Panera Bread 2010 Annual Report Download - page 77

Download and view the complete annual report

Please find page 77 of the 2010 Panera Bread annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 98

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98

Other
The Company is subject to on-going federal and state income tax audits and sales tax audits and any
unfavorable rulings could materially and adversely affect its consolidated financial condition or results of
operations. The Company believes reserves for these matters are adequately provided for in its consolidated
financial statements.
14. Income Taxes
The components of income before income taxes, by tax jurisdiction, were as follows for the periods indicated
(in thousands):
December 28,
2010
December 29,
2009
December 30,
2008
For the Fiscal Year Ended
UnitedStates................................. $180,458 $139,005 $110,220
Canada ..................................... (296) 919 (3)
Income before income taxes...................... $180,162 $139,924 $110,217
The provision for income taxes consisted of the following for the periods indicated (in thousands):
December 28,
2010
December 29,
2009
December 30,
2008(1)
For the Fiscal Year Ended
Current:
Federal ................................... $64,471 $24,428 $37,188
State..................................... 8,919 5,390 8,192
Foreign ................................... (167) 304 —
73,223 30,122 45,380
Deferred:
Federal ................................... (4,306) 20,006 (3,589)
State..................................... (354) 2,945 (519)
Foreign ................................... — — —
(4,660) 22,951 (4,108)
Tax Provision ................................ $68,563 $53,073 $41,272
(1) The Company developed its first bakery-cafes in Canada in fiscal 2008. Fiscal 2008 current and deferred
income taxes consisted primarily of U.S. taxes. Canadian taxes were nominal, and thus were not shown
separately.
A reconciliation of the statutory federal income tax rate to the effective tax rate is as follows for the periods
indicated:
December 28,
2010
December 29,
2009
December 30,
2008
For the Fiscal Year Ended
Statutory rate provision ................... 35.0% 35.0% 35.0%
State income taxes ....................... 5.0 4.7 4.4
Other................................. (1.9) (1.8) (2.0)
38.1% 37.9% 37.4%
70
PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)