Dick's Sporting Goods 2009 Annual Report Download

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2009 ANNUAL REPORT

Table of contents

  • Page 1
    2009 AnnuAl RepoRt

  • Page 2
    ..., other intangible and store asset impairment charges, merger and integration costs, and gain on sale of asset. In 2007 and 2008 comparable store net sales include Dick's Sporting Goods sales only. 2009 comparable store net sales includes Dick's Sporting Goods and Golf Galaxy sales. 2 3 4 27...

  • Page 3
    ...FOR GROWTH Dick's Sporting Goods is the largest and most profitable publicly held full-line sporting goods retailer in the United States, with 419 Dick's Sporting Goods stores in 40 states, as well as 91 Golf Galaxy stores in 31 states. We have built our business through the disciplined execution of...

  • Page 4
    ... we ended the year with a negative 1.4% in consolidated comparable store sales, the consolidated comparable store sales in the third and fourth quarters increased 1.9% and 2.5%, respectively. The improvement of sales in the second half of 2009 led 2 Dick's Sporting Goods, Inc. | 2009 Annual Report

  • Page 5
    .... In 2010, our organic store growth plan includes the opening of at least 24 new Dick's Sporting Goods stores, similar to the new stores we developed in 2009, as well as five new Golf Galaxy stores. We anticipate commercial real estate development will continue to be soft as little new product has...

  • Page 6
    ... exclusive to our Company, our customers will continue to experience and recognize that Dick's Sporting Goods is the most complete and exciting full-line sporting goods retailer in the country. edward w. stack Chairman and Chief Executive Officer Dick's Sporting Goods, Inc. | 2009 Annual Report

  • Page 7
    ... on our credit agreement by 15% and increasing our cash position from $75 million at year-end 2008 to $226 million at year-end 2009 Growth added 24 Dick's sporting Goods stores, which positioned us in several new regions and increased our presence in California, Florida and Texas seized an...

  • Page 8

  • Page 9
    ...the Golf Pro Shop, the Lodge, the Fitness Center, Team Sports, Footwear and Athletic Apparel - under one roof. Each of our specialty stores meets the exacting needs of its customers by offering an unbeatable combination of authentic merchandise from top national name brands, value-added services and...

  • Page 10
    Through Dick's scoreCard rewards Program, we thank our loyal customers with members-only product previews and discounts. 8 Dick's Sporting Goods, Inc. | 2009 Annual Report

  • Page 11
    ... fast and convenient. Our unwavering commitment to offering the best, most complete merchandise line-up in the business brings athletes and outdoor enthusiasts back to our stores throughout the year - because Every Season Starts at Dick's. Dick's Sporting Goods, Inc. | 2009 Annual Report 9

  • Page 12
    ..., Callaway Golf, Titleist, Cobra, FootJoy and Nike. n Our exclusive Walter Hagen, Slazenger and MAXFLI private brands offer an innovative range of high-caliber equipment, apparel, balls and accessories available only at Dick's and Golf Galaxy. 10 Dick's Sporting Goods, Inc. | 2009 Annual Report

  • Page 13
    ... a true specialty store experience by providing value-added services like rifle scope mounting, bore sighting, fishing line spooling, arrow cutting and access to on-site archery lanes where customers can test our products before purchasing. Dick's Sporting Goods, Inc. | 2009 Annual Report 11

  • Page 14
    ... and price distinctions of different products within each category. And, we make buying large equipment easy and convenient by offering home delivery and assembly, extended warranties, and financing. hiGhliGhts n From aerobic, cardio and strength training to yoga and Pilates, Dick's Fitness store...

  • Page 15
    ... products. n We employ specially trained Footwear sales associates who understand the features and benefits of each new product and can help our customers to quickly zero in on the right shoes for their particular sport, skill level and price point. Dick's Sporting Goods, Inc. | 2009 Annual Report...

