Cabela's 2014 Annual Report Download - page 110

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
As of December 31, 2014 and 2013, 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 (defined in the regulations)
as set forth in the following table. There are no conditions or events since that notification that management
believes have changed WFB’s category.
Actual
Capital Requirements
to be Classified
Adequately-Capitalized
Capital Requirements
to be Classified
Well-Capitalized
Amount Ratio Amount Ratio Amount Ratio
2014:
Total Capital to Risk-Weighted Assets $ 527,873 11.3% $ 372,851 8.0% $ 466,064 10.0%
Tier I Capital to Risk-Weighted Assets 471,301 10.1 186,425 4.0 279,638 6.0
Tier I Capital to Average Assets 471,301 10.3 183,481 4.0 229,351 5.0
2013:
Total Capital to Risk-Weighted Assets $ 511,617 12.5% $ 327,218 8.0% $ 409,022 10.0%
Tier I Capital to Risk-Weighted Assets 460,465 11.3 163,609 4.0 245,413 6.0
Tier I Capital to Average Assets 460,465 11.1 165,341 4.0 206,677 5.0
19. STOCK BASED COMPENSATION PLANS AND EMPLOYEE BENEFIT PLANS
Stock-Based Compensation – The Company recognized total stock-based compensation expense of $17,498,
$14,969, and $13,733 in 2014, 2013, and 2012, respectively. Compensation expense related to the Company’s
stock-based payment awards is recognized in selling, distribution, and administrative expenses in the consolidated
statements of income. Compensation cost for awards is recognized using a straight-line amortization method over
the vesting period. At December 27, 2014, the total unrecognized deferred stock-based compensation balance for all
equity awards issued, net of expected forfeitures, was $26,656, net of tax, which is expected to be amortized over a
weighted average period of 2.6 years.
The fair value of options granted was estimated on the date of the grant using the Black-Scholes option
pricing model. The expected volatility for 2014, 2013, and 2012 was based on the historical volatility of the
Company’s common stock. The fair value of options in the years presented was estimated using the Black-Scholes
model with the following weighted average assumptions:
2014 2013 2012
Risk-free interest rate based on the U.S. Treasury yield curve 1.52% 0.76% 0.84%
Dividend yield ---
Expected volatility 46% 47% 48%
Weighted average expected life (in years) 5.9 5.9 4.7
Weighted average grant date fair value of options granted $ 27.83 $ 22.60 $ 15.72
Employee Stock Plans – The Cabela’s Incorporated 2013 Stock Plan (the “2013 Stock Plan”), which replaced the
Company’s 2004 Stock Plan, provides for the grant of incentive stock options, non-statutory stock options (“NSOs”),
stock appreciation rights, performance stock, performance units, restricted stock, and restricted stock units to
employees and consultants. Non-employee directors are eligible to receive any type of award offered under the 2013
Stock Plan except incentive stock options. Awards granted under the 2013 Stock Plan have a term of no greater than
ten years from the grant date and become exercisable under the vesting schedule determined at the time of grant. As
of December 27, 2014, the maximum number of shares available for awards under the 2013 Stock Plan was 3,337,974.