Einstein Bros 2013 Annual Report Download - page 64

10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312514073832/d629623d10k.htm[9/11/2014 10:05:27 AM]
Miscellaneous bank charges
402
386
458
Income taxes $ 733 $ 660 $ 548
Non-cash investing activities:
Non-cash purchase of equipment through capital leasing $ 38 $ 33 $ 713
Change in accrued expenses for purchases of property and equipment $ 1,695 $ (351) $ (189)
16. RELATED PARTY DEVELOPMENTS
Greenlight Capital, L.L.C. and its affiliates (collectively “Greenlight”) beneficially owned approximately 38% of the Company’ s common
stock as of December 31, 2013. This represents a decrease from Greenlight’ s beneficial ownership of approximately 63% as of January 1, 2013. In
August 2013, Greenlight sold 1.5 million shares of the Company’ s common stock in a secondary offering. In November 2013, Greenlight sold an
additional 2.5 million shares of the Company’ s common stock in another secondary offering. The Company did not receive any proceeds from
these sales of shares and all costs associated with these transactions were charged to Greenlight. 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 $0.1 million
and $0.7 million and the related accumulated amortization of $41,000 and $0.1 million as of January 1, 2013 and December 31, 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 2011, 2012 and 2013.
The Company leases office space, restaurant space and certain equipment under operating leases having terms that expire at various dates
through fiscal 2030. 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 2011, 2012 and 2013 was $31.8
million, $33.3 million and $35.7 million, respectively. Contingent rent expense for fiscal years 2011, 2012 and 2013 was $0.2 million, $0.1 million
and $0.2 million, respectively
As of December 31, 2013, future minimum lease payments under capital and operating leases were as follows:
Fiscal year:
Capital
Leases
Operating
Leases
(in thousands)
2014 $ 288 $ 36,666
2015 281 35,442
2016 280 30,945
2017 6 23,477
2018 — 17,899
Thereafter — 55,761
Total minimum lease payments 855 $200,190
Less imputed interest 124
Present value of minimum lease payments 731
Less current portion of obligations under capital leases 222
Obligations under capital leases, long-term $ 509
The short-term and long-term portions of the Company’ s capital leases are recorded as a component of accrued expenses and other current
liabilities and other liabilities, respectively.
The Company subleases out a portion of its restaurant space on leases where it does not need the entire space for its operations. As of