Cracker Barrel 2014 Annual Report Download - page 25

the current portion of our interest rate swaps partially oset
by higher retail inventory and the timing of payments for
accounts payable and estimated income taxes. 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.
O-Balance Sheet Arrangements
Other than various operating leases, which are disclosed more
fully in “Material Commitments” below and Notes 2 and 9
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 1, 2014, are summarized in the tables below:
Payments due by Year
Contractual Obligations (a) Total 2015 2016-2017 2018-2019 Aer 2019
Term loan (b) $ 187,500 $ 25,000 $ 162,500 — —
Revolving Credit
Facility (b) 212,500 — 212,500 — —
Operating leases (c) 755,649 60,569 92,800 $ 83,518 $ 518,762
Purchase
obligations (d) 97,991 61,985 24,899 11,107 —
Other long-term
obligations (e) 34,308 1,803 5,912 207 26,386
Total contractual
cash obligations $1,287,948 $ 149,357 $ 498,611 $ 94,832 $ 545,148
Amount of Commitment Expirations by Year
Total 2015 2016-2017 2018-2019 Aer 2019
Revolving Credit
Facility (b) $ 500,000 — $ 500,000 — —
Standby leers
of credit (f ) 20,637 $ 1,070 19,567 — —
Guarantees (g) 659 111 235 $ 235 $ 78
Total commitments $ 521,296 $ 1,181 $ 519,802 $ 235 $ 78
(a) At August 1, 2014, 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 $31,391 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. 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, 2018 and
2019. Using projected interest rates, we anticipate having interest
payments of $14,821, $29,042 and $28,080 in 2015, 2016-2017
and 2018-2019, respectively. e projected interest rates 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%. Based
on our outstanding borrowings under our Revolving Credit Facility,
our standby leers of credit at August 1, 2014 and our current unused
commitment fee as dened in the Credit Facility, our unused
commitment fees in 2015 and 2016 would be $668 and $629;
however, the actual amount will dier based on actual usage of the
Revolving Credit Facility in 2015 and 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 uncertain-
ties 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 remaining 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
($25,322, with a corresponding long-term asset to fund the liability;
see Note 12 to the Consolidated Financial Statements), Deferred
Compensation Plan ($2,868) and our long-term incentive plans
($6,118).
(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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