Cracker Barrel 2004 Annual Report Download - page 50

CBRL GROUP, INC.
Consolidated Balance Sheet
(In thousands)
July 30,
2004
July 30,
2004
August 1,
2003
August 1,
2003
(As Previously
Reported)
Lease
Adjustment (As Restated)
(As Previously
Reported)
Lease
Adjustment (As Restated)
ASSETS
Total current assets $ 203,040 $ -- $ 203,040 $ 176,059 $ -- $ 176,059
Net property and equipment 1,118,573 -- 1,118,573 1,040,315 -- 1,040,315
Total other assets 113,249 842 114,091 109,949 842 110,791
Total assets $1,434,862 $ 842 $1,435,704 $1,326,323 $ 842 $1,327,165
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Total current liabilities $ 246,782 $(4,547) $ 242,235 $ 246,714 $(3,775) $ 242,939
Long-term debt 185,138 -- 185,138 186,730 -- 186,730
Other long-term obligations 122,695 12,300 134,995 97,983 10,151 108,134
Total shareholders’ equity 880,247 (6,911) 873,336 794,896 (5,534) 789,362
Total liabilities and
shareholders’ equity $1,434,862 $ 842 $1,435,704 $1,326,323 $ 842 $1,327,165
Certain amounts and disclosures in Notes 3, 8, 10 and 13 have been restated to reflect the restatement
adjustments described above. The restatement adjustments did not affect net cash provided by or used in operating,
investing or financing activities.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GAAP – The accompanying Consolidated Financial Statements have been prepared in accordance with
generally accepted accounting principles in the United States (“GAAP”).
Fiscal year – The Company's fiscal year ends on the Friday nearest July 31st and each quarter consists of
thirteen weeks unless noted otherwise. References in these Notes to a year or quarter are to the Company’s fiscal
year or quarter unless noted otherwise.
Principles of consolidation – The Consolidated Financial Statements include the accounts of the Company and
its subsidiaries, all of which are wholly owned. All significant intercompany transactions and balances have been
eliminated.
Financial instruments – The fair values of cash and cash equivalents, accounts receivable, and accounts
payable as of July 30, 2004, approximate their carrying amounts due to their short duration. The carrying value and
fair value of the Company’s zero-coupon contingently convertible senior notes (the “Notes”) in long-term debt at July
30, 2004 were $185,138 and $194,671, respectively. The fair value of the Notes in long-term debt is determined
based on market prices using the average of the bid and ask prices as of July 30, 2004.
Cash and cash equivalents – The Company's policy is to consider all highly liquid investments purchased with
an original maturity of three months or less to be cash equivalents.
Inventories – Inventories are stated at the lower of cost or market. Cost of restaurant inventory is determined
by the first-in, first-out (FIFO) method. Approximately 70% of retail inventories are valued using the retail inventory
method and the remaining 30% are valued using an average cost method. Valuation provisions are included for retail
inventory obsolescence, returns and amortization of certain items.
Start-up costs – Start-up costs of a new store are expensed when incurred.
Property and equipment – Property and equipment are stated at cost. For financial reporting purposes,
depreciation and amortization on these assets are computed by use of the straight-line and double-declining balance
methods over the estimated useful lives of the respective assets, as follows:
Years
Buildings and improvements 30-45
Buildings under capital leases 15-25
Restaurant and other equipment 3-10
Leasehold improvements 1-35
Depreciation expense was $62,304, $62,552 and $61,883 for 2004, 2003 and 2002, respectively. Accelerated
depreciation methods are generally used for income tax purposes.
Capitalized interest was $615, $463 and $364 for 2004, 2003 and 2002, respectively.
Gain or loss is recognized upon disposal of property and equipment, and the asset and related accumulated
depreciation and amortization amounts are removed from the accounts.
Maintenance and repairs, including the replacement of minor items, are charged to expense, and major
additions to property and equipment are capitalized.
Impairment of long-lived assets – The Company evaluates for possible impairment of long-lived assets and
certain identifiable intangibles to be held and used in the business whenever events or changes in circumstances