Panera Bread 2007 Annual Report Download - page 76

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13. Income Taxes
The provision for income taxes attributable to income before income taxes in the Consolidated Statements of
Operations is comprised of the following (in thousands):
December 25,
2007
December 26,
2006
December 27,
2005
Current:
Federal ................................... $30,438 $34,766 $30,638
State ..................................... 6,453 4,117 1,616
36,891 38,883 32,254
Deferred:
Federal ................................... (4,624) (4,725) (2,166)
State ..................................... (833) (331) (93)
(5,457) (5,056) (2,259)
Tax Provision ................................ $31,434 $33,827 $29,995
A reconciliation of the statutory federal income tax rate to the effective tax rate as a percentage of income
before income taxes follows:
December 25,
2007
December 26,
2006
December 27,
2005
Fiscal Years Ended
Statutory rate provision ......................... 35.0% 35.0% 35.0%
State income taxes, net of federal tax benefit and other. . 0.4 1.5 1.5
35.4% 36.5% 36.5%
The tax effects of the significant temporary differences which comprise the deferred tax assets and liabilities
are as follows (in thousands):
December 25,
2007
December 26,
2006
Deferred tax assets:
Accrued expenses ....................................... $21,980 $ 16,239
Stock-based compensation ................................ 3,988 2,531
Other ................................................ 1,292 143
Total deferred tax assets .................................. $27,260 $ 18,913
Deferred tax liabilities:
Property and equipment .................................. $ (6,497) $ (7,554)
Goodwill ............................................. (11,584) (7,080)
Other ................................................ — (365)
Total deferred tax liabilities ............................... $(18,081) $(14,999)
Net deferred tax asset (liability) .............................. $ 9,179 $ 3,914
Net current deferred tax asset ................................ $ 7,199 $ 3,827
Net non-current deferred tax asset............................. $ 1,980 $ 87
66
PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)