DICK'S Sporting Goods (DKS) 10-Q 28 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	2-May-15	22-May-15
Entity Registrant Name	DICKS SPORTING GOODS INC
Entity Central Index Key	1089063
Current Fiscal Year End Date	-29
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	2-May-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE
Entity Current Reporting Status	Yes
Common Stock
Entity Common Stock, Shares Outstanding		93,552,838
Class B Common Stock
Entity Common Stock, Shares Outstanding		24,900,870

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	2-May-15	3-May-14
Income Statement [Abstract]
Net sales	$1,565,308	$1,438,908
Cost of goods sold, including occupancy and distribution costs	1,096,320	998,025
GROSS PROFIT	468,988	440,883
Selling, general and administrative expenses	360,736	322,589
Pre-opening expenses	6,340	6,206
INCOME FROM OPERATIONS	101,912	112,088
Interest expense	634	610
Other income	-2,150	-2,364
INCOME BEFORE INCOME TAXES	103,428	113,842
Provision for income taxes	40,083	43,858
NET INCOME	$63,345	$69,984
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$0.54	$0.58
Diluted (in dollars per share)	$0.53	$0.57
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	117,044	121,138
Diluted (in shares)	118,906	123,360
Cash dividend declared per common share (in dollars per share)	$0.14	$0.13

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED (USD $)	3 Months Ended
In Thousands, unless otherwise specified	2-May-15	3-May-14
Statement of Comprehensive Income [Abstract]
NET INCOME	$63,345	$69,984
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustment, net of tax	31	7
TOTAL OTHER COMPREHENSIVE INCOME	31	7
COMPREHENSIVE INCOME	$63,376	$69,991

CONSOLIDATED_BALANCE_SHEETS_UN

CONSOLIDATED BALANCE SHEETS - UNAUDITED (USD $)	2-May-15	Jan. 31, 2015	3-May-14
In Thousands, unless otherwise specified
CURRENT ASSETS:
Cash and cash equivalents	$81,409	$221,679	$139,372
Accounts receivable, net	63,871	80,292	66,479
Income taxes receivable	5,748	14,293	6,861
Inventories, net	1,623,753	1,390,767	1,480,724
Prepaid expenses and other current assets	108,773	91,767	93,751
Deferred income taxes	45,555	51,586	33,715
Total current assets	1,929,109	1,850,384	1,820,902
Property and equipment, net	1,220,471	1,203,382	1,077,254
Intangible assets, net	110,179	110,162	97,795
Goodwill	200,594	200,594	200,594
Other assets:
Deferred income taxes	812	1,862	2,606
Other	73,863	69,814	70,286
Total other assets	74,675	71,676	72,892
TOTAL ASSETS	3,535,028	3,436,198	3,269,437
CURRENT LIABILITIES:
Accounts payable	777,800	614,511	701,005
Accrued expenses	275,561	283,828	273,761
Deferred revenue and other liabilities	149,974	172,259	134,406
Income taxes payable	25,176	47,698	34,914
Current portion of other long-term debt and leasing obligations	539	537	459
Total current liabilities	1,229,050	1,118,833	1,144,545
LONG-TERM LIABILITIES:
Revolving credit borrowings	51,200	0	0
Other long-term debt and leasing obligations	5,781	5,913	6,356
Deferred income taxes	42,902	44,494	25,965
Deferred revenue and other liabilities	462,974	434,733	357,359
Total long-term liabilities	562,857	485,140	389,680
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Additional paid-in capital	1,029,208	1,015,404	972,338
Retained earnings	1,518,237	1,471,182	1,242,140
Accumulated other comprehensive (loss) income	-42	-73	31
Treasury stock, at cost	-805,443	-655,469	-480,508
Total stockholders' equity	1,743,121	1,832,225	1,735,212
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	3,535,028	3,436,198	3,269,437
Common Stock
STOCKHOLDERS' EQUITY:
Common stock	912	932	962
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 Loss	Treasury Stock	Common Stock	Common Stock
In Thousands, except Share data, unless otherwise specified							Class B Common Stock
BALANCE at Jan. 31, 2015	$1,832,225	$1,015,404	$1,471,182	($73)	($655,469)	$932	$249
BALANCE (in shares) at Jan. 31, 2015						93,205,708	24,900,870
(Decrease) Increase in Stockholders' Equity
Exercise of stock options	9,245	9,242				3
Exercise of stock options (in shares)						381,445
Restricted stock vested	0	-4				4
Restricted stock vested (in shares)						381,761
Minimum tax withholding requirements	-7,507	-7,506				-1
Minimum tax withholding requirements (in shares)						-129,006
Net income	63,345		63,345
Stock-based compensation	7,008	7,008
Total tax benefit from exercise of stock options	5,064	5,064
Foreign currency translation adjustment, net of taxes of $18	31			31
Purchase of shares for treasury	-150,000				-149,974	-26
Purchase of shares for treasury (in shares)						-2,627,320
Cash dividend declared	-16,290		-16,290
BALANCE at May. 02, 2015	$1,743,121	$1,029,208	$1,518,237	($42)	($805,443)	$912	$249
BALANCE (in shares) at May. 02, 2015						91,212,588	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	2-May-15
Statement of Stockholders' Equity [Abstract]
Foreign currency translation adjustment, taxes	$18

