Cabela's Inc. Reports Record Third Quarter Fiscal 2011 Results

- Third Quarter Earnings Per Diluted Share of $0.50, Before $0.03 Impairment Charge

- Third Quarter Merchandise Gross Margin Increased 140 Basis Points

- Retail Segment Operating Margin Increased 270 Basis Points to a Third Quarter Record 16.8%

- Direct Segment Operating Margin Increased 320 Basis Points to a Third Quarter Record 17.6%

- After-Tax Return on Invested Capital Increased 210 Basis Points

SIDNEY, Neb.--(BUSINESS WIRE)--Cabela's Incorporated (NYSE:CAB) today reported record financial results for third quarter fiscal 2011.

For the quarter, adjusted for divestitures, total revenue increased 6.2% to $678.6 million; Retail store revenue increased 6.8% to $393.8 million; Direct revenue decreased 1.7% to $210.9 million; and Financial Services revenue increased 33.7% to $71.4 million. For the quarter, comparable store sales decreased 1.6%. On a reported basis, total revenue increased 5.5% and Direct revenue decreased 3.5%. A detailed reconciliation is provided at the end of this release.

Net income increased 65% to $35.6 million compared to $21.6 million in the year ago quarter, and earnings per diluted share were $0.50 compared to $0.31 in the year ago quarter, each excluding impairment charges of approximately $3.0 million pre-tax in each of the third quarters of 2011 and 2010. The Company reported GAAP net income of $33.3 million and earnings per diluted share of $0.47 as compared to GAAP net income of $19.7 million and earnings per diluted share of $0.29 in the year ago quarter. See the supporting schedules to this earnings release labeled “Reconciliation of Non-GAAP Financial Measures” for a detailed reconciliation of the GAAP to non-GAAP financial measures.

“We have made further significant improvements in areas of our strategic focus,” said Tommy Millner, Cabela's Chief Executive Officer. "These include strong third quarter results in merchandise margin, Retail segment operating margin, Direct channel revenue and Direct channel operating margin. Additionally, our new next-generation stores continue to perform extremely well, thus increasing our confidence to accelerate future retail expansion in the United States and Canada. And finally, our most important metric, after-tax return on invested capital, increased 210 basis points in the quarter marking the tenth consecutive quarterly increase."

"A key component of our strategy is to improve merchandise performance and profitability of our retail operations," Millner said. "Consistent with that strategy, we deliberately reduced promotional discounts in the quarter through the elimination of unprofitable retail store promotions. While the elimination of these promotions caused a modest decline in comparable store sales, merchandise margins increased 140 basis points and Retail segment operating margin increased 270 basis points. Using each promotion dollar more effectively is critical over the long term to maximize our growth and profitability."

"During the quarter, the Company opened a new store in Edmonton, Alberta, Canada, and the initial results have exceeded our expectations," Millner said. "The success of Edmonton matches the success of our next-generation stores opened since 2009. These stores outperformed our legacy stores on a sales per square foot and profit per square foot basis by more than 30%. Additionally, the next-generation stores have meaningfully higher return on capital than our legacy stores. Accordingly, we expect to accelerate retail expansion in the United States and Canada in 2013 beyond the 2012 level of five stores. This would increase retail square footage by approximately 10% in both 2012 and 2013."

Direct revenues were unaffected by retail promotion decisions and showed solid improvement compared to the prior several quarters. Improved results were due to better in-stock levels, higher average order size, increase in customer conversion and early stage successes in mobile and social marketing. For the quarter, Direct segment operating margin increased 320 basis points to 17.6%.

“The significant improvement in retail gross margin allowed us to make additional investments in retail business-building advertising," Millner said. "As a result of this additional advertising spend, operating expenses as a percent of total revenue increased 40 basis points compared to the prior year quarter. While operating expenses were up, they increased at a slower rate than in the first half of the year, a trend we expect to continue into the fourth quarter.”

The Cabela's CLUB® Visa program also posted very strong results in the quarter. For the quarter, net charge-offs decreased 162 basis points to 2.23% compared to 3.85% in the prior year quarter. This is the lowest level of net charge-offs in more than three years. Primarily due to lower charge-offs, Financial Services revenue increased 33.7% in the quarter to $71.4 million.

