Cabela's 2012 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2012 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 135

  • 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
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135

44
• an increase of $11 million in advertising and direct marketing costs, in advertising and promotional costs
to support customer relationships, for new store openings, and from an increase in account origination
costs in our Financial Services segment; and
• an increase of $3 million in equipment and software expense primarily to support operational growth.
Significant changes in our selling, distribution, and administrative expenses related to specific business
segments included the following:
Retail Segment:
• An increase of $29 million in employee compensation, benefits, and contract labor primarily due to the
opening of new retail stores and increases in staff for other retail stores and merchandising teams.
• An increase of $12 million in building costs primarily related to the operations and maintenance of our
new and existing retail stores.
• An increase of $15 million in advertising and promotional costs related to new and existing retail stores.
Direct Segment:
• A net increase of $3 million in advertising and direct marketing costs primarily due to increases in
Internet related expenses due to our expanded use of digital marketing channels and enhancements to our
website, partially offset by reduced catalog related costs.
• An increase of $1 million in building costs and depreciation primarily related to improvements to our
distribution centers.
• A decrease of $2 million in employee compensation, benefits, and contract labor.
Financial Services Segment:
• An increase of $8 million in employee compensation, benefits, and contract labor principally for
positions added to support the growth of credit card operations.
• A decrease of $7 million in advertising and promotional costs primarily due to the classification of new
account origination costs.
• An increase of $2 million in losses from fraudulent transactions on Cabela’s CLUB Visa cards.
Corporate Overhead, Distribution Centers, and Other:
• An increase of $24 million in employee compensation, benefits, and contract labor in general corporate
and the distribution centers to support operational growth.
• An increase of $4 million in equipment and software expense primarily related to new equipment and
updates to support operational growth.
• An increase of $2 million in building costs primarily related to the maintenance and expansion of our
administrative buildings.
Impairment and Restructuring Charges
Impairment and restructuring charges consisted of the following for the years ended:
2012 2011
Impairment losses relating to:
Land held for sale $ 17,694 $ 4,617
Property, equipment, and other assets 1,321 154
Accumulated amortization of deferred grant income 1,309 6,538
20,324 11,309
Restructuring charges for severance and related benefits - 935
Total $ 20,324 $ 12,244