Cabela's 2013 Annual Report Download - page 68

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58
Financing Activities – Cash provided by financing activities decreased $3 million in 2013 compared to
2012. This net change was primarily due to an increase in net borrowings on secured obligations of the Trust by
the Financial Services segment of $60 million. This increase was partially offset by a decrease in time deposits
of $45 million, which the Financial Services segment utilizes to fund its credit card operations. Also, in 2013
we repurchased shares of our common stock for $10 million compared to $29 million in 2012. We expect to
repurchase our common stock in the future to offset future equity grants and to fund any repurchases with cash
from operations.
The following table presents the borrowing activities of our merchandising business and the Financial
Services segment for the years ended:
2013 2012
(In Thousands)
Borrowings (repayments) on revolving credit facilities and inventory
financing, net $ 3,023 $ (391)
Secured obligations of the Trust, net 349,750 290,000
Repayments of long-term debt (8,402) (8,387)
Total $ 344,371 $ 281,222
The following table summarizes our availability under the Company’s debt and credit facilities, excluding the
facilities of the Financial Services segment, at the years ended:
2013 2012
(In Thousands)
Amounts available for borrowing under credit facilities (1) $ 435,000 $ 430,000
Principal amounts outstanding 2,932 -
Outstanding letters of credit and standby letters of credit (17,378) (22,143)
Remaining borrowing capacity, excluding the
Financial Services segment facilities $ 420,554 $ 407,857
(1) For 2013, consists of our revolving credit facility of $415 million and $20 million CAD from the credit facility
for our operations in Canada.
The Financial Services segment also has total borrowing availability of $85 million under its agreements to
borrow federal funds. At December 28, 2013, the entire $85 million of borrowing capacity was available.
Our $415 million unsecured credit agreement requires us to comply with certain financial and other
customary covenants, including:
• a fixed charge coverage ratio (as defined) of no less than 2.00 to 1 as of the last day of any fiscal quarter
for the most recently ended four fiscal quarters (as defined);
• a leverage ratio (as defined) of no more than 3.00 to 1 as of the last day of any fiscal quarter; and
• a minimum consolidated net worth standard (as defined).
In addition, our unsecured senior notes contain various covenants and restrictions that are usual and
customary for transactions of this type. Also, the debt agreements contain cross default provisions to other
outstanding credit facilities. In the event that we failed to comply with these covenants, a default would trigger and
all principal and outstanding interest would immediately be due and payable. At December 28, 2013, we were in
compliance with all financial covenants under our 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 the next 12 months.