Cabela's 2004 Annual Report Download - page 102

CABELA'S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
(Dollar Amounts in Thousands Except Share and Per Share Amounts)
12. COMMITMENTS
The Company leases various buildings, computer equipment, signs and storage space under operating
leases, which expire on various dates through 2012. Rent expense on these leases was $5,360, $4,303 and
$3,702 for the Ñscal years ended 2004, 2003 and 2002, respectively. The following is a schedule of future
minimum annual rental payments under operating leases at Ñscal year ended 2004:
2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,611
2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,159
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,123
2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 336
2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 336
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 869
$7,434
WFB enters into Ñnancial instruments with oÅ balance sheet risk in the normal course of business
through the origination of unsecured credit card loans. These Ñnancial instruments consist of commitments
to extend credit, totaling approximately $5,952,159 and $4,931,164, in addition to any other balances a
cardholder might have at years end 2004 and 2003, respectively. These instruments involve, to varying
degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The principal
amounts of these instruments reÖect the maximum exposure WFB has in the instruments. WFB has not
experienced and does not anticipate that all of the customers will exercise their entire available line of
credit at any given point in time. WFB has the right to reduce or cancel these available lines of credit at
any time.
The Company has started construction projects in various Retail site locations. Initial economic
development bond agreements have been signed. For agreements that have been signed as of the end of
Ñscal 2004, the total anticipated initial capital outlay in construction and bonds is estimated to be
$182.3 million for 2005 and $96.3 million for 2006. Subsequent to the end of Ñscal 2004, the Company has
either entered into agreements for, or announced it is negotiating, four additional Retail site locations. The
Company expects the total costs of each of these destination retail stores, including the cost of economic
development bonds, to fall in the estimated range of $40 to $80 million each. The Company expects to
incur costs for one of these locations in 2005, two in 2006 and one in 2007. The cost of the location to be
opened in 2005 is estimated at $52.3 million. The remainder of the locations are still being negotiated and
will be subject to ordinary conditions to closing.
In addition, the Company is obligated to fund $28 million of future economic development bonds
relating to its Wheeling, West Virginia development agreement. The funds are designated for use of
construction of additional distribution center facilities within the Company's development district.
Construction and funding of the bonds will take place throughout 2005 and 2006.
13. REGULATORY CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS
WFB is subject to various regulatory capital requirements administered by the Federal Deposit
Insurance Corporation (FDIC) and the Nebraska State Department of Banking and Finance. Under
capital adequacy guidelines and the regulatory framework for prompt corrective action, WFB must meet
speciÑc capital guidelines that involve quantitative measures of their assets, liabilities and certain oÅ-
balance sheet items as calculated under regulatory accounting practices. WFB's capital amounts and
90