Cabela's 2012 Annual Report Download - page 108

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98
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
A reconciliation of the statutory federal income tax rate to the effective income tax rate was as follows for the
years ended:
2012 2011 2010
Statutory federal rate 35.0% 35.0% 35.0%
State income taxes, net of federal tax benefit 1.9 1.6 2.7
Other nondeductible items 0.7 0.2 0.5
Tax exempt interest income (0.5) (0.7) (0.3)
Rate differential on foreign income (3.8) (4.5) (3.1)
Change in unrecognized tax benefits 0.4 1.1 0.2
Deferred income tax rate change 0.4 0.8 -
Other, net (0.4) - (2.3)
33.7% 33.5% 32.7%
Deferred tax assets and liabilities consisted of the following for the years ended:
2012 2011
Deferred tax assets:
Deferred compensation $ 11,367 $ 11,259
Deferred revenue 5,429 3,726
Reserve for returns 5,777 4,782
Accrued expenses 21,928 13,783
Gift certificates liability 7,331 6,803
Allowance for loans losses and doubtful accounts 24,962 28,465
Loyalty rewards programs 31,881 27,962
Other 3,277 4,409
111,952 101,189
Deferred tax liabilities:
Prepaid expenses 10,610 12,687
Property and equipment 61,138 73,478
Inventories 2,080 2,497
Credit card loan fee deferral 32,390 30,644
U.S. income tax on foreign earnings 8,973 3,050
Economic development bonds 3,674 1,565
Other 3,012 555
121,877 124,476
Net deferred tax (asset) liability 9,925 23,287
Less current deferred income taxes (646) (3,080)
Long-term deferred income taxes $ 10,571 $ 26,367
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 2012. 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 2012, the cumulative amount of earnings upon which United States income taxes have not
been provided is approximately $122,000. If those earnings were not considered indefinitely invested the Company
estimates that an additional income tax expense of approximately $26,000 would be recorded.