Document and Entity Information
Document and Entity Information Document Document - shares | 6 Months Ended | |
Jul. 13, 2019 | Aug. 09, 2019 | |
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Local Phone Number | 362-4911 | |
Entity Incorporation, State or Country Code | DE | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Registrant Name | ADVANCE AUTO PARTS, INC. | |
Entity Address, Address Line One | 2635 East Millbrook Road | |
Entity Address, City or Town | Raleigh | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27604 | |
City Area Code | 540 | |
Trading Symbol | AAP | |
Entity Central Index Key | 0001158449 | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 13, 2019 | |
Entity File Number | 001-16797 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 71,386,990 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Tax Identification Number | 54-2049910 | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 13, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 747,719 | $ 896,527 |
Receivables, net | 713,061 | 624,972 |
Inventories | 4,374,933 | 4,362,547 |
Other current assets | 126,758 | 198,408 |
Total current assets | 5,962,471 | 6,082,454 |
Property and equipment, net of accumulated depreciation of $1,985,197 and $1,918,502 | 1,381,388 | 1,368,985 |
Operating lease right-of-use assets | 2,360,019 | 0 |
Goodwill | 992,432 | 990,237 |
Intangible assets, net | 521,969 | 550,593 |
Other assets | 49,667 | 48,379 |
Assets, Total | 11,267,946 | 9,040,648 |
Current liabilities: | ||
Accounts payable | 3,317,972 | 3,172,790 |
Accrued expenses | 587,119 | 623,141 |
Other current liabilities | 467,314 | 90,019 |
Total current liabilities | 4,372,405 | 3,885,950 |
Long-term debt | 746,951 | 1,045,720 |
Noncurrent operating lease liabilities | 2,032,350 | 0 |
Deferred income taxes | 313,903 | 318,353 |
Other long-term liabilities | 131,035 | 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 | 715,747 | 694,797 |
Treasury stock, at cost | (572,592) | (425,954) |
Accumulated other comprehensive loss | (33,481) | (44,193) |
Retained earnings | 3,561,620 | 3,326,155 |
Total stockholders’ equity | 3,671,302 | 3,550,813 |
Liabilities and Stockholders' Equity, Total | $ 11,267,946 | $ 9,040,648 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 13, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Property and equipment, net of accumulated depreciation of $1,985,197 and $1,918,502 | $ 1,985,197 | $ 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 | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2019 | Jul. 14, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,332,246 | $ 2,326,652 | $ 5,284,283 | $ 5,200,500 |
Cost of sales, including purchasing and warehousing costs | 1,322,808 | 1,315,093 | 2,970,233 | 2,916,658 |
Gross profit | 1,009,438 | 1,011,559 | 2,314,050 | 2,283,842 |
Selling, general and administrative expenses | 838,666 | 844,018 | 1,935,338 | 1,918,061 |
Operating income | 170,772 | 167,541 | 378,712 | 365,781 |
Other, net: | ||||
Interest expense | (8,675) | (12,855) | (23,619) | (30,537) |
Other income, net | 4,113 | 2,785 | 1,874 | 3,243 |
Total other, net | (4,562) | (10,070) | (21,745) | (27,294) |
Income before provision for income taxes | 166,210 | 157,471 | 356,967 | 338,487 |
Provision for income taxes | 41,390 | 39,635 | 89,647 | 83,925 |
Net income | $ 124,820 | $ 117,836 | $ 267,320 | $ 254,562 |
Basic earnings per common share | $ 1.74 | $ 1.59 | $ 3.73 | $ 3.44 |
Weighted average common shares outstanding | 71,738 | 74,054 | 71,767 | 74,011 |
Diluted earnings per common share | $ 1.73 | $ 1.59 | $ 3.71 | $ 3.43 |
Weighted average common shares outstanding | 72,008 | 74,244 | 72,063 | 74,222 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2019 | Jul. 14, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | |
Net income | $ 124,820 | $ 117,836 | $ 267,320 | $ 254,562 |
Other comprehensive (loss) income: | ||||
Changes in net unrecognized other postretirement benefit (costs) income, net of tax of $25, $24, $8 and $56 | (69) | (67) | 26 | (158) |
Currency translation adjustments | 6,626 | (7,035) | 10,686 | (10,802) |
Total other comprehensive income (loss) | 6,557 | (7,102) | 10,712 | (10,960) |
Comprehensive income | $ 131,377 | $ 110,734 | $ 278,032 | $ 243,602 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2019 | Jul. 14, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) [Abstract] | ||||
