Cabela's 2009 Annual Report Download - page 20

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11
Taxation Applicable to Us. We pay applicable corporate income, franchise, and other taxes to states in which
our retail stores are physically located. As we open more retail stores, we will be subject to tax in an increasing
number of state and local taxing jurisdictions. Upon entering a new state, we historically applied for a private letter
ruling from the state’s revenue department stating which types of taxes our Retail and Direct businesses would be
required to collect and pay in such state, and we accrued and remitted the applicable taxes based upon the private
letter ruling. Although we believe we properly accrued for these taxes based on our interpretation of the tax code
and prior private letter rulings, state taxing authorities may challenge our interpretation or attempt to revoke their
prior private letter rulings. If state taxing authorities are successful, additional taxes, interest, and related penalties
may be assessed. See “Risk Factors - Our historic sales tax collection policy for our Direct business may subject us
to liabilities for unpaid sales taxes on past Direct business sales.”
Other Regulations Applicable to Us. We must comply with federal, state, and local regulations, including
the federal Brady Handgun Violence Prevention Act, which require us, as a federal firearms licensee, to perform a
pre-sale background check of purchasers of hunting rifles and other firearms.
We also are subject to a variety of state laws and regulations relating to, among other things, advertising,
pricing, and product safety/restrictions. Some of these laws prohibit or limit the sale, in certain states and locations,
of certain items we offer such as black powder firearms, ammunition, bows, knives, and similar products. State and
local government regulation of hunting can also affect our business.
We are subject to certain federal, state, and local laws and regulations relating to the protection of the environment
and human health and safety. We believe that we are in substantial compliance with the terms of environmental laws
and that we have no liabilities under such laws that we expect to have a material adverse effect on our business,
results of operations, or financial condition.
Our Direct business is subject to the Mail or Telephone Order Merchandise Rule and related regulations
promulgated by the Federal Trade Commission (“FTC”) which affect our catalog mail order operations. FTC
regulations, in general, govern the solicitation of orders, the information provided to prospective customers, and the
timeliness of shipments and refunds. In addition, the FTC has established guidelines for advertising and labeling
many of the products we sell.
Intellectual Property
Cabela’s®, Cabela’s CLUB®, Cabelas.com®, World’s Foremost Outfitter®, World’s Foremost Bank®, Bargain
Cave®, and Herters® are among our registered service marks or trademarks with the United States Patent and
Trademark Office. We have numerous pending applications for trademarks. In addition, we own several other
registered and unregistered trademarks and service marks involving advertising slogans and other names and phrases
used in our business. We own certain patents associated with various products. We also own trade secrets, domain
names, and copyrights, which have been registered for each of our catalogs.
We believe that our trademarks are valid and valuable and intend to maintain our trademarks and any related
registrations. We do not know of any material pending claims of infringement or other challenges to our right to use
our marks in the United States or elsewhere. We have no franchises or other concessions which are material to our
operations.
Available Information
Our website address is www.cabelas.com. We make available on our website, free of charge, our annual reports
on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports,
as soon as reasonably practicable after we electronically file such material with or furnish it to the Securities and
Exchange Commission (“SEC”). Our SEC reports can be accessed through the investor relations section of our
website. The information on our website, whether currently posted or in the future, is not part of this or any other
report we file with or furnish to the SEC.