Dick's Sporting Goods 2013 Annual Report Download - page 57

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The Company has a $500 million revolving credit facility, including up to $100 million in the form of letters of credit, in the
event further liquidity is needed. Under the credit agreement governing the facility (the "Credit Agreement"), subject to the
satisfaction of certain conditions, the Company may request an increase of up to $250 million in borrowing availability.
The Credit Agreement, which matures on December 5, 2016, is secured by a first priority security interest in certain property
and assets, including receivables, inventory, deposit accounts and other personal property of the Company and is guaranteed by
the Company's domestic subsidiaries.
The interest rates per annum applicable to loans under the Credit Agreement are, at the Company's option, a base rate or an
adjusted LIBOR rate plus, in each case, an applicable margin percentage. The applicable margin percentage for base rate loans
is 0.20% to 0.50% and for adjusted LIBOR rate loans is 1.20% to 1.50%, depending on the borrowing availability of the
Company.
The Credit Agreement contains certain covenants that limit the Company's ability to, among other things: incur or guarantee
additional indebtedness; pay distributions on, redeem or repurchase capital stock or redeem or repurchase subordinated debt;
make certain investments; sell assets; and consolidate, merge or transfer all or substantially all of the Company's assets. In
addition, the Credit Agreement contains a covenant that requires the Company to maintain a minimum adjusted availability of
7.5% of its borrowing base. As of February 1, 2014, the Company was in compliance with the terms of the Credit Agreement.
The Company ended fiscal 2013 with $181.7 million in cash and cash equivalents as compared to $345.2 million at the end of
fiscal 2012. There were no outstanding borrowings under the Credit Agreement as of February 1, 2014 or February 2, 2013. As
of February 1, 2014 and February 2, 2013, total remaining borrowing capacity, after subtracting letters of credit, was
$487.0 million and $488.7 million, respectively.
Normal capital requirements consist primarily of capital expenditures related to the addition of new stores, remodeling and
relocating existing stores, enhancing information technology and improving supply chain and omni-channel infrastructure. The
Company has a capital appropriations committee that approves all capital expenditures in excess of certain amounts and groups
and prioritizes all capital projects among required, discretionary and strategic categories.
Store and distribution infrastructure – The Company made substantial capital investments in fiscal 2013 compared to fiscal
2012. These investments included growing our omni-channel platform, implementing new systems, developing new retail
concepts and store-related capital expenditures. Store-related capital expenditures nearly doubled from 2012 due to investments
in new and relocated stores and further upgrades to some of our existing stores in order to improve the shopping experience for
our customers.
• The Company opened 40 new Dick's Sporting Goods stores and relocated one Dick's Sporting Goods store during
fiscal 2013. The Company also opened one new Golf Galaxy store and repositioned one Golf Galaxy store in fiscal
2013, both of which were in the new, larger format.
• The Company opened two new Field & Stream stores and one new True Runner store in 2013.
• The Company fully remodeled four Dick's Sporting Goods stores in 2013. We did not remodel any stores in 2012 as
we were finalizing our new prototype store.
• The Company completed 75 apparel remodels in 2013. The apparel remodels focused on strategic growth categories
and featured branded vendor shops.
• The Company added 114 Nike Fieldhouse shops and 131 Under Armour shops in new and existing Dick's Sporting
Goods stores in fiscal 2013, including shops added as part of our apparel remodels. Additionally, we also worked
closely with The North Face to add 81 seasonal outpost shops in conjunction with store remodels.
• Shared service footwear decks were installed in all new and fully remodeled stores in 2013.
Share repurchases – On March 7, 2013, the Company's Board of Directors authorized a five-year share repurchase program of
up to $1 billion of the Company's common stock. During fiscal 2013, the Company repurchased 4.8 million shares of its
common stock for $255.6 million.
Dividends – During the fiscal year ended February 1, 2014, the Company paid $64.4 million of dividends to its stockholders.
The declaration of future dividends and the establishment of the per share amount, record dates and payment dates for any such