Dick's Sporting Goods 2013 Annual Report Download - page 107

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RETURN ON INVESTED CAPITAL (ROIC)
2013 2012 2011 2010 2009 2008
(Dollars in thousands)
Net income (loss) $ 337,598 $ 290,709 $ 263,906 $ 182,077 $ 135,359 $ (39,865)
Impairment of goodwill and other
intangible assets, after tax - - - - - 143,888
Impairment of store assets, after tax - - - - - 17,774
Merger and integration costs, after tax - - - - 6,068 12,341
Gain on sale of asset, after tax - - - - - (1,414)
Golf Galaxy store closing costs, after tax - - - 9,826 - -
Litigation settlement charge, after tax - - (1,289) 6,493 - -
Gain on sale of investment, after tax - - (8,738) - - -
Impairment of available-for-sale
investments, after tax - 27,636 - - - -
Recovery of previously
impaired asset, after tax (4,342) - - - - -
Asset impairment charge, after tax 4,729 - - - - -
Adjusted net income 337,985 318,345 253,879 198,396 141,427 132,724
Net income for ROIC calculation 337,985 318,345 253,879 198,396 141,427 132,724
Interest expense, after tax 1,757 3,620 8,321 8,410 2,726 10,458
Rent expense, net, after tax 246,896 233,010 216,201 208,411 203,984 191,538
Net income for ROIC after
adjustments (numerator) $ 586,638 $ 554,975 $ 478,401 $ 415,217 $ 348,137 $ 334,720
Total stockholders’ equity $ 1,692,179 $ 1,587,324 $ 1,632,745 $ 1,363,581 $ 1,083,227 $ 893,577
Total debt including capital and
financing lease obligations 7,375 16,275 159,022 140,841 142,243 181,543
Operating leases capitalized at
8x annual rent expense 3,291,953 3,106,794 2,882,682 2,778,812 2,719,789 2,553,843
Total debt and operating leases capitalized
at 8x annual rent expense 3,299,328 3,123,069 3,041,704 2,919,653 2,862,032 2,735,386
Total capital (total stockholders’ equity
+ total debt and operating leases
capitalized at 8x annual rent expense) 4,991,507 4,710,393 4,674,449 4,283,234 3,945,259 3,628,963
Average total capital (denominator) 1 $ 4,850,950 $ 4,692,421 $ 4,478,841 $ 4,114,246 $ 3,787,111 $ 3,418,481
ROIC 12.1% 11.8% 10.7% 10.1% 9.2% 9.8%
ROIC using GAAP amounts 2 12.1% 11.2% 10.9% 9.7% 9.0% 4.7%
1 Average total capital is calculated as the sum of the current and prior year ending total capital divided by two.
2 ROIC using GAAP amounts was derived as the quotient of GAAP Net income (loss) for ROIC not adjusted (numerator) and average total capital.
DICK’S SPORTING GOODS // 2013 ANNUAL REPORT // 81