Changes in net unrecognized other postretirement benefit (costs) income, net of tax of $25, $24, $8 and $56 | $ 25 | $ 24 | $ 8 | $ 56 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDES' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2019 | Jul. 14, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | |
Statement of Stockholders' Equity (Parenthetical) [Abstract] | ||||
Cash dividends declared (per common share) | $ 0.06 | $ 0.06 | $ 0.12 | $ 0.12 |
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 | 254,562 | 254,562 | ||||
Total other comprehensive income (loss) | (10,960) | (10,960) | ||||
Issuance of shares upon the exercise of stock appreciation rights | 0 | |||||
Issuance of shares upon the exercise of stock appreciation rights (in shares) | 5 | |||||
Tax withholdings related to the exercise of stock appreciation rights | (304) | (304) | ||||
Restricted stock units and deferred stock units vested | 0 | |||||
Restricted stock and deferred stock units vested (in shares) | 163 | |||||
Share-based compensation | 12,413 | 12,413 | ||||
Repurchases of common stock (in shares) | (48) | |||||
Stock issued under employee stock purchase plan | 1,697 | 1,697 | ||||
Stock issued under employee stock purchase plan (in shares) | 25 | |||||
Repurchases of common stock | (5,657) | (5,657) | ||||
Cash dividends declared | (8,962) | (8,962) | ||||
Other | (36) | (36) | ||||
Balance at Jul. 14, 2018 | 3,657,949 | $ 8 | 678,416 | (150,257) | (35,914) | 3,165,696 |
Balance (in shares) at Jul. 14, 2018 | 74,081 | |||||
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 | |||||
Net income | 117,836 | 117,836 | ||||
Total other comprehensive income (loss) | (7,102) | (7,102) | ||||
Issuance of shares upon the exercise of stock appreciation rights | 0 | |||||
Issuance of shares upon the exercise of stock appreciation rights (in shares) | 3 | |||||
Tax withholdings related to the exercise of stock appreciation rights | (211) | (211) | ||||
Restricted stock units and deferred stock units vested | 0 | |||||
Restricted stock and deferred stock units vested (in shares) | 44 | |||||
Share-based compensation | 4,771 | 4,771 | ||||
Repurchases of common stock (in shares) | (3) | |||||
Stock issued under employee stock purchase plan | 943 | 943 | ||||
Stock issued under employee stock purchase plan (in shares) | 7 | |||||
Repurchases of common stock | (433) | (433) | ||||
Cash dividends declared | (4,476) | (4,476) | ||||
Balance at Jul. 14, 2018 | 3,657,949 | $ 8 | 678,416 | (150,257) | (35,914) | 3,165,696 |
Balance (in shares) at Jul. 14, 2018 | 74,081 | |||||
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 | 267,320 | 267,320 | ||||
Cumulative effect of accounting change from adoption of ASU 2016-02, net of tax | (23,165) | (23,165) | ||||
Total other comprehensive income (loss) | 10,712 | 10,712 | ||||
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 | (123) | (123) | ||||
Restricted stock units and deferred stock units vested | 0 | |||||
Restricted stock and deferred stock units vested (in shares) | 145 | |||||
Share-based compensation | 19,425 | 19,425 | ||||
Repurchases of common stock (in shares) | (921) | |||||
Stock issued under employee stock purchase plan | 1,648 | 1,648 | ||||
Stock issued under employee stock purchase plan (in shares) | 11 | |||||
Repurchases of common stock | (146,638) | (146,638) | ||||
Cash dividends declared | (8,690) | (8,690) | ||||
Balance at Jul. 13, 2019 | 3,671,302 | $ 8 | 715,747 | (572,592) | (33,481) | 3,561,620 |
Balance (in shares) at Jul. 13, 2019 | 71,697 | |||||
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 | |||||
Net income | 124,820 | 124,820 | ||||
Total other comprehensive income (loss) | 6,557 | 6,557 | ||||
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 | (24) | (24) | ||||
Restricted stock units and deferred stock units vested | 0 | |||||
Restricted stock and deferred stock units vested (in shares) | 34 | |||||
Share-based compensation | 8,441 | 8,441 | ||||
Repurchases of common stock (in shares) | (81) | |||||
Stock issued under employee stock purchase plan | 970 | 970 | ||||
Stock issued under employee stock purchase plan (in shares) | 6 | |||||
Repurchases of common stock | (12,347) | (12,347) | ||||
Cash dividends declared | (4,338) | (4,338) | ||||
Balance at Jul. 13, 2019 | $ 3,671,302 | $ 8 | $ 715,747 | $ (572,592) | $ (33,481) | $ 3,561,620 |
