Cabela's 2014 Annual Report Download - page 59

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49
x an increase of $13 million in advertising, promotional, and direct marketing costs to support customer
relationships, for new store openings, and from an increase in account origination costs in our Financial
Services segment;
x an increase of $10 million in professional fees; and
x an increase of $6 million in equipment supplies and software expense primarily to support
operational growth.
Significant changes in our selling, distribution, and administrative expenses related to specific business
segments included the following:
Retail Segment:
x An increase of $54 million in employee compensation, benefits, and contract labor primarily due to the
opening of new retail stores and increases in staff for other retail stores and merchandising teams.
x An increase of $15 million in building costs primarily related to the operations and maintenance of our
new and existing retail stores.
x An increase of $10 million in advertising and promotional costs related to new and existing retail stores.
x An increase of $5 million in professional fees and an increase of $1 million in equipment supplies and
software expense primarily to support operational growth.
Direct Segment:
x An increase of $3 million in employee compensation, benefits, and contract labor.
x An increase of $2 million in advertising and direct marketing costs primarily due to increased expenses
related to our expanded use of digital marketing channels and enhancements to our website, partially
offset by reduced catalog related costs.
x An increase of $2 million in professional fees.
Financial Services Segment:
x An increase of $5 million in employee compensation, benefits, and contract labor principally for positions
added to support the growth of credit card operations.
x An increase of $2 million in professional fees.
Corporate Overhead, Distribution Centers, and Other:
x An increase of $30 million in employee compensation, benefits, and contract labor in general corporate
and the distribution centers to support operational growth.
x An increase of $8 million in building costs primarily related to the maintenance and expansion of our
administrative buildings.
x An increase of $5 million in equipment supplies and software expense primarily related to new
equipment and updates to support operational growth.
x An increase of $1 million in professional fees and an increase of $1 million in advertising and
promotional costs.
Impairment and Restructuring Charges
Impairment and restructuring charges consisted of the following for the years ended:
2013 2012
Impairment losses relating to:
Accumulated amortization of deferred grant income $ 4,931 $ 1,309
Property, equipment, and other assets 937 1,321
Other property - 17,694
Tot al $ 5,868 $ 20,324