Cabela's 2012 Annual Report Download - page 76

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66
The following table provides summary information concerning other commercial commitments at
December 29, 2012:
(In Thousands)
Letters of credit (1) $ 15,712
Standby letters of credit (1) 6,431
Revolving line of credit for boat and ATV inventory (2) 133
Cabela’s issued letters of credit 55,455
Bank – federal funds (3) -
Secured variable funding obligations of the Trust (4) 325,000
Total $ 402,731
(1) Our credit agreement allows for maximum borrowings of $415 million including lender letters of credit and
standby letters of credit. At December 29, 2012, the total amount of borrowings under this revolving line of
credit was $15 million, which consisted of lender letters of credit and standby letters of credit. Our credit
agreement for operations in Canada is for $15 million CAD, of which all was available for borrowing at
December 29, 2012.
(2) The line of credit for boat and all-terrain vehicles financing is limited by the aforementioned $415 million
revolving line of credit to $100 million of secured collateral.
(3) The maximum amount that can be borrowed on the federal funds agreements is $85 million.
(4) The maximum amount that can be borrowed from third party investors on the variable funding facilities is
$875 million.
Off-Balance Sheet Arrangements
Operating Leases – We lease various items of office equipment and buildings. Rent expense for these
operating leases is recorded in selling, distribution, and administrative expenses in the consolidated statements of
income. Future obligations are shown in the preceding contractual obligations table.
Credit Card Limits – The Financial Services segment bears off-balance sheet risk in the normal course of
its business. One form of this risk is through the Financial Services segment’s commitment to extend credit to
cardholders up to the maximum amount of their credit limits. The aggregate of such potential funding requirements
totaled $21 billion above existing balances at the end of 2012. These funding obligations are not included in our
consolidated balance sheet. While the Financial Services segment has not experienced, and does not anticipate that
it will experience, a significant draw down of unfunded credit lines by its cardholders, such an event would create
a cash need at the Financial Services segment which likely could not be met by our available cash and funding
sources. The Financial Services segment has the right to reduce or cancel these available lines of credit at any time.