Cabela's 2007 Annual Report Download - page 26

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20
defendant in any credit card industry lawsuits. If the interchange fees that are charged to merchants are reduced as a result
of the interchange lawsuits or if the credit card industry is adversely affected by other credit card industry litigation, the
financial condition and results of operations of our Financial Services business may be negatively impacted.
Fluctuations in the value of our interests in our securitizations relating to our Financial Services business
may adversely affect our earnings.
In connection with our securitizations relating to our Financial Services business, we retain certain interests
in the assets included in the securitization. These interests are carried on our consolidated financial statements
and include our “transferor’s interest” in the securitized loans; an “interest-only strip,” which represents our right
to receive excess cash available after repayment of all amounts due to the investors; servicing rights; and in some
cases cash reserve accounts and Class B securities, which securities are subordinate to the investors’ certificates
and notes. The value of these retained interests depends upon income earned on these interests which is affected by
many factors not within our control, including the performance of the securitized loans, interest paid to the holders
of securitization securities, credit losses, and transaction expenses. The value of our interests in the securitizations
will vary over time as the amount of loans in the securitized pool and the performance of those loans fluctuate. The
performance of the loans included in our securitizations is subject to the same risks and uncertainties that affect the
loans that we have not securitized, including, among others, increased delinquencies and credit losses, economic
downturns and social factors, interest rate fluctuations, changes in government policies and regulations, competition,
expenses, dependence upon third-party vendors, fluctuations in accounts and account balances, and industry risks.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
In addition to our retail stores listed below, we also operate our corporate headquarters, administrative offices,
three distribution centers, a merchandise return center, five customer care centers, and a taxidermy manufacturing
facility. The following table provides information regarding the general location, use, and approximate size of our
principal non-retail properties:
Property Location
Total
Square Feet
Segment That
Uses Property
Corporate Headquarters . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sidney, Nebraska 294,000 Retail, Direct and
Other
Administrative Offices and Customer Care Center . . . . . . . Sidney, Nebraska 94,000 Retail, Direct and
Other
Distribution Center ................................. Sidney, Nebraska 752,000 Other
Distribution Center ................................. Prairie du Chien, Wisconsin 1,071,000 Other
Distribution Center ................................. Wheeling, West Virginia (1) 1,165,000 Other
Retail Store, Warehouse and Administrative Office ....... Winnipeg, Manitoba 84,000 Retail and Direct
Merchandise Return Center .......................... Oshkosh, Nebraska 52,000 Other
Customer Care Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . North Platte, Nebraska 12,000 Direct
Customer Care Center and Administrative Offices ....... Kearney, Nebraska 151,000 Retail store and
Direct
Customer Care Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Grand Island, Nebraska (1) 12,000 Direct
Customer Care Center and Administrative Offices . . . . . . . Lincoln, Nebraska 76,000 Direct, Financial
Services and Other
Manufacturing and Administrative Offices ............. Woonsocket, South Dakota 145,000 Direct
(1) We own all of these properties with the exception of leases we have entered into for the customer care center in
Grand Island, Nebraska, and the distribution center in Wheeling, West Virginia.
We own all of our retail stores except Boise, Idaho; and Hazelwood, Missouri; and we have a ground lease for
East Hartford, Connecticut. Also, in connection with some of the economic development packages received from
state or local governments where our stores are located, we have entered into agreements granting ownership of the
taxidermy, diorama, or other portions of our stores to these state and local governments.