Document and Entity Information
Document and Entity Information Document Document - shares | 4 Months Ended | |
Apr. 20, 2019 | May 20, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | Advance Auto Parts Inc | |
Trading Symbol | AAP | |
Entity Central Index Key | 0001158449 | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 20, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 71,736,870 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 20, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 537,330 | $ 896,527 |
Receivables, net | 684,419 | 624,972 |
Inventories | 4,433,981 | 4,362,547 |
Other current assets | 126,108 | 198,408 |
Total current assets | 5,781,838 | 6,082,454 |
Property and equipment, net of accumulated depreciation of $1,951,225 and $1,918,502 | 1,363,128 | 1,368,985 |
Operating lease right-of-use assets | 2,371,362 | 0 |
Goodwill | 991,240 | 990,237 |
Intangible assets, net | 527,702 | 550,593 |
Other assets | 46,241 | 48,379 |
Assets, Total | 11,081,511 | 9,040,648 |
Current liabilities: | ||
Accounts payable | 3,276,955 | 3,172,790 |
Accrued expenses | 530,277 | 623,141 |
Other current liabilities | 491,645 | 90,019 |
Total current liabilities | 4,298,877 | 3,885,950 |
Long-term debt | 746,767 | 1,045,720 |
Noncurrent operating lease liabilities | 2,054,173 | 0 |
Deferred income taxes | 310,404 | 318,353 |
Other long-term liabilities | 124,067 | 239,812 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Preferred stock, nonvoting, $0.0001 par value | 0 | 0 |
Common stock, voting, $0.0001 par value | 8 | 8 |
Additional paid-in capital | 706,360 | 694,797 |
Treasury stock, at cost | (560,245) | (425,954) |
Accumulated other comprehensive loss | (40,038) | (44,193) |
Retained earnings | 3,441,138 | 3,326,155 |
Total stockholders’ equity | 3,547,223 | 3,550,813 |
Liabilities and Stockholders' Equity, Total | $ 11,081,511 | $ 9,040,648 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 20, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Property and equipment, net of accumulated depreciation of $1,951,225 and $1,918,502 | $ 1,951,225 | $ 1,918,502 |
Preferred stock, nonvoting, $0.0001 par value | $ 0.0001 | $ 0.0001 |
Common stock, voting, $0.0001 par value | $ 0.0001 | $ 0.0001 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 4 Months Ended | |
Apr. 20, 2019 | Apr. 21, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 2,952,036 | $ 2,873,848 |
Cost of sales, including purchasing and warehousing costs | 1,647,424 | 1,601,564 |
Gross profit | 1,304,612 | 1,272,284 |
Selling, general and administrative expenses | 1,096,672 | 1,074,043 |
Operating income | 207,940 | 198,241 |
Other, net: | ||
Interest expense | (14,944) | (17,682) |
Other (expense) income, net | (2,238) | 458 |
Total other, net | (17,182) | (17,224) |
Income before provision for income taxes | 190,758 | 181,017 |
Provision for income taxes | 48,258 | 44,290 |
Net income | $ 142,500 | $ 136,727 |
Basic earnings per common share | $ 1.99 | $ 1.85 |
Weighted average common shares outstanding | 71,787 | 73,979 |
Diluted earnings per common share | $ 1.98 | $ 1.84 |
Weighted average common shares outstanding | 72,103 | 74,205 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 20, 2019 | Apr. 21, 2018 | |
Net income | $ 142,500 | $ 136,727 |
Other comprehensive (loss) income: | ||
Changes in net unrecognized other postretirement benefit income (costs), net of tax of $17 and $32 | 95 | (91) |
Currency translation adjustments | 4,060 | (3,767) |
Total other comprehensive income (loss) | 4,155 | (3,858) |
Comprehensive income | $ 146,655 | $ 132,869 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 20, 2019 | Apr. 21, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) [Abstract] | ||
Changes in net unrecognized other postretirement benefit income (costs), net of tax of $17 and $32 | $ 17 | $ 32 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDES' EQUITY (Parenthetical) - $ / shares | 4 Months Ended | |
Apr. 20, 2019 | Apr. 21, 2018 | |
Statement of Stockholders' Equity (Parenthetical) [Abstract] | ||
Cash dividends declared ($0.06 per common share) | $ 0.06 | $ 0.06 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDES' 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 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 | |||||
Net income | 136,727 | 136,727 | ||||
Total other comprehensive income (loss) | (3,858) | (3,858) | ||||
Issuance of shares upon the exercise of stock appreciation rights | 0 | |||||
Issuance of shares upon the exercise of stock appreciation rights (in shares) | 2 | |||||
Tax withholdings related to the exercise of stock appreciation rights | (93) | (93) | ||||
Restricted stock units and deferred stock units vested | 0 | |||||
Restricted stock and deferred stock units vested (in shares) | 119 | |||||
Share-based compensation | 7,642 | 7,642 | ||||
Repurchases of common stock | (45) | |||||
Stock issued under employee stock purchase plan | 754 | 754 | ||||
Stock issued under employee stock purchase plan (in shares) | 18 | |||||
Stock issued under employee stock purchase plan | (5,224) | (5,224) | ||||
Cash dividends declared ($0.06 per common share) | (4,487) | (4,487) | ||||
Other | (36) | (36) | ||||
Balance at Apr. 21, 2018 | 3,546,621 | $ 8 | 672,913 | (149,824) | (28,812) | 3,052,336 |
Balance (in shares) at Apr. 21, 2018 | 74,030 | |||||
Balance at Dec. 29, 2018 | 3,550,813 | $ 8 | 694,797 | (425,954) | (44,193) | 3,326,155 |
Balance (in shares) at Dec. 29, 2018 | 72,460 | |||||
Net income | 142,500 | 142,500 | ||||
Cumulative effect of accounting change from adoption of ASU 2016-02, net of tax | (23,165) | (23,165) | ||||
Total other comprehensive income (loss) | 4,155 | 4,155 | ||||
Issuance of shares upon the exercise of stock appreciation rights | 0 | |||||
Issuance of shares upon the exercise of stock appreciation rights (in shares) | 1 | |||||
Tax withholdings related to the exercise of stock appreciation rights | (99) | (99) | ||||
Restricted stock units and deferred stock units vested | 0 | |||||
Restricted stock and deferred stock units vested (in shares) | 111 | |||||
Share-based compensation | 10,984 | 10,984 | ||||
Repurchases of common stock | (840) | |||||
Stock issued under employee stock purchase plan | 678 | 678 | ||||
Stock issued under employee stock purchase plan (in shares) | 5 | |||||
Stock issued under employee stock purchase plan | (134,291) | (134,291) | ||||
Cash dividends declared ($0.06 per common share) | (4,352) | (4,352) | ||||
Balance at Apr. 20, 2019 | $ 3,547,223 | $ 8 | $ 706,360 | $ (560,245) | $ (40,038) | $ 3,441,138 |
Balance (in shares) at Apr. 20, 2019 | 71,737 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 20, 2019 | Apr. 21, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 142,500 | $ 136,727 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 69,885 | 71,692 |
Share-based compensation | 10,984 | 7,642 |
Loss on disposal and impairment of long-lived assets | 125 | 3,208 |
(Benefit) provision for deferred income taxes | (250) | 7,340 |
Other | 11,348 | 672 |
Net change in: | ||
Receivables, net | (58,757) | (14,012) |
Inventories | (68,742) | (64,369) |
Accounts payable | 102,941 | (2,948) |
Accrued expenses | (62,751) | 20,765 |
Other assets and liabilities, net | 57,259 | (12,747) |
Net cash provided by operating activities | 204,542 | 153,970 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (61,312) | (34,474) |
Proceeds from sales of property and equipment | 553 | 530 |
Net cash used in investing activities | (60,759) | (33,944) |
Cash flows from financing activities: | ||
Decrease in bank overdrafts | (50,578) | (12,101) |
Redemption of senior unsecured notes | (310,047) | 0 |
Dividends paid | (8,723) | (8,930) |
Proceeds from the issuance of common stock | 678 | 754 |
Tax withholdings related to the exercise of stock appreciation rights | (99) | (93) |
Repurchases of common stock | (134,291) | (5,224) |
Other, net | (116) | (1,163) |
Net cash used in financing activities | (503,176) | (26,757) |
Effect of exchange rate changes on cash | 196 | (1,063) |
Net (decrease) increase in cash and cash equivalents | (359,197) | 92,206 |
Cash and cash equivalents, beginning of period | 896,527 | 546,937 |
Cash and cash equivalents, end of period | 537,330 | 639,143 |
Non-cash transactions: | ||
Accrued purchases of property and equipment | $ 14,194 | $ 8,591 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 4 Months Ended |
