Cracker Barrel 2010 Annual Report Download - page 27

year increase from 2009 to 2010 was due in equal parts to
higher maintenance and rent expenses. Higher maintenance
expense resulted from the timing of sign maintenance and
other programs. e increase in rent expense was due to the
sale-leaseback transactions we completed in the fourth
quarter of 2009 (see Note 10 to the accompanying Consoli-
dated Financial Statements). Other store operating expenses
were relatively constant in 2009 as compared to 2008.
General and Administrative Expenses
General and administrative expenses as a percentage of total
revenue were 6.1%, 5.1% and 5.4% in 2010, 2009 and 2008,
respectively. e year-to-year increase from 2009 to 2010 was
due to higher incentive compensation accruals, including
share-based compensation, which reected beer perfor-
mance against nancial objectives in 2010 as compared to the
prior year. e year-to-year decrease from 2008 to 2009 was
due in equal parts to lower manager trainee salaries resulting
from lower manager turnover in 2009, lower travel resulting
from cost control eorts and the non-recurrence of expenses
associated with a manager meeting which was held in 2008.
Interest Expense
Interest expense as a percentage of total revenue was 2.0%,
2.2% and 2.4% in 2010, 2009, and 2008, respectively.
e year-to-year decrease from 2009 to 2010 was primarily
due to lower average debt outstanding. e year-to-year
decrease from 2008 to 2009 was primarily due to lower
average interest rates.
Provision for Income Taxes
Provision for income taxes as a percent of income before
income taxes was 26.3%, 26.8% and 30.2% in 2010, 2009 and
2008, respectively. e decrease in the eective tax rate from
2009 to 2010 reected a net reduction in our liability for
uncertain tax positions of $2,134 this year compared to $389
last year and higher employer tax credits on an absolute
dollar basis mostly oset by the eect on our tax rate from
the increase in pretax income. e decrease in the eective
tax rate from 2008 to 2009 reected a net reduction in our
liability for uncertain tax positions of $389 in 2009 compared
to a net increase in 2008 of $1,782 and higher employer
tax credits on an absolute dollar basis and as a percent of
pretax income partially oset by higher eective state income
tax rates.
LIQUIDITY AND CAPITAL RESOURCES
e following table presents a summary of our cash ows for
the last three years:
2010 2009 2008
Net cash provided by
operating activities
of continuing operations $ 212,106 $ 164,171 $ 124,510
Net cash used in investing
activities of continuing
operations (69,626) (9,087) (82,706)
Net cash used in nancing
activities of continuing
operations (106,389) (155,406) (44,459)
Net cash (used in) provided
by operating activities
of discontinued operations — (47) 385
Net increase (decrease) in
cash and cash equivalents $ 36,091 $ (369) $ (2,270)
Our primary sources of liquidity are cash generated from
our operations and our borrowing capacity under our
$250,000 revolving credit facility (the “Revolving Credit
Facility”). Our internally generated cash, along with cash on
hand at July 31, 2009, our borrowings under our Revolving
Credit Facility and proceeds from exercises of share-based
compensation awards, were sucient to nance all of our
growth, share repurchases, dividend payments, working
capital needs and other cash payment obligations in 2010.
We believe that cash at July 30, 2010, along with cash
generated from our operating activities, the borrowing
capacity under our Revolving Credit Facility and proceeds
from exercises of share-based compensation awards will be
sucient to nance our continuing operations, our
continuing expansion plans, our principal payments on our
debt, our share repurchase plans and our expected dividend
payments for at least the next twelve months and thereaer
for the foreseeable future.
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