Einstein Bros 2007 Annual Report Download - page 77

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http://www.sec.gov/Archives/edgar/data/949373/000104746908002111/a2183061z10-k.htm[9/11/2014 10:12:02 AM]
Total income tax provision $ — $ — $ 454
91
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
17. INCOME TAXES (Continued)
A reconciliation between the reported provision for income taxes and the amount computed by applying the statutory federal income tax rate
of 35% to loss before income taxes is as follows:
2005
2006
2007
Expected tax provision (benefit) at 35% $ (4,906) $ (2,403) $ 4,565
State tax provision (benefit), net of federal provision (benefit) (390) (216) 1,157
Other, net 705 74 421
Deferred taxes related to change in tax accounting method — — 2,421
Expired tax carryforwards — — 1,132
Effect of change in tax rate — — (3,153)
Change in valuation allowance 4,591 2,545 (6,089)
Total provision for taxes $ — $ — $ 454
The income tax effects of temporary differences that give rise to significant portions of deferred tax assets as of January 3, 2006, January 2,
2007 and January 1, 2008 are as follows:
2005
2006
2007
Deferred tax assets
Operating loss carryforwards $ 59,958 $ 59,990 $ 59,228
Capital loss carryforwards 1,237 1,237 —
Accrued expenses 1,317 2,003 493
§481(a) tax accounting method change — — (1,733)
Allowances for doubtful accounts 183 193 513
Other assets 58 — (209)
Property, plant and equipment 15,852 17,727 16,517
Alternative minimum tax — — 252
Total gross deferred tax asset 78,605 81,150 75,061
Less valuation allowance (78,605) (81,150) (75,061)
Total deferred tax asset $ — $ — $ —
92
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
18. SUPPLEMENTAL CASH FLOW INFORMATION