Dick's Sporting Goods 2014 Annual Report Download

Download and view the complete annual report

Please find the complete 2014 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

2014 ANNUAL REPORT

Table of contents

  • Page 1
    2014 ANNUAL REPORT

  • Page 2
    ... to winning by driving relentless improvement across our business, from our growth, productivity and profitability, to our innovation and customer service. In the process, we provide exceptional experiences to our customers, support and inspiration to our communities, new opportunities to our...

  • Page 3
    ... 4.3% 518 Net Sales Gross Profit Gross Profit Margin Selling, General and Administrative Expenses Pre-Opening Expenses Income from ...Company's website at investors.DICKS.com. Fiscal 2012 excludes sales during the 53rd week of operations. 3 29.7% DICK'S SPORTING GOODS // 2014 ANNUAL REPORT...

  • Page 4
    DEAR FELLOW SHAREHOLDERS:

  • Page 5
    ...drivers, including: • Driving store traffic and productivity, • Opening new stores in underpenetrated markets, and • Expanding our eCommerce business. With 603 stores across 46 states, DICK'S is already the largest full-line sporting goods retailer in the U.S. Given the size of our network and...

  • Page 6
    ... rate of the online sporting goods market. During 2014, we continued to develop this business, expanding our online product assortment, rolling out our buy-online, pick-up in-store capability to all stores, launching a new mobile application, and leveraging our ship-from-store program. Our eCommerce...

  • Page 7
    ... ship-fromstore capability, piloting buy-online, pick-up in-store, and optimizing our mobile site for tablet use • Opened two Field & Stream specialty stores • Laid plans to expand distribution center in Georgia 2012 • Opened 38 new DICK'S Sporting Goods stores, an eight percent growth rate...

  • Page 8
    ... customers can order products from our DICK'S eCommerce site for home delivery. In addition, we are equipping our DICK'S associates with handheld devices that enable them to provide timely information to customers without leaving the sales floor. 6 // DICK'S SPORTING GOODS // 2014 ANNUAL REPORT

  • Page 9
    ...'s athletes and outdoor enthusiasts by featuring authentic products, expert guidance and professional services, as well as leading national brands, exclusive promotions and a full range of amenities. 603 DICK'S STORES IN 46 STATES AS OF 1/31/2015 DICK'S SPORTING GOODS // 2014 ANNUAL REPORT // 7

  • Page 10
    8 // DICK'S SPORTING GOODS // 2014 ANNUAL REPORT

  • Page 11
    DICK'S SPORTING GOODS // 2014 ANNUAL REPORT // 9

  • Page 12
    ... know they want access to a complete, full-service environment, so our Golf pro shop offers on-site golf simulators, launch monitors and putting greens, as well as access to a full menu of equipment services provided by Certified Club Technicians. 10 // DICK'S SPORTING GOODS // 2014 ANNUAL REPORT

  • Page 13
    GOLF PRO SHOP

  • Page 14
    .... We complement our product line-up by offering value-added amenities, such as on-site archery ranges for testing potential purchases, and access to specialized equipment services, like mounting rifle-scopes, spooling lines and cutting arrow heads. 12 // DICK'S SPORTING GOODS // 2014 ANNUAL REPORT

  • Page 15
    PLANNING FOR YOUR NEXT ADVENTURE HAS NEVER BEEN SO EASY-OUR ECOMMERCE SITES OFFER HELPFUL BUYING GUIDES, CONVENIENT PRODUCT COMPARISONS AND A FULL LINE OF HIGH-QUALITY GEAR. THE LODGE

  • Page 16
    ..., GT, Thule, Giro, Bell and our exclusive Nishiki brand. Our cycle shops also offer on-site access to a menu of value-added equipment services, including custom fittings, safety inspections, repairs, tune-ups and assembly by bicycle mechanics. 14 // DICK'S SPORTING GOODS // 2014 ANNUAL REPORT

  • Page 17
    BEING ON-THE-GO SHOULDN'T INVOLVE TRADE-OFFS - WITH DICK'S NEW MOBILE APP, YOUR SCORECARD REWARDS BENEFITS ARE ALWAYS RIGHT AT YOUR FINGERTIPS. FITNESS

