Cabela's 2008 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2008 Cabela's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 117

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117

73
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
measured at the largest amount of the benefit that is greater than 50 percent likely of being realized upon ultimate
settlement. Unrecognized tax benefits are tax benefits claimed on our tax returns that do not meet these recognition
and measurement standards.
As a result of adopting FIN 48, we recognized additional liabilities for unrecognized tax benefits of $8,569. Of
this amount, $966 after-tax was recorded as a one-time decrease to our beginning retained earnings. The remaining
amount was previously accrued under FAS 5, Accounting for Contingencies, or FAS 109, Accounting for Income
Taxes. In addition, we recorded $1,196 before-tax, or $789 after-tax, of accrued interest on the estimated unrecognized
tax benefits as a one-time decrease to our beginning retained earnings. The cumulative effect of adopting FIN 48
totaled $1,755 as a decrease to our beginning retained earnings.
3. ACCOUNTING PRONOUNCEMENTS
As of December 30, 2007, FAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities-
Including an Amendment to FASB Statement No. 115 became effective for the Company. This statement permits
entities to choose to measure many financial instruments and certain other items at fair value on an instrument by
instrument basis with changes in fair value reported in earnings. The Company has elected not to adopt the fair value
option under FAS No. 159 on any financial instruments or other items held.
Effective December 30, 2007, we adopted the provisions of FAS No. 157, Fair Value Measurements. This
statement defines fair value, establishes a hierarchal disclosure framework for measuring fair value, and requires
expanded disclosures about fair value measurements. The provisions of FAS 157 apply to all financial instruments
that are being measured and reported on a fair value basis. In addition, in February 2008, the FASB issued FASB
Staff Position FAS 157-2, Effective Date of FASB Statement No. 157. This FSP delays the effective date of FAS 157
to fiscal years beginning after November 15, 2008, and interim periods within those fiscal years for all nonfinancial
assets and liabilities, except those that are recognized or disclosed at fair value in the financial statements on a
recurring basis (at least annually). The partial adoption of FAS 157 did not have any impact on our financial position
or results of operations. We do not believe that the adoption of FAS 157, as it relates to nonfinancial assets and
liabilities, will have a material impact on our financial position or results of operations.
In December 2007, the FASB issued FAS No. 141R, Business Combinations, which replaces FAS No. 141.
FAS 141R establishes principles and requirements for how the acquirer of a business recognizes and measures in its
financial statements the identifiable assets acquired and the liabilities assumed. This statement applies prospectively
to all business combinations for which the acquisition date is on or after the beginning of the first annual reporting
period beginning on or after December 15, 2008. FAS 141R will be applicable to us beginning in fiscal year 2009.
In December 2007, the FASB issued FAS No. 160, Noncontrolling Interests in Consolidated Financial Statements
– an amendment of ARB No. 51. This statement amends ARB No. 51 to establish accounting and reporting standards
for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. FAS 160 is effective for
fiscal years beginning on or after December 15, 2008, including interim periods. We do not believe that the adoption
of this statement will have a material effect on our financial position or results of operations.
In February 2008, the FASB issued FSP FAS 140-3, Accounting for Transfers of Financial Assets and Repurchase
Financing Transactions. The objective of this FSP is to provide implementation guidance on accounting for a transfer
of a financial asset and repurchase financing. The FSP presumes that an initial transfer of a financial asset and a
repurchase financing are considered part of the same arrangement (linked transaction) under FAS 140. However, if
certain criteria are met, the initial transfer and repurchase financing shall not be evaluated as a linked transaction
and shall not be evaluated under FAS 140. FSP FAS 140-3 is effective for fiscal years beginning after November 15,
2008. We do not believe that the adoption of this statement will have a material effect on our financial position or
results of operations.