Cracker Barrel 2015 Annual Report Download - page 14

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2013 to 2014
(Decrease) Increase as a
Percentage of Total Revenue
Freight (0.4%)
Higher initialmarkup on merchandise (0.2%)
Retail inventory shrinkage(0.1%)
Obsolescence inventory reserve(0.1%)
Markdowns0.4%
Labor andRelated Expenses
Labor and other relatedexpenses include all directand indirect
labor and relatedcosts incurredin store operations. e
following table highlights labor and other relatedexpenses as a
percentage of total revenue for the past three years:
2015 2014 2013
Labor and other relatedexpenses 34.9% 36.0% 36.5%
e year-to-year percentage changefrom 2014 to 2015
resulted primarily from the following:
2014 to 2015
(Decrease) Increase as a
Percentage of Total Revenue
Store hourly labor (0.6%)
Employee health care expenses (0.3%)
Store management compensation (0.3%)
Payroll taxes(0.2%)
Store bonus expense 0.4%
e decrease in store hourly labor costs as a percentage of
total revenue from 2014 to 2015 resulted from menu price
increases being greater than wage ination and improved
productivity driven by the successful implementation of labor
savings initiativesin 2015.
e decrease in our employeehealth care expenses as
compared to the prior year resulted primarily from a reduction
in premiums associated with our transition of a majority of
our plans from fully insured to self-insuredfor the planyear
ending December 31, 2015 and lower planenrollment.
e decrease in store management compensation expense
as a percentage of total revenue in 2015 as compared to 2014
resulted primarily from lower stang levelsin 2015 as
compared to 2014.
e decrease in payrolltax expense as a percentage of
total revenue in 2015 as compared to 2014 resulted primarily
from a reduction in state unemployment taxrates.
Higherstore bonus expensein 2015 as comparedto 2014
reected beer performance againstnancial objectives in
2015 as compared to the prior year.
e year-to-year percentage changefrom 2013 to 2014
resulted from the following:
2013 to 2014
(Decrease) as a Percentage
of Total Revenue
Store bonus expense (0.3%)
Employee health care expenses (0.1%)
Store hourly labor (0.1%)
Lower store bonus expense in 2014 as compared to 2013
reected lower performance againstnancial objectives in
2014 as compared to the prior year.
e decrease in our employeehealth care expenses as
compared to the prior yearwas primarily the result of the
reimbursement of approximately$4,700 for certain health
care premiums related to the plan year ended December 31,
2013, partially oset by higher enrollment and higher net
premium costs related to the plan year ended December 31,
2014. During 2014, we recorded a receivableof $6,200 for
reimbursement of certain health care premiums related to the
planyear ended December31, 2014, of which $3,600
reduced employeehealth care expenses in 2014.
e decrease in store hourly labor costs as a percentage
of total revenue from 2013 to 2014 resulted from menu price
increases being higher than wage ination and improved
productivity.
Other Store Operating Expenses
Otherstore operating expenses include all store-level
operating costs, the majorcomponentsof which are utilities,
operating supplies,repairs andmaintenance, depreciation and
amortization, advertising,rent,creditcard fees, real and
personal propertytaxes, general insurance and costs associated
with our store managerconference.e following table
highlights other store operating expensesas a percentage of
total revenue for the past three years:
2015 2014 2013
Other store operating expenses 18.4% 18.9% 18.2%
12