Cabela's 2010 Annual Report Download - page 113

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103
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
As presented below, the components for the Financial Services segment will not be comparable to prior
year amounts as a result of the consolidation of the Trust as of January 3, 2010. In 2010, the securitization income
component was no longer recorded and separately reported; rather the remaining components will now reflect
the financial performance of the entire managed portfolio which includes the Trust. See Note 3 for additional
information on the consolidation of the Trust.
2010 2009 2008
Interest and fee income $ 271,651 $51,505 $38,722
Interest expense (86,494)(24,242)(13,417)
Provision for loan losses (66,814)(1,107)(1,260)
Net interest income, net of provision for loan losses 118,343 26,156 24,045
Non-interest income:
Securitization income - 197,335 185,820
Interchange income 231,347 31,701 28,072
Other non-interest income 12,247 35,888 39,303
Total non-interest income 243,594 264,924 253,195
Less: Customer rewards costs (134,262)(119,666)(118,269)
Financial Services total revenue $ 227,675 $171,414 $158,971
The Company’s products are principally marketed to individuals within the United States. Net sales realized
from other geographic markets, primarily Canada, have collectively been less than 3% of consolidated net
merchandise sales in each year. No single customer accounted for 10% or more of consolidated net sales. No single
product or service accounts for a significant percentage of the Company’s consolidated revenue.
The following chart sets forth the percentage of the Company’s merchandise revenue contributed by each of
the five product categories for the Retail and Direct businesses and in total for the years presented:
Retail Direct Total
2010 2009 2008 2010 2009 2008 2010 2009 2008
Hunting Equipment 44.5%45.3%39.9%33.7%35.2%28.7%40.2%41.1%35.1%
Clothing and Footwear 24.0 22.9 24.9 33.4 33.4 36.6 27.7 27.3 30.0
Fishing and Marine 14.2 14.5 15.9 11.5 12.1 12.9 13.2 13.5 14.6
Camping 8.5 8.5 9.3 11.8 10.2 12.5 9.8 9.2 10.6
Gifts and Furnishings 8.8 8.8 10.0 9.6 9.1 9.3 9.1 8.9 9.7
Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
25. FAIR VALUE MEASUREMENTS
As defined by ASC Topic 820, Fair Value Measurements and Disclosures, fair value is the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. In determining fair value, the Company uses various methods including discounted cash flow
projections based on available market interest rates and management estimates of future cash payments. Financial
instrument assets and liabilities measured and reported at fair value are classified and disclosed in one of the
following categories:
• Level 1 – Quoted market prices in active markets for identical assets or liabilities.
• Level 2 – Observable inputs other than quoted market prices.
• Level 3 – Unobservable inputs corroborated by little, if any, market data.