Dick's Sporting Goods 2014 Annual Report Download - page 88

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62
DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
The following table represents a reconciliation of the Company's total balance of unrecognized tax benefits, excluding interest
and penalties (in thousands):
2014 2013 2012
Beginning of fiscal year $ 7,507 $ 10,670 $ 18,692
Increases as a result of tax positions taken in a prior period 124 1,651 1,816
Decreases as a result of tax positions taken in a prior period — (2,240)(4,370)
Increases as a result of tax positions taken in the current period 1,057 985 1,740
Decreases as a result of settlements during the current period (312)(3,559)(6,405)
Reductions as a result of a lapse of statute of limitations during the
current period — — (803)
End of fiscal year $ 8,376 $ 7,507 $ 10,670
The balance at January 31, 2015 includes $5.4 million of unrecognized tax benefits that would impact our effective tax rate if
recognized. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense.
As of January 31, 2015, the liability for uncertain tax positions includes $1.8 million for the accrual of interest and penalties.
During fiscal 2014, 2013 and 2012, the Company recorded $0.3 million, $0.9 million and $0.8 million, respectively, for the
accrual of interest and penalties in the Consolidated Statements of Income. The Company has federal, state and local
examinations currently ongoing. It is possible that these examinations may be resolved within 12 months. Due to the potential
for resolution of these examinations, and the expiration of various statutes of limitation, it is reasonably possible that $3.6
million of the Company's gross unrecognized tax benefits and interest at January 31, 2015 could be recognized within the next
12 months. The Company does not anticipate that changes in its unrecognized tax benefits will have a material impact on the
Consolidated Statements of Income during fiscal 2015.
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 all prior tax years. The Company is no longer subject to examination in any
of its major state jurisdictions for years prior to 2007.
12. Earnings per Common Share
The computations for basic and diluted earnings per common share are as follows (in thousands, except per share data):
Fiscal Year Ended
2014 2013 2012
Earnings per common share - Basic:
Net income $ 344,198 $ 337,598 $ 290,709
Weighted average common shares outstanding - basic 119,244 122,878 121,629
Earnings per common share $ 2.89 $ 2.75 $ 2.39
Earnings per common share - Diluted:
Net income $ 344,198 $ 337,598 $ 290,709
Weighted average common shares outstanding - basic 119,244 122,878 121,629
Dilutive effect of stock-based awards 1,994 2,750 4,366
Weighted average common shares outstanding - diluted 121,238 125,628 125,995
Earnings per common share $ 2.84 $ 2.69 $ 2.31
Anti-dilutive stock-based awards excluded from diluted calculation 1,334 899 768