Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Oct. 27, 2017 | Nov. 14, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CRACKER BARREL OLD COUNTRY STORE, INC | |
Entity Central Index Key | 1,067,294 | |
Current Fiscal Year End Date | --08-03 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23,994,793 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 27, 2017 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Oct. 27, 2017 | Jul. 28, 2017 | [1] |
Current Assets: | |||
Cash and cash equivalents | $ 120,193 | $ 161,001 | |
Accounts receivable | 18,078 | 18,116 | |
Income taxes receivable | 0 | 4,265 | |
Inventories | 191,481 | 156,367 | |
Prepaid expenses and other current assets | 19,479 | 16,047 | |
Deferred income taxes | 0 | 3,061 | |
Total current assets | 349,231 | 358,857 | |
Property and equipment | 2,118,446 | 2,093,448 | |
Less: Accumulated depreciation and amortization of capital leases | 1,012,665 | 995,351 | |
Property and equipment - net | 1,105,781 | 1,098,097 | |
Other assets | 66,920 | 64,988 | |
Total assets | 1,521,932 | 1,521,942 | |
Current Liabilities: | |||
Accounts payable | 130,127 | 118,395 | |
Income taxes payable | 15,579 | 0 | |
Other current liabilities | 230,080 | 257,433 | |
Total current liabilities | 375,786 | 375,828 | |
Long-term debt | 400,000 | 400,000 | |
Long-term interest rate swap liability | 4,077 | 6,833 | |
Other long-term obligations | 131,250 | 129,353 | |
Deferred income taxes | 63,117 | 65,421 | |
Commitments and Contingencies (Note 11) | |||
Shareholders' Equity: | |||
Preferred stock - 100,000,000 shares of $.01 par value authorized; 300,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued | 0 | 0 | |
Common stock - 400,000,000 shares of $.01 par value authorized; 23,994,793 shares issued and outstanding at October 27, 2017, and 24,055,682 shares issued and outstanding at July 28, 2017 | 240 | 241 | |
Additional paid-in capital | 39,540 | 55,659 | |
Accumulated other comprehensive loss | (2,342) | (4,229) | |
Retained earnings | 510,264 | 492,836 | |
Total shareholders' equity | 547,702 | 544,507 | |
Total liabilities and shareholders' equity | $ 1,521,932 | $ 1,521,942 | |
[1] | This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of July 28, 2017, as filed with the Securities and Exchange Commission in the Company's Annual Report on Form 10-K for the fiscal year ended July 28, 2017. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Oct. 27, 2017 | Jul. 28, 2017 |
Shareholders' Equity: | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 23,994,793 | 24,055,682 |
Common stock, shares outstanding (in shares) | 23,994,793 | 24,055,682 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' Equity: | ||
Preferred stock, shares authorized (in shares) | 300,000 | 300,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 27, 2017 | Oct. 28, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract] | ||
Total revenue | $ 710,368 | $ 709,971 |
Cost of goods sold (exclusive of depreciation and rent) | 210,749 | 213,109 |
Labor and other related expenses | 248,068 | 249,104 |
Other store operating expenses | 143,820 | 137,926 |
Store operating income | 107,731 | 109,832 |
General and administrative expenses | 36,893 | 34,088 |
Operating income | 70,838 | 75,744 |
Interest expense | 3,618 | 3,676 |
Income before income taxes | 67,220 | 72,068 |
Provision for income taxes | 20,840 | 23,713 |
Net income | $ 46,380 | $ 48,355 |
Net income per share: | ||
Basic (in dollars per share) | $ 1.93 | $ 2.01 |
Diluted (in dollars per share) | $ 1.92 | $ 2.01 |
Weighted average shares: | ||
Basic (in shares) | 24,035,202 | 24,001,708 |
Diluted (in shares) | 24,105,187 | 24,099,013 |
Dividends declared per share (in dollars per share) | $ 1.20 | $ 1.15 |
Dividends paid per share (in dollars per share) | $ 1.20 | $ 1.15 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 27, 2017 | Oct. 28, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||
Net income | $ 46,380 | $ 48,355 |
Other comprehensive income before income tax expense: | ||
Change in fair value of interest rate swaps | 3,055 | 6,106 |
Income tax expense | 1,168 | 2,335 |
Other comprehensive income, net of tax | 1,887 | 3,771 |
Comprehensive income | $ 48,267 | $ 52,126 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 27, 2017 | Oct. 28, 2016 | ||
Cash flows from operating activities: | |||
Net income | $ 46,380 | $ 48,355 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 21,631 | 20,534 | |
Loss on disposition of property and equipment | 1,204 | 1,107 | |
Share-based compensation | 2,035 | 1,425 | |
Excess tax benefit from share-based compensation | 0 | (1,062) | |
Changes in assets and liabilities: | |||
Inventories | (35,114) | (34,913) | |
Other current assets | 871 | 13,278 | |
Accounts payable | 11,732 | (13,479) | |
Other current liabilities | (10,169) | 1,186 | |
Other long-term assets and liabilities | (293) | (1,493) | |
Net cash provided by operating activities | 38,277 | 34,938 | |
Cash flows from investing activities: | |||
Purchase of property and equipment | (30,613) | (26,410) | |
Proceeds from insurance recoveries of property and equipment | 86 | 74 | |
Proceeds from sale of property and equipment | 110 | 265 | |
Net cash used in investing activities | (30,417) | (26,071) | |
Cash flows from financing activities: | |||
(Taxes withheld) and proceeds from issuance of share-based compensation awards, net | (3,383) | (6,138) | |
Purchases and retirement of common stock | (14,772) | 0 | |
Dividends on common stock | (30,513) | (29,649) | |
Excess tax benefit from share-based compensation | 0 | 1,062 | |
Net cash used in financing activities | (48,668) | (34,725) | |
Net decrease in cash and cash equivalents | (40,808) | (25,858) | |
Cash and cash equivalents, beginning of period | 161,001 | [1] | 150,966 |
Cash and cash equivalents, end of period | 120,193 | 125,108 | |
Cash paid during the period for: | |||
Interest, net of amounts capitalized | 3,340 | 3,160 | |
Income taxes | 194 | 784 | |
Supplemental schedule of non-cash investing and financing activities: | |||
Capital expenditures accrued in accounts payable | 6,356 | 3,252 | |
Change in fair value of interest rate swaps | 3,055 | 6,106 | |
Change in deferred tax asset for interest rate swaps | (1,168) | (2,335) | |
Dividends declared but not yet paid | $ 29,735 | $ 28,789 | |
[1] | This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of July 28, 2017, as filed with the Securities and Exchange Commission in the Company's Annual Report on Form 10-K for the fiscal year ended July 28, 2017. |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 3 Months Ended |
Oct. 27, 2017 | |
