Cabela's 2008 Annual Report Download - page 103

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98
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
not reflect any premium or discount that could result from offering these bonds for sale or through early redemption,
or any related income tax impact. Declines in the fair value of held-to-maturity and available-for-sale economic
development bonds below cost that are deemed to be other than temporary are reflected in earnings.
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, gift certificates
(including credit card and loyalty rewards programs), accrued expenses, short-term borrowings, and income taxes
payable included in the consolidated balance sheets approximate fair value given the short-term nature of these
financial instruments. The estimated fair value and disclosures for credit card loans receivable, time deposits, and
long-term debt included in the consolidated balance sheets are reported under the provisions of FAS 107 Disclosures
About Fair Value of Financial Instruments.
25. QUARTERLY FINANCIAL INFORMATION (Unaudited)
The following table sets forth unaudited financial and operating data in each quarter for the years ended 2008
and 2007:
2008 2007
First
Quarter Second
Quarter Third
Quarter Fourth
Quarter First
Quarter Second
Quarter Third
Quarter Fourth
Quarter
Total revenue (1) $ 535,539 $525,952 $611,800 $879,430 $462,091 $451,199 $546,809 $889,500
Operating income (2) 21,086 14,852 20,845 84,256 12,391 20,252 24,346 94,103
Net income 9,956 7,279 9,722 49,447 7,142 11,264 13,232 56,241
Earnings per share—Basic (3) 0.15 0.11 0.15 0.74 0.11 0.17 0.20 0.85
Earnings per share—Diluted (3) 0.15 0.11 0.15 0.74 0.11 0.17 0.20 0.84
(1) In the fourth quarter of 2008, we recorded gift instrument breakage of $8.7 million in Retail revenue and
operating income due to a change in the estimated breakage period from seven years to four years.
(2) In the fourth quarter of 2008, we recorded $6 million of expenses relating to the impairment of goodwill,
economic development bond impairment, and employee severance costs.
(3) Basic and diluted earnings per share are computed independently for each of the quarters presented and,
therefore may not sum to the totals for the year.
Revenue is typically higher in our third and fourth quarters than in the first and second quarters due to holiday
buying patterns and hunting and fishing season openings across the United States. Our quarterly operating results
may fluctuate significantly as a result of these events and a variety of other factors, and operating results for any
quarter are not necessarily indicative of results for a full year.
26. SUBSEQUENT EVENT
On February 19, 2009, Moody’s Investors Service announced that it had downgraded the ratings on 21 classes
of asset-backed notes issued by the trust of our Financial Services business. Moody’s Investors Service is one of three
rating agencies that rate our Financial Services business’ term securitizations. We do not believe that this downgrade
will have a significant impact on the ability of our Financial Services business to complete other securitization
transactions on acceptable terms or to access financing.