Cabela's 2012 Annual Report Download - page 59

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49
portfolio as of the end of 2011 compared to 2010, evidenced by lower delinquencies and delinquency roll-rates
comparing the respective periods. The increase in interchange income of $36 million and customer rewards costs
of $22 million was due to an increase in credit card purchases.
The following table sets forth the components of our Financial Services revenue as a percentage of average
managed credit card loans, including any accrued interest and fees, for the years ended:
2011 2010
Interest and fee income 10.1% 11.0%
Interest expense (2.6) (3.5)
Provision for loan losses (1.4) (2.7)
Interchange income 9.7 9.4
Other non-interest income 0.5 0.5
Customer rewards costs (5.7) (5.5)
Financial Services revenue 10.6% 9.2%
Key statistics reflecting the performance of our Financial Services business are shown in the following chart
for the years ended:
2011 2010
Increase
(Decrease) % Change
(Dollars in Thousands Except Average Balance per Account)
Average balance of managed credit card loans (1) $ 2,745,118 $ 2,470,493 $ 274,625 11.1%
Average number of active credit card accounts 1,416,887 1,317,890 98,997 7.5
Average balance per active credit card account (1) $ 1,937 $ 1,875 $ 62 3.3
Net charge-offs on managed loans (1) $ 64,520 $ 104,416 $ (39,896) (38.2)
Net charge-offs as a percentage of average
managed credit card loans (1) 2.35% 4.23% (1.88)%
(1) Includes accrued interest and fees.
The average balance of credit card loans increased to $2.7 billion, or 11.1%, for 2011 compared to 2010, due
to an increase in the number of active accounts and the average balance per account. The average number of active
accounts increased to 1.4 million, or 7.5%, compared to 2010 due to our marketing efforts. Net charge-offs as a
percentage of average credit card loans decreased to 2.35% for 2011, down 188 basis points compared to 2010, due
to improvements in delinquencies and delinquency roll-rates.
Other Revenue
Other revenue decreased $11 million in 2011 to $12 million compared to $23 million in 2010 primarily due
to a decrease of $10 million in real estate sales revenue. After adjusting for the cost of real estate, pre-tax gains on
the sale of real estate totaled $2 million in 2010 with no sales in 2011. Pre-tax gains on the sale of real estate are
reflected in operating income.