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10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312514073832/d629623d10k.htm[9/11/2014 10:05:27 AM]
Transactions for fiscal 2013 were as follows:
Number
of
Shares
Weighted
Average
Grant
Date Fair
Value
Aggregate
Intrinsic
Value
Non-vested rights, January 1, 2013 140,785 $ 14.63
Granted 103,550 14.24
Vested (50,699) 15.04
Forfeited (37,280) 14.23
Non-vested rights, December 31, 2013 156,356 $ 14.33 $2,267,162
As of December 31, 2013, the Company had approximately $0.9 million of total unrecognized compensation cost related to RSUs, which
will be recognized over a weighted average period of 1.41 years.
76
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Restricted Stock
On January 9, 2009, the Company’ s Compensation Committee granted 63,776 shares of restricted stock with a value of $375,000 in
connection with Mr. O’ Neill’ s appointment as President and Chief Executive Officer. The Company recognized compensation cost for this award
using a graded vesting attribution method over the requisite service period. Stock-based compensation expense for fiscal year 2011 includes $0.1
million related to the vesting of these shares. As of January 9, 2012, all shares were fully vested.
12. OTHER OPERATING (INCOME) EXPENSES, NET
Other operating (income) expenses, net consist of the following
Fiscal Year Ended
January 3,
2012
January 1,
2013
December 31,
2013
(in thousands)
Gains on refranchising of restaurants, net $— $— $ (1,319)
Gain on insurance proceeds received (394) — —
Acquisition costs 295 115 20
Losses on Company-owned restaurant closures 113 20 1,276
(Gains) losses on ordinary fixed asset dispositions and other (409) 250 386
Employee wage settlement — — 775
San Francisco Health Care Security Ordinance — 1,207 —
Other operating (income) expenses, net $ (395) $ 1,592 $ 1,138
Gains on refranchising of restaurants, net
On April 3, 2013, the Company sold five company-owned restaurants in the Pittsburgh, Pennsylvania market to an existing franchisee for
$1.8 million. The assets sold had a net book value of $0.2 million and the Company incurred additional costs of $0.1 million associated with this
transaction which resulted in a total gain of $1.5 million. Of the $1.5 million gain, $0.4 million has been deferred as it is contingent upon the
successful renegotiation of a lease. The Company recognized $0.1 million of the deferred gain in fiscal 2013. The remaining $0.3 million of the
deferred gain is recorded as a component of accrued expenses and other current liabilities on the December 31, 2013 consolidated balance sheet.
On November 26, 2013, the Company sold a company-owned restaurant in Fairfield, Connecticut to an existing franchisee for $0.2 million.
The assets sold had a net book value of approximately $0.1 million, resulting in a gain of $0.1 million.
San Francisco Health Care Security Ordinance
On November 29, 2012, the Company agreed to make payments in the total amount of $1.2 million relating to implementation charges for the
San Francisco Health Care Security Ordinance and related legal fees. This charge is recorded as a component of other operating (income)
expenses, net on the fiscal 2012 consolidated statement of income and comprehensive income.