Dick's Sporting Goods 2008 Annual Report Download - page 68

As of January 31, 2009, total unrecognized stock-based compensation expense related to nonvested shares of restricted stock was
approximately $7.6 million, before income taxes, which is expected to be recognized over a weighted average period of approximately
2.14 years.
Effective July 18, 2008, two executives at the Company’s Golf Galaxy subsidiary stepped down from their positions. Stock options
granted to these executives exercisable for up to 630,000 shares of the Company’s common stock at an exercise price of $27.30 per
share and all stock options previously granted to these executives that were exercisable for Golf Galaxy common stock (converted
to options exercisable for Company’s common stock as a result of the acquisition of Golf Galaxy by the Company) became fully vested
upon their departure. The 150,000 shares of restricted common stock granted to these executives on February 13, 2007 that were
to vest based only on the passage of time also became fully vested. The executives forfeited any rights to an additional 150,000
shares of restricted common stock granted to them on February 13, 2007 that were to vest based on the attainment of certain
performance metrics. The accelerated vesting of these stock options and restricted stock net of the reversal of previously recognized
compensation expense for these individuals resulted in a pre-tax charge of $0.5 million, which is recorded in merger and integration
costs on the Consolidated Statements of Operations.
Employee Stock Purchase Plan – The Company has an employee stock purchase plan, which provides that eligible employees may
purchase shares of the Company’s common stock. There are two offering periods in a fi scal year, one ending on June 30 and the
other on December 31, or as otherwise determined by the Company’s compensation committee. The employee’s purchase price
is 85% of the lesser of the fair market value of the stock on the fi rst business day or the last business day of the semi-annual offering
period. Employees may purchase shares having a fair market value of up to $25,000 for all purchases ending within the same
calendar year. The total number of shares issuable under the plan is 4,620,000. There were 380,438 and 204,955 shares issued
under the plan during fi scal 2008 and 2007, respectively, leaving 1,050,397 shares available for future issuance. The fi scal 2008
shares were issued at an average price of $13.60.
Common Stock, Class B Common Stock and Preferred Stock – During fi scal 2004, the Company fi led an amendment to its Amended and
Restated Certifi cate of Incorporation to increase the number of authorized shares of our common stock, par value $0.01 per share
from 100,000,000 to 200,000,000 and Class B common stock, par value $0.01 per share from 20,000,000 to 40,000,000. In addition,
the Company’s corporate charter provides for the authorization of the issuance of up to 5,000,000 shares of preferred stock.
The holders of common stock generally have rights identical to holders of Class B common stock, except that holders of common
stock are entitled to one vote per share and holders of Class B common stock are entitled to ten votes per share. A related party and
relatives of the related party hold all of the Class B common stock. These shares can only be held by members of this group and are
not publicly tradable. Each share of Class B common stock can be converted into one share common stock at the holder’s option.
12. Income Taxes
The components of the provision for income taxes are as follows:
2008 2007 2006
(In thousands)
Current:
Federal $ 88,874 $ 118,305 $ 62,573
State 13,899 16,882 11,247
102,773 135,187 73,820
Deferred:
Federal (42,105) (28,983) 631
State (3,801) (3,713) 623
(45,906) (32,696) 1,254
Total provision $ 56,867 $ 102,491 $ 75,074
DICK’S SPORTING GOODS, INC. 2008 ANNUAL REPORT
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