Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 30, 2017 | Feb. 16, 2018 | Jul. 14, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | Advance Auto Parts Inc | ||
Entity Central Index Key | 1,158,449 | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 73,978,120 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 7,204,158,912 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 546,937 | $ 135,178 |
Receivables, net | 606,357 | 641,252 |
Inventories | 4,168,492 | 4,325,868 |
Other current assets | 105,106 | 70,466 |
Total current assets | 5,426,892 | 5,172,764 |
Property and equipment, net of accumulated depreciation of $1,783,383 and $1,660,648 | 1,394,138 | 1,446,340 |
Goodwill | 994,293 | 990,877 |
Intangible assets, net | 597,674 | 640,903 |
Other assets, net | 69,304 | 64,149 |
Assets, Total | 8,482,301 | 8,315,033 |
Current liabilities: | ||
Accounts payable | 2,894,582 | 3,086,177 |
Accrued expenses | 533,548 | 554,397 |
Other current liabilities | 51,967 | 35,472 |
Total current liabilities | 3,480,097 | 3,676,046 |
Long-term debt | 1,044,327 | 1,042,949 |
Deferred income taxes | 303,620 | 454,282 |
Other long-term liabilities | 239,061 | 225,564 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Preferred stock, nonvoting, $0.0001 par value, 10,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, voting, $0.0001 par value, 200,000 shares authorized; 75,569 shares issued and 73,936 outstanding at December 30, 2017 and 75,326 shares issued and 73,749 outstanding at December 31, 2016 | 8 | 8 |
Additional paid-in capital | 664,646 | 631,052 |
Treasury stock, at cost, 1,633 shares and 1,577 shares | (144,600) | (138,102) |
Accumulated other comprehensive loss | (24,954) | (39,701) |
Retained earnings | 2,920,096 | 2,462,935 |
Total stockholders' equity | 3,415,196 | 2,916,192 |
Liabilities and Stockholders' Equity, Total | $ 8,482,301 | $ 8,315,033 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Accumulated Depreciation, Property and Equipment | $ 1,783,383 | $ 1,660,648 |
Preferred stock, non-voting, par value | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 10,000 | 10,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, voting, par value | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 200,000 | 200,000 |
Common Stock, Shares, Issued | 75,569 | 75,326 |
Common Stock, Shares, Outstanding | 73,936 | 73,749 |
Treasury Stock, Shares | 1,633 | 1,577 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 30, 2017 | Oct. 07, 2017 | Jul. 15, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 22, 2017 | Apr. 23, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Net sales | $ 2,036,986 | $ 2,182,233 | $ 2,263,727 | $ 2,082,891 | $ 2,248,855 | $ 2,256,155 | $ 2,890,838 | $ 2,979,778 | $ 9,373,784 | $ 9,567,679 | $ 9,737,018 |
Cost of sales, including purchasing and warehousing costs | 5,288,735 | 5,311,764 | 5,314,246 | ||||||||
Gross profit | 873,569 | 947,708 | 993,088 | 907,564 | 988,205 | 1,010,257 | 1,270,684 | 1,349,889 | 4,085,049 | 4,255,915 | 4,422,772 |
Selling, general and administrative expenses | 3,514,837 | 3,468,317 | 3,596,992 | ||||||||
Operating income | 570,212 | 787,598 | 825,780 | ||||||||
Other, net: | |||||||||||
Interest expense | (58,801) | (59,910) | (65,408) | ||||||||
Other income (expense), net | 8,848 | 11,147 | (7,484) | ||||||||
Total other, net | (49,953) | (48,763) | (72,892) | ||||||||
Income before provision for income taxes | 520,259 | 738,835 | 752,888 | ||||||||
Provision for income taxes | 44,754 | 279,213 | 279,490 | ||||||||
Net income | $ 184,500 | $ 95,996 | $ 87,049 | $ 62,365 | $ 113,844 | $ 124,600 | $ 107,960 | $ 158,813 | $ 475,505 | $ 459,622 | $ 473,398 |
Basic earnings per common share | $ 2.50 | $ 1.30 | $ 1.18 | $ 0.84 | $ 1.54 | $ 1.69 | $ 1.46 | $ 2.16 | $ 6.44 | $ 6.22 | $ 6.45 |
Weighted average common shares outstanding | 73,846 | 73,562 | 73,190 | ||||||||
Diluted earnings per common share | $ 2.49 | $ 1.30 | $ 1.17 | $ 0.84 | $ 1.53 | $ 1.68 | $ 1.46 | $ 2.14 | $ 6.42 | $ 6.20 | $ 6.40 |
Weighted average common shares outstanding - assuming dilution | 74,110 | 73,856 | 73,733 | ||||||||
Dividends declared per common share | $ 0.24 | $ 0.24 | $ 0.24 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 30, 2017 | Oct. 07, 2017 | Jul. 15, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 22, 2017 | Apr. 23, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Net income | $ 184,500 | $ 95,996 | $ 87,049 | $ 62,365 | $ 113,844 | $ 124,600 | $ 107,960 | $ 158,813 | $ 475,505 | $ 459,622 | $ 473,398 |
Other comprehensive income (loss): | |||||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax of $126, $346 and $289 | (194) | (534) | (445) | ||||||||
Currency translation adjustments | 14,941 | 4,892 | (31,277) | ||||||||
Total other comprehensive income (loss) | 14,747 | 4,358 | (31,722) | ||||||||
Comprehensive income | $ 490,252 | $ 463,980 | $ 441,676 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Changes in net unrecognized other postretirement benefit costs, tax | $ 126 | $ 346 | $ 289 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock, at cost | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at Jan. 03, 2015 | $ 2,002,912 | $ 7 | $ 562,945 | $ (113,044) | $ (12,337) | $ 1,565,341 |
Balance (in shares) at Jan. 03, 2015 | 73,074 | |||||
Net income | 473,398 | 473,398 | ||||
Total other comprehensive income (loss) | (31,722) | (31,722) | ||||
Issuance of shares upon the exercise of stock options and stock appreciation rights | 0 | $ 0 | 0 | |||
Issuance of shares upon the exercise of stock options and stock appreciation rights (in shares) | 138 | |||||
Tax withholdings related to the exercise of stock appreciation rights | (13,112) | (13,112) | ||||
Tax benefit from share-based compensation, net | 12,989 | 12,989 | ||||
Restricted stock and restricted stock units vested | 0 | |||||
Restricted stock and restricted stock units vested (in shares) | 109 | |||||
Share-based compensation | 35,336 | 35,336 | ||||
Stock issued under employee stock purchase plan | 5,139 | 5,139 | ||||
Stock issued under employee stock purchase plan (in shares) | 35 | |||||
Repurchase of common stock | (6,665) | (6,665) | ||||
Repurchase of common stock (in shares) | (42) | |||||
Cash dividends declared ($.24 per common share) | (17,662) | (17,662) | ||||
Other | 35 | 35 | ||||
Balance at Jan. 02, 2016 | 2,460,648 | $ 7 | 603,332 | (119,709) | (44,059) | 2,021,077 |
Balance (in shares) at Jan. 02, 2016 | 73,314 | |||||
Net income | 459,622 | 459,622 | ||||
Total other comprehensive income (loss) | 4,358 | 4,358 | ||||
Issuance of shares upon the exercise of stock options and stock appreciation rights | 1 | $ 1 | 0 | |||
Issuance of shares upon the exercise of stock options and stock appreciation rights (in shares) | 149 | |||||
Tax withholdings related to the exercise of stock appreciation rights | (19,558) | (19,558) | ||||
Tax benefit from share-based compensation, net | 22,325 | 22,325 | ||||
Restricted stock and restricted stock units vested | 0 | |||||
Restricted stock and restricted stock units vested (in shares) | 372 | |||||
Share-based compensation | 20,422 | 20,422 | ||||
Stock issued under employee stock purchase plan | 4,369 | 4,369 | ||||
Stock issued under employee stock purchase plan (in shares) | 30 | |||||
Repurchase of common stock | (18,393) | (18,393) | ||||
Repurchase of common stock (in shares) | (116) | |||||
Cash dividends declared ($.24 per common share) | (17,764) | (17,764) | ||||
Other | 162 | 162 | ||||
Balance at Dec. 31, 2016 | $ 2,916,192 | $ 8 | 631,052 | (138,102) | (39,701) | 2,462,935 |
Balance (in shares) at Dec. 31, 2016 | 73,749 | 73,749 | ||||
Net income | $ 475,505 | 475,505 | ||||
Cumulative effect of accounting change from adoption of ASU 2016-09 | 292 | 782 | (490) | |||
Total other comprehensive income (loss) | 14,747 | 14,747 | ||||
Issuance of shares upon the exercise of stock options and stock appreciation rights | 0 | $ 0 | 0 | |||
Issuance of shares upon the exercise of stock options and stock appreciation rights (in shares) | 67 | |||||
Tax withholdings related to the exercise of stock appreciation rights | (6,531) | (6,531) | ||||
Restricted stock and restricted stock units vested | 0 | |||||
Restricted stock and restricted stock units vested (in shares) | 147 | |||||
Share-based compensation | 35,267 | 35,267 | ||||
Stock issued under employee stock purchase plan | 4,053 | 4,053 | ||||
Stock issued under employee stock purchase plan (in shares) | 29 | |||||
Repurchase of common stock | (6,498) | (6,498) | ||||
Repurchase of common stock (in shares) | (56) | |||||
Cash dividends declared ($.24 per common share) | (17,854) | (17,854) | ||||
Other | 23 | 23 | ||||
Balance at Dec. 30, 2017 | $ 3,415,196 | $ 8 | $ 664,646 | $ (144,600) | $ (24,954) | $ 2,920,096 |
Balance (in shares) at Dec. 30, 2017 | 73,936 | 73,936 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Statement of Stockholders' Equity (Parenthetical) [Abstract] | |||
Dividends declared per common share | $ 0.24 | $ 0.24 | $ 0.24 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 475,505 | $ 459,622 | $ 473,398 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 249,260 | 258,387 | 269,476 |
Share-based compensation | 35,267 | 20,452 | 36,929 |
Loss and impairment of property and equipment | 17,106 | 5,999 | 12,882 |
Other, net | 3,123 | (2,039) | 2,660 |
(Benefit) provision for deferred income taxes | (151,263) | 20,213 | (9,219) |
Net change in: | |||
Receivables, net | 36,047 | (41,642) | (21,476) |
Inventories | 167,548 | (144,603) | (244,096) |
Accounts payable | (197,168) | (119,325) | 119,164 |
Accrued expenses | (13,295) | 49,341 | 35,103 |
Other assets and liabilities, net | (21,325) | 16,898 | 27,823 |
Net cash provided by operating activities | 600,805 | 523,303 | 702,644 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (189,758) | (259,559) | (234,747) |
Proceeds from sales of property and equipment | 11,099 | 2,212 | 270 |
Other, net | 20 | (4,697) | (18,889) |
Net cash used in investing activities | (178,639) | (262,044) | (253,366) |
Cash flows from financing activities: | |||
Increase (decrease) in bank overdrafts | 14,004 | (5,573) | (2,922) |
Borrowings under credit facilities | 534,400 | 799,600 | 618,300 |
Payments on credit facilities | (534,400) | (959,600) | (1,041,700) |
Dividends paid | (17,854) | (17,738) | (17,649) |
Proceeds from the issuance of common stock | 4,076 | 4,532 | 5,174 |
Tax withholdings related to the exercise of stock appreciation rights | (6,531) | (19,558) | (13,112) |
Repurchase of common stock | (6,498) | (18,393) | (6,665) |
Other, net | (2,069) | (390) | (380) |
Net cash used in financing activities | (14,872) | (217,120) | (458,954) |
Effect of exchange rate changes on cash | 4,465 | 257 | (4,213) |
Net increase (decrease) in cash and cash equivalents | 411,759 | 44,396 | (13,889) |
Cash and cash equivalents, beginning of period | 135,178 | 90,782 | 104,671 |
Cash and cash equivalents, end of period | 546,937 | 135,178 | 90,782 |
Supplemental cash flow information: | |||
Interest paid | 53,509 | 55,457 | 62,371 |
Income tax payments | 192,116 | 225,327 | 254,408 |
Non-cash transactions: | |||
Accrued purchases of property and equipment | $ 14,335 | $ 21,176 | $ 44,038 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Nature of Operations and Basis of Presentation: Description of Business Advance Auto Parts, Inc. and subsidiaries is a leading automotive aftermarket parts provider in North America, serving both “do-it-for-me”, or Professional, and “do-it-yourself,” or DIY customers. The accompanying consolidated financial statements have been prepared by the Company and include the accounts of Advance Auto Parts, Inc. (“Advance”), its wholly owned subsidiary, Advance Stores Company, Incorporated (“Advance Stores”), and its subsidiaries (collectively referred to as “Advance,” “we,” “us,” “our” or “the Company”). As of December 30, 2017 , the Company’s operations are comprised of 5,054 stores and 129 distribution branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company’s stores operate primarily under the trade names “Advance Auto Parts,” “Carquest” and “Autopart International,” and our distribution branches operate under the “Worldpac” trade name. In addition, we served 1,218 independently owned Carquest branded stores (“independent stores”) across the same geographic locations served by the Company’s stores in addition to Mexico, the Bahamas, Turks and Caicos, the British Virgin Islands and the Pacific Islands. Accounting Period The Company’s fiscal year ends on the Saturday nearest the end of December. All references herein for the years 2017 , 2016 and 2015 represent the fiscal years ended December 30, 2017 , December 31, 2016 and January 2, 2016 , which were all 52 weeks. Basis of Presentation The consolidated financial statements include the accounts of Advance and its wholly owned subsidiaries prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in the prior years’ Consolidated Balance Sheets and Statements of Changes in Stockholders’ Equity have been reclassified to conform to the current year presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Significant Accounting Policies: Cash and Cash Equivalents Cash and cash equivalents consist of cash in banks and money market funds with original maturities of three months or less. Also included in cash equivalents are credit card and debit card receivables from banks, which generally settle in less than four business days. Inventory The Company’s inventory consists primarily of parts, batteries, accessories and other products used on vehicles that have reasonably long shelf lives and is stated at the lower of cost or market. The cost of the Company’s merchandise inventory is primarily determined using the last-in, first-out (“LIFO”) method. Under the LIFO method, the Company’s cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs relating to prices paid in 2017 and prior years. The Company regularly reviews inventory quantities on-hand, considers whether it may have excess inventory based on the Company’s current approach for managing slower moving inventory and adjusts the carrying value as necessary. Vendor Incentives The Company receives incentives in the form of reductions to amounts owed to and/or payments from vendors related to volume rebates and other promotional considerations. Many of these incentives are under long-term agreements in excess of one year, while others are negotiated on an annual basis or shorter. Advertising allowances provided as a reimbursement of specific, incremental and identifiable costs incurred to promote a vendor’s products are included as an offset to selling, general and administrative expenses (“SG&A”) when the cost is incurred. Volume rebates and allowances that do not meet the requirements for offsetting in SG&A are recorded as a reduction to inventory as they are earned based on inventory purchases. Total deferred vendor incentives included as a reduction of Inventory were $179.2 million and $211.1 million as of December 30, 2017 and December 31, 2016 . The Company recognizes other promotional incentives earned under long-term agreements not specifically related to volume of purchases as a reduction to cost of sales. However, these incentives are not deferred as a reduction of inventory and are recognized based on the cumulative net purchases as a percentage of total estimated net purchases over the life of the agreement. Short-term incentives with terms less than one year are generally recognized as a reduction to cost of sales over the duration of the agreements. Amounts received or receivable from vendors that are not yet earned are reflected as deferred revenue in the accompanying consolidated balance sheets. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged directly to expense when incurred; major improvements are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the account balances, with any gain or loss reflected in the consolidated statements of operations. Depreciation of land improvements, buildings, furniture, fixtures and equipment, and vehicles is provided over the estimated useful lives of the respective assets using the straight-line method. Depreciation of building and leasehold improvements is provided over the shorter of the original useful lives of the respective assets or the term of the lease using the straight-line method. Goodwill and Indefinite-Lived Intangible Assets The Company performs its evaluation for the impairment of goodwill and indefinite-lived intangible assets for its reporting units annually as of the first day of the fourth quarter, or when indications of potential impairment exist. These indicators would include a significant change in operating performance, the business climate, legal factors, competition, or a planned sale or disposition of a significant portion of the business, among other factors. The Company assesses qualitative factors such as current company performance and overall economic factors to determine if it is more-likely-than-not that the goodwill might be impaired and whether it is necessary to perform the step one quantitative goodwill impairment test. In the quantitative goodwill test, the Company compares the carrying value of a reporting unit to its fair value. If the carrying value of the reporting unit exceeds the estimated fair value, a second step is performed, which compares the implied fair value of goodwill to the carrying value, to determine the amount of impairment. The Company’s indefinite-lived intangible assets are tested for impairment at the asset group level. Indefinite-lived intangibles are evaluated by comparing the carrying amount of the asset to the future discounted cash flows that the asset is expected to generate. If the fair value based on the future discounted cash flows exceeds the carrying value, we conclude that no intangible asset impairment has occurred. If the carrying value of the indefinite-lived intangible asset exceeds the fair value, we recognize an impairment loss. Effective in the third quarter of 2017, the Company realigned its three geographic divisions, which included the operations of the stores operating under the Advance Auto Parts, Carquest and Autopart International trade names, into two U.S. geographic divisions. As a result of this realignment and change in the operating structure of its Carquest Independent and Carquest Canada businesses, the Company has increased its number of operating segments from four to five, and defined them as “Northern Division,” “Southern Division,” “Carquest Canada,” “Independents” and “Worldpac.” As each operating segment represents a reporting unit, goodwill was reassigned to the affected reporting units using a relative fair value approach. Valuation of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets, including finite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable and exceeds its fair value. When such an event occurs, the Company estimates the undiscounted future cash flows expected to result from the use of the long-lived asset or asset group and its eventual disposition. These impairment evaluations involve estimates of asset useful lives and future cash flows. If the undiscounted expected future cash flows are less than the carrying amount of the asset and the carrying amount of the asset exceeds its fair value, an impairment loss is recognized. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on quoted market prices or other valuation techniques (e.g., discounted cash flow analysis). Self-Insurance The Company is self-insured for general and automobile liability, workers’ compensation and health care claims of its employees, or Team Members, while maintaining stop-loss coverage with third-party insurers to limit its total liability exposure. Expenses associated with these liabilities are calculated for (i) claims filed, (ii) claims incurred but not yet reported and (iii) projected future claims using actuarial methods followed in the insurance industry as well as the Company’s historical claims experience. The Company includes the current and long-term portions of its self-insurance reserves in Accrued expenses and Other long-term liabilities. Warranty Liabilities The warranty obligation on the majority of merchandise sold by the Company with a manufacturer’s warranty is the responsibility of the Company’s vendors. However, the Company has an obligation to provide customers replacement of certain merchandise at no cost or merchandise at a prorated cost if under a warranty and not covered by the manufacturer. Merchandise sold with warranty coverage by the Company primarily includes batteries, but may also include other parts such as brakes and shocks. The Company estimates its warranty obligation at the time of sale based on the historical return experience, sales level and cost of the respective product sold. To the extent vendors provide upfront allowances in lieu of accepting the obligation for warranty claims and the allowance is in excess of the related warranty expense, the excess is recorded as a reduction to cost of sales. Leases The Company leases certain store locations, distribution centers, office spaces, equipment and vehicles. The total amount of minimum rent is expensed on a straight-line basis over the initial term of the lease unless external economic factors exist such that renewals are reasonably assured. In those instances, the renewal period would be included in the lease term for purposes of establishing an amortization period and determining if such lease qualified as a capital or operating lease. Differences between the calculated rent expense and cash payments are recorded as a liability within the Accrued expenses and Other long-term liabilities captions in the accompanying consolidated balance sheets, based on the terms of the lease. Most leases require the Company pay taxes, maintenance, insurance and certain other expenses applicable to the leased premises. Management expects that in the normal course of business leases that expire will be renewed or replaced by other leases. Fair Value Measurements A three-level valuation hierarchy, based upon observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. These two types of inputs create the following fair value hierarchy: Level 1 - Quoted prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose significant inputs are observable; and Level 3 - Instruments whose significant inputs are unobservable. Financial instruments are transferred in and/or out of Level 1, 2 or 3 at the beginning of the accounting period in which there is a change in the valuation inputs. Closed Facility Liabilities and Exit Activities The Company continually reviews the operating performance of its existing store locations and closes or relocates certain stores identified as underperforming. In addition, the Company is consolidating certain locations as part of its planned integration of General Parts International, Inc. (“GPI”). Expenses accrued pertaining to closed facility exit activities are included in the Company’s closed facility liabilities, within Accrued expenses and Other long-term liabilities in the accompanying consolidated balance sheets, and recognized in SG&A in the accompanying consolidated statements of operations at the time of facility closure. Closed facility liabilities include the present value of the remaining lease obligations and management’s estimate of future costs of insurance, property tax and common area maintenance expenses, reduced by the present value of estimated revenues from subleases and lease buyouts. Employees receiving severance benefits as the result of a store closing or other restructuring activity are required to