Dick's Sporting Goods 2014 Annual Report Download - page 107

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DICK’S SPORTING GOODS // 2014 ANNUAL REPORT // 81
RETURN ON INVESTED CAPITAL (ROIC)
2014 2013 2012 2011 2010 2009
(Dollars in thousands)
Net income $ 344,198 $ 337,598 $ 290,709 $ 263,906 $ 182,077 $ 135,359
Merger and integration costs, after tax - - - - - 6,068
Golf Galaxy store closing costs, after tax - - - - 9,826 -
Litigation settlement charge, after tax - - - (1,289) 6,493 -
Gain on sale of investment, after tax - - - (8,738) - -
Impairment of available-for-sale
investments, after tax - - 27,636 - - -
Recovery of previously
impaired asset, after tax - (4,342) - - - -
Asset impairment charge, after tax - 4,729 - - - -
Gain on sale of asset, after tax (8,657) - - - - -
Golf restructuring charges, after tax 12,219 - - - - -
Adjusted net income 347,760 337,985 318,345 253,879 198,396 141,427
Net income for ROIC calculation 347,760 337,985 318,345 253,879 198,396 141,427
Interest expense, after tax 1,929 1,757 3,620 8,321 8,410 2,726
Rent expense, net, after tax 264,874 246,896 233,010 216,201 208,411 203,984
Net income for ROIC after
adjustments (numerator) $ 614,563 $ 586,638 $ 554,975 $ 478,401 $ 415,217 $ 348,137
Total stockholders’ equity $ 1,832,225 $ 1,692,179 $ 1,587,324 $ 1,632,745 $ 1,363,581 $ 1,083,227
Total debt including capital and
financing lease obligations 6,450 7,375 16,275 159,022 140,841 142,243
Operating leases capitalized at
8x annual rent expense 3,531,656 3,291,953 3,106,794 2,882,682 2,778,812 2,719,789
Total debt and operating leases capitalized
at 8x annual rent expense 3,538,106 3,299,328 3,123,069 3,041,704 2,919,653 2,862,032
Total capital (total stockholders’ equity
+ total debt and operating leases
capitalized at 8x annual rent expense) 5,370,331 4,991,507 4,710,393 4,674,449 4,283,234 3,945,259
Average total capital (denominator) 1 $ 5,180,919 $ 4,850,950 $ 4,692,421 $ 4,478,841 $ 4,114,246 $ 3,787,111
ROIC (Adjusted) 11.9% 12.1% 11.8% 10.7% 10.1% 9.2%
ROIC using GAAP amounts 2 11.8% 12.1% 11.2% 10.9% 9.7% 9.0%
1 Average total capital is calculated as the sum of the current and prior year ending total capital divided by two.
2 ROIC using GAAP amounts was derived as the quotient of GAAP Net income for ROIC not adjusted (numerator) and average total capital.