Balance (in shares) at Jul. 13, 2019 | 71,697 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 13, 2019 | Jul. 14, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 267,320 | $ 254,562 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 123,257 | 128,244 |
Share-based compensation | 19,425 | 12,413 |
Loss and impairment of long-lived assets | 2,297 | 4,757 |
Provision for deferred income taxes | 2,930 | 11,195 |
Other | 11,719 | 1,180 |
Net change in: | ||
Receivables, net | (85,941) | (59,995) |
Inventories | (5,685) | 2,140 |
Accounts payable | 142,002 | 19,083 |
Accrued expenses | (21,272) | 112,214 |
Other assets and liabilities, net | 36,109 | (41,825) |
Net cash provided by operating activities | 492,161 | 443,968 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (111,425) | (61,815) |
Proceeds from sales of property and equipment | 8,566 | 578 |
Net cash used in investing activities | (102,859) | (61,237) |
Cash flows from financing activities: | ||
Decrease in bank overdrafts | (70,265) | (8,362) |
Redemption of senior unsecured notes | (310,047) | 0 |
Dividends paid | (13,028) | (13,398) |
Proceeds from the issuance of common stock | 1,648 | 1,697 |
Tax withholdings related to the exercise of stock appreciation rights | (123) | (304) |
Repurchases of common stock | (146,638) | (5,657) |
Other, net | (113) | 784 |
Net cash used in financing activities | (538,566) | (25,240) |
Effect of exchange rate changes on cash | 456 | (2,179) |
Net (decrease) increase in cash and cash equivalents | (148,808) | 355,312 |
Cash and cash equivalents, beginning of period | 896,527 | 546,937 |
Cash and cash equivalents, end of period | 747,719 | 902,249 |
Non-cash transactions: | ||
Accrued purchases of property and equipment | $ 30,068 | $ 9,075 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jul. 13, 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 (“Professional”), and “do-it-yourself” (“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 July 13, 2019 , we operated a total of 4,912 stores and 150 Worldpac branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. In addition, as of July 13, 2019 , we served 1,250 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 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 Acounting Policies
Significant Acounting Policies | 6 Months Ended |
Jul. 13, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies: Revenues The following table summarizes disaggregated revenue from contracts with customers by product group: Twelve Weeks Ended Twenty-Eight Weeks Ended July 13, 2019 July 14, 2018 July 13, 2019 July 14, 2018 Percentage of Net sales, by product group: Parts and batteries 67 % 66 % 66 % 65 % Accessories and chemicals 21 20 21 20 Engine maintenance 11 13 12 14 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % We had no material contract assets, contract liabilities or costs to obtain and fulfill contracts recorded on the condensed consolidated balance sheets as of July 13, 2019 and December 29, 2018 . 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 operating lease right-of-use assets. For the twenty-eight weeks ended July 13, 2019 |
Inventories
Inventories | 6 Months Ended |
Jul. 13, 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 89% of inventories as of July 13, 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 twenty-eight weeks ended July 13, 2019 and prior years. We recorded an increase to Cost of sales of $16.5 million for the twelve weeks ended July 13, 2019 , a reduction to Cost of sales of $12.3 million for the twelve weeks ended July 14, 2018 , an increase to Cost of sales of $42.9 million for the twenty-eight weeks ended July 13, 2019 and a reduction to Cost of sales of $32.3 million for the twenty-eight weeks ended July 14, 2018 to state inventories at LIFO. An actual valuation of inventory under the LIFO method is performed by us at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on our estimates of expected inventory levels and costs at the end of the year. Inventory balances were as follows: (in thousands) July 13, 2019 December 29, 2018 Inventories at first in, first out (“FIFO”) $ 4,174,944 $ 4,119,617 Adjustments to state inventories at LIFO 199,989 242,930 Inventories at LIFO $ 4,374,933 $ 4,362,547 |
Exit Activities
Exit Activities | 6 Months Ended |