render service until they are terminated in order to receive benefits. Severance benefits are recognized over the related service period. Other restructuring costs, including costs to relocate employees, are recognized in the period in which the liability is incurred. Share-Based Payments The Company provides share-based compensation to its eligible Team Members and Board of Directors. The Company is required to exercise judgment and make estimates when determining the (i) fair value of each award granted and (ii) projected number of awards expected to vest. The Company calculates the fair value of all share-based awards at the date of grant and uses the straight-line method to amortize this fair value as compensation cost over the requisite service period. Revenue Recognition The Company recognizes revenue at the time the sale is made, at which time the Company’s walk-in customers take immediate possession of the merchandise or same-day delivery is made to the Company’s Professional delivery customers, which include certain independently owned store locations. For e-commerce sales, revenue is recognized either at the time of pick-up at one of the Company’s store locations or at the time of shipment depending on the customer’s order designation. Sales are recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. The Company estimates the reduction to sales and cost of sales for returns based on current sales levels and the Company’s historical return experience. The following table summarizes financial information for each of the Company’s product groups. Year Ended December 30, 2017 December 31, 2016 January 2, 2016 Percentage of Sales, by Product Group Parts and Batteries 65 % 66 % 66 % Accessories and Chemicals 20 % 19 % 19 % Engine Maintenance 14 % 14 % 14 % Other 1 % 1 % 1 % Total 100 % 100 % 100 % Receivables, net consist primarily of receivables from Professional customers. The Company grants credit to certain Professional customers who meet the Company’s pre-established credit requirements. Accounts receivable is stated at net realizable value. The Company regularly reviews accounts receivable balances and maintains allowances for doubtful accounts for estimated losses whenever events or circumstances indicate the carrying value may not be recoverable. The Company considers the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. The Company controls credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures. Cost of Sales Cost of sales includes actual product cost, warranty costs, vendor incentives, cash discounts on payments to vendors, costs associated with operating our distribution network, including payroll and benefits costs, occupancy costs and depreciation, in-bound freight-related costs from our vendors and costs associated with moving merchandise inventories from our distribution centers to stores, branch locations and customers. Selling, General and Administrative Expenses SG&A includes payroll and benefits costs for store and corporate Team Members, occupancy costs of store and corporate facilities, depreciation and amortization related to store and corporate assets, share-based compensation expense, advertising, self-insurance, costs of consolidating, converting or closing facilities, including early termination of lease obligations, severance and impairment charges, professional services and costs associated with our Professional delivery program, including payroll and benefit costs, and transportation expenses associated with moving merchandise inventories from stores and branches to customer locations. Advertising Costs The Company expenses advertising costs as incurred. Advertising expense, net of qualifying vendor promotional funds, was $102.8 million , $97.0 million and $108.8 million in 2017 , 2016 and 2015 . Vendor promotional funds, which reduced advertising expense, amounted to $33.3 million and $29.3 million and $17.5 million in 2017 , 2016 and 2015 . Foreign Currency Translation The assets and liabilities of the Company’s foreign operations are translated into U.S. dollars at current exchange rates, and revenues, expenses and cash flows are translated at average exchange rates for the year. Resulting translation adjustments are reflected as a separate component in the Consolidated Statements of Comprehensive Income. Losses from foreign currency transactions, which are included in Other income, net, were $4.0 million during 2017 and $7.4 million during 2015 . Gains and losses from foreign currency transactions were not significant in 2016. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under the asset and liability method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and for income tax reporting purposes. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date. The Company recognizes tax benefits and/or tax liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts as the Company must determine the probability of various possible outcomes. The Company reevaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. The reevaluations are based on many factors, including but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes of limitations and new federal or state audit activity. Any change in either the Company’s recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. Earnings per Share Basic earnings per share of common stock has been computed based on the weighted-average number of common shares outstanding during the period, which is reduced by stock held in treasury and shares of nonvested restricted stock units. Diluted earnings per share is calculated by including the effect of dilutive securities. Diluted earnings per share of common stock reflects the weighted-average number of shares of common stock outstanding, outstanding deferred stock units and the impact of outstanding stock options and stock appreciation rights (collectively “share-based awards”). Share-based awards containing performance conditions are included in the dilution impact as those conditions are met. Segment Information Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by information about the Company’s five operating segments, for purposes of allocating resources and evaluating financial performance. For 2017 and 2016, the Company has one reportable segment as the five operating segments are aggregated due primarily to the economic and operational similarities of each operating segment as the stores and branches have similar characteristics, including the nature of the products and services, customer base and the methods used to distribute products and provide service to its customers. Recently Issued Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which required a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The ASU is effective for fiscal years, and for interim periods within those years, beginning after December 15, 2019, with early adoption permitted after January 1, 2017. The Company elected to early adopt ASU 2017-04 in 2017 and applied the new guidance in completion of its annual goodwill impairment test performed in the fourth quarter of 2017. In March 2016, the FASB issued ASU 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” aimed at simplifying certain aspects of accounting for share-based payment transactions. The areas for simplification include the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted ASU 2016-09 in the first quarter of 2017 and recorded a cumulative net increase in stockholders’ equity of $0.3 million related to the Company’s election to record forfeitures as they occur. In addition, the Company elected to retrospectively adopt the provision regarding the presentation of excess tax benefits in the statement of cash flows, which resulted in an increase in our net cash provided by operating activities and a decrease in our net cash provided by financing activities of $22.4 million and $13.0 million for 2016 and 2015. The provision requiring the inclusion of excess tax benefits (deficits) as a component of the Provision for income taxes in the consolidated results of operations is being applied prospectively. The Company recorded excess tax benefits of $2.3 million as a reduction in Provision for income taxes during 2017. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU is a comprehensive new leases standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. It will require lessees to recognize lease assets and lease liabilities for most leases, including those leases previously classified as operating leases under current GAAP. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The ASU is effective for annual periods beginning after December 15, 2018, including interim periods within those years; earlier adoption is permitted. The FASB issued an exposure draft to amend Topic 842 to provide entities with an additional transition method with which to adopt Topic 842. The proposed transition method would enable entities to apply the transition requirements in Topic 842 at the effective date of that Topic (rather than at the beginning of the earliest comparative period presented as currently required) with the effects of initially applying Topic 842 recognized as a cumulative-effect adjustment to retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with Topic 840, including the disclosure requirements of that Topic. Practical expedients are available for election as a package and if applied consistently to all leases. The Company has selected its leasing software solution and is in the process of identifying changes to its business processes, systems and controls to support adoption of the new standard in 2019. The Company is evaluating the impact that the new standard will have on the consolidated financial statements. While the Company is unable to quantify the impact at this time, it expects the adoption of the new standard to result in a material increase in the assets and liabilities in the consolidated financial statements. At this time, the Company does not expect adoption of ASU 2016-02 to have a material impact on its consolidated statements of operations as the majority of its leases will remain operating in nature. As such, the expense recognition will be similar to previously required straight-line expense treatment. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” as modified by subsequently issued ASUs 2015-14, 2016-08, 2016-10, 2016-12 and 2016-20 (collectively, “Topic 606”). Topic 606 superseded existing revenue recognition standards with a single model. The revenue recognition principle in Topic 606 is that an entity should recognize revenue to depict the transfer of 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. The Company plans to adopt Topic 606 in the first quarter of 2018 by applying the modified retrospective approach. Results for reporting periods beginning after December 30, 2017 will be presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. Generally the Company’s performance obligations are satisfied the same day contracts with customers are initiated. As such, the adoption of the new standard will not have a material impact on the Company’s consolidated financial condition, results of operations, cash flows, business process, controls or systems. Additionally, we expect the impact of the adoption of the new standard to be immaterial to our net income on an ongoing basis. |
Inventories
Inventories | 12 Months Ended |
Dec. 30, 2017 | |
Inventory, Net [Abstract] | |
Inventories, net | Inventories: The Company used the LIFO method of accounting for approximately 88% and 89% of inventories at December 30, 2017 and December 31, 2016 . As a result of changes in the LIFO reserve, the Company recorded an increase to cost of sales of $2.7 million in 2017 and a reduction to cost of sales of $40.7 million and $42.3 million in 2016 and 2015 . Purchasing and warehousing costs included in inventory as of December 30, 2017 and December 31, 2016 , were $429.8 million and $395.2 million . Inventory balances were as follows: (in thousands) December 30, December 31, Inventories at FIFO $ 3,965,370 $ 4,120,030 Adjustments to state inventories at LIFO 203,122 205,838 Inventories at LIFO $ 4,168,492 $ 4,325,868 |
Exit Activities and Other Initi
Exit Activities and Other Initiatives | 12 Months Ended |
Dec. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Exit Activities and Impairment | Exit Activities and Other Initiatives: Integration of Carquest stores The Company is in the process of a multi-year integration, which includes the consolidation and conversion of its Carquest stores acquired with GPI in 2014. As of December 30, 2017 , 346 Carquest stores acquired with GPI had been consolidated into existing Advance Auto Parts stores and 422 stores had been converted to the Advance Auto Parts format. During 2017 , a total of 13 Carquest stores were consolidated and 140 stores were converted. During 2016 , a total of 156 Carquest stores were consolidated and 123 stores were converted. We expect to consolidate or convert the remaining U.S. Carquest stores over the next few years. As of December 30, 2017 , the Company had 437 stores, including 138 stores in Canada, still operating under the Carquest name. The Company incurred $1.0 million, $18.9 million and $7.3 million of exit costs related to the consolidations and conversions during 2017 , 2016 and 2015 , primarily related to closed store lease obligations. 2017 Field and Support Center Restructuring In June 2017, the Company restructured its field organization and streamlined its operating structure. The restructuring activity was substantially complete as of December 30, 2017 and resulted in the recognition of $7.9 million of severance expense. 2017 Store and Supply Chain Rationalization During the fourth quarter 2017, the Board of Directors approved a plan to close certain underperforming stores and begin to rationalize the Company's supply chain costs as part of the Company’s strategy to transform the enterprise. The Company expects these actions will result in estimated charges of up to $70 million in 2018. These charges consist of $35 million related to the early termination of lease obligations, $15 million of inventory and supply chain asset impairment charges, $15 million of other facility closure costs, and $5 million of severance. At December 30, 2017 , no stores or distribution centers had been closed in connection with this activity; however, the Company recorded an impairment charge of $6.9 million as part of this plan to close certain underperforming stores. Total Exit Liabilities The Company’s total exit liabilities include liabilities recorded in connection with the consolidation of Carquest stores and restructuring activities described above, along with liabilities associated with facility closures that have occurred as part of our normal market evaluation process. Cash payments on the closed facility lease obligations are expected to be made through 2028 and the remaining severance payments are expected to be made in 2018. Of the Company’s total exit liabilities as of December 30, 2017 , $19.8 million is included in Other long-term liabilities and the remainder is included in Accrued expenses in the accompanying condensed consolidated balance sheets. A summary of the Company’s exit liabilities are presented in the following table: (in thousands) Closed Facility Lease Obligations Severance Total Balance, January 2, 2016 $ 42,490 $ 6,255 $ 48,745 Reserves established 23,252 988 24,240 Change in estimates (3,073 ) (410 ) (3,483 ) Cash payments (18,404 ) (5,874 ) (24,278 ) Balance, December 31, 2016 44,265 959 45,224 Reserves established 7,940 7,927 15,867 Change in estimates (1,116 ) (699 ) (1,815 ) Cash payments (19,519 ) (6,542 ) (26,061 ) Balance, December 30, 2017 $ 31,570 $ 1,645 $ 33,215 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: Goodwill At December 30, 2017 and December 31, 2016 , the carrying amount of goodwill was $994.3 million and $990.9 million . The change in goodwill during 2017 and 2016 was $3.4 million and $1.4 million related to foreign currency translation. Intangible Assets Other Than Goodwill Amortization expense was $47.4 million, $48.0 million and $53.1 million for 2017 , 2016 and 2015 . A summary of the composition of the gross carrying amounts and accumulated amortization of acquired intangible assets are presented in the following table: December 30, 2017 December 31, 2016 (in thousands) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Customer relationships $ 351,203 $ (116,909 ) $ 234,294 $ 349,615 $ (89,420 ) $ 260,195 Favorable leases 32,512 (14,959 ) 17,553 48,693 (24,864 ) 23,829 Non-compete and other 54,929 (46,389 ) 8,540 54,130 (32,708 ) 21,422 438,644 (178,257 ) 260,387 452,438 (146,992 ) 305,446 Indefinite-lived intangible assets: Brands, trademark and tradenames 337,287 — 337,287 335,457 — 335,457 Total intangible assets $ 775,931 $ (178,257 ) $ 597,674 $ 787,895 $ (146,992 ) $ 640,903 During 2017 , the Company retired $16.1 million of fully amortized intangible assets, impacting both the gross carrying amount and accumulated amortization by this amount. Future Amortization Expense The table below shows expected amortization expense for the next five years and thereafter for acquired intangible assets recorded as of December 30, 2017 : Year Amount (in thousands) 2018 $ 42,795 2019 32,358 2020 31,707 2021 31,066 2022 30,947 Thereafter 91,514 $ 260,387 |
Receivables, net
Receivables, net | 12 Months Ended |
Dec. 30, 2017 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net: Receivables, net consist of the following: (in thousands) December 30, December 31, Trade $ 389,963 $ 407,301 Vendor 220,510 239,770 Other 14,103 23,345 Total receivables 624,576 670,416 Less: Allowance for doubtful accounts (18,219 ) (29,164 ) Receivables, net $ 606,357 $ 641,252 |
Long-term Debt and Fair Value o
Long-term Debt and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt and Fair Value of Financial Instruments: Long-term debt consists of the following: (in thousands) December 30, 2017 December 31, 2016 5.75% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $1,403 and $1,994 at December 30, 2017 and December 31, 2016) due May 1, 2020 $ 298,597 $ 298,006 4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $1,108 and $1,384 at December 30, 2017 and December 31, 2016) due January 15, 2022 298,892 298,616 4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $3,162 and $3,673 at December 30, 2017 and December 31, 2016) due December 1, 2023 446,838 446,327 Other 350 306 1,044,677 1,043,255 Less: Current portion of long-term debt (350 ) (306 ) Long-term debt, excluding current portion $ 1,044,327 $ 1,042,949 Fair value of long-term debt $ 1,109,000 $ 1,118,000 Fair Value of Financial Assets and Liabilities The fair value of the Company’s senior unsecured notes was determined using Level 2 inputs based on quoted market prices. The Company believes the carrying value of its other long-term debt approximates fair value. The carrying amounts of the Company’s cash and cash equivalents, receivables, accounts payable and accrued expenses approximate their fair values due to the relatively short-term nature of these instruments. Bank Debt On January 31, 2017, the Company entered into a new credit agreement that provides a $1.0 billion unsecured revolving credit facility (the “2017 Credit Agreement”) with Advance Stores, as Borrower, the lenders party thereto, and Bank of America, N.A., as the administrative agent and replaces a prior credit agreement entered into in 2013. The 2017 Credit Agreement provides for the issuance of letters of credit with a sublimit of $200.0 million. The Company may request that the total revolving commitment be increased by an amount not exceeding $250.0 million during the term of the 2017 Credit Agreement. Voluntary prepayments and voluntary reductions of the revolving loan balance, if any, are permitted in whole or in part, at the Company’s option, in minimum principal amounts as specified in the 2017 Credit Agreement. The 2017 Credit Agreement terminates in January 2022; however, the Company may request one or two one-year extensions of the termination date prior to the first or second anniversary of the closing date. As of December 30, 2017 , the Company had no outstanding borrowings under the revolver and borrowing availability was $517.6 million based on the Company’s leverage ratio. As of December 30, 2017 , the Company had letters of credit outstanding of $111.7 million, which generally have a term of one year or less and primarily serve as collateral for the Company’s self-insurance policies. Interest on any borrowings on the revolver will be based, at the Company’s option, on an adjusted LIBOR, plus a margin, or an alternate base rate, plus a margin. After an initial interest period, the Company may elect to convert a particular borrowing to a different type. The initial margins per annum for the revolving loan are 1.10% for the adjusted LIBOR and 0.10% for alternate base rate borrowings. A facility fee of 0.15% per annum is charged on the total revolving facility commitment, payable quarterly in arrears. Under the terms of the 2017 Credit Agreement, the interest rate spread and facility fee are based on the Company’s credit rating. The interest rate spread ranges from 0.91% to 1.50% for adjusted LIBOR borrowings and 0.00% to 0.50% for alternate base rate borrowings. The 2017 Credit Agreement contains customary covenants restricting the ability of: (a) Advance Stores and its subsidiaries to, among other things, (i) create, incur or assume additional debt (only with respect to subsidiaries of Advance Stores), (ii) incur liens, (iii) guarantee obligations, and (iv) change the nature of its business conducted by itself and its subsidiaries; (b) Advance, Advance Stores and their subsidiaries to, among other things (i) enter into certain hedging arrangements, (ii) enter into restrictive agreements limiting their ability to incur liens on any of their property or assets, pay distributions, repay loans, or guarantee indebtedness of their subsidiaries; and (c) Advance, among other things, to change the holding company status of Advance. Advance Stores is required to comply with financial covenants with respect to a maximum leverage ratio and a minimum coverage ratio. The 2017 Credit Agreement also provides for customary events of default, including non-payment defaults, covenant defaults and cross-defaults of Advance Stores’ other material indebtedness. The Company was in compliance with its financial covenants with respect to the 2017 Credit Agreement as of December 30, 2017 . On January 31, 2018, the Company, entered into Amendment No. 1 to the Credit Agreement dated as of January 31, 2017 (the “Amendment”), among Advance Stores, as Borrower, the lenders party thereto, and Bank of America, N.A., Administrative Agent. The Amendment: (i) provided for LIBOR replacement rates in the event that LIBOR is unavailable in the future; (ii) modified the definitions of the financial covenants (and the testing level relating thereto) with respect to a maximum leverage ratio and a minimum coverage ratio that the Company is required to comply with; and (iii) extended the termination date of the 2017 Credit Agreement from January 31, 2022 until January 31, 2023. The Company has the option to make one additional written request of the lenders to extend the termination date then in effect for one additional year. Senior Unsecured Notes The Company’s 4.50% senior unsecured notes were issued in December 2013 at 99.69% of the principal amount of $450.0 million and are due December 1, 2023 (the “2023 Notes”). The 2023 Notes bear interest at a rate of 4.50% per year payable semi-annually in arrears on June 1 and December 1 of each year. The