Cabela's 2010 Annual Report Download - page 118

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108
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)), designed to ensure that information required to be disclosed in
reports filed under the Exchange Act is recorded, processed, summarized, and reported within specified time
periods. Disclosure controls and procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange
Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial
Officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required
disclosure.
In connection with this annual report on Form 10-K, our Chief Executive Officer and Chief Financial Officer
evaluated, with the participation of our management, the effectiveness of our disclosure controls and procedures as of
the end of the period covered by this report. Based on management’s evaluation, our Chief Executive Officer and Chief
Financial Officer each concluded that our disclosure controls and procedures were effective as of January 1, 2011.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting for the Company. Internal control over financial reporting is a process to provide reasonable assurance
regarding the reliability of our financial reporting for external purposes in accordance with accounting principles
generally accepted in the United States of America.
With the participation of our Chief Executive Officer and our Chief Financial Officer, management evaluated
the effectiveness of our internal control over financial reporting as of January 1, 2011, based on the criteria
established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission. Based on this evaluation, management concluded that our internal control over
financial reporting was effective as of January 1, 2011.
The independent registered public accounting firm of Deloitte & Touche LLP, as auditors of our consolidated
financial statements included in this annual report on Form 10-K, has issued an attestation report on the
effectiveness of our internal control over financial reporting based on the criteria established in Internal Control—
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Their
report is included in this Item 9A.
Changes in Internal Control Over Financial Reporting
In October 2010, we implemented substantial information technology system changes in support of our
customer relationship management system in our Direct business. During implementation, we encountered issues
with these system changes that affected our ability to take and process customer orders and to deliver products to
our customers in an efficient manner. Process level controls related to revenue recording systems (fulfillment and
order entry), cash, accounts receivable, gift cards liability, and credit card points liability were impacted by these
system changes. These implementation issues had an adverse impact on our business during the quarter ended
January 1, 2011, including the loss of sales, but were remediated by the end of 2010. There were no other changes in
our internal control over financial reporting that occurred during the quarter ended January 1, 2011, that materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.