Cabela's 2011 Annual Report Download - page 66

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generally require the sponsor of a securitization transaction to retain at least 5% of the credit risk of the securitized
assets and would provide securitization sponsors with a number of options for satisfying this requirement. Each of
these options would require the sponsor to provide certain disclosures to investors a reasonable time prior to sale
and upon request to the SEC and the sponsor’s applicable federal banking regulator. In addition, the sponsor would
be subject to certain prohibitions on hedging, transferring, or financing the retained credit risk. If adopted, the
proposed regulations will likely affect most types of private securitization transactions, including those sponsored
by WFB. It is not clear how the final regulations will differ from the proposed regulations, if at all, or the impact
of the final regulations on WFB and its ability and willingness to continue to rely on the securitization market
for funding.
On January 20, 2011, under provisions of the Reform Act, the SEC adopted rules that require issuers of
asset-backed securities to disclose demand, repurchase, and replacement information through the periodic filing
of a new form with the SEC. One of these rules requires rating agencies to disclose in any report accompanying a
credit rating for an asset-backed security the representations, warranties, and enforcement mechanisms available
to investors and how they differ from those in similar securities. Also pursuant to the provisions of the Reform
Act, on January 20, 2011, the SEC issued rules that require issuers of registered asset-backed securities to perform
a review of the assets underlying the securities and to publicly disclose information relating to the review. These
rules also require issuers of asset-backed securities to make publicly available the findings and conclusions of
any third-party due diligence report obtained by the issuer. It remains to be seen whether and to what extent the
January 20, 2011, rules or any other final rules adopted by the SEC will impact WFB and its ability and willingness
to continue to rely on the securitization market for funding.
Operating, Investing and Financing Activities
The following table presents changes in our cash and cash equivalents for the years ended:
2011 2010 2009
(In Thousands)
Net cash provided by operating activities $ 366,468 $ 167,427 $ 294,020
Net cash used in investing activities (532,040) (347,570) (106,023)
Net cash provided by (used in) financing activities 333,832 (265,623) (15,916)
2011 versus 2010
Operating Activities – Cash derived from operating activities increased $199 million in 2011 compared to
2010. Inventory decreased $14 million in 2011, to a balance of $495 million, compared to an increase of $69 million
in 2010, or to a balance of $509 million. WFB paid cash out on a net basis of $17 million for credit card loans
originated at Cabela’s through our Retail and Direct businesses. Accounts payable and accrued expenses increased
$71 million in 2011 compared to a decrease of $2 million in 2010. These net increases were partially offset by a
decrease of $39 million in the provision for loan losses and an increase in prepaid expenses and other assets of
$23 million.
Investing Activities – Cash used in investing activities increased $184 million in 2011 compared to 2010.
WFB disbursed cash on a net basis for credit card loans originated externally at third parties totaling $407 million
in 2011 compared to $281 million in 2010. Cash paid for property and equipment additions totaled $127 million
in 2011 compared to $75 million in 2010. At December 31, 2011, we estimated total capital expenditures for the
development, construction, and completion of retail stores to approximate $80 million through the next 12 months.
We expect to fund these estimated capital expenditures with funds from operations.