Cabela's 2005 Annual Report Download - page 100

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollar Amounts in Thousands Except Share and Per Share Amounts)
12. COMMITMENTS
The Company leases various buildings, computer equipment, signs and storage space under operating leases,
which expire on various dates through 2025. Rent expense on these leases as well as other month to month rentals
was $6,793, $5,360 and $4,303 for the fiscal years ended 2005, 2004 and 2003, respectively. The following is a
schedule of future minimum annual rental payments under operating leases at fiscal year ended 2005:
2006 ............................................................. $ 3,110
2007 ............................................................. 2,880
2008 ............................................................. 3,316
2009 ............................................................. 3,304
2010 ............................................................. 3,304
Thereafter ......................................................... 33,247
$49,161
WFB enters into financial instruments with off balance sheet risk in the normal course of business through
the origination of unsecured credit card loans. These financial instruments consist of commitments to extend
credit, totaling approximately $7,478,208 and $5,952,159, in addition to any other balances a cardholder might
have at years end 2005 and 2004, respectively. These instruments involve, to varying degrees, elements of credit
risk in excess of the amount recognized in the balance sheet. The principal amounts of these instruments reflect
the maximum exposure WFB has in the instruments. WFB has not experienced and does not anticipate that all of
the customers will exercise their entire available line of credit at any given point in time. WFB has the right to
reduce or cancel these available lines of credit at any time.
The Company has entered into real estate purchase, construction and/or economic development bond
agreements for various Retail site locations. For agreements that have been signed as of the end of fiscal 2005,
the total anticipated initial capital outlays are estimated to be $132.7 million for 2006 and $150.8 million for
2007.
In addition, the Company is obligated to fund $23.1 million of future economic development bonds relating
to its Wheeling, West Virginia development agreement. The funds are designated for use of construction of
additional distribution center facilities within the Company’s development district. Construction and funding of
the bonds will take place throughout 2006.
13. REGULATORY CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS
WFB is subject to various regulatory capital requirements administered by the Federal Deposit Insurance
Corporation (FDIC) and the Nebraska State Department of Banking and Finance. Under capital adequacy
guidelines and the regulatory framework for prompt corrective action, WFB must meet specific capital guidelines
that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under
regulatory accounting practices. WFB’s capital amounts and classification also are subject to qualitative
judgment by the regulators with respect to components, risk weightings and other factors.
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