Dick's Sporting Goods 2004 Annual Report Download - page 52

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50
The following table summarizes the significant components and presentation, in the Consolidated Statements of Income, of the expenses
incurred as a result of the decision to close the Dick’s stores during 2004:
Not Related
Acquisition Related to the Acquisition Total
Cost of sales $ – $ 1,579 $ 1,579
Merger integration and store closing costs 7,924 – 7,924
Total charge to earnings $ 7,924 $ 1,579 $ 9,503
The amounts above relate to store rent, common area maintenance and real estate taxes, additional depreciation due to shortened useful
lives of the assets and expenses related to the liquidation of inventory.
5. Property and Equipment
Property and equipment are recorded at cost and consist of the following as of the end of the fiscal periods:
2004 2003
(In thousands)
Buildings and land $ 31,869 $ 2,752
Leasehold improvements 257,460 159,432
Furniture, fixtures and equipment 189,723 81,398
479,052 243,582
Less accumulated depreciation and amortization (129,954) (99,180)
Net property and equipment $ 349,098 $ 144,402
6. Accrued Expenses
Accrued expenses consist of the following as of the end of the fiscal periods:
2004 2003
(In thousands)
Accrued payroll, withholdings and benefits $ 41,245 $ 28,338
Accrued property and equipment 23,428 5,843
Other accrued expenses 76,792 37,909
Total accrued expenses $ 141,465 $ 72,090
7. Debt
The Company’s outstanding debt at January 29, 2005 and January 31, 2004 was as follows:
2004 2003
(In thousands)
Senior convertible notes $ 172,500 $–
Revolving line of credit 76,094 –
Capital leases 8,427 2,757
Third-party debt 793 834
Related party debt 190 325
Total debt 258,004 3,916
Less current portion (635) (505)
Total long-term debt $ 257,369 $ 3,411
notes to consolidated financial statements continued