Company’s 4.50% senior unsecured notes were issued in January 2012 at 99.968% of the principal amount of $300.0 million and are due January 15, 2022 (the “2022 Notes”). The 2022 Notes bear interest at a rate of 4.50% per year payable semi-annually in arrears on January 15 and July 15 of each year. The Company’s 5.75% senior unsecured notes were issued in April 2010 at 99.587% of the principal amount of $300.0 million and are due May 1, 2020 (the “2020 Notes” or collectively with the 2023 Notes and the 2022 Notes, “the Notes”). The 2020 Notes bear interest at a rate of 5.75% per year payable semi-annually in arrears on May 1 and November 1 of each year. Advance served as the issuer of the Notes with certain of Advance’s domestic subsidiaries currently serving as subsidiary guarantors. The terms of the Notes are governed by an indenture (as amended, supplemented, waived or otherwise modified, the “Indenture”) among the Company, the subsidiary guarantors from time to time party thereto and Wells Fargo Bank, National Association, as Trustee. The Company may redeem some or all of the Notes at any time or from time to time, at the redemption price described in the Indenture. In addition, in the event of a Change of Control Triggering Event (as defined in the Indenture for the Notes), the Company will be required to offer to repurchase the Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase date. The Notes are currently fully and unconditionally guaranteed, jointly and severally, on an unsubordinated and unsecured basis by each of the subsidiary guarantors. The Company will be permitted to release guarantees without the consent of holders of the Notes under the circumstances described in the Indenture: (i) upon the release of the guarantee of the Company’s other debt that resulted in the affected subsidiary becoming a guarantor of this debt; (ii) upon the sale or other disposition of all or substantially all of the stock or assets of the subsidiary guarantor; or (iii) upon the Company’s exercise of its legal or covenant defeasance option. The Indenture contains customary provisions for events of default including for: (i) failure to pay principal or interest when due and payable; (ii) failure to comply with covenants or agreements in the Indenture or the Notes and failure to cure or obtain a waiver of such default upon notice; (iii) a default under any debt for money borrowed by the Company or any of its subsidiaries that results in acceleration of the maturity of such debt, or failure to pay any such debt within any applicable grace period after final stated maturity, in an aggregate amount greater than $25.0 million without such debt having been discharged or acceleration having been rescinded or annulled within 10 days after receipt by the Company of notice of the default by the Trustee or holders of not less than 25% in aggregate principal amount of the Notes then outstanding; and (iv) events of bankruptcy, insolvency or reorganization affecting the Company and certain of its subsidiaries. In the case of an event of default, the principal amount of the Notes plus accrued and unpaid interest may be accelerated. The Indenture also contains covenants limiting the ability of the Company and its subsidiaries to incur debt secured by liens and to enter into sale and lease-back transactions. Future Payments As of December 30, 2017 , the aggregate future annual maturities of long-term debt instruments are as follows: Year Amount (in thousands) 2018 $ 350 2019 — 2020 300,000 2021 — 2022 300,000 Thereafter 450,000 $ 1,050,350 Debt Guarantees The Company is a guarantor of loans made by banks to various independently owned Carquest-branded stores that are customers of the Company totaling $24.8 million as of December 30, 2017 . These loans are collateralized by security agreements on merchandise inventory and other assets of the borrowers. The approximate value of the inventory collateralized by these agreements is $62.8 million as of December 30, 2017 . The Company believes that the likelihood of performance under these guarantees is remote. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment | Property and Equipment: Property and equipment consists of the following: (in thousands) December 30, December 31, Land and land improvements 0 - 10 years $ 451,261 $ 444,262 Buildings 30 - 40 years 478,235 471,740 Building and leasehold improvements 3 - 30 years 490,635 451,979 Furniture, fixtures and equipment 3 - 20 years 1,675,522 1,583,096 Vehicles 2 - 13 years 16,587 35,133 Construction in progress 65,281 120,778 3,177,521 3,106,988 Less - Accumulated depreciation (1,783,383 ) (1,660,648 ) Property and equipment, net $ 1,394,138 $ 1,446,340 Depreciation expense was $206.9 million , $216.0 million and $223.7 million for 2017 , 2016 and 2015 . The Company capitalized $11.2 million , $13.0 million and $13.5 million incurred for the development of internal use computer software during 2017 , 2016 and 2015 . These costs are included in the furniture, fixtures and equipment category above and are depreciated on the straight-line method over three to ten years . In 2017 , 2016 and 2015 , the Company recognized impairment losses of $13.3 million , $2.8 million and $11.0 million , on various store and corporate assets. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses: Accrued expenses consist of the following: (in thousands) December 30, December 31, Payroll and related benefits $ 92,106 $ 97,496 Taxes payable 112,930 121,860 Self-insurance reserves 65,463 58,743 Warranty reserves 49,024 47,243 Capital expenditures 14,335 21,176 Other 199,690 207,879 Total accrued expenses $ 533,548 $ 554,397 The following table presents changes in the Company’s warranty reserves: Year Ended (in thousands) December 30, December 31, January 2, Warranty reserves, beginning of period $ 47,243 $ 44,479 $ 47,972 Additions to warranty reserves 50,895 46,903 44,367 Reserves utilized (49,114 ) (44,139 ) (47,860 ) Warranty reserves, end of period $ 49,024 $ 47,243 $ 44,479 |
Stock Repurchases
Stock Repurchases | 12 Months Ended |
Dec. 30, 2017 | |
Stock Repurchases: [Abstract] | |
Stock Repurchases | Stock Repurchases: The Company’s stock repurchase program allows it to repurchase its common stock on the open market or in privately negotiated transactions from time to time. The Company’s $500 million stock repurchase program in place as of December 30, 2017 was authorized by its Board of Directors on May 14, 2012. During 2017 and 2016 , the Company repurchased no shares of its common stock under its stock repurchase program. The Company had $415.1 million remaining under its stock repurchase program as of December 30, 2017 . The Company repurchased 57 thousand and 116 thousand shares of its common stock at an aggregate cost of $6.5 million and $18.4 million, or an average price of $114.23 and $158.84 per share, in connection with the net settlement of shares issued as a result of the vesting of restricted stock units in 2017 and 2016. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share: The computation of basic and diluted earnings per share is as follows: Year Ended (in thousands, except per share data) December 30, December 31, January 2, Numerator Net income applicable to common shares $ 475,505 $ 459,622 $ 473,398 Denominator Basic weighted average common shares 73,846 73,562 73,190 Dilutive impact of share-based awards 264 294 543 Diluted weighted average common shares 74,110 73,856 73,733 Basic earnings per common share Net income applicable to common stockholders $ 6.44 $ 6.22 $ 6.45 Diluted earnings per common share Net income applicable to common stockholders $ 6.42 $ 6.20 $ 6.40 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: U.S. Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act amends the Internal Revenue Code by, among other things, permanently lowering the corporate tax rate to 21% from the existing maximum rate of 35% , implementing a territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. The Company is required to remeasure deferred income tax assets and liabilities in the reporting period of enactment. The remeasurement of the Company’s net deferred income tax liability resulted in a $155.1 million income tax benefit in 2017. The Company recorded an estimated charge of $11.3 million to income tax expense primarily for the nonrecurring repatriation tax on accumulated earnings of foreign subsidiaries and it is the Company’s intention to bring back the accumulated foreign earnings held as cash in the near term. Prospectively, any future foreign earnings will be utilized to grow and support the Company’s foreign operations and will be treated as being indefinitely reinvested outside the U.S. The estimated charge and the benefit from the remeasurement of the net deferred tax liability were recorded based on the Company's initial evaluation of the impact of the Act and are subject to change in 2018 as the Company continues to refine, analyze and update the underlying data, computations and assumptions used to prepare these provisional amounts during the measurement period. Provision for Income Taxes Provision for income taxes consists of the following: (in thousands) Current Deferred Total 2017 Federal $ 146,855 $ (146,741 ) $ 114 State 31,352 (3,437 ) 27,915 Foreign 17,810 (1,085 ) 16,725 $ 196,017 $ (151,263 ) $ 44,754 2016 Federal $ 209,499 $ 17,989 $ 227,488 State 29,345 1,366 30,711 Foreign 20,156 858 21,014 $ 259,000 $ 20,213 $ 279,213 2015 Federal $ 242,801 $ (6,564 ) $ 236,237 State 33,023 (1,797 ) 31,226 Foreign 12,885 (858 ) 12,027 $ 288,709 $ (9,219 ) $ 279,490 The provision for income taxes differed from the amount computed by applying the federal statutory income tax rate due to: Year Ended (in thousands) December 30, 2017 December 31, 2016 January 2, 2016 Income before provision for income taxes at statutory U.S. federal income tax rate (35%) $ 182,091 $ 258,592 $ 263,511 State income taxes, net of federal income tax benefit 18,145 19,962 20,297 Impact of the Act, net (143,756 ) — — Other, net (11,726 ) 659 (4,318 ) $ 44,754 $ 279,213 $ 279,490 Deferred Income Tax Assets (Liabilities) Temporary differences that give rise to significant deferred income tax assets (liabilities) are as follows: (in thousands) December 30, December 31, Deferred income tax assets: Accrued expenses not currently deductible for tax $ 38,200 $ 63,992 Share-based compensation 9,556 11,752 Accrued medical and workers compensation 33,697 46,116 Net operating loss carryforwards 6,701 5,093 Straight-line rent 21,733 31,631 Other, net 2,973 6,274 Total deferred income tax assets before valuation allowances 112,860 164,858 Less: Valuation allowance (3,778 ) (2,437 ) Total deferred income tax assets 109,082 162,421 Deferred income tax liabilities: Property and equipment (98,186 ) (168,906 ) Inventories (169,478 ) (222,301 ) Intangible assets (145,038 ) (225,496 ) Total deferred income tax liabilities (412,702 ) (616,703 ) Net deferred income tax liabilities $ (303,620 ) $ (454,282 ) As of December 30, 2017 and December 31, 2016 , the Company’s net operating loss (“NOL”) carryforwards related to state NOLs of $177.8 million and $153.0 million. These NOLs may be used to reduce future taxable income and expire periodically through 2036. Due to uncertainties related to the realization of these NOLs in certain jurisdictions, the Company recorded a valuation allowance of $3.8 million and $2.4 million as of December 30, 2017 and December 31, 2016 . The amount of deferred income tax assets realizable, however, could change in the future if projections of future taxable income change. Unrecognized Tax Benefits The following table summarizes the activity of the Company’s gross unrecognized tax benefits: (in thousands) December 30, December 31, January 2, Unrecognized tax benefits, beginning of period $ 13,946 $ 13,841 $ 14,033 Increases related to prior period tax positions 8,077 8,274 412 Decreases related to prior period tax positions (2,331 ) (1,600 ) (2,120 ) Increases related to current period tax positions 5,644 2,105 3,137 Settlements (1,496 ) (6,894 ) (582 ) Expiration of statute of limitations (1,175 ) (1,780 ) (1,039 ) Unrecognized tax benefits, end of period $ 22,665 $ 13,946 $ 13,841 As of December 30, 2017 , December 31, 2016 and January 2, 2016 , the entire amount of unrecognized tax benefits, if recognized, would reduce the Company’s annual effective tax rate. During 2017 , 2016 and 2015, the Company recorded income tax-related interest and penalties of $1.7 million, $1.9 million and $0.1 million related to uncertain tax positions included in Provision for income taxes in the accompanying consolidated statements of operations. As of December 30, 2017 and December 31, 2016 , the Company had recorded a liability for potential interest of $4.2 million and $2.7 million and for potential penalties of $0.1 million and $0.2 million. The Company has not provided for any penalties associated with tax contingencies unless considered probable of assessment. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. With few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2013. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 30, 2017 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments: Initial terms for facility leases are typically 10 to 15 years, with renewal options at five year intervals, and may include rent escalation clauses. As of December 30, 2017 , future minimum lease payments due under non-cancelable operating leases with lease terms extending through the year 2059 are as follows: Year Amount (in thousands) 2018 $ 484,427 2019 445,143 2020 401,686 2021 340,356 2022 279,734 Thereafter 1,008,507 $ 2,959,853 Net Rent Expense The following table summarizes net rent expense: Year Ended (in thousands) December 30, 2017 December 31, 2016 January 2, 2016 Minimum facility rentals $ 483,178 $ 473,596 $ 471,364 Equipment rentals 24,786 26,897 24,860 Vehicle rentals 32,670 47,251 47,919 540,634 547,744 544,143 Less: Sub-lease income (7,144 ) (7,379 ) (7,569 ) $ 533,490 $ 540,365 $ 536,574 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies: The Company is currently and from time to time subject to litigation, claims and other disputes, including legal and regulatory proceedings, arising in the normal course of business. The Company records a loss contingency liability when a loss is considered probable and the amount can be reasonably estimated. Although the final outcome of these legal matters cannot be determined, based on the facts presently known, it is management’s opinion that the final outcome of any pending matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. The Company’s Western Auto subsidiary, together with other defendants (including the Company and other of its subsidiaries), has been named as a defendant in lawsuits alleging injury as a result of exposure to asbestos-containing products. The plaintiffs have alleged that certain products contained asbestos and were manufactured, distributed and/or sold by the various defendants. Many of the cases pending against the Company are in the early stages of litigation. While the damages claimed against the defendants in some of these proceedings are substantial, the Company believes many of these claims are at least partially covered by insurance and historically asbestos claims against the Company have been inconsistent in fact patterns alleged and immaterial. The Company does not believe the cases currently pending will have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 30, 2017 | |
Postemployment Benefits [Abstract] | |
Benefit Plans | Benefit Plans: 401(k) Plan The Company maintains a defined contribution benefit plan, which covers substantially all Team Members after one year of service and who have attained the age of 21. The plan allows for Team Member salary deferrals, which are matched at the Company’s discretion. Company contributions to these plans were $14.2 million , $13.9 million and $14.6 million in 2017 , 2016 and 2015 . Deferred Compensation The Company maintains a non-qualified deferred compensation plan for certain Team Members. This plan provides for a minimum and maximum deferral percentage of the Team Member’s base salary and bonus, as determined by the Retirement Plan Committee. The Company establishes and maintains a deferred compensation liability for this plan. As of December 30, 2017 and December 31, 2016 , these liabilities were $16.8 million and $17.3 million . |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation: Overview The Company grants share-based compensation awards to its Team Members and members of its Board of Directors as provided for under the Company’s 2014 Long-Term Incentive Plan (“2014 LTIP”), which was approved by the Company’s shareholders on May 14, 2014. The Company currently grants share-based compensation in the form of stock appreciation rights (“SARs”), restricted stock units (“RSUs”) and deferred stock units (“DSUs”). All remaining restricted shares, which were granted prior to the transition to RSUs in 2012, vested during 2015. The Company’s grants, which have three methods of measuring fair value, generally include a time-based service portion, a performance-based portion and a market-based portion, which collectively represent the target award. At December 30, 2017 , there were 5.0 million shares of common stock available for future issuance under the 2014 LTIP based on management’s current estimate of the probable vesting outcome for performance-based awards. The Company issues new shares of common stock upon exercise of stock options and SARs. Shares forfeited and shares withheld for payment of taxes due become available for reissuance and are included in availability. Availability also includes shares that became available for reissuance in connection with the exercise of SARs. The fair value of each SAR granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: Black-Scholes Option Valuation Assumptions 2016 2015 Risk-free interest rate (1) 1.2 % 1.3 % Expected dividend yield 0.2 % 0.1 % Expected stock price volatility (2) 27.7 % 27.3 % Expected life of awards (in months) (3) 55 44 (1) The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate having term consistent with the expected life of the award. (2) Expected volatility is determined using a blend of historical and implied volatility. (3) The expected life of the Company’s awards represents the estimated period of time until exercise and is based on historical experience of previously granted awards. As no SARs were granted in 2017, the Black-Scholes model was not utilized and no assumptions were created. For time-based and performance-based RSUs, the fair value of each award was determined based on the market price of the Company’s stock on the date of grant adjusted for expected dividends during the vesting period, as applicable. The fair value of each market-based RSU was determined using a Monte Carlo simulation model. The model uses multiple input variables that determined the probability of satisfying the market condition requirements as follows: Monte Carlo Model Assumptions 2017 Risk-free interest rate (1) 1.6 % Expected dividend yield 0.2 % Expected stock price volatility (2) 26.2 % (1) The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate having term consistent with the vesting period of the award. (2) Expected volatility is determined based on historical volatility over a matching look-back period and is consistent with the correlation coefficients between the stock prices of the Company and its peer group. Additionally, the Company estimated a liquidity discount of 9.29% using the Chaffe Protective Put Method to adjust the fair value for the post-vest restrictions. Time-Based Awards The Company’s outstanding time-vested awards consist of SARs and RSUs. The SARs generally vest over a three-year period in equal annual installments beginning on the first anniversary of the grant date. The SARs granted are non-qualified, terminate on the seventh anniversary of the grant date and contain no post-vesting restrictions other than normal trading black-out periods prescribed by the Company’s corporate governance policies. The RSUs generally vest over a three-year period in equal annual installments beginning on the first anniversary of the grant date. During the vesting period, holders of RSUs are entitled to receive dividend equivalents, but are not entitled to voting rights. The following table summarizes activity for time-vested SARs and RSUs in 2017 : SARs RSUs (in thousands, except per share data) Number of Awards Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Number of Awards Weighted-Average Grant Date Fair Value Outstanding SARs / Nonvested RSUs at December 31, 2016 275 $ 93.89 211 $ 151.70 Granted — — 287 131.01 Exercised (157 ) 71.57 — — Vested — — (91 ) 149.26 Forfeited (5 ) 63.86 (61 ) 149.31 Outstanding SARs / Nonvested RSUs at December 30, 2017 113 $ 126.07 3.77 $ 1,222 346 $ 135.58 Vested and expected to vest 113 $ 126.07 3.77 $ — Outstanding and exercisable 45 $ 72.27 1.43 $ 1,222 The aggregate intrinsic value of time-vested SARs reflected in the table above and performance-based SARs reflected in the table below is based on the Company’s closing stock price of $99.69 as of the last trading day of 2017 . The fair value of time-based RSUs reflected in the table above and performance-based RSUs reflected in the table below is determined based on the market price of the Company’s common stock on the date of grant. The following table summarizes certain information concerning activity for time-vested SARs, RSUs and restricted shares: Year Ended (in thousands, except per share data) December 30, December 31, January 2, SARs: Weighted average fair value of grants $ — $ 43.64 $ — Aggregate intrinsic value of SARs exercised $ 11,455 $ 31,450 $ 26,060 RSUs and restricted shares: Weighted average fair value of grants $ 131.01 $ 155.51 $ 153.61 Total grant date fair value of RSUs and restricted shares vested $ 13,578 $ 16,089 $ 15,268 There were no time-vested SARs granted in 2017 or 2015. Performance-Based Awards The Company’s outstanding performance-based awards consist of SARs and RSUs. Performance awards generally may vest following a three-year period subject to the Company’s achievement of certain financial goals as specified in the grant agreements. Depending on the Company’s results during the three-year performance period, the actual number of awards vesting at the end of the period generally ranges from 0% to 200% of the performance award. The performance RSUs generally do not have dividend equivalent rights and do not have voting rights until the shares are earned and issued following the applicable performance period. During 2016, the Company also granted broad-based incentive awards to store and field team members that will vest over a one-year service period based on the achievement of performance goals during 2016. The number of performance-based awards outstanding is reflected in the following tables based on the number of awards that the Company believed were probable of vesting at December 30, 2017 . Performance-based SARs and performance-based RSU’s granted during 2017 are presented as grants in the table at their respective target levels. The change in units based on performance represents the change in the number of granted awards expected to vest based on the Company’s updated probability assessment as of December 30, 2017 . Compensation expense for performance-based awards of $13.6 million , $0.8 million , and $14.7 million in 2017 , 2016 and 2015 , was determined based on management’s estimate of the probable vesting outcome. The following table summarizes activity for performance-based SARs and RSUs in 2017 : SARs RSUs (in