Cabela's 2004 Annual Report Download - page 72

‚ The Bureau of Alcohol, Tobacco, Firearms and Explosives governing the manner in which we sell
Ñrearms and ammunition;
‚ laws and regulations governing hunting and Ñshing;
‚ 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 classiÑcation, quotas, payment of duties
and tariÅs, and maintenance of documentation and internal control programs which relate to
importing taxidermy which we display in our destination 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 aÅect our revenues and proÑtability.
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. EÅective 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 revenues. 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 eÅect on our operating results.
Failure to successfully integrate any business we acquire could have an adverse impact on our
proÑtability.
We may from time to time acquire businesses which we believe to be complementary to our business.
Acquisitions may result in diÇculties 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, Ñnancial systems,
distribution, operations and general operating procedures. If we fail to successfully integrate acquisitions,
we could experience increased costs associated with operating ineÇciencies which could have an adverse
eÅect on our proÑtability.
Risks Related to Our Financial Services Business
We may experience limited availability of Ñnancing or variation in funding costs for our Ñnancial
services business, which could limit growth of the business and decrease our proÑtability.
Our Ñnancial services business requires a signiÑcant 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 Ñnancing 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
Ñnancial results and losses, changes within our organization, disruptions in the capital markets, our
corporate and regulatory structure, interest rate Öuctuations, general economic conditions and accounting
and regulatory changes and relations could make such Ñnancing more diÇcult or impossible to obtain or
more expensive.
We have been, and will continue to be, particularly reliant on funding from securitization transactions
for our Ñnancial services business. Securitization funding sources include both a commercial paper conduit
facility and Ñxed and Öoating rate term securitizations. Our commercial paper conduit facility expires in
March of 2005 and our Ñrst term securitization expires in November of 2006. A failure to renew this
facility, to resecuritize the term securitizations as they mature or to add additional commercial paper
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