Cracker Barrel 2013 Annual Report Download - page 43

41
January 1, 2013 on a retrospective basis. e Company does
not expect that the adoption of these disclosure requirements
in the rst quarter of 2014 will have a signicant impact
on its consolidated nancial position or results of operations.
Reporting of Amounts Reclassied
Out of Accumulated Other Comprehensive Income
In February 2013, the FASB issued accounting guidance
which requires companies to provide information regarding
the amounts reclassied out of accumulated other compre-
hensive income by component. A company will be required
to present, either on the face of the statement where net
income is presented or in the notes, signicant amounts
reclassied out of accumulated other comprehensive income
by the respective line items of net income but only if the
amount reclassied is required by GAAP to be reclassied to
net income in its entirety in the same reporting period.
For other amounts that are not required under GAAP to be
reclassied in their entirety to net income, a company is
required to cross-reference to other disclosures required
under GAAP that provide additional detail regarding those
amounts. is accounting guidance is eective for scal
years beginning aer December 15, 2012 on a prospective
basis. Since the guidance only aects presentation and
disclosure of amounts reclassied out of accumulated other
comprehensive income, the adoption of this guidance in the
rst quarter of 2014 is not expected to have a signicant
impact on the Company’s consolidated nancial position or
results of operations.
3 FAIR VALUE MEASUREMENTS
Fair value for certain of the Company’s assets and liabilities is
dened as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. In determining
fair value, a three level hierarchy for inputs is used. ese
levels are:
• QuotedPricesinActiveMarketsforIdenticalAssets
(“Level 1”) – quoted prices (unadjusted) for an identical
asset or liability in an active market.
• SignicantOtherObservableInputs(“Level2”)–quoted
prices for a similar asset or liability in an active market
or model-derived valuations in which all signicant inputs
are observable for substantially the full term of the asset
or liability.
• SignicantUnobservableInputs(“Level3”)–
unobservable and signicant to the fair value measure-
ment of the asset or liability.
e Company’s assets and liabilities measured at fair value
on a recurring basis at August 2, 2013 were as follows:
Fair Value
as of August 2,
Level 1 Level 2 Level 3 2013
Cash equivalents* $ 57,767 $ — $ — $ 57,767
Interest rate swap asset
(see Note 6) — 883 — 883
Deferred compensation
plan assets** 25,263 — — 25,263
Total assets at fair value $ 83,030 $ 883 $ — $ 83,913
Interest rate swap liability
(see Note 6) $ — $ 11,644 $ — $ 11,644
Total liabilities at fair value $ — $ 11,644 $ — $ 11,644
e Company’s assets and liabilities measured at fair value on
a recurring basis at August 3, 2012 were as follows:
Fair Value
as of August 3,
Level 1 Level 2 Level 3 2012
Cash equivalents* $ 104,531 $ — $ — $ 104,531
Interest rate swap asset
(see Note 6) — — — —
Deferred compensation
plan assets** 29,443 — — 29,443
Total assets at fair value $ 133,974 $ — $ — $ 133,974
Interest rate swap liability
(see Note 6) $ — $ 34,381 $ — $ 34,381
Total liabilities at fair value $ — $ 34,381 $ — $ 34,381
* Consists of money market fund investments.
**Represents plan assets invested in mutual funds established under a Rabbi
Trust for the Company’s non-qualied savings plan and is included in the
Consolidated Balance Sheets as other assets (see Note 13).
e Company’s money market fund investments and
deferred compensation plan assets are measured at fair value
using quoted market prices. e fair values of the Company’s
interest rate swap asset and liabilities are determined based