thousands, except per share data) Number of Awards Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Number of Awards Weighted-Average Grant Date Fair Value Outstanding SARs / Nonvested RSUs at December 31, 2016 114 $ 86.95 138 $ 162.71 Granted — — 53 146.42 Change in units based on performance 5 108.36 — — Exercised (81 ) 85.14 — — Vested — — (48 ) 162.02 Forfeited (9 ) 101.63 (18 ) 160.79 Outstanding SARs / Nonvested RSUs at December 30, 2017 29 $ 90.90 2.16 $ 423 125 $ 156.36 Vested and expected to vest 29 $ 90.90 2.16 $ — Outstanding and exercisable 29 $ 90.90 2.16 $ 423 The following table summarizes certain information concerning activity for performance-based SARs and RSUs: Year Ended (in thousands, except per share data) December 30, December 31, January 2, SARs: Weighted average fair value of grants $ — $ 36.78 $ 43.38 Aggregate intrinsic value of SARs exercised $ 5,221 $ 11,556 $ 8,475 RSUs: Weighted average fair value of grants $ 146.42 $ 163.76 $ — Total grant date fair value of RSUs vested $ 7,823 $ 13,512 $ 1,763 There were no performance-based SARs granted in 2017 or performance based RSUs granted in 2015 . As of December 30, 2017 , the maximum potential payout under the Company’s currently outstanding performance-based SARs and RSUs was 663 thousand and 173 thousand units. Market-Based Awards The Company’s outstanding market-based awards consist of RSUs. Market-based RSU’s vesting depends on the Company’s relative total shareholder return among a designated group of peer companies during a three-year period and will be subject to a one-year holding period after vesting. At the beginning of 2017 , zero market-based RSUs were outstanding. During 2017 , a total of 27 thousand market-based RSUs were granted at a weighted average fair value of $139.33 per unit and 3 thousand market-based RSUs were forfeited at a weighted average fair value of $145.83 . Other Considerations Total income tax benefit related to share-based compensation expense for 2017 , 2016 and 2015 was $15.3 million , $7.5 million and $13.6 million . As of December 30, 2017 , there was $44.3 million of unrecognized compensation expense related to all share-based awards that was expected to be recognized over a weighted average period of 1.8 years. The Company modified selected awards for certain terminated employees during 2015 such that the employees would vest in awards that would have otherwise been forfeited, which resulted in incremental expense recognized in 2015 of $6.6 million . As four of these modified awards were cash settled in March 2016, they were accounted for as liability awards as of January 2, 2016. The value of the liability awards was insignificant as of January 2, 2016. No such modification occurred in 2017 or 2016. Deferred Stock Units The Company grants share-based awards annually to its Board of Directors in connection with its annual meeting of stockholders. These awards are granted in the form of DSUs as provided for in the Advance Auto Parts, Inc. Deferred Stock Unit Plan for Non-Employee Directors and Selected Executives (“DSU Plan”). Each DSU is equivalent to one share of common stock of the Company and will be distributed in common shares after the director’s service on the Board ends. DSUs granted in 2017 and 2016 vest over a one year service period, while DSUs granted in 2015 were fully vested on the grant date. Additionally, the DSU Plan provides for the deferral of compensation earned in the form of (i) an annual retainer for directors, and (ii) wages for certain highly compensated Team Members of the Company. These DSUs are settled in common stock with the participants at a future date, or over a specified time period, as elected by the participants in accordance with the DSU Plan. The Company granted 12 thousand DSUs in 2017 . The weighted average fair value of DSUs granted during 2017 , 2016 and 2015 was $125.34 , $146.30 , and $156.83 . The DSUs are awarded at a price equal to the market price of the Company’s underlying stock on the date of the grant. For 2017 , 2016 and 2015 , the Company recognized $1.5 million , $0.9 million and $2.1 million of share-based compensation expense for these DSU grants. Employee Stock Purchase Plan The Company also offers an employee stock purchase plan (“ESPP”). Under the ESPP, eligible Team Members may elect salary deferrals to purchase the Company’s common stock at a discount of 10% from its fair market value on the date of purchase. There are annual limitations on the amounts a Team Member may elect of either $25 thousand per Team Member or 10% of compensation, whichever is less. As of December 30, 2017 , there were 1.0 million shares available to be issued under the ESPP. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss: Accumulated other comprehensive loss, net of tax, consisted of the following: (in thousands) Unrealized Gain (Loss) Foreign Currency Translation Accumulated Balance, January 3, 2015 $ 2,931 $ (15,268 ) $ (12,337 ) 2015 activity (445 ) (31,277 ) (31,722 ) Balance, January 2, 2016 2,486 (46,545 ) (44,059 ) 2016 activity (534 ) 4,892 4,358 Balance, December 31, 2016 1,952 (41,653 ) (39,701 ) 2017 activity (194 ) 14,941 14,747 Balance, December 30, 2017 $ 1,758 $ (26,712 ) $ (24,954 ) |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 30, 2017 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements: Certain 100% wholly owned domestic subsidiaries of Advance, including its Material Subsidiaries (as defined in the 2017 Credit Agreement) serve as guarantors of Advance’s senior unsecured notes (“Guarantor Subsidiaries”). The subsidiary guarantees related to Advance’s senior unsecured notes are full and unconditional, joint and several and there are no restrictions on the ability of Advance to obtain funds from its Guarantor Subsidiaries. Certain of Advance’s wholly owned subsidiaries, including all of its foreign subsidiaries, do not serve as guarantors of Advance’s senior unsecured notes (“Non-Guarantor Subsidiaries”). Set forth below are condensed consolidating financial statements presenting the financial position, results of operations, and cash flows of (i) Advance, (ii) the Guarantor Subsidiaries, (iii) the Non-Guarantor Subsidiaries, and (iv) the eliminations necessary to arrive at consolidated information for the Company. Investments in subsidiaries of the Company are presented under the equity method. The statement of operations eliminations relate primarily to the sale of inventory from a Non-Guarantor Subsidiary to a Guarantor Subsidiary. The balance sheet eliminations relate primarily to the elimination of intercompany receivables and payables and subsidiary investment accounts. The following tables present condensed consolidating balance sheets, condensed consolidating statements of operations, comprehensive income and cash flows, and should be read in conjunction with the consolidated financial statements herein. Condensed Consolidating Balance Sheet As of December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 23 $ 482,620 $ 64,317 $ (23 ) $ 546,937 Receivables, net — 567,460 38,897 — 606,357 Inventories — 3,986,724 181,768 — 4,168,492 Other current assets — 103,118 2,063 (75 ) 105,106 Total current assets 23 5,139,922 287,045 (98 ) 5,426,892 Property and equipment, net of accumulated depreciation 103 1,384,115 9,920 — 1,394,138 Goodwill — 943,359 50,934 — 994,293 Intangible assets, net — 551,781 45,893 — 597,674 Other assets, net 3,224 68,749 554 (3,223 ) 69,304 Investment in subsidiaries 3,521,330 448,462 — (3,969,792 ) — Intercompany note receivable 1,048,700 — — (1,048,700 ) — Due from intercompany, net — — 332,467 (332,467 ) — $ 4,573,380 $ 8,536,388 $ 726,813 $ (5,354,280 ) $ 8,482,301 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ — $ 2,657,792 $ 236,790 $ — $ 2,894,582 Accrued expenses 1,134 511,841 20,648 (75 ) 533,548 Other current liabilities — 50,963 1,027 (23 ) 51,967 Total current liabilities 1,134 3,220,596 258,465 (98 ) 3,480,097 Long-term debt 1,044,327 — — — 1,044,327 Deferred income taxes — 288,999 17,844 (3,223 ) 303,620 Other long-term liabilities — 237,019 2,042 — 239,061 Intercompany note payable — 1,048,700 — (1,048,700 ) — Due to intercompany, net 112,723 219,744 — (332,467 ) — Commitments and contingencies Stockholders' equity 3,415,196 3,521,330 448,462 (3,969,792 ) 3,415,196 $ 4,573,380 $ 8,536,388 $ 726,813 $ (5,354,280 ) $ 8,482,301 Condensed Consolidating Balance Sheet As of December 31, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 22 $ 78,543 $ 56,635 $ (22 ) $ 135,178 Receivables, net — 619,229 22,023 — 641,252 Inventories — 4,126,465 199,403 — 4,325,868 Other current assets — 69,385 1,153 (72 ) 70,466 Total current assets 22 4,893,622 279,214 (94 ) 5,172,764 Property and equipment, net of accumulated depreciation 128 1,436,459 9,753 — 1,446,340 Goodwill — 943,359 47,518 — 990,877 Intangible assets, net — 595,596 45,307 — 640,903 Other assets, net 4,634 63,376 773 (4,634 ) 64,149 Investment in subsidiaries 3,008,856 375,420 — (3,384,276 ) — Intercompany note receivable 1,048,424 — — (1,048,424 ) — Due from intercompany, net — — 316,109 (316,109 ) — $ 4,062,064 $ 8,307,832 $ 698,674 $ (4,753,537 ) $ 8,315,033 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ — $ 2,813,937 $ 272,240 $ — $ 3,086,177 Accrued expenses 1,505 526,652 26,312 (72 ) 554,397 Other current liabilities — 32,508 2,986 (22 ) 35,472 Total current liabilities 1,505 3,373,097 301,538 (94 ) 3,676,046 Long-term debt 1,042,949 — — — 1,042,949 Deferred income taxes — 439,283 19,633 (4,634 ) 454,282 Other long-term liabilities — 223,481 2,083 — 225,564 Intercompany note payable — 1,048,424 — (1,048,424 ) — Due to intercompany, net 101,418 214,691 — (316,109 ) — Commitments and contingencies Stockholders' equity 2,916,192 3,008,856 375,420 (3,384,276 ) 2,916,192 $ 4,062,064 $ 8,307,832 $ 698,674 $ (4,753,537 ) $ 8,315,033 Condensed Consolidating Statement of Operations For the Year Ended December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,034,790 $ 550,450 $ (211,456 ) $ 9,373,784 Cost of sales, including purchasing and warehousing costs — 5,107,063 393,128 (211,456 ) 5,288,735 Gross profit — 3,927,727 157,322 — 4,085,049 Selling, general and administrative expenses 30,478 3,453,406 82,155 (51,202 ) 3,514,837 Operating (loss) income (30,478 ) 474,321 75,167 51,202 570,212 Other, net: Interest (expense) income (52,305 ) (6,496 ) — — (58,801 ) Other income (expense), net 83,840 (17,729 ) (6,061 ) (51,202 ) 8,848 Total other, net 31,535 (24,225 ) (6,061 ) (51,202 ) (49,953 ) Income before provision for income taxes 1,057 450,096 69,106 — 520,259 Provision for income taxes 641 32,623 11,490 — 44,754 Income before equity in earnings of subsidiaries 416 417,473 57,616 — 475,505 Equity in earnings of subsidiaries 475,089 57,616 — (532,705 ) — Net income $ 475,505 $ 475,089 $ 57,616 $ (532,705 ) $ 475,505 Condensed Consolidating Statement of Operations For the Year Ended December 31, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,254,477 $ 556,747 $ (243,545 ) $ 9,567,679 Cost of sales, including purchasing and warehousing costs — 5,171,953 383,356 (243,545 ) 5,311,764 Gross profit — 4,082,524 173,391 — 4,255,915 Selling, general and administrative expenses 28,695 3,402,323 92,287 (54,988 ) 3,468,317 Operating (loss) income (28,695 ) 680,201 81,104 54,988 787,598 Other, net: Interest (expense) income (52,081 ) (7,897 ) 68 — (59,910 ) Other income (expense), net 81,683 (19,558 ) 4,010 (54,988 ) 11,147 Total other, net 29,602 (27,455 ) 4,078 (54,988 ) (48,763 ) Income before provision for income taxes 907 652,746 85,182 — 738,835 Provision for income taxes 1,588 260,155 17,470 — 279,213 (Loss) income before equity in earnings of subsidiaries (681 ) 392,591 67,712 — 459,622 Equity in earnings of subsidiaries 460,303 67,712 — (528,015 ) — Net income $ 459,622 $ 460,303 $ 67,712 $ (528,015 ) $ 459,622 Condensed Consolidating Statement of Operations For the Year Ended January 2, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,432,116 $ 593,606 $ (288,704 ) $ 9,737,018 Cost of sales, including purchasing and warehousing costs — 5,172,938 430,012 (288,704 ) 5,314,246 Gross profit — 4,259,178 163,594 — 4,422,772 Selling, general and administrative expenses 24,186 3,536,697 93,852 (57,743 ) 3,596,992 Operating (loss) income (24,186 ) 722,481 69,742 57,743 825,780 Other, net: Interest expense (52,210 ) (13,378 ) 180 — (65,408 ) Other income (expense), net 76,987 (19,699 ) (7,029 ) (57,743 ) (7,484 ) Total other, net 24,777 (33,077 ) (6,849 ) (57,743 ) (72,892 ) Income before provision for income taxes 591 689,404 62,893 — 752,888 Provision for income taxes 1,220 268,571 9,699 — 279,490 (Loss) income before equity in earnings of subsidiaries (629 ) 420,833 53,194 — 473,398 Equity in earnings of subsidiaries 474,027 53,194 — (527,221 ) — Net income $ 473,398 $ 474,027 $ 53,194 $ (527,221 ) $ 473,398 Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 475,505 $ 475,089 $ 57,616 $ (532,705 ) $ 475,505 Other comprehensive income: Changes in net unrecognized other postretirement benefit costs — (194 ) — — (194 ) Currency translation adjustments — — 14,941 — 14,941 Equity in other comprehensive income of subsidiaries 14,747 14,941 — (29,688 ) — Total other comprehensive income 14,747 14,747 14,941 (29,688 ) 14,747 Comprehensive income $ 490,252 $ 489,836 $ 72,557 $ (562,393 ) $ 490,252 Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 31, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 459,622 $ 460,303 $ 67,712 $ (528,015 ) $ 459,622 Other comprehensive income: Changes in net unrecognized other postretirement benefit costs — (534 ) — — (534 ) Currency translation adjustments — — 4,892 — 4,892 Equity in other comprehensive income of subsidiaries 4,358 4,892 — (9,250 ) — Total other comprehensive income 4,358 4,358 4,892 (9,250 ) 4,358 Comprehensive income $ 463,980 $ 464,661 $ 72,604 $ (537,265 ) $ 463,980 Condensed Consolidating Statement of Comprehensive Income For the Year Ended January 2, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 473,398 $ 474,027 $ 53,194 $ (527,221 ) $ 473,398 Other comprehensive loss: Changes in net unrecognized other postretirement benefit costs — (445 ) — — (445 ) Currency translation adjustments — — (31,277 ) — (31,277 ) Equity in other comprehensive loss of subsidiaries (31,722 ) (31,277 ) — 62,999 — Other comprehensive loss (31,722 ) (31,722 ) (31,277 ) 62,999 (31,722 ) Comprehensive income $ 441,676 $ 442,305 $ 21,917 $ (464,222 ) $ 441,676 Condensed Consolidating Statement of Cash Flows For the Year Ended December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 593,091 $ 7,714 $ — $ 600,805 Cash flows from investing activities: Purchases of property and equipment — (187,993 ) (1,765 ) — (189,758 ) Proceeds from sales of property and equipment — 11,085 14 — 11,099 Other, net — 480 (460 ) — 20 Net cash used in investing activities — (176,428 ) (2,211 ) — (178,639 ) Cash flows from financing activities: Increase (decrease) in bank overdrafts — 16,290 (2,286 ) — 14,004 Borrowings under credit facilities — 534,400 — — 534,400 Payments on credit facilities — (534,400 ) — — (534,400 ) Dividends paid — (17,854 ) — — (17,854 ) Proceeds from the issuance of common stock — 4,076 — — 4,076 Tax withholdings related to the exercise of stock appreciation rights — (6,531 ) — — (6,531 ) Repurchase of common stock — (6,498 ) — — (6,498 ) Other, net 1 (2,069 ) — (1 ) (2,069 ) Net cash provided by (used in) financing activities 1 (12,586 ) (2,286 ) (1 ) (14,872 ) Effect of exchange rate changes on cash — — 4,465 — 4,465 Net increase in cash and cash equivalents 1 404,077 7,682 (1 ) 411,759 Cash and cash equivalents , beginning of period 22 78,543 56,635 (22 ) 135,178 Cash and cash equivalents , end of period $ 23 $ 482,620 $ 64,317 $ (23 ) $ 546,937 Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 14 $ 491,180 $ 32,109 $ — $ 523,303 Cash flows from investing activities: Purchases of property and equipment — (257,159 ) (2,400 ) — (259,559 ) Proceeds from sales of property and equipment — 2,210 2 — 2,212 Other, net — (4,697 ) — — (4,697 ) Net cash used in investing activities — (259,646 ) (2,398 ) — (262,044 ) Cash flows from financing activities: Decrease in bank overdrafts — (4,902 ) (657 ) (14 ) (5,573 ) Borrowings under credit facilities — 799,600 — — 799,600 Payments on credit facilities — (959,600 ) — — (959,600 ) Dividends paid — (17,738 ) — — (17,738 ) Proceeds from the issuance of common stock — 4,532 — — 4,532 Tax withholdings related to the exercise of stock appreciation rights — (19,558 ) — — (19,558 ) Repurchase of common stock — (18,393 ) — — (18,393 ) Other, net — (390 ) — — (390 ) Net cash used in financing activities — (216,449 ) (657 ) (14 ) (217,120 ) Effect of exchange rate changes on cash — — 257 — 257 Net increase in cash and cash equivalents 14 15,085 29,311 (14 ) 44,396 Cash and cash equivalents , beginning of period 8 63,458 27,324 (8 ) 90,782 Cash and cash equivalents , end of period $ 22 $ 78,543 $ 56,635 $ (22 ) $ 135,178 Condensed Consolidating Statement of Cash Flows For the Year Ended January 2, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash (used in) provided by operating activities $ (1 ) $ 709,582 $ (6,937 ) $ — $ 702,644 Cash flows from investing activities: Purchases of property and equipment — (232,591 ) (2,156 ) — (234,747 ) Proceeds from sales of property and equipment — 266 4 — 270 Other, net — (18,583 ) (306 ) — (18,889 ) Net cash used in investing activities — (250,908 ) (2,458 ) — (253,366 ) Cash flows from financing activities: (Decrease) increase in bank overdrafts — (4,529 ) 1,606 1 (2,922 ) Borrowings under credit facilities — 618,300 — — 618,300 Payments on credit facilities — (1,041,700 ) — — (1,041,700 ) Dividends paid — (17,649 ) — — (17,649 ) Proceeds from the issuance of common stock — 5,174 — — 5,174 Tax withholdings related to the exercise of stock appreciation rights — (13,112 ) — — (13,112 ) Repurchase of common stock — (6,665 ) — — (6,665 ) Other, net — (380 ) — — (380 ) Net cash (used in) provided by financing activities — (460,561 ) 1,606 1 (458,954 ) Effect of exchange rate changes on cash — — (4,213 ) — (4,213 ) Net decrease in cash and cash equivalents (1 ) (1,887 ) (12,002 ) 1 (13,889 ) Cash and cash equivalents , beginning of period 9 65,345 39,326 (9 ) 104,671 Cash and cash equivalents , end of period $ 8 $ 63,458 $ 27,324 $ (8 ) $ 90,782 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (unaudited): The following table summarizes quarterly financial data for 2017 and 2016 : 2017 First Second Third Fourth (in thousands, except per share data) (16 weeks) (12 weeks) (12 weeks) (12 weeks) Net sales $ 2,890,838 $ 2,263,727 $ 2,182,233 $ 2,036,986 Gross profit $ 1,270,684 $ 993,088 $ 947,708 $ 873,569 Net income $ 107,960 $ 87,049 $ 95,996 $ 184,500 Basic earnings per common share $ 1.46 $ 1.18 $ 1.30 $ 2.50 Diluted earnings per common share $ 1.46 $ 1.17 $ 1.30 $ 2.49 2016 First Second Third Fourth (in thousands, except per share data) (16 weeks) (12 weeks) (12 weeks) (12 weeks) Net sales $ 2,979,778 $ 2,256,155 $ 2,248,855 $ 2,082,891 Gross profit $ 1,349,889 $ 1,010,257 $ 988,205 $ 907,564 Net income $ 158,813 $ 124,600 $ 113,844 $ 62,365 Basic earnings per common share $ 2.16 $ 1.69 $ 1.54 $ 0.84 Diluted earnings per common share $ 2.14 $ 1.68 $ 1.53 $ 0.84 Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not be equal to the per share amount for the year. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Advance Auto Parts, Inc. Schedule II - Valuation and Qualifying Accounts (in thousands) Allowance for doubtful accounts receivable Balance at Beginning of Period Charges to Expenses Deductions Balance at End of Period January 2, 2016 $ 16,152 $ 22,067 $ (12,461 ) (1) $ 25,758 December 31, 2016 $ 25,758 $ 24,597 $ (21,191 ) (1) $ 29,164 December 30, 2017 $ 29,164 $ 20,110 $ (31,055 ) (1) $ 18,219 (1) Accounts written off during the period. These amounts did not impact the Company’s statement of operations for any year presented. Other valuation and qualifying accounts have not been reported in this schedule because they are either not applicable or because the information has been included elsewhere in this report . |
Nature of Operations and Basi30
Nature of Operations and Basis of Presentation Nature of Operations and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Period | Accounting Period The Company’s fiscal year ends on the Saturday nearest the end of December. All references herein for the years 2017 , 2016 and 2015 represent the fiscal years ended December 30, 2017 , December 31, 2016 and January 2, 2016 |
Basis of Presentation | The consolidated financial statements include the accounts of Advance and its wholly owned subsidiaries prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Significant Accounting Polici31
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2017 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash in banks and money market funds with original maturities of three months or less. Also included in cash equivalents are credit card and debit card receivables from banks, which generally settle in less than four business days. |
Inventory | Inventory The Company’s inventory consists primarily of parts, batteries, accessories and other products used on vehicles that have reasonably long shelf lives and is stated at the lower of cost or market. The cost of the Company’s merchandise inventory is primarily determined using the last-in, first-out (“LIFO”) method. Under the LIFO method, the Company’s cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs relating to prices paid in 2017 and prior years. |
