Cabela's 2010 Annual Report Download - page 101

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91
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
Long-lived assets of the Company are evaluated for possible impairment whenever changes in circumstances
may indicate that the carrying value of an asset may not be recoverable. In 2010, 2009, and 2008, management
evaluated the recoverability of property (including existing store locations and future retail store sites), equipment,
land held for sale, economic development bonds, goodwill, and other intangible assets. The Company recognized
impairment losses totaling $5,626, $62,326, and $4,114 in 2010, 2009, and 2008, respectively. Trends and
management projections could change undiscounted cash flows in future periods which could trigger possible
future write downs.
In 2010, 2009, and 2008, the Company evaluated the recovery of certain economic development bonds. At the
end of 2010, none of the bonds with a fair value below carrying value were deemed to have other than a temporary
impairment. In 2009 and 2008, the Company determined that the fair value of the bonds was below carrying value,
with the decline in fair value deemed to be other than temporary, which resulted in fair value adjustments totaling
$8,032 and $1,280 at the end of 2009 and 2008, respectively. These write-downs resulted in impairment losses of
$2,099 and $558 reflected in earnings for the years ended 2009 and 2008, respectively.
In 2009, the Company incurred charges totaling $4,468 for severance and related benefits primarily
from outplacement costs and a voluntary retirement plan implemented in February 2009. In October 2008, we
announced a reduction in workforce of approximately 10% at our company headquarters which resulted in $1,670
recorded in severance and related benefits under this workforce reduction plan. All impairment and restructuring
charges were recorded to the Corporate Overhead and Other segment for 2010, 2009, and 2008.
16. INTEREST (EXPENSE) INCOME, NET
Interest expense, net of interest income, consisted of the following for years ended:
2010 2009 2008
Interest expense $ (27,606) $ (23,456) $ (32,180)
Capitalized interest 124 233 2,472
Interest income 40 114 50
$(27,442) $ (23,109) $ (29,658)
17. INCOME TAXES
The provision for income taxes consisted of the following for the years ended:
2010 2009 2008
Current:
Federal $22,338 $33,744 $32,503
State 769 1,966 2,400
Foreign 12,007 1,124 -
35,114 36,834 34,903
Deferred:
Federal 18,614 (9,640)7,233
State 1,196 (287)(305)
Foreign (403) - -
19,407 (9,927)6,928
$54,521 $26,907 $41,831