Cracker Barrel 2013 Annual Report Download - page 25

e following table highlights our working capital:
2013 2012 2011
Work ing capital (decit) $ (13,873) $ 18,249 $ (21,188)
e change in working capital at August 2, 2013 compared to
August 3, 2012 primarily reected a decrease in cash due to
optional debt payments and higher dividend payments in 2013.
e change in working capital at August 3, 2012 compared to
July 29, 2011 primarily reected cash generated from operations
and proceeds received from share-based compensation exercises
partially oset by the current portion of our interest rate swap
liability, higher incentive compensation accruals based on beer
performance against nancial objectives in 2012 and the timing
of payments for estimated income taxes.
O-Balance Sheet Arrangements
Other than various operating leases, which are disclosed more
fully in “Material Commitments” below and Notes 2 and
10 to our Consolidated Financial Statements, we have no other
material o-balance sheet arrangements.
Material Commitments
Our contractual cash obligations and commitments as of
August 2, 2013, are summarized in the tables below:
Payments due by Year
Contractual Obligations (a) Total 2014 2015-2016 2017-2018 Aer 2018
Term loan (b) $ 187,500 — $ 187,500 — —
Revolving Credit
Facility (b) 212,500 — 212,500 — —
Operating leases (c) 766,444 $ 59,075 89,346 $ 81,040 $ 536,983
Purchase
obligations (d) 111,347 63,559 27,966 18,997 825
Other long-term
obligations (e) 37,316 2,343 8,477 300 26,196
Total contractual
cash obligations $1,315,107 $ 124,977 $ 525,789 $ 100,337 $ 564,004
Amount of Commitment Expirations by Year
Total 2014 2015-2016 2017-2018 Aer 2018
Revolving Credit
Facility(b) $ 500,000 — $ 500,000 — —
Standby leers
of credit(f ) 28,971 $ 8,335 20,636 — —
Guarantees (g) 827 168 228 $ 235 $ 196
Total commitments $ 529,798 $ 8,503 $ 520,864 $ 235 $ 196
(a) At August 2, 2013, the entire liability for uncertain tax positions
(including penalties and interest) is classied as a long-term liability.
At this time, we are unable to make a reasonably reliable estimate
of the amounts and timing of payments in individual years because of
uncertainties in the timing of the eective selement of tax positions. As
such, the liability for uncertain tax positions of $28,841 is not included
in the contractual cash obligations and commitments table above.
(b) Our term loan is payable on or before July 8, 2016 and our Revolving
Credit Facility expires on July 8, 2016. Using our expected principal
payments and projected interest rates, we anticipate having interest
payments of $15,077 and $23,688 in 2014 and 2015-2016,
respectively. e projected interest rates for our swapped portion of our
outstanding borrowings are our xed rates under our interest rate
swaps (see Note 6 to the Consolidated Financial Statements) plus our
current credit spread of 1.50%. e projected interest rate for our
unswapped portion of our outstanding borrowings is the average of the
three-year and ve-year swap rates at August 2, 2013 of 1.33% plus
our current credit spread. Even though our current credit facility
expires in 2016, we have the intent and ability to renance our debt to
maintain a sucient amount of outstanding borrowings during the
terms of our interest rate swaps that expire in 2017 and 2018. Based
on the xed rates plus our current credit spread under these interest
rate swaps, we anticipate having interest payments of $8,439 in
2017-2018. Based on our outstanding borrowings under our
Revolving Credit Facility and standby leers of credit at August 2,
2013 and our current unused commitment fee as dened in the
Credit Facility, our unused commitment fees in 2014 and 2015-2016
would be $646 and $1,255; however, the actual amount will dier
based on actual usage of the Revolving Credit Facility in 2014 and
2015-2016.
(c) Includes base lease terms and certain optional renewal periods for which
at the inception of the lease, it is reasonably assured that we will exercise.
(d) Purchase obligations consist of purchase orders for food and retail
merchandise; purchase orders for capital expenditures, supplies, other
operating needs and other services; and commitments under contracts
for maintenance needs and other services. We have excluded
contracts that do not contain minimum purchase obligations. We
excluded long-term agreements for services and operating needs that
can be cancelled within 60 days without penalty. We included
long-term agreements and certain retail purchase orders for services
and operating needs that can be cancelled with more than 60 days
notice without penalty only through the term of the notice. We included
long-term agreements for services and operating needs that only
can be cancelled in the event of an uncured material breach or with a
penalty through the entire term of the contract. Because of the
uncertainties of seasonal demands and promotional calendar changes,
our best estimate of usage for food, supplies and other operating
needs and services is ratably over either the notice period or the remain-
ing life of the contract, as applicable, unless we had beer information
available at the time related to each contract.
(e) Other long-term obligations include our Non-Qualied Savings Plan
($25,263, with a corresponding long-term asset to fund the liability;
see Note 13 to the Consolidated Financial Statements), Deferred
Compensation Plan ($3,276) and our long-term incentive plans ($8,777).
(f) Our standby leers of credit relate to securing reserved claims under
workers’ compensation insurance and reduce our borrowing
availability under the Revolving Credit Facility.
(g) Consists solely of guarantees associated with lease payments for two
properties. We are not aware of any non-performance under these
arrangements that would result in us having to perform in accordance
with the terms of those guarantees.
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