Vendor Incentives | Vendor Incentives The Company receives incentives in the form of reductions to amounts owed to and/or payments from vendors related to volume rebates and other promotional considerations. Many of these incentives are under long-term agreements in excess of one year, while others are negotiated on an annual basis or shorter. Advertising allowances provided as a reimbursement of specific, incremental and identifiable costs incurred to promote a vendor’s products are included as an offset to selling, general and administrative expenses (“SG&A”) when the cost is incurred. Volume rebates and allowances that do not meet the requirements for offsetting in SG&A are recorded as a reduction to inventory as they are earned based on inventory purchases. Total deferred vendor incentives included as a reduction of Inventory were $179.2 million and $211.1 million as of December 30, 2017 and December 31, 2016 . The Company recognizes other promotional incentives earned under long-term agreements not specifically related to volume of purchases as a reduction to cost of sales. However, these incentives are not deferred as a reduction of inventory and are recognized based on the cumulative net purchases as a percentage of total estimated net purchases over the life of the agreement. Short-term incentives with terms less than one year are generally recognized as a reduction to cost of sales over the duration of the agreements. Amounts received or receivable from vendors that are not yet earned are reflected as deferred revenue in the accompanying consolidated balance sheets. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged directly to expense when incurred; major improvements are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the account balances, with any gain or loss reflected in the consolidated statements of operations. Depreciation of land improvements, buildings, furniture, fixtures and equipment, and vehicles is provided over the estimated useful lives of the respective assets using the straight-line method. Depreciation of building and leasehold improvements is provided over the shorter of the original useful lives of the respective assets or the term of the lease using the straight-line method. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets The Company performs its evaluation for the impairment of goodwill and indefinite-lived intangible assets for its reporting units annually as of the first day of the fourth quarter, or when indications of potential impairment exist. These indicators would include a significant change in operating performance, the business climate, legal factors, competition, or a planned sale or disposition of a significant portion of the business, among other factors. The Company assesses qualitative factors such as current company performance and overall economic factors to determine if it is more-likely-than-not that the goodwill might be impaired and whether it is necessary to perform the step one quantitative goodwill impairment test. In the quantitative goodwill test, the Company compares the carrying value of a reporting unit to its fair value. If the carrying value of the reporting unit exceeds the estimated fair value, a second step is performed, which compares the implied fair value of goodwill to the carrying value, to determine the amount of impairment. The Company’s indefinite-lived intangible assets are tested for impairment at the asset group level. Indefinite-lived intangibles are evaluated by comparing the carrying amount of the asset to the future discounted cash flows that the asset is expected to generate. If the fair value based on the future discounted cash flows exceeds the carrying value, we conclude that no intangible asset impairment has occurred. If the carrying value of the indefinite-lived intangible asset exceeds the fair value, we recognize an impairment loss. Effective in the third quarter of 2017, the Company realigned its three geographic divisions, which included the operations of the stores operating under the Advance Auto Parts, Carquest and Autopart International trade names, into two U.S. geographic divisions. As a result of this realignment and change in the operating structure of its Carquest Independent and Carquest Canada businesses, the Company has increased its number of operating segments from four to five, and defined them as “Northern Division,” “Southern Division,” “Carquest Canada,” “Independents” and “Worldpac.” As each operating segment represents a reporting unit, goodwill was reassigned to the affected reporting units using a relative fair value approach. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets, including finite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable and exceeds its fair value. When such an event occurs, the Company estimates the undiscounted future cash flows expected to result from the use of the long-lived asset or asset group and its eventual disposition. These impairment evaluations involve estimates of asset useful lives and future cash flows. If the undiscounted expected future cash flows are less than the carrying amount of the asset and the carrying amount of the asset exceeds its fair value, an impairment loss is recognized. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on quoted market prices or other valuation techniques (e.g., discounted cash flow analysis). |
Self-Insurance | Self-Insurance The Company is self-insured for general and automobile liability, workers’ compensation and health care claims of its employees, or Team Members, while maintaining stop-loss coverage with third-party insurers to limit its total liability exposure. Expenses associated with these liabilities are calculated for (i) claims filed, (ii) claims incurred but not yet reported and (iii) projected future claims using actuarial methods followed in the insurance industry as well as the Company’s historical claims experience. The Company includes the current and long-term portions of its self-insurance reserves in Accrued expenses and Other long-term liabilities. |
Warranty Liabilities | Warranty Liabilities The warranty obligation on the majority of merchandise sold by the Company with a manufacturer’s warranty is the responsibility of the Company’s vendors. However, the Company has an obligation to provide customers replacement of certain merchandise at no cost or merchandise at a prorated cost if under a warranty and not covered by the manufacturer. Merchandise sold with warranty coverage by the Company primarily includes batteries, but may also include other parts such as brakes and shocks. The Company estimates its warranty obligation at the time of sale based on the historical return experience, sales level and cost of the respective product sold. To the extent vendors provide upfront allowances in lieu of accepting the obligation for warranty claims and the allowance is in excess of the related warranty expense, the excess is recorded as a reduction to cost of sales. |
Leases | Leases The Company leases certain store locations, distribution centers, office spaces, equipment and vehicles. The total amount of minimum rent is expensed on a straight-line basis over the initial term of the lease unless external economic factors exist such that renewals are reasonably assured. In those instances, the renewal period would be included in the lease term for purposes of establishing an amortization period and determining if such lease qualified as a capital or operating lease. Differences between the calculated rent expense and cash payments are recorded as a liability within the Accrued expenses and Other long-term liabilities captions in the accompanying consolidated balance sheets, based on the terms of the lease. Most leases require the Company pay taxes, maintenance, insurance and certain other expenses applicable to the leased premises. Management expects that in the normal course of business leases that expire will be renewed or replaced by other leases. |
Fair Value Measurements | Fair Value Measurements A three-level valuation hierarchy, based upon observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. These two types of inputs create the following fair value hierarchy: Level 1 - Quoted prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose significant inputs are observable; and Level 3 - Instruments whose significant inputs are unobservable. Financial instruments are transferred in and/or out of Level 1, 2 or 3 at the beginning of the accounting period in which there is a change in the valuation inputs. |
Closed Facility Liabilities and Exit Activities | Closed Facility Liabilities and Exit Activities The Company continually reviews the operating performance of its existing store locations and closes or relocates certain stores identified as underperforming. In addition, the Company is consolidating certain locations as part of its planned integration of General Parts International, Inc. (“GPI”). Expenses accrued pertaining to closed facility exit activities are included in the Company’s closed facility liabilities, within Accrued expenses and Other long-term liabilities in the accompanying consolidated balance sheets, and recognized in SG&A in the accompanying consolidated statements of operations at the time of facility closure. Closed facility liabilities include the present value of the remaining lease obligations and management’s estimate of future costs of insurance, property tax and common area maintenance expenses, reduced by the present value of estimated revenues from subleases and lease buyouts. Employees receiving severance benefits as the result of a store closing or other restructuring activity are required to render service until they are terminated in order to receive benefits. Severance benefits are recognized over the related service period. Other restructuring costs, including costs to relocate employees, are recognized in the period in which the liability is incurred. |
Share-Based Payments | Share-Based Payments The Company provides share-based compensation to its eligible Team Members and Board of Directors. The Company is required to exercise judgment and make estimates when determining the (i) fair value of each award granted and (ii) projected number of awards expected to vest. The Company calculates the fair value of all share-based awards at the date of grant and uses the straight-line method to amortize this fair value as compensation cost over the requisite service period. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue at the time the sale is made, at which time the Company’s walk-in customers take immediate possession of the merchandise or same-day delivery is made to the Company’s Professional delivery customers, which include certain independently owned store locations. For e-commerce sales, revenue is recognized either at the time of pick-up at one of the Company’s store locations or at the time of shipment depending on the customer’s order designation. Sales are recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. The Company estimates the reduction to sales and cost of sales for returns based on current sales levels and the Company’s historical return experience. |
Receivables | Receivables, net consist primarily of receivables from Professional customers. The Company grants credit to certain Professional customers who meet the Company’s pre-established credit requirements. Accounts receivable is stated at net realizable value. The Company regularly reviews accounts receivable balances and maintains allowances for doubtful accounts for estimated losses whenever events or circumstances indicate the carrying value may not be recoverable. The Company considers the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. The Company controls credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures. |
Cost of Sales | Cost of Sales Cost of sales includes actual product cost, warranty costs, vendor incentives, cash discounts on payments to vendors, costs associated with operating our distribution network, including payroll and benefits costs, occupancy costs and depreciation, in-bound freight-related costs from our vendors and costs associated with moving merchandise inventories from our distribution centers to stores, branch locations and customers. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses SG&A includes payroll and benefits costs for store and corporate Team Members, occupancy costs of store and corporate facilities, depreciation and amortization related to store and corporate assets, share-based compensation expense, advertising, self-insurance, costs of consolidating, converting or closing facilities, including early termination of lease obligations, severance and impairment charges, professional services and costs associated with our Professional delivery program, including payroll and benefit costs, and transportation expenses associated with moving merchandise inventories from stores and branches to customer locations. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of the Company’s foreign operations are translated into U.S. dollars at current exchange rates, and revenues, expenses and cash flows are translated at average exchange rates for the year. Resulting translation adjustments are reflected as a separate component in the Consolidated Statements of Comprehensive Income. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under the asset and liability method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and for income tax reporting purposes. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date. The Company recognizes tax benefits and/or tax liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts as the Company must determine the probability of various possible outcomes. The Company reevaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. The reevaluations are based on many factors, including but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes of limitations and new federal or state audit activity. Any change in either the Company’s recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. |
Earnings per Share | Earnings per Share Basic earnings per share of common stock has been computed based on the weighted-average number of common shares outstanding during the period, which is reduced by stock held in treasury and shares of nonvested restricted stock units. Diluted earnings per share is calculated by including the effect of dilutive securities. Diluted earnings per share of common stock reflects the weighted-average number of shares of common stock outstanding, outstanding deferred stock units and the impact of outstanding stock options and stock appreciation rights (collectively “share-based awards”). Share-based awards containing performance conditions are included in the dilution impact as those conditions are met. |
Segment Information | Segment Information Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by information about the Company’s five operating segments, for purposes of allocating resources and evaluating financial performance. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which required a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The ASU is effective for fiscal years, and for interim periods within those years, beginning after December 15, 2019, with early adoption permitted after January 1, 2017. The Company elected to early adopt ASU 2017-04 in 2017 and applied the new guidance in completion of its annual goodwill impairment test performed in the fourth quarter of 2017. In March 2016, the FASB issued ASU 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” aimed at simplifying certain aspects of accounting for share-based payment transactions. The areas for simplification include the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted ASU 2016-09 in the first quarter of 2017 and recorded a cumulative net increase in stockholders’ equity of $0.3 million related to the Company’s election to record forfeitures as they occur. In addition, the Company elected to retrospectively adopt the provision regarding the presentation of excess tax benefits in the statement of cash flows, which resulted in an increase in our net cash provided by operating activities and a decrease in our net cash provided by financing activities of $22.4 million and $13.0 million for 2016 and 2015. The provision requiring the inclusion of excess tax benefits (deficits) as a component of the Provision for income taxes in the consolidated results of operations is being applied prospectively. The Company recorded excess tax benefits of $2.3 million as a reduction in Provision for income taxes during 2017. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU is a comprehensive new leases standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. It will require lessees to recognize lease assets and lease liabilities for most leases, including those leases previously classified as operating leases under current GAAP. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The ASU is effective for annual periods beginning after December 15, 2018, including interim periods within those years; earlier adoption is permitted. The FASB issued an exposure draft to amend Topic 842 to provide entities with an additional transition method with which to adopt Topic 842. The proposed transition method would enable entities to apply the transition requirements in Topic 842 at the effective date of that Topic (rather than at the beginning of the earliest comparative period presented as currently required) with the effects of initially applying Topic 842 recognized as a cumulative-effect adjustment to retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with Topic 840, including the disclosure requirements of that Topic. Practical expedients are available for election as a package and if applied consistently to all leases. The Company has selected its leasing software solution and is in the process of identifying changes to its business processes, systems and controls to support adoption of the new standard in 2019. The Company is evaluating the impact that the new standard will have on the consolidated financial statements. While the Company is unable to quantify the impact at this time, it expects the adoption of the new standard to result in a material increase in the assets and liabilities in the consolidated financial statements. At this time, the Company does not expect adoption of ASU 2016-02 to have a material impact on its consolidated statements of operations as the majority of its leases will remain operating in nature. As such, the expense recognition will be similar to previously required straight-line expense treatment. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” as modified by subsequently issued ASUs 2015-14, 2016-08, 2016-10, 2016-12 and 2016-20 (collectively, “Topic 606”). Topic 606 superseded existing revenue recognition standards with a single model. The revenue recognition principle in Topic 606 is that an entity should recognize revenue to depict the transfer of 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. The Company plans to adopt Topic 606 in the first quarter of 2018 by applying the modified retrospective approach. Results for reporting periods beginning after December 30, 2017 will be presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. Generally the Company’s performance obligations are satisfied the same day contracts with customers are initiated. As such, the adoption of the new standard will not have a material impact on the Company’s consolidated financial condition, results of operations, cash flows, business process, controls or systems. Additionally, we expect the impact of the adoption of the new standard to be immaterial to our net income on an ongoing basis. |
Significant Accounting Polici32
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Accounting Policies [Abstract] | |
Revenue From External Customers By Products And Services | The following table summarizes financial information for each of the Company’s product groups. Year Ended December 30, 2017 December 31, 2016 January 2, 2016 Percentage of Sales, by Product Group Parts and Batteries 65 % 66 % 66 % Accessories and Chemicals 20 % 19 % 19 % Engine Maintenance 14 % 14 % 14 % Other 1 % 1 % 1 % Total 100 % 100 % 100 % |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Inventory, Net [Abstract] | |
Schedule Of Inventory | Inventory balances were as follows: (in thousands) December 30, December 31, Inventories at FIFO $ 3,965,370 $ 4,120,030 Adjustments to state inventories at LIFO 203,122 205,838 Inventories at LIFO $ 4,168,492 $ 4,325,868 |
Exit Activities and Other Ini34
Exit Activities and Other Initiatives (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule Of Restructuring Reserve By Type Of Cost | A summary of the Company’s exit liabilities are presented in the following table: (in thousands) Closed Facility Lease Obligations Severance Total Balance, January 2, 2016 $ 42,490 $ 6,255 $ 48,745 Reserves established 23,252 988 24,240 Change in estimates (3,073 ) (410 ) (3,483 ) Cash payments (18,404 ) (5,874 ) (24,278 ) Balance, December 31, 2016 44,265 959 45,224 Reserves established 7,940 7,927 15,867 Change in estimates (1,116 ) (699 ) (1,815 ) Cash payments (19,519 ) (6,542 ) (26,061 ) Balance, December 30, 2017 $ 31,570 $ 1,645 $ 33,215 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Indefinite-Lived Intangible Assets | A summary of the composition of the gross carrying amounts and accumulated amortization of acquired intangible assets are presented in the following table: December 30, 2017 December 31, 2016 (in thousands) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Customer relationships $ 351,203 $ (116,909 ) $ 234,294 $ 349,615 $ (89,420 ) $ 260,195 Favorable leases 32,512 (14,959 ) 17,553 48,693 (24,864 ) 23,829 Non-compete and other 54,929 (46,389 ) 8,540 54,130 (32,708 ) 21,422 438,644 (178,257 ) 260,387 452,438 (146,992 ) 305,446 Indefinite-lived intangible assets: Brands, trademark and tradenames 337,287 — 337,287 335,457 — 335,457 Total intangible assets $ 775,931 $ (178,257 ) $ 597,674 $ 787,895 $ (146,992 ) $ 640,903 |
Schedule Of Expected Amortization Expense | The table below shows expected amortization expense for the next five years and thereafter for acquired intangible assets recorded as of December 30, 2017 : Year Amount (in thousands) 2018 $ 42,795 2019 32,358 2020 31,707 2021 31,066 2022 30,947 Thereafter 91,514 $ 260,387 |
Receivables, net (Tables)
Receivables, net (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Receivables [Abstract] | |
Schedule Of Accounts Receivable | Receivables, net consist of the following: (in thousands) December 30, December 31, Trade $ 389,963 $ 407,301 Vendor 220,510 239,770 Other 14,103 23,345 Total receivables 624,576 670,416 Less: Allowance for doubtful accounts (18,219 ) (29,164 ) Receivables, net $ 606,357 $ 641,252 |
Long-term Debt and Fair Value37
Long-term Debt and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | Long-term debt consists of the following: (in thousands) December 30, 2017 December 31, 2016 5.75% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $1,403 and $1,994 at December 30, 2017 and December 31, 2016) due May 1, 2020 $ 298,597 $ 298,006 4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $1,108 and $1,384 at December 30, 2017 and December 31, 2016) due January 15, 2022 298,892 298,616 4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $3,162 and $3,673 at December 30, 2017 and December 31, 2016) due December 1, 2023 446,838 446,327 Other 350 306 1,044,677 1,043,255 Less: Current portion of long-term debt (350 ) (306 ) Long-term debt, excluding current portion $ 1,044,327 $ 1,042,949 Fair value of long-term debt $ 1,109,000 $ 1,118,000 |
Schedule Of Maturities Of Long-term Debt | As of December 30, 2017 , the aggregate future annual maturities of long-term debt instruments are as follows: Year Amount (in thousands) 2018 $ 350 2019 — 2020 300,000 2021 — 2022 300,000 Thereafter 450,000 $ 1,050,350 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment consists of the following: (in thousands) December 30, December 31, Land and land improvements 0 - 10 years $ 451,261 $ 444,262 Buildings 30 - 40 years 478,235 471,740 Building and leasehold improvements 3 - 30 years 490,635 451,979 Furniture, fixtures and equipment 3 - 20 years 1,675,522 1,583,096 Vehicles 2 - 13 years 16,587 35,133 Construction in progress 65,281 120,778 3,177,521 3,106,988 Less - Accumulated depreciation (1,783,383 ) (1,660,648 ) Property and equipment, net $ 1,394,138 $ 1,446,340 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule Of Accrued Liabilities | Accrued expenses consist of the following: (in thousands) December 30, December 31, Payroll and related benefits $ 92,106 $ 97,496 Taxes payable 112,930 121,860 Self-insurance reserves 65,463 58,743 Warranty reserves 49,024 47,243 Capital expenditures 14,335 21,176 Other 199,690 207,879 Total accrued expenses $ 533,548 $ 554,397 |
