Cabela's 2012 Annual Report Download - page 65

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55
The following table shows the activity in our allowance for loan losses and charge off activity for the
years ended:
2012 2011 2010
(Dollars in Thousands)
Balance, beginning of year $ 73,350 $ 90,900 $ 1,374
Change in allowance for loan losses upon
consolidation of the Trust - - 114,573
73,350 90,900 115,947
Provision for loan losses 42,760 39,287 66,814
Charge-offs (68,834) (75,599) (108,111)
Recoveries 18,324 18,762 16,250
Net charge-offs (50,510) (56,837) (91,861)
Balance, end of year $ 65,600 $ 73,350 $ 90,900
Net charge-offs on credit card loans $ (50,510) $ (56,837) $ (91,861)
Charge-offs of accrued interest and fees (recorded as a
reduction in interest and fee income) (7,293) (7,683) (12,555)
Total net charge-offs including accrued interest and fees $ (57,803) $ (64,520) $ (104,416)
Net charge-offs including accrued interest and fees as a
percentage of average credit card loans 1.87% 2.35% 4.23%
For 2012, net charge-offs as a percentage of average credit card loans decreased to 1.87%, down 48 basis
points compared to 2.35% for 2011. We believe our charge-off levels remain well below industry averages. Our net
charge-off rates and allowance for loan losses have decreased due to improved outlooks in the quality of our credit
card portfolio evidenced by lower delinquencies and delinquency roll-rates and favorable charge-off trends.
Aging of Credit Cards Loans Outstanding
The following table shows our credit card loans outstanding at the end of 2012 and 2011 segregated by the
number of months passed since the accounts were opened.
2012 2011
Months Since Account Opened
Loans
Outstanding
Percentage
of Total
Loans
Outstanding
Percentage
of Total
(Dollars in Thousands)
6 months or less $ 153,709 4.3% $ 130,097 4.1%
7 – 12 months 126,586 3.6 132,111 4.2
13 – 24 months 318,397 9.0 247,858 7.8
25 – 36 months 265,345 7.4 269,071 8.5
37 – 48 months 281,501 7.9 294,398 9.3
49 – 60 months 292,506 8.2 323,327 10.2
61 – 72 months 323,986 9.1 264,117 8.3
73 – 84 months 266,641 7.4 235,413 7.4
More than 84 months 1,528,818 43.1 1,271,121 40.2
Total $ 3,557,489 100.0% $ 3,167,513 100.0%