Condensed Consolidated Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | 1. Condensed Consolidated Financial Statements Cracker Barrel Old Country Store, Inc. and its affiliates (collectively, in these Notes to Condensed Consolidated Financial Statements, the “Company”) are principally engaged in the operation and development in the United States of the Cracker Barrel Old Country Store® (“Cracker Barrel”) concept. The condensed consolidated balance sheets at October 27, 2017 and July 28, 2017 and the related condensed consolidated statements of income, comprehensive income and cash flows for the quarters ended October 27, 2017 and October 28, 2016, respectively, have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the Securities and Exchange Commission without audit. In the opinion of management, all adjustments (consisting of normal and recurring items) necessary for a fair presentation of such condensed consolidated financial statements have been made. The results of operations for any interim period are not necessarily indicative of results for a full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended July 28, 2017 (the “2017 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as described in the 2017 Form 10-K. References to a year in these Notes to Condensed Consolidated Financial Statements are to the Company’s fiscal year unless otherwise noted. Recent Accounting Pronouncements Adopted Inventory In July 2015, the Financial Accounting Standards Board (“FASB”) issued accounting guidance which requires companies to measure certain inventory at the lower of cost and net realizable value. This accounting guidance does not apply to inventories measured by using either the last-in, first-out method or the retail inventory method. This accounting guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years on a prospective basis. The adoption of this accounting guidance in the first quarter of 2018 did not have a significant impact on the Company’s consolidated financial position or results of operations. Deferred Taxes In November 2015, in order to simplify the presentation of deferred income taxes, the FASB issued accounting guidance which requires deferred tax liabilities and assets to be classified as noncurrent in the balance sheet. This accounting guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. This accounting guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Other than the revised balance sheet presentation of deferred tax liabilities and assets, the adoption of this accounting guidance on a prospective basis in the first quarter of 2018 did not have a significant impact on the Company’s consolidated financial position or results of operations. Prior periods were not retrospectively adjusted for the adoption of this accounting guidance. Share-Based Payments In March 2016, the FASB issued accounting guidance in order to simplify certain aspects of the accounting and presentation of share-based payments, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This accounting guidance is effective for fiscal periods beginning after December 15, 2016, and interim periods within those fiscal years. This guidance may be applied either on a prospective basis, retrospective basis or a modified retrospective basis depending on the specific accounting topic covered in the accounting guidance. The Company adopted this accounting guidance in the first quarter of 2018. The impact of recognizing excess tax benefits of $759 as a reduction to the provision for income taxes on a prospective basis resulted in a benefit of $0.03 per diluted share in the first quarter of 2018. The Company elected to apply the presentation of excess tax benefits on the statement of cash flows on a prospective basis; prior periods were not retrospectively adjusted. The Company also elected to continue estimating forfeitures of share-based awards. Recent Accounting Pronouncements Not Yet Adopted Revenue Recognition In May 2014, the FASB issued accounting guidance which clarifies 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 reflects the consideration a company expects to receive in exchange for those goods or services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This accounting guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted for fiscal years beginning after December 15, 2016. A company may apply this accounting guidance either retrospectively or by using the cumulative effect transition method. The Company is currently evaluating the impact of adopting this accounting guidance in the first quarter of 2019. Leases In February 2016, the FASB issued accounting guidance which requires the recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. The accounting guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years on a modified retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of adopting this accounting guidance in the first quarter of 2020. Recognition of Breakage for Certain Prepaid Stored-Value Products In March 2016, in order to address diversity in practice related to the derecognition of a prepaid stored-value product liability, the FASB issued accounting guidance requiring breakage for prepaid stored-value product liabilities to be accounted for consistent with the breakage guidance in the revenue recognition standard (see “Revenue Recognition” above). This accounting guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This accounting guidance may be applied either on a modified retrospective basis or on a retrospective basis. Early application is permitted. The Company is currently evaluating the impact of adopting this accounting guidance in the first quarter of 2019. Modification of Share-Based Payment Awards In May 2017, the FASB issued accounting guidance to provide clarity, reduce the diversity in practice and to simplify the accounting guidance related to a change to the terms or conditions of a share-based payment award. This new standard provides guidance for evaluating which changes to the terms or conditions of a share-based payment award are substantive and require modification accounting to be applied. This accounting guidance is effective for fiscal periods beginning after December 15, 2017, and interim periods within those fiscal years on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of adopting this accounting guidance in the first quarter of 2019. Accounting for Hedging Activities In August 2017, the FASB issued accounting guidance which amends the recognition, presentation and disclosure requirements of hedge accounting in order to better portray the economics of entities’ risk management activities, increase transparency and understandability of hedging relationships and simplify the application of hedge accounting. This accounting guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early application is permitted. The recognition requirements for cash flow and net investment hedges existing at the date of adoption will be applied using a cumulative-effect adjustment to retained earnings. The amended presentation and disclosure requirements will be applied on a prospective basis. The Company is currently evaluating the impact of adopting this accounting guidance in the first quarter of 2020. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Oct. 27, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 2. Fair Value Measurements The Company’s assets and liabilities measured at fair value on a recurring basis at October 27, 2017 were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Cash equivalents* $ 40,446 $ -- $ -- $ 40,446 Interest rate swap asset (see Note 5) -- 287 -- 287 Deferred compensation plan assets** 33,045 -- -- 33,045 Total assets at fair value $ 73,491 $ 287 $ -- $ 73,778 Interest rate swap liability (see Note 5) $ -- $ 4,080 $ -- $ 4,080 Total liabilities at fair value $ -- $ 4,080 $ -- $ 4,080 The Company’s assets and liabilities measured at fair value on a recurring basis at July 28, 2017 were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Cash equivalents* $ 82,524 $ -- $ -- $ 82,524 Interest rate swap asset (see Note 5) -- 32 -- 32 Deferred compensation plan assets** 31,196 -- -- 31,196 Total assets at fair value $ 113,720 $ 32 $ -- $ 113,752 Interest rate swap liability (see Note 5) $ -- $ 6,880 $ -- $ 6,880 Total liabilities at fair value $ -- $ 6,880 $ -- $ 6,880 *Consists of money market fund investments. **Represents