Cracker Barrel 2004 Annual Report Download - page 60

11. EMPLOYEE SAVINGS PLANS
The Company sponsors a qualified defined contribution retirement plan ("Plan I") covering salaried and
hourly employees who have completed one year of service and have attained the age of twenty-one. Plan I allows
eligible employees to defer receipt of up to 16% of their compensation, as defined in the plan.
The Company also sponsors a non-qualified defined contribution retirement plan ("Plan II") covering highly
compensated employees, as defined in the plan. Plan II allows eligible employees to defer receipt of up to 50% of
their base compensation and 100% of their eligible bonuses, as defined in the plan. Contributions under both Plan I
and Plan II may be invested in various investment funds at the employee’s discretion. Such contributions, including
the Company matching contribution described below, may not be invested in the Company’s common stock. The
Company matches 25% of employee contributions for each participant in either Plan I or Plan II up to a total of 6%
of the employee’s compensation. Employee contributions vest immediately while Company contributions vest 20%
annually beginning on the participant's first anniversary of employment. In 2004, 2003, and 2002, the Company
contributed approximately $1,321, $1,524 and $1,609, respectively, under Plan I and approximately $345, $280 and
$203, respectively, under Plan II. At the inception of Plan II, the Company established a Rabbi Trust to fund Plan II
obligations. The market value of the trust assets of $12,479 is included in other assets and the liability to Plan II
participants of $12,479 is included in other long-term obligations. Company contributions under Plan I and Plan II
are recorded as other store operating expenses.
12. SALE-LEASEBACK
On July 31, 2000, Cracker Barrel completed a sale-leaseback transaction involving 65 of its owned units.
Under the transaction, the land, buildings and building improvements at the locations were sold for net consideration
of $138,325 and were leased back for an initial term of 21 years. Equipment was not included. The leases include
specified renewal options for up to 20 additional years and have certain financial covenants related to fixed charge
coverage for the leased units. At July 30, 2004 and August 1, 2003, the Company was in compliance with all those
covenants. Net rent expense during the initial term is $14,963 annually, and the assets sold and leased back
previously had depreciation expense of approximately $2,707 annually. The gain on the sale is being amortized
over the initial lease term of 21 years.
13. QUARTERLY FINANCIAL DATA (UNAUDITED)
Quarterly financial data for 2004 and 2003 are summarized as follows:
1st Quarter
(As Previously
Reported)
Lease
Adjustment
1st Quarter
(As Restated,
see Note 2)
2004
Total revenue $576,365 -- $576,365
Gross profit 390,465 -- 390,465
Income before income taxes 43,794 (481) 43,313
Net income 28,160 (309) 27,851
Net income per share – basic $0.59 (0.01) $0.58
Net income per share - diluted $0.56 (0.01) $0.55
2003
Total revenue $527,539 -- $527,539
Gross profit 361,574 -- 361,574
Income before income taxes 35,635 (638) 34,997
Net income 22,985 (412) 22,573
Net income per share – basic $0.46 (0.01) $0.45
Net income per share - diluted $0.45 (0.01) $0.44
2nd Quarter
(As Previously
Reported)
Lease
Adjustment
2nd Quarter
(As Restated,
see Note 2)
2004
Total revenue $612,801 -- $612,801
Gross profit 399,274 -- 399,274
Income before income taxes 45,381 (553) 44,828
Net income 29,001 (353) 28,648
Net income per share – basic $0.59 (0.01) $0.58
Net income per share - diluted $0.57 (0.01) $0.56