Einstein Bros 2009 Annual Report Download - page 55

Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312510040721/d10k.htm[9/11/2014 10:09:50 AM]
Operating loss carryforwards, net of unrecognized tax benefits
51,633
46,554
§481(a) tax accounting method change (1,029) (413)
Property, plant and equipment 11,449 1,841
Deferred rent 809 498
Stock-based compensation 831 1,010
Alternative minimum tax 539 464
Interest rate swap 966 500
Total gross long-term deferred tax assets, net of liabilities 65,198 50,454
Valuation allowance (65,198) (4,248)
Total long-term deferred tax assets, net — 46,206
Total deferred tax assets, net $— $ 53,390
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Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
14. SUPPLEMENTAL CASH FLOW INFORMATION
52 weeks ended
January 1,
2008
December 30,
2008
December 29,
2009
(in thousands)
Cash paid during the year to date period ended:
Interest related to:
Term Loans $ 11,111 $ 5,477 $ 3,910
$25 Million Subordinated Note 825 — —
Other 319 226 250
Prepayment penalty upon redemption of debt $ 240 $— $—
Income taxes $ 274 $ 1,092 $ 1,225
Non-cash investing activities:
Non-cash purchase of equipment through capital leasing $ 24 $ 36 $ 14
Non-cash addition of leasehold improvements provided by lessor $ 1,672 $— $—
Change in accrued expenses for purchases of property and equipment $ (2,125) $ (115) $ (295)
15. RELATED PARTY TRANSACTIONS
E. Nelson Heumann is the chairman of our BOD and is a current employee of Greenlight. Greenlight and its affiliates beneficially own
approximately 65 percent of our common stock. As a result, Greenlight has sufficient voting power without the vote of any other stockholders to
determine what matters will be submitted for approval by our stockholders, to elect all of our BOD, and among other things, to determine whether
a change in control of our company occurs.
We entered into the Subordinated Note with Greenlight in February 2006 and paid it in full during fiscal year 2007. The Subordinated Note
had a maturity date of February 28, 2013, carried a fixed interest rate of 13.75% per annum, required a quarterly cash interest payment in arrears at
6.5% and quarterly paid-in kind interest that is added to the principal balance outstanding at 7.25%. Total interest expense related to the
Subordinated Note with Greenlight was $1.7 million for the year ended January 1, 2008. The Note was repaid from the proceeds of our secondary
offering and amended debt facility in June 2007 as further described in Note 13.
16. COMMITMENTS AND CONTINGENCIES
Letters of Credit and Line of Credit
As of December 29, 2009, we had $7.2 million in letters of credit outstanding. The letters of credit expire on various dates during 2010, are
generally automatically renewable for one additional year and are payable upon demand in the event that we fail to pay the underlying obligation.
Letters of credit reduce our availability under our revolver, which was $12.8 million as of December 29, 2009.
Capital Leases
We lease certain equipment under capital leases. Included in property, plant and equipment are the asset values of $265,000 and $98,000 and
the related accumulated amortization of $194,000 and $66,000 as of December 30, 2008 and December 29, 2009, respectively. Amortization of