plan assets invested in mutual funds established under a rabbi trust for the Company’s non-qualified savings plan and is included in the Condensed Consolidated Balance Sheets as other assets. The Company’s money market fund investments and deferred compensation plan assets are measured at fair value using quoted market prices. The fair values of the Company’s interest rate swap assets and liabilities are determined based on the present value of expected future cash flows. Since the values of the Company’s interest rate swaps are based on the LIBOR forward curve, which is observable at commonly quoted intervals for the full terms of the swaps, it is considered a Level 2 input. Non-performance risk is reflected in determining the fair value of the interest rate swaps by using the Company’s credit spread less the risk-free interest rate, both of which are observable at commonly quoted intervals for the terms of the swaps. Thus, the adjustment for non-performance risk is also considered a Level 2 input. The fair values of the Company’s accounts receivable and accounts payable approximate their carrying amounts because of their short duration. The fair value of the Company’s variable rate debt, based on quoted market prices, which are considered Level 1 inputs, approximates its carrying amount at October 27, 2017 and July 28, 2017. |
Inventories
Inventories | 3 Months Ended |
Oct. 27, 2017 | |
Inventories [Abstract] | |
Inventories | 3. Inventories Inventories were comprised of the following at: October 27, 2017 July 28, 2017 Retail $ 150,999 $ 119,446 Restaurant 23,304 20,252 Supplies 17,178 16,669 Total $ 191,481 $ 156,367 |
Debt
Debt | 3 Months Ended |
Oct. 27, 2017 | |
Debt [Abstract] | |
Debt | 4. Debt The Company has a $750,000 revolving credit facility (the “Revolving Credit Facility”), which expires on January 8, 2020. At both October 27, 2017 and July 28, 2017, the Company had $400,000 of outstanding borrowings under the Revolving Credit Facility. At October 27, 2017, the Company had $9,455 of standby letters of credit, which reduce the Company’s borrowing availability under the Revolving Credit Facility (see Note 11 for more information on the Company’s standby letters of credit). At October 27, 2017, the Company had $340,545 in borrowing availability under the Revolving Credit Facility. In accordance with the Revolving Credit Facility, outstanding borrowings bear interest, at the Company’s election, either at LIBOR or prime plus a percentage point spread based on certain specified financial ratios under the Revolving Credit Facility. As of October 27, 2017 and October 28, 2016, the Company’s outstanding borrowings were swapped at a weighted average interest rate of 3.21% and 3.10%, respectively, (see Note 5 for information on the Company’s interest rate swaps). The Revolving Credit Facility contains customary financial covenants, which include maintenance of a maximum consolidated total leverage ratio and a minimum consolidated interest coverage ratio. At October 27, 2017, the Company was in compliance with all financial covenants. The Revolving Credit Facility also imposes restrictions on the amount of dividends the Company is permitted to pay and the amount of shares the Company is permitted to repurchase. Under the Revolving Credit Facility, provided there is no default existing and the total of the Company’s availability under the Revolving Credit Facility plus the Company’s cash and cash equivalents on hand is at least $100,000 (the “cash availability”), the Company may declare and pay cash dividends on shares of its common stock and repurchase shares of its common stock (1) in an unlimited amount if, at the time such dividend or repurchase is made, the Company’s consolidated total leverage ratio is 3.00 to 1.00 or less and (2) in an aggregate amount not to exceed $100,000 in any fiscal year if the Company’s consolidated total leverage ratio is greater than 3.00 to 1.00 at the time the dividend or repurchase is made; notwithstanding (1) and (2), so long as immediately after giving effect to the payment of any such dividends, cash availability is at least $100,000, the Company may declare and pay cash dividends on shares of its common stock in an aggregate amount not to exceed in any fiscal year the product of the aggregate amount of dividends declared in the fourth quarter of the immediately preceding fiscal year multiplied by four. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Oct. 27, 2017 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | 5. Derivative Instruments and Hedging Activities The Company has interest rate risk relative to its outstanding borrowings (see Note 4 for information on the Company’s outstanding borrowings). The Company’s policy has been to manage interest cost using a mix of fixed and variable rate debt. To manage this risk in a cost-efficient manner, the Company uses derivative instruments, specifically interest rate swaps. For each of the Company’s interest rate swaps, the Company has agreed to exchange with a counterparty the difference between fixed and variable interest amounts calculated by reference to an agreed-upon notional principal amount. The interest rates on the portion of the Company’s outstanding debt covered by its interest rate swaps are fixed at the rates in the table below plus the Company’s credit spread. The Company’s credit spread at October 27, 2017 was 1.00%. All of the Company’s interest rate swaps are accounted for as cash flow hedges. A summary of the Company’s interest rate swaps at October 27, 2017 is as follows: Trade Date Effective Date Term (in Years) Notional Amount Fixed Rate March 18, 2013 May 3, 2015 3 $ 50,000 1.51 % April 22, 2013 May 3, 2015 3 25,000 1.30 % April 25, 2013 May 3, 2015 3 25,000 1.29 % June 18, 2014 May 3, 2015 4 120,000 2.51 % June 24, 2014 May 3, 2015 4 90,000 2.51 % July 1, 2014 May 5, 2015 4 90,000 2.43 % January 30, 2015 May 3, 2019 2 80,000 2.15 % January 30, 2015 May 3, 2019 2 60,000 2.16 % January 30, 2015 May 4, 2021 3 120,000 2.41 % January 30, 2015 May 3, 2019 2 60,000 2.15 % January 30, 2015 May 4, 2021 3 80,000 2.40 % The notional amount for the interest rate swap entered into on June 18, 2014 increases by $40,000 each May over the four-year term of the interest rate swap until the notional amount reaches $160,000 in May 2018. The notional amounts for the interest rate swaps entered into on June 24, 2014 and July 1, 2014 increase by $30,000 each May over the four-year terms of the interest rate swaps until the notional amounts each reach $120,000 in May 2018. The Company does not hold or use derivative instruments for trading purposes. The Company also does not have any derivatives not designated as hedging instruments and has not designated any non-derivatives as hedging instruments. Companies may elect to offset related assets and liabilities and report the net amount on their financial statements if the right of setoff exists. Under a master netting agreement, the Company has the legal right to offset the amounts owed to the Company against amounts owed by the Company under a derivative instrument that exists between the Company and a counterparty. When the Company is engaged in more than one outstanding derivative transaction with the same counterparty and also has a legally enforceable master netting agreement with that counterparty, its credit risk exposure is based on the net exposure under the master netting agreement. If, on a net basis, the Company owes the counterparty, the Company regards its credit exposure to the counterparty