Einstein Bros 2006 Annual Report Download - page 60

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http://www.sec.gov/Archives/edgar/data/949373/000104746907001622/a2176540z10-k.htm[9/11/2014 10:12:36 AM]
Capital Leases
We lease certain equipment under capital leases. Included in property and equipment are the asset values of $268,000 and $63,000 and the
related accumulated amortization of $37,000 and $16,000 at January 2, 2007 and January 3, 2006, respectively. 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 2006, 2005, and 2004 was approximately $27.2 million, $27.1 million,
and $27.9 million, respectively. Contingent rent included in rent expense for fiscal 2006, 2005, and 2004 was approximately $130,000, $140,000,
and $130,000, respectively.
72
Future Minimum Lease Payments
As of January 2, 2007, future minimum lease payments under capital and operating leases were as follows (in thousands of dollars):
Fiscal year:
Capital
Leases
Operating
Leases
2007 93 26,264
2008 82 21,189
2009 44 18,383
2010 7 15,925
2011 3 10,631
2012 and thereafter — 10,165
Total minimum lease payments 229 $ 102,557
Less imputed interest (average rate of 4.75%) 29
Present value of minimum lease payments 200
Less current installments 76
Future minimum rental payments, net $ 124
13. OTHER LONG-TERM LIABILITIES
Other long-term liabilities consist of the following (in thousands of dollars):
January 2,
2007
January 3,
2006
Vendor contractual agreements(a) $ 7,099 $ 7,175
Guaranteed franchisee debt(b) — 42
Deferred rent 1,648 1,234
Other 75 159
$ 8,822 $ 8,610