Cabela's 2008 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2008 Cabela's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 117

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117

82
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
10. TIME DEPOSITS
WFB accepts time deposits only in amounts of at least one hundred thousand dollars. All time deposits are
interest bearing. The aggregate amount of time deposits by maturity at the end of 2008 was as follows:
2009 $178,817
2010 82,357
2011 115,230
2012 34,912
2013 74,683
Thereafter 200
$486,199
Less current maturities (178,817)
Deposits classified as non-current liabilities $ 307,382
Time deposits include brokered institutional certificates of deposit totaling $447,782 and $137,191 at the end of
2008 and 2007, respectively. For purposes of estimating fair value, time deposits are pooled in homogeneous groups
and the future cash flows of those groups are discounted using current market rates offered for similar products. At
the end of 2008 and 2007, the carrying amounts of the bank’s time deposits were $486,199 and $160,591, respectively,
with estimated fair values of $508,190 and $162,939, respectively.
11. REVOLVING CREDIT FACILITIES
We have a credit agreement providing for a $430,000 unsecured revolving credit facility that was increased from
$325,000 effective April 2, 2008. Other than the increase in borrowing capacity, the terms of the credit agreement
remained unchanged. The credit facility may be increased to $450,000 and permits the issuance of up to $200,000 in
letters of credit and standby letters of credit, which reduce the overall credit limit available under the credit facility.
At December 27, 2008, and December 29, 2007, the principal amount outstanding under this credit agreement
totaled $20,000 and $50,576, respectively. During 2008 and 2007, the average principal balance outstanding on
the line of credit was $178,617 and $66,840, respectively, and the weighted average interest rate was 3.82% and
5.67%, respectively. Letters of credit and standby letters of credit totaling $16,117 and $59,596, respectively, were
outstanding at the end of 2008 and 2007. The average outstanding amount of total letters of credit during 2008 and
2007 was $32,799 and $64,309, respectively.
During the term of the facility, we are required to pay a quarterly facility fee, which ranges from 0.10% to
0.25% of the average daily unused principal balance on the line of credit. Interest on advances on this credit facility
is determined at the greater of 1) the lead lender’s prime rate, 2) the average rate on the federal funds rate in effect for
the day plus one-half of one percent, or 3) the Eurodollar rate of interest plus a margin, as defined.
The credit agreement requires that Cabela’s comply with certain financial and other customary covenants,
including 1) a fixed charge coverage ratio (as defined) of no less than 1.50 to 1.00 as of the last day of any quarter; 2)
a cash flow leverage ratio (as defined) of no more than 3.00 to 1.00 as of the last day of any quarter; and 3) a minimum
tangible net worth standard (as defined).