Schedule Of Product Warranty Liability | The following table presents changes in the Company’s warranty reserves: Year Ended (in thousands) December 30, December 31, January 2, Warranty reserves, beginning of period $ 47,243 $ 44,479 $ 47,972 Additions to warranty reserves 50,895 46,903 44,367 Reserves utilized (49,114 ) (44,139 ) (47,860 ) Warranty reserves, end of period $ 49,024 $ 47,243 $ 44,479 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | The computation of basic and diluted earnings per share is as follows: Year Ended (in thousands, except per share data) December 30, December 31, January 2, Numerator Net income applicable to common shares $ 475,505 $ 459,622 $ 473,398 Denominator Basic weighted average common shares 73,846 73,562 73,190 Dilutive impact of share-based awards 264 294 543 Diluted weighted average common shares 74,110 73,856 73,733 Basic earnings per common share Net income applicable to common stockholders $ 6.44 $ 6.22 $ 6.45 Diluted earnings per common share Net income applicable to common stockholders $ 6.42 $ 6.20 $ 6.40 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision For Income Taxes, Current And Deferred | Provision for income taxes consists of the following: (in thousands) Current Deferred Total 2017 Federal $ 146,855 $ (146,741 ) $ 114 State 31,352 (3,437 ) 27,915 Foreign 17,810 (1,085 ) 16,725 $ 196,017 $ (151,263 ) $ 44,754 2016 Federal $ 209,499 $ 17,989 $ 227,488 State 29,345 1,366 30,711 Foreign 20,156 858 21,014 $ 259,000 $ 20,213 $ 279,213 2015 Federal $ 242,801 $ (6,564 ) $ 236,237 State 33,023 (1,797 ) 31,226 Foreign 12,885 (858 ) 12,027 $ 288,709 $ (9,219 ) $ 279,490 |
Schedule Of Effective Income Tax Rate Reconciliation | The provision for income taxes differed from the amount computed by applying the federal statutory income tax rate due to: Year Ended (in thousands) December 30, 2017 December 31, 2016 January 2, 2016 Income before provision for income taxes at statutory U.S. federal income tax rate (35%) $ 182,091 $ 258,592 $ 263,511 State income taxes, net of federal income tax benefit 18,145 19,962 20,297 Impact of the Act, net (143,756 ) — — Other, net (11,726 ) 659 (4,318 ) $ 44,754 $ 279,213 $ 279,490 |
Schedule Of Deferred Tax Assets and Liabilities | Temporary differences that give rise to significant deferred income tax assets (liabilities) are as follows: (in thousands) December 30, December 31, Deferred income tax assets: Accrued expenses not currently deductible for tax $ 38,200 $ 63,992 Share-based compensation 9,556 11,752 Accrued medical and workers compensation 33,697 46,116 Net operating loss carryforwards 6,701 5,093 Straight-line rent 21,733 31,631 Other, net 2,973 6,274 Total deferred income tax assets before valuation allowances 112,860 164,858 Less: Valuation allowance (3,778 ) (2,437 ) Total deferred income tax assets 109,082 162,421 Deferred income tax liabilities: Property and equipment (98,186 ) (168,906 ) Inventories (169,478 ) (222,301 ) Intangible assets (145,038 ) (225,496 ) Total deferred income tax liabilities (412,702 ) (616,703 ) Net deferred income tax liabilities $ (303,620 ) $ (454,282 ) |
Unrecognized Tax Benefits | The following table summarizes the activity of the Company’s gross unrecognized tax benefits: (in thousands) December 30, December 31, January 2, Unrecognized tax benefits, beginning of period $ 13,946 $ 13,841 $ 14,033 Increases related to prior period tax positions 8,077 8,274 412 Decreases related to prior period tax positions (2,331 ) (1,600 ) (2,120 ) Increases related to current period tax positions 5,644 2,105 3,137 Settlements (1,496 ) (6,894 ) (582 ) Expiration of statute of limitations (1,175 ) (1,780 ) (1,039 ) Unrecognized tax benefits, end of period $ 22,665 $ 13,946 $ 13,841 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Leases [Abstract] | |
Schedule Of Future Minimum Lease Payments For Operating Leases | As of December 30, 2017 , future minimum lease payments due under non-cancelable operating leases with lease terms extending through the year 2059 are as follows: Year Amount (in thousands) 2018 $ 484,427 2019 445,143 2020 401,686 2021 340,356 2022 279,734 Thereafter 1,008,507 $ 2,959,853 |
Schedule Of Rent Expense | The following table summarizes net rent expense: Year Ended (in thousands) December 30, 2017 December 31, 2016 January 2, 2016 Minimum facility rentals $ 483,178 $ 473,596 $ 471,364 Equipment rentals 24,786 26,897 24,860 Vehicle rentals 32,670 47,251 47,919 540,634 547,744 544,143 Less: Sub-lease income (7,144 ) (7,379 ) (7,569 ) $ 533,490 $ 540,365 $ 536,574 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Share-based Payment Award, Stock Appreciation Rights, Valuation Assumptions | The fair value of each SAR granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: Black-Scholes Option Valuation Assumptions 2016 2015 Risk-free interest rate (1) 1.2 % 1.3 % Expected dividend yield 0.2 % 0.1 % Expected stock price volatility (2) 27.7 % 27.3 % Expected life of awards (in months) (3) 55 44 (1) The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate having term consistent with the expected life of the award. (2) Expected volatility is determined using a blend of historical and implied volatility. (3) The expected life of the Company’s awards represents the estimated period of time until exercise and is based on historical experience of previously granted awards. As no SARs were granted in 2017, the Black-Scholes model was not utilized and no assumptions were created. For time-based and performance-based RSUs, the fair value of each award was determined based on the market price of the Company’s stock on the date of grant adjusted for expected dividends during the vesting period, as applicable. The fair value of each market-based RSU was determined using a Monte Carlo simulation model. The model uses multiple input variables that determined the probability of satisfying the market condition requirements as follows: Monte Carlo Model Assumptions 2017 Risk-free interest rate (1) 1.6 % Expected dividend yield 0.2 % Expected stock price volatility (2) 26.2 % (1) The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate having term consistent with the vesting period of the award. (2) Expected volatility is determined based on historical volatility over a matching look-back period and is consistent with the correlation coefficients between the stock prices of the Company and its peer group. Additionally, the Company estimated a liquidity discount of 9.29% using the Chaffe Protective Put Method to adjust the fair value for the post-vest restrictions. |
Time-vested Stock Appreciation Rights And Restricted Stock Units Activity | The following table summarizes activity for time-vested SARs and RSUs in 2017 : SARs RSUs (in thousands, except per share data) Number of Awards Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Number of Awards Weighted-Average Grant Date Fair Value Outstanding SARs / Nonvested RSUs at December 31, 2016 275 $ 93.89 211 $ 151.70 Granted — — 287 131.01 Exercised (157 ) 71.57 — — Vested — — (91 ) 149.26 Forfeited (5 ) 63.86 (61 ) 149.31 Outstanding SARs / Nonvested RSUs at December 30, 2017 113 $ 126.07 3.77 $ 1,222 346 $ 135.58 Vested and expected to vest 113 $ 126.07 3.77 $ — Outstanding and exercisable 45 $ 72.27 1.43 $ 1,222 |
Time-vested Stock Appreciation Rights And Restricted Stock Units Activity Additional Information | The following table summarizes certain information concerning activity for time-vested SARs, RSUs and restricted shares: Year Ended (in thousands, except per share data) December 30, December 31, January 2, SARs: Weighted average fair value of grants $ — $ 43.64 $ — Aggregate intrinsic value of SARs exercised $ 11,455 $ 31,450 $ 26,060 RSUs and restricted shares: Weighted average fair value of grants $ 131.01 $ 155.51 $ 153.61 Total grant date fair value of RSUs and restricted shares vested $ 13,578 $ 16,089 $ 15,268 |
Performance-based Stock Appreciation Rights And Restricted Stock Units Activity | The following table summarizes activity for performance-based SARs and RSUs in 2017 : SARs RSUs (in thousands, except per share data) Number of Awards Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Number of Awards Weighted-Average Grant Date Fair Value Outstanding SARs / Nonvested RSUs at December 31, 2016 114 $ 86.95 138 $ 162.71 Granted — — 53 146.42 Change in units based on performance 5 108.36 — — Exercised (81 ) 85.14 — — Vested — — (48 ) 162.02 Forfeited (9 ) 101.63 (18 ) 160.79 Outstanding SARs / Nonvested RSUs at December 30, 2017 29 $ 90.90 2.16 $ 423 125 $ 156.36 Vested and expected to vest 29 $ 90.90 2.16 $ — Outstanding and exercisable 29 $ 90.90 2.16 $ 423 |
Performance-based Stock Appreciation Rights And Restricted Stock Units Activity Additional Information | The following table summarizes certain information concerning activity for performance-based SARs and RSUs: Year Ended (in thousands, except per share data) December 30, December 31, January 2, SARs: Weighted average fair value of grants $ — $ 36.78 $ 43.38 Aggregate intrinsic value of SARs exercised $ 5,221 $ 11,556 $ 8,475 RSUs: Weighted average fair value of grants $ 146.42 $ 163.76 $ — Total grant date fair value of RSUs vested $ 7,823 $ 13,512 $ 1,763 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss, net of tax, consisted of the following: (in thousands) Unrealized Gain (Loss) Foreign Currency Translation Accumulated Balance, January 3, 2015 $ 2,931 $ (15,268 ) $ (12,337 ) 2015 activity (445 ) (31,277 ) (31,722 ) Balance, January 2, 2016 2,486 (46,545 ) (44,059 ) 2016 activity (534 ) 4,892 4,358 Balance, December 31, 2016 1,952 (41,653 ) (39,701 ) 2017 activity (194 ) 14,941 14,747 Balance, December 30, 2017 $ 1,758 $ (26,712 ) $ (24,954 ) |
Condensed Consolidating Finan45
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Balance Sheet | Condensed Consolidating Balance Sheet As of December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 23 $ 482,620 $ 64,317 $ (23 ) $ 546,937 Receivables, net — 567,460 38,897 — 606,357 Inventories — 3,986,724 181,768 — 4,168,492 Other current assets — 103,118 2,063 (75 ) 105,106 Total current assets 23 5,139,922 287,045 (98 ) 5,426,892 Property and equipment, net of accumulated depreciation 103 1,384,115 9,920 — 1,394,138 Goodwill — 943,359 50,934 — 994,293 Intangible assets, net — 551,781 45,893 — 597,674 Other assets, net 3,224 68,749 554 (3,223 ) 69,304 Investment in subsidiaries 3,521,330 448,462 — (3,969,792 ) — Intercompany note receivable 1,048,700 — — (1,048,700 ) — Due from intercompany, net — — 332,467 (332,467 ) — $ 4,573,380 $ 8,536,388 $ 726,813 $ (5,354,280 ) $ 8,482,301 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ — $ 2,657,792 $ 236,790 $ — $ 2,894,582 Accrued expenses 1,134 511,841 20,648 (75 ) 533,548 Other current liabilities — 50,963 1,027 (23 ) 51,967 Total current liabilities 1,134 3,220,596 258,465 (98 ) 3,480,097 Long-term debt 1,044,327 — — — 1,044,327 Deferred income taxes — 288,999 17,844 (3,223 ) 303,620 Other long-term liabilities — 237,019 2,042 — 239,061 Intercompany note payable — 1,048,700 — (1,048,700 ) — Due to intercompany, net 112,723 219,744 — (332,467 ) — Commitments and contingencies Stockholders' equity 3,415,196 3,521,330 448,462 (3,969,792 ) 3,415,196 $ 4,573,380 $ 8,536,388 $ 726,813 $ (5,354,280 ) $ 8,482,301 Condensed Consolidating Balance Sheet As of December 31, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 22 $ 78,543 $ 56,635 $ (22 ) $ 135,178 Receivables, net — 619,229 22,023 — 641,252 Inventories — 4,126,465 199,403 — 4,325,868 Other current assets — 69,385 1,153 (72 ) 70,466 Total current assets 22 4,893,622 279,214 (94 ) 5,172,764 Property and equipment, net of accumulated depreciation 128 1,436,459 9,753 — 1,446,340 Goodwill — 943,359 47,518 — 990,877 Intangible assets, net — 595,596 45,307 — 640,903 Other assets, net 4,634 63,376 773 (4,634 ) 64,149 Investment in subsidiaries 3,008,856 375,420 — (3,384,276 ) — Intercompany note receivable 1,048,424 — — (1,048,424 ) — Due from intercompany, net — — 316,109 (316,109 ) — $ 4,062,064 $ 8,307,832 $ 698,674 $ (4,753,537 ) $ 8,315,033 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ — $ 2,813,937 $ 272,240 $ — $ 3,086,177 Accrued expenses 1,505 526,652 26,312 (72 ) 554,397 Other current liabilities — 32,508 2,986 (22 ) 35,472 Total current liabilities 1,505 3,373,097 301,538 (94 ) 3,676,046 Long-term debt 1,042,949 — — — 1,042,949 Deferred income taxes — 439,283 19,633 (4,634 ) 454,282 Other long-term liabilities — 223,481 2,083 — 225,564 Intercompany note payable — 1,048,424 — (1,048,424 ) — Due to intercompany, net 101,418 214,691 — (316,109 ) — Commitments and contingencies Stockholders' equity 2,916,192 3,008,856 375,420 (3,384,276 ) 2,916,192 $ 4,062,064 $ 8,307,832 $ 698,674 $ (4,753,537 ) $ 8,315,033 |
Condensed Income Statement | Condensed Consolidating Statement of Operations For the Year Ended December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,034,790 $ 550,450 $ (211,456 ) $ 9,373,784 Cost of sales, including purchasing and warehousing costs — 5,107,063 393,128 (211,456 ) 5,288,735 Gross profit — 3,927,727 157,322 — 4,085,049 Selling, general and administrative expenses 30,478 3,453,406 82,155 (51,202 ) 3,514,837 Operating (loss) income (30,478 ) 474,321 75,167 51,202 570,212 Other, net: Interest (expense) income (52,305 ) (6,496 ) — — (58,801 ) Other income (expense), net 83,840 (17,729 ) (6,061 ) (51,202 ) 8,848 Total other, net 31,535 (24,225 ) (6,061 ) (51,202 ) (49,953 ) Income before provision for income taxes 1,057 450,096 69,106 — 520,259 Provision for income taxes 641 32,623 11,490 — 44,754 Income before equity in earnings of subsidiaries 416 417,473 57,616 — 475,505 Equity in earnings of subsidiaries 475,089 57,616 — (532,705 ) — Net income $ 475,505 $ 475,089 $ 57,616 $ (532,705 ) $ 475,505 Condensed Consolidating Statement of Operations For the Year Ended December 31, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,254,477 $ 556,747 $ (243,545 ) $ 9,567,679 Cost of sales, including purchasing and warehousing costs — 5,171,953 383,356 (243,545 ) 5,311,764 Gross profit — 4,082,524 173,391 — 4,255,915 Selling, general and administrative expenses 28,695 3,402,323 92,287 (54,988 ) 3,468,317 Operating (loss) income (28,695 ) 680,201 81,104 54,988 787,598 Other, net: Interest (expense) income (52,081 ) (7,897 ) 68 — (59,910 ) Other income (expense), net 81,683 (19,558 ) 4,010 (54,988 ) 11,147 Total other, net 29,602 (27,455 ) 4,078 (54,988 ) (48,763 ) Income before provision for income taxes 907 652,746 85,182 — 738,835 Provision for income taxes 1,588 260,155 17,470 — 279,213 (Loss) income before equity in earnings of subsidiaries (681 ) 392,591 67,712 — 459,622 Equity in earnings of subsidiaries 460,303 67,712 — (528,015 ) — Net income $ 459,622 $ 460,303 $ 67,712 $ (528,015 ) $ 459,622 Condensed Consolidating Statement of Operations For the Year Ended January 2, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,432,116 $ 593,606 $ (288,704 ) $ 9,737,018 Cost of sales, including purchasing and warehousing costs — 5,172,938 430,012 (288,704 ) 5,314,246 Gross profit — 4,259,178 163,594 — 4,422,772 Selling, general and administrative expenses 24,186 3,536,697 93,852 (57,743 ) 3,596,992 Operating (loss) income (24,186 ) 722,481 69,742 57,743 825,780 Other, net: Interest expense (52,210 ) (13,378 ) 180 — (65,408 ) Other income (expense), net 76,987 (19,699 ) (7,029 ) (57,743 ) (7,484 ) Total other, net 24,777 (33,077 ) (6,849 ) (57,743 ) (72,892 ) Income before provision for income taxes 591 689,404 62,893 — 752,888 Provision for income taxes 1,220 268,571 9,699 — 279,490 (Loss) income before equity in earnings of subsidiaries (629 ) 420,833 53,194 — 473,398 Equity in earnings of subsidiaries 474,027 53,194 — (527,221 ) — Net income $ 473,398 $ 474,027 $ 53,194 $ (527,221 ) $ 473,398 |
Condensed Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 475,505 $ 475,089 $ 57,616 $ (532,705 ) $ 475,505 Other comprehensive income: Changes in net unrecognized other postretirement benefit costs — (194 ) — — (194 ) Currency translation adjustments — — 14,941 — 14,941 Equity in other comprehensive income of subsidiaries 14,747 14,941 — (29,688 ) — Total other comprehensive income 14,747 14,747 14,941 (29,688 ) 14,747 Comprehensive income $ 490,252 $ 489,836 $ 72,557 $ (562,393 ) $ 490,252 Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 31, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 459,622 $ 460,303 $ 67,712 $ (528,015 ) $ 459,622 Other comprehensive income: Changes in net unrecognized other postretirement benefit costs — (534 ) — — (534 ) Currency translation adjustments — — 4,892 — 4,892 Equity in other comprehensive income of subsidiaries 4,358 4,892 — (9,250 ) — Total other comprehensive income 4,358 4,358 4,892 (9,250 ) 4,358 Comprehensive income $ 463,980 $ 464,661 $ 72,604 $ (537,265 ) $ 463,980 Condensed Consolidating Statement of Comprehensive Income For the Year Ended January 2, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 473,398 $ 474,027 $ 53,194 $ (527,221 ) $ 473,398 Other comprehensive loss: Changes in net unrecognized other postretirement benefit costs — (445 ) — — (445 ) Currency translation adjustments — — (31,277 ) — (31,277 ) Equity in other comprehensive loss of subsidiaries (31,722 ) (31,277 ) — 62,999 — Other comprehensive loss (31,722 ) (31,722 ) (31,277 ) 62,999 (31,722 ) Comprehensive income $ 441,676 $ 442,305 $ 21,917 $ (464,222 ) $ 441,676 |
Condensed Cash Flow Statement | Condensed Consolidating Statement of Cash Flows For the Year Ended December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 593,091 $ 7,714 $ — $ 600,805 Cash flows from investing activities: Purchases of property and equipment — (187,993 ) (1,765 ) — (189,758 ) Proceeds from sales of property and equipment — 11,085 14 — 11,099 Other, net — 480 (460 ) — 20 Net cash used in investing activities — (176,428 ) (2,211 ) — (178,639 ) Cash flows from financing activities: Increase (decrease) in bank overdrafts — 16,290 (2,286 ) — 14,004 Borrowings under credit facilities — 534,400 — — 534,400 Payments on credit facilities — (534,400 ) — — (534,400 ) Dividends paid — (17,854 ) — — (17,854 ) Proceeds from the issuance of common stock — 4,076 — — 4,076 Tax withholdings related to the exercise of stock appreciation rights — (6,531 ) — — (6,531 ) Repurchase of common stock — (6,498 ) — — (6,498 ) Other, net 1 (2,069 ) — (1 ) (2,069 ) Net cash provided by (used in) financing activities 1 (12,586 ) (2,286 ) (1 ) (14,872 ) Effect of exchange rate changes on cash — — 4,465 — 4,465 Net increase in cash and cash equivalents 1 404,077 7,682 (1 ) 411,759 Cash and cash equivalents , beginning of period 22 78,543 56,635 (22 ) 135,178 Cash and cash equivalents , end of period $ 23 $ 482,620 $ 64,317 $ (23 ) $ 546,937 Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 14 $ 491,180 $ 32,109 $ — $ 523,303 Cash flows from investing activities: Purchases of property and equipment — (257,159 ) (2,400 ) — (259,559 ) Proceeds from sales of property and equipment — 2,210 2 — 2,212 Other, net — (4,697 ) — — (4,697 ) Net cash used in investing activities — (259,646 ) (2,398 ) — (262,044 ) Cash flows from financing activities: Decrease in bank overdrafts — (4,902 ) (657 ) (14 ) (5,573 ) Borrowings under credit facilities — 799,600 — — 799,600 Payments on credit facilities — (959,600 ) — — (959,600 ) Dividends paid — (17,738 ) — — (17,738 ) Proceeds from the issuance of common stock — 4,532 — — 4,532 Tax withholdings related to the exercise of stock appreciation rights — (19,558 ) — — (19,558 ) Repurchase of common stock — (18,393 ) — — (18,393 ) Other, net — (390 ) — — (390 ) Net cash used in financing activities — (216,449 ) (657 ) (14 ) (217,120 ) Effect of exchange rate changes on cash — — 257 — 257 Net increase in cash and cash equivalents 14 15,085 29,311 (14 ) 44,396 Cash and cash equivalents , beginning of period 8 63,458 27,324 (8 ) 90,782 Cash and cash equivalents , end of period $ 22 $ 78,543 $ 56,635 $ (22 ) $ 135,178 Condensed Consolidating Statement of Cash Flows For the Year Ended January 2, 2016 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash (used in) provided by operating activities $ (1 ) $ 709,582 $ (6,937 ) $ — $ 702,644 Cash flows from investing activities: Purchases of property and equipment — (232,591 ) (2,156 ) — (234,747 ) Proceeds from sales of property and equipment — 266 4 — 270 Other, net — (18,583 ) (306 ) — (18,889 ) Net cash used in investing activities — (250,908 ) (2,458 ) — (253,366 ) Cash flows from financing activities: (Decrease) increase in bank overdrafts — (4,529 ) 1,606 1 (2,922 ) Borrowings under credit facilities — 618,300 — — 618,300 Payments on credit facilities — (1,041,700 ) — — (1,041,700 ) Dividends paid — (17,649 ) — — (17,649 ) Proceeds from the issuance of common stock — 5,174 — — 5,174 Tax withholdings related to the exercise of stock appreciation rights — (13,112 ) — — (13,112 ) Repurchase of common stock — (6,665 ) — — (6,665 ) Other, net — (380 ) — — (380 ) Net cash (used in) provided by financing activities — (460,561 ) 1,606 1 (458,954 ) Effect of exchange rate changes on cash — — (4,213 ) — (4,213 ) Net decrease in cash and cash equivalents (1 ) (1,887 ) (12,002 ) 1 (13,889 ) Cash and cash equivalents , beginning of period 9 65,345 39,326 (9 ) 104,671 Cash and cash equivalents , end of period $ 8 $ 63,458 $ 27,324 $ (8 ) $ 90,782 |
Quarterly Financial Data (una46
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table summarizes quarterly financial data for 2017 and 2016 : 2017 First Second Third Fourth (in thousands, except per share data) (16 weeks) (12 weeks) (12 weeks) (12 weeks) Net sales $ 2,890,838 $ 2,263,727 $ 2,182,233 $ 2,036,986 Gross profit $ 1,270,684 $ 993,088 $ 947,708 $ 873,569 Net income $ 107,960 $ 87,049 $ 95,996 $ 184,500 Basic earnings per common share $ 1.46 $ 1.18 $ 1.30 $ 2.50 Diluted earnings per common share $ 1.46 $ 1.17 $ 1.30 $ 2.49 2016 First Second Third Fourth (in thousands, except per share data) (16 weeks) (12 weeks) (12 weeks) (12 weeks) Net sales $ 2,979,778 $ 2,256,155 $ 2,248,855 $ 2,082,891 Gross profit $ 1,349,889 $ 1,010,257 $ 988,205 $ 907,564 Net income $ 158,813 $ 124,600 $ 113,844 $ 62,365 Basic earnings per common share $ 2.16 $ 1.69 $ 1.54 $ 0.84 Diluted earnings per common share $ 2.14 $ 1.68 $ 1.53 $ 0.84 Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not be equal to the per share amount for the year. |
Valuation and Qualifying Acco47
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Allowance for doubtful accounts receivable | Allowance for doubtful accounts receivable Balance at Beginning of Period Charges to Expenses Deductions Balance at End of Period January 2, 2016 $ 16,152 $ 22,067 $ (12,461 ) (1) $ 25,758 December 31, 2016 $ 25,758 $ 24,597 $ (21,191 ) (1) $ 29,164 December 30, 2017 $ 29,164 $ 20,110 $ (31,055 ) (1) $ 18,219 (1) Accounts written off during the period. These amounts did not impact the Company’s statement of operations for any year presented. |
Nature of Operations and Basi48
Nature of Operations and Basis of Presentation (Details) | Dec. 30, 2017store |
Stores [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Number of Stores | 5,054 |
Branches [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Number of Stores | 129 |
Independently-owned Carquest store locations [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Number of Stores | 1,218 |
Significant Accounting Polici49
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Summary of Significant Accounting Policies [Line Items] | |||
Deferred vendor incentives included in inventory | $ 179,200 | $ 211,100 | |
Percentage of sales by product group | 100.00% | 100.00% | 100.00% |
Advertising expense | $ 102,800 | $ 97,000 | $ 108,800 |
Cooperative advertising amount | 33,315 | 29,308 | 17,500 |
Losses from foreign currency transactions included in other income, net | 4,000 | 7,400 | |
Cumulative effect of accounting change | 292 | ||
Excess tax benefits | 2,300 | ||
Net cash provided by operating activities [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Cumulative effect of accounting change | $ 22,400 | $ 13,000 | |
Shareholders' Equity [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Cumulative effect of accounting change | $ 300 | ||
Parts and Batteries [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Percentage of sales by product group | 65.00% | 66.00% | 66.00% |
Accessories and Chemicals [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Percentage of sales by product group | 20.00% | 19.00% | 19.00% |
