Einstein Bros 2011 Annual Report Download - page 64

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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]
Cash paid during the year to date period ended:
Interest related to:
Term loans and credit facility $ 3,910 $ 3,032 $ 2,235
Series Z 194 1,677 —
Other 250 458 649
Income taxes $ 1,225 $ 223 $ 733
Non-cash investing activities:
Non-cash purchase of equipment through capital leasing $ 14 $— $ 38
Change in accrued expenses for purchases of property and equipment $ (295) $ (351) $ 1,695
16. RELATED PARTY TRANSACTIONS
Greenlight Capital, L.L.C. (“Greenlight”) and its affiliates beneficially owned approximately 64 percent of the Company’ s common stock as
of January 3, 2012. Greenlight has sufficient voting power, without the vote of any other stockholders, to determine what matters will be submitted
for approval by the Company’ s stockholders, to elect all of the Board, and among other things, to determine whether a change in control of the
Company occurs. The Company’ s chairman, E. Nelson Heumann, was an employee of Greenlight until his retirement from Greenlight in February
2011.
79
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
17. COMMITMENTS AND CONTINGENCIES
Letters of Credit
See Note 8 for information regarding the Company’ s outstanding letters of credit.
Leases
The Company leases certain equipment under capital leases. Included in property, plant and equipment are the asset values of $112,000 and
$157,000 and the related accumulated amortization of $85,000 and $113,000 as of December 28, 2010 and January 3, 2012, respectively.
Amortization of assets under capital leases of less than $0.1 million is included in depreciation and amortization expense for each of the fiscal
years 2009, 2010 and 2011.
The Company leases office space, restaurant space and certain equipment under operating leases having terms that expire at various dates
through the fiscal year ended 2024. The restaurant leases have renewal clauses of 1 to 20 years at the Company’ s option and, in some cases, have
provisions for contingent rent based upon a percentage of gross sales, as defined in the leases. Rent expense for fiscal years 2009, 2010 and 2011
was $31.0 million, $31.1 million and $31.8 million, respectively. Contingent rent expense for fiscal years 2009, 2010 and 2011 was $0.2 million,
$0.1 million and $0.2 million, respectively
As of January 3, 2012, future minimum lease payments under capital and operating leases were as follows:
Fiscal year:
Capital
Leases
Operating
Leases
(in thousands)
2012 $ 24 $ 31,823
2013 22 27,827
2014 8 24,908
2015 1 21,559
2016 — 16,554
Thereafter — 22,985
Total minimum lease payments $ 55 $145,656
Less imputed interest (average rate of 4.75%) 10
Present value of minimum lease payments $ 45
Less current portion of obligations under capital leases 19
Obligations under capital leases, long-term $ 26