Buffalo Wild Wings 2011 Annual Report Download - page 30

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Net cash provided by operating activities in 2009 consisted primarily of net earnings adjusted for non-cash expenses
and an increase in accrued expenses partially offset by an increase in accounts receivable and trading securities. The increase
in accrued expenses was primarily due to increased payroll related costs including wages, incentive compensation, and
deferred compensation costs. The increase in accounts receivable was primarily due to the timing of payments received
related to credit cards and royalties which was affected by the Christmas holiday. The increase in trading securities was due
to additional contributions to our deferred compensation plan.
Net cash used in investing activities for 2011, 2010, and 2009, was $146.7 million, $85.2 million, and $79.2 million,
respectively. Investing activities included acquisitions of property and equipment related to the opening of new company-
owned restaurants and restaurants under construction in all periods. In 2011, we opened 50 new restaurants and purchased 18
franchised restaurants. In 2010 we opened 35 new restaurants. In 2009 we opened 36 new restaurants. In 2012, we expect
capital expenditures of approximately $121.6 million for the cost of 60 new or relocated company-owned restaurants, $10.0
million for technology improvements on our restaurant and corporate systems, and $20.0 million for capital expenditures at
existing restaurants. In 2011, we purchased $97.1 million of marketable securities and received proceeds of $114.3 million as
marketable securities matured or were sold. In 2010, we purchased $99.2 million of marketable securities and received
proceeds of $87.3 million as investments in marketable securities matured or were sold. In 2009, we purchased $57.0 million
of marketable securities and received proceeds of $51.6 million as investments in marketable securities matured or were sold.
Net cash provided by financing activities for 2011, 2010, and 2009, was $3.7 million, $1.3 million, and $1.1 million,
respectively. Net cash provided by financing activities for 2011 resulted primarily from the issuance of common stock for
options exercised and employee stock purchases of $1.7 million and excess tax benefits for stock issuance of $4.5 million
partially offset by tax payments for restricted stock units issuances of $2.5 million. Net cash provided by financing activities
for 2010 resulted primarily from the issuance of common stock for options exercised and employee stock purchases of $1.4
million and excess tax benefits for restricted stock unit issuances of $1.5 million partially offset by tax payments for
restricted stock units of $1.6 million. Net cash provided by financing activities for 2009 resulted primarily from the issuance
of common stock for options exercised and employee stock purchases of $1.2 million and excess tax benefits for restricted
stock unit issuances of $1.5 million partially offset by tax payments for restricted stock units of $1.5 million. No additional
funding from the issuance of common stock (other than from the exercise of options and employee stock purchases) is
anticipated in 2012.
Our liquidity is impacted by minimum cash payment commitments resulting from operating lease obligations for our
restaurants and our corporate offices. Lease terms are generally 10 to 15 years with renewal options and generally require us
to pay a proportionate share of real estate taxes, insurance, common area maintenance and other operating costs. Some
restaurant leases provide for contingent rental payments based on sales thresholds. We own the buildings in which 64 of our
restaurants operate and therefore have the limited ability to enter into sale-leaseback transactions as a potential source of
cash.
The following table presents a summary of our contractual operating lease obligations and commitments as of
December 25, 2011:
Payments Due By Period
(in thousands)
Total
Less than
one year 1-3 years 3-5 years
After 5
years
Operating lease obligations $ 362,088 39,856 76,636 71,149 174,447
Commitments for restaurants under
development
60,964 2,457 7,398 7,407 43,702
Total $ 423,052 42,313 84,034 78,556 218,149
We believe the cash flows from our operating activities and our balance of cash and marketable securities will be
sufficient to fund our operations and building commitments and meet our obligations in the foreseeable future. Our future
cash outflows related to income tax uncertainties amount to $733,000 as of December 25, 2011. These amounts are excluded
from the contractual obligations table due to the high degree of uncertainty regarding the timing of these liabilities.
Recent Accounting Pronouncements
In June 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2011-
05 “Presentation of Comprehensive Income.” ASU 2011-05 amends ASC 220 Comprehensive Income to improve the
comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other
comprehensive income. The guidance requires entities to report the components of comprehensive income in either a single,