Dick's Sporting Goods 2014 Annual Report Download - page 83

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57
DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Dividends per Common Share – The Company declared and paid cash dividends of $0.50, $0.50 and $2.50 per share of
common stock and Class B common stock during fiscal 2014, 2013 and 2012, respectively. Fiscal 2012 included a special cash
dividend of $2.00 per share of common stock and Class B common stock.
Treasury Stock – 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 2014, the Company repurchased 4.3 million shares of its common
stock for $200.0 million. During fiscal 2013, the Company repurchased 4.8 million shares of its common stock for $255.6
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, shares of
common stock available for future issuance pursuant to the Plan were 10,862,360 shares.
The following represents total stock-based compensation recognized in the Consolidated Statements of Income for the fiscal
years presented (in thousands):
2014 2013 2012
Stock option expense $ 7,903 $ 8,263 $ 10,215
Restricted stock expense 18,372 18,856 21,966
Total stock-based compensation expense $ 26,275 $ 27,119 $ 32,181
Total related tax benefit $ 9,200 $ 9,230 $ 11,561
Stock Option Plans – Stock options are generally granted on an annual basis, vest 25% per year over four years and have a
seven-year maximum term.
The fair value of each stock option granted is estimated on the grant date using the Black-Scholes ("Black-Scholes") option
valuation model. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to
reflect market conditions and the Company's experience. These options are expensed on a straight-line basis over the vesting
period, which is considered to be the requisite service period. Compensation expense is recognized only for those options
expected to vest, with forfeitures estimated at the date of grant based on the Company's historical experience and future
expectations.
The fair value of stock-based awards to employees is estimated on the date of grant using the Black-Scholes valuation with the
following assumptions:
Employee Stock Option Plans
Black-Scholes Valuation Assumptions 2014 2013 2012
Expected life (years) (1) 5.23 5.33 5.70
Expected volatility (2) 31.97% - 44.48% 36.10% - 47.86% 44.52% - 49.38%
Weighted average volatility 36.28% 46.71% 47.25%
Risk-free interest rate (3) 1.44% - 2.39% 0.73% - 1.73% 0.59% - 1.57%
Expected dividend yield 0.90% - 1.13% 0.98% - 1.04% 0.98% - 1.25%
Weighted average grant date fair value $ 17.31 $ 18.31 $ 19.24
(1) The expected term of the options represents the estimated period of time until exercise and is based on historical
experience of similar awards giving consideration to the contractual terms, vesting schedules and expectations of
future employee behavior.
(2) Expected volatility is based on the historical volatility of the Company's common stock over a timeframe consistent
with the expected life of the stock options.