Jul. 13, 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, our lease liabilities for closed facilities are included within the lease liability recorded in Other current liabilities and Noncurrent operating lease liabilities, and the operating lease right-of-use assets recorded upon transition was recorded net of the previously recorded closed facility lease obligation. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jul. 13, 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 $7.3 million and $8.5 million for the twelve weeks ended July 13, 2019 and July 14, 2018 and $17.0 million and $21.9 million for the twenty-eight weeks ended July 13, 2019 and July 14, 2018 . |
Receivables, net
Receivables, net | 6 Months Ended |
Jul. 13, 2019 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net Receivables consist of the following: (in thousands) July 13, 2019 December 29, 2018 Trade $ 497,338 $ 397,909 Vendor 222,377 228,024 Other 10,060 17,081 Total receivables 729,775 643,014 Less: allowance for doubtful accounts (16,714 ) (18,042 ) Receivables, net $ 713,061 $ 624,972 |
Long-term Debt and Fair Value o
Long-term Debt and Fair Value of Financial Instruments | 6 Months Ended |
Jul. 13, 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) July 13, 2019 December 29, 2018 Total long-term debt $ 746,951 $ 1,045,930 Less: current portion of long-term debt — (210 ) Long-term debt, excluding current portion $ 746,951 $ 1,045,720 Fair value of long-term debt $ 793,000 $ 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 July 13, 2019 and December 29, 2018 we had no outstanding borrowings under the unsecured revolving credit facility (the “2017 Credit Agreement”) and borrowing availability was $1.0 billion and $998.0 million . As of July 13, 2019 and December 29, 2018 , we had no letters of credit and $2.0 million of letters of credit outstanding under the 2017 Credit Agreement. As of July 13, 2019 and December 29, 2018 , we had letters of credit relating to our bilateral letter of credit facility outstanding of $99.9 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 July 13, 2019 . Senior Unsecured Notes On February 28, 2019, we redeemed all $300.0 million aggregate principal amount of our outstanding 5.75% senior unsecured notes that were issued in April 2010 at 99.587% of the principal amount (the “2020 Notes”). During the sixteen weeks ended April 20, 2019, 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 $26.0 million and $24.3 million as of July 13, 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 $49.0 million and $53.9 million as of July 13, 2019 and December 29, 2018 . We believe that the likelihood of performance under these guarantees is remote. |
Leases
Leases | 6 Months Ended |
Jul. 13, 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 years 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 are typically 3 years to 5 years . Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease liabilities consist of the following: (in thousands) July 13, 2019 Total operating lease liabilities $ 2,481,431 Less: Current portion of operating lease liabilities (449,081 ) Noncurrent operating lease liabilities $ 2,032,350 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 selling, general and administrative expenses (“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: Twelve Weeks Ended Twenty-Eight Weeks Ended (in thousands) July 13, 2019 July 13, 2019 Operating lease cost $ 124,765 $ 284,811 Variable lease cost 32,856 82,546 Total lease cost $ 157,621 $ 367,357 The future maturity of lease liabilities are as follows: (in thousands) July 13, 2019 Remainder of 2019 $ 230,520 2020 560,102 2021 458,167 2022 362,804 2023 317,640 Thereafter 968,831 Total lease payments $ 2,898,064 Less: Imputed interest (416,633 ) Total operating lease liabilities $ 2,481,431 Operating lease payments include $149.5 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $26.1 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 4.1% as of July 13, 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: Twenty-Eight Weeks Ended (in thousands) July 13, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 278,323 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 201,856 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 were as follows: 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 | 6 Months Ended |
