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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)
(8) Supplemental Disclosures of Cash Flow Information
50
Fiscal Years Ended
Decembe 31, r
2006
Decembe 25, r
2005
Decembe 26, r
2004
Cash paid during the period for:
Income taxes $ 8,803 4,801 2,621
Noncash financing and investing transactions:
Property and equipment not yet paid for 1,130 82 608
Tax withholding for restricted stock units 2,267 578 —
Adjustment of restricted stock units to fair value on grant date 2,568 — —
Adjustment of restricted stock units to fair value — 2,451 2,726
Capitalization of preopening rent expense — 463 2,199
(9
) Restaurant Impairment and Closures
In 2006, 2003 and 2002, the Company closed restaurants. As a result, a charge was taken for remaining lease
obligations, broker fees, and utilities. These charges were recognized as a part of restaurant impairment and closures and
were based on remaining lease obligations.
The reconciliation of the store closing reserve for the years ended December 31, 2006, December 25, 2005, and
December 26, 2004 is as follows:
As of
Decembe 25, r
2005
2006
provision
Costs
incurred
As of
Decembe 31, r
2006
Remaining lease obligation and utilities $ — 54 — 54
$ — 54 — 54
As of
Decembe 26, r
2004
2005
provision
Costs
incurred
As of
Decembe 25, r
2005
Remaining lease obligation and utilities $ 136 — (136) —
$ 136 — (136) —
As of
Decembe 28, r
2003
2004
provision
Costs
incurred
As of
Decembe 26, r
2004
Remaining lease obligation and utilities $ 211 1 (76) 136
Broker fees 11 (11) — —
$ 222 (10) (76) 136
During 2006, the Company recorded an impairment charge for the assets of one underperforming restaurant. An
impairment charge of $481 was recorded to the extent that the carrying amount of the assets was not considered recoverable
based on estimated discounted future cash flows and the underlying fair value of the assets.
During 2005, the Company recorded an impairment charge for the assets of four underperforming restaurants. An
impairment charge of $1,268 was recorded to the extent that the carrying amount of the assets was not considered recoverable
based on estimated discounted future cash flows and the underlying fair value of the assets.