  • Page 16
    ... instructional clinics, and offering discount coupons and equipment donations to Little League teams and coaches. n Our sponsorship agreement with Major League Soccer is just another way we demonstrate our exceptional commitment to team sports. 14 Dick's Sporting Goods, Inc. | 2009 Annual Report

  • Page 17
    ... apparel from such premier manufacturers as Under Armour, Nike, Reebok and adidas, we often collaborate with these vendors to develop exciting new items that are available exclusively at Dick's. We also offer a wide assortment of specialized clothing for swimming and other water sports, cycling...

  • Page 18
    ... operates 91 stores in 31 states Acquired Chick's Sporting Goods, a specialty sporting goods chain, expanding our network through the addition of several stores in Southern California Announced plans for a third distribution center in Atlanta 16 Dick's Sporting Goods, Inc. | 2009 Annual Report

  • Page 19
    ...No ¥ The aggregate market value of the voting common equity held by non3affiliates of the registrant was $1,734,461,300 as of August 1, 2009 based upon the closing price of the registrant's common stock on the New York Stock Exchange reported for August 1, 2009. The number of shares of common stock...

  • Page 20
    ... Related Shareholder Matters . Certain Relationships and Related Transactions, and Director Independence ...Principal Accountant Fees and Services ... PART IV ...Item 15. Exhibits and Financial Statement Schedules SIGNATURES ...CERTIFICATIONS... 18 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 21
    ... of attractive store locations; the availability of retail store sites on terms acceptable to us, the cost of real estate and other items related to our stores, our inability to manage our growth, open new stores on a timely basis and expand successfully in new and existing markets; changes in...

  • Page 22
    ..., trade name or service mark of any ot"er company appearing in t"is annual report belongs to its "older. As of January 30, 2010, t"e Company operated 419 Dick's Sporting Goods stores in 40 states and 91 Golf Galaxy stores in 31 states. Business Acquisitions On February 13, 2007, t"e Company acquired...

  • Page 23
    ... generally targeted tv the spvrting enthusiast. We vffer brands such as Maxfli, Field and Stream, Nike ACG, Slazenger, Reebvk, adidas baseball, Umbrv, Walter Hagen, Fitness Gear, DBX, Tailgate Gear, and Quest. Merchandising We vffer a full range vf spvrting gvvds and active apparel at each price...

  • Page 24
    ... with videos of championship games, instructional sessions or live sports events. We also have another prototype two-level store of approximately 75,000 square feet as a growth vehicle for those trade areas that have sufficient in-profile 22 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 25
    ... which generally ranges from 13,000 to 18,000 of selling square feet. The following table summarizes store openings and closings for 2009 and 2008: Fiscal 2009 Chick's Sporting Golf Goods Galaxy Fiscal 2008 Chick's Sporting Golf Goods Galaxy Dick's Total Dick's Total Beginning stores ...New: 50...

  • Page 26
    ... the Christmas season, Father's Day, and mack-to-school, and on specific sales and promotional events, including our annual Golf-a-thon sale. We cluster stores in major markets to enamle us to employ our advertising strategy on a cost-effective masis through the use of newspaper, local and national...

  • Page 27
    ... Dick's Sporting Goods and Golf Galaxy stores. The enterprise data center located within our new Store Support Center ("SSC") is equipped with mainframe and mid-range computers and storage systems from IBM, integrated with voice and data networking communication equipment from Cisco. This brand new...

  • Page 28
    .... These retailers sell a full line of sporting goods through the use of catalogs and/or the Internet. Employees As of January 30, 2010, we had a total of approximately 10,200 full-time and approximately 15,000 part-time associates. Due to the seasonal nature of our business, total employment will...

  • Page 29
    ... to 1990, he held various positions in store operations for Ames Department Stores, Inc. Timothy y. Kullman, 54, joined Dick's Sporting Goods as Senior Vice President and Chief Financial Officer in April 2007 and was promoted to Executive Vice President - Finance, Administration and Chief Financial...

  • Page 30
    ..., the Company may face a difficult 2010 because our customers may reduce their purchases due to continued job losses, foreclosures, bankruptcies, higher consumer debt and interest rates, reduced access to credit, falling home prices and lower consumer confidence. Decreases in comparable store sales...

  • Page 31
    ...; our new store openings; actions taken by our competitors; consumer trends and preferences; changes in the other tenants in the shopping centers in which we are located; new product introductions and changes in our product mix; timing and effectiveness of promotional events; lack of new product...