Apr. 20, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Nature of Operations and Basis of Presentation: Advance Auto Parts, Inc. and subsidiaries is a leading automotive aftermarket parts provider in North America, serving both professional installers, or Professional, and “do-it-yourself,” or DIY customers. The accompanying consolidated financial statements have been prepared by us and include the accounts of Advance Auto Parts, Inc., its wholly owned subsidiary, Advance Stores Company, Incorporated (“Advance Stores”), and its subsidiaries (collectively referred to as “Advance,” “we,” “us,” or “our”). As of April 20, 2019 , we operated a total of 4,931 stores and 146 Worldpac branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. In addition, as of April 20, 2019 , we served 1,238 independently owned Carquest branded stores across the same geographic locations served by our stores in addition to Mexico, the Bahamas, Turks and Caicos and the British Virgin Islands. The accounting policies followed in the presentation of interim financial results are consistent with those followed on an annual basis. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), have been condensed or omitted based upon the Securities and Exchange Commission (“SEC”) interim reporting guidance. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for 2018 as filed with the SEC on February 19, 2019 . During the sixteen weeks ended April 20, 2019 , we made an out-of-period correction, which increased Accounts payable and Cost of sales by $13.0 million , related to received not invoiced inventory. The results of operations for the interim periods are not necessarily indicative of the operating results to be expected for the full year. Our first quarter of the year contains sixteen weeks. Our remaining three quarters consist of twelve weeks. |
Significant Accounting Policies
Significant Accounting Policies | 4 Months Ended |
Apr. 20, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies: Revenues The following table summarizes disaggregated revenue from contracts with customers by product group: Sixteen Weeks Ended April 20, 2019 April 21, 2018 Percentage of Net sales, by product group: Parts and batteries 66 % 65 % Accessories and chemicals 21 20 Engine maintenance 12 14 Other 1 1 Total 100 % 100 % We had no material contract assets, contract liabilities or costs to obtain and fulfill contracts recorded on the Condensed Consolidated Balance Sheet as of April 20, 2019 and December 29, 2018 . For the sixteen weeks ended April 20, 2019 , revenue recognized from performance obligations related to prior periods (for example, due to changes in transaction price) was insignificant. Recently Issued Accounting Pronouncements We adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), as of December 30, 2018, using the alternative transition method provided in ASU 2018-11, Leases (Topic 842): Targeted Improvements . Using the alternative transition method, we applied the transition requirements at the effective date of ASU 2016-02 with the impact of initially applying ASU 2016-02 recognized as a cumulative-effect adjustment to retained earnings in the first quarter of 2019. Consequently, the comparative periods presented continue to be in accordance with ASC 840, Leases (Topic 840) (“ASC 840”), including the disclosure requirements of ASC 840. We elected the package of practical expedients permitted under the transition guidance within the new standard. In addition, as a practical expedient relating to our facility and vehicle leases, we elected not to separate lease components from nonlease components. The adoption of ASU 2016-02 resulted in the recording of lease assets and lease liabilities of $2.4 billion as of December 30, 2018. At the date of adoption, there was a difference between the operating lease right-of-use assets and lease liabilities recorded that included an adjustment to retained earnings, net of a $7.9 million deferred tax impact, which primarily resulted from the impairment of select operating lease right-of-use assets. For the sixteen weeks ended April 20, 2019 , the adoption of the new standard did not have a material impact on our condensed consolidated statements of operations and condensed consolidated statements of cash flows as substantially all of our leases remained operating in nature. |
Inventories
Inventories | 4 Months Ended |
Apr. 20, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or market. We used the last in, first out (“LIFO”) method of accounting for approximately 88% and 89% of inventories as of April 20, 2019 and December 29, 2018 . Under the LIFO method, our Cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs for inventories purchased in the sixteen weeks ended April 20, 2019 and prior years. We recorded an increase to Cost of sales of $26.4 million for the sixteen weeks ended April 20, 2019 and a decrease to Cost of sales of $20.0 million for the sixteen weeks ended April 21, 2018 to state inventories at LIFO. An actual valuation of inventory under the LIFO method is performed by us at the end of each fiscal year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on our estimates of expected year-end inventory levels and costs. Inventory balances were as follows: (in thousands) April 20, 2019 December 29, 2018 Inventories at first in, first out (“FIFO”) $ 4,217,495 $ 4,119,617 Adjustments to state inventories at LIFO 216,486 242,930 Inventories at LIFO $ 4,433,981 $ 4,362,547 |
Exit Activities
Exit Activities | 4 Months Ended |
Apr. 20, 2019 | |
Exit Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Exit Activities As of December 29, 2018 , and in accordance with ASC 420, Exit or Disposal Cost Obligations , the closed facility lease obligation, which comprised of sublease assets and lease liabilities for closed facilities, was $42.3 million recorded in connection with the initiatives and liabilities associated with facility closures that occurred as part of our normal market evaluation process as described in our 2018 Form 10-K. As a result of our transition to ASU 2016-02, Leases (Topic 842), our lease liabilities for closed facilities are included within Other current liabilities and Noncurrent operating lease liabilities and our sublease assets are included within Operating lease right-of-use assets in the accompanying condensed consolidated balance sheet as of April 20, 2019 . |
Intangible Assets
Intangible Assets | 4 Months Ended |
Apr. 20, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Our definite-lived intangible assets include customer relationships and non-compete agreements. Amortization expense was $9.7 million and $13.4 million for the sixteen weeks ended April 20, 2019 and April 21, 2018 . |
Receivables, net
Receivables, net | 4 Months Ended |
Apr. 20, 2019 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net Receivables consist of the following: (in thousands) April 20, 2019 December 29, 2018 Trade $ 465,085 $ 397,909 Vendor 225,845 228,024 Other 12,264 17,081 Total receivables 703,194 643,014 Less: allowance for doubtful accounts (18,775 ) (18,042 ) Receivables, net $ 684,419 $ 624,972 |
Long-term Debt and Fair Value o
Long-term Debt and Fair Value of Financial Instruments | 4 Months Ended |
Apr. 20, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Fair Value of Financial Instruments | Long-term Debt and Fair Value of Financial Instruments Long-term debt consists of the following: (in thousands) April 20, 2019 December 29, 2018 Total long-term debt $ 746,830 $ 1,045,930 Less: current portion of long-term debt (63 ) (210 ) Long-term debt, excluding current portion $ 746,767 $ 1,045,720 Fair value of long-term debt $ 781,000 $ 1,074,000 Fair Value of Financial Assets and Liabilities The fair value of our senior unsecured notes was determined using Level 2 inputs based on quoted market prices. We believe the carrying value of our other long-term debt approximates fair value. The carrying amounts of our 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 As of April 20, 2019 and December 29, 2018 we had no outstanding borrowings under the revolver and borrowing availability was $998.5 million and $998.0 million based on our leverage ratio. As of April 20, 2019 and December 29, 2018 , we had letters of credit outstanding of $1.5 million and $100.5 million , which generally have a term of one year or less and primarily serve as collateral for our self-insurance policies. We were in compliance with all financial covenants required by our debt arrangements as of April 20, 2019 . Senior Unsecured Notes Our 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”). On February 28, 2019, we redeemed all $300.0 million aggregate principal amount of our outstanding 2020 Notes. We incurred charges relating to a make-whole provision and debt issuance costs of $10.1 million and $0.7 million resulting from the early redemption of our 2020 Notes. Debt Guarantees We are a guarantor of loans made by banks to various independently owned Carquest-branded stores that are our customers totaling $24.0 million and $24.3 million as of April 20, 2019 and December 29, 2018 . 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 $51.8 million and $53.9 million as of April 20, 2019 and December 29, 2018 . We believe that the likelihood of performance under these guarantees is remote. |
Leases
Leases | 4 Months Ended |
