DICK'S Sporting Goods (DKS) 10-Q 29 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	3-May-14	23-May-14	23-May-14
		Common Stock	Class B Common Stock
Entity Registrant Name	'DICKS SPORTING GOODS INC	'	'
Entity Central Index Key	'0001089063	'	'
Current Fiscal Year End Date	'--01-31	'	'
Entity Filer Category	'Large Accelerated Filer	'	'
Document Type	'10-Q	'	'
Document Period End Date	3-May-14	'	'
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'Q1	'	'
Amendment Flag	'false	'	'
Entity Common Stock, Shares Outstanding	'	97,742,703	24,900,870
Entity Current Reporting Status	'Yes	'	'

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	3-May-14	4-May-13
Income Statement [Abstract]	'	'
Net sales	$1,438,908	$1,333,701
Cost of goods sold, including occupancy and distribution costs	998,025	922,047
GROSS PROFIT	440,883	411,654
Selling, general and administrative expenses	322,589	312,708
Pre-opening expenses	6,206	1,329
INCOME FROM OPERATIONS	112,088	97,617
Interest expense	610	669
Other income	-2,364	-6,204
INCOME BEFORE INCOME TAXES	113,842	103,152
Provision for income taxes	43,858	38,331
NET INCOME	$69,984	$64,821
EARNINGS PER COMMON SHARE:	'	'
Basic (in dollars per share)	$0.58	$0.53
Diluted (in dollars per share)	$0.57	$0.52
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:	'	'
Basic (in shares)	121,138	122,702
Diluted (in shares)	123,360	125,862
Cash dividend declared per share (in dollars per share)	$0.13	$0.13

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED (USD $)	3 Months Ended
In Thousands, unless otherwise specified	3-May-14	4-May-13
Statement of Comprehensive Income [Abstract]	'	'
NET INCOME	$69,984	$64,821
OTHER COMPREHENSIVE INCOME (LOSS):	'	'
Foreign currency translation adjustment, net of tax	7	-6
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	7	-6
COMPREHENSIVE INCOME	$69,991	$64,815

CONSOLIDATED_BALANCE_SHEETS_UN

CONSOLIDATED BALANCE SHEETS - UNAUDITED (USD $)	3-May-14	Feb. 01, 2014	4-May-13
In Thousands, unless otherwise specified
CURRENT ASSETS:	'	'	'
Cash and cash equivalents	$139,372	$181,731	$113,889
Accounts receivable, net	66,479	60,779	46,064
Income taxes receivable	6,861	7,275	3,250
Inventories, net	1,480,724	1,232,065	1,312,737
Prepaid expenses and other current assets	93,751	99,386	84,275
Deferred income taxes	33,715	38,835	42,707
Total current assets	1,820,902	1,620,071	1,602,922
Property and equipment, net	1,077,254	1,084,529	876,734
Intangible assets, net	97,795	98,255	98,380
Goodwill	200,594	200,594	200,594
Other assets:	'	'	'
Deferred income taxes	2,606	2,477	3,798
Other	70,286	65,561	155,447
Total other assets	72,892	68,038	159,245
TOTAL ASSETS	3,269,437	3,071,487	2,937,875
CURRENT LIABILITIES:	'	'	'
Accounts payable	701,005	562,439	658,626
Accrued expenses	273,761	265,040	246,652
Deferred revenue and other liabilities	134,406	154,384	120,767
Income taxes payable	34,914	19,825	18,469
Current portion of other long-term debt and leasing obligations	459	899	8,407
Total current liabilities	1,144,545	1,002,587	1,052,921
LONG-TERM LIABILITIES:	'	'	'
Other long-term debt and leasing obligations	6,356	6,476	7,137
Deferred income taxes	25,965	38,617	5,788
Deferred revenue and other liabilities	357,359	331,628	295,487
Total long-term liabilities	389,680	376,721	308,412
COMMITMENTS AND CONTINGENCIES	'	'	'
STOCKHOLDERS' EQUITY:	'	'	'
Additional paid-in capital	972,338	958,943	894,237
Retained earnings	1,242,140	1,187,514	961,517
Accumulated other comprehensive income	31	24	106
Treasury stock, at cost	-480,508	-455,512	-280,544
Total stockholders' equity	1,735,212	1,692,179	1,576,542
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	3,269,437	3,071,487	2,937,875
Common Stock	'	'	'
STOCKHOLDERS' EQUITY:	'	'	'
Common stock	962	961	977
Class B Common Stock	'	'	'
STOCKHOLDERS' EQUITY:	'	'	'
Common stock	$249	$249	$249