  • Page 32
    ...large format sporting goods stores; traditional sporting goods stores and chains; specialty sporting goods shops and pro shops; mass merchandisers, warehouse clubs, discount stores and department stores; and catalog and Internet-based retailers. 30 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 33
    ... to lose market share and could have a material adverse effect on our business, financial condition, results of operations and cash flows. Lack of available retail store sites on terms acceptable to us, rising real estate prices and other costs and risks relating to new store openings could severely...

  • Page 34
    ... rifles sold by us could have a negapive impacp on our repupapion and business. If our suppliers, distributors or manufacturers do not provide us with sufficient quantities of products, our sales and profitability will suffer. We purchase merchandise from approximapely 1,200 vendors. In fiscal 2009...

  • Page 35
    ... Our success depends on the continued services of our senior management, particularly Edward W. Stack, our Chairman of the Board and Chief Executive Officer. If we were to lose any key senior executive, our business could be materially adversely affected. Our costs may change as a result of currency...

  • Page 36
    ... and global economy. Although our current senior secured revolving credit facility does not expire until 2012, continued market distress could jeopardize the counterparty obligations of one or more of the banks participating in our facility, 34 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 37
    ... our customers high-quality products at competitive prices marketed under exclusive brands. We expect to continue to grow our exclusive private label offerings and have entered into several licensing agreements that grant us the right to sell and Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 35

  • Page 38
    ..., Coraopolis, PA, 15108, where we lease approximately 670,000 square feet of office space. The initial lease term covers 25 years from the rental commencement date, as defined in the lease agreement. The Company's former corporate headquarters 36 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 39
    ...in shopping centers in regional shopping areas, as qell as in freestanding locations and in malls. We currently have 14 signed leases for the stores planned to open in fiscal 2010 and 4 signed leases for the stores planned to open in fiscal 2011. Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 37

  • Page 40
    ... 30, 2010 we operated 510 stores in 43 states. The following table sets forth the number of stores by state: State Dick's Golf Galaxy Total Alabama ...Arizona ...Arkansas ...California ...Colorado ...Connecticut ...Delaware ...Florida ...Georgia ...Idaho ...Illinois ...Indiana ...Iowa ...Kansas...

  • Page 41
    ... operations. ITEM 4. REMOVED AND RESERVED PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES MARKET INFORMATION AND DIVIDEND POLICY The shares of Dick's Sporting Goods, Inc. common stock are listed and traded on the New York...

  • Page 42
    ...read the information set forth below in conjunction with other sections of this report, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes. 40 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 43
    ... ...$ Weighted average number of common shares outstanding (in thousands): Basic ...Diluted ...Store Data: Comparable store net sales (decrease) increase (6) ...Number of stores at end of period (7) ...Total square feet at end of period (7) ...Other Data: Gross profit margin ...Selling, general...

  • Page 44
    ... I-Item 1A, "Risk Factors". Overview Dick's is an authentic full-line sporting goods retailer offering a broad assortment of brand name sporting goods equipment, apparel and footwear in a specialty store environment. On February 13, 2007, the Company acquired Golf Galaxy by means of merger of our...

  • Page 45
    ...Credit Awreement is sufficient to support its onwoinw operations and future plans for fiscal 2010. In order to monitor the Company's success, the Company's senior manawement monitors certain key performance indicators, includinw: • Comparable store sales wrowth - Fiscal 2009 comparable store sales...

  • Page 46
    ... and operating hours in light of declining comparable store sales. Advertising expenses as a percentage of sales leveraged by 11 basis points during fiscal 2009. We ended the year with no borrowings on our line of credit and excess borrowing availability of $424.4 million. 44 Dick's Sporting Goods...

  • Page 47
    ... primr tm a new stmre mpening. Gain mn sale mf asset resulted frmm the Cmmpany exercising a buy-mut mptimn mn an aircraft lease and subsequently selling the aircraft. Interest expense, net, results primarily frmm interest mn mur senimr cmnvertible nmtes and Credit Agreement bmrrmwings partially...

