Cabela's 2011 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)
There were no amounts outstanding at December 31, 2011, or January 1, 2011, under the Company’s
unsecured revolving credit facilities. There were no amounts outstanding at December 31, 2011, or January 1, 2011,
under the unsecured revolving credit facility for $15,000 CAD.
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).
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, a default would trigger and all principal and outstanding
interest would immediately be due and payable. At December 31, 2011, and January 1, 2011, the Company was in
compliance with all financial covenants under the credit agreements and unsecured notes. We anticipate that we
will continue to be in compliance with all financial covenants under our credit agreements and unsecured notes
through at least the next 12 months.
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
2012 $ 1,000 $ 8,143
2013 1,000 8,143
2014 1,000 8,143
2015 1,000 8,143
2016 1,000 223,143
Thereafter 19,500 76,285
24,500 332,000
Capital lease amount representing interest (11,578)
Present value of net scheduled lease payments $ 12,922 12,922
Total long-term debt and capital leases $ 344,922