Cabela's 2005 Annual Report Download - page 24

The table below illustrates the historically high credit quality of our managed credit card portfolio,
presenting additional data on our credit card portfolio’s performance in 2005 and 2004 compared with 2004
industry averages.
As a Percentage of Managed Loans 2005 2004 Industry 2004(1)
Delinquencies ....................................... 0.67% 0.71% 4.22%
Gross charge-offs .................................... 2.54% 2.60% 6.22%
Net charge-offs ...................................... 2.15% 2.21% 5.44%
(1) Source: 2004 data from The Nilson Report, February 2005; Industry includes all VISA and MasterCard
accounts. This report is not available for 2005 until March 2006.
Third Party Card Programs. In 2004, our bank subsidiary entered into agreements to issue co-branded
VISA credit cards for fans of International Speedway Corp. and for customers of Woodworker’s Supply Inc., a
retailer of tools for woodworking enthusiasts. These third party programs represented only 0.6% of the total net
purchases made on our co-branded VISA cards issued by the bank in fiscal 2005. In addition, they represented
$12.6 million of credit card loans receivable, as currently our securitization program does not accept these
co-branded third party receivables.
Distribution and Fulfillment
We operate four distribution centers located in Sidney, Nebraska, Prairie du Chien, Wisconsin, Mitchell,
South Dakota and Wheeling, West Virginia. These distribution centers comprise nearly 2,502,000 square feet of
warehouse space and house our inventory. We ship merchandise to our direct customers via UPS and the United
States Postal Service. We use common carriers and typically deliver inventory two to three times per week to our
destination retail stores. Our primary returns processing facility is located in Oshkosh, Nebraska. In fiscal 2006,
we plan to expand our Wheeling, West Virginia distribution center by approximately 500,000 square feet to
further accommodate our distribution needs in the Eastern region of North America.
Management Information Systems
Our management information and operational systems manage our direct, retail and financial services
businesses. These systems are designed to process customer orders, track customer data and demographics, order,
monitor and maintain sufficient amounts of inventory, facilitate vendor transactions and provide financial
reporting. We continually evaluate, modify and update our information technology systems supporting the
product pipeline, including our design, sourcing, merchandise planning, forecasting and purchase order,
inventory, distribution, transportation and price management systems. We are planning modifications to our
technology that will involve updating or replacing our systems with successor systems during the course of
several years, including improvements to our customer relationship management system and improvements to
our systems for multi-channel tracking and processing of inventory and merchandising.
Employees
As of January 28, 2006, we employed approximately 9,800 employees, approximately 5,400 of whom were
employed full time. We use part-time and temporary workers to supplement our labor force at peak times during
our third and fourth quarters. None of our employees are represented by a labor union or are parties to a
collective bargaining agreement. We have not experienced any work stoppages and consider our relationship
with our employees to be good.
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