Cabela's 2010 Annual Report Download - page 100

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90
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
Certain of the long-term debt agreements contain various covenants and restrictions such as the
maintenance of minimum debt coverage, net worth, and financial ratios. The significant financial ratios and net
worth requirements in the long-term debt agreements are 1) a limitation of funded debt to be less than 60% of
consolidated total capitalization; 2) cash flow fixed charge coverage ratio, as defined, of no less than 2.0 to 1 as
of the last day of any quarter; and 3) a minimum consolidated adjusted net worth (as defined). See Note 13 for
information on the covenants and restrictions contained in Cabela’s $350,000 revolving credit facility.
In addition, the debt contains cross default provisions to other outstanding credit facilities. In the event that
the Company failed to comply with these covenants and the failure to comply would go beyond 30 days, a default
would trigger and all principal and outstanding interest would immediately be due and payable. At January 1, 2011,
the Company was in compliance with all financial covenants under the credit agreements and unsecured notes.
The Company has a lease agreement for our distribution facility in Wheeling, West Virginia. The lease term
is through June 2036. The monthly installments are $83 and the lease contains a bargain purchase option at the end
of the lease term. The Company accounted for this lease as a capital lease and recorded the additional leased asset
at the present value of the future minimum lease payments using a 5.9% implicit rate. The additional leased asset
was recorded at $5,649 and is being amortized on a straight-line basis over 30 years.
Aggregate expected maturities of long-term debt and scheduled capital lease payments for the years shown
are as follows:
Scheduled Capital
Lease Payments Long-Term Debt
Maturities
2011 $1,000 $ -
2012 1,000 8,143
2013 1,000 8,143
2014 1,000 8,143
2015 1,000 8,143
Thereafter 20,500 299,428
25,500 332,000
Capital lease amount representing interest (12,348)
Present value of net scheduled lease payments $ 13,152 13,152
Total long-term debt and capital leases $ 345,152
15. IMPAIRMENT AND RESTRUCTURING CHARGES
Impairment and restructuring charges consisted of the following for the years ended:
2010 2009 2008
Impairment losses on:
Property and equipment $ 3,792 $43,721 $1,632
Land held for sale 1,834 16,046 854
Economic development bonds - 2,099 558
Goodwill and intangible assets - 460 1,070
5,626 62,326 4,114
Restructuring charges:
Severance and related benefits - 4,468 1,670
Total $5,626 $66,794 $5,784