The Company also announced that its Board of Directors recently approved a share repurchase program designed primarily to offset shareholder dilution resulting from the granting of equity-based compensation awards. As a result, the Company intends to repurchase up to 800,000 shares in open market transactions through February 2012.

"Our strategies are working," Millner said. "We are pleased with our third quarter results and are confident that our outperformance in the third quarter will carry through to the full year. We therefore expect 2011 earnings per share to exceed current external expectations by the amount of the third quarter outperformance. Additionally, as we look forward to 2012, we currently expect earnings per share to grow at a low double-digit rate."

Conference Call Information

A conference call to discuss third quarter fiscal 2011 operating results is scheduled for today (Thursday, October 27, 2011) at 11:00 a.m. Eastern Time. A webcast of the call will take place simultaneously and can be accessed by visiting the Investor Relations section of Cabela's website at www.cabelas.com. A replay of the call will be archived on www.cabelas.com.

About Cabela's Incorporated

Cabela's Incorporated, headquartered in Sidney, Nebraska, is a leading specialty retailer, and the world's largest direct marketer, of hunting, fishing, camping and related outdoor merchandise. Since the Company's founding in 1961, Cabela's® has grown to become one of the most well-known outdoor recreation brands in the world, and has long been recognized as the World's Foremost Outfitter®. Through Cabela's growing number of retail stores and its well-established direct business, it offers a wide and distinctive selection of high-quality outdoor products at competitive prices while providing superior customer service. Cabela's also issues the Cabela's CLUB® Visa credit card, which serves as its primary customer loyalty rewards program. Cabela's stock is traded on the New York Stock Exchange under the symbol “CAB”.

Caution Concerning Forward-Looking Statements

Statements in this press release that are not historical or current fact are "forward-looking statements" that are based on the Company's beliefs, assumptions and expectations of future events, taking into account the information currently available to the Company. Such forward-looking statements include, but are not limited to, the Company's statements regarding accelerating retail expansion in the United States and Canada in 2013 beyond the 2012 level of five stores, operating expenses continuing to increase at a slower rate than in the first half of the year, repurchasing up to 800,000 shares in open market transactions through February 2012, full year 2011 earnings per share exceeding current external expectations by the amount of the third quarter outperformance, and earnings per share for 2012 growing at a low double-digit rate. The Company's share repurchase program does not obligate the Company to make any purchases of the Company's common stock, and the program may be limited or terminated at any time without prior notice. Forward-looking statements involve risks and uncertainties that may cause the Company's actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition that the Company expresses or implies in any forward-looking statements. These risks and uncertainties include, but are not limited to: the level of discretionary consumer spending; the state of the economy, including increases in unemployment levels and bankruptcy filings; changes in the capital and credit markets or the availability of capital and credit; the Company's ability to comply with the financial covenants in its credit agreements; changes in consumer preferences and demographic trends; the Company's ability to successfully execute its multi-channel strategy; the ability to negotiate favorable purchase, lease and/or economic development arrangements for new retail store locations; expansion into new markets and market saturation due to new retail store openings; the rate of growth of general and administrative expenses associated with building a strengthened corporate infrastructure to support the Company's growth initiatives; increasing competition in the outdoor segment of the sporting goods industry; the cost of the Company's products, including increases in fuel prices; political or financial instability in countries where the goods the Company sells are manufactured; increases in postage rates or paper and printing costs; supply and delivery shortages or interruptions, and other interruptions or disruptions to our systems, processes or controls, caused by system changes or other factors, including technology system changes in support of our customer relationship management system; adverse or unseasonal weather conditions; fluctuations in operating results; increased government regulation, including regulations relating to firearms and ammunition; inadequate protection of the Company's intellectual property; material security breaches of computer systems; the Company's ability to protect its brand and reputation; the outcome of litigation, administrative and/or regulatory matters (including a Commissioner's charge the Company received from the Chair of the U.S. Equal Employment Opportunity Commission in January 2011); the Company's ability to manage credit, liquidity, interest rate, operational, legal and compliance risks; increasing competition for credit card products and reward programs; the Company's ability to increase credit card receivables while managing fraud, delinquencies and charge-offs; the Company's ability to securitize its credit card receivables at acceptable rates or access the deposits market at acceptable rates; decreased interchange fees as a result of credit card industry regulation and/or litigation; the impact of legislation, regulation and supervisory regulatory actions in the financial services industry, including new and proposed regulations affecting securitizations and the Dodd-Frank Wall Street Reform and Consumer Protection Act; other factors that the Company may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in the Company's filings with the SEC (including the information set forth in the "Risk Factors" section of the Company's Form 10-K for the fiscal year ended January 1, 2011, and Form 10-Q for the fiscal quarter ended April 2, 2011), which filings are available at the Company's website at www.cabelas.com and the SEC's website at www.sec.gov. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. The Company's forward-looking statements speak only as of the date they are made. Other than as required by law, the Company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

