Dick's Sporting Goods 2014 Annual Report Download - page 108

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82 // DICK’S SPORTING GOODS // 2014 ANNUAL REPORT
NON-GAAP NET INCOME AND EARNINGS PER SHARE RECONCILIATION
Golf
Gain on Sale Restructuring Non-GAAP
Year Ended January 31, 2015 As Reported of Asset1 Charges2 Total
(In thousands, except per share data)
Net sales $ 6,814,479 $ - $ - $ 6,814,479
Cost of goods sold, including occupancy and distribution costs 4,727,813 - (2,405) 4,725,408
Gross Profit 2,086,666 - 2,405 2,089,071
Selling, general and administrative expenses 1,502,089 14,428 (17,960) 1,498,557
Pre-opening expenses 30,518 - - 30,518
Income From Operations 554,059 (14,428) 20,365 559,996
Interest expense 3,215 - - 3,215
Other income (5,170) - - (5,170)
Income Before Income Taxes 556,014 (14,428) 20,365 561,951
Provision for income taxes 211,816 (5,771) 8,146 214,191
Net Income $ 344,198 $ (8,657) $ 12,219 $ 347,760
Earnings Per Common Share:
Basic $ 2.89 $ 2.92
Diluted $ 2.84 $ 2.87
Weighted Average Common Shares Outstanding:
Basic 119,244 119,244
Diluted 121,238 121,238
1 During the first quarter of 2014, the Company recorded a pre-tax $14.4 million gain on sale of a Gulfstream G650 corporate aircraft.
The provision for income taxes was calculated at 40%, which approximates the Company’s blended tax rate.
2 During the second quarter of 2014, the Company recorded pre-tax restructuring charges of $20.4 million including a $14.3 million non-
cash impairment of trademarks and store assets, severance charges of $3.7 million resulting from the elimination of specific staff in the
golf area of its DICK’S stores and consolidation of DICK’S golf and Golf Galaxy corporate and administrative functions, and a $2.4 million
write-down of excess golf inventories. The provision for income taxes was calculated at 40%, which approximates the Company’s
blended tax rate.