Fair Value Measurements |
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Jul. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements |
Fair value for certain of the Company’s assets and liabilities is defined 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. These levels are:
The Company’s assets and liabilities measured at fair value on a recurring basis at July 31, 2026 were as follows:
The Company’s assets and liabilities measured at fair value on a recurring basis at August 01, 2025 were as follows:
*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 Consolidated Balance Sheets as other assets. See Note 11 for additional information regarding the Company’s Non-Qualified Savings Plan. The Company did not have any liabilities measured at fair value on a recurring basis at July 31, 2026 and August 01, 2025. The Company’s money market fund investments are measured at fair value using quoted market prices. The Company’s deferred compensation plan assets are measured based on net asset value per share as a practical expedient to estimate fair value. The fair values of accounts receivable and accounts payable at July 31, 2026 and August 01, 2025, 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 amounts at July 31, 2026 and August 01, 2025. The Company’s financial instruments that are not remeasured at fair value include the 2026 Notes and the 2030 Notes. See Note 4 for additional information regarding the 2026 Notes and the 2030 Notes. The Company estimates the fair value of the 2026 Notes and 2030 Notes through consideration of quoted market prices of similar instruments, classified as Level 2 as described above. The 2026 Notes were repaid in full at maturity during the fourth quarter of 2026. The estimated fair value of the 2026 Notes was $144,075 as of August 01, 2025. The estimated fair value of the 2030 Notes was $365,700 and $374,246, respectively, as of July 31, 2026 and August 01, 2025. Assets Measured at Fair Value on a Nonrecurring Basis In 2026, nine Cracker Barrel stores were determined to be impaired because of declining operating performance. The Company also recorded impairment charges in 2026 related to sixteen MSBC locations in connection with the divestiture of the MSBC business. See Note 13 for additional information regarding the divestiture of the MSBC business. In 2025, seven Cracker Barrel stores and twenty-five MSBC locations were determined to be impaired because of declining operating performance. Fair value of these locations was determined by sales prices of comparable assets or estimates of discounted future cash flows considering their highest and best use. Assumptions used in the cash flow model included projected annual revenue growth rates and projected cash flows, which can be affected by economic conditions and management’s expectations. Additionally, changes in the local and national economies and markets for real estate and other assets can impact the sales prices of the assets. The Company has determined that the majority of the inputs used to value its long-lived assets held and used are unobservable inputs, and thus, are considered Level 3 inputs. Based on its analysis, the Company recorded impairment charges of $13,027 and $19,772, respectively, in 2026 and 2025, related to long-lived assets measured at fair value on a nonrecurring basis. Such charges are included in the impairment and store closing costs line on the Consolidated Statements of Income. |
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