Chipotle 2009 Annual Report Download - page 48

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adjusted leverage ratio. Availability of borrowings under the facility is conditioned on the Company’s
compliance with specified covenants including a maximum lease-adjusted leverage ratio and a minimum fixed
charge coverage ratio. As of December 31, 2009, the Company was in compliance with these covenants. The
facility expires in February 2014, but can be terminated or decreased at the Company’s option prior to expiration.
The Company intends to use the credit facility, if at all, for letters of credit issued in the normal course of
business and normal short-term working capital needs. As of December 31, 2009, there were no loans
outstanding and available borrowings were $19,700.
4. Income Taxes
The components of the provision (benefit) for income taxes are as follows:
Years ended December 31
2009 2008 2007
Current tax:
U.S. Federal ................................................... $56,945 $29,291 $38,916
U.S. State ..................................................... 12,151 6,512 7,547
Foreign ....................................................... (139) (53) —
68,957 35,750 46,463
Deferred tax:
U.S. Federal ................................................... 9,677 12,513 (3,273)
U.S. State ..................................................... (1,393) 688 (272)
Foreign ....................................................... (2) (36) —
8,282 13,165 (3,545)
Valuation allowance ................................................. 141 89 521
Total provision for income taxes ....................................... $77,380 $49,004 $43,439
The effective tax rate differs from the statutory tax rates as follows:
Years ended December 31
2009 2008 2007
Statutory U.S. federal income tax rate ...................................... 35.0% 35.0% 35.0%
State income tax, net of related federal income tax benefit ..................... 3.4 3.7 4.2
Other ............................................................... (0.5) (0.2) (1.1)
Effective income tax rates ............................................... 37.9% 38.5% 38.1%
46
Annual Report