Apr. 20, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases Substantially all of our leases are for facilities and vehicles. The initial term for facilities are typically 5 to 10 years, with renewal options at 5 year intervals, with the exercise of lease renewal options at our sole discretion. Our vehicle and equipment leases have three to five-year terms. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease liabilities consist of the following: (in thousands) April 20, 2019 Total operating lease liabilities $ 2,503,875 Less: Current portion of operating lease liabilities (449,702 ) Noncurrent operating lease liabilities $ 2,054,173 The current portion of operating lease liabilities is included in Other current liabilities in the accompanying condensed consolidated balance sheet. Total lease cost is included in Cost of sales and SG&A in the accompanying condensed consolidated statements of operations and is recorded net of immaterial sublease income. Total lease cost is comprised of the following: (in thousands) April 20, 2019 Operating lease cost $ 160,046 Variable lease cost 49,690 Total lease cost $ 209,736 The future maturity of lease liabilities are as follows: (in thousands) April 20, 2019 Remainder of 2019 $ 386,478 2020 540,813 2021 441,696 2022 347,796 2023 293,444 Thereafter 924,022 Total lease payments $ 2,934,249 Less: Imputed interest (430,374 ) Total operating lease liabilities $ 2,503,875 Operating lease payments include $139.8 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $28.1 million of legally binding minimum lease payments for leases signed but not yet commenced. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are 7.2 years and 4.2% as of April 20, 2019. We calculated the weighted-average discount rates using incremental borrowing rates, which equal the rates of interest that we would pay to borrow funds on a fully collateralized basis over a similar term. Other information relating to our lease liabilities is as follows: (in thousands) April 20, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 143,450 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 108,881 As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments due under non-cancelable operating leases would have been as follows: Year December 29, 2018 (in thousands) 2019 $ 520,541 2020 481,812 2021 416,895 2022 349,470 2023 270,116 Thereafter 837,441 $ 2,876,275 |
Warranty Liabilities
Warranty Liabilities | 4 Months Ended |
Apr. 20, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranty Liabilities | Warranty Liabilities The following table presents changes in our warranty reserves: Sixteen Weeks Ended Fifty-Two Weeks Ended (in thousands) April 20, 2019 December 29, 2018 Warranty reserve, beginning of period $ 45,280 $ 49,024 Additions to warranty reserves 12,724 43,200 Reserves utilized (12,929 ) (46,944 ) Warranty reserve, end of period $ 45,075 $ 45,280 |
Share Repurchase Program
Share Repurchase Program | 4 Months Ended |
Apr. 20, 2019 | |
Stock Repurchases: [Abstract] | |
Treasury Stock | Share Repurchase Program Our share repurchase program permits the repurchase of our common stock on the open market or in privately negotiated transactions from time to time. On August 8, 2018, our Board of Directors authorized a $600.0 million share repurchase program. During the sixteen weeks ended April 20, 2019 , we repurchased 0.8 million shares of our common stock at an aggregate cost of $127.2 million , or an average price of $159.65 per share, in connection with our share repurchase program. We had $200.0 million remaining under our share repurchase program as of April 20, 2019 . During the sixteen weeks ended April 21, 2018 , we repurchased no shares of our common stock in connection with our prior share repurchase program. |
Earnings per Share
Earnings per Share | 4 Months Ended |
Apr. 20, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The computation of basic and diluted earnings per share are as follows: Sixteen Weeks Ended (in thousands, except per share data) April 20, 2019 April 21, 2018 Numerator Net income applicable to common shares $ 142,500 $ 136,727 Denominator Basic weighted average common shares 71,787 73,979 Dilutive impact of share-based awards 316 226 Diluted weighted average common shares 72,103 74,205 Basic earnings per common share $ 1.99 $ 1.85 Diluted earnings per common share $ 1.98 $ 1.84 |
Share-Based Compensation
Share-Based Compensation | 4 Months Ended |
Apr. 20, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the sixteen weeks ended April 20, 2019 , we granted 190 thousand time-based restricted stock units (“RSUs”), 54 thousand performance-based RSUs and 27 thousand market-based RSUs. The general terms of the time-based, performance-based and market-based RSUs are similar to awards previously granted by us. The weighted average fair values of the time-based, performance-based and market-based RSUs granted during the sixteen weeks ended April 20, 2019 were $160.21 , $159.93 and $165.84 per share. For time-based and performance-based RSUs, the fair value of each award was determined based on the market price of our 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. Total income tax benefit related to share-based compensation expense for the sixteen weeks ended April 20, 2019 and April 21, 2018 was $2.7 million and $1.8 million . As of April 20, 2019 , there was $83.5 million of unrecognized compensation expense related to all share-based awards that is expected to be recognized over a weighted average period of 1.9 years . |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 4 Months Ended |
Apr. 20, 2019 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements Certain 100% wholly owned domestic subsidiaries of Advance, including our Material Subsidiaries (as defined in the 2017 Credit Agreement) serve as guarantors (“Guarantor Subsidiaries”) of our senior unsecured notes. The subsidiary guarantees related to our senior unsecured notes are full and unconditional and joint and several, and there are no restrictions on the ability of Advance to obtain funds from its Guarantor Subsidiaries. Certain of our wholly owned subsidiaries, including all of its foreign subsidiaries, do not serve as guarantors of our 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 Advance. Investments in subsidiaries of Advance 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. Condensed Consolidating Balance Sheet As of April 20, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 4 $ 485,512 $ 51,818 $ (4 ) $ 537,330 Receivables, net — 644,983 39,436 — 684,419 Inventories — 4,245,643 188,338 — 4,433,981 Other current assets 1,421 120,529 4,158 — 126,108 Total current assets 1,425 5,496,667 283,750 (4 ) 5,781,838 Property and equipment, net of accumulated depreciation 72 1,354,398 8,658 — 1,363,128 Operating lease right-of-use assets — 2,328,974 42,388 — 2,371,362 Goodwill — 943,502 47,738 — 991,240 Intangible assets, net — 487,802 39,900 — 527,702 Other assets, net 2,294 45,664 577 (2,294 ) 46,241 Investment in subsidiaries 4,077,071 495,756 — (4,572,827 ) — Intercompany note receivable 749,248 — — (749,248 ) — Due from intercompany, net — 179,333 354,702 (534,035 ) — $ 4,830,110 $ 11,332,096 $ 777,713 $ (5,858,408 ) $ 11,081,511 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ — $ 3,076,126 $ 200,829 $ — $ 3,276,955 Accrued expenses 2,085 503,766 24,426 — 530,277 Other current liabilities — 483,144 8,505 (4 ) 491,645 Total current liabilities 2,085 4,063,036 233,760 (4 ) 4,298,877 Long-term debt 746,767 — — — 746,767 Noncurrent operating lease liabilities — 2,021,182 32,991 — 2,054,173 Deferred income taxes — 297,743 14,955 (2,294 ) 310,404 Other long-term liabilities — 123,816 251 — 124,067 Intercompany note payable — 749,248 — (749,248 ) — Due to intercompany, net 534,035 — — (534,035 ) — Commitments and contingencies Stockholders' equity 3,547,223 4,077,071 495,756 (4,572,827 ) 3,547,223 $ 4,830,110 $ 11,332,096 $ 777,713 $ (5,858,408 ) $ 11,081,511 Condensed Consolidating Balance Sheet As of December 29, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 785,605 $ 110,922 $ — $ 896,527 Receivables, net — 590,269 34,703 — 624,972 Inventories — 4,182,973 179,574 — 4,362,547 Other current assets 3,103 191,318 3,987 — 198,408 Total current assets 3,103 5,750,165 329,186 — 6,082,454 Property and equipment, net of accumulated depreciation 77 1,359,980 8,928 — 1,368,985 Goodwill — 943,364 46,873 — 990,237 Intangible assets, net — 510,586 40,007 — 550,593 Other assets, net 2,408 47,815 564 (2,408 ) 48,379 Investment in subsidiaries 3,945,862 474,772 — (4,420,634 ) — Intercompany note receivable 1,048,993 — — (1,048,993 ) — Due from intercompany, net — 102,886 297,580 (400,466 ) — $ 5,000,443 $ 9,189,568 $ 723,138 $ (5,872,501 ) $ 9,040,648 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ — $ 2,954,632 $ 218,158 $ — $ 3,172,790 Accrued expenses 3,444 603,460 16,237 — 623,141 Other current liabilities — 91,994 (1,975 ) — 90,019 Total current liabilities 3,444 3,650,086 232,420 — 3,885,950 Long-term debt 1,045,720 — — — 1,045,720 Deferred income taxes — 306,127 14,634 (2,408 ) 318,353 Other long-term liabilities — 238,500 1,312 — 239,812 Intercompany note payable — 1,048,993 — (1,048,993 ) — Due to intercompany, net 400,466 — — (400,466 ) — Commitments and contingencies Stockholders' equity 3,550,813 3,945,862 474,772 (4,420,634 ) 3,550,813 $ 5,000,443 $ 9,189,568 $ 723,138 $ (5,872,501 ) $ 9,040,648 Condensed Consolidating Statement of Operations For the Sixteen Weeks Ended April 20, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 2,852,700 $ 147,290 $ (47,954 ) $ 2,952,036 Cost of sales, including purchasing and warehousing costs — 1,598,539 96,839 (47,954 ) 1,647,424 Gross profit — 1,254,161 50,451 — 1,304,612 Selling, general and administrative expenses 12,119 1,077,144 31,409 (24,000 ) 1,096,672 Operating (loss) income (12,119 ) 177,017 19,042 24,000 207,940 Other, net: Interest expense (13,512 ) (1,406 ) (26 ) — (14,944 ) Other income (expense), net 26,211 (6,891 ) 2,442 (24,000 ) (2,238 ) Total other, net 12,699 (8,297 ) 2,416 (24,000 ) (17,182 ) Income before provision for income taxes 580 168,720 21,458 — 190,758 Provision for income taxes 1,300 42,294 4,664 — 48,258 (Loss) income before equity in earnings of subsidiaries (720 ) 126,426 16,794 — 142,500 Equity in earnings of subsidiaries 143,220 16,794 — (160,014 ) — Net income $ 142,500 $ 143,220 $ 16,794 $ (160,014 ) $ 142,500 Condensed Consolidating Statement of Operations For the Sixteen Weeks Ended April 21, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 2,775,903 $ 152,119 $ (54,174 ) $ 2,873,848 Cost of sales, including purchasing and warehousing costs — 1,551,041 104,697 (54,174 ) 1,601,564 Gross profit — 1,224,862 47,422 — 1,272,284 Selling, general and administrative expenses 4,811 1,054,389 30,582 (15,739 ) 1,074,043 Operating (loss) income (4,811 ) 170,473 16,840 15,739 198,241 Other, net: Interest expense (16,078 ) (1,604 ) — — (17,682 ) Other income (expense), net 21,257 (2,993 ) (2,067 ) (15,739 ) 458 Total other, net 5,179 (4,597 ) (2,067 ) (15,739 ) (17,224 ) Income before provision for income taxes 368 165,876 14,773 — 181,017 Provision for income taxes 1,263 40,452 2,575 — 44,290 (Loss) income before equity in earnings of subsidiaries (895 ) 125,424 12,198 — 136,727 Equity in earnings of subsidiaries 137,622 12,198 — (149,820 ) — Net income $ 136,727 $ 137,622 $ 12,198 $ (149,820 ) $ 136,727 Condensed Consolidating Statement of Comprehensive Income For the Sixteen Weeks Ended April 20, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 142,500 $ 143,220 $ 16,794 $ (160,014 ) $ 142,500 Other comprehensive income 4,155 4,155 4,060 (8,215 ) 4,155 Comprehensive income $ 146,655 $ 147,375 $ 20,854 $ (168,229 ) $ 146,655 Condensed Consolidating Statement of Comprehensive Income For the Sixteen Weeks Ended April 21, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 136,727 $ 137,622 $ 12,198 $ (149,820 ) $ 136,727 Other comprehensive loss (3,858 ) (3,858 ) (3,767 ) 7,625 (3,858 ) Comprehensive income $ 132,869 $ 133,764 $ 8,431 $ (142,195 ) $ 132,869 Condensed Consolidating Statement of Cash Flows For the Sixteen Weeks Ended April 20, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 264,504 $ (59,962 ) $ — $ 204,542 Cash flows from investing activities: Purchases of property and equipment — (60,966 ) (346 ) — (61,312 ) Proceeds from sales of property and equipment — 552 1 — 553 Net cash used in investing activities — (60,414 ) (345 ) — (60,759 ) Cash flows from financing activities: (Decrease) increase in bank overdrafts — (51,585 ) 1,007 — (50,578 ) Redemption of senior unsecured notes — (310,047 ) — — (310,047 ) Dividends paid — (8,723 ) — — (8,723 ) Proceeds from the issuance of common stock — 678 — — 678 Tax withholdings related to the exercise of stock appreciation rights — (99 ) — — (99 ) Repurchases of common stock — (134,291 ) — — (134,291 ) Other, net 4 (116 ) — (4 ) (116 ) Net cash provided by (used in) financing activities 4 (504,183 ) 1,007 (4 ) (503,176 ) Effect of exchange rate changes on cash — — 196 — 196 Net increase (decrease) in cash and cash equivalents 4 (300,093 ) (59,104 ) (4 ) (359,197 ) Cash and cash equivalents , beginning of period — 785,605 110,922 — 896,527 Cash and cash equivalents , end of period $ 4 $ 485,512 $ 51,818 $ (4 ) $ 537,330 Condensed Consolidating Statement of Cash Flows For the Sixteen Weeks Ended April 21, 2018 (In thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 142,408 $ 11,562 $ — $ 153,970 Cash flows from investing activities: Purchases of property and equipment — (34,153 ) (321 ) — (34,474 ) Proceeds from sales of property and equipment — 486 44 — 530 Net cash used in investing activities — (33,667 ) (277 ) — (33,944 ) Cash flows from financing activities: Decrease in bank overdrafts — (9,790 ) (2,311 ) — (12,101 ) Dividends paid — (8,930 ) — — (8,930 ) Proceeds from the issuance of common stock — 754 — — 754 Tax withholdings related to the exercise of stock appreciation rights — (93 ) — — (93 ) Repurchases of common stock — (5,224 ) — — (5,224 ) Other, net — (1,163 ) — — (1,163 ) Net cash used in financing activities — (24,446 ) (2,311 ) — (26,757 ) Effect of exchange rate changes on cash — — (1,063 ) — (1,063 ) Net increase in cash and cash equivalents — 84,295 7,911 — 92,206 Cash and cash equivalents , beginning of period 23 482,620 64,317 (23 ) 546,937 Cash and cash equivalents , end of period $ 23 $ 566,915 $ 72,228 $ (23 ) $ 639,143 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 4 Months Ended |
Apr. 20, 2019 | |
Accounting Policies [Abstract] | |
Lessee, Leases | Substantially all of our leases are for facilities and vehicles. The initial term for facilities are typically 5 to 10 years, with renewal options at 5 year intervals, with the exercise of lease renewal options at our sole discretion. Our vehicle and equipment leases have three to five-year terms. The current portion of operating lease liabilities is included in Other current liabilities in the accompanying condensed consolidated balance sheet. Total lease cost is included in Cost of sales and SG&A in the accompanying condensed consolidated statements of operations and is recorded net of immaterial sublease income. |
Revenues | Revenues |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements We adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), as of December 30, 2018, using the alternative transition method provided in ASU 2018-11, Leases (Topic 842): Targeted Improvements . Using the alternative transition method, we applied the transition requirements at the effective date of ASU 2016-02 with the impact of initially applying ASU 2016-02 recognized as a cumulative-effect adjustment to retained earnings in the first quarter of 2019. Consequently, the comparative periods presented continue to be in accordance with ASC 840, Leases (Topic 840) (“ASC 840”), including the disclosure requirements of ASC 840. We elected the package of practical expedients permitted under the transition guidance within the new standard. In addition, as a practical expedient relating to our facility and vehicle leases, we elected not to separate lease components from nonlease components. The adoption of ASU 2016-02 resulted in the recording of lease assets and lease liabilities of $2.4 billion as of December 30, 2018. At the date of adoption, there was a difference between the operating lease right-of-use assets and lease liabilities recorded that included an adjustment to retained earnings, net of a $7.9 million deferred tax impact, which primarily resulted from the impairment of select operating lease right-of-use assets. For the sixteen weeks ended April 20, 2019 , the adoption of the new standard did not have a material impact on our condensed consolidated statements of operations and condensed consolidated statements of cash flows as substantially all of our leases remained operating in nature. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 4 Months Ended |
Apr. 20, 2019 | |
Accounting Policies [Abstract] | |
Revenue from External Customers by Products and Services | The following table summarizes disaggregated revenue from contracts with customers by product group: Sixteen Weeks Ended April 20, 2019 April 21, 2018 Percentage of Net sales, by product group: Parts and batteries 66 % 65 % Accessories and chemicals 21 20 Engine maintenance 12 14 Other 1 1 Total 100 % 100 % |
Inventories (Tables)
Inventories (Tables) | 4 Months Ended |
Apr. 20, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory balances were as follows: (in thousands) April 20, 2019 December 29, 2018 Inventories at first in, first out (“FIFO”) $ 4,217,495 $ 4,119,617 Adjustments to state inventories at LIFO 216,486 242,930 Inventories at LIFO $ 4,433,981 $ 4,362,547 |
Receivables, net (Tables)
Receivables, net (Tables) | 4 Months Ended |
Apr. 20, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Receivables consist of the following: (in thousands) April 20, 2019 December 29, 2018 Trade $ 465,085 $ 397,909 Vendor 225,845 228,024 Other 12,264 17,081 Total receivables 703,194 643,014 Less: allowance for doubtful accounts (18,775 ) (18,042 ) Receivables, net $ 684,419 $ 624,972 |
