Buffalo Wild Wings 2015 Annual Report Download - page 27

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27
five years.
We generate cash from the operation of our company-owned restaurants and from franchise royalties and fees. We
highlight the specific costs associated with the on-going operation of our company-owned restaurants in the consolidated
statement of earnings under “Restaurant operating costs.” Our depreciation and amortization expense consists primarily of
depreciation related to assets used by our company-owned restaurants and amortization of reacquired franchise rights.
Preopening costs are those costs associated with opening new company-owned restaurants and will vary annually based on the
number of new locations opening and under construction. Loss on asset disposals and impairment expense is related to
company-owned restaurants and includes the costs associated with normal asset retirements, asset impairment charges, and
closures of locations. General and administrative expenses are related to home office and field support provided to both
company-owned restaurants and franchising operations.
We utilize a 52- or 53-week accounting period that ends on the last Sunday in December. The fiscal year ended
December 25, 2011 was comprised of 52 weeks. The fiscal year ended December 30, 2012 was a 53-week year. Each of the
fiscal years in the three years ended December 27, 2015 were comprised of 52 weeks. Our next 53-week year will occur in
2017.
Critical Accounting Estimates
Our significant accounting policies are described in Note 1 to the Consolidated Financial Statements, which were
prepared in accordance with U.S. GAAP. Critical accounting policies are those that we believe are both important to the
portrayal of our financial condition and results and require our most difficult, subjective or complex judgments, often as a result
of the need to make estimates about the effect of matters that are inherently uncertain.
We believe that the following discussion represents our most critical accounting policies and estimates used in the
preparation of our consolidated financial statements. In addition to these critical accounting estimates, there are other items
used in the preparation of the consolidated financial statements that require estimation, but are not deemed critical. Changes in
estimates used in these and other items could have a material impact on our consolidated financial statements.