Jul. 13, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranty Liabilities | Warranty Liabilities The following table presents changes in our warranty reserves: Twenty-Eight Weeks Ended Fifty-Two Weeks Ended (in thousands) July 13, 2019 December 29, 2018 Warranty reserve, beginning of period $ 45,280 $ 49,024 Additions to warranty reserves 23,248 43,200 Reserves utilized (23,211 ) (46,944 ) Warranty reserve, end of period $ 45,317 $ 45,280 |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jul. 13, 2019 | |
Stock Repurchases: [Abstract] | |
Treasury Stock | Share Repurchase Program Our share repurchase program permits the repurchase of our common stock on the open market and 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 twelve weeks ended July 13, 2019 and July 14, 2018 , we purchased 0.1 million and no shares of our common stock under the share repurchase program. The shares repurchased during the twelve weeks ended July 13, 2019 were at an aggregate cost of $10.9 million , or an average price of $151.58 per share. During the twenty-eight weeks ended July 13, 2019 and July 14, 2018 , we repurchased 0.9 million shares and no shares of our common stock under our share repurchase program. The shares repurchased during the twenty-eight weeks ended July 13, 2019 were at an aggregate cost of $138.1 million , or an average price of $158.98 per share. We had $189.1 million remaining under our share repurchase program as of July 13, 2019 . On August 7, 2019 , our Board of Directors authorized a $400.0 million share repurchase program, which replaced the remaining portion of our $600.0 million share repurchase program authorized in August 2018. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jul. 13, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The computation of basic and diluted earnings per share are as follows: Twelve Weeks Ended Twenty-Eight Weeks Ended (in thousands, except per share data) July 13, 2019 July 14, 2018 July 13, 2019 July 14, 2018 Numerator Net income applicable to common shares $ 124,820 $ 117,836 $ 267,320 $ 254,562 Denominator Basic weighted average common shares 71,738 74,054 71,767 74,011 Dilutive impact of share-based awards 270 190 296 211 Diluted weighted average common shares 72,008 74,244 72,063 74,222 Basic earnings per common share $ 1.74 $ 1.59 $ 3.73 $ 3.44 Diluted earnings per common share $ 1.73 $ 1.59 $ 3.71 $ 3.43 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 13, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the twenty-eight weeks ended July 13, 2019 , we granted 225 thousand time-based restricted stock units (“RSUs”), 55 thousand performance-based RSUs and 28 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 twenty-eight weeks ended July 13, 2019 were $159.34 , $159.80 and $165.70 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 twelve and twenty-eight weeks ended July 13, 2019 was $2.3 million and $5.0 million . Total income tax benefit related to share-based compensation expense for the twelve and twenty-eight weeks ended July 14, 2018 was $1.2 million and $3.0 million . As of July 13, 2019 , there was $76.5 million of unrecognized compensation expense related to all share-based awards that is expected to be recognized over a weighted average period of 1.7 years . |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 6 Months Ended |
Jul. 13, 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 July 13, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 690,002 $ 57,717 $ — $ 747,719 Receivables, net — 663,858 49,203 — 713,061 Inventories — 4,189,502 185,431 — 4,374,933 Other current assets 1,403 119,472 5,883 — 126,758 Total current assets 1,403 5,662,834 298,234 — 5,962,471 Property and equipment, net of accumulated depreciation 66 1,372,713 8,609 — 1,381,388 Operating lease right-of-use assets — 2,317,564 42,455 — 2,360,019 Goodwill — 943,364 49,068 — 992,432 Intangible assets, net — 481,450 40,519 — 521,969 Other assets, net 1,694 49,060 610 (1,697 ) 49,667 Investment in subsidiaries 4,214,313 519,888 — (4,734,201 ) — Intercompany note receivable 749,283 — — (749,283 ) — Due from intercompany, net — 237,570 307,650 (545,220 ) — $ 4,966,759 $ 11,584,443 $ 747,145 $ (6,030,401 ) $ 11,267,946 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ — $ 3,122,680 $ 195,292 $ — $ 3,317,972 Accrued expenses 3,286 559,756 24,077 — 587,119 Other current liabilities — 508,720 (41,406 ) — 467,314 Total current liabilities 3,286 4,191,156 177,963 — 4,372,405 Long-term debt 746,951 — — — 746,951 Noncurrent operating lease liabilities — 1,999,384 32,966 — 