Cracker Barrel 2014 Annual Report Download - page 42

contracts to issue common stock were exercised or converted
into common stock and is based upon the weighted average
number of common and common equivalent shares out-
standing 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 14 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
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 is 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 limited 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 requirements are
eective for scal years beginning on or aer January 1, 2013
on a retrospective basis. e adoption of these disclosure
requirements in the rst quarter of 2014 did not have a
signicant impact on the Company’s 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 is 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 did not have a signicant impact on the Company’s
consolidated nancial position or results of operations.
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