Dick's Sporting Goods 2008 Annual Report Download - page 76

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Non-GAAP Net Income and Earnings Per Share Reconciliation
Merger and Non-GAAP
Integration Impairment Pro-forma
Fiscal 2008 Year Ended January 31, 2009 As Reported Costs Charges Total
(In thousands, except per share data)
Net sales $ 4,130,128 $ — $ — $ 4,130,128
Cost of goods sold, including occupancy and distribution costs 2,946,079 — — 2,946,079
Gross profi t 1,184,049 — — 1,184,049
Selling, general and administrative expenses 928,170 — — 928,170
Impairment of goodwill and other intangible assets 164,255 — (164,255)
Impairment of store assets 29,095 — (29,095) —
Merger and integration costs 15,877 (15,877) — —
Pre-opening expenses 16,272 — — 16,272
Income from operations 30,380 15,877 193,350 239,607
Gain on sale of asset (2,356) — — (2,356)
Interest expense, net 10,963 — — 10,963
Income before income taxes 21,773 15,877 193,350 231,000
Provision for income taxes, excluding tax impact of non-deductible
executive separation costs 54,362 (6,041) (31,688) 92,091
Tax impact of non-deductible executive separation costs 2,505 2,505 — —
Provision for income taxes 56,867 (3,536) (31,688) 92,091
Net income (loss) $ (35,094) $ 12,341 $ 161,662 $ 138,909
Earnings (loss) per common share:
Basic $ (0.31) $ 1.24
Diluted $ (0.31) $ 1.19
Weighted average common shares outstanding:
Basic 111,662 111,662
Diluted 111,662 116,650
Notes:
1 Costs related to the Golf Galaxy and Chick’s Sporting Goods integration total $18.4 million, which includes $15.9 million of pre tax “merger and integration costs” and
$2.5 million included in the Company’s provision for income taxes refl ecting the “tax impact of non-deductible executive separation costs.” The net income impact of
merger and integration costs equals $12.3 million, which includes $9.8 million for the after tax amount of “merger and integration costs” and the $2.5 million included
in the Company’s provision for income taxes refl ecting the “tax impact of non-deductible executive separation costs.”
2 Due to the net loss, as reported diluted earnings per share is calculated using basic weighted average common shares outstanding.
3 The goodwill impairment charge of $111,312 is not deductible for tax purposes.
DICK’S SPORTING GOODS, INC. 2008 ANNUAL REPORT
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