Cabela's 2012 Annual Report Download - page 70

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60
2012 versus 2011
Operating Activities – Cash from operating activities decreased $132 million in 2012 compared to 2011.
Inventories increased $58 million at December 29, 2012, to $553 million, compared to 2011, while inventories decreased
$14 million at December 31, 2011, compared to 2010, a net change of $72 million. The increase in inventories in 2012 is
primarily due to the addition of new retail stores. Comparing the respective periods, there were increases of $96 million
in income taxes and $22 million in net credit card loans originated at Cabela’s through our Retail and Direct businesses.
In 2012, we paid $137 million in income taxes compared to $45 million in 2011. Offsetting these decreases in cash from
operations comparing the respective periods were increases of $30 million in accounts payable and accrued expenses,
$31 million in cash generated from operations, and $35 million in accounts receivable and prepaid expenses.
Investing Activities – Cash used in investing activities increased $80 million in 2012 compared to 2011.
Cash paid for property and equipment additions totaled $214 million in 2012 compared to $127 million in 2011. At
December 29, 2012, we estimated total capital expenditures for the development, construction, and completion of
retail stores to approximate $202 million through the next 12 months. We expect to fund these estimated capital
expenditures with funds from operations.
The following table presents the growth of our retail stores, and the activity of economic development bonds
related to the construction of these stores and related projects, for the years ended:
2012 2011
(Dollars in Thousands)
Property and equipment additions $ 214,267 $ 126,740
Proceeds from retirements and maturities of economic development bonds 3,151 3,057
Number of new retail stores opened during the year 6 3
Number of retail stores at the end of the year 40 34
Retail square footage at the end of the year 5,142,000 4,682,000
Financing Activities – Cash provided by financing activities increased $28 million in 2012 compared to
2011. This net change was primarily due to an increase in net borrowings on secured obligations of the Trust by
the Financial Services segment of $411 million. This increase was primarily offset by a decrease in time deposits,
which the Financial Services segment utilizes to fund its credit card operations, of $66 million in 2012, compared
to $470 million in 2011. At the end of 2012 and 2011, there were no amounts outstanding on our unsecured
revolving credit facilities. During 2012, we repurchased shares of our common stock for $29 million compared to
$20 million in 2011. We expect to repurchase our common stock in the future to offset future equity grants and to
fund any repurchases with cash from operations.
The following table presents the borrowing activities of our merchandising business and the Financial
Services segment for the years ended:
2012 2011
(In Thousands)
Borrowings (repayments) on revolving credit facilities and inventory
financing, net $ (391) $ (57)
Secured borrowings (repayments) of the Trust, net 290,000 (121,400)
Issuances (repayments) of long-term debt, net of repayments (8,387) (230)
Total $ 281,222 $ (121,687)