Cracker Barrel 2014 Annual Report Download - page 43

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RECENT ACCOUNTING PRONOUNCEMENTS
NOT YET ADOPTED
Reporting Discontinued Operations and Disclosures
of Disposals of Components of an Entity
In April 2014, the FASB issued accounting guidance which
changes the criteria for disposals to qualify as discontinued
operations and requires new disclosures about disposals
of both discontinued operations and certain other disposals
that do not meet the new denition. is accounting
guidance is eective for scal years beginning on or aer
December 15, 2014 and interim periods within those years
on a prospective basis. e Company is currently evaluating
the impact of adopting this accounting guidance, but it is not
expected to have a signicant impact on the Company’s
consolidated nancial position or results of operations upon
adoption in the rst quarter of 2016.
Revenue Recognition
In May 2014, the FASB issued accounting guidance which
claries the principles for recognizing revenue and provides a
comprehensive model for revenue recognition. Revenue
recognition should depict the transfer of goods or services to
a customer at an amount that reects the consideration it
expects to receive in exchange for those goods or services.
e guidance also requires additional disclosures about the
nature, amount, timing and uncertainty of revenue and cash
ows arising from customer contracts. is accounting
guidance is eective for scal years beginning aer
December 15, 2016 and interim periods within those years.
Early application is not permied. A company may apply this
accounting guidance either retrospectively or using the
cumulative eect transition method. e Company is
currently evaluating the impact of adopting this accounting
guidance in the rst quarter of 2018.
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 measurement of the asset
or liability.
e Company’s assets and liabilities measured at fair value
on a recurring basis at August 1, 2014 were as follows:
Level 1 Level 2 Level 3 Fair Value
Cash equivalents* $ 63,068 $ — $ — $ 63,068
Interest rate swap asset
(see Note 6) — 240 — 240
Deferred compensation
plan assets** 25,322 — — 25,322
Total assets at fair value $ 88,390 $ 240 $ — $ 88,630
Interest rate swap liability
(see Note 6) $ — $ 7,943 $ — $ 7,943
Total liabilities at fair value $ — $ 7,943 $ — $ 7,943
e Company’s assets and liabilities measured at fair value
on a recurring basis at August 2, 2013 were as follows:
Level 1 Level 2 Level 3 Fair Value
Fair Value
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
* 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 12).