Cabela's 2005 Annual Report Download - page 101

CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollar Amounts in Thousands Except Share and Per Share Amounts)
The quantitative measures established by regulation to ensure capital adequacy require that WFB maintain
minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the
regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined). Management believes, as of
fiscal year ends 2005 and 2004, that WFB met all capital adequacy requirements to which it is subject.
Actual
Ratio Required
to be Considered
“Well-Capitalized”
Amount Ratio Amount Ratio
2005:
Total Capital to Risk-Weighted Assets .................... $77,852 20.7% $37,620 10.0%
Tier I Capital to Risk-Weighted Assets .................... $76,093 20.2% $22,572 6.0%
Tier I Capital to Average Assets ......................... $76,093 33.4% $11,384 5.0%
2004:
Total Capital to Risk-Weighted Assets .................... $67,394 25.6% $26,311 10.0%
Tier I Capital to Risk-Weighted Assets .................... $66,064 25.1% $15,786 6.0%
Tier I Capital to Average Assets ......................... $66,064 36.0% $ 9,177 5.0%
14. EMPLOYEE BENEFIT PLANS
The Company has a defined contribution 401(k) savings plan, a deferred compensation plan, and an
employee charge program.
401(k) Savings Plan—All employees are eligible to defer up to 80% of their wages to the 401(k) savings
plan, subject to certain limitations. For fiscal 2005, 2004 and 2003, the Company had a mandatory match of 50%
of employee deferrals up to 6% of eligible wages, as defined. All employees who complete one year of service
and attain age 18 are eligible for the mandatory match. For fiscal 2005, 2004 and 2003 a discretionary
contribution up to 12.5% could be made on eligible wages, as defined. Certain non-exempt and all exempt
employees of Cabela’s and WFB were eligible for this discretionary contribution. Total expenses from
mandatory contributions were $3,643, $4,345 and $2,468 in 2005, 2004 and 2003, respectively. Total expenses
from discretionary contributions were $6,664, $5,385 and $5,065 in 2005, 2004 and 2003, respectively. In fiscal
2006, $2,696 of the discretionary contribution that is expensed in fiscal 2005 will be paid directly to certain
employees who qualified as highly compensated employees rather than paid into the plan to meet certain
qualification tests for the plan.
On October 25, 2005, the 401(k) plan was amended to increase the mandatory match to 100% of employee
deferrals up to 6% of eligible wages, as defined. This amendment was effective January 1, 2006. In addition, the
discretionary contribution of 12.5% was eliminated.
Deferred Compensation Plan—The Company has a self-funded, nonqualified deferred compensation plan
for the benefit of certain key employees. The plan was amended on December 31, 2004 to restrict any further
contributions, and to change the interest rate adjustment period from a monthly to a semi-annual basis. The
Company pays interest compounded daily at the declared interest rate. The declared rate was prime plus 1.75% in
fiscal 2005 and fiscal 2004 and 8.5% in fiscal 2003. Upon death, disability, termination, retirement or certain age
or service requirements employees can receive their balance in a lump sum payment or in equal annual payments
over a five, ten or twelve year period. The charge to interest expense under the fixed rate portion of the plan was
approximately $633, $595 and $2,967 during the fiscal years ended 2005, 2004 and 2003, respectively. The
participants also could elect an additional investment option where the investment performance is equal to the
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