Cabela's 2013 Annual Report Download - page 120

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110
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
The table below presents the estimated fair values of the Company’s financial instruments that are not carried
at fair value on our consolidated balance sheets for the years indicated. The fair values of all financial instruments
listed below were estimated based on internally developed models or methodologies utilizing observable inputs
(Level 2).
2013 2012
Carrying
Value Estimated
Fair Value Carrying
Value Estimated
Fair Value
Financial Assets:
Credit card loans, net $ 3,938,630 $ 3,938,630 $ 3,497,472 $ 3,497,472
Financial Liabilities:
Time deposits 1,069,362 1,070,831 1,048,018 1,086,411
Secured long-term obligations of the Trust 2,452,250 2,405,494 1,827,500 1,807,083
Long-term debt 331,065 363,848 336,535 373,120
Credit Card Loans. Credit card loans are originated with variable rates of interest that adjust with changing
market interest rates, so the carrying value of the credit card loans, including the carrying value of deferred credit
card origination costs, less the allowance for loan losses, approximates fair value. This valuation does not include
the value that relates to estimated cash flows generated from new loans over the life of the cardholder relationship.
Accordingly, the aggregate fair value of the credit card loans does not represent the underlying value of the
established cardholder relationship.
Time Deposits. Time deposits are pooled in homogeneous groups, and the future cash flows of those groups
are discounted using current market rates offered for similar products for purposes of estimating fair value. For all
periods presented, we have consistently applied our discounting methodologies to estimated future cash flows in
determining estimated fair value for time deposits.
Secured Long-Term Obligations of the Trust. The estimated fair value of secured long-term obligations
of the Trust is based on future cash flows associated with each type of debt discounted using current borrowing
rates for similar types of debt of comparable maturity. For all periods presented, we have consistently applied our
discounting methodologies to estimated future cash flows in determining estimated fair value for secured long-
term obligations of the Trust.
Long-Term Debt. The estimated fair value of long-term debt is based on future cash flows associated with
each type of debt discounted using current borrowing rates for similar types of debt of comparable maturity. For all
periods presented, we have consistently applied our discounting methodologies to estimated future cash flows in
determining estimated fair value for long-term debt.