Cabela's 2008 Annual Report Download - page 60

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(3) At December 27, 2008, obligations for new store and expansion arrangements include approximately $93 million
of estimated contractual obligations and commitments associated with 1) the completion of our 2008 store
expansion obligations, 2) projected retail store-related expansion, and 3) certain obligations under economic
development bonds. The table does not include any amounts for contractual obligations and commitments
associated with retail store locations where we are in the process of certain negotiations.
(4) Our purchase obligations relate primarily to purchases of inventory, shipping, and other goods and services in
the ordinary course of business under binding purchase orders or contracts. The amount of purchase obligations
shown is based on assumptions regarding the legal enforceability against us of purchase orders or contracts we
had outstanding at the end of 2008. Under different assumptions regarding our rights to cancel our purchase
orders, or different assumptions regarding the enforceability of the purchase orders under applicable laws, the
amount of purchase obligations shown in the preceding table would be less.
The following tables provide summary information concerning other commercial commitments at the end
of 2008.
2009
(In Thousands)
Letters of credit (1) $ 8,848
Standby letters of credit (1) 7,269
Revolving line of credit for boat and ATV inventory (2) 5,162
Open account document instructions 35,622
Bank – federal funds (3) -
Total $56,901
(1) Our credit agreement allows for maximum borrowings of $430 million including lender letters of credit and
standby letters of credit. At December 27, 2008, the total amount of borrowings under this revolving line of
credit, including lender letters of credit and standby letters of credit, was $36 million. Our credit agreement for
operations in Canada is for $15 million, with $6 million available for borrowing at December 27, 2008.
(2) The line of credit for boat and ATV financing is limited by the aforementioned $430 million revolving line of
credit to $50 million of secured collateral.
(3) The maximum amount that can be borrowed on the federal funds agreements is $85 million.
Off-Balance Sheet Arrangements
Operating Leases – We lease various items of office equipment and buildings. Rent expense for these operating
leases is recorded in selling, distribution, and administrative expenses in the consolidated statements of income.
Future obligations are shown in the preceding contractual obligations table.
Credit Card Limits – WFB bears off-balance sheet risk in the normal course of its business. One form of this
risk is through WFB’s commitment to extend credit to cardholders up to the maximum amount of their credit limits.
The aggregate of such potential funding requirements totaled $13 billion above existing balances as of December 27,
2008. These funding obligations are not included on our consolidated balance sheet. While WFB has not experienced,
and does not anticipate that it will experience, a significant draw down of unfunded credit lines by its cardholders,
such an event would create a cash need at WFB which likely could not be met by our available cash and funding
sources. WFB has the right to reduce or cancel these available lines of credit at any time.
Securitizations – All of WFB’s securitization transactions have been accounted for as sales transactions and
the credit card loans relating to those pools of assets are not reflected in our consolidated balance sheet.