Cracker Barrel 2014 Annual Report Download - page 46

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e following table summarizes the oseing of the
Company’s derivative assets in the Consolidated Balance
Sheets at August 1, 2014 and August 2, 2013:
Net Asset Amount
Gross Asset Liability Presented in
Amounts Amount Oset the Balance Sheets
August 1, August 2, August 1, August 2, August 1, August 2,
(See Note 3) 2014 2013 2014 2013 2014 2013
Interest rate
swaps $240 $1,159 $ — $(276) $240 $883
e following table summarizes the oseing of the
Company’s derivative liabilities in the Consolidated Balance
Sheets at August 1, 2014 and August 2, 2013:
Net Liability Amount
Gross Liability Asset Presented in
Amounts Amount Oset the Balance Sheets
August 1, August 2, August 1, August 2, August 1, August 2,
(See Note 3) 2014 2013 2014 2013 2014 2013
Interest rate
swaps $8,441 $13,120 $(498) $(1,476) $7,943 $11,644
e estimated fair values of the Company’s interest rate swap
assets and liabilities incorporate the Company’s non-
performance risk. e adjustment related to the Company’s
non-performance risk at August 1, 2014 and August 2,
2013 resulted in reductions of $62 and $123, respectively, in
the total fair value of the interest rate swap asset and liabili-
ties. e oset to the interest rate swap assets and liabilities
is recorded in accumulated other comprehensive loss
(“AOCL”), net of the deferred tax assets, and will be reclassi-
ed into earnings over the term of the underlying debt.
As of August 1, 2014, the estimated pre-tax portion of
AOCL that is expected to be reclassied into earnings over
the next twelve months is $6,014. Cash ows related to
the interest rate swaps are included in interest expense and
in operating activities.
e following table summarizes the pre-tax eects of
the Company’s derivative instruments on AOCL for each of
the three years:
Amount of Income Recognized in
AOCL on Derivatives (Eective Portion)
2014 2013 2012
Cash ow hedges:
Interest rate swaps $ 3,058 $ 23,620 $ 17,223
e following table summarizes the changes in AOCL,
net of tax, related to the Company’s interest rate swaps for
the year ended August 1, 2014:
AOCL balance at August 2, 2013 $ (6,612)
Other comprehensive income before reclassications 6,836
Amounts reclassied from AOCL into earnings (4,957)
Other comprehensive income, net of tax 1,879
AOCL balance at August 1, 2014 $ (4,733)
e following table summarizes the pre-tax eects of the
Company’s derivative instruments on income for each of the
three years:
Location of Loss
Reclassied from Amount of Loss Reclassied from
AOCL into Income AOCL into Income (Eective Portion)
(Eective Portion) 2014 2013 2012
Cash ow hedges:
Interest rate swaps Interest expense $8,068 $20,773 $35,903
e following table summarizes the amounts reclassied
out of AOCL related to the Company’s interest rate swaps for
the year ended August 1, 2014:
Aected Line Item in the
Details about AOCL Consolidated Statement of Income
Loss on cash ow hedges:
Interest rate swaps $ (8,068) Interest expense
Tax benet 3,111 Provision for income taxes
$ (4,957) Net of tax
Any portion of the fair value of the interest rate swaps
determined to be ineective will be recognized currently in
earnings. No ineectiveness has been recorded in 2014,
2013 and 2012.
44