Einstein Bros 2012 Annual Report Download - page 60

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10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312513085036/d445565d10k.htm[9/11/2014 10:07:50 AM]
Non-vested rights, January 3, 2012
96,180 $ 15.55
Granted 103,227 14.23
Vested (44,590) 15.58
Forfeited (14,032) 14.96
Non-vested rights, January 1, 2013 140,785 $ 14.63 $1,718,985
As of January 1, 2013, the Company had approximately $1.0 million of total unrecognized compensation cost related to RSUs, which will be
recognized over a weighted average period of 1.31 years.
Restricted Stock
On January 9, 2009, the Company’ s Compensation Committee granted 63,776 shares of restricted stock with a value of $375,000 in
connection with Mr. O’ Neill’ s appointment as President and Chief Executive Officer. The Company recognized compensation cost for this award
using a graded vesting attribution method over the requisite service period. Stock-based compensation expense for each of the fiscal years 2010
and 2011 includes $0.1 million related to the vesting of these shares. As of January 9, 2012, all shares were fully vested.
13. SAVINGS PLANS
The Company sponsors a qualified defined contribution retirement plan (the “401(k) Plan”) covering employees, excluding officers, if they
meet certain eligibility requirements. The 401(k) Plan allows participating employees to defer the receipt of a portion of their compensation, on a
pretax basis, and contribute such amount to one or more investment options. Employer contributions are fully vested after three years of service.
The Company did not accrue or pay a discretionary match for each of the fiscal years 2010, 2011 and 2012.
The Company established the Einstein Noah Restaurant Group, Inc. Nonqualified Deferred Compensation Plan (the “DC Plan”) in June 2007
for key employees, generally officers of the Company. The DC Plan allows an eligible employee to defer up to 80% of their base salary and bonus.
In lieu of payments of the deferred amounts to the participant, the payments are to be invested with The Charles Schwab Trust Company under
investment criteria directed by the participant.
74
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
14. INCOME TAXES
The components of the Company’ s income tax provision are as follows:
December 28,
2010
January 3,
2012
January 1,
2013
(in thousands)
Current
Federal $ (491) $— $—
State 685 1,040 235
Total current income tax provision 194 1,040 235
Deferred
Federal 8,162 5,866 10,938
State 1,700 1,033 1,720
Total deferred income tax provision 9,862 6,899 12,658
Change in valuation allowance (138) 19 (4,790)
Total deferred income tax provision 9,724 6,918 7,868
Total income tax provision $ 9,918 $ 7,958 $ 8,103
The Company’ s effective tax rate differs from the statutory tax rates as follows:
December 28,
2010
January 3,
2012
January 1,
2013
U.S. Federal statutory rate 35.0% 35.0% 35.0%
State income tax rate, net of Federal tax benefit 6.6% 6.4% 4.1%
Federal employment tax credits 0.0% (2.2%) (0.7%)
Expiring net operating losses 0.0% 0.0% 23.0%