Engine Maintenance [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Percentage of sales by product group | 14.00% | 14.00% | 14.00% |
Other [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Percentage of sales by product group | 1.00% | 1.00% | 1.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Inventory, Net [Abstract] | |||
Percentage of LIFO Inventory | 88.00% | 89.00% | |
Inventory, LIFO Reserve, Effect on Income, Net | $ (2,700) | $ 40,700 | $ 42,300 |
Purchasing and Warehousing costs included in inventory | 429,759 | 395,200 | |
LIFO Method Related Items [Abstract] | |||
Inventories at FIFO, net | 3,965,370 | 4,120,030 | |
Adjustments to state inventories at LIFO | 203,122 | 205,838 | |
Inventories at LIFO, net | $ 4,168,492 | $ 4,325,868 |
Exit Activities and Other Ini51
Exit Activities and Other Initiatives (Details) $ in Thousands | 4 Months Ended | 12 Months Ended | ||
Apr. 21, 2018USD ($) | Dec. 30, 2017USD ($)store | Dec. 31, 2016USD ($)store | Jan. 02, 2016USD ($) | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning of period | $ 33,215 | $ 45,224 | $ 48,745 | |
Reserves established | 15,867 | 24,240 | ||
Change in estimates | (1,815) | (3,483) | ||
Cash payments | (26,061) | (24,278) | ||
Restructuring Reserve, end of period | $ 33,215 | $ 45,224 | $ 48,745 | |
Carquest consolidations completed [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of Stores | store | 346 | |||
Carquest conversions completed [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of Stores | store | 422 | |||
Carquest consolidations completed during the current year [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of Stores | store | 13 | 156 | ||
Carquest conversions completed this fiscal year [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of Stores | store | 140 | 123 | ||
Carquest conversions or consolidations to be completed [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of Stores | store | 437 | |||
Carquest conversions or consolidations to be completed [Member] | CANADA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of Stores | store | 138 | |||
Closed Store Lease Obligations [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning of period | 31,570 | $ 44,265 | $ 42,490 | |
Reserves established | 7,940 | 23,252 | ||
Change in estimates | (1,116) | (3,073) | ||
Cash payments | (19,519) | (18,404) | ||
Restructuring Reserve, end of period | 31,570 | 44,265 | 42,490 | |
Closed Store Lease Obligations [Member] | Carquest consolidations completed during the current year [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 1,000 | 18,900 | 7,300 | |
Severance [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning of period | 1,645 | 959 | 6,255 | |
Reserves established | 7,927 | 988 | ||
Change in estimates | (699) | (410) | ||
Cash payments | (6,542) | (5,874) | ||
Restructuring Reserve, end of period | 1,645 | $ 959 | $ 6,255 | |
Severance [Member] | Field and support center restructuring [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Reserves established | 7,900 | |||
Impairment [Member] | StoreAndSupplyChainRationalization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 6,900 | |||
Other Noncurrent Liabilities [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning of period | 19,800 | |||
Restructuring Reserve, end of period | $ 19,800 | |||
Scenario, Forecast [Member] | StoreAndSupplyChainRationalization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 70,000 | |||
Scenario, Forecast [Member] | Closed Store Lease Obligations [Member] | StoreAndSupplyChainRationalization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 35,000 | |||
Scenario, Forecast [Member] | Severance [Member] | StoreAndSupplyChainRationalization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 5,000 | |||
Scenario, Forecast [Member] | Impairment [Member] | StoreAndSupplyChainRationalization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 15,000 | |||
Scenario, Forecast [Member] | Other facility closure costs [Member] | StoreAndSupplyChainRationalization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | $ 15,000 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Retirement of fully amortized intangible assets | $ 16,100 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 990,877 | |
Goodwill, changes in foreign currency exchange rates | 3,400 | $ 1,400 |
Goodwill, end of period | 994,293 | 990,877 |
Finite-lived intangible assets expected amortization expense | ||
2,018 | 42,795 | |
2,019 | 32,358 | |
2,020 | 31,707 | |
2,021 | 31,066 | |
2,022 | 30,947 | |
Thereafter | 91,514 | |
Finite-Lived Intangible Assets, net | $ 260,387 | $ 305,446 |
Intangible Assets Other Than Go
Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Expense | $ 47,400 | $ 48,000 | $ 53,100 |
Gross Carrying Amount | 438,644 | 452,438 | |
Accumulated Amortization | (178,257) | (146,992) | |
Net | 260,387 | 305,446 | |
Brands, trademark and tradenames | 337,287 | 335,457 | |
Intangible Assets, Gross (Excluding Goodwill) | 775,931 | 787,895 | |
Intangible Assets, Net (Excluding Goodwill) | 597,674 | 640,903 | |
Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 351,203 | 349,615 | |
Accumulated Amortization | (116,909) | (89,420) | |
Net | 234,294 | 260,195 | |
Favorable leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 32,512 | 48,693 | |
Accumulated Amortization | (14,959) | (24,864) | |
Net | 17,553 | 23,829 | |
Non-Compete and Other [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 54,929 | 54,130 | |
Accumulated Amortization | (46,389) | (32,708) | |
Net | 8,540 | 21,422 | |
Trademarks [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ 0 | $ 0 |
Receivables, net (Details)
Receivables, net (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 624,576 | $ 670,416 |
Less: Allowance for doubtful accounts | (18,219) | (29,164) |
Receivables, net | 606,357 | 641,252 |
Trade [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 389,963 | 407,301 |
Vendor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 220,510 | 239,770 |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 14,103 | $ 23,345 |
Long-term Debt and Fair Value55
Long-term Debt and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 03, 2013 | Jan. 11, 2012 | Apr. 26, 2010 |
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | $ 1,044,677 | $ 1,043,255 | ||||
Long-term Debt, Current Maturities | (350) | (306) | ||||
Long-term Debt, Excluding Current Maturities | 1,044,327 | 1,042,949 | ||||
Letters of Credit Outstanding, Amount | 111,700 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 517,600 | |||||
Debt Instrument, Redemption, Description | The Company may redeem some or all of the Notes at any time or from time to time, at the redemption price described in the Indenture. In addition, in the event of a Change of Control Triggering Event (as defined in the Indenture for the Notes), the Company will be required to offer to repurchase the Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase date. The Notes are currently fully and unconditionally guaranteed, jointly and severally, on an unsubordinated and unsecured basis by each of the subsidiary guarantors. The Company will be permitted to release guarantees without the consent of holders of the Notes under the circumstances described in the Indenture: (i) upon the release of the guarantee of the Company’s other debt that resulted in the affected subsidiary becoming a guarantor of this debt; (ii) upon the sale or other disposition of all or substantially all of the stock or assets of the subsidiary guarantor; or (iii) upon the Company’s exercise of its legal or covenant defeasance option. | |||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 24,800 | |||||
Guarantor Obligations, Collateral Held | $ 62,800 | |||||
Indenture provisions for events of default | The Indenture contains customary provisions for events of default including for: (i) failure to pay principal or interest when due and payable; (ii) failure to comply with covenants or agreements in the Indenture or the Notes and failure to cure or obtain a waiver of such default upon notice; (iii) a default under any debt for money borrowed by the Company or any of its subsidiaries that results in acceleration of the maturity of such debt, or failure to pay any such debt within any applicable grace period after final stated maturity, in an aggregate amount greater than $25.0 million without such debt having been discharged or acceleration having been rescinded or annulled within 10 days after receipt by the Company of notice of the default by the Trustee or holders of not less than 25% in aggregate principal amount of the Notes then outstanding; and (iv) events of bankruptcy, insolvency or reorganization affecting the Company and certain of its subsidiaries. In the case of an event of default, the principal amount of the Notes plus accrued and unpaid interest may be accelerated. The Indenture also contains covenants limiting the ability of the Company and its subsidiaries to incur debt secured by liens and to enter into sale and lease-back transactions. | |||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||
2,018 | $ 350 | |||||
2,019 | 0 | |||||
2,020 | 300,000 | |||||
2,021 | 0 | |||||
2,022 | 300,000 | |||||
Thereafter | 450,000 | |||||
Long-term Debt, Gross | 1,050,350 | |||||
Fair value of long-term debt | 1,109,000 | 1,118,000 | ||||
5.75% senior unsecured notes (2020 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 300,000 | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 1,403 | 1,994 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |||||
Debt Issuance, Percentage Of Principal | 99.587% | |||||
4.50% senior unsecured notes (2022 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 300,000 | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 1,108 | 1,384 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||
Debt Issuance, Percentage Of Principal | 99.968% | |||||
4.50% senior unsecured notes (2023 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 450,000 | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 3,162 | 3,673 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||
Debt Issuance, Percentage Of Principal | 99.69% | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | $ 0 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | |||||
Line of credit facility increase increment limit | $ 250,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 2.05% | |||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.10% | |||||
Revolving Credit Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.10% | |||||
Revolving Credit Facility [Member] | letters of credit sublimit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000 | |||||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.69% | |||||
Senior Notes [Member] | 5.75% senior unsecured notes (2020 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | $ 298,597 | 298,006 | ||||
Senior Notes [Member] | 4.50% senior unsecured notes (2022 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | 298,892 | 298,616 | ||||
Senior Notes [Member] | 4.50% senior unsecured notes (2023 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | 446,838 | 446,327 | ||||
Notes Payable, Other Payables [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | $ 350 | $ 306 | ||||
2013 Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.15% | |||||
Minimum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.91% | |||||
Minimum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||||
Maximum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||
Maximum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 3,177,521 | $ 3,106,988 | |
Accumulated Depreciation | (1,783,383) | (1,660,648) | |
Property and Equipment, Net | 1,394,138 | 1,446,340 | |
Depreciation | 206,937 | 215,981 | $ 223,728 |
Capitalized software development costs | 11,226 | 13,035 | 13,529 |
Impairment of Long-Lived Assets to be Disposed of | $ 13,278 | 2,759 | $ 11,017 |
Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | three to ten years | ||
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 0 - 10 years | ||
Property and Equipment, Gross | $ 451,261 | 444,262 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 30 - 40 years | ||
Property and Equipment, Gross | $ 478,235 | 471,740 | |
Building and Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 3 - 30 years | ||
Property and Equipment, Gross | $ 490,635 | 451,979 | |
Furniture, Fixtures and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 3 - 20 years | ||
Property and Equipment, Gross | $ 1,675,522 | 1,583,096 | |
Vehicle rentals [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 2 - 13 years | ||
Property and Equipment, Gross | $ 16,587 | 35,133 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 65,281 | $ 120,778 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |||||
Payroll and related benefits | $ 92,106 | $ 97,496 | |||
Taxes payable | 112,930 | 121,860 | |||
Self-insurance reserves | 65,463 | 58,743 | |||
Warranty reserves | $ 47,243 | $ 44,479 | $ 47,972 | 49,024 | 47,243 |
Capital expenditures | 14,335 | 21,176 | |||
Other | 199,690 | 207,879 | |||
Total accrued expenses | $ 533,548 | $ 554,397 | |||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||||
Warranty reserves, beginning of period | 47,243 | 44,479 | 47,972 | ||
Additions to warranty reserves | 50,895 | 46,903 | 44,367 | ||
Reserves utilized | (49,114) | (44,139) | (47,860) | ||
Warranty reserves, end of period | $ 49,024 | $ 47,243 | $ 44,479 |
Stock Repurchases (Details)
Stock Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Class of Stock [Line Items] | |||
Treasury Stock, Value, Acquired, Cost Method | $ 6,498 | $ 18,393 | $ 6,665 |
Stock Repurchase Plan (current year shares) [Member] | |||
Class of Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 500,000 | ||
Treasury Stock, Shares, Acquired | 0 | 0 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 415,100 | ||
Net Settlement of Shares Issued as a Result of the Vesting of Restricted Stock [Member] | |||
Class of Stock [Line Items] | |||
Treasury Stock, Shares, Acquired | 57 | 116 | |
Treasury Stock, Value, Acquired, Cost Method | $ 6,500 | $ 18,400 | |
Treasury Stock Acquired, Average Cost Per Share | $ 114.23 | $ 158.84 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 30, 2017 | Oct. 07, 2017 | Jul. 15, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 22, 2017 | Apr. 23, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 184,500 | $ 95,996 | $ 87,049 | $ 62,365 | $ 113,844 | $ 124,600 | $ 107,960 | $ 158,813 | $ 475,505 | $ 459,622 | $ 473,398 |
Basic weighted average common shares | 73,846 | 73,562 | 73,190 | ||||||||
Dilutive impact of share-based awards | 264 | 294 | 543 | ||||||||
Diluted weighted average common shares | 74,110 | 73,856 | 73,733 | ||||||||
Basic earnings per common share, Net income applicable to common stockholders | $ 2.50 | $ 1.30 | $ 1.18 | $ 0.84 | $ 1.54 | $ 1.69 | $ 1.46 | $ 2.16 | $ 6.44 | $ 6.22 | $ 6.45 |
Diluted earnings per common share, Net income applicable to common stockholders | $ 2.49 | $ 1.30 | $ 1.17 | $ 0.84 | $ 1.53 | $ 1.68 | $ 1.46 | $ 2.14 | $ 6.42 | $ 6.20 | $ 6.40 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Income Taxes [Line Items] | |||
Income tax benefit from Tax Cuts and Jobs Act of 2017 remeasurement of deferred tax asset liability | $ 155,100 | ||
Income tax expense from Tax Cuts And Jobs Act Of 2017 transition tax for accumulated foreign earnings | 11,300 | ||
Federal: | |||
Current Federal Tax Expense (Benefit) | 146,855 | $ 209,499 | $ 242,801 |
Deferred Federal Income Tax Expense (Benefit) | (146,741) | 17,989 | (6,564) |
Federal Income Tax Expense (Benefit), Continuing Operations | 114 | 227,488 | 236,237 |
State: | |||
Current State and Local Tax Expense (Benefit) | 31,352 | 29,345 | 33,023 |
Deferred State and Local Income Tax Expense (Benefit) | (3,437) | 1,366 | (1,797) |
State and Local Income Tax Expense (Benefit), Continuing Operations | 27,915 | 30,711 | 31,226 |
Foreign: | |||
Current Foreign Tax Expense (Benefit) | 17,810 | 20,156 | 12,885 |
Deferred Foreign Income Tax Expense (Benefit) | (1,085) | 858 | (858) |
Foreign Income Tax Expense (Benefit), Continuing Operations | 16,725 | 21,014 | 12,027 |
Current Income Tax Expense (Benefit) | 196,017 | 259,000 | 288,709 |
Deferred income tax benefit | (151,263) | 20,213 | (9,219) |
Income Tax Expense (Benefit) | 44,754 | 279,213 | 279,490 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income before provision for income taxes at statutory US federal income tax rate (35%) | 182,091 | 258,592 | 263,511 |
State income taxes, net of federal income tax benefit | 18,145 | 19,962 | 20,297 |
Impact of the Act, net | (143,756) | 0 | 0 |
Other, net | (11,726) | 659 | (4,318) |
Income Tax Expense (Benefit) | 44,754 | 279,213 | 279,490 |
Deferred income tax assets: | |||
Accrued expenses not currently deductible for tax | 38,200 | 63,992 | |
Share-based compensation | 9,556 | 11,752 | |
Accrued medical and workers compensation | 33,697 | 46,116 | |
Net operating loss carryforwards | 6,701 | 5,093 | |
Straight-line rent | 21,733 | 31,631 | |
Other, net | 2,973 | 6,274 | |
Total deferred income tax assets before valuation allowances | 112,860 | 164,858 | |
Less: Valuation allowance | (3,778) | (2,437) | |
Total deferred income tax assets | 109,082 | 162,421 | |
Deferred income tax liabilities: | |||
Property and equipment | (98,186) | (168,906) | |
Inventories | (169,478) | (222,301) | |
Intangible assets | (145,038) | (225,496) | |
Total deferred income tax liabilities | (412,702) | (616,703) | |
Net deferred income tax liabilities | (303,620) | (454,282) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of period | 13,946 | 13,841 | 14,033 |
Increases related to prior period tax positions | 8,077 | 8,274 | 412 |
Decreases related to prior period tax positions | (2,331) | (1,600) | (2,120) |
Increases related to current period tax positions | 5,644 | 2,105 | 3,137 |
Settlements | (1,496) | (6,894) | (582) |
Expiration of statute of limitations | (1,175) | (1,780) | (1,039) |
Unrecognized tax benefits, end of period | 22,665 | 13,946 | 13,841 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1,700 | 1,900 | $ 100 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 4,200 | 2,700 | |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 100 | 200 | |
State and Local Jurisdiction [Member] | |||
Deferred income tax liabilities: | |||
Operating Loss Carryforwards | $ 177,800 | $ 153,000 |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Operating Leased Assets [Line Items] | |||
Lessor, Operating Lease, Renewal Term | 5 years | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity | |||
2,018 | $ 484,427 | ||
2,019 | 445,143 | ||
2,020 | 401,686 | ||
2,021 | 340,356 | ||
2,022 | 279,734 | ||
Thereafter | 1,008,507 | ||
Operating Leases, Future Minimum Payments Due | 2,959,853 | ||
Gross rent expense for operating leases | 540,634 | $ 547,744 | $ 544,143 |
Less: Sub-lease income | (7,144) | (7,379) | (7,569) |
Net rent expense for operating leases | 533,490 | 540,365 | 536,574 |
Minimum facility rentals [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity | |||
Minimum rentals | 483,178 | 473,596 | 471,364 |
Equipment rentals [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity | |||
Minimum rentals | 24,786 | 26,897 | 24,860 |
Vehicle rentals [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity | |||
Minimum rentals | $ 32,670 | $ 47,251 | $ 47,919 |
Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lessor, Operating Lease, Term of Contract | 10 years | ||
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lessor, Operating Lease, Term of Contract | 15 years |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Postemployment Benefits [Abstract] | |||
Company contributions to defined contribution benefit plan | $ 14.2 | $ 13.9 | $ 14.6 |
Deferred compensation plan liability | $ 16.8 | $ 17.3 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Available for Grant | 4,961 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate (1) | 1.20% | 1.30% | |
Expected dividend yield | 0.20% | 0.10% | |
Expected stock price volatility (2) | 27.70% | 27.30% | |
Expected life of awards (in months) (3) | 55 months | 44 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Closing share price for calculation of aggregate intrinsic value | $ 99.69 | ||
Share-based compensation expense | $ 35,267 | $ 20,452 | $ 36,929 |
Deferred income tax benefit | 15,300 | $ 7,500 | 13,600 |
Unrecognized compensation expense | $ 44,300 | ||
Weighted average period unrecognized compensation expense expected to be recognized | 1 year 9 months 22 days | ||
Incremental compensation cost from plan modification | 6,600 | ||
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning of period | 275 | ||
Outstanding, Weighted Average Exercise Price, beginning of period | $ 93.89 | ||
Granted | 0 | ||
Granted, Weighted Average Exercise Price | $ 0 | ||
Granted, Weighted Average Grant Date Fair Value | $ 43.64 | ||
Exercised | (157) | ||
Exercised, Weighted Average Exercise Price | $ 71.57 | ||
Forfeited | (5) | ||
Forfeited, Weighted Average Exercise Price | $ 63.86 | ||
Outstanding, end of period | 113 | 275 | |
Outstanding, Weighted Average Exercise Price, end of period | $ 126.07 | $ 93.89 | |
Outstanding, Weighted Average Remaining Contractual Term | 3 years 9 months 9 days | ||
Outstanding, Aggregate intrinsic value | $ 1,222 | ||
Vested and expected to vest, Number | 113 | ||
Vested and expected to vest, Weighted average exercise price | $ 126.07 | ||
Vested and expected to vest, Weighted average remaining contractual term | 3 years 9 months 9 days | ||
Vested and expected to vest, Aggregate intrinsic value | $ 0 | ||
Outstanding and Exercisable, Number | 45 | ||
Outstanding and Exercisable, Weighted Average Exercise Price | $ 72.27 | ||
Outstanding and Exercisable, Weighted Average Remaining Contractual Term | 1 year 5 months 5 days | ||
Outstanding and Exercisable, Intrinsic Value | $ 1,222 | ||
Total intrinsic value of exercises during period | $ 11,455 | $ 31,450 | $ 26,060 |
Restricted Stock and Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate (1) | 1.60% | ||
Expected dividend yield | 0.20% | ||
Expected stock price volatility (2) | 26.20% | ||
Liquidity discount for post-vest restrictions | 9.29% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning of period | 211 | ||
Granted | 287 | ||
Granted, Weighted Average Grant Date Fair Value | $ 131.01 | $ 155.51 | $ 153.61 |
Vested | (91) | ||
Vested, Weighted Average Exercise Price | $ 149.26 | ||
Forfeited | (61) | ||
Forfeited, Weighted Average Grant Date Fair Value | $ 149.31 | ||
Nonvested, end of period | 346 | 211 | |
Nonvested, Weighted Average Grant Date Fair Value | $ 135.58 | $ 151.70 | |
Total grant date fair value of vested | $ 13,578 | $ 16,089 | $ 15,268 |
Performance-based Stock Appreciation Rights (SARs) Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning of period | 114 | ||
Outstanding, Weighted Average Exercise Price, beginning of period | $ 86.95 | ||
Granted | 0 | ||
Granted, Weighted Average Exercise Price | $ 0 | ||
Granted, Weighted Average Grant Date Fair Value | $ 0 | $ 36.78 | $ 43.38 |
Change in Units Based on Performance | 5 | ||
Change in Units Based on Performance, Weighted Average Exercise Price | $ 108.36 | ||
Exercised | (81) | ||
Exercised, Weighted Average Exercise Price | $ 85.14 | ||
Forfeited | (9) | ||
Forfeited, Weighted Average Exercise Price | $ 101.63 | ||
Outstanding, end of period | 29 | 114 | |
Outstanding, Weighted Average Exercise Price, end of period | $ 90.90 | $ 86.95 | |
