Einstein Bros 2011 Annual Report Download - page 63

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Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312512092597/d260635d10k.htm[9/11/2014 10:08:30 AM]
December 31, 2029
5,946
December 31, 2030 62
$103,317
The Company’ s ability to utilize its NOL carryforwards could be further limited if it experiences an “ownership change” as defined by IRC
§382. The occurrence of this type of ownership change would limit the Company’ s ability to utilize approximately $92.4 million of its NOL
carryforwards that are not currently subject to limitation, and could further limit the Company’ s ability to utilize its remaining NOL carryforwards
and possibly other tax attributes. As of January 3, 2012, approximately $10.9 million of the Company’ s NOL carryforwards are subject to
limitation.
Excess tax benefits related to stock option exercises have not been recorded due to the Company’ s NOL carryforward position. The
following represents a reconciliation of the Company’ s unrecognized excess tax benefits for the fiscal years ended December 28, 2010 and
January 3, 2012:
Unrecognized
excess tax
benefits
(in thousands)
Balance—December 29, 2009 $ 6,230
Additions based on 2010 stock option exercises 719
Balance—December 28, 2010 $ 6,949
Additions based on 2011 stock option exercises 298
Balance—January 3, 2012 $ 7,247
These excess tax benefits are not included in the Company’ s deferred tax assets due to limitations regarding their recognition. If these excess
tax benefits are recognized in the future, the Company’ s effective tax rate will not be impacted.
78
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Uncertain tax positions
The following table summarizes the activity related to the Company’ s uncertain tax positions:
December 29,
2009
December 28,
2010
January 3,
2012
(in thousands)
Balance, beginning of fiscal year $ 1,115 $ 826 $ 1,147
Increase related to prior period positions — — 516
Increase related to current year positions — 455 35
Decrease related to prior period positions (289) (134) (692)
Decrease related to change in prior year estimate — — —
Balance, end of fiscal year $ 826 $ 1,147 $ 1,006
The recorded amounts, if recognized, will have no impact on the effective tax rate due to the existence of NOL carryforwards.
The Company is subject to income taxes in the U.S. federal jurisdiction, and the various state and local jurisdictions in which it operates. Tax
regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to
apply. The Company’ s federal tax filings remain subject to examination for fiscal tax years 2008 through 2010. The IRS has notified the Company
that its 2009 federal tax return has been selected for examination. The Company’ s state and local tax filings remain subject to examination for
fiscal tax years 2007 through 2010. Although years prior to fiscal 2007 are no longer subject to examination, the taxing authorities reserve the right
to adjust the Company’ s NOL carryforwards.
15. SUPPLEMENTAL CASH FLOW INFORMATION
Fiscal year ended
December 29,
2009
December 28,
2010
January 3,
2012
(in thousands)