Cabela's 2014 Annual Report Download - page 107

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
report and are currently appealing the adjustments. We expect the appeals process for the 2007 and 2008 tax years
to be completed within the next 12 months. We do not expect the examination and related appeal for the 2009,
2010, and 2011 tax years to be completed within the next 12 months. We have reserved for potential adjustments
for income taxes that may result from examinations by the tax authorities, and we believe that the final outcome of
these examinations or agreements will not have a material effect on the Company’s financial condition, results of
operations, or cash flows. At the end of 2014, unrecognized tax benefits totaling $46,317 and $55,562 were included
in current liabilities (accrued expenses and other liabilities) and in other long-term liabilities, respectively, in our
consolidated balance sheet, compared to $64,800 at the end of 2013 that was included in other long-term liabilities.
Since the Company is routinely under audit by various taxing authorities, and the Company expects to resolve
the tax issues at appeals for the 2007 and 2008 examination years in 2015, it is reasonably possible that the amount
of unrecognized tax benefits will change during the next 12 months. However, we do not expect the change, if any,
to have a material effect on the Company’s consolidated financial condition or results of operations within the next
12 months.
The Company files income tax returns in the United States, Canada, Hong Kong, and various states. The tax
years 2007 through 2013 remain open to examination by major taxing jurisdictions to which Cabela’s is subject.
17. COMMITMENTS AND CONTINGENCIES
The Company leases various buildings, computer and other equipment, and storage space under operating
leases which expire on various dates through January 2041. Rent expense on these leases, as well as other month to
month rentals, was $19,716, $14,319, and $13,605 for 2014, 2013, and 2012, respectively.
The following is a schedule of future minimum rental payments under operating leases at December 27, 2014:
For the fiscal years ending:
2015 $ 23,045
2016 23,143
2017 22,708
2018 29,260
2019 21,911
Thereafter 283,667
$ 403,734
The Company leases six retail stores and owns 18 stores subject to ground leases. Certain of these leases
include tenant allowances that are amortized over the life of the lease. During 2014 and 2013, we received tenant
allowances totaling $3,750 and $4,969, respectively. Certain leases require the Company to pay contingent
rental amounts based on a percentage of sales, in addition to real estate taxes, insurance, maintenance, and other
operating expenses associated with the leased premises. These leases have terms which include renewal options
ranging 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 December 27, 2014, the Company estimated it had total cash
commitments of approximately $523,500 outstanding for projected expenditures related to the development,
construction, and completion of new retail stores, a new distribution center, and corporate expansion. This amount
excludes any estimated costs associated with new stores where the Company does not have a commitment as of
December 27, 2014. We expect to fund these estimated capital expenditures over the next 12 months with funds
from operations and borrowings.