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SEC Filings

10-K
CHIPOTLE MEXICAN GRILL INC filed this Form 10-K on 02/08/2018
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The following is a summary of unrealized gains (losses) on available-for-sale securities recorded in other comprehensive income (loss) in the consolidated statement of comprehensive income:



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Year ended December 31,



2017

 

2016

 

2015

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

$

(274)

 

$

2,251 

 

$

(2,468)

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

$

(186)

 

$

1,402 

 

$

(1,522)



Realized gains and losses on available-for-sale securities are recorded in interest and other income on the consolidated statement of income. We had no realized gains or losses for the years ended December 31, 2017 and 2015, and $547 of realized gains on available-for-sale securities for the year ended December 31, 2016. During the year ended December 31, 2015, we recorded an other-than-temporary impairment charge of $244 in interest and other income in the consolidated statement of income in connection with a decline in the fair market value of certain available-for-sale securities.

We have elected to fund certain deferred compensation obligations through a rabbi trust, the assets of which are designated as trading securities, as described further in Note 7. “Employee Benefit Plans.”

4. Income Taxes

The components of the provision for income taxes are as follows:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Year ended December 31,



2017

 

2016

 

2015

Current tax:

 

 

 

 

 

 

 

 

U.S. Federal

$

98,208 

 

$

20,765 

 

$

244,470 

U.S. State

 

18,639 

 

 

8,687 

 

 

37,957 

Foreign

 

669 

 

 

556 

 

 

172 



 

117,516 

 

 

30,008 

 

 

282,599 

Deferred tax:

 

 

 

 

 

 

 

 

U.S. Federal

 

(16,201)

 

 

(11,596)

 

 

11,000 

U.S. State

 

(1,559)

 

 

(2,546)

 

 

699 

Foreign

 

(496)

 

 

(2,470)

 

 

(2,288)



 

(18,256)

 

 

(16,612)

 

 

9,411 

Valuation allowance

 

230 

 

 

2,405 

 

 

2,255 

Provision for income taxes

$

99,490 

 

$

15,801 

 

$

294,265 

On December 22, 2017, the Tax Cuts and Jobs Act, (the “TCJA”) was enacted.  The TCJA includes a number of changes to existing U.S. tax laws that impact the Company, most notably a reduction of the U.S. corporate tax rate from 35% to 21%,  for tax years beginning after December 31, 2017.  We recorded a benefit of $6,047 ($0.21 per basic and diluted earnings per share) in deferred income tax expense for the remeasurement of our net deferred tax liability at the 21% tax rate.  The TCJA also provides for acceleration of depreciation for certain assets placed into service after September 27, 2017, as well as prospective changes beginning in 2018, including additional limitations on deductibility of executive compensation and employee meal benefits.

The $6,047 benefit represents what we believe is the impact of the TCJA.  As the benefit is based on currently available information and interpretations, which are continuing to evolve, the benefit should be considered provisional.  We will continue to analyze additional information and guidance related to the TCJA as supplemental legislation, regulatory guidance, or evolving technical interpretations become available.  The final impacts may differ from the recorded amounts as of December 31, 2017, and we will continue to refine such amounts within the measurement period provided by Staff Accounting Bulletin No. 118.  We expect to complete our analysis no later than the fourth quarter of 2018.

Actual taxes paid for 2016 and 2015 were less than the current tax expense due to the excess tax benefit on stock-based compensation of $1,320 and $74,442 during the years ended December 31, 2016 and 2015, respectively.

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