Cabela's 2010 Annual Report Download - page 104

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94
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
require WFB to reimburse cardholders who paid improper fees and/or interest charges and has also indicated that
it will seek to impose on WFB a monetary penalty as a result of the improper practices. Subsequent to January 1,
2011, WFB and the FDIC agreed in principle to settle all matters related to the 2009 compliance examination. As
of January 1, 2011, the Company had accrued a liability of $8,000 in the consolidated financial statements for the
matters cited by the FDIC in its examination report.
The Company leases various buildings, computer equipment, and storage space under operating leases which
expire on various dates through January 2037. Rent expense on these leases as well as other month to month rentals
was $7,506, $8,624, and $8,494, for 2010, 2009, and 2008, respectively. The following is a schedule of future
minimum rental payments under operating leases at January 1, 2011:
2011 $6,983
2012 6,619
2013 6,130
2014 5,897
2015 5,822
Thereafter 84,384
$115,835
The Company has certain lease agreements for retail store locations. Certain leases include tenant allowances
that will be amortized over the life of the lease. In 2010, no tenant allowances were received and in 2009, the
Company received $3,899 in tenant allowances. Certain leases require the Company to pay contingent rental
amounts based on a percentage of sales, in addition to real estates taxes, insurance, maintenance, and other
operating expenses associated with the leased premises. These leases include options to renew with lease periods,
including extensions, varying from 10 to 70 years.
The Company has entered into real estate purchase, construction, and/or economic development agreements
for various new retail store site locations. At January 1, 2011, the Company had total estimated cash commitments
of approximately $36,900 outstanding for projected retail store-related expenditures and the purchase of future
economic development bonds connected with the development, construction, and completion of new retail stores.
This does not include any amounts for contractual obligations associated with retail store locations where the
Company is in the process of certain negotiations.
Under various grant programs, state or local governments provide funding for certain costs associated
with developing and opening a new retail store. The Company generally receives grant funding in exchange for
commitments, such as assurance of agreed employment and wage levels at the retail store or that the retail store
will remain open, made by the Company to the state or local government providing the funding. The commitments
typically phase out over approximately five to 10 years. If the Company failed to maintain the commitments during
the applicable period, the funds received may have to be repaid or other adverse consequences may arise, which
could affect the Company’s cash flows and profitability. As of January 1, 2011, the total amount of grant funding
subject to a specific contractual remedy was $12,625.
The Company operates an open account document instructions program, which provides for Cabela’s-issued
letters of credit. At the end of 2010 and 2009, the Company had obligations to pay participating vendors $43,749
and $23,471, respectively.