  • Page 18
    ..., coaches and players back to DICK'S for every sport in every season. Our ScoreCard program further encourages customer loyalty by offering repeat customers the opportunity to earn rewards and take advantage of exclusive discounts and promotions. 16 // DICK'S SPORTING GOODS // 2014 ANNUAL REPORT

  • Page 19
    NEED SHIN GUARDS FOR TODAY'S GAME? OUR BUY-ONLINE, PICK-UP IN-STORE OPTION LETS YOU CHECK STOCK, MAKE A PURCHASE AND COLLECT YOUR GEAR - ALL IN TIME FOR THE STARTING WHISTLE. TEAM SPORTS

  • Page 20
    ...OUR RUNNING SPECIALISTS TO ORDER THE STYLES, SIZES AND COLORS YOU NEED FROM OUR IN-STORE KIOSKS AND HAVE THEM SHIPPED RIGHT TO YOUR HOME. MANY OF OUR FOOTWEAR SHOPS FEATURE ON-SITE TRACKS AND TREADMILLS WHERE CUSTOMERS CAN TEST POTENTIAL PURCHASES OR WORK WITH OUR ASSOCIATES TO COMPLETE CUSTOM GAIT...

  • Page 21
    FOOTWEAR

  • Page 22
    OUR MOBILE APP LETS YOU FIND A STORE, BROWSE PRODUCTS, CHECK STOCK AND PLACE ORDERS, ALL FROM A TABLET OR SMARTPHONE - SO ACCESS TO THE ATHLETIC APPAREL YOU RELY ON IS ALWAYS IN THE PALM OF YOUR HAND. OUR ATHLETIC APPAREL SHOP ADDRESSES THE NEEDS OF ATHLETES IN VIRTUALLY EVERY SPORT, AGE CATEGORY ...

  • Page 23
    ATHLETIC APPAREL

  • Page 24
    ... discounts and the opportunity to earn rewards on their purchases. CUSTOMER RESPONSE TO OUR FIELD & STREAM STORES HAS BEEN STRONG, AND WE PLAN TO EXPAND OUR NETWORK FROM 10 STORES AT THE CLOSE OF 2014 TO APPROXIMATELY 19 STORES BY THE END OF 2015. 22 // DICK'S SPORTING GOODS // 2014 ANNUAL REPORT

  • Page 25
    ... as club fitting and repair and individual lessons. In 2015, we plan to bring our Golf Galaxy eCommerce site onto our own platform, setting the stage to offer our customers an enhanced omni-channel experience with access to value-added capabilities, such as ship-from-store and buy-online, pick-up...

  • Page 26
    ... USA athletes, sporting goods donations to U.S. Olympic Training Centers, and a new in-store employment program, which will provide flexible work opportunities to U.S. Olympic and Paralympic hopefuls who need to accommodate their training schedules. 24 // DICK'S SPORTING GOODS // 2014 ANNUAL REPORT

  • Page 27
    ...DICK'S SPORTING GOODS, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 16-1241537 (I.R.S. Employer Identification No.) 345 Court Street, Coraopolis, Pennsylvania 15108 (724) 273-3400 (Address of principal executive...

  • Page 28
    ... and Procedures ...Item 9B. Other Information ...Part III ...Item 10. Directors, Executive Officers and Corporate Governance ...Item 11. Executive Compensation ...Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters ...Item 13. Certain Relationships...

  • Page 29
    ... real estate prices and other costs and risks relating to a brick and mortar retail store model; Omni-channel growth and our development of an eCommerce platform; Unauthorized disclosure of sensitive or confidential customer information; Risks associated with our private brand offerings and new...

  • Page 30
    ... our name to Dick's Sporting Goods, Inc. Our executive office is located at 345 Court Street, Coraopolis, Pennsylvania 15108 and our phone number is (724) 273-3400. Our website is located at www.DICKS.com. The information on our website does not constitute a part of this Annual Report on Form 10...

  • Page 31
    ...to our online-only competitors, as our physical presence allows us to better serve our customers, whether through the convenience of accepting in-store returns or exchanges, or expediting fulfillment of eCommerce orders. We believe that offering support services for the products we sell enhances the...

  • Page 32
    ... Club", "Sportsman's Advantage Club" and "True Runner Rewards" loyalty programs. The Company is also actively involved in communities, sponsoring thousands of teams at the local level. Merchandising We offer a full range of sporting goods, active apparel and footwear at each price point in order...

