Cabela's 2008 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 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

89
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
17. REGULATORY CAPITAL REQUIREMENTS
WFB is subject to various regulatory capital requirements administered by the FDIC and the Nebraska State
Department of Banking and Finance. Under capital adequacy guidelines and the regulatory framework for prompt
corrective action, WFB must meet specific capital guidelines that involve quantitative measures of WFB’s assets,
liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. WFB’s capital
amounts and classification are also subject to qualitative judgment by the regulators with respect to components, risk
weightings, and other factors.
The quantitative measures established by regulation to ensure capital adequacy require that WFB maintain
minimum amounts and ratios (defined in the regulations) as set forth in the following table. WFB exceeded the
minimum requirements for the well-capitalized category under the regulatory framework for prompt corrective
action provisions for both periods presented.
As of December 31, 2008 and 2007, the most recent notification from the FDIC categorized WFB as well
capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized WFB
must maintain certain amounts and ratios as set forth in the following table. There are no conditions or events since
that notification that management believes have changed the institution’s category.
2008
Ratio Required to be Considered
Actual Adequately-Capitalized Well-Capitalized
Amount Ratio Amount Ratio Amount Ratio
Total Capital to Risk-Weighted Assets $ 166,611 28.1% $ 47,460 8.0% $ 59,325 10.0%
Tier I Capital to Risk-Weighted Assets 140,886 23.8 23,730 4.0 35,595 6.0
Tier I Capital to Average Assets 140,886 23.6 23,842 4.0 29,803 5.0
2007
Ratio Required to be Considered
Actual Adequately-Capitalized Well-Capitalized
Amount Ratio Amount Ratio Amount Ratio
Total Capital to Risk-Weighted Assets $ 118,030 16.8% $ 56,102 8.00% $ 70,127 10.0%
Tier I Capital to Risk-Weighted Assets 114,336 16.3 28,051 4.0 42,076 6.0
Tier I Capital to Average Assets 114,336 27.6 16,568 4.0 20,710 5.0
In December 2008, WFB received $25,000 from Cabela’s in exchange for 250,000 shares of WFB convertible
participating preferred stock. If management elected to covert the participating preferred stock to WFB common
stock, the $25,000 would qualify as Tier 1 capital.
18. STOCK BASED COMPENSATION AND STOCK OPTION PLANS
Under the provisions of FAS 123R, we recorded share-based compensation expense of $6,535 ($4,222 after-tax,
or $.06 per diluted share), $4,944 ($3,115 after-tax, or $0.05 per diluted share), and $3,615 ($2,259 after-tax, or $.03
per diluted share) for 2008, 2007, and 2006, respectively. Compensation expense related to our share-based payment
awards is recorded in selling, distribution, and administrative expenses in the consolidated statements of income.
During 2006, share-based compensation expense was recorded for awards granted since 2004 but not yet vested
as of January 1, 2006. For these awards, we recognized compensation expense using the accelerated or graded method
of amortization. Compensation cost for awards granted after the adoption date is recognized using a straight-line