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED (USD $)	3 Months Ended
In Thousands, unless otherwise specified	2-May-15	3-May-14
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$63,345	$69,984
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	42,576	36,859
Deferred income taxes	5,489	-7,661
Stock-based compensation	7,008	6,705
Excess tax benefit from exercise of stock options	-5,114	-6,231
Gain on sale of asset	0	-14,428
Other non-cash items	133	145
Changes in assets and liabilities:
Accounts receivable	2,550	-375
Inventories	-232,986	-248,659
Prepaid expenses and other assets	-16,878	-14,407
Accounts payable	163,478	168,833
Accrued expenses	-9,365	-2,729
Income taxes payable / receivable	-8,914	21,743
Deferred construction allowances	40,579	24,002
Deferred revenue and other liabilities	-16,393	-19,857
Net cash provided by operating activities	35,508	13,924
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	-65,724	-63,918
Proceeds from sale of other assets	0	73,392
Deposits and purchases of other assets	-406	-4
Net cash (used in) provided by investing activities	-66,130	9,470
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings	124,300	0
Revolving credit repayments	-73,100	0
Payments on other long-term debt and leasing obligations	-130	-560
Construction allowance receipts	0	0
Proceeds from exercise of stock options	9,245	7,945
Excess tax benefit from exercise of stock options	5,115	6,240
Minimum tax withholding requirements	-7,507	-7,499
Cash paid for treasury stock	-150,000	-25,000
Cash dividend paid to stockholders	-17,413	-16,619
Decrease in bank overdraft	-189	-30,267
Net cash used in financing activities	-109,679	-65,760
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	31	7
NET DECREASE IN CASH AND CASH EQUIVALENTS	-140,270	-42,359
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	221,679	181,731
CASH AND CASH EQUIVALENTS, END OF PERIOD	81,409	139,372
Supplemental disclosure of cash flow information:
Accrued property and equipment	38,400	41,596
Cash paid for interest	456	556
Cash paid for income taxes	$43,756	$29,615

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	2-May-15
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 through a blend of dedicated associates, in-store services and unique specialty shop-in-shops. 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 January 31, 2015 as filed with the Securities and Exchange Commission on March 27, 2015. Operating results for the 13 weeks ended May 2, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending January 30, 2016 or any other period.
	Recently Issued Accounting Pronouncements
	Debt Issuance Costs
	In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, "Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs." This update requires an entity to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 does not affect the recognition and measurement guidance for debt issuance costs. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early application is permitted for financial statements that have not been previously issued. The Company does not expect that the adoption of this guidance will have a material impact on the Company’s Consolidated Financial Statements.
	Contracts with Customers
	In May 2014, the FASB issued 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	3 Months Ended
	2-May-15
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 2015 and 2014 (in thousands):
		13 Weeks Ended
		May 2,			May 3,
		2015			2014
	Accrued store closing and relocation reserves, beginning of period	$	12,785		$	17,102
	Expense charged to earnings	1,021			397
	Cash payments	(1,141		)	(1,183		)
	Interest accretion and other changes in assumptions	87			13
	Accrued store closing and relocation reserves, end of period	12,752			16,329
	Less: current portion of accrued store closing and relocation reserves	(4,159		)	(5,945		)
	Long-term portion of accrued store closing and relocation reserves	$	8,593		$	10,384
	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
	2-May-15
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 2,		May 3,
		2015		2014
	Net income	$	63,345	$	69,984
	Weighted average common shares outstanding - basic	117,044		121,138
	Dilutive effect of stock-based awards	1,862		2,222
	Weighted average common shares outstanding - diluted	118,906		123,360
	Earnings per common share - basic	$	0.54	$	0.58
	Earnings per common share - diluted	$	0.53	$	0.57
	Anti-dilutive stock-based awards excluded from diluted calculation	884		973

