Cracker Barrel 2010 Annual Report Download - page 57

Summarized below is a tabular reconciliation of the
beginning and ending balance of the Company’s total gross
liability for uncertain tax positions exclusive of interest
and penalties:
July 30, July 31, August 1,
2010 2009 2008
Balance at beginning of year $ 21,956 $ 22,879 $ 21,338
Tax positions related to the
current year:
Additions 2,195 3,168 3,857
Reductions — — —
Tax positions related to prior years:
Additions 44 90 1,342
Reductions (4,458) (2,146) (995)
Selements (4,980) (127) —
Expiration of statute of limitations (1,792) (1,908) (2,663)
Balance at end of year $ 12,965 $ 21,956 $ 22,879
At July 30, 2010, July 31, 2009 and August 1, 2008, the
Company recognized approximately $271, $302 and $780,
respectively, in interest and penalties related to uncertain tax
positions in its provision for income taxes. At July 30, 2010,
and July 31, 2009, the Company’s liability for uncertain tax
positions included $3,363 and $3,092, respectively, net of tax
for potential interest and penalties.
In many cases, the Company’s uncertain tax positions are
related to tax years that remain subject to examination by the
relevant taxing authorities. Based on the outcome of these
examinations or as a result of the expiration of the statutes of
limitations for specic taxing jurisdictions, the related
uncertain tax positions taken regarding previously led tax
returns could decrease from those recorded as liabilities for
uncertain tax positions in the Company’s nancial state-
ments at July 30, 2010 by approximately $3,000 to $4,000
within the next twelve months. At July 30, 2010, the
Company was subject to income tax examinations for its U.S.
federal income taxes aer 2006 and for state and local
income taxes generally aer 2006.
15 DISCONTINUED OPETIONS
e Company sold Logan’s in 2007. In 2009 and 2008, the
Company reported in discontinued operations certain
expenses related to the divestiture of Logan’s, which consist
of the following:
July 31, August 1,
2009 2008
Loss before tax benet from
discontinued operations $ (47) $ (229)
Income tax benet 16 80
Loss from discontinued operations,
net of tax, before gain on sale of Logan’s (31) (149)
Gain on sale of Logan’s, net of tax of $215 — 399
Loss (income) from discontinued
operations, net of tax $ (31) $ 250
In 2009, the Company incurred $47 in expenses related to
certain tax indemnications related to Logan’s (see Note 17).
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.
16 NET INCOME PER SHARE AND
WEIGHTED AVEGE SHARES
e following table reconciles the components of diluted
earnings per share computations:
July 30, July 31, August 1,
2010 2009 2008
Income from continuing
operations per share
numerator $ 85,258 $ 65,957 $ 65,303
(Loss) income from
discontinued operations,
net of tax, per share
numerator $ — $ (31) $ 250
Net income per
share numerator $ 85,258 $ 65,926 $ 65,553
Income from continuing
operations, (loss) income
from discontinued operations,
net of tax, and net income
per share denominator:
Basic weighted average
shares outstanding 23,007,856 22,458,971 22,782,608
Add potential dilution:
Stock options and
nonvested stock
and stock awards 571,896 328,662 623,436
Diluted weighted
average shares
outstanding 23,579,752 22,787,633 23,406,044
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