $ 787 $ 300 $ 2,534
Application of costs against the accrual — (662) (168) (830)
Balance at December 31, 2002
$ 1,447 $ 125 $ 132 $ 1,704
Application of costs against the accrual (160) (90) (68) (318)
Adjustments to the accrual
2,413 (35) (33) 2,345
Balance at December 30, 2003
$ 3,700 $ — $ 31 $ 3,731
Application of costs against the accrual (3,000) — — (3,000)
Adjustments to the accrual
(700) — (31) (731)
Balance at December 28, 2004
$ — $ — $ — $ —
19. LOSS (GAIN) ON SALE, DISPOSAL OR ABANDONMENT OF ASSETS
During fiscal 2004, we recorded a loss on disposal or abandonment of assets of approximately $0.1 million due to the disposal of menu boards
as a result of our new menu offerings and approximately $1.5 million due to the abandonment of leasehold improvements related to closed
restaurants and our administrative facilities located in New Jersey. The loss on disposal or abandonment of assets was offset by a gain of
approximately $90,000 on the sale of the assets of Willoughby’ s as further described below.
20. SALE OF WILLOUGHBY’S COFFEE AND TEA
Effective October 6, 2004, we executed an Asset Purchase Agreement and sold the assets of Willoughby’ s to the original founders. The
Willoughby’ s business consisted of a coffee roasting plant, three retail locations and an office space.
Components of the asset sale included, but were not limited to:
· The “Willoughby’ s Coffee & Tea” trade name, trademark and logo,
· The “Serious Coffee” trademark,
· The willoughbyscoffee.com domain name and existing website,
· All property and equipment of Willoughby’ s, and
· Cash in drawer, accounts receivable, and inventory at all Willoughby’ s locations.