Cabela's 2008 Annual Report Download - page 83

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78
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
Cash Flows from Securitizations:
The following table summarizes the cash flows received from the securitization trust during the years ended:
2008 2007 2006
Proceeds from new securitizations, net $ 292,687 $336,000 $267,000
Collections used by the trust to purchase new balances in revolving
credit card securitizations 8,929,868 8,040,206 6,727,177
Servicing fees received 36,315 30,077 24,352
Other cash flows received by the transferor other than servicing fees 187,590 188,633 157,259
Key Assumptions:
The following are the key economic assumptions used to estimate the fair value of the retained interests resulting
from the securitization of credit card loans for the years ended:
2008 2007
Weighted average payment rates 26.93 to 29.78% 29.88 to 33.16%
Weighted average life in years 0.708 to 0.750 0.542 to 0.708
Weighted average expected credit losses 3.28 to 6.06% 2.57 to 3.06%
Servicing fee 2.00% 1.25 to 2.00%
Discount rate 10.00 to 16.60% 10.12 to 16.60%
Weighted average interest rate paid to investors 4.11 to 5.35% 5.47 to 5.64%
Sensitivity Analysis:
The key economic assumptions used and the sensitivity of the current fair value of retained interests of $61,605
at December 27, 2008, to immediate 10% and 20% adverse changes in those assumptions are as follows:
Impact on Fair Value of
an Adverse Change of
Assumption 10% 20%
Weighted average payment rates 26.93% $ (1,117) $ (2,114)
Weighted average expected credit losses 6.06 (3,183)(6,518)
Discount rate 14.25 to 15.25 (268)(538)
Weighted average interest paid to investors 4.11 (203)(406)