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10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312514073832/d629623d10k.htm[9/11/2014 10:05:27 AM]
77
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Employee Wage Settlement
On January 6, 2014, the Company resolved claims regarding administrative compliance with California’ s alternative workweek regulations
and other claims by agreeing to a payment of $0.5 million plus applicable taxes, coupled by a release of any outstanding claims. The Company has
recorded this liability as a component of accrued expenses and other current liabilities on the December 31, 2013 consolidated balance sheet.
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 2011, 2012 and 2013.
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.
14. INCOME TAXES
The components of the Company’ s income tax provision are as follows:
January 3,
2012
January 1,
2013
December 31,
2013
(in thousands)
Current
Federal $— $— $—
State 1,040 235 415
Total current income tax provision 1,040 235 415
Deferred
Federal 5,866 10,938 6,263
State 1,033 1,720 651
Total deferred income tax provision 6,899 12,658 6,914
Change in valuation allowance 19 (4,790) —
Total deferred income tax provision 6,918 7,868 6,914
Total income tax provision $ 7,958 $ 8,103 $ 7,329
78
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The Company’ s effective tax rate differs from the statutory tax rates as follows:
January 3,
2012
January 1,
2013
December 31,
2013
U.S. Federal statutory rate 35.0% 35.0% 35.0%
State income tax rate, net of Federal tax benefit 6.4% 4.1% 3.4%
Federal employment tax credits (2.2%) (0.7%) (2.5%)
Expiring net operating losses 0.0% 23.0% 0.0%