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SEC FILINGS

10-K
BJS RESTAURANTS INC filed this Form 10-K on 02/28/2012
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Table of Contents

IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2011-08, Intangibles—Goodwill and Other (Topic 350)—Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to test goodwill for impairment. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. ASU 2011-08 is effective for fiscal years beginning after December 15, 2011, and earlier adoption is permitted. We have early adopted ASU 2011-08 for the year ended January 3, 2012 and there was no material impact on our consolidated financial statements.

CONTRACTUAL OBLIGATIONS AND COMMITMENTS

The following table summarizes our future estimated cash payments under existing contractual obligations as of January 3, 2012, including estimated cash payments due by period (in thousands).

 

     Payments Due by Period  
     Total      Less Than
1 Year
     2-3
Years
     4-5
Years
     After 5
Years
 

Contractual Obligations:

              

Operating leases (1)

     $348,418         $25,151         $49,910         $47,045         $226,312   

Purchase obligations (2)

     3,004         3,004                           
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     $351,422         $28,155         $49,910         $47,045         $226,312   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other Commercial Commitments:

              

Standby letters of credit

     $8,871         $8,871         $–         $–         $–   

Long-term debt obligations

                                       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     $8,871         $8,871         $–         $–         $–   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) For more detailed description of our operating leases, refer to Note 6 in the accompanying consolidated financial statements.
(2) Amounts represent non-cancelable commitments for the purchase of goods and other services.

Additionally, we have entered into lease agreements related to future restaurants and our home office lease extension with commencement dates subsequent to January 3, 2012. Our aggregate future commitment relating to these leases is $16.4 million and is not included in operating leases above.

 

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The following discussion of market risks contains “forward-looking” statements. Actual results may differ materially from the following discussion based on general conditions in the financial and commodity markets.

Our market risk exposures are related to cash and cash equivalents and marketable securities. We invest our excess cash in highly liquid short-term marketable securities with maturities of two years or less as of the date of purchase. These investments are not held for trading or other speculative purposes. Changes in interest rates affect the investment income we earn on our marketable securities and, therefore, impact our cash flows and results of operations. For the 53 weeks ended January 3, 2012, the average interest rate earned on cash and cash equivalents and marketable securities was approximately 0.6%. As of January 3, 2012, our cash and cash equivalents and marketable securities consisted of money market funds, treasury bills, agency bonds, municipal and bank securities and domestic corporate obligations with a cost or fair value of approximately $53.1 million. Cash may be in excess of FDIC insurance limits. The majority of our marketable securities, both short-term and long-term, are AAA-rated and directly or indirectly guaranteed by the U.S. Government. We believe we are not exposed to significant risk on

 

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