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PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
58
class certification of the lawsuit, unspecified damages, costs and expenses, including attorneys’ fees, and such other relief as the
Court might find just and proper. The Company believes its subsidiary has meritorious defenses to each of the claims in the lawsuit
and is prepared to vigorously defend the lawsuit. There can be no assurance, however, that the Company's subsidiary will be
successful, and an adverse resolution of the lawsuit could have a material adverse effect on the Company's consolidated financial
position and results of operations in the period in which the lawsuit is resolved. The Company is not presently able to reasonably
estimate potential losses, if any, related to the lawsuit.
In addition to the legal matter described above, the Company is subject to various legal proceedings, claims, and litigation that
arise in the ordinary course of its business. Defending lawsuits requires significant management attention and financial resources
and the outcome of any litigation, including the matter described above, is inherently uncertain. 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 claims, or one or more successful claims under which the Company incurs greater
liabilities than is currently anticipated, could materially and adversely affect its consolidated financial statements.
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 30,
2014
December 31,
2013
December 25,
2012
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 285,564 $ 317,479 $ 286,702
Canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,270)(4,759)(3,706)
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 277,294 $ 312,720 $ 282,996
The provision for income taxes consisted of the following for the periods indicated (in thousands):
For the fiscal year ended
December 30,
2014
December 31,
2013
December 25,
2012
Current:
U.S. federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 73,234 $ 87,548 $ 72,434
U.S. state and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,306 18,638 15,955
87,540 106,186 88,389
Deferred:
U.S. federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,609 8,547 16,640
U.S. state and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 950 1,804 3,603
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (98) 14 916
$ 10,461 $ 10,365 $ 21,159
Total provision for income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 98,001 $ 116,551 $ 109,548