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	2-May-15
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 2, 2015 and January 31, 2015 are set forth in the table below (in thousands):
	Description		Level 1		Level 2		Level 3
	As of May 2, 2015
	Assets:
	Deferred compensation plan assets held in trust (1)		$	57,270	$	—	$	—
	Total assets		$	57,270	$	—	$	—
	As of January 31, 2015
	Assets:
	Deferred compensation plan assets held in trust (1)		$	52,193	$	—	$	—
	Total assets		$	52,193	$	—	$	—
	(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, revolving credit borrowings and certain other liabilities approximated book value due to the short-term nature of these instruments at both May 2, 2015 and January 31, 2015.
	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 2, 2015 or the fiscal year ended January 31, 2015.

Subsequent_Event

Subsequent Event	3 Months Ended
	2-May-15
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event
	On May 14, 2015, our Board of Directors declared a quarterly cash dividend in the amount of $0.1375 per share of common stock and Class B common stock payable on June 30, 2015 to stockholders of record as of the close of business on June 12, 2015.

Store_Closings_Tables

Store Closings (Tables)	3 Months Ended
	2-May-15
Store Closings [Abstract]
Schedule of the entity's accrued store closing and relocation reserves	The following table summarizes the activity in fiscal 2015 and 2014 (in thousands):
		13 Weeks Ended
		May 2,			May 3,
		2015			2014
	Accrued store closing and relocation reserves, beginning of period	$	12,785		$	17,102
	Expense charged to earnings	1,021			397
	Cash payments	(1,141		)	(1,183		)
	Interest accretion and other changes in assumptions	87			13
	Accrued store closing and relocation reserves, end of period	12,752			16,329
	Less: current portion of accrued store closing and relocation reserves	(4,159		)	(5,945		)
	Long-term portion of accrued store closing and relocation reserves	$	8,593		$	10,384

Earnings_Per_Common_Share_Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	2-May-15
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 2,		May 3,
		2015		2014
	Net income	$	63,345	$	69,984
	Weighted average common shares outstanding - basic	117,044		121,138
	Dilutive effect of stock-based awards	1,862		2,222
	Weighted average common shares outstanding - diluted	118,906		123,360
	Earnings per common share - basic	$	0.54	$	0.58
	Earnings per common share - diluted	$	0.53	$	0.57
	Anti-dilutive stock-based awards excluded from diluted calculation	884		973

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	2-May-15
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 2, 2015 and January 31, 2015 are set forth in the table below (in thousands):
	Description		Level 1		Level 2		Level 3
	As of May 2, 2015
	Assets:
	Deferred compensation plan assets held in trust (1)		$	57,270	$	—	$	—
	Total assets		$	57,270	$	—	$	—
	As of January 31, 2015
	Assets:
	Deferred compensation plan assets held in trust (1)		$	52,193	$	—	$	—
	Total assets		$	52,193	$	—	$	—
	(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	2-May-15	3-May-14
Store Closings
Accrued store closing and relocation reserves, beginning of period	$12,785	$17,102
Expense charged to earnings	1,021	397
Cash payments	-1,141	-1,183
Interest accretion and other changes in assumptions	87	13
Accrued store closing and relocation reserves, end of period	12,752	16,329
Less: current portion of accrued store closing and relocation reserves	-4,159	-5,945
Long-term portion of accrued store closing and relocation reserves	$8,593	$10,384

Earnings_Per_Common_Share_Deta

Earnings Per Common Share (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	2-May-15	3-May-14
Earnings Per Share [Abstract]
Net income	$63,345	$69,984
Weighted average common shares outstanding - basic	117,044	121,138
Dilutive effect of stock-based awards (in shares)	1,862	2,222
Weighted average common shares outstanding - diluted	118,906	123,360
Earnings per common share - basic (in dollars per share)	$0.54	$0.58
Earnings per common share - diluted (in dollars per share)	$0.53	$0.57
Anti-dilutive stock-based awards excluded from diluted calculation (in shares)	884	973

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	2-May-15		Jan. 31, 2015
In Thousands, unless otherwise specified
Level 1
Fair Value Measurements
Deferred compensation plan assets held in trust	$57,270	[1]	$52,193	[1]
Total assets	57,270		52,193
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
	14-May-15
Subsequent Event
Declaration date	14-May-15
Payment date	30-Jun-15
Record date	12-Jun-15
Common Stock
Subsequent Event
Dividend amount (in dollars per share)	0.1375
Class B Common Stock
Subsequent Event
Dividend amount (in dollars per share)	0.1375