  • Page 33
    ... age and average number of occupants per household. In addition to these demographics, golf and outdoor recreation participation rates are considered in selecting sites for our Golf Galaxy and Field & Stream stores. We seek to locate our Dick's Sporting Goods stores in primary retail centers with an...

  • Page 34
    ...our Dick's Sporting Goods website to ship orders placed online from our retail locations, which reduces delivery times for online orders and improves inventory productivity, and we have recently added capability for our customers to buy merchandise online and pick it up in store. In fiscal 2014, our...

  • Page 35
    ... centers: a 914,000 square foot distribution center near Atlanta, Georgia, a 725,000 square foot distribution center in Plainfield, Indiana, a 601,000 square foot distribution center in Smithton, Pennsylvania and a 624,000 square foot distribution center in Goodyear, Arizona. Vendors directly ship...

  • Page 36
    ... line of sporting goods through the use of the Internet and/or catalogs. We believe that the relationships we have developed with our suppliers and customers through our retail stores, our growing eCommerce business, our omni-channel capabilities and our merchandise offerings, including a wide range...

  • Page 37
    ...'s Sporting Goods, Mr. Belitsky was the Chief Financial Officer of Domain, Inc., a Boston-based home furnishings retailer, he also served as Vice President - Controller and Treasurer with Morse Shoe, Inc. and as an Audit Manager with KPMG LLP. Michele B. Willoughby - 49, has served as our Executive...

  • Page 38
    ... our customers, the demand for our products and services, our market share, or financial results. Lack of available retail store sites on terms acceptable to us, rising real estate prices and other costs and risks relating to a brick & mortar retail store model could affect our results. Our business...

  • Page 39
    ... new customer offerings, including shipfrom-store and buy-online, pick-up in-store, which requires substantial investment in technology, information systems, employees, and management time and resources. Our omni-channel strategy also includes the development of an internal eCommerce platform...

  • Page 40
    ... to adequately service these aspects of our DICKS.com eCommerce business could result in a prolonged disruption that affects our customers' ability to utilize our website or receive product in a timely manner. As a result, we may lose customer sales and / or experience increased costs, which could...

  • Page 41
    ... ordinary course of business, including those related to federal or state wage and hour laws, product liability, consumer protection, advertising, employment, intellectual property, tort, privacy or data protection and other matters. In addition, although we do not sell assault weapons or automatic...

  • Page 42
    ... our stores. We currently operate a 914,000 square foot distribution center near Atlanta, Georgia, a 725,000 square foot distribution center in Plainfield, Indiana, a 601,000 square foot distribution center in Smithton, Pennsylvania and a 624,000 square foot distribution center in Goodyear, Arizona...

  • Page 43
    ... of our Dick's stores, exposes us to certain risks. Our business is seasonal based on sports seasons. Furthermore, a majority of our Dick's Sporting Goods stores are located in the eastern half of the United States, which exposes us to various regional risks, including those relating to weather...

  • Page 44
    ... the future expansion of its corporate headquarters, adjacent to its current headquarters location. The lease provides the Company with an additional 89 acres for expansion. We currently lease a 914,000 square foot distribution center near Atlanta, Georgia, a 725,000 square foot distribution center...

  • Page 45
    ...State Alabama Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina Ohio Oklahoma...

  • Page 46
    ... DISCLOSURES Not applicable. PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES MARKET INFORMATION AND DIVIDEND POLICY The shares of Dick's Sporting Goods, Inc. common stock are listed and traded on the New York Stock Exchange...

  • Page 47
    ... announced five-year $1 billion share repurchase program, authorized by the Board of Directors on March 7, 2013. (b) The information set forth under Part III, Item 12. "Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters" is incorporated herein. ITEM...

  • Page 48
    ... elsewhere in this Annual Report on Form 10-K. Fiscal Year 2014 Statement of Income Data: Net sales Cost of goods sold Gross profit Selling, general and administrative expenses (2) Pre-opening expenses Income from operations Impairment of available-for-sale investments (3) Gain on sale of investment...

  • Page 49
    ... at that new location. The same store sales calculation for fiscal 2012 excluded sales during the 53rd week. Includes Dick's Sporting Goods, Golf Galaxy, Field & Stream and True Runner stores. Calculated using net sales and gross square footage of all stores open at both the beginning and the end of...