CABELA'S INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except Earnings Per Share)
(Unaudited)
	Three Months Ended						Nine Months Ended
	October 1, 2011			October 2, 2010			October 1, 2011			October 2, 2010
Revenue:
Merchandise sales	$	604,288		$	587,263		$	1,601,807		$	1,546,790
Financial Services revenue	71,438			53,443			214,086			169,915
Other revenue	2,884			2,545			11,528			12,126
Total revenue	678,610			643,251			1,827,421			1,728,831
Cost of revenue:
Merchandise cost
(exclusive of depreciation and amortization)	387,520			384,451			1,037,963			1,012,408
Cost of other revenue	5			42			8			1,169
Total cost of revenue
(exclusive of depreciation and amortization)	387,525			384,493			1,037,971			1,013,577
Selling, distribution, and administrative expenses	234,108			219,120			663,322			627,174
Impairment and restructuring charges	3,488			2,997			4,443			4,831
Operating income	53,489			36,641			121,685			83,249
Interest expense, net	(6,177		)	(6,669		)	(18,322		)	(17,794		)
Other non-operating income, net	1,699			1,821			5,656			5,345
Income before provision for income taxes	49,011			31,793			109,019			70,800
Provision for income taxes	15,704			12,051			36,227			24,943
Net income	$	33,307		$	19,742		$	72,792		$	45,857
Earnings per basic share	$	0.48		$	0.29		$	1.05		$	0.68
Earnings per diluted share	$	0.47		$	0.29		$	1.02		$	0.67
Basic weighted average shares outstanding	69,554,229			67,881,158			69,203,978			67,703,805
Diluted weighted average shares outstanding	71,013,861			68,738,265			71,394,912			68,779,306

CABELA'S INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands Except Par Values)
(Unaudited)
ASSETS	October 1, 2011		January 1, 2011			October 2, 2010
CURRENT
Cash and cash equivalents	$	81,063	$	136,419		$	394,562
Restricted cash of the Trust	523,138		18,575			334,657
Accounts receivable, net of allowance for doubtful accounts of $4,613, $3,416, and $1,336	26,542		47,218			18,871
Credit card loans (includes restricted credit card loans of the Trust of $2,779,854, $2,775,768, and $2,481,707, net of allowance for loan losses of $75,300, $90,900, and $95,125)	2,726,779		2,709,312			2,402,432
Inventories	652,863		509,097			615,110
Prepaid expenses and other current assets	147,455		123,304			133,535
Income taxes receivable and deferred income taxes	18,011		2,136			4,049
Total current assets	4,175,851		3,546,061			3,903,216
Property and equipment, net	840,369		817,947			816,159
Land held for sale or development	39,314		21,816			29,904
Economic development bonds	113,630		104,231			119,845
Deferred income taxes	7,637		12,786			—
Other assets	25,671		28,338			25,983
Total assets	$	5,202,472	$	4,531,179		$	4,895,107
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT
Accounts payable, including unpresented checks of $21,876, $27,227, and $21,641	$	246,168	$	214,757		$	235,226
Gift instruments, and credit card and loyalty rewards programs	192,000		202,541			175,537
Accrued expenses	114,785		138,510			125,838
Time deposits	146,756		148,619			110,986
Current maturities of secured long-term obligations of the Trust	282,000		393,000			—
Current maturities of secured variable funding obligations of the Trust	925,000		698,400			947,900
Current maturities of long-term debt	106,236		230			227
Income taxes payable and deferred income taxes	931		2,880			1,401
Total current liabilities	2,013,876		1,798,937			1,597,115
Long-term time deposits	888,131		364,132			443,502
Secured long-term obligations of the Trust, less current maturities	722,500		892,500			1,392,500
Long-term debt, less current maturities	338,744		344,922			414,638
Deferred income taxes	—		—			16,891
Other long-term liabilities	109,403		106,140			70,284
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value; Authorized - 10,000,000 shares; Issued - none	—		—			—
Common stock, $0.01 par value: Authorized - 245,000,000 shares; Issued - 69,572,089, 68,156,154, and 67,896,893 shares	696		681			679
Additional paid-in capital	333,389		306,149			298,939
Retained earnings	793,086		720,294			653,992
Accumulated other comprehensive income (loss)	2,647		(2,576		)	6,567
Total stockholders' equity	1,129,818		1,024,548			960,177
Total liabilities and stockholders' equity	$	5,202,472	$	4,531,179		$	4,895,107