  • Page 48
    ... impacted by lower average unit retail prices and higher markdowns to liquidate inventory and bring levels closer to the current sales trends. The Company's inventory per square foot declined 0.4% to 236.10 at January 30, 2010 compared to January 31, 2009. Every 10 basis point change in merchandise...

  • Page 49
    ... 2009 compared to the opening of 43 new Dick's and ten Golf Galaxy stores and relocation of one Dick's store in fiscal 2008. Pre-opening expenses in any year fluctuate depending on the timing and number of store openings and relocations. Gain on Sale of Asset The Company exercised its early buy...

  • Page 50
    ...costs associated with the opening of a new distribution center in At3anta, Georgia in the second quarter of 2008 were fu33y offset by initiatives to improve freight efficiencies. The gross profit decrease was partia33y offset by merchandise margin improvements across severa3 of the Company's product...

  • Page 51
    ... 2010. Lower income tax payments in 2009 improved operating cash flows by $104.3 million compared to 2008. The decrease was primarily due to the timing of estimated tax payments, including the larger federal extension tax payment made in fiscal 2008 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report...

  • Page 52
    ... are secured by interests in substantially all of the Company's personal property excluding store and distribution center equipment and fixtures. As of January 30, 2010, the Company was in compliance with the terms of the Credit Agreement. 50 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 53
    ... related to the addition of new itorei, remodeling of exiiting itorei, enhanced information technology and improved diitribution infraitructure. Currently, the Company plani to open at leait 24 new Dick'i itorei and approximately five new Golf Galaxy itorei during fiical 2010. The Company...

  • Page 54
    ... being reported under different conditions or using different assumptions. The Company considers the following policies to be the most critical in understanding the judgments that are involved in preparing its consolidated financial statements. 52 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 55
    ...approach using the relief-from-royalty method. This methodology assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to exploit the related benefits of these types of assets. This approach is dependent on a Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 53

  • Page 56
    ... current and future store performance, management periodically evaluates tze need to close underperforming stores. Reserves are establiszed wzen tze Company ceases to use tze location for tze present value of any remaining operating lease obligations, net of estimated sublease income. If tze timing...

  • Page 57
    ... as of January 30, 2010. Deloitte & Touche LLP, an independent registered public accounting firm, has issued an attestation report on the Company's internal control over financial reporting included on the following page of this document. Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 55

  • Page 58
    ...INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Boarg of Directors ang Stockholgers of Dick's Sporting Googs, Inc. Pittsvurgh, Pennsylvania We have augiteg the internal control over financial reporting of Dick's Sporting Googs, Inc. ang suvsigiaries (the "Company") as of January 30, 2010, vaseg...

  • Page 59
    ... 17,343,775(2) - 17,343,775 $15.73 12,087,103(2) - 12,087,103 Includes the 1992 Stock Plan, 2002 Stock Plan, Employee Stock Purchase Plan, Golf Galaxy, Inc. 1996 Stock Option and Incentive Plan and Golf Galaxy, Inc. 2004 Stock Incentive Plan. Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 57

  • Page 60
    ... the caption "Certain Relationships and Transactions with Related Persons" and "How does the Board determine which directors are considered independent?" in the Company's 2010 Proxy Statement. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES The information required by this Item is incorporated by...

  • Page 61
    ...Flows for the Fiscal Years Ended January 30, 2010, January 31, 2009 and February 2, 2008 ... 60 61 62 63 64 65 Notes to Consolidated Financial Statements for the Fiscal Years Ended January 30, 2010, January 31, 2009 and February 2, 2008 ...66-85 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 59

  • Page 62
    ... Organizations of the Treagway Commission ang our report gateg March 18, 2010 expresseg as an unqualifieg opinion on the Company's internal control over financial reporting. /s/ Deloitte & Touche LLP Pittsvurgh, Pennsylvania March 18, 2010 60 Dick's Sporting Googs, Inc. ¬ 2009 Annual Report

  • Page 63
    ... OF OPERATIONS (Amounts in thousands, except per share data) January 30, 2010 Fiscal Year Ended January 31, February 2, 2009 2008 (As adjusted, (As adjusted, see Note 1) see Note 1) Net sales ...$4,412,835 Cost of goods sold, including occupancy and distribution costs ...GROSS PROFIT ...Selling...

