Einstein Bros 2012 Annual Report Download - page 46

10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312513085036/d445565d10k.htm[9/11/2014 10:07:50 AM]
Labor costs
109,005
(192)
108,813
Rent and related expenses 39,731 (40) 39,691
Other operating costs 37,732 (36) 37,696
Marketing costs 9,854 (60) 9,794
Total company-owned restaurant costs 302,357 (352) 302,005
General and administrative expenses 38,502 (18) 38,484
Pre-opening expenses — 370 370
Fiscal 2011:
As Previously
Reported Reclassification
As
Adjusted
Cost of sales (exclusive of depreciation and amortization shown separately below):
Company-owned restaurant costs
Cost of goods sold 112,018 (16) 112,002
Labor costs 110,595 (128) 110,467
Rent and related expenses 40,322 (45) 40,277
Other operating costs 39,116 (24) 39,092
Marketing costs 9,836 (40) 9,796
Total company-owned restaurant costs 311,887 (253) 311,634
General and administrative expenses 36,786 (12) 36,774
Pre-opening expenses — 265 265
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions
for the reporting period and as of the reporting date. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and
expenses, and the disclosure of contingencies. Actual results could differ from those estimates.
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. GAAP requires fair value measurement to be classified and disclosed in one of the following three
categories:
• Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or
liabilities.
• Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the
full term of the asset or liability.
• Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable
(i.e., supported by little or no market activity).
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Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The Company’ s financial instruments typically consist of cash equivalents, accounts receivable, accounts payable and debt. The fair values of
accounts receivable and accounts payable approximate their carrying values, due to their short-term maturities. As of January 3, 2012 and
January 1, 2013, total debt under the Company’ s amended and restated credit facility was $74.2 million and $136.7 million, respectively, and had a
fair value of $71.8 million and $136.7 million, respectively. The fair value of the Company’ s debt was estimated based on current rates found in
the market place for debt with the same remaining maturities.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand and highly liquid instruments with original maturities of three months or less when
purchased. Amounts in-transit from credit card processors are also considered cash equivalents because they are both short-term and highly liquid
in nature and are typically converted to cash within three days of the sales transaction.
Restricted Cash