Cracker Barrel 2009 Annual Report Download - page 76

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July 31, August 1, August 3,
2009 2008 2007
Revenues $ — $ — $154,529
(Loss) income before tax benefit
(provision for income taxes)
from discontinued operations (47) (229) 7,450
Income tax benefit
(provision for income taxes) 16 80 (2,279)
(Loss) income from discontinued
operations, net of tax, before
gain on sale of Logan’s (31) (149) 5,171
Gain on sale of Logan’s,
net of tax of $215 and $8,592,
respectively — 399 80,911
(Loss) income from discontinued
operations, net of tax $(31) $ 250 $ 86,082
In 2009, the Company incurred $47 in expenses related
to certain tax indemnifications related to Logan’s (see
Note 18). In 2008, the Company recorded an adjustment in
accordance with the Logan’s sale agreement related to
taxes, resulting in additional proceeds from the sale of
Logan’s of $614.
A reconciliation of the income tax benefit (provision for
income taxes) from discontinued operations and the
amount computed by multiplying the income before the
income tax benefit (provision for income taxes) from
discontinued operations by the U.S. federal statutory rate
of 35% was as follows:
July 31, August 1, August 3,
2009 2008 2007
Income tax benefit
(provision for income taxes)
computed at federal statutory
income tax rate $16 $(135) $(11,955)
State and local income taxes,
net of federal benefit — — 621
Employer tax credits for FICA taxes
paid on employee tip income — — 478
Other-net — — (15)
Total income tax benefit
(provision for income taxes)
from discontinued operations $16 $(135) $(10,871)
17 NET INCOME PER SHARE
AND WEIGHTED AVERAGE SHARES
The following table reconciles the components of diluted
earnings per share computations:
July 31, August 1, August 3,
2009 2008 2007
Income from continuing operations per share numerator:
Income from continuing
operations $ 65,957 $ 65,303 $ 75,983
Add: Interest and loan
acquisition costs associated
with Senior Notes,
net of related tax effects
(see Note 2) — — 3,977
Income from continuing
operations available to
common shareholders $ 65,957 $ 65,303 $ 79,960
(Loss) income from
discontinued operations,
net of tax, per share
numerator $ (31) $ 250 $ 86,082
Net income per share numerator:
Income from operations $ 65,926 $ 65,553 $ 162,065
Add: Interest and loan
acquisition costs associated
with Senior Notes,
net of related tax effects
(see Note 2) — — 3,977
Income from operations
available to common
shareholders $ 65,926 $ 65,553 $ 166,042
Income from continuing
operations, (loss) income
from discontinued operations,
net of tax, and net income
per share denominator:
Basic weighted average
shares outstanding 22,458,971 22,782,608 27,643,098
Add potential dilution:
Senior and New Notes
(see Note 2) — — 3,479,087
Stock options and
nonvested stock and
stock awards 328,662 623,436 634,397
Diluted weighted average
shares outstanding 22,787,633 23,406,044 31,756,582
18 COMMITMENTS AND CONTINGENCIES
The Company and its subsidiaries are parties to various
legal and regulatory proceedings and claims incidental to
and arising out of the ordinary course of its business.
In the opinion of management, based upon information
currently available, the ultimate liability with respect
to these proceedings and claims will not materially affect
the Company’s consolidated results of operations or
financial position.
The Company is contingently liable pursuant to standby
letters of credit as credit guarantees related to insurers.
As of July 31, 2009, the Company had $33,892 of standby
letters of credit related to securing reserved claims under
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