Cabela's 2011 Annual Report Download - page 103

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93
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
Deferred tax assets and liabilities consisted of the following for the years ended:
2011 2010
Deferred tax assets:
Deferred compensation $ 11,259 $ 11,717
Deferred revenue 3,726 4,508
Reserve for returns 4,782 5,022
Accrued expenses 13,783 13,003
Gift certificates liability 6,803 7,174
Allowance for loans losses and doubtful accounts 28,465 35,562
Economic development bonds — 1,587
Loyalty rewards programs 27,962 35,740
Other 4,409 4,709
101,189 119,022
Deferred tax liabilities:
Prepaid expenses 12,687 11,848
Property and equipment 73,478 49,756
Inventories 2,497 3,106
Credit card loan fee deferral 30,644 28,982
U.S. income tax on foreign earnings 3,050 9,877
Economic development bonds 1,565 —
Other 555 531
124,476 104,100
Net deferred tax (asset) liability 23,287 (14,922)
Less current deferred income taxes (3,080) (2,136)
Long-term deferred income taxes $ 26,367 $ (12,786)
The Company has not provided United States income taxes and foreign withholding taxes on the portion of
undistributed earnings of foreign subsidiaries that the Company considers to be indefinitely reinvested outside
of the United States as of the end of year 2011. If these foreign earnings were to be repatriated in the future, the
related United States tax liability may be reduced by any foreign income taxes previously paid on these earnings.
As of the year ended 2011, the cumulative amount of earnings upon which United States income taxes have not
been provided is approximately $79,000. If those earnings were not considered indefinitely invested the Company
estimates that an additional income tax expense of $16,195 would be recorded.
During the year ended December 31, 2011, the Company paid $38,418 as a deposit for federal taxes related
to prior period uncertain tax positions. The deposit is classified as a current asset netted within income taxes
receivable and deferred income taxes in the condensed consolidated balance sheet.
The reconciliation of unrecognized tax benefits, the balance of which is classified as other long-term
liabilities in the consolidated balance sheet, was as follows for the years ended:
2011 2010 2009
Unrecognized tax benefits, beginning of year $ 43,198 $ 2,989 $ 3,076
Gross decreases related to prior period tax positions (12,705) (1,660) (846)
Gross increases related to prior period tax positions 855 33,669 183
Gross increases related to current period tax positions 6,260 8,200 576
Unrecognized tax benefits, end of year $ 37,608 $ 43,198 $ 2,989