Cabela's 2012 Annual Report Download - page 122

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112
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
The Company evaluates the recoverability of property and equipment, land held for sale, goodwill and
intangibles whenever indicators of impairment exist using significant unobservable inputs. This evaluation
included existing store locations and future retail store sites. Impairment losses consisted of the following for the
years ended:
2012 2011 2010
Carrying value of land held for sale and other assets $ 30,669 $ 36,954 $ 9,054
Fair value of related assets 11,654 32,183 3,428
Impairment losses $ 19,015 $ 4,771 $ 5,626
The carrying amounts of cash and cash equivalents, accounts receivable, restricted cash, accounts payable,
gift instruments (including credit card and loyalty rewards programs), accrued expenses, and income taxes payable
included in the consolidated balance sheets approximate fair value given the short-term nature of these financial
instruments. The secured variable funding obligations of the Trust, which include variable rates of interest that
adjust daily, can fluctuate daily based on the short-term operational needs of the Financial Services segment with
advances and pay downs at par value. Therefore, the carrying value of the secured variable funding obligations of
the Trust approximates fair value.
The table below presents the estimated fair values of the Company’s financial instruments that are not carried
at fair value on our consolidated balance sheets for the years indicated. The fair values of all financial instruments
listed below were estimated based on internally developed models or methodologies utilizing observable inputs
(Level 2).
2012 2011
Carrying
Value
Estimated
Fair Value
Carrying
Value
Estimated
Fair Value
Financial Assets:
Credit card loans, net $ 3,497,472 $ 3,497,472 $ 3,094,163 $ 3,094,163
Financial Liabilities:
Time deposits 1,048,018 1,086,411 982,313 1,023,766
Secured long-term obligations of the Trust 1,827,500 1,807,083 1,402,500 1,374,507
Long-term debt 336,535 373,120 344,922 343,757
Credit Card Loans. Credit card loans are originated with variable rates of interest that adjust with changing
market interest rates. Thus, the carrying value of the credit card loans, including the carrying value of deferred
credit card origination costs, less the allowance for loan losses, approximates fair value. This valuation does not
include the value that relates to estimated cash flows generated from new loans over the life of the cardholder
relationship. Accordingly, the aggregate fair value of the credit card loans does not represent the underlying value
of the established cardholder relationship.
Time Deposits. Time deposits are pooled in homogeneous groups, and the future cash flows of those groups
are discounted using current market rates offered for similar products for purposes of estimating fair value. For all
periods presented, we have consistently applied our discounting methodologies to estimated future cash flows in
determining estimated fair value for time deposits.