Chili's 2013 Annual Report Download - page 64

12. SAVINGS PLANS
We sponsor a qualified defined contribution retirement plan covering all employees who have attained the
age of twenty-one and have completed one year and 1,000 hours of service. Eligible employees are allowed to
contribute, subject to IRS limitations on total annual contributions, up to 50% of their base compensation and
100% of their eligible bonuses, as defined in the plan, to various investment funds. We match in cash at a rate of
100% of the first 3% an employee contributes and 50% of the next 2% the employee contributes with immediate
vesting. In fiscal 2013, 2012, and 2011, we contributed approximately $7.2 million, $6.7 million, and $6.3
million, respectively.
We also sponsor a non-qualified defined contribution plan covering a select group of highly compensated
employees, as defined in the plan. Eligible employees are allowed to defer receipt of up to 50% of their base
compensation and bonus, as defined in the plan. There is no company match, but employee contributions earn
interest based on a rate determined and announced in November prior to the start of the plan year. Employee
contributions and earnings thereon vest immediately. A Rabbi Trust is used to fund obligations of the non-
qualified plan. The market value of the trust assets is included in other assets and the liability to plan participants
is included in other liabilities.
13. SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest and income taxes is as follows (in thousands):
2013 2012 2011
Income taxes, net of refunds ......................... $60,291 $47,514 $38,340
Interest, net of amounts capitalized(a) ................. 41,504 24,455 25,810
(a) Interest includes $15.3 million of interest paid upon retirement of our 5.75% notes in June
2013.
Non-cash investing activities are as follows (in thousands):
2013 2012 2011
Retirement of fully depreciated assets .................. $55,427 $77,249 $60,175
14. COMMITMENTS AND CONTINGENCIES
In connection with the sale of restaurants to franchisees and brand divestitures, we have, in certain cases,
guaranteed lease payments. As of June 26, 2013 and June 27, 2012, we have outstanding lease guarantees or are
secondarily liable for $132.6 million and $142.6 million, respectively. This amount represents the maximum
potential liability of future payments under the guarantees. These leases have been assigned to the buyers and
expire at the end of the respective lease terms, which range from fiscal 2014 through fiscal 2024. In the event of
default, the indemnity and default clauses in our assignment agreements govern our ability to pursue and recover
damages incurred. No material liabilities have been recorded as of June 26, 2013, as the likelihood of default by
the buyers on the assignment agreements was deemed to be less than probable.
We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of
June 26, 2013, we had $22.4 million in undrawn standby letters of credit outstanding. All standby letters of credit
are renewable annually.
In August 2004, certain current and former hourly restaurant team members filed a putative class action
lawsuit against us in California Superior Court alleging violations of California labor laws with respect to meal
periods and rest breaks. The lawsuit sought penalties and attorney’s fees and was certified as a class action by the
trial court in July 2006. In July 2008, the California Court of Appeal decertified the class action on all claims
with prejudice. In October 2008, the California Supreme Court granted a writ to review the decision of the Court
of Appeal and oral arguments were heard by the California Supreme Court on November 8, 2011. On April 12,
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