2,032,350 Deferred income taxes — 299,269 16,328 (1,694 ) 313,903 Other long-term liabilities — 131,038 — (3 ) 131,035 Intercompany note payable — 749,283 — (749,283 ) — Due to intercompany, net 545,220 — — (545,220 ) — Commitments and contingencies Stockholders' equity 3,671,302 4,214,313 519,888 (4,734,201 ) 3,671,302 $ 4,966,759 $ 11,584,443 $ 747,145 $ (6,030,401 ) $ 11,267,946 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 Twelve Weeks Ended July 13, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 2,234,054 $ 126,967 $ (28,775 ) $ 2,332,246 Cost of sales, including purchasing and warehousing costs — 1,268,783 82,800 (28,775 ) 1,322,808 Gross profit — 965,271 44,167 — 1,009,438 Selling, general and administrative expenses 5,852 817,938 22,678 (7,802 ) 838,666 Operating (loss) income (5,852 ) 147,333 21,489 7,802 170,772 Other, net: Interest expense (7,949 ) (529 ) (197 ) — (8,675 ) Other income (expense), net 14,062 (3,695 ) 1,548 (7,802 ) 4,113 Total other, net 6,113 (4,224 ) 1,351 (7,802 ) (4,562 ) Income before provision for income taxes 261 143,109 22,840 — 166,210 Provision for income taxes 422 35,507 5,461 — 41,390 (Loss) income before equity in earnings of subsidiaries (161 ) 107,602 17,379 — 124,820 Equity in earnings of subsidiaries 124,981 17,379 — (142,360 ) — Net income $ 124,820 $ 124,981 $ 17,379 $ (142,360 ) $ 124,820 Condensed Consolidating Statement of Operations For the Twelve Weeks Ended July 14, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 2,231,229 $ 138,070 $ (42,647 ) $ 2,326,652 Cost of sales, including purchasing and warehousing costs — 1,263,912 93,828 (42,647 ) 1,315,093 Gross profit — 967,317 44,242 — 1,011,559 Selling, general and administrative expenses 4,848 827,733 23,241 (11,804 ) 844,018 Operating (loss) income (4,848 ) 139,584 21,001 11,804 167,541 Other, net: Interest expense (12,059 ) (796 ) — — (12,855 ) Other income (expense), net 16,991 (1,211 ) (1,191 ) (11,804 ) 2,785 Total other, net 4,932 (2,007 ) (1,191 ) (11,804 ) (10,070 ) Income before provision for income taxes 84 137,577 19,810 — 157,471 (Benefit) provision for income taxes (204 ) 35,512 4,327 — 39,635 Income before equity in earnings of subsidiaries 288 102,065 15,483 — 117,836 Equity in earnings of subsidiaries 117,548 15,483 — (133,031 ) — Net income $ 117,836 $ 117,548 $ 15,483 $ (133,031 ) $ 117,836 Condensed Consolidating Statement of Operations For the Twenty-Eight Weeks Ended July 13, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 5,086,755 $ 274,257 $ (76,729 ) $ 5,284,283 Cost of sales, including purchasing and warehousing costs — 2,867,323 179,639 (76,729 ) 2,970,233 Gross profit — 2,219,432 94,618 — 2,314,050 Selling, general and administrative expenses 17,970 1,895,083 54,087 (31,802 ) 1,935,338 Operating (loss) income (17,970 ) 324,349 40,531 31,802 378,712 Other, net: Interest expense (21,464 ) (1,933 ) (222 ) — (23,619 ) Other income (expense), net 40,274 (10,586 ) 3,988 (31,802 ) 1,874 Total other, net 18,810 (12,519 ) 3,766 (31,802 ) (21,745 ) Income before provision for income taxes 840 311,830 44,297 — 356,967 Provision for income taxes 1,722 77,801 10,124 — 89,647 (Loss) income before equity in earnings of subsidiaries (882 ) 234,029 34,173 — 267,320 Equity in earnings of subsidiaries 268,202 34,173 — (302,375 ) — Net income $ 267,320 $ 268,202 $ 34,173 $ (302,375 ) $ 267,320 Condensed Consolidating Statement of Operations For the Twenty-Eight Weeks Ended July 14, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 5,007,131 $ 290,190 $ (96,821 ) $ 5,200,500 Cost of sales, including purchasing and warehousing costs — 2,814,953 198,526 (96,821 ) 2,916,658 Gross profit — 2,192,178 91,664 — 2,283,842 Selling, general and administrative expenses 9,658 1,882,123 53,823 (27,543 ) 1,918,061 Operating (loss) income (9,658 ) 310,055 37,841 27,543 365,781 Other, net: Interest expense (28,137 ) (2,400 ) — — (30,537 ) Other income (expense), net 38,248 (4,204 ) (3,258 ) (27,543 ) 3,243 Total other, net 10,111 (6,604 ) (3,258 ) (27,543 ) (27,294 ) Income before provision for income taxes 453 303,451 34,583 — 338,487 Provision for income taxes 1,059 75,964 6,902 — 83,925 (Loss) income before equity in earnings of subsidiaries (606 ) 227,487 27,681 — 254,562 Equity in earnings of subsidiaries 255,168 27,681 — (282,849 ) — Net income $ 254,562 $ 255,168 $ 27,681 $ (282,849 ) $ 254,562 Condensed Consolidating Statement of