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SEC Filings

10-Q
CHIPOTLE MEXICAN GRILL INC filed this Form 10-Q on 07/26/2017
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The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented in the consolidated statement of cash flows, since such cash flows have historically been presented in financing activities. The Company also elected to continue estimating forfeitures when determining the amount of stock-based compensation costs to be recognized in each period. No other provisions of ASU 2016-09 had a material impact on the Company’s financial statements or disclosures.

3. Fair Value of Financial Instruments

The carrying value of our cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of their short-term nature. Investments are carried at fair market value and are classified as available-for-sale.  Investments consist of U.S. treasury notes with maturities up to approximately 9 months.  Fair value of investments is measured using Level 1 inputs (quoted prices for identical assets in active markets).

The following is a summary of available-for-sale securities:



 

 

 

 

 



 

 



June 30,

 

December 31,



2017

 

2016

Amortized cost

$

395,055 

 

$

455,109 

Unrealized gains (losses)

 

(589)

 

 

(218)

Fair market value

$

394,466 

 

$

454,891 

The following is a summary of unrealized gains (losses) on available-for-sale securities recorded in other comprehensive income (loss) in the condensed consolidated statement of operations and comprehensive income:





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three months ended June 30,

 

Six months ended June 30,



2017

 

2016

 

2017

 

2016

Unrealized gains (losses) on available-for-sale securities

$

(95)

 

$

857 

 

$

(371)

 

$

3,933 

Unrealized gains (losses) on available-for-sale securities, net of tax

$

(58)

 

$

509 

 

$

(240)

 

$

2,402 

Realized gains and losses on available-for-sale securities are recorded in interest and other income, net on the condensed consolidated statement of operations and comprehensive income. We had no realized gains or losses for the three and six months ended June 30, 2017 and we had $0 and $547 of realized gains on available-for-sale securities for the three and six months ended June 30, 2016.



We also maintain a rabbi trust to fund obligations under a deferred compensation plan. Amounts in the rabbi trust are invested in mutual funds, which are designated as trading securities and carried at fair value, and are included in other assets in the condensed consolidated balance sheet. Fair market value of mutual funds is measured using Level 1 inputs. The fair value of the investments in the rabbi trust was $18,516 and $17,843 as of June 30, 2017 and December 31, 2016, respectively. We record trading gains and losses in general and administrative expenses in the condensed consolidated statement of operations and comprehensive income, along with the offsetting amount related to the increase or decrease in deferred compensation to reflect our exposure to liabilities for payment under the deferred plan. 

The following table sets forth unrealized gains (losses) on trading securities held in the rabbi trust:









 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Three months ended June 30,

 

Six months ended June 30,



2017

 

2016

 

2017

 

2016

Unrealized gains (losses) on trading securities held in rabbi trust

$

359 

 

$

183 

 

$

822 

 

$

286 













4. Shareholders’ Equity

On May 23, 2017, we announced that our Board of Directors authorized the expenditure of up to an additional $100,000 to repurchase shares of common stock, bringing the aggregate authorized expenditures for stock repurchases up to $2.3 billion.  Under the remaining repurchase authorizations, shares may be purchased from time to time in open market transactions, subject to market conditions.

During the six months ended June 30, 2017,  we repurchased 244 shares of common stock under authorized programs, for a total cost of $104,648. The cumulative shares repurchased under authorized programs as of June 30, 2017, were 7,107 for a total cost of $2,102,457. As of June 30, 2017, $197,927 was available to repurchase shares under the announced repurchase authorizations. Shares repurchased are being held in treasury stock until such time as they are reissued or retired at the discretion of the Board of Directors.

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