Cabela's 2014 Annual Report Download - page 69

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59
Financing Activities – Cash provided by financing activities increased $598 million in 2014 to $957 million
compared to 2013. This net change was primarily due to an increase in net borrowings on secured obligations of the
Trust by the Financial Services segment of $675 million. We also had increases of $185 million in net borrowings
on our revolving credit facilities and inventory financing. Partially offsetting these increases was a decrease of
$285 million relating to changes in time deposits.
The following table presents the borrowing activities of our merchandising business and the Financial
Services segment for the years ended:
2014 2013
(In Thousands)
Borrowings on revolving credit facilities and inventory financing,
net of repayments $ 184,857 $ 3,023
Secured obligations of the Trust, net 1,025,000 349,750
Repayments of long-term debt (8,418) (8,402)
Borrowings, net of repayments $ 1,201,439 $ 344,371
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:
2014 2013
(In Thousands)
Amounts available for borrowing under credit facilities (1) $ 795,000 $ 435,000
Principal amounts outstanding (180,000) (2,932)
Outstanding letters of credit and standby letters of credit (20,064) (17,378)
Remaining borrowing capacity, excluding the
Financial Services segment facilities $ 594,936 $ 414,690
(1) Consists of our revolving credit facilities of $775 million and $415 million at December 27, 2014,
and December 28, 2013, respectively, and $20 million CAD credit facility at December 27, 2014, and
December 28, 2013, 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 27, 2014, the entire $85 million of borrowing capacity was available.
Our $775 million unsecured credit agreement requires us to comply with certain financial and other
customary covenants, including:
x 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);
x a leverage ratio (as defined) of no more than 3.00 to 1 as of the last day of any fiscal quarter; and
x a minimum consolidated net worth standard (as defined) as of the last day of each fiscal quarter.
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 27, 2014, 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.