  • Page 64
    DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollats in thousands, except shate and pet shate data) Januaty 30, 2010 Januaty 31, 2009 (As adjusted, see Note 1) ASSETS CURRENT ASSETS: Cash and cash equivalents ...Accounts receivable7 net ...Income tax receivable ......

  • Page 65
    ...for-sale, net of tax ...Foreign currency translation adjustment, net of tax ...COMPREHENSIVE INCOME (LOSS) ... $135,359 5,363 108 $140,830 $(39,865) (375) (135) $(40,375) $150,566 78 134 $150,778 See notes to consolidated financial statements. Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 63

  • Page 66
    ...exercise of stock options ...- Foreign currency translation adjustment, net of taxes of $67 ...- Unrealized gain on securities available-for-sale, net of taxes of $2,888 ...- BALANCE, January 30, 2010... notes to consolidated financial statements. 64 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 67
    ... Capital expenditures ...Purchase of corporate aircraft ...Proceeds fro) sale of corporate aircraft ...Proceeds fro) sale-leaseback transactions ...Pay)ent for the purchase of Golf Galaxy, net of $4,859 cash acquired ...Pay)ent for the purchase of Chick's Sporting Goods ...Net cash used in investing...

  • Page 68
    ...Dick's Sporting Goods, Inc. (together with its subsidiaries, the "Company") is a specialty retailer selling sporting goods, footwear and apparel through its 510 stores, the majority of which are located throughout the eastern half of the United States. On February 13, 2007, the Company acquired Golf...

  • Page 69
    ... consists of the direct cost of merchandise including freight. Inventories are net of shrinkage, obsolescence, other valuations and vendor allowances totaling $76.0 million and $78.0 million at January 30, 2010 and January 31, 2009, respectively. Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 67

  • Page 70
    ... based on quoted market prices or through the use of other valuation techniques. A liability is recognized for costs associated with location closings, primarily future lease costs (net of estimated sublease income), and is charged to income when the Company ceases to use the location. Goodwill and...

  • Page 71
    ..., distribution and store occupancy costs. Occupancy costs include rent, common area maintenance charges, real estate and other asset based taxes, general maintenance, utilities, depreciation, fixture lease expenses and certain insurance expenses. Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 69

  • Page 72
    ...field support payroll and fringe benefits, advertising, bank card charges, information systems, marketing, legal, accounting, other store expenses and all expenses associated with operating the Company's corporate headquarters. Advertising Costs - Production costs of advertising and the costs to run...

  • Page 73
    ... analysis performed during the fiscal quarter ended January 31, 2009 in connection with the Company's intangible assets, the Company determined that the carrying value of the trade name and customer list related to its Golf Galaxy reporting unit exceeded its estimated fair value. Accordingly, the...

  • Page 74
    ... of Operationg. The current portion of accrued gtore cloging and relocation regerveg ig recorded in accrued expengeg and the long-term portion ig recorded in long-term deferred revenue and other liabilitieg in the Congolidated Balance Sheetg. 72 Dick'g Sporting Goodg, Inc. ¬ 2009 Annual Report

  • Page 75
    ...cause the Company to purchase the Notes held by them in cash at a price equal to the sum of the issuance price plus accrued original issue discount of such Notes on the redemption date ($676.25 per note), resulting in a payment of $172.4 million. Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 73

  • Page 76
    ... through 2019 ...$565 Note payable, due in monthly installments of approximately $5, including interest at 11%, through 2018 ...334 Total other debt ...Less current portion: ...899 (77) $614 358 972 (72) $900 Tobal Obher Long-Term Debb ...$822 74 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 77
    ... as interest expense on the Company's Consolidated Statements of Operations, reflecting an implicit interest rate of approximately 8.5%. The building is included in property and equipment, net and will be depreciated over a 40 year life. Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 75