  • Page 50
    ... in the customer experience, new releases of its mobile and tablet sites, and development of capabilities that integrate the Company's online presence with its brick and mortar stores, including ship-from-store; buy-online, pick-up in-store; return-to-store and multi-faceted marketing campaigns that...

  • Page 51
    ... sales from 31.29% in fiscal 2013 due primarily to lower merchandise margins and higher shipping expenses, partially offset by occupancy leverage. In fiscal 2014, the Company: • Opened 46 new Dick's Sporting Goods stores, one new Golf Galaxy store and eight new Field & Stream stores. The Company...

  • Page 52
    ...and obsolescence, freight, distribution, shipping and store occupancy costs. The Company defines merchandise margin as net sales less the cost of merchandise sold. The cost of merchandise includes product costs paid to the vendor, including items such as purchase discounts and vendor chargebacks, as...

  • Page 53
    ... store and field support payroll and fringe benefits, advertising, bank card charges, information systems, marketing, legal, accounting, other store expenses and all expenses associated with operating the Company's corporate headquarters. Selling, general and administrative expenses for the 52 weeks...

  • Page 54
    ...new Golf Galaxy store, two new Field & Stream stores and one new True Runner store and relocated one Dick's Sporting Goods store and repositioned one Golf Galaxy store. Income Taxes The Company's effective tax rate was 38.1% for fiscal 2014 as compared to 38.2% for fiscal 2013. Fiscal 2013 (52 weeks...

  • Page 55
    ... mortar and eCommerce sales, would have impacted earnings before income taxes for fiscal 2013 by approximately $18.9 million. Store Count During fiscal 2013, the Company opened 40 new Dick's Sporting Goods stores, one new Golf Galaxy store, two new Field & Stream stores and one new True Runner store...

  • Page 56
    .... During fiscal 2012, the Company opened 38 new Dick's Sporting Goods stores and two new True Runner stores, relocated five Dick's Sporting Goods stores and repositioned one Golf Galaxy store. Impairment of Available-for-Sale Investments Impairment of available-for-sale investments was $32.4 million...

  • Page 57
    ... primarily relate to the development of our omni-channel platform, including new and existing Dick's Sporting Goods stores and eCommerce technology investments. The Company also plans to invest in its specialty store concepts and improve its supply chain and corporate information technology...

  • Page 58
    ... to fiscal 2013, which reflects a higher number of self-developed stores opened by the Company in fiscal 2014. Financing Activities Cash used in financing activities consists primarily of the Company's capital return initiatives, including its share repurchase program and cash dividend payments, and...

  • Page 59
    ... tax benefits as we cannot reasonably estimate the timing of settlement. These payments include interest and penalties. The Company's purchase obligations relate primarily to marketing commitments, including naming rights, licenses for trademarks, corporate aircraft, and technology-related and...

  • Page 60
    ... consolidated financial statements. Inventory Valuation The Company values inventory using the lower of weighted average cost or market method. Market price is generally based on the selling price expectations of the merchandise. The Company regularly reviews inventories to determine if the carrying...

  • Page 61
    ...discounting projected future cash flows over its remaining lease term. When determining the stream of projected future cash flows associated with an individual store location, the Company makes assumptions, incorporating local market conditions, about key store variables including sales growth rates...

  • Page 62
    ... The Company's business is subject to seasonal fluctuations. Significant portions of the Company's net sales and profits are realized during the fourth quarter of the Company's fiscal year, which is due in part to the holiday selling season and in part to sales of cold weather sporting goods and...

  • Page 63
    ... of our internal control over financial reporting based on the framework and criteria established in Internal Control - Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission. This evaluation included review of the documentation of controls...

  • Page 64
    ... OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Dick's Sporting Goods, Inc. Pittsburgh, Pennsylvania We have audited the internal control over financial reporting of Dick's Sporting Goods, Inc. and subsidiaries (the "Company") as of January 31, 2015...

  • Page 65
    ... Dick's Sporting Goods Code of Ethics and Business Conduct" (the "Code of Conduct") that applies to all of its employees, including Executive Officers, and the Board of Directors, the complete text of which is available through the Investor Relations section of the Company's website at www.DICKS.com...

  • Page 66
    ... relating to equity compensation plans of the Company pursuant to which grants of options, restricted stock, restricted stock units or other rights to acquire shares may be granted from time to time: Equity Compensation Plan Information Number of Securities Remaining Available for Future Issuance...