as being zero. The estimated fair values of the Company’s derivative instruments as of October 27, 2017 and July 28, 2017 were as follows: (See Note 3) Balance Sheet Location October 27, 2017 July 28, 2017 Interest rate swaps Prepaid expenses and other current assets $ 42 $ 32 Interest rate swaps Other assets 245 -- Total assets $ 287 $ 32 Interest rate swaps Other current liabilities $ 3 $ 47 Interest rate swaps Long-term interest rate swap liability 4,077 6,833 Total liabilities $ 4,080 $ 6,880 The following table summarizes the offsetting of the Company’s derivative assets in the Condensed Consolidated Balance Sheets at October 27, 2017 and July 28, 2017: Gross Asset Amounts Liability Amount Offset Net Asset Amount Presented in the Balance Sheets (See Note 2) October 27, 2017 July 28, 2017 October 27, 2017 July 28, 2017 October 27, 2017 July 28, 2017 Interest rate swaps $ 292 $ 32 $ (5 ) $ -- $ 287 $ 32 The following table summarizes the offsetting of the Company’s derivative liabilities in the Condensed Consolidated Balance Sheets at October 27, 2017 and July 28, 2017: Gross Liability Amounts Asset Amount Offset Net Liability Amount Presented in the Balance Sheets (See Note 2) October 27, 2017 July 28, 2017 October 27, 2017 July 28, 2017 October 27, 2017 July 28, 2017 Interest rate swaps $ 4,080 $ 6,880 $ -- $ -- $ 4,080 $ 6,880 The estimated fair value of the Company’s interest rate swap assets and liabilities incorporates the Company’s non-performance risk (see Note 2). The adjustment related to the Company’s non-performance risk at October 27, 2017 and July 28, 2017 resulted in reductions of $18 and $103, respectively, in the fair value of the interest rate swap liabilities. The offset to the interest rate swap asset and liabilities is recorded in accumulated other comprehensive loss (“AOCL”), net of the deferred tax asset, and will be reclassified into earnings over the term of the underlying debt. As of October 27, 2017, the estimated pre-tax portion of AOCL that is expected to be reclassified into earnings over the next twelve months is $2,305. Cash flows related to the interest rate swaps are included in interest expense and in operating activities. The following table summarizes the pre-tax effects of the Company’s derivative instruments on AOCL for the three months ended October 27, 2017 and the year ended July 28, 2017: Amount of Income Recognized in AOCL on Derivatives (Effective Portion) Three Months Ended October 27, 2017 Year Ended July 28, 2017 Cash flow hedges: Interest rate swaps $ 3,055 $ 15,402 The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for the quarters ended October 27, 2017 and October 28, 2016: Location of Loss Reclassified from AOCL into Income (Effective Portion) Amount of Loss Reclassified from AOCL into Income (Effective Portion) Quarter Ended October 27, 2017 October 28, 2016 Cash flow hedges: Interest rate swaps Interest expense $ 1,064 $ 1,243 Any portion of the fair value of the swaps determined to be ineffective will be recognized currently in earnings. No ineffectiveness has been recorded in the three-month periods ended October 27, 2017 and October 28, 2016. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Oct. 27, 2017 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 6. Shareholders’ Equity During the three months ended October 27, 2017, the Company issued 39,111 shares of its common stock resulting from the vesting of share-based compensation awards and stock option exercises. Related tax withholding payments on these share-based compensation awards exceeded proceeds received from the exercise of stock options, which resulted in a net reduction to shareholders’ equity of $3,383. During the three months ended October 27, 2017, the Company repurchased 100,000 shares of its common stock in the open market at an aggregate cost of $14,772. During the three months ended October 27, 2017, total share-based compensation expense was $2,035. During the three months ended October 27, 2017, the Company paid regular dividends of $1.20 per share of its common stock and declared a regular dividend of $1.20 per share of its common stock that was paid on November 6, 2017 to shareholders of record on October 13, 2017. The following table summarizes the changes in AOCL, net of tax, related to the Company’s interest rate swaps for the three months ended October 27, 2017 (see Notes 2 and 5): Changes in AOCL AOCL balance at July 28, 2017 $ (4,229 ) Other comprehensive income before reclassifications 2,544 Amounts reclassified from AOCL (657 ) Other comprehensive income, net of tax 1,887 AOCL balance at October 27, 2017 $ (2,342 ) The following table summarizes the amounts reclassified out of AOCL related to the Company’s interest rate swaps for the quarter ended October 27, 2017: Details about AOCL Amount Reclassified from AOCL Affected Line Item in the Condensed Consolidated Statement of Income Loss on cash flow hedges: Interest rate swaps $ (1,064 ) Interest expense Tax benefit 407 Provision for income taxes $ (657 ) Net of tax |
Seasonality
Seasonality | 3 Months Ended |
Oct. 27, 2017 | |
Seasonality [Abstract] | |
Seasonality | 7. Seasonality Historically, the net income of the Company has been lower in the first and third quarters and higher in the second and fourth quarters. Management attributes these variations to the holiday shopping season and the summer vacation and travel season. The Company's retail sales, which are made substantially to the Company’s restaurant customers, historically have been highest in the Company's second quarter, which includes the holiday shopping season. Historically, interstate tourist traffic and the propensity to dine out have been higher during the summer months, thereby contributing to higher profits in the Company’s fourth quarter. The Company generally opens additional new locations throughout the year. Therefore, the results of operations for any interim period cannot be considered indicative of the operating results for an entire year. |
Segment Information
Segment Information | 3 Months Ended |
Oct. 27, 2017 | |
Segment Information [Abstract] | |
Segment Information | 8. Segment Information Cracker Barrel stores represent a single, integrated operation with two related and substantially integrated product lines. The operating expenses of the restaurant and retail product lines of a Cracker Barrel store are shared and are indistinguishable in many respects. Accordingly, the Company currently manages its business on the basis of one reportable operating segment. All of the Company’s operations are located within the United States. Total revenue was comprised of the following for the specified periods: Quarter Ended October 27, 2017 October 28, 2016 Revenue: Restaurant $ 578,237 $ 573,677 Retail 132,131 136,294 Total revenue $ 710,368 $ 709,971 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Oct. 27, 2017 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 9. Share-Based Compensation Share-based compensation is recorded in general and administrative expenses in the accompanying Condensed Consolidated Statements of Income. Total share-based compensation was comprised of the following for the specified periods: Quarter Ended October 27, 2017 October 28, 2016 Nonvested stock awards and units $ 1,792 $ 983 Performance-based market stock units (“MSU Grants”) 243 442 $ 2,035 $ 1,425 |
Net Income Per Share and Weight
Net Income Per Share and Weighted Average Shares | 3 Months Ended |
Oct. 27, 2017 | |
Net Income Per Share and Weighted Average Shares [Abstract] | |