CABELA'S INCORPORATED AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
	Three Months Ended						Nine Months Ended
	October 1, 2011			October 2, 2010			October 1, 2011			October 2, 2010
	(Dollars in Thousands)
Revenue:
Retail	$	393,837		$	368,704		$	1,024,835		$	933,946
Direct	210,854			218,559			577,903			612,844
Financial Services	71,438			53,443			214,086			169,915
Other	2,481			2,545			10,597			12,126
Total revenue	$	678,610		$	643,251		$	1,827,421		$	1,728,831
Operating Income (Loss):
Retail	$	66,269		$	51,865		$	154,585		$	110,912
Direct	37,054			31,505			104,108			92,347
Financial Services	14,884			13,123			43,122			39,182
Other	(64,718		)	(59,852		)	(180,130		)	(159,192		)
Total operating income	$	53,489		$	36,641		$	121,685		$	83,249
As a Percentage of Total Revenue:
Retail revenue	58.0		%	57.3		%	56.1		%	54.1		%
Direct revenue	31.1			34.0			31.6			35.4
Financial Services revenue	10.5			8.3			11.7			9.8
Other revenue	0.4			0.4			0.6			0.7
Total revenue	100.0		%	100.0		%	100.0		%	100.0		%
As a Percentage of Segment Revenue:
Retail operating income	16.8		%	14.1		%	15.1		%	11.9		%
Direct operating income	17.6			14.4			18.0			15.1
Financial Services operating income	20.8			24.6			20.1			23.1
Total operating income as a percentage of total revenue	7.9			5.7			6.7			4.8

	CABELA'S INCORPORATED AND SUBSIDIARIES
	REVENUE FOR 2010 ADJUSTED FOR DIVESTITURE
	(Unaudited)
The Company divested its non-core home restoration products business in October 2010. Information on Direct and total revenue impacted by this divestiture is presented below for comparison purposes for the periods ending October 1, 2011, and October 2, 2010. Management believes that these measures are an important analytical tool to aid in understanding operating trends for the three and nine months ended October 1, 2011, and October 2, 2010.
		Period Ending
		October 1, 2011		October 2, 2010			Increase (Decrease)			% Change
		(Dollars in Thousands)
	Three Months Ended:
	Direct revenue	$	210,854	$	218,559		$	(7,705	)	(3.5	)%
	Less revenue from divestiture	—		(4,151		)	4,151
	Direct revenue - adjusted	$	210,854	$	214,408		$	(3,554	)	(1.7	)
	Total revenue	$	678,610	$	643,251		$	35,359		5.5
	Less revenue from divestiture	—		(4,151		)	4,151
	Total revenue - adjusted	$	678,610	$	639,100		$	39,510		6.2
	Nine Months Ended:
	Direct revenue	$	577,903	$	612,844		$	(34,941	)	(5.7	)
	Less revenue from divestiture	—		(12,909		)	12,909
	Direct revenue - adjusted	$	577,903	$	599,935		$	(22,032	)	(3.7	)
	Total revenue	$	1,827,421	$	1,728,831		$	98,590		5.7
	Less revenue from divestiture	—		(12,909		)	12,909
	Total revenue - adjusted	$	1,827,421	$	1,715,922		$	111,499		6.5

