Einstein Bros 2007 Annual Report Download - page 76

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http://www.sec.gov/Archives/edgar/data/949373/000104746908002111/a2183061z10-k.htm[9/11/2014 10:12:02 AM]
The amount of the deferred tax asset considered realizable, however, could be reduced if estimates of future taxable income during the
carryforward periods are reduced. As of January 1, 2008, our net
90
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
17. INCOME TAXES (Continued)
operating loss carryforwards for U.S. federal income tax purposes were $148.8 million, and were subject to the following expiration schedule (in
thousands of dollars):
Net Operating Loss
Carryforwards
Expiration Date
$ 6,058 12/31/2012
14,553 12/31/2018
6,862 12/31/2019
10,424 12/31/2020
10,515 12/31/2021
35,688 12/31/2022
42,362 12/31/2023
12,003 12/31/2024
5,413 12/31/2025
4,900 12/31/2026
$ 148,778
Our ability to utilize our net operating losses, could be limited or further limited if we have undergone an "ownership change" as that term is
defined for purposes of Section 382 of the Internal Revenue Code. We are in the process of filing a request with the Internal Revenue Service to
review our methodology for determining ownership changes in accordance with Internal Revenue Code Section 382. Upon acceptance of our
request, we believe that our NOLs will be available for utilization. In the event that our request is not accepted, approximately $17.9 million of
NOLs will be at risk to expire prior to utilization.
The provision for income taxes consists of the following:
2005
2006
2007
Current
Federal $ — $ — $ 232
State — — 222
Total current income tax benefit — — 454
Deferred
Federal (4,201) (2,329) 4,957
State (390) (216) 1,132
Total deferred income tax benefit (4,591) (2,545) 6,089
Change in valuation allowance 4,591 2,545 (6,089)