Net Income Per Share and Weighted Average Shares | 10. Net Income Per Share and Weighted Average Shares Basic consolidated net income per share is computed by dividing consolidated net income available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted consolidated net income per share reflects the potential dilution that could occur if securities, options or other contracts to issue shares of common stock were exercised or converted into shares of common stock and is based upon the weighted average number of shares of common stock and common equivalent shares outstanding during the reporting period. Common equivalent shares related to stock options, nonvested stock awards and units and MSU Grants issued by the Company are calculated using the treasury stock method. The outstanding stock options, nonvested stock awards and units and MSU Grants issued by the Company represent the only dilutive effects on diluted consolidated net income per share. The following table reconciles the components of diluted earnings per share computations: Quarter Ended October 27, 2017 October 28, 2016 Net income per share numerator $ 46,380 $ 48,355 Net income per share denominator: Weighted average shares 24,035,202 24,001,708 Add potential dilution: Stock options, nonvested stock awards and units and MSU Grants 69,985 97,305 Diluted weighted average shares 24,105,187 24,099,013 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Oct. 27, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies The Company and its subsidiaries are party to various legal and regulatory proceedings and claims incidental to their business in the ordinary course. In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect the Company’s consolidated results of operations or financial position. Related to its workers’ compensation insurance coverage, the Company is contingently liable pursuant to standby letters of credit as credit guarantees to certain insurers. As of October 27, 2017, the Company had $9,455 of standby letters of credit related to securing reserved claims under workers’ compensation insurance. All standby letters of credit are renewable annually and reduce the Company’s borrowing availability under its Revolving Credit Facility (see Note 4). At October 27, 2017, the Company is secondarily liable for lease payments associated with two properties occupied by a third party. The Company is not aware of any non-performance under these lease arrangements that would result in the Company having to perform in accordance with the terms of these guarantees; and therefore, no provision has been recorded in the Condensed Consolidated Balance Sheets for amounts to be paid in case of non-performance by the primary obligor under such lease arrangements. The Company enters into certain indemnification agreements in favor of third parties in the ordinary course of business. The Company believes that the probability of incurring an actual liability under such indemnification agreements is sufficiently remote that no such liability has been recorded in the Condensed Consolidated Balance Sheet as of October 27, 2017. |
Condensed Consolidated Financ18
Condensed Consolidated Financial Statements (Policies) | 3 Months Ended |
Oct. 27, 2017 | |
Condensed Consolidated Financial Statements [Abstract] | |
Recent Accounting Pronouncements Adopted and Not Yet Adopted | Recent Accounting Pronouncements Adopted Inventory In July 2015, the Financial Accounting Standards Board (“FASB”) issued accounting guidance which requires companies to measure certain inventory at the lower of cost and net realizable value. This accounting guidance does not apply to inventories measured by using either the last-in, first-out method or the retail inventory method. This accounting guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years on a prospective basis. The adoption of this accounting guidance in the first quarter of 2018 did not have a significant impact on the Company’s consolidated financial position or results of operations. Deferred Taxes In November 2015, in order to simplify the presentation of deferred income taxes, the FASB issued accounting guidance which requires deferred tax liabilities and assets to be classified as noncurrent in the balance sheet. This accounting guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. This accounting guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Other than the revised balance sheet presentation of deferred tax liabilities and assets, the adoption of this accounting guidance on a prospective basis in the first quarter of 2018 did not have a significant impact on the Company’s consolidated financial position or results of operations. Prior periods were not retrospectively adjusted for the adoption of this accounting guidance. Share-Based Payments In March 2016, the FASB issued accounting guidance in order to simplify certain aspects of the accounting and presentation of share-based payments, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This accounting guidance is effective for fiscal periods beginning after December 15, 2016, and interim periods within those fiscal years. This guidance may be applied either on a prospective basis, retrospective basis or a modified retrospective basis depending on the specific accounting topic covered in the accounting guidance. The Company adopted this accounting guidance in the first quarter of 2018. The impact of recognizing excess tax benefits of $759 as a reduction to the provision for income taxes on a prospective basis resulted in a benefit of $0.03 per diluted share in the first quarter of 2018. The Company elected to apply the presentation of excess tax benefits on the statement of cash flows on a prospective basis; prior periods were not retrospectively adjusted. The Company also elected to continue estimating forfeitures of share-based awards. Recent Accounting Pronouncements Not Yet Adopted Revenue Recognition In May 2014, the FASB issued accounting guidance which clarifies 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 reflects the consideration a company expects to receive in exchange for those goods or services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This accounting guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted for fiscal years beginning after December 15, 2016. A company may apply this accounting guidance either retrospectively or by using the cumulative effect transition method. The Company is currently evaluating the impact of adopting this accounting guidance in the first quarter of 2019. Leases In February 2016, the FASB issued accounting guidance which requires the recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. The accounting guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years on a modified retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of adopting this accounting guidance in the first quarter of 2020. Recognition of Breakage for Certain Prepaid Stored-Value Products In March 2016, in order to address diversity in practice related to the derecognition of a prepaid stored-value product liability, the FASB issued accounting guidance requiring breakage for prepaid stored-value product liabilities to be accounted for consistent with the breakage guidance in the revenue recognition standard (see “Revenue Recognition” above). This accounting guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This accounting guidance may be applied either on a modified retrospective basis or on a retrospective basis. Early application is