Cabela's 2009 Annual Report Download - page 54

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45
Significant selling, distribution, and administrative expense increases and decreases related to specific business
segments included the following:
Retail Business Segment:
• An increase in existing retail store operating costs of $11 million over 2008.
• Additional operating costs for new stores that were not open in 2008 of $8 million, including $5 million in
employee compensation and benefit costs.
• A decrease in comparable store employee compensation and benefits of $7 million realized from our focus
to enhance our retail store efficiencies.
• An increase in depreciation on stores of $4 million over 2008.
• New store pre-opening costs of $4 million, a decrease of $5 million compared to 2008.
• Improved efficiencies in advertising resulting in a decrease of $4 million in advertising and promotional costs.
• An increase in marketing fees of $3 million received from the Financial Services segment.
Direct Business Segment:
• A net decrease in catalog and Internet related marketing costs of $16 million compared to 2008 primarily
due to a managed reduction in catalog page count and lower circulation.
• A decrease of $3 million in employee compensation and benefits.
• An increase in marketing fees of $1 million received from the Financial Services segment.
Financial Services:
• An increase of $4 million in the marketing fee paid by the Financial Services segment to the Direct business
segment ($1 million) and the Retail segment ($3 million).
• An increase in third party processing fees of $1 million due to an increase in the volume of transactions.
• An increase in professional fees of $2 million due to higher amortization of fees related to recently
completed securitizations and to increases in Federal Deposit Insurance Corporation (“FDIC”) assessments
and consulting fees.
• An increase in compensation and benefits of $2 million.
Corporate Overhead, Distribution Centers, and Other:
• An increase of $9 million in employee compensation and benefits primarily due to an increase in incentive
compensation of $12 million compared to 2008.
• An increase of $2 million in costs for professional services.
• A net increase of $1 million in depreciation expense, and equipment and software expenses.
Restructuring and Impairment Charges
Impairment and restructuring charges were classified as follows for the years ended:
2009 2008
Impairment losses on:
Property and equipment $ 43,721 $1,632
Land held for sale 16,046 854
Economic development bonds 2,099 558
Goodwill and other intangible assets 460 1,070
62,326 4,114
Restructuring charges for:
Severance and related benefits 4,468 1,670
Total $66,794 $5,784