Cracker Barrel 2012 Annual Report Download - page 53

51
14 RESTRUCTURINGS
In April 2012, the Company restructured and streamlined its
eld organization to beer align its restaurant and retail
operations under central leadership. e restructuring of the
eld organization and related changes in the Company’s
headquarters in Lebanon, Tennessee, resulted in the elimina-
tion of approximately 20 positions. As a result, the Company
incurred severance charges of $1,660. In July 2011, as part of
its cost reduction and organization streamlining initiative,
the Company eliminated approximately 60 management and
sta positions. Most of the employees aected worked in
the Company’s headquarters, and the restructuring did not
aect any store positions. As a result, the Company
incurred severance charges of $1,768.
Severance charges are recorded in general and administra-
tive expenses in the Consolidated Statements of Income and
the related liability is recorded in accrued employee compen-
sation in the Consolidated Balance Sheets. e following
table highlights the components of the related liability.
August 3, 2012 July 29, 2011
Liability at beginning of year $ 1,579 $ —
Severance 1,660 1,768
Payments (1,990) (189)
Adjustments (382) —
Liability at end of year $ 867 $ 1,579
15 INCOME TAXES
Signicant components of the Company’s net deferred tax
liability consisted of the following at:
August 3, 2012 July 29, 2011
Deferred tax assets:
Financial accruals without economic
performance $ 57,881 $ 56,954
Other 13,282 15,068
Deferred tax assets $ 71,163 $ 72,022
Deferred tax liabilities
Excess tax depreciation over book $ 91,149 $ 90,361
Other 27,992 28,033
Deferred tax liabilities 119,141 118,394
Net deferred tax liability $ 47,978 $ 46,372
e Company provided no valuation allowance against
deferred tax assets recorded as of August 3, 2012 and July 29,
2011, 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 for each
of the three years were as follows:
2012 2011 2010
Current:
Federal $ 34,074 $ 17,231 $ 29,114
State 7,928 5,577 (88)
Deferred:
Federal 886 9,019 336
State 319 (1,344) 1,089
Total income tax provision $ 43,207 $ 30,483 $ 30,451
A reconciliation of the provision for income taxes 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:
2012 2011 2010
Provision computed at federal
statutory income tax rate $ 51,201 $ 40,492 $ 40,498
State and local income taxes,
net of federal benet 6,424 3,050 495
Employer tax credits for FICA taxes
paid on employee tip income (9,114) (8,351) (8,062)
Other employer tax credits (4,938) (5,098) (3,769)
Other-net (366) 390 1,289
Total income tax provision $ 43,207 $ 30,483 $ 30,451
As of August 3, 2012 and July 29, 2011, the Company’s
liability for uncertain tax positions was $24,703 ($16,607,
net of related federal tax benets of $8,096) and $19,547
($13,223, net of related federal tax benets of $6,324),
respectively.
e following table highlights the amount of uncertain tax
positions that, if recognized, would aect the eective tax
rate for each of the three years:
2012 2011 2010
Uncertain tax positions $ 16,607 $ 13,223 $ 11,791