permitted. The Company is currently evaluating the impact of adopting this accounting guidance in the first quarter of 2019. Modification of Share-Based Payment Awards In May 2017, the FASB issued accounting guidance to provide clarity, reduce the diversity in practice and to simplify the accounting guidance related to a change to the terms or conditions of a share-based payment award. This new standard provides guidance for evaluating which changes to the terms or conditions of a share-based payment award are substantive and require modification accounting to be applied. This accounting guidance is effective for fiscal periods beginning after December 15, 2017, and interim periods within those fiscal years on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of adopting this accounting guidance in the first quarter of 2019. Accounting for Hedging Activities In August 2017, the FASB issued accounting guidance which amends the recognition, presentation and disclosure requirements of hedge accounting in order to better portray the economics of entities’ risk management activities, increase transparency and understandability of hedging relationships and simplify the application of hedge accounting. This accounting guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early application is permitted. The recognition requirements for cash flow and net investment hedges existing at the date of adoption will be applied using a cumulative-effect adjustment to retained earnings. The amended presentation and disclosure requirements will be applied on a prospective basis. The Company is currently evaluating the impact of adopting this accounting guidance in the first quarter of 2020. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Oct. 27, 2017 | |
Fair Value Measurements [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis at October 27, 2017 were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Cash equivalents* $ 40,446 $ -- $ -- $ 40,446 Interest rate swap asset (see Note 5) -- 287 -- 287 Deferred compensation plan assets** 33,045 -- -- 33,045 Total assets at fair value $ 73,491 $ 287 $ -- $ 73,778 Interest rate swap liability (see Note 5) $ -- $ 4,080 $ -- $ 4,080 Total liabilities at fair value $ -- $ 4,080 $ -- $ 4,080 The Company’s assets and liabilities measured at fair value on a recurring basis at July 28, 2017 were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Cash equivalents* $ 82,524 $ -- $ -- $ 82,524 Interest rate swap asset (see Note 5) -- 32 -- 32 Deferred compensation plan assets** 31,196 -- -- 31,196 Total assets at fair value $ 113,720 $ 32 $ -- $ 113,752 Interest rate swap liability (see Note 5) $ -- $ 6,880 $ -- $ 6,880 Total liabilities at fair value $ -- $ 6,880 $ -- $ 6,880 *Consists of money market fund investments. **Represents plan assets invested in mutual funds established under a rabbi trust for the Company’s non-qualified savings plan and is included in the Condensed Consolidated Balance Sheets as other assets. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Oct. 27, 2017 | |
Inventories [Abstract] | |
Inventories | Inventories were comprised of the following at: October 27, 2017 July 28, 2017 Retail $ 150,999 $ 119,446 Restaurant 23,304 20,252 Supplies 17,178 16,669 Total $ 191,481 $ 156,367 |
Derivative Instruments and He21
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Oct. 27, 2017 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Summary of Interest Rate Swaps | A summary of the Company’s interest rate swaps at October 27, 2017 is as follows: Trade Date Effective Date Term (in Years) Notional Amount Fixed Rate March 18, 2013 May 3, 2015 3 $ 50,000 1.51 % April 22, 2013 May 3, 2015 3 25,000 1.30 % April 25, 2013 May 3, 2015 3 25,000 1.29 % June 18, 2014 May 3, 2015 4 120,000 2.51 % June 24, 2014 May 3, 2015 4 90,000 2.51 % July 1, 2014 May 5, 2015 4 90,000 2.43 % January 30, 2015 May 3, 2019 2 80,000 2.15 % January 30, 2015 May 3, 2019 2 60,000 2.16 % January 30, 2015 May 4, 2021 3 120,000 2.41 % January 30, 2015 May 3, 2019 2 60,000 2.15 % January 30, 2015 May 4, 2021 3 80,000 2.40 % |
Schedule of Estimated Fair Value of Derivative Instruments | The estimated fair values of the Company’s derivative instruments as of October 27, 2017 and July 28, 2017 were as follows: (See Note 3) Balance Sheet Location October 27, 2017 July 28, 2017 Interest rate swaps Prepaid expenses and other current assets $ 42 $ 32 Interest rate swaps Other assets 245 -- Total assets $ 287 $ 32 Interest rate swaps Other current liabilities $ 3 $ 47 Interest rate swaps Long-term interest rate swap liability 4,077 6,833 Total liabilities $ 4,080 $ 6,880 |
Offsetting Assets | The following table summarizes the offsetting of the Company’s derivative assets in the Condensed Consolidated Balance Sheets at October 27, 2017 and July 28, 2017: Gross Asset Amounts Liability Amount Offset Net Asset Amount Presented in the Balance Sheets (See Note 2) October 27, 2017 July 28, 2017 October 27, 2017 July 28, 2017 October 27, 2017 July 28, 2017 Interest rate swaps $ 292 $ 32 $ (5 ) $ -- $ 287 $ 32 |
Offsetting Liabilities | The following table summarizes the offsetting of the Company’s derivative liabilities in the Condensed Consolidated Balance Sheets at October 27, 2017 and July 28, 2017: Gross Liability Amounts Asset Amount Offset Net Liability Amount Presented in the Balance Sheets (See Note 2) October 27, 2017 July 28, 2017 October 27, 2017 July 28, 2017 October 27, 2017 July 28, 2017 Interest rate swaps $ 4,080 $ 6,880 $ -- $ -- $ 4,080 $ 6,880 |
Schedule of Pre-tax Effects of Derivative Instruments on Income and AOCL | The following table summarizes the pre-tax effects of the Company’s derivative instruments on AOCL for the three months ended October 27, 2017 and the year ended July 28, 2017: Amount of Income Recognized in AOCL on Derivatives (Effective Portion) Three Months Ended October 27, 2017 Year Ended July 28, 2017 Cash flow hedges: Interest rate swaps $ 3,055 $ 15,402 The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for the quarters ended October 27, 2017 and October 28, 2016: Location of Loss Reclassified from AOCL into Income (Effective Portion) Amount of Loss Reclassified from AOCL into Income (Effective Portion) Quarter Ended October 27, 2017 October 28, 2016 Cash flow hedges: Interest rate swaps Interest expense $ 1,064 $ 1,243 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Oct. 27, 2017 | |
Shareholders' Equity [Abstract] | |
Changes in AOCL, Net of Tax, Related to Interest Rate Swaps | The following table summarizes the changes in AOCL, net of tax, related to the Company’s interest rate swaps for the three months ended October 27, 2017 (see Notes 2 and 5): Changes in AOCL AOCL balance at July 28, 2017 $ (4,229 ) Other comprehensive income before reclassifications 2,544 Amounts reclassified from AOCL (657 ) Other comprehensive income, net of tax 1,887 AOCL balance at October 27, 2017 $ (2,342 ) |
Amounts Reclassified Out of AOCL Related to Interest Rate Swaps | The following table summarizes the amounts reclassified out of AOCL related to the Company’s interest rate swaps for the quarter ended October 27, 2017: Details about AOCL Amount Reclassified from AOCL Affected Line Item in the Condensed Consolidated Statement of Income Loss on cash flow hedges: Interest rate swaps $ (1,064 ) Interest expense Tax benefit 407 Provision for income taxes $ (657 ) Net of tax |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Oct. 27, 2017 | |
Segment Information [Abstract] | |
