Dick's Sporting Goods 2010 Annual Report Download - page 58

Tax Matters
Presently, the Company does not believe that there are any tax matters that could materially affect the consolidated financial
statements.
Seasonality and Quarterly Results
The Company’s business is subject to seasonal fluctuations. Significant portions of the Company’s net sales and profits are
realized during the fourth quarter of the Company’s fiscal year, which is due in part to the holiday selling season and in part to
sales of cold weather sporting goods and apparel. Any decrease in fiscal fourth quarter sales, whether because of a slow holiday
selling season, unseasonable weather conditions or otherwise, could have a material adverse effect on our business, financial
condition and operating results for the entire fiscal year.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements required to be filed hereunder are set forth on pages 43 through 67 of this report.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
The Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including
the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the disclosure
controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as
of January 29, 2011, the Company’s disclosure controls and procedures are effective in ensuring that material information relating
to the Company, including its consolidated subsidiaries, required to be disclosed by the Company in reports that it files or submits
under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and
forms, and that it is accumulated and communicated to management, including our principal executive and financial officers, or
persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. There were no
changes in the Company’s internal control over financial reporting during the quarter ended January 29, 2011 that have materially
affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
Report of Management on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. 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. Internal control
over financial reporting includes: maintaining records that in reasonable detail accurately and fairly reflect our transactions;
providing reasonable assurance that transactions are recorded as necessary for preparation of our financial statements; providing
reasonable assurance that receipts and expenditures of company assets are made in accordance with management authorization;
and providing reasonable assurance that unauthorized acquisition, use or disposition of Company assets that could have a
material effect on our financial statements would be prevented or detected on a timely basis. Because of its inherent limitations,
internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our financial
statements would be prevented or detected.
Our management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the
framework and criteria established in Internal Control — Integrated Framework, issued by the Committee of Sponsoring Organiza-
tions of the Treadway Commission. This evaluation included review of the documentation of controls, evaluation of the design
effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this evaluation. Based on this
evaluation, management concluded that the Company’s internal control over financial reporting was effective as of January 29,
2011.
Deloitte & Touche LLP, an independent registered public accounting firm, has issued an attestation report on the Company’s
internal control over financial reporting included on the following page of this document.
38 Dick’s Sporting Goods, Inc. ¬2010 Annual Report