Long-term Debt and Fair Value_2
Long-term Debt and Fair Value of Financial Instruments (Tables) | 4 Months Ended |
Apr. 20, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consists of the following: (in thousands) April 20, 2019 December 29, 2018 Total long-term debt $ 746,830 $ 1,045,930 Less: current portion of long-term debt (63 ) (210 ) Long-term debt, excluding current portion $ 746,767 $ 1,045,720 Fair value of long-term debt $ 781,000 $ 1,074,000 |
Leases (Tables)
Leases (Tables) | 4 Months Ended |
Apr. 20, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | Operating lease liabilities consist of the following: (in thousands) April 20, 2019 Total operating lease liabilities $ 2,503,875 Less: Current portion of operating lease liabilities (449,702 ) Noncurrent operating lease liabilities $ 2,054,173 |
Lease, Cost | Total lease cost is comprised of the following: (in thousands) April 20, 2019 Operating lease cost $ 160,046 Variable lease cost 49,690 Total lease cost $ 209,736 |
Lessee, Operating Lease, Liability, Maturity | The future maturity of lease liabilities are as follows: (in thousands) April 20, 2019 Remainder of 2019 $ 386,478 2020 540,813 2021 441,696 2022 347,796 2023 293,444 Thereafter 924,022 Total lease payments $ 2,934,249 Less: Imputed interest (430,374 ) Total operating lease liabilities $ 2,503,875 |
Schedule of Other Information Relating to Lease Liabilities | Other information relating to our lease liabilities is as follows: (in thousands) April 20, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 143,450 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 108,881 |
Schedule of Future Minimum Rental Payments for Operating Leases | As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments due under non-cancelable operating leases would have been as follows: Year December 29, 2018 (in thousands) 2019 $ 520,541 2020 481,812 2021 416,895 2022 349,470 2023 270,116 Thereafter 837,441 $ 2,876,275 |
Warranty Liabilities (Tables)
Warranty Liabilities (Tables) | 4 Months Ended |
Apr. 20, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | The following table presents changes in our warranty reserves: Sixteen Weeks Ended Fifty-Two Weeks Ended (in thousands) April 20, 2019 December 29, 2018 Warranty reserve, beginning of period $ 45,280 $ 49,024 Additions to warranty reserves 12,724 43,200 Reserves utilized (12,929 ) (46,944 ) Warranty reserve, end of period $ 45,075 $ 45,280 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 4 Months Ended |
Apr. 20, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of basic and diluted earnings per share are as follows: Sixteen Weeks Ended (in thousands, except per share data) April 20, 2019 April 21, 2018 Numerator Net income applicable to common shares $ 142,500 $ 136,727 Denominator Basic weighted average common shares 71,787 73,979 Dilutive impact of share-based awards 316 226 Diluted weighted average common shares 72,103 74,205 Basic earnings per common share $ 1.99 $ 1.85 Diluted earnings per common share $ 1.98 $ 1.84 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 4 Months Ended |
Apr. 20, 2019 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet As of April 20, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 4 $ 485,512 $ 51,818 $ (4 ) $ 537,330 Receivables, net — 644,983 39,436 — 684,419 Inventories — 4,245,643 188,338 — 4,433,981 Other current assets 1,421 120,529 4,158 — 126,108 Total current assets 1,425 5,496,667 283,750 (4 ) 5,781,838 Property and equipment, net of accumulated depreciation 72 1,354,398 8,658 — 1,363,128 Operating lease right-of-use assets — 2,328,974 42,388 — 2,371,362 Goodwill — 943,502 47,738 — 991,240 Intangible assets, net — 487,802 39,900 — 527,702 Other assets, net 2,294 45,664 577 (2,294 ) 46,241 Investment in subsidiaries 4,077,071 495,756 — (4,572,827 ) — Intercompany note receivable 749,248 — — (749,248 ) — Due from intercompany, net — 179,333 354,702 (534,035 ) — $ 4,830,110 $ 11,332,096 $ 777,713 $ (5,858,408 ) $ 11,081,511 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ — $ 3,076,126 $ 200,829 $ — $ 3,276,955 Accrued expenses 2,085 503,766 24,426 — 530,277 Other current liabilities — 483,144 8,505 (4 ) 491,645 Total current liabilities 2,085 4,063,036 233,760 (4 ) 4,298,877 Long-term debt 746,767 — — — 746,767 Noncurrent operating lease liabilities — 2,021,182 32,991 — 2,054,173 Deferred income taxes — 297,743 14,955 (2,294 ) 310,404 Other long-term liabilities — 123,816 251 — 124,067 Intercompany note payable — 749,248 — (749,248 ) — Due to intercompany, net 534,035 — — (534,035 ) — Commitments and contingencies Stockholders' equity 3,547,223 4,077,071 495,756 (4,572,827 ) 3,547,223 $ 4,830,110 $ 11,332,096 $ 777,713 $ (5,858,408 ) $ 11,081,511 Condensed Consolidating Balance Sheet As of December 29, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 785,605 $ 110,922 $ — $ 896,527 Receivables, net — 590,269 34,703 — 624,972 Inventories — 4,182,973 179,574 — 4,362,547 Other current assets 3,103 191,318 3,987 — 198,408 Total current assets 3,103 5,750,165 329,186 — 6,082,454 Property and equipment, net of accumulated depreciation 77 1,359,980 8,928 — 1,368,985 Goodwill — 943,364 46,873 — 990,237 Intangible assets, net — 510,586 40,007 — 550,593 Other assets, net 2,408 47,815 564 (2,408 ) 48,379 Investment in subsidiaries 3,945,862 474,772 — (4,420,634 ) — Intercompany note receivable 1,048,993 — — (1,048,993 ) — Due from intercompany, net — 102,886 297,580 (400,466 ) — $ 5,000,443 $ 9,189,568 $ 723,138 $ (5,872,501 ) $ 9,040,648 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ — $ 2,954,632 $ 218,158 $ — $ 3,172,790 Accrued expenses 3,444 603,460 16,237 — 623,141 Other current liabilities — 91,994 (1,975 ) — 90,019 Total current liabilities 3,444 3,650,086 232,420 — 3,885,950 Long-term debt 1,045,720 — — — 1,045,720 Deferred income taxes — 306,127 14,634 (2,408 ) 318,353 Other long-term liabilities — 238,500 1,312 — 239,812 Intercompany note payable — 1,048,993 — (1,048,993 ) — Due to intercompany, net 400,466 — — (400,466 ) — Commitments and contingencies Stockholders' equity 3,550,813 3,945,862 474,772 (4,420,634 ) 3,550,813 $ 5,000,443 $ 9,189,568 $ 723,138 $ (5,872,501 ) $ 9,040,648 |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations For the Sixteen Weeks Ended April 20, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 2,852,700 $ 147,290 $ (47,954 ) $ 2,952,036 Cost of sales, including purchasing and warehousing costs — 1,598,539 96,839 (47,954 ) 1,647,424 Gross profit — 1,254,161 50,451 — 1,304,612 Selling, general and administrative expenses 12,119 1,077,144 31,409 (24,000 ) 1,096,672 Operating (loss) income (12,119 ) 177,017 19,042 24,000 207,940 Other, net: Interest expense (13,512 ) (1,406 ) (26 ) — (14,944 ) Other income (expense), net 26,211 (6,891 ) 2,442 (24,000 ) (2,238 ) Total other, net 12,699 (8,297 ) 2,416 (24,000 ) (17,182 ) Income before provision for income taxes 580 168,720 21,458 — 190,758 Provision for income taxes 1,300 42,294 4,664 — 48,258 (Loss) income before equity in earnings of subsidiaries (720 ) 126,426 16,794 — 142,500 Equity in earnings of subsidiaries 143,220 16,794 — (160,014 ) — Net income $ 142,500 $ 143,220 $ 16,794 $ (160,014 ) $ 142,500 Condensed Consolidating Statement of Operations For the Sixteen Weeks Ended April 21, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 2,775,903 $ 152,119 $ (54,174 ) $ 2,873,848 Cost of sales, including purchasing and warehousing costs — 1,551,041 104,697 (54,174 ) 1,601,564 Gross profit — 1,224,862 47,422 — 1,272,284 Selling, general and administrative expenses 4,811 1,054,389 30,582 (15,739 ) 1,074,043 Operating (loss) income (4,811 ) 170,473 16,840 15,739 198,241 Other, net: Interest expense (16,078 ) (1,604 ) — — (17,682 ) Other income (expense), net 21,257 (2,993 ) (2,067 ) (15,739 ) 458 Total other, net 5,179 (4,597 ) (2,067 ) (15,739 ) (17,224 ) Income before provision for income taxes 368 165,876 14,773 — 181,017 Provision for income taxes 1,263 40,452 2,575 — 44,290 (Loss) income before equity in earnings of subsidiaries (895 ) 125,424 12,198 — 136,727 Equity in earnings of subsidiaries 137,622 12,198 — (149,820 ) — Net income $ 136,727 $ 137,622 $ 12,198 $ (149,820 ) $ 136,727 |
Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income For the Sixteen Weeks Ended April 20, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 142,500 $ 143,220 $ 16,794 $ (160,014 ) $ 142,500 Other comprehensive income 4,155 4,155 4,060 (8,215 ) 4,155 Comprehensive income $ 146,655 $ 147,375 $ 20,854 $ (168,229 ) $ 146,655 Condensed Consolidating Statement of Comprehensive Income For the Sixteen Weeks Ended April 21, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 136,727 $ 137,622 $ 12,198 $ (149,820 ) $ 136,727 Other comprehensive loss (3,858 ) (3,858 ) (3,767 ) 7,625 (3,858 ) Comprehensive income $ 132,869 $ 133,764 $ 8,431 $ (142,195 ) $ 132,869 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows For the Sixteen Weeks Ended April 20, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 264,504 $ (59,962 ) $ — $ 204,542 Cash flows from investing activities: Purchases of property and equipment — (60,966 ) (346 ) — (61,312 ) Proceeds from sales of property and equipment — 552 1 — 553 Net cash used in investing activities — (60,414 ) (345 ) — (60,759 ) Cash flows from financing activities: (Decrease) increase in bank overdrafts — (51,585 ) 1,007 — (50,578 ) Redemption of senior unsecured notes — (310,047 ) — — (310,047 ) Dividends paid — (8,723 ) — — (8,723 ) Proceeds from the issuance of common stock — 678 — — 678 Tax withholdings related to the exercise of stock appreciation rights — (99 ) — — (99 ) Repurchases of common stock — (134,291 ) — — (134,291 ) Other, net 4 (116 ) — (4 ) (116 ) Net cash provided by (used in) financing activities 4 (504,183 ) 1,007 (4 ) (503,176 ) Effect of exchange rate changes on cash — — 196 — 196 Net increase (decrease) in cash and cash equivalents 4 (300,093 ) (59,104 ) (4 ) (359,197 ) Cash and cash equivalents , beginning of period — 785,605 110,922 — 896,527 Cash and cash equivalents , end of period $ 4 $ 485,512 $ 51,818 $ (4 ) $ 537,330 Condensed Consolidating Statement of Cash Flows For the Sixteen Weeks Ended April 21, 2018 (In thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 142,408 $ 11,562 $ — $ 153,970 Cash flows from investing activities: Purchases of property and equipment — (34,153 ) (321 ) — (34,474 ) Proceeds from sales of property and equipment — 486 44 — 530 Net cash used in investing activities — (33,667 ) (277 ) — (33,944 ) Cash flows from financing activities: Decrease in bank overdrafts — (9,790 ) (2,311 ) — (12,101 ) Dividends paid — (8,930 ) — — (8,930 ) Proceeds from the issuance of common stock — 754 — — 754 Tax withholdings related to the exercise of stock appreciation rights — (93 ) — — (93 ) Repurchases of common stock — (5,224 ) — — (5,224 ) Other, net — (1,163 ) — — (1,163 ) Net cash used in financing activities — (24,446 ) (2,311 ) — (26,757 ) Effect of exchange rate changes on cash — — (1,063 ) — (1,063 ) Net increase in cash and cash equivalents — 84,295 7,911 — 92,206 Cash and cash equivalents , beginning of period 23 482,620 64,317 (23 ) 546,937 Cash and cash equivalents , end of period $ 23 $ 566,915 $ 72,228 $ (23 ) $ 639,143 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) $ in Millions | 4 Months Ended |
Apr. 20, 2019USD ($)store | |
Stores [Member] | |
Basis of Presentation [Line Items] | |
Number of Stores | 4,931 |
Branches [Member] | |
Basis of Presentation [Line Items] | |
Number of Stores | 146 |
Independently owned Carquest store locations [Member] | |
Basis of Presentation [Line Items] | |
Number of Stores | 1,238 |
Cost of Sales [Member] | |
Basis of Presentation [Line Items] | |
Out-of-period correction | $ | $ 13 |
Accounts Payable [Member] | |
Basis of Presentation [Line Items] | |
Out-of-period correction | $ | $ 13 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) | 4 Months Ended | |
Apr. 20, 2019 | Apr. 21, 2018 | |
Revenue from External Customer [Line Items] | ||
Percentage Of Sales By Product Group | 100.00% | 100.00% |
Parts and Batteries [Member] | ||
Revenue from External Customer [Line Items] | ||
Percentage Of Sales By Product Group | 66.00% | 65.00% |
Accessories and Chemicals [Member] | ||
Revenue from External Customer [Line Items] | ||
Percentage Of Sales By Product Group | 21.00% | 20.00% |
Engine Maintenance [Member] | ||
Revenue from External Customer [Line Items] | ||
Percentage Of Sales By Product Group | 12.00% | 14.00% |
Other [Member] | ||
Revenue from External Customer [Line Items] | ||
Percentage Of Sales By Product Group | 1.00% | 1.00% |
Significant Accounting Polici_5
Significant Accounting Policies Adoption of ASU 2016-02 (Leases) (Details) - USD ($) $ in Thousands | Apr. 20, 2019 | Dec. 30, 2018 | Dec. 29, 2018 |
Effect of Adoption of New Accounting Pronouncements [Abstract] | |||
Operating Lease, Liability | $ 2,503,875 | $ 2,400,000 | |
Operating Lease, Right-of-Use Asset | $ 2,371,362 | 2,400,000 | $ 0 |
Deferred Tax Impact Upon Adoption of ASU 2016-02 and Impairment ROU Assets | $ 7,900 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 4 Months Ended | ||
Apr. 20, 2019 | Apr. 21, 2018 | Dec. 29, 2018 | |
Inventory [Line Items] | |||
Percentage of LIFO Inventory | 88.00% | 89.00% | |
Inventory, LIFO Reserve, Effect on Income, Net | $ (26,400) | $ 20,000 | |
Inventories at FIFO | 4,217,495 | $ 4,119,617 | |
Adjustments to state inventories at LIFO | 216,486 | 242,930 | |
Inventories at LIFO | $ 4,433,981 | $ 4,362,547 |
Exit Activities (Details)
Exit Activities (Details) $ in Millions | Dec. 29, 2018USD ($) |
Exit Activities [Abstract] | |
Restructuring Reserve | $ 42.3 |
Intangible Asset (Details)
Intangible Asset (Details) - USD ($) $ in Millions | 4 Months Ended | |
Apr. 20, 2019 | Apr. 21, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Expense | $ 9.7 | $ 13.4 |
Receivables, net (Details)
Receivables, net (Details) - USD ($) $ in Thousands | Apr. 20, 2019 | Dec. 29, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 703,194 | $ 643,014 |
Less: Allowance for doubtful accounts | (18,775) | (18,042) |
Receivables, net | 684,419 | 624,972 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 465,085 | 397,909 |
Accounts Receivable, Vendor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 225,845 | 228,024 |
Accounts Receivable, Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 12,264 | $ 17,081 |
Long-term Debt and Fair Value_3
Long-term Debt and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 4 Months Ended | |||
Apr. 20, 2019 | Feb. 28, 2019 | Dec. 29, 2018 | Apr. 26, 2010 | |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 746,830 | $ 1,045,930 | ||
Less: Current portion of long-term debt (included in Other current liabilities) | (63) | (210) | ||
Long-term debt, excluding current portion | 746,767 | 1,045,720 | ||
Fair value of long-term debt | 781,000 | 1,074,000 | ||
Letters of Credit Outstanding, Amount | 1,500 | 100,500 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 998,500 | 998,000 | ||
Guarantor Obligations, Maximum Exposure | 24,000 | 24,300 | ||
Guarantor Obligation, Collateral Amount | 51,800 | 53,900 | ||
5.75% senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |||
Debt Issuance, Percentage Of Principal | 99.587% | |||
Debt Instrument, Repurchased Face Amount | $ 300,000 | |||
Charges Relating to Make-Whole Provision of 2020 Senior Unsecured Notes Agreement | 10,100 | |||
Charges Relating to Debt Issuance Costs from 2020 Senior Unsecured Notes | 700 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Long-term and Short-term, Combined Amount | $ 0 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 4 Months Ended | ||
Apr. 20, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Total operating lease liabilities | $ 2,503,875 | $ 2,400,000 | |
Less: Current portion of operating lease liabilities | 449,702 | ||
Noncurrent operating lease liabilities | 2,054,173 | $ 0 | |
Operating lease cost | 160,046 | ||
Variable lease cost | 49,690 | ||
Total lease cost | 209,736 | ||
Remainder of 2019 | 386,478 | ||
2020 | 540,813 | ||
2021 | 441,696 | ||
2022 | 347,796 | ||
2023 | 293,444 | ||
Thereafter | 924,022 | ||
Total lease payments | 2,934,249 | ||
Less: Imputed interest | (430,374) | ||
Lessee option to extend reasonably certain of being exercised | 139,800 | ||
Operating lease legally binding minimum payments for lease that have not yet commenced | $ 28,100 | ||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 2 months | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.20% | ||
Operating Lease, Payments | $ 143,450 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 108,881 | ||
2019 | 520,541 | ||
2020 | 481,812 | ||
2021 | 416,895 | ||
2022 | 349,470 | ||
2023 | 270,116 | ||
Thereafter | 837,441 | ||
Operating Leases, Future Minimum Payments Due | $ 2,876,275 | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 5 years | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 10 years |
Warranty Liabilities (Details)
Warranty Liabilities (Details) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended |
Apr. 20, 2019 | Dec. 29, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty reserve, beginning of period | $ 45,280 | $ 49,024 |
Additions to warranty reserves | 12,724 | 43,200 |
Reserves utilized | (12,929) | (46,944) |
Warranty reserve, end of period | $ 45,075 | $ 45,280 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 4 Months Ended | ||
Apr. 20, 2019 | Apr. 21, 2018 | Aug. 08, 2018 | |
Class of Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 600 | ||
Treasury Stock, Shares, Acquired as Part of Authorized Plan | 800 | 0 | |
Payments for Repurchase of Common Stock | $ 127.2 | ||
Acquired, Average Cost Per Share, Acquired as Part of Plan | $ 159.65 | ||
Share Repurchase Program, Remaining Authorized Repurchase Amount | $ 200 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 4 Months Ended | |