  • Page 78
    ... 2002 Stock and Incentive Plan and the Golf Galaxy, Inc. 2004 Incentive Plan (the "Plans"). The Company also has an employee stock purchase plan ("ESPP") which provides for eligible employees to purchase shares of the Company's common stock. 76 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 79
    ... rates whose term is consistent with the expected life of the stock options. (3) (4) The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and experience. Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 77

  • Page 80
    ... related to nonvested stock options was approximately $14.7 million, which is expected to be recognized over a weighted average period of approximately 1.11 years. The Company issues new shares of common stock upon exercise of stock options. 78 Dick's Sporting Goods, Inc. ¬ 1009 Annual Report

  • Page 81
    ... a weighted average period of approximately 1.74 years. Effective July 18, 2008, two executives at the Company's Golf Galaxy subsidiary stepped down from their positions. Stock options granted to these executives exercisable for up to 630,000 shares of the Company's common stock at an exercise price...

  • Page 82
    ..., leaving 950,398 shares available for future issuance. The Company suspended the ESPP in March 2009, such that its employees were not permitted to purchase shares under the plan subsequent to the period ending June 30, 2009. The fiscal 2009 shares were issued at an average price of $11.99...

  • Page 83
    ... balance at January 30, 2010 are $8.7 million od unrecognized tax benedits that would impact our eddective tax rate id recognized. The Company recognizes accrued interest and penalties related to unrecognized tax benedits in income tax expense. Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 81

  • Page 84
    ...earnings per share for fiscal 2009 was 6.4 million and totaled 4.5 million for fiscal 2007. Due to the net loss for fiscal 2008, 19.0 million shares were excluded from the calculation of diluted loss per share, as these shares were anti-dilutive. 82 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 85
    ...respectively. The Company also has certain naming rights, marketing, and other commitments extending through 2026 of $113.2 million. Payments under these commitments were $36.8 million for the 52 weeks ended January 30, 2010. Payments under these Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 83

  • Page 86
    ...7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 $10,694 The Company uses quoted prices in active markets to determine the fair value of these assets, thus they are considered to be Level 1 instruments7 84 Dick's Sporting Goods, Inc7 ¬ 2009 Annual Report

  • Page 87
    ...in thousands, except earnings (loss) per share): First Quarter Fiscal 2009 Second Third Quarter Quarter Fourth Quarter Net sales ...Gross profit ...Income from operations (2) ...Net income (2) ...Net earnings per share: Basic ...Diluted (2) ...Weighted average number of shares of common stock Basic...

  • Page 88
    ...) Senior Vice President - Chief Accounting Officer and Controller (principal accounting officer) Vice Chairman and Director March 18, 2010 March 18, 2010 March 18, 2010 Director March 18, 2010 Director March 18, 2010 Director March 18, 2010 86 Dick's Sporting Goods, Inc. ¬ 2009 Annual...

  • Page 89
    ... REGISTERED PUBLIC ACCOUNTING FIRM To the Boarg of Directors ang Stockholgers of Dick's Sporting Googs, Inc. Pittsvurgh, Pennsylvania We have augiteg the consoligateg financial statements of Dick's Sporting Googs, Inc. ang suvsigiaries (the "Company") as of January 30, 2010 ang January 31, 2009, ang...

  • Page 90
    DICK'S SPORTIHG GOODS, IHC. AHD SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Dollars in thousands) Balance at Beginning of Period Charged to Costs and Expenses Other - Acquisition Related Deductions Balance at End of Period Fiscal 2007 Inventory reserve ...Allowdnce for doubtful ...

  • Page 91
    ... which sets forth form of severance Form of Option Award entered into between Dick's Sporting Goods, Inc. and various executive officers, directors and employees Option Agreement between Dick's Sporting Goods, Inc. and Edward W. Stack 10.4 10.5 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 89

  • Page 92
    ... Plan 10.16 10.17 10.18 10.19 10.20 Amended and Restated Employee Stock Purchase Plan 10.21 Offer Letter between Dick's Sporting Goods, Inc. and Timothy E. Kullman, dated February 5, 2007, as amended by letter dated February 9, 2007 90 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report

  • Page 93
    ... the Second Amended and Restated Credit Agreement, dated as of November 19, 2008 Second Amendment to the Dick's Sporting Goods Officers' Supplemental Savings Plan, dated as of December 4, 2008 10.32 10.33 10.34 10.35 10.36 10.37 10.38 10.39 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 91

  • Page 94
    ...10.40 Fourth Amendment to the Dick's Sporting Goods Supplemental Smart Savings Plan, dated as of December 4, 2008 First Amendment to the Amended and Restated Employee Stock Purchase Plan, dated as of December 4, 2008 Separation Agreement executed on April 27, 2009 by Gwendolyn K. Manto Form of Long...

