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10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312514073832/d629623d10k.htm[9/11/2014 10:05:27 AM]
68
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Depreciation expense was $19.2 million, $19.6 million and $18.1 million for fiscal 2011, 2012 and 2013, respectively. The Company does
not allocate depreciation expense to cost of sales.
6. GOODWILL, TRADEMARKS AND OTHER INTANGIBLES
The Company’ s goodwill was $10.8 million for both fiscal years 2012 and 2013. $6.1 million of the goodwill is attributable to the
Company’ s 1998 and 2012 acquisitions of Manhattan Bagel restaurants and is assigned to the Company’ s Manhattan Bagel reporting unit. The
remaining $4.7 million of goodwill relates to the Company’ s acquisitions in fiscal 2011 and is assigned to the Company’ s Einstein Bros. reporting
unit.
The Company’ s trademarks, which are non-amortizing intangibles, were $63.8 million for both fiscal years 2012 and 2013.
The Company’ s amortizing intangible assets consist of the following as of:
January 1, 2013
Weighted
Average Life
Remaining (yrs) Gross
Accumulated
Amortization
Net
(dollars in thousands)
Tradename — $ 38 $ (38) $—
Reacquired rights 6.68 377 (63) 314
Noncompete agreements 1.92 76 (28) 48
Favorable leases 4.18 85 (18) 67
5.26 $ 576 $ (147) $429
December 31, 2013
Weighted
Average Life
Remaining (yrs) Gross
Accumulated
Amortization
Net
(dollars in thousands)
Reacquired rights 6.38 $ 615 $ (118) $497
Noncompete agreements 0.92 76 (53) 23
Favorable leases 7.48 138 (3) 135
6.42 $ 829 $ (174) $655
(1) Excludes intangibles that were fully amortized as of the start of the fiscal year.
Amortization expense was $25,000, $0.1 million and $0.1 million for fiscal 2011, 2012 and 2013, respectively. The Company estimates that
the amortization of these intangibles will approximate $0.1 million per year over the next five years.
69
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consist of the following as of:
January 1, December 31,
2013 2013
(in thousands)
Payroll and labor related expense $ 11,918 $ 8,926
(1) (1)
(1) (1)