Cracker Barrel 2014 Annual Report Download - page 22

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e year-to-year decrease from 2013 to 2014 resulted
primarily from lower interest rates because of the expiration
of our seven-year interest rate swap on May 3, 2013, which
had a xed interest rate of 5.57% plus our credit spread and
lower debt outstanding.
e year-to-year decrease from 2012 to 2013 resulted
primarily from lower debt outstanding and lower interest
rates because of a reduction in our credit spread and the
expiration of our seven-year interest rate swap on May 3,
2013, which had a xed interest rate of 5.57% plus our
credit spread.
Provision for Income Taxes
e following table highlights the provision for income taxes
as a percentage of income before income taxes (“eective tax
rate”) for the past three years:
2014 2013 2012
Eective tax rate 30.8% 29.3% 29.5%
e increase in our eective tax rate from 2013 to 2014
resulted primarily from the expiration of the Work Opportu-
nity Tax Credit (“WOTC”) as of December 31, 2013. e
decrease in our eective tax rate from 2012 to 2013 resulted
primarily from the retroactive extension by Congress of the
WOTC through the end of calendar 2013 partially oset by
the increase in pretax income.
We presently expect our eective tax rate for 2015 to
be between 32% and 33%. is estimate assumes that the
WOTC, which expired on December 31, 2013, is not
renewed. We estimate that the renewal of the WOTC could
reduce our provision for income taxes by $5,000 to $6,000
in 2015.
LIQUIDITY AND CAPITAL RESOURCES
e following table presents a summary of our cash ows for
the last three years:
2014 2013 2012
Net cash provided by operating
activities $ 177,625 $ 208,499 $ 219,822
Net cash used in investing
activities (88,815) (73,406) (79,547)
Net cash used in nancing
activities (91,167) (165,337) (40,587)
Net (decrease) increase in cash
and cash equivalents $ (2,357) $ (30,244) $ 99,688
Our primary sources of liquidity are cash generated from
our operations and our borrowing capacity under our
revolving credit facility. Our internally generated cash, along
with cash on hand at August 2, 2013, was sucient to
nance all of our growth, dividend payments, working capital
needs, share repurchases and other cash payment obligations
in 2014.
We believe that cash at August 1, 2014, along with cash
expected to be generated from our operating activities
and the borrowing capacity under our revolving credit facility
will be sucient to nance our continuing operations,
our continuing expansion plans and our expected dividend
payments for 2015.
Cash Generated from Operations
e decrease in net cash ow provided by operating activities
from 2013 to 2014 reected the timing of payments for
accounts payable and higher retail inventories. Higher retail
inventories at the end of 2014 resulted primarily from the
early receipt of holiday and other merchandise and lower than
anticipated sales in 2014. e decrease in net cash ow
provided by operating activities from 2012 to 2013 reected
higher annual and long-term incentive bonus payments
and related taxes made in 2013 as a result of the prior year’s
performance and the timing of payments for income
taxes partially oset by higher net income and the timing of
payments for interest and accounts payable.
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