Cracker Barrel 2010 Annual Report Download - page 56

covering highly compensated employees, as dened 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 dened 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 2010, 2009 and 2008, 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 partici-
pant’s rst anniversary of employment and are vested 100%
on the participant’s h anniversary of employment. In
2010, 2009 and 2008, the Company contributed approxi-
mately $2,023, $2,052 and $1,801, respectively, under Plan I
and approximately $316, $285 and $356, respectively, under
Plan II. At the inception of Plan II, the Company established
a Rabbi Trust to fund Plan II obligations. e market value of
the trust assets for Plan II of $25,935 is included in other
assets and the liability to Plan II participants of $25,935 is
included in other long-term obligations in the Consolidated
Balance Sheet. Company contributions under Plan I and
Plan II are recorded as either labor and other related
expenses or general and administrative expenses in the
Consolidated Statement of Income.
14 INCOME TAXES
Signicant components of the Company’s net deferred tax
liability consisted of the following at:
July 30, 2010 July 31, 2009
Deferred tax assets:
Financial accruals without
economic performance $ 60,687 $ 63,480
Other 9,821 7,629
Deferred tax assets $ 70,508 $ 71,109
Deferred tax liabilities
Excess tax depreciation over book $ 79,503 $ 78,607
Other 25,719 24,866
Deferred tax liabilities 105,222 103,473
Net deferred tax liability $ 34,714 $ 32,364
e Company provided no valuation allowance against
deferred tax assets recorded as of July 30, 2010 and July 31,
2009, as the “more-likely-than-not” valuation method
determined all deferred assets to be fully realizable in future
taxable periods.
e components of the provision for income taxes
from continuing operations for each of the three years were
as follows:
2010 2009 2008
Current:
Federal $ 29,114 $ 20,307 $ 23,536
State (88) 3,320 1,789
Deferred:
Federal 336 (1,157) 1,565
State 1,089 1,635 1,322
Total income tax provision $ 30,451 $ 24,105 $ 28,212
A reconciliation of the provision for income taxes from
continuing operations and the amount computed by
multiplying the income before the provision for income
taxes by the U.S. federal statutory rate of 35% was as follows:
2010 2009 2008
Provision computed at federal
statutory income tax rate $ 40,498 $ 31,521 $ 32,730
State and local income taxes,
net of federal benet 495 1,697 2,992
Employer tax credits for
FICA taxes paid on employee
tip income (8,062) (6,383) (5,846)
Other employer tax credits (3,769) (3,740) (2,994)
Section 162(m) non-deductible
compensation — 44 —
Other-net 1,289 966 1,330
Total income tax provision $ 30,451 $ 24,105 $ 28,212
As of July 30, 2010 and July 31, 2009, the Company’s
liability for uncertain tax positions was $17,467 ($11,791,
net of related federal tax benets of $5,676) and $26,137
($17,364, net of related federal tax benets of $8,773),
respectively. At July 30, 2010, July 31, 2009 and August 1,
2008, the amount of uncertain tax positions that, if recog-
nized, would aect the eective tax rate is $11,791, $17,364
and $17,753, respectively.
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