Cabela's 2004 Annual Report Download - page 103

CABELA'S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
(Dollar Amounts in Thousands Except Share and Per Share Amounts)
classiÑcation are also subject to qualitative judgment by the regulators with respect to components, risk
weightings and other factors.
The quantitative measures established by regulation to ensure capital adequacy require that WFB
maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as
deÑned in the regulations) to risk-weighted assets (as deÑned) and of Tier 1 capital (as deÑned).
Management believes, as of Ñscal year ends 2004 and 2003, that the WFB met all capital adequacy
requirements to which they are subject.
Ratio Required to
Be Considered
Actual ""Well-Capitalized''
Amount Ratio Amount Ratio
2004:
Total Capital to Risk-Weighted Assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $67,394 25.6% $26,311 10.0%
Tier I Capital to Risk-Weighted Assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $66,064 25.1% $15,786 6.0%
Tier I Capital to Average AssetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $66,064 36.0% $ 9,177 5.0%
2003:
Total Capital to Risk-Weighted Assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $49,460 26.4% $18,734 10.0%
Tier I Capital to Risk-Weighted Assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $48,350 25.8% $11,241 6.0%
Tier I Capital to Average AssetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $48,350 31.3% $ 7,733 5.0%
14. EMPLOYEE BENEFIT PLANS
The Company has a deÑned contribution 401(k) savings plan, a deferred compensation plan, and an
employee charge program.
401(k) Savings Plan Ì All employees are eligible to defer up to 80% of their wages to the 401(k)
savings plan, subject to certain limitations. The Company has a mandatory match of up to 50% of the
employee deferrals, up to 6% of eligible wages as deÑned. All employees who complete one year of service
and attain age 18 are eligible for the mandatory match. The money purchase plan was merged into the
401(k) on July 15, 2002. In addition, the employee stock ownership plan (ESOP) was merged into the
401(k) eÅective March 1, 2004. Following these mergers, a discretionary contribution up to 12.5% can be
made on eligible wages as deÑned. Certain non-exempt and all exempt employees of Cabela's and World's
Foremost Bank are eligible for this discretionary contribution. Total expenses from mandatory contributions
were $4,345, $2,468 and $1,192 in 2004, 2003 and 2002, respectively. Total expenses from discretionary
contributions were $5,385, $5,065 and $4,575 in 2004, 2003 and 2002, respectively.
Deferred Compensation Plan Ì The Company has a self-funded, nonqualiÑed deferred compensation
plan for the beneÑt of certain key employees. The plan was amended on December 31, 2004, to restrict
any further contributions, and to change the interest rate adjustment period from a monthly to a semi-
annual basis. The Company pays interest compounded daily at the declared interest rate. The declared rate
was prime plus 1.75% and 8.5% in Ñscal 2004 and 2003 respectively. Upon death, disability, termination or
retirement, employees can receive their balance in a lump sum payment or equal monthly payments over a
Ñve, ten or twelve year period. The charge to interest expense under the Ñxed rate portion of the plan was
approximately $595, $2,967 and $2,246 during the Ñscal years ended 2004, 2003 and 2002, respectively.
The participants also could elect an additional investment option where the investment performance is
equal to the increase in the price of the Company's stock. The charge to expense under the ""equity''
portion of the plan was $0, $1,960 and $726 for the Ñscal years ended 2004, 2003 and 2002, respectively.
The equity portion of the plan was terminated in 2003 as required in connection with the recapitalization
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