Einstein Bros 2011 Annual Report Download - page 54

Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312512092597/d260635d10k.htm[9/11/2014 10:08:30 AM]
The Company’ s trademarks, which are non-amortizing intangibles, were $63.8 million for both fiscal years 2010 and 2011.
The Company’ s amortizing intangible assets consist of the following as of:
January 3, 2012
Weighted
Average Life
Remaining (yrs) Gross
Accumulated
Amortization
Net
(dollars in thousands)
Tradename 0.42 $ 38 $ (6) $ 32
Reacquired rights 7.68 377 (17) 360
Noncompete agreements 2.92 76 (2) 74
Favorable leases 5.18 85 — 85
6.24 $ 576 $ (25) $551
(1) Excludes the original cost and accumulated amortization of fully-amortized intangibles
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Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The Company estimates that the amortization of these intangibles will approximate $0.1 million per year over the next five years.
7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consist of the following as of:
December 28, January 3,
2010 2012
(in thousands)
Payroll and labor related expense $ 11,580 $ 12,431
Sales, use and property tax expense 2,708 2,877
Dividends payable 2,081 2,100
Deferred gift card revenue 1,039 3,165
Other 3,080 4,038
Total accrued expenses and other current liabilities $ 20,488 $ 24,611
Other increased by $1.0 million due to $0.4 million of amounts due on the Company’ s acquisitions and the timing of accruals in the normal
course of business.
8. LONG-TERM DEBT
On December 20, 2010, the Company entered into a $125 million credit facility with Bank of America and a syndicate of institutional
lenders, which has since been amended (the “Senior Credit Facility”).
The Senior Credit Facility has a commitment of up to $125 million, including a term loan of up to $75 million (the “Term Loan”) and a
revolving credit facility of up to $50 million (the “Revolving Facility”). Borrowings under the Senior Credit Facility bear interest at a rate equal to
an applicable margin plus, at the Company’ s option, either a variable base rate or a Eurodollar rate (which is calculated based off of London
InterBank Offered Rates (“LIBOR”)). The applicable margin for Eurodollar rate loans ranges from 2.5% to 3.0% and for base rate loans ranges
from 1.5% to 2.0%, depending on the level of the Company’ s consolidated leverage ratio (as defined in the Senior Credit Facility). Upon the
occurrence of a payment event of default which is continuing, all amounts due under the Senior Credit Facility will bear interest at 2.0% above the
interest rate otherwise applicable.
The Senior Credit Facility matures on December 20, 2015 (the “Maturity Date”). Commencing March 31, 2011, quarterly payments on the
term loan, ranging in value between $1.8 million and $2.8 million over the term of the Senior Credit Facility, are due on the last day of each
calendar quarter, with any remaining amounts due and payable upon maturity. The Term Loan also requires mandatory prepayments of:
• 100% of net cash proceeds of asset sales and insurance and condemnation proceeds above a threshold and subject to the ability to
reinvest under certain circumstances; and
• 100% of net cash proceeds of any debt issued by the Company, subject to certain exceptions.
(1) (1)