Cabela's 2005 Annual Report Download - page 107

CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollar Amounts in Thousands Except Share and Per Share Amounts)
The components of accumulated other comprehensive income (loss), net of tax, were as follows:
2005 2004
Accumulated net unrealized holding gain (loss) on available for sale
securities ...................................................... $(19) $2,565
Accumulated net unrealized holding gain (loss) on derivatives .............. (7) 151
Total accumulated other comprehensive income (loss) .................... $(26) $2,716
18. RELATED PARTY TRANSACTIONS
During 2003 the Company leased land and buildings from an entity controlled by the majority stockholders.
The lease cost was $70 per month. Rent expense on this lease was $844 for fiscal year 2003. At the end of fiscal
2003 the Company purchased these buildings for $5.0 million. These buildings were located in Sidney, Nebraska
and are used for warehouse, distribution and corporate storage.
The Company had engaged McCarthy & Co., an affiliated party of one of the Company’s directors, to
provide financial and business consulting services on a fee-for-services basis. The fees paid to McCarthy & Co.
totaled $58, including expenses, in fiscal 2003. In addition, pursuant to an engagement letter entered into by the
Company with McCarthy & Co., McCarthy & Co. was paid fees and expenses of $222 in fiscal 2003 in
connection with the closing of a recapitalization transaction. Subsequently, $150 of the fees related to the
recapitalization transaction were paid back to the Company by McCarthy & Co. in connection with the
Company’s initial public offering in 2004.
The Company was previously a party to a split dollar insurance agreement dated January 29, 1999 with an
affiliate of the Company’s Chairman. Under the agreement, the Company was guaranteed repayment of the lesser
of net premiums paid or the cash surrender value of the policy upon death or termination. This agreement was
terminated in September 2003, and the Company was reimbursed all net premiums previously paid into the plan.
Pursuant to the agreement, the Company paid $111, net of reimbursements, in fiscal 2003.
A prior member of the Company’s board of directors is an attorney with a firm, which the Company utilizes
in the course of its legal needs throughout the year. All activity is at arms-length rates and reviewed and
approved by a Vice President prior to payment. Fees paid to this board member’s firm totaled $757 in fiscal
2003. Fees paid to this former board member’s firm totaled $126 through March 2, 2004 when this director
resigned from the board effective March 2, 2004.
A prior member of the Company’s board of directors, who is currently an emeritus director, is an attorney
with a firm that the Company utilizes in the course of its legal needs throughout the year. All activity is at arms-
length rates and reviewed and approved by a Vice President prior to payment. Fees paid to this board member’s
firm totaled $23, $56 and $74 in fiscal 2005, 2004 and 2003, respectively.
A prior member of the Company’s board of directors was the Chairman of an insurance company, which
administers the Company’s health insurance (self-funded) plan, as well as handles the Company’s stop-loss
policy. This director resigned from the board at the end of fiscal 2003, and is now deceased. Total fees paid for
these services were $1,413 during 2003.
The Company buys products from an affiliate of the Company’s Board Chairman, which are sold through
various distribution channels. All activity is at arms-length rates. Total products purchased in fiscal 2005 were $37.
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