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Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312512092597/d260635d10k.htm[9/11/2014 10:08:30 AM]
Goodwill
4,581
Accrued expense and other current liabilities (199)
Total purchase price $ 7,270
Amounts withheld (429)
Net cash paid at closing $ 6,841
The goodwill of $4.6 million arising from these acquisitions consists largely of the synergies and economies of scale expected from
combining the acquired operations with the Company. All of the goodwill recognized is expected to be deductible for income tax purposes.
The Company withholds certain amounts at the closing of each transaction for specified periods of time. The amounts withheld are applied to
any invoices that relate to the seller after the closing date of the transaction. The Company will then pay the difference to the seller at an agreed
upon date. As of January 3, 2012, the Company has $0.4 million recorded as a component of accrued expenses and other current liabilities on the
accompanying consolidated balance sheet.
The Company treats acquisition related costs as expenses in the periods in which they are incurred. For the fiscal year ended January 3, 2012,
the Company recorded $0.3 million in acquisition costs related to these nine acquisitions. These amounts are included in other operating expenses
(income), net on the accompanying consolidated statement of operations.
66
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
4. INVENTORIES
Inventories consist of the following as of:
December 28,
2010
January 3,
2012
(in thousands)
Finished goods $ 4,205 $ 4,489
Raw materials 1,380 1,073
Total inventories $ 5,585 $ 5,562
5. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following as of:
December 28,
2010
January 3,
2012
(in thousands)
Leasehold improvements $ 104,452 $108,833
Store and manufacturing equipment 88,630 94,984
Furniture and fixtures 1,320 1,356
Office and computer equipment 18,274 24,609
Vehicles 41 41
Property, plant and equipment 212,717 229,823
Less accumulated depreciation 156,054 170,806
Property, plant and equipment, net $ 56,663 $ 59,017
Depreciation expense was $16.6 million, $17.8 million and $19.2 million for the fiscal years ended 2009, 2010 and 2011, respectively. The
Company does not allocate depreciation expense to cost of sales.
6. GOODWILL, TRADEMARKS AND OTHER INTANGIBLES
The Company’ s goodwill was $5.0 million and $9.6 million for the fiscal years ended December 28, 2010 and January 3, 2012, respectively.
$5.0 million of the goodwill is attributable to the Company’ s acquisition of Manhattan Bagel in 1998. The $4.6 million increase is due to the
Company’ s acquisitions in fiscal 2011 (see Note 3).