DICK'S SPORTING GOODS, INC.DKS

DICK'S SPORTING GOODS, INC. Leases Disclosure

10-KFiled Mar 27, 20262 min read
The Company leases substantially all of its stores, administrative offices for the Foot Locker segment, nine of its distribution centers including three for the DICK’S segment and six for the Foot Locker segment, and certain equipment under non-cancellable operating leases that expire at various dates through 2043. The Company’s DICK’S stores generally have initial lease terms of 10 to 15 years and contain multiple five-year renewal options and rent escalation provisions. The Company’s acquired Foot Locker stores typically have initial lease terms that range from 5 to 10 years, generally contain rent escalation provisions and some of these store leases contain renewal options with varying terms and conditions. These lease agreements provide primarily for the payment of minimum annual rentals, costs of utilities, property taxes, maintenance, common areas and insurance.
The components of lease cost for the following fiscal years presented below were as follows (in thousands):
202520242023
Operating lease cost$886,966 $636,744 $612,595 
Short-term lease cost53,931 26,186 31,234 
Variable lease cost234,805 131,832 125,043 
Sublease income(10,348)(11,842)(11,730)
Total lease cost$1,165,354 $782,920 $757,142 
Supplemental cash flow information related to operating leases for the following fiscal years are presented below (in thousands):
202520242023
Cash paid for amounts included in the measurement of operating lease liabilities$967,611 $708,988 $733,455 
Non-cash operating lease assets obtained in exchange for operating lease liabilities $1,247,318 $767,645 $697,499 

Supplemental balance sheet information related to operating leases were as follows:
January 31,
2026		February 1,
2025
Weighted average remaining lease term for operating leases7.71 years7.37 years
Weighted average discount rate for operating leases5.21 %5.51 %
Future maturities of operating lease liabilities were as follows as of January 31, 2026 (in thousands):
Fiscal Year
2026$1,256,381 
20271,173,619 
2028963,462 
2029787,586 
2030643,099 
Thereafter2,347,506 
Total future undiscounted lease payments7,171,653 
Less: imputed interest(1,330,309)
      Total reported lease liability$5,841,344 
The Company has entered into operating leases related to future store locations that have not yet commenced. As of January 31, 2026, the future minimum payments on these leases approximated $756.0 million.
The Company acts as sublessor on several operating leases. As of January 31, 2026, total future undiscounted minimum rentals under non-cancellable subleases approximated $35.0 million.

Historical Timeline

Fiscal YearFiled
2026Mar 27, 2026Showing above
2025Mar 27, 2025
2024Mar 28, 2024
2023Mar 23, 2023
2022Mar 23, 2022
2021Mar 24, 2021
2020Mar 20, 2020
2018Mar 30, 2018
2017Mar 24, 2017
2016Mar 25, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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