Panera Bread 2013 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2013 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 88

  • 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

PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
59
Legal Proceedings
From time to time, the Company is subject to various legal proceedings, claims, and litigation that arise in the ordinary course of
its business. As of the date of this Annual Report on Form 10-K, the Company is not a party to any litigation, the outcome of
which, if determined adversely to the Company, would individually or in the aggregate be reasonably expected to have a material
adverse effect on the Company's results of operations, cash flows, financial position or brand.
Other
The Company is subject to on-going federal and state income tax audits and sales and use tax audits. The Company does not
believe the ultimate resolution of these actions will have a material adverse effect on its consolidated financial statements. However,
a significant increase in the number of these audits, or one or more audits under which the Company incurs greater liabilities than
is currently anticipated, could materially and adversely affect its consolidated financial statements. The Company believes reserves
for these matters are adequately provided for in its consolidated financial statements.
14. Income Taxes
The components of income (loss) before income taxes, by tax jurisdiction, were as follows for the periods indicated (in thousands):
For the fiscal year ended
December 31,
2013
December 25,
2012
December 27,
2011
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 317,479 $ 286,702 $ 221,906
Canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,759)(3,706)(2,003)
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 312,720 $ 282,996 $ 219,903
The provision for income taxes consisted of the following for the periods indicated (in thousands):
For the fiscal year ended
December 31,
2013
December 25,
2012
December 27,
2011
Current:
U.S. federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,548 $ 72,434 $ 67,466
U.S. state and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,638 15,955 15,705
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (571)
106,186 88,389 82,600
Deferred:
U.S. federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,547 16,640 1,084
U.S. state and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,804 3,603 267
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 916 —
10,365 21,159 1,351
Total provision for income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 116,551 $ 109,548 $ 83,951
A reconciliation of the statutory U.S. federal income tax rate to the effective tax rate is as follows for the periods indicated:
For the fiscal year ended
December 31,
2013
December 25,
2012
December 27,
2011
Statutory U.S. federal rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.0% 35.0% 35.0%
U.S. state and local income taxes, net of federal tax benefit . . . . . . . . . . . . . 4.5 4.5 4.5
Federal tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.8)(0.4)(0.4)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.4)(0.4)(0.9)
Effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.3% 38.7% 38.2%