Dick's Sporting Goods 2011 Annual Report Download - page 52

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(1) Cost of goods sold includes the cost of merchandise, inventory shrinkage and obsolescence, freight, distribution and
store occupancy costs.
(2) Selling, general and administrative expenses for fiscal 2010 include $16.4 million relating to future lease obligations
and asset impairment charges resulting from the closure of 12 underperforming Golf Galaxy stores and $10.8 million
relating to litigation settlement costs. Selling, general and administrative expenses for fiscal 2011 includes a
$2.1 million expense reduction relating to the partial reversal of previously accrued litigation settlement costs.
(3) In fiscal 2008, the Company recorded non-cash impairment charges of $164.3 million attributable to the impairment
of Golf Galaxy’s goodwill and other intangible assets. The Company also recorded non-cash impairment charges of
$29.1 million in connection with certain underperforming Dick’s Sporting Goods, Golf Galaxy and Chick’s Sporting
Goods stores.
(4) Gain on sale of investment resulted from the sale of the Company’s remaining investment in GSI Commerce, Inc.,
the Company’s e-commerce service provider.
(5) Gain on sale of asset resulted from the Company exercising a buy-out option on an aircraft lease and subsequently
selling the aircraft.
(6) Interest expense in fiscal 2011 and 2010 includes $10.6 million relating to rent payments under the Company’s
financing lease obligation for its corporate headquarters, which the Company began occupying in January 2010.
(7) A store is included in the same store sales calculation in the same fiscal period that it commences its 14th full month
of operations. Stores that were closed or relocated during the applicable period have been excluded from same store
sales. Each relocated store is returned to the same store base in the fiscal period that it commences its 14th full
month of operations at that new location. The Company’s e-commerce business is included in the same store sales
calculation beginning in fiscal 2010. Golf Galaxy stores were included in the full year same store sales calculation
beginning in fiscal 2009.
(8) Calculated using net sales and gross square footage of all stores open at both the beginning and the end of the
period. Gross square footage includes the storage, receiving and office space that generally occupies approximately
17% of total store space in our Dick’s stores.
(9) Calculated as cost of goods sold divided by the average monthly ending inventories of the last 13 months.
(10) Defined as current assets less current liabilities.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with Item 6, ‘‘Selected Financial Data’’
and our consolidated financial statements and related notes appearing elsewhere in this report. This Annual
Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. See ‘‘Forward-Looking Statements’’ and Part 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. The Company also
owns and operates Golf Galaxy, LLC, a golf specialty retailer (‘‘Golf Galaxy’’). As of January 28, 2012,
30 Dick’s Sporting Goods, Inc. 2011 Annual Report