Dick's Sporting Goods 2009 Annual Report Download - page 41

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ITEM 3. LEGAL PROCEEDINGS
The Company is a defendant in two cases which make claims concerning alleged failures to pay wages and overtime wages as
required by the Fair Labor Standards Act (“FLSA”) and applicable state labor law. The cases were filed in May and November of
2005 in the U.S. District Court for the Western District of New York (Tamara Barrus v. Dick’s Sporting Goods, Inc. and Galyan’s
Trading Company, Inc. (“Barrus”) and Daniel Parks v. Dick’s Sporting Goods, Inc. (“Parks”)). In September and October 2006,
respectively, a magistrate judge for the U.S. District Court for the Western District of New York conditionally certified classes for
notice purposes under the FLSA in the Barrus and Parks cases, which the U.S. District Judge upheld. In both cases, the parties
and the court agreed to stay the litigation pending an attempt to resolve all claims through mediation. Mediation sessions were
held in April and August 2007 and November 2008. In the Barrus case, attempts to resolve the case through settlement at
mediation were unsuccessful, and litigation has resumed. We currently believe that this case does not properly represent a class
action, and the Company plans to vigorously defend this case. In the Parks case, the parties reached an agreement to settle the
case on a class-wide basis. Formal settlement documents were executed in July 2009 and the court granted final approval of the
settlement on January 29, 2010 and entered a Final Judgment on February 4, 2010. The parties are working with a third-party
administrator to administer the settlement.
In addition to the above matters, various claims and lawsuits arising in the normal course of business are pending against us.
The subject matter of these proceedings primarily includes commercial matters, intellectual property, lease disputes and
employment issues. Our management believes that the final resolution of any of these matters would not have a material effect
on our consolidated financial position, liquidity or results of 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 Stock Exchange (“NYSE”) under
the symbol “DKS”. The shares of the Company’s Class B common stock are neither listed nor traded on any stock exchange or
other market. These shares of Class B common stock can be converted to common stock at the holder’s option and are
automatically convertible upon other events. Our common stock began trading on October 16, 2002, following the Company’s
initial public offering. Set forth below, for the applicable periods indicated, are the high and low closing sales prices per share of
the Company’s common stock as reported by the NYSE.
Fiscal Quarter Ended High Low
May 2, 2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19.62 $10.77
August 1, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20.04 $16.14
October 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25.74 $19.45
January 30, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26.05 $20.76
Fiscal Quarter Ended High Low
May 3, 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33.40 $24.64
August 2, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $29.52 $15.65
November 1, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23.97 $13.11
January 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16.36 $ 9.56
The number of holders of record of shares of the Company’s common stock and Class B common stock as of March 12, 2010 was
237 and 9, respectively.
We currently intend to retain our earnings for the development of our business. We have never paid any cash dividends since our
inception, and we do not anticipate paying any cash dividends in the future. The Company is precluded from paying cash dividends
under its Second Amended and Restated Credit Agreement (“Credit Agreement”).
The information set forth under Item 12 “Security Ownership of Certain Beneficial Owners and Management and Related
Shareholder Matters” is incorporated herein.
Dick’s Sporting Goods, Inc. ¬2009 Annual Report 39