Cabela's 2012 Annual Report Download - page 71

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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:
2012 2011
(In Thousands)
Amounts available for borrowing under credit facilities (1) $ 430,000 $ 430,000
Principal amounts outstanding - -
Outstanding letters of credit and standby letters of credit (22,143) (14,692)
Remaining borrowing capacity, excluding the
Financial Services segment facilities $ 407,857 $ 415,308
(1) Consists of our revolving credit facility of $415 million and $15 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 29, 2012, 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 29, 2012, 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.
Our $15 million CAD unsecured revolving credit facility, set to expire June 30, 2013, was terminated
January 31, 2013.
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.