Buffalo Wild Wings 2009 Annual Report Download - page 67

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BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 27, 2009 and December 28, 2008
(Dollar amounts in thousands, except per-share amounts)
(1) Nature of Business and Summary of Significant Accounting Policies
(a) Nature of Business
References in these financial statement footnotes to “company”, “we”, “us”, and “our” refer to the business of Buffalo Wild
Wings, Inc. and our subsidiaries. We were organized for the purpose of operating Buffalo Wild Wings ® restaurants, as well as selling
Buffalo Wild Wings restaurant franchises. In exchange for the initial and continuing franchise fees received, we give franchisees the
right to use the name Buffalo Wild Wings. We operate as a single segment for reporting purposes.
At December 27, 2009, December 28, 2008, and December 30, 2007, we operated 232, 197, and 161 company-owned
restaurants, respectively, and had 420, 363, and 332 franchised restaurants, respectively.
(b) Principles of Consolidation
The consolidated financial statements include the accounts of Buffalo Wild Wings, Inc. and its wholly owned subsidiaries. All
intercompany accounts and transactions have been eliminated in consolidation.
(c) Accounting Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
(d) Fiscal Year
We utilize a 52- or 53-week accounting period that ends on the last Sunday in December. The fiscal years ended December 27,
2009, December 28, 2008 and December 30, 2007, comprised 52 weeks.
(e) Subsequent Events
In preparing the accompanying financial statements, we have evaluated subsequent events through February 25, 2010, the
issuance date of this Annual Report on Form 10-K. We have determined that no events or transactions have occurred subsequent to
December 27, 2009 which require recognition or disclosure in the financial statements.
(f) Cash and Cash Equivalents
Cash and cash equivalents include highly liquid investments with original maturities of three months or less.
(g) Marketable Securities
Marketable securities consist of available-for-sale securities and trading securities that are carried at fair value and
held-to-maturity securities that are stated at amortized cost, which approximates market.
Available-for-sale securities are classified as current assets based upon our intent and ability to use any and all of the securities
as necessary to satisfy the operational requirements of our business. Realized gains and losses from the sale of available-for-sale
securities were not material for fiscal 2009, 2008, and 2007. Unrealized losses are charged against net earnings when a decline in fair
Source: BUFFALO WILD WINGS INC, 10-K, February 26, 2010 Powered by Morningstar® Document Research℠