Cabela's 2008 Annual Report Download - page 63

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statements on a recurring basis (at least annually). The partial adoption of FAS 157 did not have any impact on our
financial position or results of operations. We do not believe that the adoption of FAS 157, as it relates to nonfinancial
assets and liabilities, will have a material impact on our financial position or results of operations.
In December 2007, the FASB issued FAS No. 141R, Business Combinations, which replaces FAS No. 141.
FAS 141R establishes principles and requirements for how the acquirer of a business recognizes and measures in its
financial statements the identifiable assets acquired and the liabilities assumed. This statement applies prospectively
to all business combinations for which the acquisition date is on or after the beginning of the first annual reporting
period beginning on or after December 15, 2008. FAS 141R will be applicable to us beginning in fiscal year 2009.
In December 2007, the FASB issued FAS No. 160, Noncontrolling Interests in Consolidated Financial
Statements – an amendment of ARB No. 51. This statement amends ARB No. 51 to establish accounting and reporting
standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. FAS 160 is
effective for fiscal years beginning on or after December 15, 2008, including interim periods. We do not believe that
the adoption of this statement will have a material effect on our financial position or results of operations.
In February 2008, the FASB issued FASB Staff Position No. FAS 140-3, Accounting for Transfers of Financial
Assets and Repurchase Financing Transactions. The objective of this FSP is to provide implementation guidance on
accounting for a transfer of a financial asset and repurchase financing. The FSP presumes that an initial transfer of
a financial asset and a repurchase financing are considered part of the same arrangement (linked transaction) under
FAS 140. However, if certain criteria are met, the initial transfer and repurchase financing shall not be evaluated as
a linked transaction and shall not be evaluated under FAS 140. FSP FAS 140-3 is effective for fiscal years beginning
after November 15, 2008. We do not believe that the adoption of this statement will have a material effect on our
financial position or results of operations.
In March 2008, the FASB issued FAS No. 161, Disclosures about Derivative Instruments and Hedging
Activities—an amendment of FASB Statement No. 133. This statement changes the existing disclosure requirements in
FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities. FAS 161 requires enhanced
disclosures about an entity’s derivative and hedging activities. This statement is effective for financial statements
issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged.
Since the provisions of this statement are disclosure related, we do not believe that the adoption of this statement will
have a material effect on our financial position or results of operations.
On September 15, 2008, the FASB issued two exposure drafts proposing amendments to FAS 140, Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities and FASB Interpretation No. 46R,
Consolidation of Variable Interest Entities. Currently, the transfers of our bank subsidiary’s credit card receivables
in securitization transactions qualify for sale accounting treatment. The trusts used in our bank subsidiary’s
securitizations are not consolidated with us for financial reporting purposes because the trusts are qualifying special
purpose entities. Because the transfers qualify as sales and the trusts are not subject to consolidation, the assets
and liabilities of the trusts are not reported on our consolidated balance sheet under generally accepted accounting
principles. Under the proposed amendments, the concept of a QSPE would be eliminated and would modify the
consolidation model for variable interest entities and require continual reassessment of consolidation conclusions.
As proposed, these amendments would be effective for us at the beginning of our 2010 fiscal year. The proposed
amendments, if adopted, could require us to consolidate the assets and liabilities of our bank subsidiary’s securitization
trusts. This could cause us to breach certain financial covenants in our credit agreements and unsecured notes. This
could have a significant effect on our financial condition and ability to meet the capital maintenance requirements
of our bank subsidiary, as affected off-balance sheet loans would be recorded on our consolidated balance sheet and
may be subject to regulatory capital requirements. Additionally, if WFB does not meet the requirements for the well-
capitalized category under the regulatory framework for prompt corrective action, the ability to obtain certificates
of deposit could be affected.
On December 11, 2008, the FASB issued FASB Staff Position No. FAS 140-4 and FIN 46(R)-8, Disclosures
by Public Entities (Enterprises) about Transfers of Financial Assets and Interests in Variable Interest Entities. As a
result of the new FSP issuers must provide additional disclosures about transfers of financial assets and involvement