Cabela's 2011 Annual Report Download - page 63

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charge-offs are more likely to increase. We have mitigated periods of economic weakness by selecting a customer
base that is very creditworthy. The median Fair Isaac Corporation (“FICO”) scores of our credit cardholders were
788 at the end of 2011 compared to 790 at the end of 2010.
The following table shows our credit card loans outstanding at the end of 2011 and 2010 segregated by the
number of months passed since the accounts were opened.
2011 2010
Months Since Account Opened
Loans
Outstanding
Percentage
of Total
Loans
Outstanding
Percentage
of Total
(Dollars in Thousands)
6 months or less $ 130,097 4.1% $ 112,745 4.0%
7 – 12 months 132,111 4.2 89,911 3.2
13 – 24 months 247,858 7.8 245,231 8.8
25 – 36 months 269,071 8.5 293,577 10.5
37 – 48 months 294,398 9.3 323,730 11.6
49 – 60 months 323,327 10.2 265,451 9.5
61 – 72 months 264,117 8.3 232,027 8.3
73 – 84 months 235,413 7.4 199,868 7.1
More than 84 months 1,271,121 40.2 1,037,672 37.0
Tot al $ 3,167,513 100.0% $ 2,800,212 100.0%
Liquidity and Capital Resources
Overview
Our Retail and Direct business segments and our Financial Services business segment have significantly
differing liquidity and capital needs. We believe that we will have sufficient capital available from cash on hand,
our revolving credit facility, and other borrowing sources to fund our foreseeable cash requirements and near-term
growth plans. At the end of 2011 and 2010, cash on a consolidated basis totaled $305 million and $136 million, of
which $117 million and $82 million, respectively, was cash at our Financial Services business segment which will
be utilized to meet this segment’s liquidity requirements. In 2011, our Financial Services business issued $622
million in certificates of deposit, renewed its $260 million variable funding facility, entered into two new variable
funding facilities totaling $765 million, and completed two securitization transactions totaling $600 million. We
evaluate the credit markets for certificates of deposit and securitizations to determine the most cost effective source
of funds for our Financial Services business segment.
As of December 31, 2011, cash and cash equivalents held by one of our foreign subsidiaries totaled $35
million. Our intent is to permanently reinvest a portion of these funds outside the United States for capital expansion,
and to repatriate a portion of these funds. Based on our current projected capital needs and the current amount of cash
and cash equivalents held by our foreign subsidiaries, we do not anticipate incurring any material tax costs beyond
our accrued tax position in connection with any repatriation, but we may be required to accrue for unanticipated
additional tax costs in the future if our expectations or the amount of cash held by our foreign subsidiaries change.
On October 11, 2011, the Federal Reserve, the Office of the Comptroller of Currency, the FDIC, and the
SEC issued proposed regulations implementing certain provisions under the Reform Act limiting proprietary
trading and sponsorship or investment in hedge funds and private equity funds (the “Volcker Rule”). The proposed
regulations are complex and have been the subject of extensive comment. As proposed, these regulations may apply
to us and could limit our ability to engage in the types of transactions covered by the Volcker Rule and may impose
potentially burdensome compliance, monitoring, and reporting obligations. There remains considerable uncertainty
regarding whether the final regulations implementing the Volcker Rule will differ from the proposed regulations,
and the effect of any final regulations on our Retail and Direct businesses and WFB.