Cabela's 2007 Annual Report Download - page 74

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
10. TIME DEPOSITS
WFB accepts time deposits only in amounts of at least one hundred thousand dollars. All time deposits are
interest bearing. The aggregate amount of time deposits by maturity at the end of 2007 was as follows:
2008 ...................................... $ 49,219
2009 ...................................... 36,886
2010 ....................................... 37,886
2011 ....................................... 22,200
2012 ....................................... 14,200
Thereafter .................................. 200
160,591
Less current maturities ........................ (49,219)
Deposits classified as non-current liabilities ....... $111,372
For purposes of estimating fair value, time deposits are pooled in homogeneous groups and the future cash
flows of those groups are discounted using current market rates offered for similar products. At the end of 2007 and
2006, the carrying amounts of the bank’s time deposits were $160,591 and $102,196, respectively, with estimated fair
values of $162,939 and $102,739, respectively.
11. REVOLVING CREDIT FACILITIES
We have a credit agreement that provides for a $325,000 unsecured revolving credit facility. Effective August
15, 2007, we entered into an agreement to amend this credit facility - changing the expiration date of the revolving
commitment to June 30, 2012, from June 30, 2010; increasing the limit of letters of credit to $200,000 from $150,000;
and amending certain covenants. The credit facility may be increased to $450,000, and permits the issuance of up to
$200,000 in letters of credit and standby letters of credit, which are applied against the overall credit limit available
under the credit facility.
At December 29, 2007, the principal amount outstanding under this credit agreement totaled $50,576 and the
average principal balance outstanding during 2007 was $66,840. Letters of credit and standby letters of credit totaling
$59,596 were outstanding at December 29, 2007.
The weighted average interest rate for borrowings on the line of credit was 5.67% during 2007. During the term
of the facility, we are required to pay a quarterly facility fee, which ranges from 0.10% to 0.25% of the average daily
unused principal balance on the line of credit. Interest on advances on this credit facility is determined at the greater
of 1) the lead lender’s prime rate, 2) the average rate on the federal funds rate in effect for the day plus one-half of one
percent, or 3) the Eurodollar rate of interest plus a margin, as defined.
The credit agreement requires that Cabela’s comply with certain financial and other customary covenants,
including 1) a fixed charge coverage ratio (as defined) of no less than 1.50 to 1.00 as of the last day of any quarter; 2)
a cash flow leverage ratio (as defined) of no more than 3.00 to 1.00 as of the last day of any quarter; and 3) a minimum
tangible net worth standard (as defined).
The credit agreement includes a dividend provision limiting the amount that Cabela’s could pay to stockholders,
which at December 29, 2007, was not in excess of $108,933. The agreement also has a provision permitting
acceleration by the lenders in the event there is a change in control, as defined. In addition, the credit agreement
contains cross default provisions to other outstanding debt. In the event that we fail to comply with these covenants,
a default is triggered. In the event of default, all outstanding letters of credit and all principal and outstanding
interest would immediately become due and payable. We were in compliance with all financial debt covenants at
December 29, 2007.