DICK'S Sporting Goods (DKS) 10-Q 28 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Aug. 02, 2014	Aug. 22, 2014	Aug. 22, 2014
		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	2-Aug-14	'	'
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'Q2	'	'
Amendment Flag	'false	'	'
Entity Common Stock, Shares Outstanding	'	96,338,020	24,900,870
Entity Current Reporting Status	'Yes	'	'

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013
Income Statement [Abstract]	'	'	'	'
Net sales	$1,688,890	$1,531,431	$3,127,798	$2,865,132
Cost of goods sold, including occupancy and distribution costs	1,186,334	1,052,101	2,184,359	1,974,149
GROSS PROFIT	502,556	479,330	943,439	890,983
Selling, general and administrative expenses	383,054	336,950	705,643	649,658
Pre-opening expenses	7,940	5,285	14,146	6,614
INCOME FROM OPERATIONS	111,562	137,095	223,650	234,711
Interest expense	763	716	1,372	1,385
Other income	-2,013	-1,735	-4,377	-7,940
INCOME BEFORE INCOME TAXES	112,812	138,114	226,655	241,266
Provision for income taxes	43,345	53,951	87,205	92,282
NET INCOME	$69,467	$84,163	$139,450	$148,984
EARNINGS PER COMMON SHARE:	'	'	'	'
Basic (in dollars per share)	$0.58	$0.68	$1.16	$1.21
Diluted (in dollars per share)	$0.57	$0.67	$1.14	$1.18
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:	'	'	'	'
Basic (in shares)	119,950	122,901	120,544	122,802
Diluted (in shares)	121,840	125,593	122,600	125,728
Cash dividends declared per common share (in dollars per share)	$0.13	$0.13	$0.25	$0.25

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013
Statement of Comprehensive Income [Abstract]	'	'	'	'
NET INCOME	$69,467	$84,163	$139,450	$148,984
OTHER COMPREHENSIVE INCOME (LOSS):	'	'	'	'
Foreign currency translation adjustment, net of tax	9	-25	16	-31
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	9	-25	16	-31
COMPREHENSIVE INCOME	$69,476	$84,138	$139,466	$148,953

CONSOLIDATED_BALANCE_SHEETS_UN

CONSOLIDATED BALANCE SHEETS - UNAUDITED (USD $)	Aug. 02, 2014	Feb. 01, 2014	Aug. 03, 2013
In Thousands, unless otherwise specified
CURRENT ASSETS:	'	'	'
Cash and cash equivalents	$100,132	$181,731	$134,765
Accounts receivable, net	102,248	60,779	84,956
Income taxes receivable	6,328	7,275	2,455
Inventories, net	1,418,660	1,232,065	1,275,215
Prepaid expenses and other current assets	90,369	99,386	109,146
Deferred income taxes	39,423	38,835	46,138
Total current assets	1,757,160	1,620,071	1,652,675
Property and equipment, net	1,138,182	1,084,529	937,310
Intangible assets, net	84,901	98,255	97,858
Goodwill	200,594	200,594	200,594
Other assets:	'	'	'
Deferred income taxes	3,169	2,477	4,114
Other	71,477	65,561	126,920
Total other assets	74,646	68,038	131,034
TOTAL ASSETS	3,255,483	3,071,487	3,019,471
CURRENT LIABILITIES:	'	'	'
Accounts payable	688,442	562,439	598,263
Accrued expenses	305,937	265,040	295,010
Deferred revenue and other liabilities	125,258	154,384	111,101
Income taxes payable	12,784	19,825	12,777
Current portion of other long-term debt and leasing obligations	461	899	8,300
Total current liabilities	1,132,882	1,002,587	1,025,451
LONG-TERM LIABILITIES:	'	'	'
Other long-term debt and leasing obligations	6,232	6,476	6,360
Deferred income taxes	18,473	38,617	8,449
Deferred revenue and other liabilities	401,021	331,628	314,756
Total long-term liabilities	425,726	376,721	329,565
COMMITMENTS AND CONTINGENCIES	'	'	'
STOCKHOLDERS' EQUITY:	'	'	'
Additional paid-in capital	979,696	958,943	913,580
Retained earnings	1,296,434	1,187,514	1,030,108
Accumulated other comprehensive income	40	24	81
Treasury stock, at cost	-580,485	-455,512	-280,544
Total stockholders' equity	1,696,875	1,692,179	1,664,455
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	3,255,483	3,071,487	3,019,471
Common Stock	'	'	'
STOCKHOLDERS' EQUITY:	'	'	'
Common stock	941	961	981
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	8,879	8,875	'	'	'	4	'
Exercise of stock options (in shares)	'	'	'	'	'	399,272	'
Restricted stock vested	0	-3	'	'	'	3	'
Restricted stock vested (in shares)	'	'	'	'	'	421,098	'
Minimum tax withholding requirements	-7,645	-7,644	'	'	'	-1	'
Minimum tax withholding requirements (in shares)	'	'	'	'	'	-136,613	'
Net income	139,450	'	139,450	'	'	'	'
Stock-based compensation	12,915	12,915	'	'	'	'	'
Total tax benefit from exercise of stock options	6,610	6,610	'	'	'	'	'
Foreign currency translation adjustment, net of taxes of $9	16	'	'	16	'	'	'
Purchase of shares for treasury	-124,999	'	'	'	-124,973	-26	'
Purchase of shares for treasury (in shares)	'	'	'	'	'	-2,697,736	'
Cash dividends declared	-30,530	'	-30,530	'	'	'	'
BALANCE at Aug. 02, 2014	$1,696,875	$979,696	$1,296,434	$40	($580,485)	$941	$249
BALANCE (in shares) at Aug. 02, 2014	'	'	'	'	'	94,051,682	24,900,870

