Einstein Bros 2006 Annual Report Download - page 55

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http://www.sec.gov/Archives/edgar/data/949373/000104746907001622/a2176540z10-k.htm[9/11/2014 10:12:36 AM]
Depreciation expense was $13.0 million, $18.1 million, and $19.6 million for the fiscal years ended January 2, 2007, January 3, 2006, and
December 28, 2004, respectively.
As of January 2, 2007 and January 3, 2006, manufacturing equipment with a net book value of approximately $1.7 million and $4.4 million,
respectively, was located at the plant of Harlan, our frozen bagel dough supplier. In late 2006, we were notified of Harlan's intent, under the terms
of the contract, to purchase the equipment and we agreed to sell the equipment to Harlan for $1.1 million. In order to adjust the assets down to
their mutually agreed-upon fair value, we recorded an impairment charge of $2.2 million during the quarter ended January 2, 2007. The assets have
been classified as held for sale on the consolidated balance sheet as of January 2, 2007.
66
8. TRADEMARKS AND OTHER INTANGIBLES
Trademarks and other intangibles consist of the following as of:
January 2,
2007
January 3,
2006
(in thousands of dollars)
Amortizing intangibles:
Trade secrets $ 5,385 $ 5,385
Trademarks — 1,082
Patents-manufacturing process 33,741 33,741
39,126 40,208
Less accumulated amortization:
Trade secrets 5,385 4,847
Trademarks — 1,082
Patents-manufacturing process 33,741 30,368
39,126 36,297
Total amortizing intangibles, net $ — $ 3,911
Non-amortizing intangibles:
Trademarks 63,806 63,806
Total trademarks and other intangibles, net $ 63,806 $ 67,717
Intangible amortization expense totaled approximately $3.9 million, $8.2 million, and $8.2 million for the fiscal years ended 2006, 2005, and
2004, respectively. As of January 2, 2007, all amortizing intangibles have been fully amortized.
9. DEBT ISSUANCE COSTS AND OTHER ASSETS
Debt issuance costs and other assets consist of the following:
January 2,
2007
January 3,
2006
(in thousands of dollars)
Security deposits $ 1,006 $ 993
(a)