Cabela's 2011 Annual Report Download - page 59

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49
Financial Services:
• An increase of $38 million in the marketing fee paid by the Financial Services segment to the Retail
segment ($21 million) and the Direct business segment ($17 million).
• An increase of $8 million relating to the matters arising out of the FDIC compliance examination.
• An increase in contract labor of $5 million primarily as a result of an increase in collection agency costs
and an increase in the number of active credit card accounts and credit card transactions.
Corporate Overhead, Distribution Centers, and Other:
• An increase of $6 million in employee compensation and benefits.
• An increase of $5 million in contract labor due to costs relating to gift instruments sold through third
parties and implementation issues relating to the information technology system changes in support of
our customer relationship management system.
Impairment and Restructuring Charges
Impairment and restructuring charges consisted of the following for the years ended:
2010 2009
Impairment losses relating to:
Property, equipment and other assets $ 3,792 $ 43,721
Land held for sale 1,834 16,046
Accumulated amortization of deferred grant income (1) - 2,099
Goodwill and other intangible assets - 460
5,626 62,326
Restructuring charges for:
Severance and related benefits - 4,468
Tot al $ 5,626 $ 66,794
(1) In 2009, deferred grant income was reduced by $8 million due to other-than-temporary impairment losses of
the same amount that were recognized on our economic development bonds. This reduction in deferred grant
income resulted in an increase in depreciation expense of $2 million in 2009, which has been included in
impairment and restructuring charges in the consolidated statements of income.
In accordance with accounting guidance on asset valuations, we recognized impairment losses totaling
$6 million and $62 million in 2010 and 2009, respectively. In 2009, we incurred charges totaling approximately
$4 million for severance and related benefits primarily from outplacement costs and a voluntary retirement
plan implemented in February 2009. All impairment and restructuring charges were recorded to the Corporate
Overhead and Other segment for 2010 and 2009.