Cabela's 2011 Annual Report Download - page 7

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To supplement the Company’s consolidated statements of income presented in accordance with generally accepted
accounting principles (“GAAP”), management of the Company has disclosed non-GAAP measures of operating
results that exclude certain items. Total revenue; selling, distribution, and administrative expenses; impairment
and restructuring charges; operating income; provision for income taxes; net income; and earnings per basic and
diluted share are presented below both as reported (on a GAAP basis) and excluding certain financial measures
(reported on a non-GAAP basis). In light of their nature and magnitude, we believe these financial measures should
be presented separately to enhance a reader’s overall understanding of the Company’s ongoing operations. These non-
GAAP financial measures should be considered in conjunction with the GAAP financial measures presented in this
Annual Report.
Management believes these non-GAAP financial results provide useful supplemental information to investors
regarding the underlying business trends and performance of the Company's ongoing operations and are useful for
period-over-period comparisons of such operations. In addition, management evaluates results using non-GAAP
adjusted total revenue, adjusted operating income, adjusted net income, and adjusted earnings per diluted share. These
non-GAAP measures should not be considered in isolation or as a substitute for total revenue, operating income, net
income, earnings per diluted share, or any other measure calculated in accordance with GAAP. The following tables
reconcile these financial measures to the related GAAP financial measures for the fiscal years presented.
Fiscal Year Ended
December 31, 2011
Fiscal Year Ended
January 1, 2011
GAAP Basis
as Reported
Excluded
Amounts
Non-GAAP
as Adjusted
GAAP Basis
as Reported
Excluded
Amounts
Non-GAAP
as Adjusted
(Dollars in Thousands Except Earnings Per Share)
Total revenue $ 2,811,166 $ - $ 2,811,166 $2,663,242 $ - $2,663,242
Total cost of revenue (exclusive of
depreciation and amortization) 1,613,249 -1,613,249 1,575,449 -1,575,449
Selling, distribution, and administrative expenses (1) 954,125 -954,125 895,405 (8,000)887,405
Impairment and restructuring charges (2) 12,244 (12,244) - 5,626 (5,626) -
Operating income 231,548 12,244 243,792 186,762 13,626 200,388
Interest expense, net (24,427) - (24,427)(27,442) - (27,442)
Other non-operating income, net 7,346 -7,346 7,360 -7,360
Income before provision for income taxes 214,467 12,244 226,711 166,680 13,626 180,306
Provision for income taxes 71,847 4,102 75,949 54,521 4,457 58,978
Net income $ 142,620 $8,142 $150,762 $112,159 $9,169 $121,328
Earnings per basic share $ 2.06 $0.12 $2.18 $1.65 $0.14 $ 1.79
Earnings per diluted share $ 2.00 $0.12 $2.12 $1.62 $0.14 $1.76
(1) Reflects an accrual recognized in fiscal 2010 as a result of an agreement in principle to settle all matters
with the Federal Deposit Insurance Corporation arising out of its compliance examination conducted in 2009
of World’s Foremost Bank.
(2) Reflects impairment losses on certain assets where projected cash flows were less than the fair value of the
respective assets and restructuring charges for severance and related benefits pursuant to certain reductions in
workforce and voluntary retirement plans. See Note 15 in the 2011 Form 10-K for additional information.
CABELA’S INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES