Dick's Sporting Goods 2013 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2013 Dick's Sporting Goods annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

55
DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
55
Scheduled lease payments under capital lease obligations as of February 1, 2014 are as follows (in thousands):
Fiscal Year
2014 $ 1,483
2015 1,025
2016 1,024
2017 1,024
2018 1,044
Thereafter 5,091
Subtotal 10,691
Less: amounts representing interest (3,873)
Present value of net scheduled lease payments 6,818
Less: amounts due in one year (798)
Total long-term capital leases $ 6,020
8. Operating Leases
The Company leases substantially all of its stores, three distribution centers and equipment under non-cancelable operating
leases that expire at various dates through 2028. Initial lease terms are generally for 10 to 25 years, and most leases contain
multiple five-year renewal options and rent escalation provisions. The lease agreements provide primarily for the payment of
minimum annual rentals, costs of utilities, property taxes, maintenance, common areas and insurance, and in some cases,
contingent rent stated as a percentage of gross sales over certain base amounts. Rent expense under these operating leases
totaled approximately $411.5 million, $388.3 million and $360.3 million for fiscal 2013, 2012 and 2011, respectively. The
Company entered into sale-leaseback transactions related to store fixtures, buildings and equipment that resulted in cash
receipts of $3.4 million and $21.1 million for fiscal 2012 and 2011, respectively.
Scheduled lease payments due under non-cancelable operating leases as of February 1, 2014 are as follows (in thousands):
Fiscal Year
2014 $ 469,583
2015 479,560
2016 456,977
2017 415,395
2018 362,633
Thereafter 1,234,277
Total $ 3,418,425
The Company has subleases related to certain of its operating lease agreements. The Company recognized sublease rental
income of $0.7 million, $0.9 million and $0.9 million in fiscal 2013, 2012 and 2011, respectively.
9. Stockholders' Equity
Common Stock, Class B Common Stock and Preferred Stock – The Company's Amended and Restated Certificate of
Incorporation authorizes the issuance of 200,000,000 shares of common stock, par value $0.01 per share, and the issuance of
40,000,000 shares of Class B common stock, par value $0.01 per share. In addition, the Company's Amended and Restated
Certificate of Incorporation authorizes the issuance of up to 5,000,000 shares of preferred stock.
Holders of common stock generally have rights identical to holders of Class B common stock, except that holders of common
stock are entitled to one vote per share and holders of Class B common stock are entitled to ten votes per share. A related party,
relatives of the related party and trusts held by them hold all of the Class B common stock. These shares can only be held by
members of this group and are not publicly tradable. Each share of Class B common stock can be converted into one share of
common stock at the holder's option at any time.