Apr. 20, 2019 | Apr. 21, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income applicable to common shares | $ 142,500 | $ 136,727 |
Basic weighted average shares | 71,787 | 73,979 |
Dilutive impact of share-based awards | 316 | 226 |
Diluted weighted average shares | 72,103 | 74,205 |
Basic earnings per common share | $ 1.99 | $ 1.85 |
Diluted earnings per common share | $ 1.98 | $ 1.84 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 4 Months Ended | |
Apr. 20, 2019 | Apr. 21, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation, Tax Benefit from Compensation Expense | $ 2.7 | $ 1.8 |
Share-based Compensation, Cost Not yet Recognized | $ 83.5 | |
Share-based Compensation, Cost Not yet Recognized, Period for Recognition | 1 year 11 months | |
Performance-based RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in Period | 54 | |
Weighted Average Grant Date Fair Value | $ 159.93 | |
Market-based RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in Period | 27 | |
Weighted Average Grant Date Fair Value | $ 165.84 | |
Time-based RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in Period | 190 | |
Weighted Average Grant Date Fair Value | $ 160.21 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Apr. 20, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | Apr. 21, 2018 | Dec. 30, 2017 |
Current assets: | |||||
Cash and cash equivalents | $ 537,330 | $ 896,527 | $ 639,143 | $ 546,937 | |
Receivables, net | 684,419 | 624,972 | |||
Inventories | 4,433,981 | 4,362,547 | |||
Other current assets | 126,108 | 198,408 | |||
Total current assets | 5,781,838 | 6,082,454 | |||
Property and equipment, net of accumulated depreciation | 1,363,128 | 1,368,985 | |||
Operating Lease, Right-of-Use Asset | 2,371,362 | $ 2,400,000 | 0 | ||
Goodwill | 991,240 | 990,237 | |||
Intangible assets, net | 527,702 | 550,593 | |||
Other assets, net | 46,241 | 48,379 | |||
Investment in subsidiaries | 0 | 0 | |||
Intercompany note receivable | 0 | 0 | |||
Due from intercompany, net | 0 | 0 | |||
Assets, Total | 11,081,511 | 9,040,648 | |||
Current liabilities: | |||||
Accounts payable | 3,276,955 | 3,172,790 | |||
Accrued expenses | 530,277 | 623,141 | |||
Other current liabilities | 491,645 | 90,019 | |||
Total current liabilities | 4,298,877 | 3,885,950 | |||
Long-term debt | 746,767 | 1,045,720 | |||
Noncurrent operating lease liabilities | 2,054,173 | 0 | |||
Deferred income taxes | 310,404 | 318,353 | |||
Other long-term liabilities | 124,067 | 239,812 | |||
Intercompany note payable | 0 | 0 | |||
Due to intercompany, net | 0 | 0 | |||
Commitments and contingencies | |||||
Stockholders' equity | 3,547,223 | 3,550,813 | 3,546,621 | 3,415,196 | |
Liabilities and Stockholders' Equity, Total | 11,081,511 | 9,040,648 | |||
Parent Company [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 4 | 0 | 23 | 23 | |
Receivables, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Other current assets | 1,421 | 3,103 | |||
Total current assets | 1,425 | 3,103 | |||
Property and equipment, net of accumulated depreciation | 72 | 77 | |||
Operating Lease, Right-of-Use Asset | 0 | ||||
Goodwill | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Other assets, net | 2,294 | 2,408 | |||
Investment in subsidiaries | 4,077,071 | 3,945,862 | |||
Intercompany note receivable | 749,248 | 1,048,993 | |||
Due from intercompany, net | 0 | 0 | |||
Assets, Total | 4,830,110 | 5,000,443 | |||
Current liabilities: | |||||
Accounts payable | 0 | 0 | |||
Accrued expenses | 2,085 | 3,444 | |||
Other current liabilities | 0 | 0 | |||
Total current liabilities | 2,085 | 3,444 | |||
Long-term debt | 746,767 | 1,045,720 | |||
Noncurrent operating lease liabilities | 0 | ||||
Deferred income taxes | 0 | 0 | |||
Other long-term liabilities | 0 | 0 | |||
Intercompany note payable | 0 | 0 | |||
Due to intercompany, net | 534,035 | 400,466 | |||
Commitments and contingencies | |||||
Stockholders' equity | 3,547,223 | 3,550,813 | |||
Liabilities and Stockholders' Equity, Total | 4,830,110 | 5,000,443 | |||
Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 485,512 | 785,605 | 566,915 | 482,620 | |
Receivables, net | 644,983 | 590,269 | |||
Inventories | 4,245,643 | 4,182,973 | |||
Other current assets | 120,529 | 191,318 | |||
Total current assets | 5,496,667 | 5,750,165 | |||
Property and equipment, net of accumulated depreciation | 1,354,398 | 1,359,980 | |||
Operating Lease, Right-of-Use Asset | 2,328,974 | ||||
Goodwill | 943,502 | 943,364 | |||
Intangible assets, net | 487,802 | 510,586 | |||
Other assets, net | 45,664 | 47,815 | |||
Investment in subsidiaries | 495,756 | 474,772 | |||
Intercompany note receivable | 0 | 0 | |||
Due from intercompany, net | 179,333 | 102,886 | |||
Assets, Total | 11,332,096 | 9,189,568 | |||
Current liabilities: | |||||
Accounts payable | 3,076,126 | 2,954,632 | |||
Accrued expenses | 503,766 | 603,460 | |||
Other current liabilities | 483,144 | 91,994 | |||
Total current liabilities | 4,063,036 | 3,650,086 | |||
Long-term debt | 0 | 0 | |||
Noncurrent operating lease liabilities | 2,021,182 | ||||
Deferred income taxes | 297,743 | 306,127 | |||
Other long-term liabilities | 123,816 | 238,500 | |||
Intercompany note payable | 749,248 | 1,048,993 | |||
Due to intercompany, net | 0 | 0 | |||
Commitments and contingencies | |||||
Stockholders' equity | 4,077,071 | 3,945,862 | |||
Liabilities and Stockholders' Equity, Total | 11,332,096 | 9,189,568 | |||
Non-Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 51,818 | 110,922 | 72,228 | 64,317 | |
Receivables, net | 39,436 | 34,703 | |||
Inventories | 188,338 | 179,574 | |||
Other current assets | 4,158 | 3,987 | |||
Total current assets | 283,750 | 329,186 | |||
Property and equipment, net of accumulated depreciation | 8,658 | 8,928 | |||
Operating Lease, Right-of-Use Asset | 42,388 | ||||
Goodwill | 47,738 | 46,873 | |||
Intangible assets, net | 39,900 | 40,007 | |||
Other assets, net | 577 | 564 | |||
Investment in subsidiaries | 0 | 0 | |||
Intercompany note receivable | 0 | 0 | |||
Due from intercompany, net | 354,702 | 297,580 | |||
Assets, Total | 777,713 | 723,138 | |||
Current liabilities: | |||||
Accounts payable | 200,829 | 218,158 | |||
Accrued expenses | 24,426 | 16,237 | |||
Other current liabilities | 8,505 | (1,975) | |||
Total current liabilities | 233,760 | 232,420 | |||
Long-term debt | 0 | 0 | |||
Noncurrent operating lease liabilities | 32,991 | ||||
Deferred income taxes | 14,955 | 14,634 | |||
Other long-term liabilities | 251 | 1,312 | |||
Intercompany note payable | 0 | 0 | |||
Due to intercompany, net | 0 | 0 | |||
Commitments and contingencies | |||||
Stockholders' equity | 495,756 | 474,772 | |||
Liabilities and Stockholders' Equity, Total | 777,713 | 723,138 | |||
Consolidation, Eliminations [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | (4) | 0 | $ (23) | $ (23) | |
Receivables, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Other current assets | 0 | 0 | |||
Total current assets | (4) | 0 | |||
Property and equipment, net of accumulated depreciation | 0 | 0 | |||
Operating Lease, Right-of-Use Asset | 0 | ||||
Goodwill | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Other assets, net | (2,294) | (2,408) | |||
Investment in subsidiaries | (4,572,827) | (4,420,634) | |||
Intercompany note receivable | (749,248) | (1,048,993) | |||
Due from intercompany, net | (534,035) | (400,466) | |||
Assets, Total | (5,858,408) | (5,872,501) | |||
Current liabilities: | |||||
Accounts payable | 0 | 0 | |||
Accrued expenses | 0 | 0 | |||
Other current liabilities | (4) | 0 | |||
Total current liabilities | (4) | 0 | |||
Long-term debt | 0 | 0 | |||
Noncurrent operating lease liabilities | 0 | ||||
Deferred income taxes | (2,294) | (2,408) | |||
Other long-term liabilities | 0 | 0 | |||
Intercompany note payable | (749,248) | (1,048,993) | |||
Due to intercompany, net | (534,035) | (400,466) | |||
Commitments and contingencies | |||||
Stockholders' equity | (4,572,827) | (4,420,634) | |||
Liabilities and Stockholders' Equity, Total | $ (5,858,408) | $ (5,872,501) |
Condensed Consolidated Income S
Condensed Consolidated Income Statement (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 20, 2019 | Apr. 21, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||
Net sales | $ 2,952,036 | $ 2,873,848 |
Cost of sales, including purchasing and warehousing costs | 1,647,424 | 1,601,564 |
Gross profit | 1,304,612 | 1,272,284 |
Selling, general and administrative expenses | 1,096,672 | 1,074,043 |
Operating income (loss) | 207,940 | 198,241 |
Other, net: | ||
Interest expense | (14,944) | (17,682) |
Other income (expense), net | (2,238) | 458 |
Total other, net | (17,182) | (17,224) |
Income before provision for income taxes | 190,758 | 181,017 |
Provision for income taxes | 48,258 | 44,290 |
Income (loss) before equity in earnings of subsidiaries | 142,500 | 136,727 |
Equity in earnings of subsidiaries | 0 | 0 |
Net income | 142,500 | 136,727 |
Parent Company [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | 0 | 0 |
Cost of sales, including purchasing and warehousing costs | 0 | 0 |
