Cracker Barrel 2004 Annual Report Download - page 57

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8. INCOME TAXES
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Significant components of the Company's net deferred tax liability consisted of the following at:
July 30,
2004
August 1,
2003
Deferred tax assets:
Financial accruals without economic performance $24,818 $20,252
Other 3,637 8,284
Deferred tax assets 28,455 28,536
Deferred tax liabilities
Excess tax depreciation over book 89,627 72,846
Other 23,324 25,802
Deferred tax liabilities 112,951 98,648
Net deferred tax liability $ 84,496 $70,112
The Company provided no valuation allowance against deferred tax assets recorded as of July 30, 2004 and
August 1, 2003, as the "more-likely-than-not" valuation method determined all deferred assets to be fully realizable in
future taxable periods.
The components of the provision for income taxes for each of the three years were as follows:
2004 2003 2002
(As Restated,
see Note 2)
(As Restated,
see Note 2)
(As Restated,
see Note 2)
Current:
Federal $44,006 $17,214 $45,223
State 4,273 1,483 3,029
Deferred 14,384 39,254 1,745
Total income tax provision $62,663 $57,951 $49,997
A reconciliation of the provision for income taxes and the amount computed by multiplying the income
before the provision for income taxes by the U.S. federal statutory rate of 35% was as follows:
2004 2003 2002
(As Restated,
see Note 2)
(As Restated,
see Note 2)
(As Restated,
see Note 2)
Provision computed at federal statutory
income tax rate $61,092 $57,071 $49,154
State and local income taxes, net of federal
benefit 5,578 4,399 4,622
Employer tax credits for FICA taxes paid on
employee tip income (4,781) (4,323) (3,875)
Other-net 774 804 96
Total income tax provision $62,663 $57,951 $49,997
The Internal Revenue Service (“IRS”) has completed its examinations of the Company’s federal income tax
returns for 1997 through 2001. Additionally, the IRS has completed its examinations of the Company’s federal
payroll tax filings for the calendar years ended December 31, 1997 through December 31, 2001.
9. SEGMENT INFORMATION
Cracker Barrel units represent a single, integrated operation with two related and substantially integrated
product lines. The operating expenses of the restaurant and retail product lines of a Cracker Barrel unit are shared and
are indistinguishable in many respects. Likewise, Logan’s units are restaurant operations with investment criteria and
economic and operating characteristics similar to those of Cracker Barrel. The chief operating decision makers
regularly evaluate the Cracker Barrel and Logan’s restaurant and retail components in determining how to allocate
resources and in assessing performance. Accordingly, the Company manages its business on the basis of one
reportable operating segment. All of the Company’s operations are located within the United States. The following
data are presented in accordance with SFAS No. 131 for all periods presented.