Dick's Sporting Goods 2015 Annual Report Download - page 36

ITEM 7A.€€QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Risk
The Company maintains a revolving credit facility to support potential liquidity and capital needs. Our interest rate under the
Credit Agreement is benchmarked to, at the Company's option, a base rate or an adjusted LIBOR rate plus, in each case, an
applicable margin percentage. There were no outstanding borrowings under the Credit Agreement as of January€30, 2016 and
January€31, 2015.
The Company holds highly liquid instruments purchased with a maturity of three months or less at the date of purchase that are
classified as cash equivalents. The Company had cash equivalent investments at January€30, 2016 and January€31, 2015
totaling $35.2 million and $89.0 million, respectively. As these investments are short-term in nature, changes in interest rates
generally would not have a material impact on the valuation of these investments.
During fiscal 2015 and 2014, a hypothetical 10% increase or decrease in interest rates would not have materially affected the
Consolidated Financial Statements.
Impact of Inflation
Inflationary factors such as increases in the cost of our products and overhead costs may adversely affect our operating results.
Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a
high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and
selling, general and administrative expenses as a percentage of net sales if the selling prices of our products do not increase
with inflation.
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€38 through 61 of this Annual Report on Form 10-
K.
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€30, 2016, the Company's disclosure controls and procedures were 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 Securities and Exchange Commission's ("SEC") 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.
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