Gross profit | 0 | 0 |
Selling, general and administrative expenses | 12,119 | 4,811 |
Operating income (loss) | (12,119) | (4,811) |
Other, net: | ||
Interest expense | (13,512) | (16,078) |
Other income (expense), net | 26,211 | 21,257 |
Total other, net | 12,699 | 5,179 |
Income before provision for income taxes | 580 | 368 |
Provision for income taxes | 1,300 | 1,263 |
Income (loss) before equity in earnings of subsidiaries | (720) | (895) |
Equity in earnings of subsidiaries | 143,220 | 137,622 |
Net income | 142,500 | 136,727 |
Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | 2,852,700 | 2,775,903 |
Cost of sales, including purchasing and warehousing costs | 1,598,539 | 1,551,041 |
Gross profit | 1,254,161 | 1,224,862 |
Selling, general and administrative expenses | 1,077,144 | 1,054,389 |
Operating income (loss) | 177,017 | 170,473 |
Other, net: | ||
Interest expense | (1,406) | (1,604) |
Other income (expense), net | (6,891) | (2,993) |
Total other, net | (8,297) | (4,597) |
Income before provision for income taxes | 168,720 | 165,876 |
Provision for income taxes | 42,294 | 40,452 |
Income (loss) before equity in earnings of subsidiaries | 126,426 | 125,424 |
Equity in earnings of subsidiaries | 16,794 | 12,198 |
Net income | 143,220 | 137,622 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | 147,290 | 152,119 |
Cost of sales, including purchasing and warehousing costs | 96,839 | 104,697 |
Gross profit | 50,451 | 47,422 |
Selling, general and administrative expenses | 31,409 | 30,582 |
Operating income (loss) | 19,042 | 16,840 |
Other, net: | ||
Interest expense | (26) | 0 |
Other income (expense), net | 2,442 | (2,067) |
Total other, net | 2,416 | (2,067) |
Income before provision for income taxes | 21,458 | 14,773 |
Provision for income taxes | 4,664 | 2,575 |
Income (loss) before equity in earnings of subsidiaries | 16,794 | 12,198 |
Equity in earnings of subsidiaries | 0 | 0 |
Net income | 16,794 | 12,198 |
Consolidation, Eliminations [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | (47,954) | (54,174) |
Cost of sales, including purchasing and warehousing costs | (47,954) | (54,174) |
Gross profit | 0 | 0 |
Selling, general and administrative expenses | (24,000) | (15,739) |
Operating income (loss) | 24,000 | 15,739 |
Other, net: | ||
Interest expense | 0 | 0 |
Other income (expense), net | (24,000) | (15,739) |
Total other, net | (24,000) | (15,739) |
Income before provision for income taxes | 0 | 0 |
Provision for income taxes | 0 | 0 |
Income (loss) before equity in earnings of subsidiaries | 0 | 0 |
Equity in earnings of subsidiaries | (160,014) | (149,820) |
Net income | $ (160,014) | $ (149,820) |
Condensed Consolidating Compreh
Condensed Consolidating Comprehensive Income Statement (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 20, 2019 | Apr. 21, 2018 | |
Condensed Consolidating Comprehensive Income Statement [Line Items] | ||
Net income | $ 142,500 | $ 136,727 |
Other Comprehensive Income (Loss) | 4,155 | (3,858) |
Comprehensive income | 146,655 | 132,869 |
Parent Company [Member] | ||
Condensed Consolidating Comprehensive Income Statement [Line Items] | ||
Net income | 142,500 | 136,727 |
Other Comprehensive Income (Loss) | 4,155 | (3,858) |
Comprehensive income | 146,655 | 132,869 |
Guarantor Subsidiaries [Member] | ||
Condensed Consolidating Comprehensive Income Statement [Line Items] | ||
Net income | 143,220 | 137,622 |
Other Comprehensive Income (Loss) | 4,155 | (3,858) |
Comprehensive income | 147,375 | 133,764 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Consolidating Comprehensive Income Statement [Line Items] | ||
Net income | 16,794 | 12,198 |
Other Comprehensive Income (Loss) | 4,060 | (3,767) |
Comprehensive income | 20,854 | 8,431 |
Consolidation, Eliminations [Member] | ||
Condensed Consolidating Comprehensive Income Statement [Line Items] | ||
Net income | (160,014) | (149,820) |
Other Comprehensive Income (Loss) | (8,215) | 7,625 |
Comprehensive income | $ (168,229) | $ (142,195) |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 20, 2019 | Apr. 21, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 204,542 | $ 153,970 |
Net cash used in investing activities | ||
Purchases of property and equipment | (61,312) | (34,474) |
Proceeds from sales of property and equipment | 553 | 530 |
Net cash used in investing activities | (60,759) | (33,944) |
Net cash provided by (used in) financing activities | ||
Increase (decrease) in bank overdrafts | (50,578) | (12,101) |
Redemption of senior unsecured notes | (310,047) | 0 |
Dividends paid | (8,723) | (8,930) |
Proceeds from the issuance of common stock | 678 | 754 |
Tax withholdings related to the exercise of stock appreciation rights | (99) | (93) |
Repurchase of common stock | (134,291) | (5,224) |
Other, net | (116) | (1,163) |
Net Cash Provided by (Used in) Financing Activities | (503,176) | (26,757) |
Effect of exchange rate changes on cash | 196 | (1,063) |
Cash and Cash Equivalents, Period Increase (Decrease) | (359,197) | 92,206 |
Cash and cash equivalents, beginning of period | 896,527 | 546,937 |
Cash and cash equivalents, end of period | 537,330 | 639,143 |
Parent Company [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Net cash used in investing activities | ||
Purchases of property and equipment | 0 | 0 |
Proceeds from sales of property and equipment | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Net cash provided by (used in) financing activities | ||
Increase (decrease) in bank overdrafts | 0 | 0 |
Redemption of senior unsecured notes | 0 | |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common stock | 0 | 0 |
Tax withholdings related to the exercise of stock appreciation rights | 0 | 0 |
Repurchase of common stock | 0 | 0 |
Other, net | 4 | 0 |
Net Cash Provided by (Used in) Financing Activities | 4 | 0 |
Effect of exchange rate changes on cash | 0 | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | 4 | 0 |
Cash and cash equivalents, beginning of period | 0 | 23 |
Cash and cash equivalents, end of period | 4 | 23 |
Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 264,504 | 142,408 |
Net cash used in investing activities | ||
Purchases of property and equipment | (60,966) | (34,153) |
Proceeds from sales of property and equipment | 552 | 486 |
Net cash used in investing activities | (60,414) | (33,667) |
Net cash provided by (used in) financing activities | ||
Increase (decrease) in bank overdrafts | (51,585) | (9,790) |
Redemption of senior unsecured notes | (310,047) | |
Dividends paid | (8,723) | (8,930) |
Proceeds from the issuance of common stock | 678 | 754 |
Tax withholdings related to the exercise of stock appreciation rights | (99) | (93) |
Repurchase of common stock | (134,291) | (5,224) |
Other, net | (116) | (1,163) |
Net Cash Provided by (Used in) Financing Activities | (504,183) | (24,446) |
Effect of exchange rate changes on cash | 0 | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | (300,093) | 84,295 |
Cash and cash equivalents, beginning of period | 785,605 | 482,620 |
Cash and cash equivalents, end of period | 485,512 | 566,915 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (59,962) | 11,562 |
Net cash used in investing activities | ||
Purchases of property and equipment | (346) | (321) |
Proceeds from sales of property and equipment | 1 | 44 |
Net cash used in investing activities | (345) | (277) |
Net cash provided by (used in) financing activities | ||
Increase (decrease) in bank overdrafts | 1,007 | (2,311) |
Redemption of senior unsecured notes | 0 | |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common stock | 0 | 0 |
Tax withholdings related to the exercise of stock appreciation rights | 0 | 0 |
Repurchase of common stock | 0 | 0 |
Other, net | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | 1,007 | (2,311) |
Effect of exchange rate changes on cash | 196 | (1,063) |
Cash and Cash Equivalents, Period Increase (Decrease) | (59,104) | 7,911 |
Cash and cash equivalents, beginning of period | 110,922 | 64,317 |
Cash and cash equivalents, end of period | 51,818 | 72,228 |
Consolidation, Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Net cash used in investing activities | ||
Purchases of property and equipment | 0 | 0 |
Proceeds from sales of property and equipment | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Net cash provided by (used in) financing activities | ||
Increase (decrease) in bank overdrafts | 0 | 0 |
Redemption of senior unsecured notes | 0 | |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common stock | 0 | 0 |
Tax withholdings related to the exercise of stock appreciation rights | 0 | 0 |
Repurchase of common stock | 0 | 0 |
Other, net | (4) | 0 |
Net Cash Provided by (Used in) Financing Activities | (4) | 0 |
Effect of exchange rate changes on cash | 0 | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | (4) | 0 |
Cash and cash equivalents, beginning of period | 0 | (23) |
Cash and cash equivalents, end of period | $ (4) | $ (23) |