Composition of Total Revenue | Total revenue was comprised of the following for the specified periods: Quarter Ended October 27, 2017 October 28, 2016 Revenue: Restaurant $ 578,237 $ 573,677 Retail 132,131 136,294 Total revenue $ 710,368 $ 709,971 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Oct. 27, 2017 | |
Share-Based Compensation [Abstract] | |
Components of Share-based Compensation | Total share-based compensation was comprised of the following for the specified periods: Quarter Ended October 27, 2017 October 28, 2016 Nonvested stock awards and units $ 1,792 $ 983 Performance-based market stock units (“MSU Grants”) 243 442 $ 2,035 $ 1,425 |
Net Income Per Share and Weig25
Net Income Per Share and Weighted Average Shares (Tables) | 3 Months Ended |
Oct. 27, 2017 | |
Net Income Per Share and Weighted Average Shares [Abstract] | |
Reconciliation of Components of Diluted Earnings per Share Computations | The following table reconciles the components of diluted earnings per share computations: Quarter Ended October 27, 2017 October 28, 2016 Net income per share numerator $ 46,380 $ 48,355 Net income per share denominator: Weighted average shares 24,035,202 24,001,708 Add potential dilution: Stock options, nonvested stock awards and units and MSU Grants 69,985 97,305 Diluted weighted average shares 24,105,187 24,099,013 |
Condensed Consolidated Financ26
Condensed Consolidated Financial Statements (Details) - Accounting Standards Update 2016-09 [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Oct. 27, 2017USD ($)$ / shares | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Impact of recognizing excess tax benefits | $ | $ 759 |
Impact of recognizing excess tax benefits per diluted share (in dollars per share) | $ / shares | $ 0.03 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Oct. 27, 2017 | Jul. 28, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | $ 40,446 | $ 82,524 |
Interest rate swap asset (see Note 5) | 287 | 32 | |
Deferred compensation plan assets | [2] | 33,045 | 31,196 |
Total assets at fair value | 73,778 | 113,752 | |
Interest rate swap liability (see Note 5) | 4,080 | 6,880 | |
Total liabilities at fair value | 4,080 | 6,880 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 40,446 | 82,524 |
Interest rate swap asset (see Note 5) | 0 | 0 | |
Deferred compensation plan assets | [2] | 33,045 | 31,196 |
Total assets at fair value | 73,491 | 113,720 | |
Interest rate swap liability (see Note 5) | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 0 | 0 |
Interest rate swap asset (see Note 5) | 287 | 32 | |
Deferred compensation plan assets | [2] | 0 | 0 |
Total assets at fair value | 287 | 32 | |
Interest rate swap liability (see Note 5) | 4,080 | 6,880 | |
Total liabilities at fair value | 4,080 | 6,880 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 0 | 0 |
Interest rate swap asset (see Note 5) | 0 | 0 | |
Deferred compensation plan assets | [2] | 0 | 0 |
Total assets at fair value | 0 | 0 | |
Interest rate swap liability (see Note 5) | 0 | 0 | |
Total liabilities at fair value | $ 0 | $ 0 | |
[1] | Consists of money market fund investments. | ||
[2] | Represents plan assets invested in mutual funds established under a rabbi trust for the Company's non-qualified savings plan and is included in the Condensed Consolidated Balance Sheets as other assets. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Oct. 27, 2017 | Jul. 28, 2017 | |
Inventories [Abstract] | |||
Retail | $ 150,999 | $ 119,446 | |
Restaurant | 23,304 | 20,252 | |
Supplies | 17,178 | 16,669 | |
Total | $ 191,481 | $ 156,367 | [1] |
[1] | This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of July 28, 2017, as filed with the Securities and Exchange Commission in the Company's Annual Report on Form 10-K for the fiscal year ended July 28, 2017. |
Debt (Details)
Debt (Details) - Revolving Credit Facility [Member] $ in Thousands | 3 Months Ended | ||
Oct. 27, 2017USD ($) | Jul. 28, 2017USD ($) | Oct. 28, 2016 | |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 750,000 | ||
Line of credit facility, expiration date | Jan. 8, 2020 | ||
Outstanding borrowings | $ 400,000 | $ 400,000 | |
Amount of standby letters of credit | 9,455 | ||
Current borrowing capacity | $ 340,545 | ||
Weighted average interest rates of swapped debt | 3.21% | 3.10% | |
Restrictions on dividends payable | Under the Revolving Credit Facility, provided there is no default existing and the total of the Company’s availability under the Revolving Credit Facility plus the Company’s cash and cash equivalents on hand is at least $100,000 (the “cash availability”), the Company may declare and pay cash dividends on shares of its common stock and repurchase shares of its common stock (1) in an unlimited amount if, at the time such dividend or repurchase is made, the Company’s consolidated total leverage ratio is 3.00 to 1.00 or less and (2) in an aggregate amount not to exceed $100,000 in any fiscal year if the Company’s consolidated total leverage ratio is greater than 3.00 to 1.00 at the time the dividend or repurchase is made; notwithstanding (1) and (2), so long as immediately after giving effect to the payment of any such dividends, cash availability is at least $100,000, the Company may declare and pay cash dividends on shares of its common stock in an aggregate amount not to exceed in any fiscal year the product of the aggregate amount of dividends declared in the fourth quarter of the immediately preceding fiscal year multiplied by four. | ||
Liquidity requirements | $ 100,000 | ||
Dividends threshold | $ 100,000 | ||
Leverage ratio, maximum | 3 | ||
Multiplier used in calculating aggregate amount of cash dividends on shares of common stock in any fiscal year | 4 |
Derivative Instruments and He30
Derivative Instruments and Hedging Activities (Details) $ in Thousands | 3 Months Ended |
Oct. 27, 2017USD ($) | |
Derivative [Line Items] | |
Company's credit spread | 1.00% |
Interest Rate Swap March 18, 2013 [Member] | |
Derivative [Line Items] | |
Trade date | Mar. 18, 2013 |
Effective date | May 3, 2015 |
Term | 3 years |
Notional amount | $ 50,000 |
Fixed rate | 1.51% |
Interest Rate Swap April 22, 2013 [Member] | |
Derivative [Line Items] | |
Trade date | Apr. 22, 2013 |
Effective date | May 3, 2015 |
Term | 3 years |
Notional amount | $ 25,000 |
Fixed rate | 1.30% |
Interest Rate Swap April 25, 2013 [Member] | |
Derivative [Line Items] | |
Trade date | Apr. 25, 2013 |
Effective date | May 3, 2015 |
Term | 3 years |
Notional amount | $ 25,000 |
Fixed rate | 1.29% |
Interest Rate Swap June 18, 2014 [Member] | |
Derivative [Line Items] | |
Trade date | Jun. 18, 2014 |
Effective date | May 3, 2015 |
Term | 4 years |
Notional amount | $ 120,000 |
Fixed rate | 2.51% |
Increase in notional amount each year | $ 40,000 |
Maximum notional amount | $ 160,000 |
Interest Rate Swap June 24, 2014 [Member] | |
Derivative [Line Items] | |
Trade date | Jun. 24, 2014 |
Effective date | May 3, 2015 |
Term | 4 years |
Notional amount | $ 90,000 |
Fixed rate | 2.51% |
Increase in notional amount each year | $ 30,000 |
Maximum notional amount | $ 120,000 |
Interest Rate Swap July 1, 2014 [Member] | |
Derivative [Line Items] | |
Trade date | Jul. 1, 2014 |
Effective date | May 5, 2015 |
Term | 4 years |
Notional amount | $ 90,000 |
Fixed rate | 2.43% |
Increase in notional amount each year | $ 30,000 |
Maximum notional amount | $ 120,000 |
Interest Rate Swap One January 30, 2015 [Member] | |
Derivative [Line Items] | |
Trade date | Jan. 30, 2015 |
Effective date | May 3, 2019 |
Term | 2 years |
Notional amount | $ 80,000 |