  • Page 67
    ...Annual Report on Form 10-K. Other schedules have not been included because they are not applicable or because the information is included elsewhere in this report... Annual Report on Form 10-K. Certain Exhibits are incorporated by reference from documents previously filed by the Company with the SEC ...

  • Page 68
    ... Page Report of Independent Registered Public Accounting Firm...Consolidated Statements of Income for the Fiscal Years Ended January 31, 2015, February 1, 2014 and February 2, 2013...Consolidated Statements of Comprehensive Income for the Fiscal Years Ended January 31, 2015, February 1, 2014 and...

  • Page 69
    ...ACCOUNTING FIRM To the Board of Directors and Stockholders of Dick's Sporting Goods, Inc. Pittsburgh, Pennsylvania We have audited the accompanying consolidated balance sheets of Dick's Sporting Goods, Inc. and subsidiaries (the "Company") as of January 31, 2015 and February 1, 2014, and the related...

  • Page 70
    DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share data) Fiscal Year Ended January 31, 2015 Net sales Cost of goods sold, including occupancy and distribution costs GROSS PROFIT Selling, general and administrative expenses Pre-...

  • Page 71
    DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Dollars in thousands) Fiscal Year Ended January 31, 2015 NET INCOME OTHER COMPREHENSIVE LOSS: Unrealized loss on securities available-for-sale...,198 $ February 1, 2014 337,598 $ February 2, 2013 290,709 45

  • Page 72
    DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share and per share data) January 31, 2015 ASSETS CURRENT ASSETS: Cash and cash equivalents Accounts... Accounts payable Accrued expenses Deferred revenue and other liabilities Income taxes payable ...

  • Page 73
    DICK'S SPORTING GOODS, ...sale, net of taxes of $4,734 Purchase of shares for treasury Cash dividends declared, $2.50 per common share BALANCE, February 2, 2013 Exercise of stock options Restricted stock vested Minimum tax withholding requirements Net income Stock-based compensation Total tax benefit...

  • Page 74
    ... of available-for-sale investments Deferred income taxes Stock-based compensation Excess tax benefit from exercise of stock options Gain on sale of asset Other non-cash items Changes in assets and liabilities: Accounts receivable Inventories Prepaid expenses and other assets Accounts payable Accrued...

  • Page 75
    ... sports equipment, apparel, footwear and accessories in a specialty store environment. The Company also owns and operates Golf Galaxy, Field & Stream and True Runner specialty stores. Fiscal Year - The Company's fiscal year ends on the Saturday closest to the end of January. Fiscal years 2014, 2013...

  • Page 76
    ... stock units and stock options to purchase common stock under the Dick's Sporting Goods, Inc. 2012 Stock and Incentive Plan. The Company records stock-based compensation expenses based on the fair value of stock awards at the grant date and recognizes the expense over the related service period. 50

  • Page 77
    ...field support payroll and fringe benefits, advertising, bank card charges, information systems, marketing, legal, accounting, other store expenses and all expenses associated with operating the Company's corporate headquarters. Advertising Costs - Production costs of advertising and the costs to run...

  • Page 78
    ...those goods or services. Additionally, the update (1) specifies the accounting for some costs to obtain or fulfill a contract with a customer and (2) expands disclosure requirements related to revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for annual reporting...

  • Page 79
    DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) On October 1, 2014, the Company purchased the intellectual property rights to the Field & Stream mark in product categories that were not otherwise owned by the Company for $26.3 million. The ...

  • Page 80
    ... as of the end of the fiscal periods (in thousands): 2014 Accrued payroll, withholdings and benefits Accrued real estate taxes, utilities and other occupancy Accrued property and equipment Accrued sales tax Other accrued expenses Total accrued expenses 6. Deferred Revenue and Other Liabilities...

  • Page 81
    DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 7. Debt The Company's outstanding debt consists of the following as of the end of the fiscal periods (in thousands): 2014 Revolving line of credit Capital leases Other debt Total debt Less: current...

  • Page 82
    ... leases totaled approximately $441.5 million, $411.5 million and $388.3 million for fiscal 2014, 2013 and 2012, respectively. The Company entered into sale-leaseback transactions related to store fixtures, buildings and equipment that resulted in cash receipts of $3.4 million for fiscal 2012...

  • Page 83
    ... million. 10. Stock-Based Compensation and Employee Stock Plans The Company has the ability to grant restricted shares of common stock, restricted stock units and options to purchase common stock under the Dick's Sporting Goods, Inc. 2012 Stock and Incentive Plan (the "Plan"). As of January 31, 2015...

  • Page 84
    DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) (3) The risk-free interest rate is based on the implied yield available on U.S. Treasury constant maturity interest rates whose term is consistent with the expected life of the stock options. The...

  • Page 85
    ... over a weighted average period of approximately 1.99 years. During 2013, the Company issued a special grant of 1,185,793 shares of performance-based restricted stock in support of the Company's five-year strategic plan. The Company issued an additional 118,095 shares of performance-based restricted...

  • Page 86
    DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 11. Income Taxes The components of the provision for income taxes are as follows for the fiscal periods ended (in thousands): 2014 Current: Federal State Deferred: Federal State Total provision $ $ ...

  • Page 87
    DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Components of deferred tax assets (liabilities) consist of the following as of the fiscal periods ended (in thousands): 2014 Inventory Store closing expense Stock-based compensation Capital loss ...

  • Page 88
    .... The Company participates in the Internal Revenue Service ("IRS") Compliance Assurance Program ("CAP"). As part of the CAP, tax years are audited on a contemporaneous basis so that all or most issues are resolved prior to the filing of the tax return. The IRS has completed examinations of 2013 and...

  • Page 89
    DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 13. Retirement Savings Plans The Company's retirement savings plan, established pursuant to Section 401(k) of the Internal Revenue Code, covers regular status full-time hourly and salaried ...

  • Page 90
    DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Licenses for Trademarks Within the ordinary course of business, the Company enters into licensing agreements for the exclusive or preferential rights to use certain trademarks extending through 2020...

  • Page 91
    ... compensation plan (See Note 13). The fair value of cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximated book value due to the short-term nature of these instruments at both January 31, 2015 and February 1, 2014. The Company uses quoted prices...

  • Page 92
    ...Executive Officer. Pursuant to the Purchase Agreement, the Company sold a Gulfstream G200 corporate aircraft to SP Aviation, LLC for $11.0 million, paid in cash, representing the Company's carrying value of the asset at the time of sale. The transaction was approved pursuant to the Company's Related...

  • Page 93
    ...53 0.52 122,702 125,862 (4) (5) $ $ $ $ $ $ $ $ Quarterly results for fiscal 2014 and 2013 do not add to full year results due to rounding. Includes gain on sale of a Gulfstream G650 corporate aircraft of $8.7 million. Includes golf restructuring charges of $12.2 million. Includes the partial...

  • Page 94
    ..., the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. DICK'S SPORTING GOODS, INC. (Registrant) By: /s/ ANDRÉ J. HAWAUX André J. Hawaux Executive Vice President - Chief Operating Officer / Chief Financial Officer Date: March 27, 2015...

  • Page 95
    ... REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Dick's Sporting Goods, Inc. Pittsburgh, Pennsylvania We have audited the consolidated financial statements of Dick's Sporting Goods, Inc. and subsidiaries (the "Company") as of January 31, 2015 and February 1, 2014, and...

  • Page 96
    DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Dollars in thousands) Balance at Beginning of Period Fiscal 2012 Inventory reserve Allowance for doubtful accounts Reserve for sales returns Allowance for deferred tax assets Fiscal 2013 Inventory reserve ...

  • Page 97
    ... between Registrant and various executive officers, directors and employees under Registrant's Amended and Restated 2002 Stock and Incentive Plan Amended and Restated Lease Agreement, originally dated February 4, 1999, for distribution center located in Smithton, Pennsylvania, effective as of May...

  • Page 98
    ...joint book managers. Lease Agreement originally dated June 25, 2007, for distribution center located in East Point, Georgia, between Duke Realty Limited Partnership and Registrant, as amended, supplemented or modified as of March 16, 2012 Registrant's 2012 Stock and Incentive Plan Form of Restricted...

  • Page 99
    ... of Edward W. Stack, Chairman and Chief Executive Officer, dated as of March 27, 2015 and made pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the SarbanesOxley Act of 2002 Certification of André J. Hawaux, Executive Vice President - Chief...

