Dick's Sporting Goods 2007 Annual Report Download - page 38

Dick’s Sporting Goods, Inc. | 2007 Annual Report36
Uncertain Tax Positions We account for uncertain tax positions in accordance with FIN 48. The application of income tax law is
inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make
many subjective assumptions and judgments regarding our income tax exposures. Interpretations of and guidance surrounding
income tax laws and regulations change over time. As such, changes in our subjective assumptions and judgments can materially
affect amounts recognized in the Consolidated Balance Sheets and Statements of Income.
Forward-Looking Statements
We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995)
contained in this Annual Report or made by our management involve risks and uncertainties and are subject to change based on
various important factors, many of which may be beyond our control. Accordingly, our future performance and financial results may
differ materially from those expressed or implied in any such forward-looking statements. Accordingly, investors should not place
undue reliance on forward-looking statements as a prediction of actual results. You can identify these statements as those that
may predict, forecast, indicate or imply future results, performance or advancements and by forward-looking words such as “believe,”
“anticipate,” “expect,” “estimate,” “predict,” “intend,” “plan,” “project,” “will,” “will be,” “will continue,” “will result,” “could,” “may,”
“might” or any variations of such words or other words with similar meanings. Forward-looking statements address, among other
things, our expectations, our growth strategies, including our plans to open new stores, our efforts to increase profit margins and
return on invested capital, plans to grow our private label business, projections of our future profitability, results of operations, capital
expenditures or our financial condition or other “forward-looking” information and includes statements about revenues, earnings,
spending, margins, liquidity, store openings and operations, inventory, private label products, our actions, plans or strategies.
The following factors, among others, in some cases have affected and in the future could affect our financial performance and actual
results and could cause actual results for fiscal 2008 and beyond to differ materially from those expressed or implied in any forward-
looking statements included in this report or otherwise made by our management: the intense competition in the sporting goods
industry and actions by our competitors; the availability of retail store sites on terms acceptable to us; the cost of real estate and
other items related to our stores; our inability to manage our growth, open new stores on a timely basis and expand successfully in
new and existing markets; changes in consumer demand; changes in general economic and business conditions and in the specialty
retail or sporting goods industry in particular including the potential impact of natural disasters or national and international security
concerns on us or the retail environment; unauthorized disclosure of sensitive or confidential information; risks relating to product
liability claims and the availability of sufficient insurance coverage relating to those claims and risks relating to the regulation of the
products we sell, such as hunting rifles and ammunition; our relationships with our suppliers, distributors and manufacturers and
their ability to provide us with sufficient quantities of products and risks associated with relying on foreign sources of production;
risks relating to problems with or disruption of our current management information systems; any serious disruption at our
distribution or return facilities; the seasonality of our business; regional risks because our stores are generally concentrated in the
eastern half of the United States; the outcome of litigation or legal actions against us; risks relating to operational and financial
restrictions imposed by our Credit Agreement; factors associated with our pursuit of strategic acquisitions and risks and uncertainties
associated with assimilating acquired companies; our ability to access adequate capital; the loss of our key executives, especially
Edward W. Stack, our Chairman, Chief Executive Officer and President; our ability to meet our labor needs; risks related to the
economic impact or the effect on the U.S. retail environment relating to instability and conflict in the Middle East or elsewhere; that
we are controlled by our Chief Executive Officer and his relatives, whose interests may differ from our stockholders; our quarterly
operating results and comparable store sales may fluctuate substantially; our current anti-takeover provisions could prevent or delay
a change-in-control of the Company; our ability to repay or make the cash payments under our senior convertible notes; various
risks associated with our exclusive brand offerings; changes in our business strategies and other factors discussed in other reports
or filings filed by us with the Securities and Exchange Commission.
In addition, we operate in a highly competitive and rapidly changing environment; therefore, new risk factors can arise, and it is
not possible for management to predict all such risk factors, nor to assess the impact of all such risk factors on our business or the
extent to which any individual risk factor, or combination of factors, may cause results to differ materially from those contained in
any forward-looking statement. We do not assume any obligation and do not intend to update any forward-looking statements
except as may be required by the securities laws.
On February 13, 2007, Dick’s Sporting Goods, Inc. (“Dick’s”) acquired Golf Galaxy, Inc. (“Golf Galaxy”) which became a wholly owned
subsidiary of Dick’s by means of a merger of Dick’s subsidiary with and into Golf Galaxy. On November 30, 2007, Dick’s acquired
all of the outstanding stock of Chick’s Sporting Goods, Inc. (“Chick’s”), which also became a wholly-owned subsidiary of Dick’s.
Due to these acquisitions, additional risks and uncertainties arise that could affect our financial performance and actual results and
could cause actual results for fiscal 2008 and beyond to differ materially from those expressed or implied in any forward-looking
statements included in this report or otherwise made by our management. Such risks, which are difficult to predict with a level of
certainty and may be greater than expected, include, among others, risk associated with combining businesses and/or with
assimilating acquired companies.