	CABELA'S INCORPORATED AND SUBSIDIARIES
	COMPONENTS OF FINANCIAL SERVICES SEGMENT REVENUE
	(Unaudited)
Financial Services revenue consists of activity from our credit card operations and is comprised of interest and fee income, interchange income, other non-interest income, interest expense, provision for loan losses, and customer rewards costs. The following table details the components and amounts of total revenue of the Company's Financial Services segment for the periods presented below.
		Three Months Ended						Nine Months Ended
		October 1, 2011			October 2, 2010			October 1, 2011			October 2, 2010
		(In Thousands)
	Interest and fee income	$	70,130		$	67,616		$	204,130		$	205,727
	Interest expense	(19,648		)	(22,682		)	(55,508		)	(65,779		)
	Provision for loan losses	(11,133		)	(20,028		)	(27,616		)	(51,784		)
	Net interest income, net of provision for loan losses	39,349			24,906			121,006			88,164
	Non-interest income:
	Interchange income	67,474			58,914			192,377			166,364
	Other non-interest income	3,481			3,288			9,784			9,105
	Total non-interest income	70,955			62,202			202,161			175,469
	Less: Customer rewards costs	(38,866		)	(33,665		)	(109,081		)	(93,718		)
	Financial Services revenue	$	71,438		$	53,443		$	214,086		$	169,915

The following table sets forth the components of our Financial Services revenue as a percentage of average total credit card loans for the periods presented below.
		Three Months Ended				Nine Months Ended
		October 1,		October 2,		October 1,		October 2,
		2011		2010		2011		2010
	Interest and fee income	10.1	%	10.9	%	10.1	%	11.2	%
	Interest expense	(2.8	)	(3.7	)	(2.7	)	(3.6	)
	Provision for loan losses	(1.6	)	(3.2	)	(1.4	)	(2.8	)
	Interchange income	9.7		9.5		9.5		9.1
	Other non-interest income	0.5		0.5		0.5		0.5
	Customer rewards costs	(5.6	)	(5.4	)	(5.4	)	(5.1	)
	Financial Services revenue	10.3	%	8.6	%	10.6	%	9.3	%

CABELA'S INCORPORATED AND SUBSIDIARIES
KEY STATISTICS OF FINANCIAL SERVICES BUSINESS
(Unaudited)
Key statistics reflecting the performance of our Financial Services business are shown in the following charts:
	Three Months Ended
	October 1, 2011			October 2, 2010			Increase			%
							(Decrease)			Change
	(Dollars in Thousands Except Average Balance per Account )
Average balance of credit card loans (1)	$	2,772,434		$	2,473,655		$	298,779		12.1	%
Average number of active credit card accounts	1,412,676			1,309,007			103,669			7.9
Average balance per active credit card account (1)	$	1,963		$	1,890		$	73		3.9
Net charge-offs on credit card loans (1)	$	15,439		$	23,819		$	(8,380	)	(35.2	)
Net charge-offs as a percentage of average
credit card loans (1)	2.23		%	3.85		%	(1.62		)%
(1) Includes accrued interest and fees

	Nine Months Ended
	October 1, 2011			October 2, 2010			Increase			%
							(Decrease)			Change
	(Dollars in Thousands Except Average Balance per Account )
Average balance of credit card loans (1)	$	2,687,167		$	2,436,794		$	250,373		10.3	%
Average number of active credit card accounts	1,390,768			1,295,705			95,063			7.3
Average balance per active credit card account (1)	$	1,932		$	1,881		$	51		2.7
Net charge-offs on credit card loans (1)	$	49,026		$	82,681		$	(33,655	)	(40.7	)
Net charge-offs as a percentage of average credit card loans (1)	2.43		%	4.52		%	(2.09		)%
(1) Includes accrued interest and fees