CONSOLIDATED_STATEMENTS_OF_CHA1

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED (Parenthetical) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Aug. 02, 2014
Statement of Stockholders' Equity [Abstract]	'
Foreign currency translation adjustment, taxes	$9

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Aug. 02, 2014	Aug. 03, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net income	$139,450	$148,984
Adjustments to reconcile net income to net cash provided by operating activities	'	'
Depreciation and amortization	89,771	76,314
Deferred income taxes	-21,424	-14,545
Stock-based compensation	12,915	13,925
Excess tax benefit from exercise of stock options	-6,588	-15,475
Tax benefit from exercise of stock options	22	102
Gain on sale of asset	-14,428	0
Other non-cash items	290	290
Changes in assets and liabilities:	'	'
Accounts receivable	-11,023	-21,690
Inventories	-186,595	-179,029
Prepaid expenses and other assets	-10,980	-12,738
Accounts payable	133,245	83,458
Accrued expenses	7,697	-15,561
Income taxes payable / receivable	494	-27,212
Deferred construction allowances	44,934	12,756
Deferred revenue and other liabilities	-25,561	-44,173
Net cash provided by operating activities	152,219	5,406
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Capital expenditures	-150,382	-95,479
Proceeds from sale of other assets	73,392	11,000
Deposits and purchases of other assets	-79	-48,469
Net cash used in investing activities	-77,069	-132,948
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Payments on other long-term debt and leasing obligations	-682	-1,615
Construction allowance receipts	0	0
Proceeds from exercise of stock options	8,879	22,736
Excess tax benefit from exercise of stock options	6,588	15,475
Minimum tax withholding requirements	-7,645	-12,877
Cash paid for treasury stock	-124,999	-80,603
Cash dividends paid to stockholders	-31,664	-33,550
(Decrease) increase in bank overdraft	-7,242	7,558
Net cash used in financing activities	-156,765	-82,876
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	16	-31
NET DECREASE IN CASH AND CASH EQUIVALENTS	-81,599	-210,449
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	181,731	345,214
CASH AND CASH EQUIVALENTS, END OF PERIOD	100,132	134,765
Supplemental disclosure of cash flow information:	'	'
Accrued property and equipment	71,077	77,409
Cash paid for interest	1,176	1,091
Cash paid for income taxes	$107,880	$140,712

Basis_of_Presentation

Basis of Presentation	6 Months Ended
	Aug. 02, 2014
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 and 26 weeks ended August 2, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2015 or any other period.
	Recently Issued Accounting Pronouncement
	Contracts with Customers
	In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers." This update requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for 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 periods beginning after December 15, 2016, including interim periods within that reporting period, and permits the use of either the retrospective or cumulative effect transition method. Early application is not permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on the Company’s Consolidated Financial Statements.

Store_Closings

Store Closings	6 Months Ended
	Aug. 02, 2014
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):
		26 Weeks Ended
		August 2,			August 3,
		2014			2013
	Accrued store closing and relocation reserves, beginning of period	$	17,102		$	31,785
	Expense charged to earnings	2,119			—
	Cash payments	(4,080		)	(4,564		)
	Interest accretion and other changes in assumptions	(152		)	(3,274		)
	Accrued store closing and relocation reserves, end of period	14,989			23,947
	Less: current portion of accrued store closing and relocation reserves	(4,579		)	(10,732		)
	Long-term portion of accrued store closing and relocation reserves	$	10,410		$	13,215
	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	6 Months Ended
	Aug. 02, 2014
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				26 Weeks Ended
		August 2,		August 3,		August 2,		August 3,
		2014		2013		2014		2013
	Net income	$	69,467	$	84,163	$	139,450	$	148,984
	Weighted average common shares outstanding - basic	119,950		122,901		120,544		122,802
	Dilutive effect of stock-based awards	1,890		2,692		2,056		2,926
	Weighted average common shares outstanding - diluted	121,840		125,593		122,600		125,728
	Earnings per common share - basic	$	0.58	$	0.68	$	1.16	$	1.21
	Earnings per common share - diluted	$	0.57	$	0.67	$	1.14	$	1.18
	Anti-dilutive stock-based awards excluded from diluted calculation	1,903		1,095		1,438		922