Comprehensive Income For the Twelve Weeks Ended July 13, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 124,820 $ 124,981 $ 17,379 $ (142,360 ) $ 124,820 Other comprehensive income 6,557 6,557 6,626 (13,183 ) 6,557 Comprehensive income $ 131,377 $ 131,538 $ 24,005 $ (155,543 ) $ 131,377 Condensed Consolidating Statement of Comprehensive Income For the Twelve Weeks Ended July 14, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 117,836 $ 117,548 $ 15,483 $ (133,031 ) $ 117,836 Other comprehensive loss (7,102 ) (7,102 ) (7,035 ) 14,137 (7,102 ) Comprehensive income $ 110,734 $ 110,446 $ 8,448 $ (118,894 ) $ 110,734 Condensed Consolidating Statement of Comprehensive Income For the Twenty-Eight Weeks Ended July 13, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 267,320 $ 268,202 $ 34,173 $ (302,375 ) $ 267,320 Other comprehensive income 10,712 10,712 10,686 (21,398 ) 10,712 Comprehensive income $ 278,032 $ 278,914 $ 44,859 $ (323,773 ) $ 278,032 Condensed Consolidating Statement of Comprehensive Income For the Twenty-Eight Weeks Ended July 14, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 254,562 $ 255,168 $ 27,681 $ (282,849 ) $ 254,562 Other comprehensive loss (10,960 ) (10,960 ) (10,802 ) 21,762 (10,960 ) Comprehensive income $ 243,602 $ 244,208 $ 16,879 $ (261,087 ) $ 243,602 Condensed Consolidating Statement of Cash Flows For the Twenty-Eight Weeks Ended July 13, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 495,853 $ (3,692 ) $ — $ 492,161 Cash flows from investing activities: Purchases of property and equipment — (110,974 ) (451 ) — (111,425 ) Proceeds from sales of property and equipment — 8,565 1 — 8,566 Net cash used in investing activities — (102,409 ) (450 ) — (102,859 ) Cash flows from financing activities: Decrease in bank overdrafts — (20,746 ) (49,519 ) — (70,265 ) Redemption of senior unsecured notes — (310,047 ) — — (310,047 ) Dividends paid — (13,028 ) — — (13,028 ) Proceeds from the issuance of common stock — 1,648 — — 1,648 Tax withholdings related to the exercise of stock appreciation rights — (123 ) — — (123 ) Repurchases of common stock — (146,638 ) — — (146,638 ) Other, net — (113 ) — — (113 ) Net cash used in financing activities — (489,047 ) (49,519 ) — (538,566 ) Effect of exchange rate changes on cash — — 456 — 456 Net decrease in cash and cash equivalents — (95,603 ) (53,205 ) — (148,808 ) Cash and cash equivalents , beginning of period — 785,605 110,922 — 896,527 Cash and cash equivalents , end of period $ — $ 690,002 $ 57,717 $ — $ 747,719 Condensed Consolidating Statement of Cash Flows For the Twenty-Eight Weeks Ended July 14, 2018 (In thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 435,890 $ 8,078 $ — $ 443,968 Cash flows from investing activities: Purchases of property and equipment — (61,337 ) (478 ) — (61,815 ) Proceeds from sales of property and equipment — 534 44 — 578 Net cash used in investing activities — (60,803 ) (434 ) — (61,237 ) Cash flows from financing activities: Decrease in bank overdrafts — (6,760 ) (1,602 ) — (8,362 ) Dividends paid — (13,398 ) — — (13,398 ) Proceeds from the issuance of common stock — 1,697 — — 1,697 Tax withholdings related to the exercise of stock appreciation rights — (304 ) — — (304 ) Repurchases of common stock — (5,657 ) — — (5,657 ) Other, net — 784 — — 784 Net cash used in financing activities — (23,638 ) (1,602 ) — (25,240 ) Effect of exchange rate changes on cash — — (2,179 ) — (2,179 ) Net increase in cash and cash equivalents — 351,449 3,863 — 355,312 Cash and cash equivalents , beginning of period 23 482,620 64,317 (23 ) 546,937 Cash and cash equivalents , end of period $ 23 $ 834,069 $ 68,180 $ (23 ) $ 902,249 |
Significant Acounting Policies
Significant Acounting Policies (Policies) | 6 Months Ended |
Jul. 13, 2019 | |
Accounting Policies [Abstract] | |
Revenues | Revenues The following table summarizes disaggregated revenue from contracts with customers by product group: Twelve Weeks Ended Twenty-Eight Weeks Ended July 13, 2019 July 14, 2018 July 13, 2019 July 14, 2018 Percentage of Net sales, by product group: Parts and batteries 67 % 66 % 66 % 65 % Accessories and chemicals 21 20 21 20 Engine maintenance 11 13 12 14 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % We had no material contract assets, contract liabilities or costs to obtain and fulfill contracts recorded on the condensed consolidated balance sheets as of July 13, 2019 and December 29, 2018 . |
