Einstein Bros 2012 Annual Report Download - page 63

10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312513085036/d445565d10k.htm[9/11/2014 10:07:50 AM]
The following table summarizes the activity related to the Company’ s uncertain tax positions:
December 28,
2010
January 3,
2012
January 1,
2013
(in thousands)
Balance, beginning of fiscal year $ 826 $ 1,147 $ 1,006
Increase related to prior period positions — 516 —
Increase related to current year positions 455 35 —
Decrease related to prior period positions (134) (692) (295)
Balance, end of fiscal year $ 1,147 $ 1,006 $ 711
The recorded amounts, if recognized, will have no impact on the effective tax rate due to the existence of NOL carryforwards.
The Company is subject to income taxes in the U.S. federal jurisdiction, and the various state and local jurisdictions in which it operates. Tax
regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to
apply. The Company’ s federal tax filings remain subject to examination for fiscal tax years 2010 and 2011. The IRS has completed its
examinations for tax years 2009 and prior. The Company’ s state and local tax filings remain subject to examination for fiscal tax years 2008
through 2011. Although years prior to fiscal 2008 are no longer subject to examination, the taxing authorities reserve the right to adjust the
Company’ s NOL carryforwards.
15. SUPPLEMENTAL CASH FLOW INFORMATION
Fiscal year ended
December 28,
2010
January 3,
2012
January 1,
2013
(in thousands)
Cash paid during the year to date period ended:
Interest related to:
Term loans and revolving credit facility $ 3,032 $ 2,482 $ 2,385
Mandatorily redeemable preferred stock 1,677 — —
Miscellaneous bank charges 458 402 386
Income taxes $ 223 $ 733 $ 660
Non-cash investing activities:
Non-cash purchase of equipment through capital leasing $— $ 38 $ 33
Change in accrued expenses for purchases of property and equipment $ (351) $ 1,695 $ (351)
16. RELATED PARTY TRANSACTIONS
Greenlight Capital, L.L.C. (“Greenlight”) and its affiliates beneficially owned approximately 63% of the Company’ s common stock as of
January 1, 2013. 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.
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Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
17. COMMITMENTS, CONTINGENCIES AND OTHER DEVELOPMENTS
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 $157,000 and
$98,000 and the related accumulated amortization of $113,000 and $41,000 as of January 3, 2012 and January 1, 2013, 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 2010, 2011
and 2012.