Dick's Sporting Goods 2014 Annual Report Download - page 40

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14
We rely on a single third-party provider to maintain and operate certain aspects of our www.DICKS.com operations, and
disruptions with the provider or in the services it provides to us could materially affect our reputation, operations or
financial results.
We have contracted with a single third party to operate and host our DICKS.com eCommerce website and provide related
fulfillment and customer service. We rely on that party's operational, privacy and security procedures and controls to operate
and host our DICKS.com eCommerce business. Failure by such third party to adequately service these aspects of our
DICKS.com eCommerce business could result in a prolonged disruption that affects our customers' ability to utilize our website
or receive product in a timely manner. As a result, we may lose customer sales and / or experience increased costs, which could
materially affect our reputation, operations or financial results.
Our ability to operate and expand our business and to respond to changing business and economic conditions will be
dependent upon the availability of adequate capital. The terms of our senior secured revolving credit facility impose certain
restrictions that may impair our ability to access sufficient capital.
The operation and growth of our business, including opening new stores and expanding our eCommerce business, and our
ability to respond to changing business and economic conditions depend on the availability of adequate capital, which in turn
depends on cash flow generated by our business and, if necessary, the availability of equity or debt capital. We cannot provide
assurance that our cash flow will be sufficient to meet these needs or that we would be able to obtain equity or debt capital on
acceptable terms or at all. Our current senior secured revolving credit facility contains provisions that limit our ability to incur
additional indebtedness or make substantial asset sales, which might otherwise be used to finance our operations. In the event of
our insolvency, liquidation, dissolution or reorganization, the lenders under our senior secured revolving credit facility would be
entitled to payment in full from our assets before distributions, if any, were made to our stockholders.
If we are unable to generate sufficient cash flows from operations in the future, and if availability under our current senior
secured revolving credit facility is not sufficient, we may have to obtain additional financing. We cannot provide assurance that
we could obtain refinancing or additional financing on favorable terms or at all. Our liquidity or access to capital could also be
adversely affected by unforeseen changes in the financial markets and global economy.
We are subject to costs and risks associated with increased or changing laws and regulations affecting our business,
including those relating to the sale of consumer products and firearms and ammunition.
We operate in a complex regulatory and legal environment that exposes us to compliance and litigation risks that could
materially affect our operations and financial results. These laws may change, sometimes significantly, as a result of political,
economic or social events. Some of the federal, state or local laws and regulations that affect us include those relating to
consumer products, product liability or consumer protection; eCommerce, data protection and privacy; advertisement and
marketing; labor and employment; firearms, ammunition, knives, food items or other regulated products; custom or import; and
intellectual property.
The complexity of the regulatory environment in which we operate and the related cost of compliance are both increasing due
to additional or changing legal and regulatory requirements, our ongoing expansion into new markets and new channels and the
fact that foreign laws occasionally conflict with domestic laws. In addition to potential damage to our reputation and brand,
failure to comply with applicable federal, state and local laws and regulations such as those outlined above may result in our
being subject to claims, lawsuits, fines and adverse publicity that could have a material adverse effect on our business, results of
operations and financial condition.