Chipotle 2009 Annual Report Download - page 55

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Letters of Credit
As of December 31, 2009 a $5,300 letter of credit was issued and expires in February 2010.
Litigation
A lawsuit has been filed against the Company in California alleging violations of state laws regarding
employee record-keeping, meal and rest breaks, payment of overtime and related practices with respect to its
employees. The case originally sought damages, penalties and attorney’s fees on behalf of a purported class of
the Company’s present and former employees. The court denied the plaintiff’s motion to certify the purported
class, and as a result the action can proceed, if at all, as an action by a single plaintiff. The plaintiff has appealed
the court’s denial of class certification, and the appeal remains pending. Although the Company has various
defenses, it is not possible at this time to reasonably estimate the outcome of or any potential liability from this
case.
In the normal course of business, the Company is subject to other proceedings, lawsuits and claims. Such
matters are subject to many uncertainties, and outcomes are not predictable with assurance. Consequently, the
Company is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with
respect to these matters as of December 31, 2009. These matters could affect the operating results of any one
quarter when resolved in future periods. Management does not believe that any monetary liability or financial
impact to the Company as a result of these proceedings or claims will be material to the Company’s annual
consolidated financial statements. However, a significant increase in the number of these claims, or one or more
successful claims resulting in greater liabilities than the Company currently anticipates, could materially and
adversely affect the Company’s business, financial condition, results of operation or cash flows.
12. Quarterly Financial Data (Unaudited)
Summarized unaudited quarterly financial data:
2009
March 31 June 30 September 30 December 31
Revenue .......................................... $354,456 $388,836 $387,581 $387,544
Operating income ................................... $ 41,189 $ 57,322 $ 54,809 $ 50,385
Net income ........................................ $ 25,392 $ 35,393 $ 34,464 $ 31,596
Basic earnings per share .............................. $ 0.79 $ 1.11 $ 1.09 $ 1.00
Diluted earnings per share ............................ $ 0.78 $ 1.10 $ 1.08 $ 0.99
2008
March 31 June 30 September 30 December 31
Revenue .......................................... $305,327 $340,754 $340,543 $345,344
Operating income ................................... $ 26,793 $ 38,314 $ 31,058 $ 27,874
Net income ........................................ $ 17,284 $ 24,468 $ 19,477 $ 16,973
Basic earnings per share .............................. $ 0.53 $ 0.74 $ 0.59 $ 0.52
Diluted earnings per share ............................ $ 0.52 $ 0.74 $ 0.59 $ 0.52
53
Annual Report