Dell Computer Corporation
Financial Accounting – 214-02 Mr. Tom Ga
e
Financial Reporting Group Project Fe
uary 27, 2020
Financial Accounting – 214-55 Mr. Tom Ga
e
Financial Analysis Project May 22, 2020
Dick’s Sporting Goods, Inc.
Dick’s Sporting Goods fiscal year ended on Fe
uary 1, XXXXXXXXXXThe information needed to complete this project can be found in the Dick’s Sporting Goods Forms 10-K, copies of which are contained in the Financial Analysis Project folder on the Blackboard site.
Financial Analysis and Ratios
For Dick’s, prepare the following:
1. A horizontal analysis of the company’s income statement for the last three fiscal years
2. A vertical analysis of the company’s income statement for each of the last three fiscal years;
3. A horizontal analysis of the company’s balance sheet as of the end of the last two fiscal years;
4. A vertical analysis of the company’s balance sheet as of the end of each of the last two fiscal years, and
5. Calculate the ratios for the last 2 fiscal years on the separate template
The horizontal and vertical analyses and ratios should be prepared using the Excel templates contained in the Financial Reporting Project folder on the Blackboard site.
Financial Statement and Ratio Commentary
Based on the vertical and horizontal analyses of the financial statements, prepare the following:
1. One or two sentences commenting on any significant items from your review of Dick’s income statements.
2. One or two sentences commenting on any significant items from your review of Dick’s balance sheets.
Based on the calculation of the ratios above, prepare the following:
1. One or two sentences commenting on each of Dick’s ratios comparing the change over the 2 years and what you believe it indicates about Dick’s liquidity, solvency or profitability.
2. Ratios for Footlocker for fiscal year 2020 have been calculated and are included on the template. Compare the ratios for Dick’s for 2020 (which you calculated) and Footlocker’s for XXXXXXXXXXFor each ratio, comment on which company is more liquid, more solvent, and more profitable based on your comparison.
Questions
Using information in Dick’s Forms 10-K, provide answers to the following 5 questions:
1. What was the name of the independent auditing firm that performed the audit of Dick’s financial statements?
2. What is the Company’s revenue recognition policy?
3. Review the statement of cash flows. What amounts were provided by operating, investing and financing activities for the past three fiscal years? Were there any significant items noted during that period?
4. What inventory valuation method does the Company use?
5. What was Dick’s net balance of intangible assets at Fe
uary 1, 2020? What are the components that comprise the balance?
Project Submission Requirements – Due Tuesday, June 16th
A combined PDF file submitted via Blackboard including:
1. Cover Page including the signed attestation as to compliance with the School of Business Code of Ethical Conduct:
“In accordance with the School of Business Code of Ethical Behavior, I attest that I have not engaged in any acts of plagiarism in completing this assignment.”
2. Horizontal, vertical and ratio analyses detailed above
3. Financial statement and ratio commentary
4. Answers to the 5 questions
All projects submitted by 11:59 PM on Thursday, June 11th, will receive 5 bonus points added to the grade for the project.
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5
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended Fe
uary 1, 2020
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____ to ____
Commission File No XXXXXXXXXX
DICK'S SPORTING GOODS, INC.
(Exact name of registrant as specified in its charter)
345 Court Street, Coraopolis, PA 15108
(Address of Principal Executive Offices)
XXXXXXXXXX
(Address of principal executive offices, zip code, telephone number)
Securities registered pursuant to Section 12(b) of the Act:
Securities registered pursuant to Section 12(g) of the Act:
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405
of Regulation S-T (§ XXXXXXXXXXof this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit
such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or
an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging
growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with
any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑
Section 1: 10-K (10-K)
Delaware XXXXXXXXXX
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
Title of each class Trading Symbol(s) Name of Each Exchange on which Registered
Common Stock, $0.01 par value DKS The New York Stock Exchange
None
The aggregate market value of the voting common equity held by non-affiliates of the registrant was $2,104,495,467 as of August 2, 2019 based
upon the closing price of the registrant's common stock on the New York Stock Exchange reported for August 2, 2019.
As of March 16, 2020, DICK’S Sporting Goods, Inc. had 62,647,471 shares of common stock, par value $0.01 per share, and 24,291,123 shares of
Class B common stock, par value $0.01 per share, outstanding.
Documents Incorporated by Reference: Part III of this Annual Report on Form 10-K incorporates certain information from the registrant's definitive
proxy statement for its Annual Meeting of Stockholders to be held on June 10, 2020 (the “2020 Proxy Statement”).
TABLE OF CONTENTS
Table of Contents
PAGE
Part I 3
Item 1. Business 3
Item 1A. Risk Factors 9
Item 1B. Unresolved Staff Comments 17
Item 2. Properties 18
Item 3. Legal Proceedings 20
Item 4. Mine Safety Disclosures 20
Part II 21
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 21
Item 6. Selected Financial Data 23
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 26
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 35
Item 8. Financial Statements and Supplementary Data 36
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 36
Item 9A. Controls and Procedures 36
Item 9B. Other Information 38
Part III 38
Item 10. Directors, Executive Officers and Corporate Governance 38
Item 11. Executive Compensation 38
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 39
Item 13. Certain Relationships and Related Transactions, and Director Independence 39
Item 14. Principal Accountant Fees and Services 39
Part IV 40
Item 15. Exhibits and Financial Statement Schedules 40
Item 16. Form 10-K Summary 70
SIGNATURES 75
2
Forward-Looking Statements
We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this
Annual Report on Form 10-K or made by our management involve risks and uncertainties and are subject to change based on various important
factors, many of which may be beyond our control. Accordingly, our future performance and financial results may differ materially from those
expressed or implied in any such forward-looking statements. Investors should not place undue reliance on forward-looking statements as a
prediction of actual results. These statements can be identified as those that may predict, forecast, indicate or imply future results, performance or
advancements and by forward-looking words such as “believe”, “anticipate”, “expect”, “estimate”, “predict”, “intend”, “plan”, “project”,
“goal”, “will”, “will be”, “will continue”, “will result”, “could”, “may”, “might” or any variations of such words or other words with similar
meanings. Forward-looking statements address, among other things, the anticipated impact to consumer demand and our supply chain due to the
spread of the coronavirus (COVID-19); investments to enhance our store experience, to improve our eCommerce fulfillment capabilities, and to
implement technology solutions that improve the athlete experience and our teammates’ productivity; the continued improvements to the
functionality and performance of our own eCommerce platform, including faster and more reliable delivery, faster and more convenient checkout,
improved page responsiveness, new content development, and localized website experiences; plans to invest in the growth and marketing of our
private
and business; plans to eliminate non-essential expenses to fund strategic investments; plans to reduce our store growth rate and leverage
our real estate portfolio to capitalize on future opportunities in the near and intermediate term as our existing leases come up for renewal; plans to
emove hunt merchandise from approximately 440 additional DICK’S Sporting Goods stores and replace with merchandise that is more relevant to
the local market; the potential impact of the continuation of the promotional environment in retail,
oadened distribution channels of key vendors,
and weak customer demand for firearms and other hunting merchandise across the industry; attracting and retaining knowledgeable and skilled
teammates; projections of our future profitability; the effect of new or changes in existing tariffs; capital expenditures; anticipated store