Cracker Barrel 2013 Annual Report Download - page 42

stores in the geographic area to evaluate whether the
Company will retain the closed store’s customers at another
store in the same market. Unless considered immaterial, if
the Company determines that it has exited the market, then
the closed store will be classied as a discontinued
operation. e Company closed one store in 2011; this
closed store was not classied as discontinued operations.
e Company did not close any stores in 2013 or 2012.
Net income per share – Basic consolidated net income per
share is computed by dividing consolidated net income
to common shareholders by the weighted average number of
common shares outstanding for the reporting period.
Diluted consolidated net income per share reects the
potential dilution that could occur if securities, options or
other contracts to issue common stock were exercised or
converted into common stock and is based upon the
weighted average number of common and common equiva-
lent shares outstanding during the year. Common equivalent
shares related to stock options, nonvested stock awards and
MSU Grants issued by the Company are calculated using the
treasury stock method. Outstanding employee and director
stock options, nonvested stock awards and MSU Grants
issued by the Company represent the only dilutive eects on
diluted consolidated net income per share. See Note 15 for
additional information regarding net income per share.
Use of estimates – Management of the Company has made
certain estimates and assumptions relating to the reporting
of assets and liabilities and the disclosure of contingent
liabilities at the date of the Consolidated Financial Statements
and the reported amounts of revenues and expenses during
the reporting periods to prepare these Consolidated Financial
Statements in conformity with GAAP. Management believes
that such estimates have been based on reasonable and
supportable assumptions and that the resulting estimates are
reasonable for use in the preparation of the Consolidated
Financial Statements. Actual results, however, could dier
from those estimates.
RECENT ACCOUNTING PRONOUNCEMENTS
ADOPTED
Presentation of Comprehensive Income
In June 2011, the FASB issued amended accounting guidance
which requires companies to present total comprehensive
income and its components and the components of net
income in either a single continuous statement of comprehen-
sive income or in two consecutive statements reporting net
income and comprehensive income. is requirement
eliminates the option to present components of comprehensive
income as part of the statement of changes in shareholders’
equity. is guidance aects only the presentation of
comprehensive income and does not change the components
of comprehensive income. e Company adopted this
accounting guidance on a retrospective basis in the rst quarter
of 2013 by presenting separate but consecutive statements.
e adoption of this accounting guidance did not have an
impact on the Company’s consolidated nancial position or
results of operations.
RECENT ACCOUNTING PRONOUNCEMENTS
NOT YET ADOPTED
Disclosures about Oseing Assets and Liabilities
In December 2011, the FASB issued accounting guidance
which requires companies to disclose information about the
nature of their rights of seto and related arrangements
associated with their nancial instruments and derivative
instruments to enable users of nancial statements to
understand the eect of those arrangements on their nancial
position. Each company will be required to provide both
net and gross information in the notes to its nancial
statements for relevant assets and liabilities that are eligible
for oset. In January 2013, the FASB issued additional
accounting guidance which limits these disclosures to
derivatives, repurchase agreements and securities lending
transactions to the extent that they are oset in the nancial
statements or subject to an enforceable master neing
arrangement or similar agreement. ese disclosure require-
ments are eective for scal years beginning on or aer
40