Outstanding, Weighted Average Remaining Contractual Term | 2 years 1 month 28 days | ||
Outstanding, Aggregate intrinsic value | $ 423 | ||
Vested and expected to vest, Number | 29 | ||
Vested and expected to vest, Weighted average exercise price | $ 90.90 | ||
Vested and expected to vest, Weighted average remaining contractual term | 2 years 1 month 28 days | ||
Vested and expected to vest, Aggregate intrinsic value | $ 0 | ||
Outstanding and Exercisable, Number | 29 | ||
Outstanding and Exercisable, Weighted Average Exercise Price | $ 90.90 | ||
Outstanding and Exercisable, Weighted Average Remaining Contractual Term | 2 years 1 month 28 days | ||
Outstanding and Exercisable, Intrinsic Value | $ 423 | ||
Total intrinsic value of exercises during period | $ 5,221 | $ 11,556 | $ 8,475 |
Maximum potential payout of outstanding awards for Equity Instruments Other than Options | 663 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning of period | 138 | ||
Outstanding, Weighted Average Exercise Price, beginning of period | $ 162.71 | ||
Granted | 53 | ||
Granted, Weighted Average Grant Date Fair Value | $ 146.42 | $ 163.76 | $ 0 |
Vested | (48) | ||
Vested, Weighted Average Exercise Price | $ 162.02 | ||
Forfeited | (18) | ||
Forfeited, Weighted Average Exercise Price | $ 160.79 | ||
Outstanding, end of period | 125 | 138 | |
Outstanding, Weighted Average Exercise Price, end of period | $ 156.36 | $ 162.71 | |
Share-based compensation expense | $ 13,591 | $ 802 | $ 14,659 |
Maximum potential payout of outstanding awards for Equity Instruments Other than Options | 173 | ||
Total grant date fair value of vested | $ 7,823 | $ 13,512 | $ 1,763 |
Deferred Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted | 12 | ||
Granted, Weighted Average Grant Date Fair Value | $ 125.34 | $ 146.30 | $ 156.83 |
Share-based compensation expense | $ 1,471 | $ 896 | $ 2,071 |
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Available for Grant | 1,005 | ||
Market-based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted | 27 | ||
Granted, Weighted Average Grant Date Fair Value | $ 139.33 | ||
Forfeited | (3) | ||
Forfeited, Weighted Average Grant Date Fair Value | $ 145.83 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, Beginning of Period | $ (39,701) | $ (44,059) | $ (12,337) |
Activity | 14,747 | 4,358 | (31,722) |
Balance, End of Period | (24,954) | (39,701) | (44,059) |
Unrealized Gain (Loss) on Postretirement Plan [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, Beginning of Period | 1,952 | 2,486 | 2,931 |
Activity | (194) | (534) | (445) |
Balance, End of Period | 1,758 | 1,952 | 2,486 |
Foreign Currency Translation [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, Beginning of Period | (41,653) | (46,545) | (15,268) |
Activity | 14,941 | 4,892 | (31,277) |
Balance, End of Period | $ (26,712) | $ (41,653) | $ (46,545) |
Condensed Consolidating Finan65
Condensed Consolidating Financial Statements Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 546,937 | $ 135,178 | $ 90,782 | $ 104,671 |
Receivables, net | 606,357 | 641,252 | ||
Inventories | 4,168,492 | 4,325,868 | ||
Other current assets | 105,106 | 70,466 | ||
Total current assets | 5,426,892 | 5,172,764 | ||
Property and equipment, net of accumulated depreciation | 1,394,138 | 1,446,340 | ||
Goodwill | 994,293 | 990,877 | ||
Intangible assets, net | 597,674 | 640,903 | ||
Other assets, net | 69,304 | 64,149 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany note receivable | 0 | 0 | ||
Due from intercompany, net | 0 | 0 | ||
Assets, Total | 8,482,301 | 8,315,033 | ||
Current liabilities: | ||||
Accounts payable | 2,894,582 | 3,086,177 | ||
Accrued expenses | 533,548 | 554,397 | ||
Other current liabilities | 51,967 | 35,472 | ||
Total current liabilities | 3,480,097 | 3,676,046 | ||
Long-term debt | 1,044,327 | 1,042,949 | ||
Deferred income taxes | 303,620 | 454,282 | ||
Other long-term liabilities | 239,061 | 225,564 | ||
Intercompany note payable | 0 | 0 | ||
Due to intercompany, net | 0 | 0 | ||
Commitments and Contingencies | ||||
Stockholders' equity | 3,415,196 | 2,916,192 | 2,460,648 | 2,002,912 |
Liabilities and Stockholders' Equity, Total | 8,482,301 | 8,315,033 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 23 | 22 | 8 | 9 |
Receivables, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 23 | 22 | ||
Property and equipment, net of accumulated depreciation | 103 | 128 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets, net | 3,224 | 4,634 | ||
Investment in subsidiaries | 3,521,330 | 3,008,856 | ||
Intercompany note receivable | 1,048,700 | 1,048,424 | ||
Due from intercompany, net | 0 | 0 | ||
Assets, Total | 4,573,380 | 4,062,064 | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Accrued expenses | 1,134 | 1,505 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 1,134 | 1,505 | ||
Long-term debt | 1,044,327 | 1,042,949 | ||
Deferred income taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Intercompany note payable | 0 | 0 | ||
Due to intercompany, net | 112,723 | 101,418 | ||
Commitments and Contingencies | ||||
Stockholders' equity | 3,415,196 | 2,916,192 | ||
Liabilities and Stockholders' Equity, Total | 4,573,380 | 4,062,064 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 482,620 | 78,543 | 63,458 | 65,345 |
Receivables, net | 567,460 | 619,229 | ||
Inventories | 3,986,724 | 4,126,465 | ||
Other current assets | 103,118 | 69,385 | ||
Total current assets | 5,139,922 | 4,893,622 | ||
Property and equipment, net of accumulated depreciation | 1,384,115 | 1,436,459 | ||
Goodwill | 943,359 | 943,359 | ||
Intangible assets, net | 551,781 | 595,596 | ||
Other assets, net | 68,749 | 63,376 | ||
Investment in subsidiaries | 448,462 | 375,420 | ||
Intercompany note receivable | 0 | 0 | ||
Due from intercompany, net | 0 | 0 | ||
Assets, Total | 8,536,388 | 8,307,832 | ||
Current liabilities: | ||||
Accounts payable | 2,657,792 | 2,813,937 | ||
Accrued expenses | 511,841 | 526,652 | ||
Other current liabilities | 50,963 | 32,508 | ||
Total current liabilities | 3,220,596 | 3,373,097 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 288,999 | 439,283 | ||
Other long-term liabilities | 237,019 | 223,481 | ||
Intercompany note payable | 1,048,700 | 1,048,424 | ||
Due to intercompany, net | 219,744 | 214,691 | ||
Commitments and Contingencies | ||||
Stockholders' equity | 3,521,330 | 3,008,856 | ||
Liabilities and Stockholders' Equity, Total | 8,536,388 | 8,307,832 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 64,317 | 56,635 | 27,324 | 39,326 |
Receivables, net | 38,897 | 22,023 | ||
Inventories | 181,768 | 199,403 | ||
Other current assets | 2,063 | 1,153 | ||
Total current assets | 287,045 | 279,214 | ||
Property and equipment, net of accumulated depreciation | 9,920 | 9,753 | ||
Goodwill | 50,934 | 47,518 | ||
Intangible assets, net | 45,893 | 45,307 | ||
Other assets, net | 554 | 773 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany note receivable | 0 | 0 | ||
Due from intercompany, net | 332,467 | 316,109 | ||
Assets, Total | 726,813 | 698,674 | ||
Current liabilities: | ||||
Accounts payable | 236,790 | 272,240 | ||
Accrued expenses | 20,648 | 26,312 | ||
Other current liabilities | 1,027 | 2,986 | ||
Total current liabilities | 258,465 | 301,538 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 17,844 | 19,633 | ||
Other long-term liabilities | 2,042 | 2,083 | ||
Intercompany note payable | 0 | 0 | ||
Due to intercompany, net | 0 | 0 | ||
Commitments and Contingencies | ||||
Stockholders' equity | 448,462 | 375,420 | ||
Liabilities and Stockholders' Equity, Total | 726,813 | 698,674 | ||
Consolidation, Eliminations [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | (23) | (22) | $ (8) | $ (9) |
Receivables, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | (75) | (72) | ||
Total current assets | (98) | (94) | ||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets, net | (3,223) | (4,634) | ||
Investment in subsidiaries | (3,969,792) | (3,384,276) | ||
Intercompany note receivable | (1,048,700) | (1,048,424) | ||
Due from intercompany, net | (332,467) | (316,109) | ||
Assets, Total | (5,354,280) | (4,753,537) | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Accrued expenses | (75) | (72) | ||
Other current liabilities | (23) | (22) | ||
Total current liabilities | (98) | (94) | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | (3,223) | (4,634) | ||
Other long-term liabilities | 0 | 0 | ||
Intercompany note payable | (1,048,700) | (1,048,424) | ||
Due to intercompany, net | (332,467) | (316,109) | ||
Commitments and Contingencies | ||||
Stockholders' equity | (3,969,792) | (3,384,276) | ||
Liabilities and Stockholders' Equity, Total | $ (5,354,280) | $ (4,753,537) |
Condensed Consolidating Finan66
Condensed Consolidating Financial Statements Condensed Consolidating Income Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 30, 2017 | Oct. 07, 2017 | Jul. 15, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 22, 2017 | Apr. 23, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | $ 2,036,986 | $ 2,182,233 | $ 2,263,727 | $ 2,082,891 | $ 2,248,855 | $ 2,256,155 | $ 2,890,838 | $ 2,979,778 | $ 9,373,784 | $ 9,567,679 | $ 9,737,018 |
Cost of sales, including purchasing and warehousing costs | 5,288,735 | 5,311,764 | 5,314,246 | ||||||||
Gross Profit | 873,569 | 947,708 | 993,088 | 907,564 | 988,205 | 1,010,257 | 1,270,684 | 1,349,889 | 4,085,049 | 4,255,915 | 4,422,772 |
Selling, general and administrative expenses | 3,514,837 | 3,468,317 | 3,596,992 | ||||||||
Operating Income (Loss) | 570,212 | 787,598 | 825,780 | ||||||||
Other, net: | |||||||||||
Interest income (expense) | (58,801) | (59,910) | (65,408) | ||||||||
Other income (expense), net | 8,848 | 11,147 | (7,484) | ||||||||
Total other, net | (49,953) | (48,763) | (72,892) | ||||||||
Income before provision for income taxes | 520,259 | 738,835 | 752,888 | ||||||||
Provision for income taxes | 44,754 | 279,213 | 279,490 | ||||||||
Income before equity in earnings of subsidiaries | 475,505 | 459,622 | 473,398 | ||||||||
Equity in earnings of subsidiary | 0 | 0 | 0 | ||||||||
Net income | $ 184,500 | $ 95,996 | $ 87,049 | $ 62,365 | $ 113,844 | $ 124,600 | $ 107,960 | $ 158,813 | 475,505 | 459,622 | 473,398 |
Parent Company [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Cost of sales, including purchasing and warehousing costs | 0 | 0 | 0 | ||||||||
Gross Profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 30,478 | 28,695 | 24,186 | ||||||||
Operating Income (Loss) | (30,478) | (28,695) | (24,186) | ||||||||
Other, net: | |||||||||||
Interest income (expense) | (52,305) | (52,081) | (52,210) | ||||||||
Other income (expense), net | 83,840 | 81,683 | 76,987 | ||||||||
Total other, net | 31,535 | 29,602 | 24,777 | ||||||||
Income before provision for income taxes | 1,057 | 907 | 591 | ||||||||
Provision for income taxes | 641 | 1,588 | 1,220 | ||||||||
Income before equity in earnings of subsidiaries | 416 | (681) | (629) | ||||||||
Equity in earnings of subsidiary | 475,089 | 460,303 | 474,027 | ||||||||
Net income | 475,505 | 459,622 | 473,398 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 9,034,790 | 9,254,477 | 9,432,116 | ||||||||
Cost of sales, including purchasing and warehousing costs | 5,107,063 | 5,171,953 | 5,172,938 | ||||||||
Gross Profit | 3,927,727 | 4,082,524 | 4,259,178 | ||||||||
Selling, general and administrative expenses | 3,453,406 | 3,402,323 | 3,536,697 | ||||||||
Operating Income (Loss) | 474,321 | 680,201 | 722,481 | ||||||||
Other, net: | |||||||||||
Interest income (expense) | (6,496) | (7,897) | (13,378) | ||||||||
Other income (expense), net | (17,729) | (19,558) | (19,699) | ||||||||
Total other, net | (24,225) | (27,455) | (33,077) | ||||||||
Income before provision for income taxes | 450,096 | 652,746 | 689,404 | ||||||||
Provision for income taxes | 32,623 | 260,155 | 268,571 | ||||||||
Income before equity in earnings of subsidiaries | 417,473 | 392,591 | 420,833 | ||||||||
Equity in earnings of subsidiary | 57,616 | 67,712 | 53,194 | ||||||||
Net income | 475,089 | 460,303 | 474,027 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 550,450 | 556,747 | 593,606 | ||||||||
Cost of sales, including purchasing and warehousing costs | 393,128 | 383,356 | 430,012 | ||||||||
Gross Profit | 157,322 | 173,391 | 163,594 | ||||||||
Selling, general and administrative expenses | 82,155 | 92,287 | 93,852 | ||||||||
Operating Income (Loss) | 75,167 | 81,104 | 69,742 | ||||||||
Other, net: | |||||||||||
Interest income (expense) | 0 | 68 | 180 | ||||||||
Other income (expense), net | (6,061) | 4,010 | (7,029) | ||||||||
Total other, net | (6,061) | 4,078 | (6,849) | ||||||||
Income before provision for income taxes | 69,106 | 85,182 | 62,893 | ||||||||
Provision for income taxes | 11,490 | 17,470 | 9,699 | ||||||||
Income before equity in earnings of subsidiaries | 57,616 | 67,712 | 53,194 | ||||||||
Equity in earnings of subsidiary | 0 | 0 | 0 | ||||||||
Net income | 57,616 | 67,712 | 53,194 | ||||||||
Consolidation, Eliminations [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | (211,456) | (243,545) | (288,704) | ||||||||
Cost of sales, including purchasing and warehousing costs | (211,456) | (243,545) | (288,704) | ||||||||
Gross Profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | (51,202) | (54,988) | (57,743) | ||||||||
Operating Income (Loss) | 51,202 | 54,988 | 57,743 | ||||||||
Other, net: | |||||||||||
Interest income (expense) | 0 | 0 | 0 | ||||||||
Other income (expense), net | (51,202) | (54,988) | (57,743) | ||||||||
Total other, net | (51,202) | (54,988) | (57,743) | ||||||||
Income before provision for income taxes | 0 | 0 | 0 | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Income before equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiary | (532,705) | (528,015) | (527,221) | ||||||||
Net income | $ (532,705) | $ (528,015) | $ (527,221) |
Condensed Consolidating Finan67
Condensed Consolidating Financial Statements Condensed Consolidating Comprehensive Income Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 30, 2017 | Oct. 07, 2017 | Jul. 15, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 22, 2017 | Apr. 23, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | $ 184,500 | $ 95,996 | $ 87,049 | $ 62,365 | $ 113,844 | $ 124,600 | $ 107,960 | $ 158,813 | $ 475,505 | $ 459,622 | $ 473,398 |
Other comprehensive income (loss): | |||||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | (194) | (534) | (445) | ||||||||
Currency translation adjustments | 14,941 | 4,892 | (31,277) | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss) | 14,747 | 4,358 | (31,722) | ||||||||
Comprehensive Income (Loss) | 490,252 | 463,980 | 441,676 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | 475,505 | 459,622 | 473,398 | ||||||||
Other comprehensive income (loss): | |||||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | 0 | 0 | 0 | ||||||||
Currency translation adjustments | 0 | 0 | 0 | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | 14,747 | 4,358 | (31,722) | ||||||||
Total other comprehensive income (loss) | 14,747 | 4,358 | (31,722) | ||||||||
Comprehensive Income (Loss) | 490,252 | 463,980 | 441,676 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | 475,089 | 460,303 | 474,027 | ||||||||
Other comprehensive income (loss): | |||||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | (194) | (534) | (445) | ||||||||
Currency translation adjustments | 0 | 0 | 0 | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | 14,941 | 4,892 | (31,277) | ||||||||
Total other comprehensive income (loss) | 14,747 | 4,358 | (31,722) | ||||||||
Comprehensive Income (Loss) | 489,836 | 464,661 | 442,305 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | 57,616 | 67,712 | 53,194 | ||||||||
Other comprehensive income (loss): | |||||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | 0 | 0 | 0 | ||||||||
Currency translation adjustments | 14,941 | 4,892 | (31,277) | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss) | 14,941 | 4,892 | (31,277) | ||||||||
Comprehensive Income (Loss) | 72,557 | 72,604 | 21,917 | ||||||||
Consolidation, Eliminations [Member] | |||||||||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | (532,705) | (528,015) | (527,221) | ||||||||
Other comprehensive income (loss): | |||||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | 0 | 0 | 0 | ||||||||
Currency translation adjustments | 0 | 0 | 0 | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | (29,688) | (9,250) | 62,999 | ||||||||
Total other comprehensive income (loss) | (29,688) | (9,250) | 62,999 | ||||||||
Comprehensive Income (Loss) | $ (562,393) | $ (537,265) | $ (464,222) |
Condensed Consolidating Finan68
Condensed Consolidating Financial Statements Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | $ 600,805 | $ 523,303 | $ 702,644 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (189,758) | (259,559) | (234,747) |
Proceeds from sales of property and equipment | 11,099 | 2,212 | 270 |
Other, net | 20 | (4,697) | (18,889) |
Net cash used in investing activities | (178,639) | (262,044) | (253,366) |
Cash flows from financing activities: | |||
Increase (decrease) in bank overdrafts | 14,004 | (5,573) | (2,922) |
Borrowings under credit facilities | 534,400 | 799,600 | 618,300 |
Payments on credit facilities | (534,400) | (959,600) | (1,041,700) |
Dividends paid | (17,854) | (17,738) | (17,649) |
Proceeds from the issuance of common stock | 4,076 | 4,532 | 5,174 |
Tax withholdings related to the exercise of stock appreciation rights | (6,531) | (19,558) | (13,112) |
Repurchase of common stock | (6,498) | (18,393) | (6,665) |
Other, net | (2,069) | (390) | (380) |
Net Cash Provided by (Used in) Financing Activities | (14,872) | (217,120) | (458,954) |
Effect of exchange rate changes on cash | 4,465 | 257 | (4,213) |
Net (decrease) increase in cash and cash equivalents | 411,759 | 44,396 | (13,889) |
Cash and cash equivalents, beginning of period | 135,178 | 90,782 | 104,671 |
Cash and cash equivalents, end of period | 546,937 | 135,178 | 90,782 |
Parent Company [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | 0 | 14 | (1) |
Cash flows from investing activities: | |||
Purchases of property and equipment | 0 | 0 | 0 |
Proceeds from sales of property and equipment | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Increase (decrease) in bank overdrafts | 0 | 0 | 0 |
Borrowings under credit facilities | 0 | 0 | 0 |
Payments on credit facilities | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Proceeds from the issuance of common stock | 0 | 0 | 0 |
Tax withholdings related to the exercise of stock appreciation rights | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | 0 |
Other, net | 1 | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | 1 | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 1 | 14 | (1) |
Cash and cash equivalents, beginning of period | 22 | 8 | 9 |
Cash and cash equivalents, end of period | 23 | 22 | 8 |
Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | 593,091 | 491,180 | 709,582 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (187,993) | (257,159) | (232,591) |
Proceeds from sales of property and equipment | 11,085 | 2,210 | 266 |
Other, net | 480 | (4,697) | (18,583) |
Net cash used in investing activities | (176,428) | (259,646) | (250,908) |
Cash flows from financing activities: | |||
Increase (decrease) in bank overdrafts | 16,290 | (4,902) | (4,529) |
Borrowings under credit facilities | 534,400 | 799,600 | 618,300 |
Payments on credit facilities | (534,400) | (959,600) | (1,041,700) |
Dividends paid | (17,854) | (17,738) | (17,649) |
Proceeds from the issuance of common stock | 4,076 | 4,532 | 5,174 |
Tax withholdings related to the exercise of stock appreciation rights | (6,531) | (19,558) | (13,112) |
Repurchase of common stock | (6,498) | (18,393) | (6,665) |
Other, net | (2,069) | (390) | (380) |
Net Cash Provided by (Used in) Financing Activities | (12,586) | (216,449) | (460,561) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 404,077 | 15,085 | (1,887) |
Cash and cash equivalents, beginning of period | 78,543 | 63,458 | 65,345 |
Cash and cash equivalents, end of period | 482,620 | 78,543 | 63,458 |
Non-Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | 7,714 | 32,109 | (6,937) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (1,765) | (2,400) | (2,156) |
Proceeds from sales of property and equipment | 14 | 2 | 4 |
Other, net | (460) | 0 | (306) |
Net cash used in investing activities | (2,211) | (2,398) | (2,458) |
Cash flows from financing activities: | |||
Increase (decrease) in bank overdrafts | (2,286) | (657) | 1,606 |
Borrowings under credit facilities | 0 | 0 | 0 |
Payments on credit facilities | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Proceeds from the issuance of common stock | 0 | 0 | 0 |
Tax withholdings related to the exercise of stock appreciation rights | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | (2,286) | (657) | 1,606 |
Effect of exchange rate changes on cash | 4,465 | 257 | (4,213) |
Net (decrease) increase in cash and cash equivalents | 7,682 | 29,311 | (12,002) |
Cash and cash equivalents, beginning of period | 56,635 | 27,324 | 39,326 |
Cash and cash equivalents, end of period | 64,317 | 56,635 | 27,324 |
Consolidation, Eliminations [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Purchases of property and equipment | 0 | 0 | 0 |
Proceeds from sales of property and equipment | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Increase (decrease) in bank overdrafts | 0 | (14) | 1 |
Borrowings under credit facilities | 0 | 0 | 0 |
Payments on credit facilities | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Proceeds from the issuance of common stock | 0 | 0 | 0 |
Tax withholdings related to the exercise of stock appreciation rights | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | 0 |
Other, net | (1) | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | (1) | (14) | 1 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | (1) | (14) | 1 |
Cash and cash equivalents, beginning of period | (22) | (8) | (9) |
Cash and cash equivalents, end of period | $ (23) | $ (22) | $ (8) |
Quarterly Financial Data (una69
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 30, 2017 | Oct. 07, 2017 | Jul. 15, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 22, 2017 | Apr. 23, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 2,036,986 | $ 2,182,233 | $ 2,263,727 | $ 2,082,891 | $ 2,248,855 | $ 2,256,155 | $ 2,890,838 | $ 2,979,778 | $ 9,373,784 | $ 9,567,679 | $ 9,737,018 |
Gross Profit | 873,569 | 947,708 | 993,088 | 907,564 | 988,205 | 1,010,257 | 1,270,684 | 1,349,889 | 4,085,049 | 4,255,915 | 4,422,772 |
Net income | $ 184,500 | $ 95,996 | $ 87,049 | $ 62,365 | $ 113,844 | $ 124,600 | $ 107,960 | $ 158,813 | $ 475,505 | $ 459,622 | $ 473,398 |
Basic earnings per common share | $ 2.50 | $ 1.30 | $ 1.18 | $ 0.84 | $ 1.54 | $ 1.69 | $ 1.46 | $ 2.16 | $ 6.44 | $ 6.22 | $ 6.45 |
Diluted earnings per common share | $ 2.49 | $ 1.30 | $ 1.17 | $ 0.84 | $ 1.53 | $ 1.68 | $ 1.46 | $ 2.14 | $ 6.42 | $ 6.20 | $ 6.40 |
Valuation and Qualifying Acco70
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for Doubtful Accounts Receivable, Current, Beginning of Period | $ 29,164 | ||
Allowance for Doubtful Accounts Receivable, Current, End of Period | 18,219 | $ 29,164 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for Doubtful Accounts Receivable, Current, Beginning of Period | 25,758 | $ 16,152 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 20,110 | 24,597 | 22,067 |
Valuation Allowances and Reserves, Deductions | (31,055) | $ (21,191) | (12,461) |
Allowance for Doubtful Accounts Receivable, Current, End of Period | $ 29,164 | $ 25,758 |