Fair_Value_Measurements

Fair Value Measurements	6 Months Ended
	Aug. 02, 2014
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 August 2, 2014 and February 1, 2014 are set forth in the table below (in thousands):
	Description		Level 1		Level 2		Level 3
	As of August 2, 2014
	Assets:
	Deferred compensation plan assets held in trust (1)		$	55,560	$	—	$	—
	Total assets		$	55,560	$	—	$	—
	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 August 2, 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 26 weeks ended August 2, 2014 or the fiscal year ended February 1, 2014.

Subsequent_Event

Subsequent Event	6 Months Ended
	Aug. 02, 2014
Subsequent Events [Abstract]	'
Subsequent Event	'
	Subsequent Event
	On August 14, 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 September 26, 2014 to stockholders of record as of the close of business on September 5, 2014.

Store_Closings_Tables

Store Closings (Tables)	6 Months Ended
	Aug. 02, 2014
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):
		26 Weeks Ended
		August 2,			August 3,
		2014			2013
	Accrued store closing and relocation reserves, beginning of period	$	17,102		$	31,785
	Expense charged to earnings	2,119			—
	Cash payments	(4,080		)	(4,564		)
	Interest accretion and other changes in assumptions	(152		)	(3,274		)
	Accrued store closing and relocation reserves, end of period	14,989			23,947
	Less: current portion of accrued store closing and relocation reserves	(4,579		)	(10,732		)
	Long-term portion of accrued store closing and relocation reserves	$	10,410		$	13,215

Earnings_Per_Common_Share_Tabl

Earnings Per Common Share (Tables)	6 Months Ended
	Aug. 02, 2014
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				26 Weeks Ended
		August 2,		August 3,		August 2,		August 3,
		2014		2013		2014		2013
	Net income	$	69,467	$	84,163	$	139,450	$	148,984
	Weighted average common shares outstanding - basic	119,950		122,901		120,544		122,802
	Dilutive effect of stock-based awards	1,890		2,692		2,056		2,926
	Weighted average common shares outstanding - diluted	121,840		125,593		122,600		125,728
	Earnings per common share - basic	$	0.58	$	0.68	$	1.16	$	1.21
	Earnings per common share - diluted	$	0.57	$	0.67	$	1.14	$	1.18
	Anti-dilutive stock-based awards excluded from diluted calculation	1,903		1,095		1,438		922

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	6 Months Ended
	Aug. 02, 2014
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 August 2, 2014 and February 1, 2014 are set forth in the table below (in thousands):
	Description		Level 1		Level 2		Level 3
	As of August 2, 2014
	Assets:
	Deferred compensation plan assets held in trust (1)		$	55,560	$	—	$	—
	Total assets		$	55,560	$	—	$	—
	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 $)	6 Months Ended
In Thousands, unless otherwise specified	Aug. 02, 2014	Aug. 03, 2013
Store Closings	'	'
Accrued store closing and relocation reserves, beginning of period	$17,102	$31,785
Expense charged to earnings	2,119	0
Cash payments	-4,080	-4,564
Interest accretion and other changes in assumptions	-152	-3,274
Accrued store closing and relocation reserves, end of period	14,989	23,947
Less: current portion of accrued store closing and relocation reserves	-4,579	-10,732
Long-term portion of accrued store closing and relocation reserves	$10,410	$13,215

Earnings_Per_Common_Share_Deta

Earnings Per Common Share (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013
Earnings Per Share [Abstract]	'	'	'	'
Net income	$69,467	$84,163	$139,450	$148,984
Weighted average common shares outstanding - basic	119,950	122,901	120,544	122,802
Dilutive effect of stock-based awards (in shares)	1,890	2,692	2,056	2,926
Weighted average common shares outstanding - diluted	121,840	125,593	122,600	125,728
Earnings per common share - basic (in dollars per share)	$0.58	$0.68	$1.16	$1.21
Earnings per common share - diluted (in dollars per share)	$0.57	$0.67	$1.14	$1.18
Anti-dilutive stock-based awards excluded from diluted calculation (in shares)	1,903	1,095	1,438	922

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Aug. 02, 2014		Feb. 01, 2014
In Thousands, unless otherwise specified
Level 1	'		'
Fair Value Measurements	'		'
Deferred compensation plan assets held in trust	$55,560	[1]	$49,351	[1]
Total assets	55,560		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
	Aug. 14, 2014
Subsequent Event	'
Declaration date	14-Aug-14
Payment date	26-Sep-14
Record date	5-Sep-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