Einstein Bros 2012 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2012 Einstein Bros annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 73

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73

10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312513085036/d445565d10k.htm[9/11/2014 10:07:50 AM]
As of January 1, 2013, NOL carryforwards of $93.4 million were available to be utilized against future taxable income for years through
fiscal 2031, subject in part to annual limitations. As of January 1, 2013, the
76
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Company’ s NOL carryforwards for U.S. federal income tax purposes that are expected to be utilized are subject to the following expiration
schedule:
Net Operating Loss Carryforwards
Expiration Date Amount
(in thousands)
December 31, 2018 $ 5,470
December 31, 2020 3,874
December 31, 2022 12,121
December 31, 2023 42,362
December 31, 2024 12,003
December 31, 2025 5,413
December 31, 2026 4,900
December 31, 2027 268
December 31, 2028 47
December 31, 2029 6,874
December 31, 2030 62
December 31, 2031 28
$ 93,422
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 $84.1 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 1, 2013, approximately $9.3 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 January 3, 2012 and January 1,
2013:
Unrecognized
excess tax
benefits
(in thousands)
Balance—December 28, 2010 $ 6,949
Additions based on 2011 stock option exercises 298
Balance—January 3, 2012 $ 7,247
Additions based on 2012 stock option exercises 658
Balance—January 1, 2013 $ 7,905
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.
77
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Uncertain tax positions