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http://www.sec.gov/Archives/edgar/data/949373/000104746908002111/a2183061z10-k.htm[9/11/2014 10:12:02 AM]
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
share would have been increased to the following pro forma amounts (in thousands of dollars, except per share amounts):
For the year to date periods ended
January 3,
2006
January 2,
2007
January 1,
2008
Net income (loss), as reported $ (14,018) $ (6,868) $ 12,586
Deduct: fair value based compensation expense (1,164) — —
Pro forma net income (loss) (15,182) (6,868) 12,586
Basic and diluted loss per common share:
As reported—Basic $ (1.42) $ (0.66) $ 0.93
As reported—Diluted $ (1.42) $ (0.66) $ 0.88
Pro forma—Basic $ (1.54) $ (0.66) $ 0.93
Pro forma—Diluted $ (1.54) $ (0.66) $ 0.88
As of January 1, 2008, we have approximately $1.6 million of total unrecognized compensation cost related to non-vested awards granted
under our option plans, which we expect to recognize over a weighted-average period of 2.2 years. Total compensation costs related to the options
outstanding as of January 1, 2008 will be fully recognized by fourth quarter of fiscal 2010, which represents the end of the requisite service period.
Recent Accounting Pronouncements
In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements ("SFAS No. 157"), which defines fair value, establishes a
framework for measuring fair value in accordance with GAAP and expands disclosures about fair value measurements. SFAS No. 157 is effective
for fiscal years beginning after November 15, 2007. We do not believe such adoption will have a material impact on our consolidated financial
statements.
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities—Including an
Amendment of SFAS No. 115 ("SFAS No. 159"), which becomes effective for fiscal periods beginning after November 15, 2007. Under SFAS
No. 159, companies may elect to measure specified financial instruments and warranty and insurance contracts at fair value on a contract-by-
contract basis, with changes in fair value recognized in earnings each reporting period. This election, called the "fair value option," will enable
some companies to reduce volatility in reported earnings caused by measuring related assets and liabilities differently. We do not expect the impact
of adoption to have a material impact on our consolidated financial statements.
In December 2007, the FASB issued SFAS 141 (revised 2007), Business Combinations, ("SFAS 141R"). SFAS 141R establishes principles
and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, including goodwill, the
liabilities assumed and any non-controlling interest in the acquiree. The Statement also establishes disclosure requirements to enable users of the
financial statements to evaluate the nature and financial effects of the business combination. SFAS 141R is effective for business combinations for
which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after
73
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES