Chipotle 2013 Annual Report Download - page 36

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Depreciation and Amortization
For the years ended
December 31
%
increase
2013 over
2012
%
increase
2012 over
20112013 2012 2011
(dollars in millions)
Depreciation and amortization ........... $ 96.1 $ 84.1 $ 74.9 14.2% 12.3%
As a percentage of revenue ............. 3.0% 3.1% 3.3%
As a percentage of total revenue, depreciation and amortization decreased in 2013 and 2012 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
2013 over
2012
%
increase
2012 over
20112013 2012 2011
(dollars in millions)
Provision for income taxes . . . $ 207.0 $ 179.7 $ 134.8 15.2% 33.3%
Effective tax rate ........... 38.7% 39.3% 38.5%
The 2013 effective tax rate decreased by 0.6% from 2012 due primarily to certain federal tax credits that
were extended in 2013, for both 2013 and 2012, which benefited the rate by 1.1%. This decrease was partially
offset by non-recurring adjustments related to state income taxes.
We estimate our 2014 annual effective tax rate will be 39.2%, increasing from 2013 due to the expiration of
certain federal credits, partially offset by a lower estimated state rate.
The 2012 effective tax rate increased 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 0.7% if
certain federal credits that were realized in the 2012 tax return after being extended during 2013 had instead been
extended during 2012.
Quarterly Financial Data/Seasonality
The following table presents data from the consolidated statement of income and comprehensive income for
each of the eight quarters in the period ended December 31, 2013. The operating results for any quarter are not
necessarily indicative of the results for any subsequent quarter.
2013 Quarters Ended
March 31 June 30 September 30 December 31
Revenue ................................ $ 726.8 $ 816.8 $ 826.9 $ 844.1
Operating income ........................ $ 120.0 $ 146.4 $ 137.2 $ 129.1
Net income .............................. $ 76.6 $ 87.9 $ 83.4 $ 79.6
Number of restaurants opened in quarter ...... 48 44 37 56
Comparable restaurant sales increase ......... 1.0% 5.5% 6.2% 9.3%
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%
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
34
Annual Report