Cracker Barrel 2013 Annual Report Download - page 21
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Please find page 21 of the 2013 Cracker Barrel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.e year-to-year percentage change from 2011 to 2012
resulted primarily from the following:
2011 to 2012
(Decrease) Increase as a
Percentage of Total Revenue
Utilities (0.2%)
Litigation selement received in 2012 (0.1%)
Credit card fees (0.1%)
Supplies (0.1%)
Advertising 0.2%
e decrease in utilities expense from 2011 to 2012
resulted primarily from lower natural gas costs.
In the rst quarter of 2012, we received proceeds from a
litigation selement and recorded the proceeds as a gain
in other store operating expenses since the selement related
to a maer previously recorded in other store operating
expenses. Because we believed this selement represented a
gain contingency, we did not record the gain until the
selement amount and timing were assured.
e decrease in credit card fees from 2011 to 2012 resulted
from a reduction in debit card fee rates due to a change in
Federal law governing such fees. We believe that the decrease
in supplies expense as a percentage of total revenue from
2011 to 2012 resulted primarily from our eorts to control
this expense.
e increase in advertising expense from 2011 to 2012
resulted from our change in advertising strategy during 2012
in which we spent more on television advertising than in
the prior year as a result of our entry into the national cable
market in 2012.
General and Administrative Expenses
General and administrative expenses as a percentage of total
revenue were 5.4%, 5.7% and 5.7% in 2013, 2012 and 2011,
respectively.
e year-to-year percentage change from 2012 to 2013
resulted from the following:
2012 to 2013
(Decrease) as a
Percentage of Total Revenue
Payroll and related expenses (0.2%)
Manager conference expense (0.1%)
Lower payroll and related expenses in 2013 as compared to
2012 resulted primarily from fewer store managers in
training due to lower turnover and our opening fewer stores
in 2013 as compared to 2012. e decrease in general and
administrative expenses in 2013 as compared to 2012 also
resulted from the non-recurrence of expenses associated with
a biannual manager conference which was held in the rst
quarter of 2012.
General and administrative expenses as a percentage of
total revenue remained at at 5.7% in 2012 as compared to
2011 as a result of the following oseing variances:
2011 to 2012
(Decrease) Increase as a
Percentage of Total Revenue
Payroll and related expenses (0.5%)
Incentive compensation 0.3%
Expenses related to December 2011 proxy contest 0.2%
Lower payroll and related expenses in 2012 as compared
to 2011 resulted primarily from our organizational restructur-
ings (see “Restructurings” above). Higher incentive
compensation in 2012 as compared to 2011 resulted primarily
from beer performance against nancial objectives.
Impairment and Store Dispositions, Net
Impairment and store dispositions, net consisted of the
following for the past three years:
2013 2012 2011
Impairment $ — $ — $ 3,219
Gains on disposition of stores — — (4,109)
Store closing costs — — 265
Total $ — $ — $ (625)
In 2013 and 2012, we did not incur any impairment
charges, gains on disposition of stores or store closing costs.
In 2011, we recorded impairment charges of $1,044 and
$2,175, respectively, for oce space classied as property
held for sale and a leased store. e leased store was impaired
because of declining operating performance and resulting
negative cash ow projections. During 2011, we sold two
closed stores. Additionally, one of our stores was acquired by
the State of Florida for road expansion pursuant to eminent
domain. ese transactions resulted in a net gain of $4,109.
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