Cracker Barrel 2011 Annual Report Download - page 53

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51
of approximately 2.2 years with annual lease payments of
approximately $361 for a total guarantee of $781. e
Company’s performance is required only if the assignee fails
to perform its obligations as lessee. At this time, the Company
has no reason to believe that the assignee will not perform
and, therefore, no provision has been made in the Consolidated
Balance Sheets for amounts to be paid in case of non-
performance by the assignee.
Upon the sale of Logan’s, the Company reaffirmed its
guarantee of the lease payments for two Logan’s restaurants.
At July 29, 2011, the operating leases had remaining lives of
0.4 and 8.7 years with annual payments of approximately
$94 and $108, respectively, for a total guarantee of $1,021. e
Company’s performance is required only if Logan’s fails to
perform its obligations as lessee. At this time, the Company
has no reason to believe Logan’s will not perform, and
therefore, no provision has been made in the Consolidated
Balance Sheets for amounts to be paid as a result of non-
performance by Logan’s.
e Company enters into certain indemnification
agreements in favor of third parties in the ordinary course of
business. e Company believes that the probability of
incurring an actual liability under such indemnification
agreements is sufficiently remote so that no liability has been
recorded. In connection with the divestiture of Logan’s, the
Company entered into various agreements to indemnify third
parties against certain tax obligations, for any breaches of
representations and warranties in the applicable transaction
documents and for certain costsand expenses that may
arise out of specified real estate maers, including potential
relocation and legal costs. At July 29, 2011, the Company
believes that the probability of being required to make any
indemnification payments to Logan’s is remote, and therefore,
no provision has been recorded in the Consolidated Balance
Sheet. At July 30, 2010, the Company recorded a liability
of $20 in the Consolidated Balance Sheet for these potential
tax indemnifications.
17 QUARTERLY FINANCIAL DATA
UNAUDITED
Quarterly financial data for 2011 and 2010 are summarized
as follows:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
2011
Total revenue $598,691 $640,277 $582,525 $612,942
Gross profit 418,938 420,887 402,751 419,388
Income before
income taxes33,702 40,642 19,586 21,761
Income from
continuing operations 23,734 28,777 15,154 17,543
Net income23,734 28,777 15,154 17,543
Income from continuing
operations per share –
basic $1.04 $1.24 $0.66 $0.77
Net income per share –
basic $1.04 $1.24 $0.66 $0.77
Income from continuing
operations per share –
diluted $ 1.01 $1.20 $0.64 $0.75
Net income per share –
diluted $ 1.01 $1.20 $0.64 $0.75
2010
Total revenue $581,183 $632,616 $578,233 $612,483
Gross profit 403,712 420,718 405,192 429,075
Income before
income taxes26,215 36,092 19,645 33,757
Income from
continuing operations 18,024 25,393 14,428 27,413
Net income18,024 25,393 14,428 27,413
Income from continuing
operations per share –
basic $0.79 $1.11 $0.62 $1.18
Net income per share –
basic $0.79 $1.11 $0.62 $1.18
Income from continuing
operations per share –
diluted $ 0.78 $1.09 $0.61 $1.14
Net income per share –
diluted $ 0.78 $1.09 $0.61 $1.14
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