Dick's Sporting Goods 2005 Annual Report Download - page 32

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Contractual Obligations and Other Commercial Commitments
The following table summarizes the Company’s material contractual obligations, including both on- and off-balance sheet
arrangements in effect at January 28, 2006, and the timing and effect that such commitments are expected to have on the
Company’s liquidity and capital requirements in future periods:
Less than More than
Payments Due by Period Total 1 year 1–3 years 3–5 years 5 years
(Dollars in thousands)
Contractual obligations:
Senior convertible notes, net of
discount (see Note 7) $ 172,500 $ – $ – $ – $ 172,500
Capital lease obligations (see Note 7) 7,909 97 240 413 7,159
Other long-term debt (see Note 7) 792 84 94 101 513
Interest payments 22,083 4,888 9,748 1,494 5,953
Operating lease obligations (see Note 8) 2,881,538 218,824 464,294 453,289 1,745,131
Future minimum guaranteed contractual
payments (see Note 14) 31,850 500 2,250 3,200 25,900
Total contractual obligations $ 3,116,672 $ 224,393 $ 476,626 $ 458,497 $ 1,957,156
The note references above are to the Notes to Consolidated Financial Statements.
The following table summarizes the Company’s other commercial commitments, including both on- and off-balance sheet
arrangements, in effect at January 28, 2006:
Less than
Total 1 year
(Dollars in thousands)
Other commercial commitments:
Documentary letters of credit $ 4,356 $ 4,356
Standby letters of credit 13,430 13,430
Total other commercial commitments $ 17,786 $ 17,786
The Company expects to fund these commitments primarily with operating cash flows generated in the normal course of
business.
Outlook
Full Year 2006 – (53-Week Year) Comparisons to Fiscal 2005 – (52-Week Year)
• Based on an estimated 55 million shares outstanding, the Company anticipates reporting earnings per share of
approximately $1.77 – 1.81 (which includes $0.27 of stock option expense per share).
• The earnings per share outlook includes the effect of the Company’s adoption of SFAS 123R as of January 29, 2006.
During 2006, the Company expects to incur approximately $25 million of stock option expense on a pre-tax basis, or
$0.27 per share after tax.
• Comparable store sales are expected to increase approximately 3% on a 52-week to 52-week comparative basis. The
converted Galyan’s stores will be included in the comparable store base beginning in the second quarter of fiscal 2006.
• The Company expects to open 40 new stores and relocate two stores in 2006.
dick’s sporting goods, inc. 2005 annual report
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