Dick's Sporting Goods 2005 Annual Report Download - page 63

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Return On Invested Capital (ROIC)
2005 2004 2003 2002 2001 2000 1999
(Dollars in thousands)
Net income $ 72,980 $ 68,905 $ 52,408 $ 38,137 $ 23,241 $ 8,411 $ 10,962
Discontinued operations –––––7,304 3,514
Merger integration and store closing
costs, after tax 22,674 12,202 –––––
(Gain) on sale/loss on write-down of
non cash investment, after tax (1,106) (6,589) (2,122) 1,468 – – –
Adjusted net income 94,548 74,518 50,286 39,605 23,241 15,715 14,476
Net Income for ROIC Calculation 94,548 74,518 50,286 39,605 23,241 15,715 14,476
Interest expense, net, after tax 7,775 4,805 1,099 1,718 3,745 4,178 2,112
Rent expense, net, after tax 117,801 86,369 58,232 50,999 43,223 35,516 27,748
Net Income for ROIC after
adjustments (numerator) $ 220,124 $ 165,692 $ 109,617 $ 92,322 $ 70,209 $ 55,409 $ 44,336
Total stockholders’ equity $ 415,001 $ 313,667 $ 240,894 $ 138,823 $ 61,556 $ 37,423 $ (63,901)
Total mandatorily redeemable
preferred stock ––––––152,170
Total stockholders’ equity for
ROIC calculation 415,001 313,667 240,894 138,823 61,556 37,423 88,269
Total debt 181,201 258,004 3,916 3,577 80,861 73,647 14,931
Operating leases capitalized at
8x annual rent expense 1,570,680 1,151,587 776,427 679,987 576,307 473,542 369,968
Total debt and operating leases
capitalized at 8x annual rent expense 1,751,881 1,409,591 780,343 683,564 657,168 547,189 384,899
Total capital (total stockholders’ equity +
total debt and operating leases capitalized
at 8x annual rent expense) 2,166,882 1,723,258 1,021,237 822,387 718,724 584,612 473,168
Average total capital (denominator)1$1,945,070 $1,372,247 $ 921,812 $ 770,555 $ 651,668 $ 528,890 $ 438,730
ROIC 11.3% 12.1% 11.9% 12.0% 10.8% 10.5% 10.1%
ROIC using GAAP amounts 210.2% 11.7% 12.1% 11.8% 10.8% 10.5% 13.9%
1Average total capital is calculated as the sum of the current and prior year ending total capital divided by two.
2ROIC using GAAP amounts was derived as the quotient of GAAP Net Income for ROIC not adjusted (numerator) and average total capital not adjusted for the
mandatorily redeemable preferred stock (denominator).
The after-tax amounts were calculated using a 40% effective tax rate.
dick’s sporting goods, inc. 2005 annual report
61