Cabela's 2012 Annual Report Download - page 61

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51
Significant selling, distribution, and administrative expense increases and decreases related to specific
business segments included the following:
Retail Segment:
• An increase of $20 million in employee compensation and benefits primarily due to the opening of new
retail stores and increases in staff for other retail stores and merchandising teams.
• An increase of $7 million in building costs primarily related to the operations and maintenance of our
new and existing retail stores.
• An increase of $5 million in advertising and promotional costs relating to new store openings.
Direct Segment:
• A decrease of $3 million in employee compensation and benefits.
Financial Services Segment:
• A decrease of $8 million in operating expenses relating to the matters arising out of the 2009 FDIC
compliance examination.
• An increase of $5 million in advertising and promotions expense due to an increase in account
origination costs.
• An increase of $3 million in employee compensation and benefits principally for positions added to
support the growth of credit card operations.
Corporate Overhead, Distribution Centers, and Other:
• An increase of $16 million in employee compensation and benefits in general corporate and the
distribution centers to support operational growth.
• An increase of $5 million in costs primarily related to the operations and maintenance of our corporate
offices.
• An increase of $3 million in contract labor and equipment and software expenses primarily due to costs
relating to 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:
2011 2010
Impairment losses relating to:
Land held for sale $ 4,617 $ 1,834
Property, equipment, and other assets 154 3,792
Accumulated amortization of deferred grant income (1) 6,538 -
11,309 5,626
Restructuring charges for severance and related benefits 935 -
Total $ 12,244 $ 5,626
(1) In 2011, deferred grant income was reduced by $24 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 $7 million in 2011, 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
$11 million and $6 million in 2011 and 2010, respectively. In 2011, we incurred charges approximating $1 million
for severance and related benefits. All impairment and restructuring charges were recorded to the Corporate
Overhead and Other segment for 2011 and 2010.