Buffalo Wild Wings 2014 Annual Report Download - page 47

46
BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 28, 2014 and December 29, 2013
(Dollar amounts in thousands, except per-share amounts)
(1) Nature of Business and Summary of Significant Accounting Policies
(a) Nature of Business
References in these financial statement footnotes to “company”, “we”, “us”, and “our” refer to the business of Buffalo
Wild Wings, Inc. and our subsidiaries. We operate Buffalo Wild Wings® and Emerging Brands (PizzaRev®, and Rusty Taco®)
restaurants, as well as selling Buffalo Wild Wings and Rusty Taco restaurant franchises. In exchange for the initial and
continuing franchise fees received, we give franchisees the right to use the brand names. We operate as a single segment for
reporting purposes.
At December 28, 2014, December 29, 2013, and December 30, 2012, we operated 491, 434, and 381 company-owned
restaurants, respectively, and had 591, 559, and 510 franchised restaurants, respectively.
(b) Principles of Consolidation
The consolidated financial statements include the accounts of Buffalo Wild Wings, Inc. and its wholly and majority
owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Our franchise and license arrangements provide our franchisee and licensee entities the power to direct the activities that
most significantly impact their economic performance; therefore, we do not consider ourselves to be the primary beneficiary of
any such entity that might be a variable interest entity. The renewal option terms in certain of our operating lease agreements
give us a variable interest in the lessor entity, however we have concluded that we do not have the power to direct the activities
that most significantly impact the lessor entities’ economic performance and as a result do not consider ourselves to be the
primary beneficiary of such entities.
(c) Accounting Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Examples include, but are not limited to, estimates for valuation of long-lived assets and store-
closing reserves, goodwill, self-insurance liability, and stock-based compensation. Actual results could differ from those
estimates.
(d) Fiscal Year
We utilize a 52- or 53-week accounting period that ends on the last Sunday in December. Each of the fiscal years ended
December 28, 2014 and December 29, 2013 were comprised of 52 weeks. The fiscal year ended December 30, 2012 was a 53-
week year. The 53rd week of fiscal 2012 contributed $22,316 in restaurant sales and $1,536 in franchise royalties and fees.
(e) Cash and Cash Equivalents
Cash and cash equivalents include highly liquid investments with original maturities of three months or less.
(f) Marketable Securities
Marketable securities consist of available-for-sale securities and trading securities that are carried at fair value.
Available-for-sale securities are classified as current assets based upon our intent and ability to use any and all of the
securities as necessary to satisfy the operational requirements of our business. Realized gains and losses from the sale of
available-for-sale securities were not material for fiscal 2014, 2013, and 2012. Unrealized losses are charged against net
earnings when a decline in fair value is determined to be other than temporary.