Cabela's 2004 Annual Report Download - page 50

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Our average managed receivables outstanding increased by $184 million, or 26.1%, to $889 million in
Ñscal 2004 from $705 million in Ñscal 2003. We believe that as credit card accounts mature they are less
likely to charge-oÅ and less likely to be closed. The following table shows our managed receivables
outstanding at Ñscal year end 2004 and 2003 by months since the account opened.
2004 2003
Receivables Percentage of Receivables Percentage of
Outstanding Total Outstanding Total
(Dollars in thousands)
Months Since Account Opened
6 months or Less ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 53,803 5.0% $ 53,382 6.1%
7 Ì 12 months ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 70,600 6.5% 64,177 7.3%
13 Ì 24 months ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 155,500 14.4% 151,633 17.4%
25 Ì 36 months ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 169,804 15.7% 170,959 19.6%
37 Ì 48 months ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 183,254 16.9% 223,776 25.6%
49 Ì 60 months ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 233,624 21.5% 79,719 9.1%
61 Ì 72 months ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 82,640 7.6% 28,564 3.3%
73 Ì 84 months ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28,514 2.6% 19,553 2.2%
85 ° months ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 105,381 9.8% 81,910 9.4%
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,083,120 100.0% $873,673 100.0%
Delinquencies
We consider the entire balance of an account, including any accrued interest and fees, delinquent if
the minimum payment is not received by the payment due date. Our aging methodology is based on the
number of completed billing cycles during which a customer has failed to make a required payment.
Delinquencies not only have the potential to reduce earnings by increasing the unrealized loss recognized
to reduce the loans to market value and reduction in securitization income, but they also result in
additional operating costs dedicated to resolving the delinquencies. The following chart shows the
percentage of our managed accounts that have been delinquent as of the end of Ñscal years 2004, 2003 and
2002.
Fiscal Year
2004 2003 2002
Number of days delinquent
Greater than 30 days ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.71% 0.80% 0.94%
Greater than 60 days ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.41% 0.43% 0.49%
Greater than 90 days ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.19% 0.18% 0.21%
Charge-oÅs
Gross charge-oÅs reÖect the uncollectible principal, interest and fees on a customer's account.
Recoveries reÖect the amounts collected on previously charged-oÅ accounts. We believe that most
bankcard issuers charge oÅ accounts at 180 days. We generally charge oÅ accounts the month after an
account becomes 90 days contractually delinquent, except in the case of cardholder bankruptcies and
cardholder deaths, which are charged oÅ at the time of notiÑcation. As a result, our charge-oÅ rates are
38