Dick's Sporting Goods 2006 Annual Report Download - page 66

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Return On Invested Capital (ROIC)
2006 2005 2004 2003 2002 2001
(Dollars in thousands)
Net income $ 112,611 $72,980 $ 68,905 $ 52,408 $ 38,137 $ 23,241
Merger integration and store
closing costs, after tax –22,674 12,202 – – –
(Gain) on sale / loss on write-down
of non cash investment, after tax –(1,106)(6,589) (2,122) 1,468 –
Adjusted net income 112,611 94,548 74,518 50,286 39,605 23,241
Net Income for ROIC Calculation 112,611 94,548 74,518 50,286 39,605 23,241
Interest expense, net, after tax 6,015 7,775 4,805 1,099 1,718 3,745
Rent expense, net, after tax 123,473 117,801 86,369 58,232 50,999 43,223
Net Income for ROIC after
adjustments (numerator) $ 242,099 $ 220,124 $ 165,692 $ 109,617 $ 92,322 $ 70,209
Total stockholders’ equity $620,550 $ 414,793 $ 313,667 $ 240,894 $ 138,823 $ 61,556
Total debt 181,017 181,201 258,004 3,916 3,577 80,861
Operating leases capitalized at 8x annual
rent expense 1,646,311 1,570,680 1,151,587 776,427 679,987 576,307
Total debt and operating leases
capitalized at 8x annual rent expense 1,827,328 1,751,881 1,409,591 780,343 683,564 657,168
Total capital (total stockholders’ equity
+ total debt and operating leases
capitalized at 8x annual rent expense) 2,447,878 2,166,674 1,723,258 1,021,237 822,387 718,724
Average total capital (denominator)1$ 2,307,276 $1,944,966 $ 1,372,247 $ 921,812 $ 770,555 $ 651,668
ROIC 10.5% 11.3% 12.1% 11.9% 12.0% 10.8%
ROIC using GAAP amounts210.5% 10.2% 11.7% 12.1% 11.8% 10.8%
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 GAAP 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.
DICK’S SPORTING GOODS, INC. 2006 ANNUAL REPORT
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