Cracker Barrel 2012 Annual Report Download - page 54

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:
August 3, July 30, July 30,
2012 2011 2010
Balance at beginning of year $ 14,167 $ 12,965 $ 21,956
Tax positions related to the current year:
Additions 3,326 2,616 2,195
Reductions — — —
Tax positions related to the prior year:
Additions 2,556 987 44
Reductions (1,043) (24) (4,458)
Selements — — (4,980)
Expiration of statute of limitations (908) (2,377) (1,792)
Balance at end of year $ 18,098 $ 14,167 $ 12,965
e following table highlights the amount of interest and
penalties related to uncertain tax positions recognized in the
provision for income taxes for each of the three years:
2012 2011 2010
Interest and penalties related to
uncertain tax positions $ 830 $ 651 $ 271
e following table highlights the amount of potential
interest and penalties, net of tax, included in the Company’s
liability for uncertain tax positions at:
August 3, July 29,
2012 2011
Interest and penalties, net of tax $ 4,844 $ 4,014
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 August 3, 2012 by approximately $5,000 to $7,000
within the next twelve months. At August 3, 2012, the
Company was subject to income tax examinations for its
U.S. federal income taxes aer 2008 and for state and local
income taxes generally aer 2008.
16 NET INCOME PER SHARE AND
WEIGHTED AVEGE SHARES
e following table reconciles the components of diluted
earnings per share computations:
2012 2011 2010
Net income per share
numerator $ 103,081 $ 85,208 $ 85,258
Net income per share
denominator:
Basic weighted average
shares outstanding 23,067,566 22,998,200 23,007,856
Add potential dilution:
Stock options and
nonvested stock and
stock awards 340,560 636,475 571,896
Diluted weighted average
shares outstanding 23,408,126 23,634,675 23,579,752
17 COMMITMENTS AND CONTINGENCIES
e Company and its subsidiaries are party to various legal
and regulatory proceedings and claims incidental to their
business in the ordinary course. In the opinion of manage-
ment, based upon information currently available, the
ultimate liability with respect to these proceedings and
claims will not materially aect the Company’s consolidated
results of operations or nancial position.
e Company maintains insurance coverage for various
aspects of its business and operations. e Company has
elected, however, to retain all or a portion of losses that occur
through the use of various deductibles, limits and retentions
under its insurance programs. is situation may subject the
Company to some future liability for which it is only partially
insured, or completely uninsured. e Company intends
to mitigate any such future liability by continuing to exercise
prudent business judgment in negotiating the terms and
conditions of its contracts. See Note 2 for a further discussion
of insurance and insurance reserves.
52