Buffalo Wild Wings 2006 Annual Report Download - page 27

expenditures from cash provided by operations. We believe the cash flows from our operating activities in 2007 will also be
fficient to fund our capital expenditures for the current year. su
R
ecent Accounting Pronouncements
In July 2006, the Financial Accounting Standards Board (FASB) issued Interpretation No. 48 (“FIN 48”), “Accounting
for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109,” which seeks to reduce the diversity in
practice associated with the accounting and reporting for uncertainty in income tax positions. This Interpretation prescribes a
comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax
positions taken or expected to be taken in income tax returns. FIN 48 is effective for fiscal years beginning after December
15, 2006 and we will adopt the new requirements in the first quarter of 2007. The cumulative effect, if any, of adopting FIN
48 will be recorded as an adjustment to retained earnings as of the beginning of the period of adoption. The adoption of FIN
48 is not expected to have a significant impact on our financial statements.
In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (“SFAS 157”), which defines fair
value, establishes a framework for measuring fair value in GAAP, and expands disclosures above fair value measurements.
SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods
within those fiscal years. Early adoption is permitted. We have not yet determined the effect on our financial statements, if
any, upon adoption of SFAS 157.
In September 2006, the SEC staff issued Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year
Misstatements when Quantifying Misstatements in Current Year Financial Statements” (“SAB 108”). The intent of SAB 108
is to reduce the diversity in practice for the method used to quantify financial statement misstatements, including the effect of
prior year uncorrected errors. SAB 108 establishes an approach that requires quantification of financial statement errors using
both an income statement and a cumulative balance sheet approach. SAB 108 is effective for fiscal years ending after
November 15, 2006, and we adopted the new requirements in fiscal 2006. The adoption of SAB 108 did not have an impact
on our consolidated financial statements.
Q
uarterly Results of Operations
The following table sets forth, by quarter, the unaudited quarterly results of operations for the two most recent years, as
well as the same data expressed as a percentage of our total revenue for the periods presented. Restaurant operating costs are
expressed as a percentage of restaurant sales. The information for each quarter is unaudited and we have prepared it on the
same basis as the audited financial statements appearing elsewhere in this document. In the opinion of management, all
necessary adjustments, consisting only of normal recurring adjustments, have been included to present fairly the unaudited
quarterly results. All amounts, except per share amounts, are expressed in thousands.
Quarterly and annual operating results may fluctuate significantly as a result of a variety of factors, including increases
or decreases in same-store sales, changes in fresh chicken wing prices, the timing and number of new restaurant openings and
their related expenses, asset impairment charges, store closing charges, general economic conditions and seasonal
uctuations. fl
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