CONSOLIDATED_STATEMENTS_OF_CHA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED (USD $)	Total	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock	Common Stock	Common Stock
In Thousands, except Share data, unless otherwise specified							Class B Common Stock
BALANCE at Feb. 01, 2014	$1,692,179	$958,943	$1,187,514	$24	($455,512)	$961	$249
BALANCE (in shares) at Feb. 01, 2014	'	'	'	'	'	96,065,661	24,900,870
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'	'	'
Exercise of stock options	7,945	7,942	'	'	'	3	'
Exercise of stock options (in shares)	'	'	'	'	'	349,529	'
Restricted stock vested	0	-3	'	'	'	3	'
Restricted stock vested (in shares)	'	'	'	'	'	408,954	'
Minimum tax withholding requirements	-7,499	-7,498	'	'	'	-1	'
Minimum tax withholding requirements (in shares)	'	'	'	'	'	-133,223	'
Net income	69,984	'	69,984	'	'	'	'
Stock-based compensation	6,705	6,705	'	'	'	'	'
Total tax benefit from exercise of stock options	6,249	6,249	'	'	'	'	'
Foreign currency translation adjustment, net of taxes of $4	7	'	'	7	'	'	'
Purchase of shares for treasury	-25,000	'	'	'	-24,996	-4	'
Purchase of shares for treasury (in shares)	'	'	'	'	'	-450,970	'
Cash dividend declared	-15,358	'	-15,358	'	'	'	'
BALANCE at May. 03, 2014	$1,735,212	$972,338	$1,242,140	$31	($480,508)	$962	$249
BALANCE (in shares) at May. 03, 2014	'	'	'	'	'	96,239,951	24,900,870

CONSOLIDATED_STATEMENTS_OF_CHA1

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED (Parenthetical) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	3-May-14
Statement of Stockholders' Equity [Abstract]	'
Foreign currency translation adjustment, taxes	$4

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED (USD $)	3 Months Ended
In Thousands, unless otherwise specified	3-May-14	4-May-13
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net income	$69,984	$64,821
Adjustments to reconcile net income to net cash provided by (used in) operating activities	'	'
Depreciation and amortization	36,859	32,808
Deferred income taxes	-7,661	-13,459
Stock-based compensation	6,705	7,085
Excess tax benefit from exercise of stock options	-6,240	-12,709
Tax benefit from exercise of stock options	9	84
Gain on sale of asset	-14,428	0
Other non-cash items	145	145
Changes in assets and liabilities:	'	'
Accounts receivable	-375	-4,880
Inventories	-248,659	-216,551
Prepaid expenses and other assets	-14,407	-10,455
Accounts payable	168,833	152,061
Accrued expenses	-2,729	-28,000
Income taxes payable / receivable	21,743	-25,081
Deferred construction allowances	24,002	7,095
Deferred revenue and other liabilities	-19,857	-28,316
Net cash provided by (used in) operating activities	13,924	-75,352
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Capital expenditures	-63,918	-33,954
Proceeds from sale of other assets	73,392	0
Deposits and purchases of other assets	-4	-34,674
Net cash provided by (used in) investing activities	9,470	-68,628
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Payments on other long-term debt and leasing obligations	-560	-731
Construction allowance receipts	0	0
Proceeds from exercise of stock options	7,945	12,909
Excess tax benefit from exercise of stock options	6,240	12,709
Minimum tax withholding requirements	-7,499	-12,773
Cash paid for treasury stock	-25,000	-80,603
Cash dividend paid to stockholders	-16,619	-18,168
Decrease in bank overdraft	-30,267	-682
Net cash used in financing activities	-65,760	-87,339
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	7	-6
NET DECREASE IN CASH AND CASH EQUIVALENTS	-42,359	-231,325
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	181,731	345,214
CASH AND CASH EQUIVALENTS, END OF PERIOD	139,372	113,889
Supplemental disclosure of cash flow information:	'	'
Accrued property and equipment	41,596	28,605
Cash paid for interest	556	517
Cash paid for income taxes	$29,615	$83,733

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	3-May-14
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	Dick's Sporting Goods, Inc. (together with its subsidiaries, referred to as the "Company", "we", "us" and "our" unless specified otherwise) is a leading omni-channel sporting goods retailer offering an extensive assortment of authentic, high-quality 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. When used in this Quarterly Report on Form 10-Q, unless the context otherwise requires or otherwise specifies, any reference to "year" is to our fiscal year.
	The accompanying unaudited consolidated financial statements have been prepared by us in accordance with the requirements for Quarterly Reports on Form 10-Q and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The interim consolidated financial statements are unaudited and have been prepared on the same basis as the annual audited consolidated financial statements. In the opinion of management, such unaudited consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the interim financial information. This unaudited interim financial information should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended February 1, 2014 as filed with the Securities and Exchange Commission on March 28, 2014. Operating results for the 13 weeks ended May 3, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2015 or any other period.

