Chipotle 2012 Annual Report Download - page 35

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Depreciation and Amortization
For the years ended
December 31
%
increase
2012 over
2011
%
increase
2011 over
20102012 2011 2010
(dollars in millions)
Depreciation and amortization ............ $ 84.1 $ 74.9 $ 68.9 12.3% 8.7%
As a percentage of revenue .............. 3.1% 3.3% 3.8%
As a percentage of total revenue, depreciation and amortization decreased in 2012 and 2011 as a result of
the benefit of higher average restaurant sales on a partially fixed-cost base.
Income Tax Provision
For the years ended
December 31
%
increase
2012 over
2011
%
increase
2011 over
20102012 2011 2010
(dollars in millions)
Provision for income taxes .... $ 179.7 $ 134.8 $ 110.1 33.3% 22.4%
Effective tax rate ............ 39.3% 38.5% 38.1%
The 2012 effective tax rate increased from 2011 primarily due to expiration of certain federal credits, a
smaller benefit from food donations, and higher foreign losses which we are not yet able to recognize. The
increase was partially offset by prior period adjustments. The 2012 effective tax rate would have been lower by
approximately 0.5% if certain federal credits that will be realized in the 2012 tax return had been recognized.
Because these credits were authorized by Congress in January 2013, the benefit of the credits will be recognized
in the first quarter of 2013. We estimate our 2013 annual effective tax rate will be 38.5%, including 0.5%
estimated benefit related to the 2012 reinstated federal tax benefits.
The 2011 effective tax rate increased primarily due to an increase in the state rate, smaller benefit from food
donations and one-time adjustments partially offset by the one-time employment tax credits.
Quarterly Financial Data/Seasonality
The following table presents consolidated statement of income and comprehensive income data for each of
the eight quarters in the period ended December 31, 2012. The operating results for any quarter are not
necessarily indicative of the results for any subsequent quarter.
2012 Quarters Ended
March 31 June 30 September 30 December 31
Revenue ................................ $ 640.6 $ 690.9 $ 700.5 $ 699.2
Operating income ........................ $ 102.2 $ 133.8 $ 117.7 $ 102.2
Net income .............................. $ 62.7 $ 81.7 $ 72.3 $ 61.4
Number of restaurants opened in quarter ...... 32 55 36 60
Comparable restaurant sales increase ......... 12.7% 8.0% 4.8% 3.8%
2011 Quarters Ended
March 31 June 30 September 30 December 31
Revenue ................................ $ 509.4 $ 571.6 $ 591.9 $ 596.7
Operating income ........................ $ 74.8 $ 83.9 $ 98.0 $ 93.9
Net income .............................. $ 46.4 $ 50.7 $ 60.4 $ 57.5
Number of restaurants opened in quarter ...... 12 39 32 67
Comparable restaurant sales increase ......... 12.4% 10.0% 11.3% 11.1%
Seasonal factors cause our profitability to fluctuate from quarter to quarter. Historically, our average daily
restaurant sales and net income are lower in the first and fourth quarters due, in part, to the holiday season and
because fewer people eat out during periods of inclement weather (the winter months) than during periods of
33
Annual Report