Cracker Barrel 2009 Annual Report Download - page 74

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February 2011. Compensation cost for these modified
awards will be recognized by Logan’s over the remaining
vesting period of the awards.
During 2007, the Company also recognized additional
compensation expense of $1,731 for retirement eligible
employees under its MTIRP plans. Compensation expense is
recognized to the date on which retirement eligibility is
achieved, if shorter than the vesting period.
13 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. In 2009, 2008 and 2007, the Company matched 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 and
are vested 100% on the participant’s fifth anniversary of
employment. In 2009, 2008 and 2007, the Company
contributed approximately $2,052, $1,801 and $1,552,
respectively, under Plan I and approximately $285, $356
and $323, respectively, under Plan II, for continuing
operations. At the inception of Plan II, the Company
established a Rabbi Trust to fund Plan II obligations. The
market value of the trust assets for Plan II of $22,583 is
included in other assets and the liability to Plan II
participants of $22,583 is included in other long-term
obligations. Company contributions under Plan I and
Plan II related to continuing operations are recorded
as either labor and other related expenses or general and
administrative expenses.
14 COMPENSATORY PLANS AND ARRANGEMENTS
In connection with the Company’s 2006 strategic
initiatives, the Committee approved, pursuant to the
Company’s 2002 Omnibus Incentive Compensation Plan (see
Note 12), the “2006 Success Plan” for certain officers
of the Company. The maximum amount payable under the
2006 Success Plan was $6,647 by the Company and
$1,168 by Logan’s. On June 6, 2007, the Company paid
$6,647 under this plan. During 2007, the Company
recorded expense of $2,137 for this plan as general and
administrative expenses from continuing operations and
recorded $2,136 related to the Company’s officers and $206
related to Logan’s officers as discontinued operations.
15 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 31, August 1,
2009 2008
Deferred tax assets:
Financial accruals without economic
performance $ 63,480 $ 57,155
Other 7,629 5,985
Deferred tax assets $ 71,109 $ 63,140
Deferred tax liabilities
Excess tax depreciation over book $ 78,607 $ 75,213
Other 24,866 24,182
Deferred tax liabilities 103,473 99,395
Net deferred tax liability $ 32,364 $ 36,255
The Company provided no valuation allowance against
deferred tax assets recorded as of July 31, 2009 and
August 1, 2008, 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 from continuing operations for
each of the three years were as follows:
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