  • Page 95
    ...internal control over financial reporting, appearing in this Annual Report on Form 10-K of Dick's Sporting Goods, Inc. and subsidiaries for the fiscal year ended January 30, 2010. /s/ Deloitte & Touche LLP Pittsburgh, Pennsylvania March 16, 2010 Dick's Sporting Goods, Inc. ¬ 2009 Annual Report 93

  • Page 96
    ... information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. /s/ EDWARD W. STACK Edward W. Stack, Chairman, Chief Executive Officer and Director Dick's Sporting Goods...

  • Page 97
    ... management or other employees who have a significant role in the registrant's internal control over financial reporting. /s/ TIMOTHY E. KULLMAN Timothy E. Kullman Executive Vice President - Finance, Administration and Chief Financial Officer Dick's Sporting Goods, Inc. Date: March 18, 2010 Dick...

  • Page 98
    ... The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ TIMOTHY E. KULLMAN Timothy E. Kullman Executive Vice President - Finance, Administration and Chief Financial Officer Dick's Sporting Goods, Inc...

  • Page 99
    ... $ 3,536 - (2,392) 13,485 $ 161,662 $ 31,688 - - 193,350 $ 1,414 $ 942 - - 2,356 $ 132,724 87,968 18,915 88,340 327,947 Presents EBITDA adjusted for merger and integration costs, non-cash impairment charges and gain on sale of asset. Dick's Sporting Goods, Inc. | 2009 Annual Report 97

  • Page 100
    ... Average total capital is calculated as the sum of the current and prior year ending total capital divided by two. ROIC using GAAP amounts was derived as the quotient of GAAP Net Income for ROIC not adjusted (numerator) and average total capital. 98 Dick's Sporting Goods, Inc. | 2009 Annual Report

  • Page 101
    ... January 30, 2010 (In thousands, except per share data) As Reported Merger and Integration Costs Non-GAAP Total Net sales Cost of goods sold, including occupancy and distribution costs Gross profit Selling, general and administrative expenses Merger and integration costs Pre-opening expenses Income...

  • Page 102
    ... executive separation costs." Due to the net loss, as reported diluted earnings per share is calculated using basic weighted average common shares outstanding. The goodwill impairment charge of $111,312 is not deductible for tax purposes. 2 3 100 Dick's Sporting Goods, Inc. | 2009 Annual Report

  • Page 103
    .../03/08 08/02/08 11/01/08 01/31/09 05/02/09 08/01/09 10/31/09 01/29/10 â- DATE OF CLOSING PRICE The stock performance graph is not necessarily indicative of future performance. Dick's Sporting Goods, Inc. | 2009 Annual Report 101

  • Page 104
    ... Stock Transfer & Trust Company 59 Maiden Lane New York, NY 10038 Independent Registered Public Accounting Firm Deloitte & Touche LLP 2500 One PPG Place Pittsburgh, PA 15222 Common Stock The shares of Dick's Sporting Goods, Inc. common stock are listed and traded on the New York Stock Exchange (NYSE...

  • Page 105
    ... Co-Managing Partner of Levene, Gouldin & Thompson, LLP Cathermne R. Smmth* Director since 2009 Executive Vice President & Chief Financial Officer GameStop Corp. Larry D. Stone Director since 2007 President & Chief Operating Officer Lowe's Companies, Inc. 2009 CoRpoRAte oFFICeRS Edward W. Stalk...

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    DICK'S SpoRtIng gooDS, inc. 345 Court Street Coraopolis, PA 15108 724-273-3400 www.pickssportinggoops.com