  • Page 100
    ... corporation Golf Galaxy, LLC, a Minnesota limited liability company Golf Galaxy GolfWorks, Inc., an Ohio corporation Criterion Golf Technology, Inc., a Canada corporation Chick's Sporting Goods, LLC, a California limited liability company Blue Sombrero, LLC, a Georgia limited liability company...

  • Page 101
    ... the effectiveness of Dick's Sporting Goods, Inc. and subsidiaries' internal control over financial reporting, appearing in this Annual Report on Form 10-K of Dick's Sporting Goods, Inc. and subsidiaries for the year ended January 31, 2015. /s/ Deloitte & Touche LLP Pittsburgh, Pennsylvania March 27...

  • Page 102
    ...CERTIFICATIONS I, Edward W. Stack, certify that: 1. 2. I have reviewed this Annual Report on Form 10-K of Dick's Sporting Goods, Inc. (the "registrant"); Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the...

  • Page 103
    ... Hawaux, certify that: 1. 2. I have reviewed this Annual Report on Form 10-K of Dick's Sporting Goods, Inc. (the "registrant"); Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light...

  • Page 104
    ... connection with the Annual Report on Form 10-K of Dick's Sporting Goods, Inc. (the "Company") for the period ended January 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Edward W. Stack, Chief Executive Officer of the Company, certify, pursuant...

  • Page 105
    ... the Annual Report on Form 10-K of Dick's Sporting Goods, Inc. (the "Company") for the period ended January 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, André J. Hawaux, Chief Operating Officer / Chief Financial Officer of the Company, certify...

  • Page 106
    ... 125,096 620,955 $ $ 27,636 4,734 32,370 $ $ 318,345 203,850 6,034 125,096 653,325 Presents EBITDA adjusted for an impairment of available-for-sale investments. 80 // DICK'S SPORTING GOODS // 2014 ANNUAL REPORT

  • Page 107
    RETURN ON INVESTED CAPITAL (ROIC) 2014 (Dollars in thousands) 2013 2012 2011 2010 2009 Net income Merger and integration costs, after tax Golf Galaxy store closing costs, after tax Litigation settlement charge, after tax Gain on sale of investment, after tax Impairment of available-for-sale ...

  • Page 108
    ...-GA AP NET INCOME AND EARNINGS PER SHARE RECONCILIATION Year Ended January 31, 2015 (In thousands, except per share data) As Reported Gain on Sale of Asset1 Golf Restructuring Charges2 Non-GAAP Total Net sales Cost of goods sold, including occupancy and distribution costs Gross Profit Selling...

  • Page 109
    ...Ended February 1, 2014 (In thousands, except per share data) As Reported Recovery of Previously Impaired Asset1 Asset Impairment Charge2 Non-GAAP Total Net sales Cost of goods sold, including occupancy and distribution costs Gross Profit Selling, general and administrative expenses Pre-opening...

  • Page 110
    NON-GA AP NET INCOME AND EARNINGS PER SHARE RECONCILIATION Year Ended February 2, 2013 (In thousands, except per share data) As Reported Impairment of Investments 1 Non-GAAP Total Net sales Cost of goods sold, including occupancy and distribution costs Gross Profit Selling, general and ...

  • Page 111
    ... â- â- â- DATE OF CLOSING PRICE The stock performance graph is not necessarily indicative of future performance. â- â- â- â- â- â- â- â- â- 150 â- â- â- â- â- â- â- â- â- â- â- â- â- â- DICK'S SPORTING GOODS // 2014 ANNUAL REPORT // 85 â- â-

  • Page 112
    ... AND STOCKHOLDER INFORMATION Corporate Office 345 Court Street Coraopolis, PA 15108 724-273-3400 DICK'S Sporting Goods Website www.DICKS.com Transfer Agent and Registrar American Stock Transfer & Trust Company 59 Maiden Lane New York, NY 10038 Independent Registered Public Accounting Firm Deloitte...

  • Page 113
    ... Director since 2011 Retired President of Worldwide Operations Walt Disney Parks and Resorts EXECUTIVE OFFICERS Edward W. Stack Chairman & Chief Executive Officer Michele B. Willoughby Executive Vice President- eCommerce & Supply Chain Joseph R. Oliver Senior Vice President- Chief Accounting...

  • Page 114
    DICK'S SPORTING GOODS, INC. 345 Court Street Coraopolis, PA 15108 724-273-3400 www.DICKS.com