Store_Closings

Store Closings	3 Months Ended
	3-May-14
Store Closings [Abstract]	'
Store Closings	'
	Store Closings
	The calculation of accrued store closing and relocation reserves primarily includes future minimum lease payments, maintenance costs and taxes from the date of closure or relocation to the end of the remaining lease term, net of contractual or estimated sublease income. The liability is discounted using a credit-adjusted risk-free rate of interest. The assumptions used in the calculation of the accrued store closing and relocation reserves are evaluated each quarter.
	The following table summarizes the activity in fiscal 2014 and 2013 (in thousands):
		13 Weeks Ended
		May 3,			May 4,
		2014			2013
	Accrued store closing and relocation reserves, beginning of period	$	17,102		$	31,785
	Expense charged to earnings	397			—
	Cash payments	(1,183		)	(2,496		)
	Interest accretion and other changes in assumptions	13			(1,008		)
	Accrued store closing and relocation reserves, end of period	16,329			28,281
	Less: current portion of accrued store closing and relocation reserves	(5,945		)	(6,675		)
	Long-term portion of accrued store closing and relocation reserves	$	10,384		$	21,606
	The current portion of accrued store closing and relocation reserves is included within accrued expenses and the long-term portion is included within long-term deferred revenue and other liabilities on the unaudited Consolidated Balance Sheets. The related expense is recorded within selling, general and administrative expenses on the unaudited Consolidated Statements of Income.

Earnings_Per_Common_Share

Earnings Per Common Share	3 Months Ended
	3-May-14
Earnings Per Share [Abstract]	'
Earnings Per Common Share	'
	Earnings Per Common Share
	Basic earnings per common share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed based on the weighted average number of shares of common stock, plus the effect of dilutive potential common shares outstanding during the period, using the treasury stock method. Dilutive potential common shares include outstanding stock options, restricted stock and warrants.
	The computations for basic and diluted earnings per common share are as follows (in thousands, except per share data):
		13 Weeks Ended
		May 3,		May 4,
		2014		2013
	Net income	$	69,984	$	64,821
	Weighted average common shares outstanding - basic	121,138		122,702
	Dilutive effect of stock-based awards	2,222		3,160
	Weighted average common shares outstanding - diluted	123,360		125,862
	Earnings per common share - basic	$	0.58	$	0.53
	Earnings per common share - diluted	$	0.57	$	0.52
	Anti-dilutive stock-based awards excluded from diluted calculation	973		749

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	3-May-14
Fair Value Disclosures [Abstract]	'
Fair Value Measurements	'
	Fair Value Measurements
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accounting Standard Codification ("ASC") 820, "Fair Value Measurement and Disclosures", outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures and prioritizes the inputs used in measuring fair value as follows:
	Level 1:	Observable inputs such as quoted prices in active markets;
	Level 2:	Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
	Level 3:	Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
	Assets measured at fair value on a recurring basis as of May 3, 2014 and February 1, 2014 are set forth in the table below (in thousands):
	Description		Level 1		Level 2		Level 3
	As of May 3, 2014
	Assets:
	Deferred compensation plan assets held in trust (1)		$	54,178	$	—	$	—
	Total assets		$	54,178	$	—	$	—
	As of February 1, 2014
	Assets:
	Deferred compensation plan assets held in trust (1)		$	49,351	$	—	$	—
	Total assets		$	49,351	$	—	$	—
	(1)	Consists of investments in various mutual funds made by eligible individuals as part of the Company's deferred compensation plan.
	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 May 3, 2014 and February 1, 2014.
	The Company uses quoted prices in active markets to determine the fair value of the aforementioned assets determined to be Level 1 instruments. The Company's policy for recognition of transfers between levels of the fair value hierarchy is to recognize any transfer at the end of the fiscal quarter in which the determination to transfer was made. The Company did not transfer any assets or liabilities among the levels within the fair value hierarchy during the 13 weeks ended May 3, 2014 or the fiscal year ended February 1, 2014.

Subsequent_Event

Subsequent Event	3 Months Ended
	3-May-14
Subsequent Events [Abstract]	'
Subsequent Event	'
	Subsequent Event
	On May 15, 2014, our Board of Directors declared a quarterly cash dividend in the amount of $0.125 per share of common stock and Class B common stock payable on June 27, 2014 to stockholders of record as of the close of business on June 6, 2014.

