Cabela's 2008 Annual Report Download - page 59

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54
Furthermore, poor performance of WFB’s securitized credit card loans, including increased delinquencies
and credit losses, lower payment rates, or a decrease in excess spreads below certain thresholds, could result in a
downgrade or withdrawal of the ratings on the outstanding securities issued in WFB’s securitization transactions, cause
early amortization of these securities, or result in higher required credit enhancement levels. On February 19, 2009,
Moody’s Investors Service announced that it had downgraded the ratings on 21 classes of asset-backed notes issued
by WFB’s securitization trust. Downgrades could negatively impact WFB’s ability to complete other securitization
transactions on acceptable terms or at all and force WFB to rely on other potentially more expensive funding sources,
to the extent available, which would decrease our profitability. We do not believe that this downgrade will have a
significant impact on the ability of our Financial Services business to complete other securitization transactions on
acceptable terms or to access financing.
Certificates of Deposit
WFB utilizes brokered and non-brokered certificates of deposit to partially finance its operating activities.
WFB issues certificates of deposit in a minimum amount of one hundred thousand dollars in various maturities. As
of December 27, 2008, WFB had $486 million of certificates of deposit outstanding with maturities ranging from
January 2009 to April 2016 and with a weighted average effective annual fixed rate of 4.64%. This outstanding balance
compares to $161 million at December 29, 2007, with a weighted average effective annual fixed rate of 5.01%.
Impact of Inflation
We do not believe that our operating results have been materially affected by inflation during the preceding
three years. We cannot assure, however, that our operating results will not be adversely affected by inflation in the
future.
Contractual Obligations and Other Commercial Commitments
The following tables provide summary information concerning our future contractual obligations at the end
of 2008.
2009 2010 2011 2012 2013 Thereafter Total
(In Thousands)
Long-term debt (1) $ 588 $7,087 $663 $28,842 $8,889 $320,297 $366,366
Interest payments (2) 20,805 20,778 20,750 20,426 19,807 52,313 154,879
Capital lease obligations 1,075 1,000 1,000 1,000 1,000 22,500 27,575
Operating leases 5,616 5,090 4,604 4,167 4,167 83,902 107,546
Time deposits by
maturity 178,817 82,357 115,230 34,912 74,683 200 486,199
Obligations under new
store and expansion
arrangements (3) 14,159 81,969 680 1,701 735 4,578 103,822
Purchase obligations (4) 427,969 14,974 9,047 6,257 4,988 - 463,235
Deferred compensation 2,759 2,433 - - - - 5,192
Unrecognized tax
benefits - - - - - 3,076 3,076
Total $651,788 $215,688 $151,974 $97,305 $114,269 $486,866 $1,717,890
(1) Includes $20 million owed under our $430 million credit agreement, and $6 million owed under our $15 million
credit agreement for operations in Canada. Excludes amounts owed under capital lease obligations.
(2) These amounts do not include estimated interest payments due under our revolving credit facilities because the
amount that will be borrowed under these facilities in future years is uncertain.