Einstein Bros 2007 Annual Report Download - page 63

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http://www.sec.gov/Archives/edgar/data/949373/000104746908002111/a2183061z10-k.htm[9/11/2014 10:12:02 AM]
Finished goods $ 3,835 $ 4,056
Raw materials 1,113 1,257
Total inventories $ 4,948 $ 5,313
6. PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid expenses and other current assets consist of the following:
January 2,
2007
January 1,
2008
(in thousands of dollars)
Prepaid rent $ 2,768 $ 2,886
Short term deposits 736 1,515
Prepaid state franchise tax 120 88
Prepaid maintenance contracts 259 364
Prepaid insurance 387 190
Prepaid other 259 238
Total prepaid expenses and other current assets $ 4,529 $ 5,281
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following:
January 2,
2007
January 1,
2008
(in thousands of dollars)
Leasehold improvements $ 61,688 $ 76,139
Store and manufacturing equipment 72,763 68,714
Furniture and fixtures 1,379 1,527
Office and computer equipment 13,635 14,686
Vehicles 98 37
Property, plant and equipment 149,563 161,103
Less accumulated depreciation 115,674 113,389
Property, plant and equipment, net $ 33,889 $ 47,714
Included in our operating expenses is depreciation expense, which was $18.1 million, $13.0 million and $11.2 million for the fiscal years
ended January 3, 2006, January 2, 2007 and January 1, 2008, respectively. There is no depreciation expense included in our cost of sales.
76
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
7. PROPERTY, PLANT AND EQUIPMENT (Continued)
As of January 2, 2007, we owned manufacturing equipment that 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