Cabela's 2007 Annual Report Download - page 23

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17
Current and future government regulation may negatively impact demand for our products and our
ability to conduct our business.
Federal, state, and local laws and regulations can affect our business and the demand for products. These laws
and regulations include:
• FTC regulations governing the manner in which orders may be solicited and prescribing other obligations
in fulfilling orders and consummating sales;
• laws and regulations that prohibit or limit the sale, in certain states and localities, of certain items we offer
such as firearms, black powder firearms, ammunition, bows, knives, and similar products;
• the Bureau of Alcohol, Tobacco, Firearms and Explosives governing the manner in which we sell firearms
and ammunition;
• laws and regulations governing hunting and fishing;
• laws and regulations relating to the collecting and sharing of non-public customer information; and
• U.S. customs laws and regulations pertaining to proper item classification, quotas, payment of duties
and tariffs, and maintenance of documentation and internal control programs which relate to importing
taxidermy which we display in our retail stores.
Changes in these laws and regulations or additional regulation could cause the demand for and sales of our
products to decrease. Moreover, complying with increased or changed regulations could cause our operating expenses
to increase. This could adversely affect our revenue and profitability.
Our inability or failure to protect our intellectual property could have a negative impact on our operating
results.
Our trademarks, service marks, copyrights, patents, trade secrets, domain names, and other intellectual property
are valuable assets that are critical to our success. Effective trademark and other intellectual property protection
may not be available in every country in which our products are made available. The unauthorized reproduction or
other misappropriation of our intellectual property could diminish the value of our brands or goodwill and cause a
decline in our revenue. Any infringement or other intellectual property claim made against us, whether or not it has
merit, could be time-consuming, result in costly litigation, cause product delays, or require us to enter into royalty or
licensing agreements. As a result, any such claim could have an adverse effect on our operating results.
Failure to successfully integrate any business we acquire could have an adverse impact on our
profitability.
We may from time to time acquire businesses which we believe to be complementary to our business. Acquisitions
may result in difficulties in assimilating acquired companies and may result in the diversion of our capital and our
management’s attention from other business issues and opportunities. We may not be able to successfully integrate
operations that we acquire, including their personnel, financial systems, distribution, operations, and general
operating procedures. If we fail to successfully integrate acquisitions, we could experience increased costs associated
with operating inefficiencies, which could have an adverse effect on our profitability.
Risks Related to Our Financial Services Business
We may experience limited availability of financing or variation in funding costs for our Financial
Services business, which could limit growth of the business and decrease our profitability.
Our Financial Services business requires a significant amount of cash to operate. These cash requirements will
increase if our credit card originations increase or if our cardholders’ balances or spending increase. Historically, we
have relied upon external financing sources to fund these operations, and we intend to continue to access external
sources to fund our growth. A number of factors such as our financial results, changes within our organization,
disruptions in the capital markets, our corporate and regulatory structure, interest rate fluctuations, general
economic conditions, and accounting and regulatory changes and relations could make such financing more difficult
or impossible to obtain or more expensive.