CABELA'S INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
To supplement the Company's condensed 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. Selling, distribution, and administrative expenses; 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 (i) the impairment and restructuring charges recorded in the three and nine months ended October 1, 2011, and October 2, 2010, and (ii) the effect of the charge recorded in fiscal 2010 relating to matters arising out of the Federal Deposit Insurance Corporation's ("FDIC") compliance examination of World's Foremost Bank ("WFB"). The impairment and restructuring charges include asset write-downs and severance and related costs. In light of the nature and magnitude, we believe these items 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.
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 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 operating income, net income, earnings per diluted share, or any other measure calculated in accordance with GAAP. The following table reconciles these financial measures to the related GAAP financial measures for the periods presented.
	Three Months Ended
	October 1, 2011									October 2, 2010
	GAAP Basis			Amounts			Non-GAAP			GAAP Basis			Amounts			Non-GAAP
	As Reported			Added Back			As Adjusted			As Reported			Added Back			As Adjusted
	(Dollars in Thousands Except Earnings Per Share)
Total revenue	$	678,610		$	—		$	678,610		$	643,251		$	—		$	643,251
Total cost of revenue (exclusive of depreciation and amortization)	387,525			—			387,525			384,493			—			384,493
Selling, distribution, and administrative expenses	234,108			—			234,108			219,120			—			219,120
Impairment and restructuring charges (1)	3,488			(3,488		)	—			2,997			(2,997		)	—
Operating income	53,489			3,488			56,977			36,641			2,997			39,638
Interest expense, net	(6,177		)	—			(6,177		)	(6,669		)	—			(6,669		)
Other non-operating income	1,699			—			1,699			1,821			—			1,821
Income before provision for income taxes	49,011			3,488			52,499			31,793			2,997			34,790
Provision for income taxes (2)	15,704			1,149			16,853			12,051			1,136			13,187
Net income	$	33,307		$	2,339		$	35,646		$	19,742		$	1,861		$	21,603
Earnings per basic share	$	0.48		$	0.03		$	0.51		$	0.29		$	0.03		$	0.32
Earnings per diluted share (3)	$	0.47		$	0.03		$	0.50		$	0.29		$	0.03		$	0.31

	Nine Months Ended
	October 1, 2011									October 2, 2010
	GAAP Basis			Amounts			Non-GAAP			GAAP Basis			Amounts			Non-GAAP
	As Reported			Added Back			As Adjusted			As Reported			Added Back			As Adjusted
	(Dollars in Thousands Except Earnings Per Share)
Total revenue	$	1,827,421		$	—		$	1,827,421		$	1,728,831		$	—		$	1,728,831
Total cost of revenue (exclusive of depreciation and amortization)	1,037,971			—			1,037,971			1,013,577			—			1,013,577
Selling, distribution, and administrative expenses (4)	663,322			—			663,322			627,174			(18,000		)	609,174
Impairment and restructuring charges (1)	4,443			(4,443		)	—			4,831			(4,831		)	—
Operating income	121,685			4,443			126,128			83,249			22,831			106,080
Interest expense, net	(18,322		)	—			(18,322		)	(17,794		)	—			(17,794		)
Other non-operating income	5,656			—			5,656			5,345			—			5,345
Income before provision for income taxes	109,019			4,443			113,462			70,800			22,831			93,631
Provision for income taxes (2)	36,227			1,476			37,703			24,943			8,037			32,980
Net income	$	72,792		$	2,967		$	75,759		$	45,857		$	14,794		$	60,651
Earnings per basic share	$	1.05		$	0.04		$	1.09		$	0.68		$	0.22		$	0.90
Earnings per diluted share (3)	$	1.02		$	0.04		$	1.06		$	0.67		$	0.22		$	0.88
(1) Reflects (i) impairment losses recognized in the three and nine months ended October 1, 2011, and October 2, 2010, respectively, to reflect the fair value on certain assets and (ii) restructuring charges for severance and related benefits recognized in the three and nine months ended October 1, 2011.
(2) The provision for income taxes for the non-GAAP measurements for the respective periods were based on the effective tax rate calculated under GAAP for those respective periods on a year-to-date basis.
(3) Amounts may not foot across due to rounding from the calculations using basic and diluted weighted average shares outstanding.
(4) Reflects an accrual recognized in the first quarter of fiscal 2010 relating to matters arising out of the FDIC's compliance examination conducted in 2009 of WFB. As a result of an agreement in principle to settle all matters with the FDIC, the Company reduced that liability in the fourth quarter of 2010 by $10 million pre-tax. On March 3, 2011, WFB and the FDIC settled all matters related to this issue. All restitution amounts and the civil money penalty were paid in the first fiscal quarter of 2011.