Fixed rate | 2.15% |
Interest Rate Swap Two January 30, 2015 [Member] | |
Derivative [Line Items] | |
Trade date | Jan. 30, 2015 |
Effective date | May 3, 2019 |
Term | 2 years |
Notional amount | $ 60,000 |
Fixed rate | 2.16% |
Interest Rate Swap Three January 30, 2015 [Member] | |
Derivative [Line Items] | |
Trade date | Jan. 30, 2015 |
Effective date | May 4, 2021 |
Term | 3 years |
Notional amount | $ 120,000 |
Fixed rate | 2.41% |
Interest Rate Swap Four January 30, 2015 [Member] | |
Derivative [Line Items] | |
Trade date | Jan. 30, 2015 |
Effective date | May 3, 2019 |
Term | 2 years |
Notional amount | $ 60,000 |
Fixed rate | 2.15% |
Interest Rate Swap Five January 30, 2015 [Member] | |
Derivative [Line Items] | |
Trade date | Jan. 30, 2015 |
Effective date | May 4, 2021 |
Term | 3 years |
Notional amount | $ 80,000 |
Fixed rate | 2.40% |
Derivative Instruments and He31
Derivative Instruments and Hedging Activities, Estimated Fair Values of Derivative Instruments (Details) - Interest Rate Swaps [Member] - USD ($) $ in Thousands | Oct. 27, 2017 | Jul. 28, 2017 |
Derivatives, Fair Value [Line Items] | ||
Fair value, asset | $ 287 | $ 32 |
Fair value, liability | 4,080 | 6,880 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, asset | 42 | 32 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, asset | 245 | 0 |
Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, liability | 3 | 47 |
Long-term Interest Rate Swap Liability [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, liability | $ 4,077 | $ 6,833 |
Derivative Instruments and He32
Derivative Instruments and Hedging Activities, Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 27, 2017 | Jul. 28, 2017 |
Offsetting of derivative liabilities in condensed consolidated balance sheets [Abstract] | ||
Estimated pre-tax portion of AOCL that is expected to be reclassified into earnings over the next twelve months | $ 2,305 | |
Interest Rate Swaps [Member] | ||
Offsetting of derivative assets in condensed consolidated balance sheets [Abstract] | ||
Gross asset amounts | 292 | $ 32 |
Liability amount offset | (5) | 0 |
Net asset amount presented in the balance sheets | 287 | 32 |
Offsetting of derivative liabilities in condensed consolidated balance sheets [Abstract] | ||
Gross liability amounts | 4,080 | 6,880 |
Asset amount offset | 0 | 0 |
Net liability amount presented in the balance sheets | 4,080 | 6,880 |
Reduction in fair value of interest rate swap assets and liabilities due to adjustment related to non-performance risk | $ 18 | $ 103 |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities, Pre-tax Effects of Derivative Instruments on AOCL and Income (Details) - Interest Rate Swaps [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 27, 2017 | Oct. 28, 2016 | Jul. 28, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of income (loss) recognized in AOCL on derivatives (effective portion) | $ 3,055 | $ 15,402 | |
Ineffectiveness recorded in earnings on interest rate cash flow hedge | 0 | $ 0 | |
Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of loss reclassified from AOCL into income (effective portion) | $ 1,064 | $ 1,243 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 06, 2017 | Oct. 27, 2017 | Oct. 28, 2016 |
Shareholders' Equity [Abstract] | |||
Number of shares issued from vesting of share-based compensation awards and stock option exercises (in shares) | 39,111 | ||
Tax withholding payment net of cash received from issuance of share based compensation awards | $ 3,383 | $ 6,138 | |
Shares of common stock repurchased (in shares) | 100,000 | ||
Cost of shares repurchased | $ 14,772 | ||
Share-based compensation expense | $ 2,035 | $ 1,425 | |
Dividends Payable [Line Items] | |||
Cash dividends paid (in dollars per share) | $ 1.20 | $ 1.15 | |
Cash dividends declared (in dollars per share) | $ 1.20 | $ 1.15 | |
Regular Quarterly Dividend Declared in Q1 [Member] | |||
Dividends Payable [Line Items] | |||
Dividend payment date | Nov. 6, 2017 | ||
Dividend record date | Oct. 13, 2017 | ||
Regular Quarterly Dividend Declared in Q1 [Member] | Subsequent Event [Member] | |||
Dividends Payable [Line Items] | |||
Cash dividends declared (in dollars per share) | $ 1.20 |
Shareholders' Equity, Summary o
Shareholders' Equity, Summary of Changes in AOCL, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 27, 2017 | Oct. 28, 2016 | ||
Changes in AOCL, net of tax, related to interest rate swaps [Roll Forward] | |||
Balance, beginning of period | [1] | $ 544,507 | |
Other comprehensive income before reclassifications | 2,544 | ||
Amounts reclassified from AOCL | (657) | ||
Other comprehensive income, net of tax | 1,887 | $ 3,771 | |
Balance, end of period | 547,702 | ||
Accumulated Other Comprehensive Loss [Member] | |||
Changes in AOCL, net of tax, related to interest rate swaps [Roll Forward] | |||
Balance, beginning of period | (4,229) | ||
Balance, end of period | $ (2,342) | ||
[1] | This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of July 28, 2017, as filed with the Securities and Exchange Commission in the Company's Annual Report on Form 10-K for the fiscal year ended July 28, 2017. |
Shareholders' Equity, Summary36
Shareholders' Equity, Summary of Amounts Reclassified out of AOCL (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 27, 2017 | Oct. 28, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (3,618) | $ (3,676) |
Provision for income taxes | (20,840) | (23,713) |
Net of tax | 46,380 | $ 48,355 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Provision for income taxes | 407 | |
Net of tax | (657) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (1,064) |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Oct. 27, 2017USD ($)LineSegment | Oct. 28, 2016USD ($) | |
Segment Information [Abstract] | ||
Number of product lines | Line | 2 | |
Number of reportable operating segments | Segment | 1 | |
Revenue from External Customer [Line Items] | ||
Revenue | $ 710,368 | $ 709,971 |
Restaurant [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | 578,237 | 573,677 |
Retail [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | $ 132,131 | $ 136,294 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 27, 2017 | Oct. 28, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation | $ 2,035 | $ 1,425 |
Nonvested Stock Awards and Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation | 1,792 | 983 |
Performance-Based Market Stock Units ("MSU Grants") [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation | $ 243 | $ 442 |
Net Income Per Share and Weig39
Net Income Per Share and Weighted Average Shares (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 27, 2017 | Oct. 28, 2016 | |
Net Income Per Share and Weighted Average Shares [Abstract] | ||
Net income per share numerator | $ 46,380 | $ 48,355 |
Net income per share denominator [Abstract] | ||
Weighted average shares (in shares) | 24,035,202 | 24,001,708 |
Add potential dilution [Abstract] | ||
Stock options, nonvested stock awards and units and MSU Grants (in shares) | 69,985 | 97,305 |
Diluted weighted average shares (in shares) | 24,105,187 | 24,099,013 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Oct. 27, 2017USD ($)Property |
Standby Letters of Credit [Member] | Revolving Credit Facility [Member] | |
Loss Contingencies [Line Items] | |
Letters of credit outstanding | $ | $ 9,455 |
Lease Performance Guarantee [Member] | |
Loss Contingencies [Line Items] | |
Number of properties for which the company is secondarily liable for lease payments | Property | 2 |