Store_Closings_Tables

Store Closings (Tables)	3 Months Ended
	3-May-14
Store Closings [Abstract]	'
Schedule of the entity's accrued store closing and relocation reserves	'
	The following table summarizes the activity in fiscal 2014 and 2013 (in thousands):
		13 Weeks Ended
		May 3,			May 4,
		2014			2013
	Accrued store closing and relocation reserves, beginning of period	$	17,102		$	31,785
	Expense charged to earnings	397			—
	Cash payments	(1,183		)	(2,496		)
	Interest accretion and other changes in assumptions	13			(1,008		)
	Accrued store closing and relocation reserves, end of period	16,329			28,281
	Less: current portion of accrued store closing and relocation reserves	(5,945		)	(6,675		)
	Long-term portion of accrued store closing and relocation reserves	$	10,384		$	21,606

Earnings_Per_Common_Share_Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	3-May-14
Earnings Per Share [Abstract]	'
Schedule of the computations for basic and diluted earnings per common share	'
	The computations for basic and diluted earnings per common share are as follows (in thousands, except per share data):
		13 Weeks Ended
		May 3,		May 4,
		2014		2013
	Net income	$	69,984	$	64,821
	Weighted average common shares outstanding - basic	121,138		122,702
	Dilutive effect of stock-based awards	2,222		3,160
	Weighted average common shares outstanding - diluted	123,360		125,862
	Earnings per common share - basic	$	0.58	$	0.53
	Earnings per common share - diluted	$	0.57	$	0.52
	Anti-dilutive stock-based awards excluded from diluted calculation	973		749

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	3-May-14
Fair Value Disclosures [Abstract]	'
Schedule of assets measured at fair value on a recurring basis	'
	Assets measured at fair value on a recurring basis as of May 3, 2014 and February 1, 2014 are set forth in the table below (in thousands):
	Description		Level 1		Level 2		Level 3
	As of May 3, 2014
	Assets:
	Deferred compensation plan assets held in trust (1)		$	54,178	$	—	$	—
	Total assets		$	54,178	$	—	$	—
	As of February 1, 2014
	Assets:
	Deferred compensation plan assets held in trust (1)		$	49,351	$	—	$	—
	Total assets		$	49,351	$	—	$	—
	(1)	Consists of investments in various mutual funds made by eligible individuals as part of the Company's deferred compensation plan.

Store_Closings_Details

Store Closings (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	3-May-14	4-May-13
Store Closings	'	'
Accrued store closing and relocation reserves, beginning of period	$17,102	$31,785
Expense charged to earnings	397	0
Cash payments	-1,183	-2,496
Interest accretion and other changes in assumptions	13	-1,008
Accrued store closing and relocation reserves, end of period	16,329	28,281
Less: current portion of accrued store closing and relocation reserves	-5,945	-6,675
Long-term portion of accrued store closing and relocation reserves	$10,384	$21,606

Earnings_Per_Common_Share_Deta

Earnings Per Common Share (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	3-May-14	4-May-13
Earnings Per Share [Abstract]	'	'
Net income	$69,984	$64,821
Weighted average common shares outstanding - basic	121,138	122,702
Dilutive effect of stock-based awards (in shares)	2,222	3,160
Weighted average common shares outstanding - diluted	123,360	125,862
Earnings per common share - basic (in dollars per share)	$0.58	$0.53
Earnings per common share - diluted (in dollars per share)	$0.57	$0.52
Anti-dilutive stock-based awards excluded from diluted calculation (in shares)	973	749

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	3-May-14		Feb. 01, 2014
In Thousands, unless otherwise specified
Level 1	'		'
Fair Value Measurements	'		'
Deferred compensation plan assets held in trust	$54,178	[1]	$49,351	[1]
Total assets	54,178		49,351
Level 2	'		'
Fair Value Measurements	'		'
Deferred compensation plan assets held in trust	0	[1]	0	[1]
Total assets	0		0
Level 3	'		'
Fair Value Measurements	'		'
Deferred compensation plan assets held in trust	0	[1]	0	[1]
Total assets	$0		$0
[1]	Consists of investments in various mutual funds made by eligible individuals as part of the Company's deferred compensation plan.

Subsequent_Event_Details

Subsequent Event (Details) (Subsequent Event, USD $)	0 Months Ended
	15-May-14
Subsequent Event	'
Declaration date	15-May-14
Payment date	27-Jun-14
Record date	6-Jun-14
Common Stock	'
Subsequent Event	'
Dividend amount (in dollars per share)	0.125
Class B Common Stock	'
Subsequent Event	'
Dividend amount (in dollars per share)	0.125