Cabela's 2013 Annual Report Download - page 105

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95
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
Deferred tax assets and liabilities consisted of the following for the years ended:
2013 2012
Deferred tax assets:
Deferred compensation $ 12,504 $ 11,367
Deferred revenue 5,137 5,429
Reserve for returns 5,988 5,777
Accrued expenses 27,970 21,928
Gift certificates liability 8,794 7,331
Allowance for loans losses and doubtful accounts 20,600 24,962
Loyalty rewards programs 36,597 31,881
Other 5,505 3,277
123,095 111,952
Deferred tax liabilities:
Prepaid expenses 11,608 10,610
Property and equipment 75,988 61,138
Inventories 3,172 2,080
Credit card loan fee deferral 32,296 32,390
U.S. income tax on foreign earnings - 8,973
Economic development bonds 743 3,674
Other 58 3,012
123,865 121,877
Net deferred tax (asset) liability 770 9,925
Less current deferred income taxes (2,348) (646)
Long-term deferred income taxes $ 3,118 $ 10,571
The Company has not provided United States income taxes on undistributed earnings of foreign subsidiaries
that we consider to be indefinitely reinvested outside of the United States as of the end of year 2013. If these
foreign earnings were to be repatriated in the future, the related United States tax liability may be reduced by
any foreign income taxes previously paid on these earnings. As of the year ended 2013, the cumulative amount
of earnings upon which United States income taxes have not been provided was approximately $152,000. If those
earnings were not considered indefinitely invested the Company estimates that an additional income tax expense of
approximately $30,000 would be recorded.
As of December 28, 2013, cash and cash equivalents held by our foreign subsidiaries totaled $95,964.
Our intent is to permanently reinvest these funds outside the United States for capital expansion. Based on the
Company’s current projected capital needs and the current amount of cash and cash equivalents held by our foreign
subsidiaries, we do not anticipate incurring any material tax costs beyond our accrued tax position in connection
with any repatriation, but we may be required to accrue for unanticipated additional tax costs in the future if our
expectations or the amount of cash held by our foreign subsidiaries change.