Dick's Sporting Goods 2013 Annual Report Download - page 108

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NON-GAAP NET INCOME AND EARNINGS PER SHARE RECONCILIATION
Recovery Asset
of Previously Impairment Non-GAAP
Year Ended February 1, 2014 As Reported Impaired Asset1 Charge2 Total
(In thousands, except per share data)
Net sales $ 6,213,173 $ - $ - $ 6,213,173
Cost of goods sold, including occupancy
and distribution costs 4,269,223 - - 4,269,223
Gross Profit 1,943,950 - - 1,943,950
Selling, general and administrative expenses 1,386,315 - (7,881) 1,378,434
Pre-opening expenses 20,823 - - 20,823
Income From Operations 536,812 - 7,881 544,693
Interest expense 2,929 - - 2,929
Other income (12,224) 4,342 - (7,882)
Income Before Income Taxes 546,107 (4,342) 7,881 549,646
Provision for income taxes 208,509 - 3,152 211,661
Net Income $ 337,598 $ (4,342) $ 4,729 $ 337,985
Earnings Per Common Share:
Basic $ 2.75 $ 2.75
Diluted $ 2.69 $ 2.69
Weighted Average Common Shares Outstanding:
Basic 122,878 122,878
Diluted 125,628 125,628
1 During the first quarter of 2013, the Company determined that it would recover $4.3 million of its investment in JJB Sports, which it had previously fully impaired. There
is no related tax expense as the Company reversed a portion of the deferred tax valuation allowance it had previously recorded for net capital loss carryforwards it did
not expect to realize at the time its investment in JJB Sports was fully impaired.
2 During the second quarter of 2013, the Company recorded a pre-tax $7.9 million non-cash impairment charge to reduce the carrying value of a corporate aircraft held
for sale to its fair market value. The provision for income taxes was calculated at 40%, which approximates the Company’s blended tax rate.
82 // DICK’S SPORTING GOODS // 2013 ANNUAL REPORT