Cabela's 2011 Annual Report Download - page 106

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96
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
The liabilities for health and workers’ compensation claims incurred but not reported are based upon
internally developed calculations. These estimates are regularly evaluated for adequacy based on the most current
information available, including historical claim payments, expected trends, and industry factors.
19. REGULATORY CAPITAL REQUIREMENTS
WFB is subject to various regulatory capital requirements administered by the Federal Deposit Insurance
Corporation 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 for both periods presented.
As of December 31, 2011 and 2010, the most recent notification from the Federal Deposit Insurance
Corporation 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.
Actual
Capital Requirements
to be Classified
Adequately-Capitalized
Capital Requirements
to be Classified
Well-Capitalized
Amount Ratio Amount Ratio Amount Ratio
2011:
Total Capital to Risk-Weighted Assets $ 388,370 11.8% $ 262,770 8.0% $ 328,462 10.0%
Tier I Capital to Risk-Weighted Assets 346,914 10.6 131,385 4.0 197,077 6.0
Tier I Capital to Average Assets 346,914 10.8 128,186 4.0 160,233 5.0
2010:
Total Capital to Risk-Weighted Assets 348,968 12.2 229,687 8.0 287,108 10.0
Tier I Capital to Risk-Weighted Assets 312,400 10.9 114,843 4.0 172,265 6.0
Tier I Capital to Average Assets 312,400 10.2 122,875 4.0 153,594 5.0
At the beginning of 2010, WFB’s required capital was increased under regulatory capital requirements of
the applicable federal agencies due to the consolidation of the assets and liabilities of the Trust on WFB’s balance
sheet. In order for WFB to continue to meet the minimum requirements for the “well-capitalized” classification
under the regulatory framework for prompt corrective action, Cabela’s invested $150,000 in 2010 in additional
paid-in capital in WFB which qualified as Tier 1 capital.
20. STOCK BASED COMPENSATION PLANS AND EMPLOYEE BENEFIT PLANS
Stock-Based Compensation - The Company recognized total share-based compensation expense of $12,911,
$11,198, and $9,410 in 2011, 2010, and 2009, respectively. Compensation expense related to the Company’s share-
based payment awards is recognized in selling, distribution, and administrative expenses in the consolidated