Dick's Sporting Goods 2003 Annual Report Download - page 50

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dks 03ar 48
13. COMMITMENTS AND CONTINGENCIES
The Company is involved in legal proceedings incidental to the normal conduct of its business. Although the outcome
of any pending legal proceedings cannot be predicted with certainty, management believes that adequate insurance
coverage is maintained and that the ultimate resolution of these matters will not have a material adverse effect on the
Company’s liquidity, financial position or results of operations.
14. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid by the Company totaled $1,594,000, $2,686,000 and $6,136,000 for fiscal 2003, 2002 and 2001, respectively.
Income tax payments during fiscal 2003, 2002 and 2001 were $12,424,000, $22,370,000 and $14,481,000, respectively.
During fiscal 2001, stock options representing 5,724,748 shares were exercised in exchange for a note receivable in the
amount of $6,196,000.
During fiscal 2001, the Company and GSI entered into an Internet commerce agreement that included a royalty
arrangement that was subsequently converted into an equity ownership. The Company recognized the difference between
the fair value of the GSI stock and its cost as an additional investment and deferred revenue of $4,256,000 (see Note 11).
15. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
Summarized quarterly financial information in fiscal years 2003 and 2002 is as follows:
First Second Third Fourth
Quarter Quarter Quarter Quarter
(Dollars in thousands, except earnings per share)
2003
Net sales $304,728 $ 353,521 $ 338,164 $ 474,432
Gross profit 82,848 96,548 88,839 139,504
Income from operations 11,590 25,102 6,035 43,599
Net income 6,650 15,467 4,713 25,989
Net earnings per common share – diluted $ 0.14 $ 0.31 $ 0.09 $ 0.50
First Second Third Fourth
Quarter Quarter Quarter Quarter
(Dollars in thousands, except earnings per share)
2002
Net sales $ 276,635 $ 310,123 $ 290,616 $ 395,210
Gross profit 70,040 80,352 72,129 114,871
Income from operations 8,736 20,420 5,496 34,432
Net income 4,729 11,720 2,754 19,061
Net earnings per common share – diluted $ 0.12 $ 0.31 $ 0.07 $ 0.41