Cracker Barrel 2009 Annual Report Download - page 70

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68
10 LITIGATION SETTLEMENT
The Company was a member of a plaintiff class of a settled
lawsuit against Visa U.S.A. Inc. (“Visa”) and MasterCard
International Incorporated (“MasterCard”). The Visa
Check/Mastermoney Antitrust litigation settlement became
final on June 1, 2005. Because the Company believed
this settlement represented an indeterminate mix of loss
recovery and gain contingency, the Company could not
record the expected settlement proceeds until the
settlement amount and timing were reasonably certain.
During the second quarter of 2007, the Company received
its share of the proceeds, which was $1,318, and recorded
the amount of the proceeds as a gain that is included
in other store operating expenses in the Consolidated
Statement of Income.
11 GAINS ON PROPERTY DISPOSITION
During 2008, the Company sold the one remaining Logan’s
property that the Company had retained and leased back
following the divestiture of Logan’s (see Note 16). This
property was classified as property held for sale and had a
net book value of approximately $1,960. The Company
received net proceeds of approximately $3,770, which
resulted in a pre-tax gain of approximately $1,810. The gain
is recorded in general and administrative expenses
from continuing operations in the Consolidated Statement
of Income.
During 2007, the Company sold two of the three Logan’s
properties the Company had retained and leased back
following the divestiture of Logan’s. The Company received
total net proceeds of approximately $6,187 on the two
properties, which resulted in a total pre-tax gain of
approximately $2,505. The gain is recorded in general and
administrative expenses from continuing operations in
the Consolidated Statement of Income. Additionally, during
2007, the State of New York condemned a portion of
the land on which a Cracker Barrel store was located to
build a road. The Company received condemnation
proceeds of approximately $760 and recorded a pre-tax
gain of approximately $500 in other store operating
expenses from continuing operations in the Consolidated
Statement of Income.
12 SHARE-BASED COMPENSATION
Stock Compensation Plans
The Company’s employee compensation plans are
administered by the Compensation Committee of the
Company’s Board of Directors (the “Committee”).
The Committee is authorized to determine, at time periods
within its discretion and subject to the direction of
the Board, which employees will be granted options and
other awards, the number of shares covered by any awards
granted, and within applicable limits, the terms and
provisions relating to the exercise of any awards.
Directors Plan
In 1989, the Company’s shareholders approved the Cracker
Barrel Old Country Store, Inc. 1989 Stock Option Plan for
Non-employee Directors (“Directors Plan”). Stock options
granted under the Directors Plan had an exercise price
equal to the fair market value of the Company’s common
stock on the date of grant and expire one year from the
retirement of the director from the Board. An aggregate of
1,518,750 shares of the Company’s common stock was
authorized for issuance under the Directors Plan. Owing to
the overall plan limit, no shares have been granted since
1994. At July 31, 2009, there were outstanding awards for
244,762 shares under the Directors Plan.
Employee Plan
The Company’s 2000 Non-Executive Stock Option Plan
(“Employee Plan”) covered employees who are not officers
or directors of the Company. Stock options granted under
the Employee Plan had an exercise price of at least 100%
of the fair market value of the Company’s common stock
based on the date of grant and become exercisable each
year at a cumulative rate of 33% per year and expire ten
years from the date of grant. An aggregate of 4,750,000
shares of the Company’s common stock originally were
authorized under the Employee Plan, which expired
on July 29, 2005. At July 31, 2009, there were outstanding
awards for 354,260 shares under the Employee Plan.
Amended and Restated Stock Option Plan
The Company’s Amended and Restated Stock Option Plan
(the “Plan”) allows the Committee to grant options
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