Cracker Barrel 2015 Annual Report Download - page 36

weighted average number of common and common equiva-
lent sharesoutstanding during the year. Common equivalent
sharesrelated to stock options, nonvestedstock awards and
MSU Grantsissued by the Company arecalculatedusing the
treasury stock method. Outstanding employeeand director
stock options, nonvestedstock awards and MSU Grants
issued by the Companyrepresent the only dilutive eects on
diluted consolidated net income per share.See Note 14 for
additional information regarding net income per share.
Useof estimates– Management of the Companyhas made
certain estimates and assumptions relating to the reporting
of assets and liabilities and the disclosure of contingent
liabilities at the dateof the Consolidated FinancialStatements
andthe reported amounts of revenues and expensesduring 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
FinancialStatements. Actual results, however, could dier
from those estimates.
RECENTACCOUNTING PRONOUNCEMENTS
NOTYET 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 yearsbeginning on or aer
December 15, 2014 and interim periods within those years
on a prospective basis. is accounting guidance is not
expected to havea signicant impacton the Company’s
consolidated nancial position or results of operations upon
adoption in the rstquarterof 2016.
RevenueRecognition
In May2014, 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 receivein exchange for those goodsor services.
e guidance also requires additional disclosures about
the nature, amount, timing and uncertainty of revenue and
cash owsarising from customer contracts. is accounting
guidance is eective for scal yearsbeginning aer
December 15, 2017 and interim periods within those years.
Early application is permied for scal yearsbeginning aer
December 15, 2016. A company mayapply this accounting
guidance either retrospectively or using the cumulative eect
transition method.e Companyis currently evaluating
the impact of adopting this accounting guidance in the rst
quarterof 2019.
Debt IssuanceCosts
In April 2015, the FASB issued accounting guidance which
requires debt issuance costs to be presentedin the balance
sheet as a reduction of the related debt liability rather than as
an asset. is accounting guidance is eective for scal years
beginning aer December 15, 2015, and interim periods
within those years on a retrospective basis. Early application
is permied.Sincethisaccountingguidance doesnot
provide guidance on debt issuance costs related to revolving
debt agreements, this accounting guidance is not expected to
have a signicant impact on the Company’s consolidated
nancial position or results of operations upon adoption in
the rstquarterof 2017.
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