Cabela's 2008 Annual Report Download - page 85

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80
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
6. ECONOMIC DEVELOPMENT BONDS
Economic development bonds consisted of the following at the years ended:
2008
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair
Value
Classified as:
Available-for-sale $122,501 $35 $(9,951) $ 112,585
2007
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair
Value
Classified as:
Available-for-sale $91,427 $ 9 $ (1,299) $ 90,137
Held to maturity 7,898 - - 7,898
$99,325 $ 9 $ (1,299) $ 98,035
The carrying value and fair value of economic development bonds by contractual maturity at the end of 2008
was as follows:
Cost Fair
Value
2009 $2,680 $2,520
2010 1,757 1,702
2011 1,897 1,837
2012 2,428 2,325
2013 3,079 2,924
Thereafter 110,660 101,277
$122,501 $112,585
At the end of 2008 the Company transferred the remaining economic development bond classified as held to
maturity because of management’s intent to sell the bond. At the end of 2008 and 2007, the fair value of certain
economic development bonds, including those reclassified from held to maturity to held for sale, were determined
to be below carrying value, with the decline in fair value deemed to be other than temporary. These fair value
adjustments totaling $1,280 and $6,733, respectively, reduced the carrying value of the economic development bond
portfolio at the end of 2008 and 2007, respectively.
Interest earned on the economic development bonds totaled $6,305, $5,680, and $9,574 for 2008, 2007, and
2006, respectively. There were no realized gains or losses in 2008, 2007, or 2006.