Buffalo Wild Wings 2006 Annual Report Download - page 46

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BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2006 and December 25, 2005
(Dollar amounts in thousands, except per-share amounts)
A reconciliation of the expected federal income taxes (benefits) at the statutory rate of 35% with the provision for
come taxes is as follows: in
Fiscal Years Ended
Decembe 31, r
2006
Decembe 25, r
2005
Decembe 26, r
2004
Expected federal income tax expense $ 8,343 5,012 3,847
State income tax expense, net of federal effect 305 862 823
Nondeductible expenses 115 80 67
Tax exempt income (602) (350) (115)
General business credits (772) (528) (325)
Statutory rate changes, deferred tax impact — 148 —
Other 176 215 (182)
$ 7,565 5,439 4,115
Deferred tax assets and liabilities are classified as current and noncurrent on the basis of the classification of the related
asset or liability for financial reporting. Deferred income taxes are provided for temporary differences between the basis of
assets and liabilities for financial reporting purposes and income tax purposes. Temporary differences comprising the net
deferred tax assets and liabilities on the balance sheets are as follows:
Fiscal Years Ended
Decembe 31, r
2006
Decembe 25, r
2005
Deferred tax assets:
Unearned franchise fees $ 892 834
Accrued vacation 197 149
Accrued compensation 470 335
Deferred lease credits 1,029 896
Other 611 214
$ 3,199 2,428
Deferred tax liability:
Depreciation $ 4,956 6,185
Prepaid expense — 228
Total $ 4,956 6,413
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