Panera Bread 2009 Annual Report Download - page 77

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The following is a roll-forward of the Company’s total gross unrecognized tax benefit liabilities for the fiscal
years ended December 30, 2008 and December 29, 2009 (in thousands):
Balance at December 27, 2006 ............................................. $2,700
Tax positions related to the current year:
Additions ........................................................... 579
Tax positions related to prior years:
Additions ........................................................... 1122
Expirationofstatutesoflimitations.......................................... (1,720)
Balance at December 25, 2007 ............................................. $2,681
Tax positions related to the current year:
Additions ........................................................... 281
Tax positions related to prior years:
Additions ........................................................... 5,919
Reductions .......................................................... (3,992)
Settlements ............................................................ (486)
Expirationofstatutesoflimitations.......................................... (80)
Balance at December 30, 2008 ............................................. $4,323
Tax positions related to the current year:
Additions ........................................................... 617
Tax positions related to prior years:
Additions ........................................................... 381
Settlements ............................................................ (836)
Expirationofstatutesoflimitations.......................................... (130)
Balance at December 29, 2009 ............................................. $4,355
As of December 29, 2009 and December 30, 2008, the amount of unrecognized tax benefits that, if recognized
in full, would be recorded as a reduction of income tax expense was $3.0 million and $2.9 million, net of federal tax
benefits, respectively. The Company expects approximately $2.9 million of the unrecognized tax benefits prin-
cipally related to state tax filing positions and previously deducted expenses will decrease within twelve months of
December 29, 2009 as a result of the expiration of statutes of limitations and the finalization of audits related to prior
tax years. In certain cases, the Company’s uncertain tax positions are related to tax years that remain subject to
examination by the relevant tax authorities. Tax returns in the Company’s major tax filing jurisdictions for years
after 2005 are subject to future examination by tax authorities. Estimated interest and penalties related to the
underpayment of income taxes are classified as a component of income tax expense in the Consolidated Statements
of Operations and was $0.3 million, $0.3 million and $0.2 million during fiscal 2009, fiscal 2008, and fiscal 2007,
respectively. Accrued interest and penalties were $1.0 million and $0.7 million as of December 29, 2009 and
December 30, 2008, respectively.
71
PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)