Dick's Sporting Goods 2003 Annual Report Download - page 53

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Return On Invested Capital (ROIC)
2003 2002 2001 2000 1999 1998
(Dollars in thousands)
Net income $52,819 $38,264 $ 23,471 $ 8,643 $ 11,177 $ 6,325
Discontinued operations – – – 7,304 3,514 1,016
Non-recurring charge – – – – – 1,643
(Gain) on sale / loss on write-down of
non-cash investment, after tax (2,122) 1,468 – – – –
Adjusted net income 50,697 39,732 23,471 15,947 14,691 8,984
Net income for ROIC calculation 50,697 39,732 23,471 15,947 14,691 8,984
Interest expense, net, after tax 1,099 1,718 3,745 4,178 2,112 2,897
Rent expense, net, after tax 60,294 52,910 44,951 37,029 28,878 22,349
Net income for ROIC after
adjustments (numerator) $112,090 $94,360 $ 72,167 $ 57,154 $ 45,681 $ 34,230
Total stockholders’ equity $242,981 $140,499 $ 63,105 $ 38,742 $ (62,814) $ (59,587)
Total mandatorily redeemable
preferred stock –– – – 152,170 137,766
Total stockholders’ equity for
ROIC calculation 242,981 140,499 63,105 38,742 89,356 78,179
Total debt 3,916 3,577 80,861 73,647 14,931 28,131
Operating leases capitalized at 8x
annual rent expense 803,912 705,464 599,344 493,720 385,040 298,152
Total debt and operating leases
capitalized at 8x annual rent expense 807,828 709,041 680,205 567,367 399,971 326,283
Total capital (total stockholders’ equity +
total debt and operating leases
capitalized at 8x annual rent expense) 1,050,809 849,540 743,310 606,109 489,327 404,462
Average total capital (denominator)1$950,175 $796,425 $ 674,710 $ 547,718 $ 446,895 $ 402,668
ROIC 11.8% 11.8% 10.7% 10.4% 10.2% 8.5%
ROIC using GAAP amounts212.0% 11.7% 10.7% 10.6% 14.0% 11.7%
1Average total capital is calculated as the sum of the current and prior year-ending total capital divided by two.
2ROIC using GAAP amounts was derived as the quotient of net income for ROIC not adjusted (numerator) and average total capital not
adjusted for the mandatorily redeemable preferred stock (denominator).
The after-tax amounts were calculated using a 40% effective tax rate.
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