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 operating lease right-of-use assets. For the twenty-eight weeks ended July 13, 2019 |
Inventories (Policies)
Inventories (Policies) | 6 Months Ended |
Jul. 13, 2019 | |
Accounting Policies [Abstract] | |
Inventory, Policy |
Exit Activities (Policies)
Exit Activities (Policies) | 6 Months Ended |
Jul. 13, 2019 | |
Accounting Policies [Abstract] | |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy | As a result of our transition to ASU 2016-02, our lease liabilities for closed facilities are included within the lease liability recorded in Other current liabilities and Noncurrent operating lease liabilities, and the operating lease right-of-use assets recorded upon transition was recorded net of the previously recorded closed facility lease obligation. |
Long-term Debt and Fair Value_2
Long-term Debt and Fair Value of Financial Instruments (Policies) | 6 Months Ended |
Jul. 13, 2019 | |
Accounting Policies [Abstract] | |
Fair Value Measurement, Policy | 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. |
Leases (Policies)
Leases (Policies) | 6 Months Ended |
Jul. 13, 2019 | |
Lessee, Leases [Abstract] | |
Lessee, Leases | The current portion of operating lease liabilities is included in Other current liabilities in the accompanying condensed consolidated balance sheet. Substantially all of our leases are for facilities and vehicles. The initial term for facilities are typically 5 years 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 are typically 3 years to 5 years . Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Share-Based Compensation (Polic
Share-Based Compensation (Policies) | 6 Months Ended |
Jul. 13, 2019 | |
Accounting Policies [Abstract] | |
Fair Value Measurement, Policy | 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. |
Significant Acounting Policie_2
Significant Acounting Policies (Tables) | 6 Months Ended |
Jul. 13, 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: Twelve Weeks Ended Twenty-Eight Weeks Ended July 13, 2019 July 14, 2018 July 13, 2019 July 14, 2018 Percentage of Net sales, by product group: Parts and batteries 67 % 66 % 66 % 65 % Accessories and chemicals 21 20 21 20 Engine maintenance 11 13 12 14 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 13, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory balances were as follows: (in thousands) July 13, 2019 December 29, 2018 Inventories at first in, first out (“FIFO”) $ 4,174,944 $ 4,119,617 Adjustments to state inventories at LIFO 199,989 242,930 Inventories at LIFO $ 4,374,933 $ 4,362,547 |
Receivables, net (Tables)
Receivables, net (Tables) | 6 Months Ended |
Jul. 13, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Receivables consist of the following: (in thousands) July 13, 2019 December 29, 2018 Trade $ 497,338 $ 397,909 Vendor 222,377 228,024 Other 10,060 17,081 Total receivables 729,775 643,014 Less: allowance for doubtful accounts (16,714 ) (18,042 ) Receivables, net $ 713,061 $ 624,972 |
Long-term Debt and Fair Value_3
Long-term Debt and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jul. 13, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consists of the following: (in thousands) July 13, 2019 December 29, 2018 Total long-term debt $ 746,951 $ 1,045,930 Less: current portion of long-term debt — (210 ) Long-term debt, excluding current portion $ 746,951 $ 1,045,720 Fair value of long-term debt $ 793,000 $ 1,074,000 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 13, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | Operating lease liabilities consist of the following: (in thousands) July 13, 2019 Total operating lease liabilities $ 2,481,431 Less: Current portion of operating lease liabilities (449,081 ) Noncurrent operating lease liabilities $ 2,032,350 |
Lease, Cost | Total lease cost is comprised of the following: Twelve Weeks Ended Twenty-Eight Weeks Ended (in thousands) July 13, 2019 July 13, 2019 Operating lease cost $ 124,765 $ 284,811 Variable lease cost 32,856 82,546 Total lease cost $ 157,621 $ 367,357 |
Lessee, Operating Lease, Liability, Maturity | The future maturity of lease liabilities are as follows: (in thousands) July 13, 2019 Remainder of 2019 $ 230,520 2020 560,102 2021 458,167 2022 362,804 2023 317,640 Thereafter 968,831 Total lease payments $ 2,898,064 Less: Imputed interest (416,633 ) Total operating lease liabilities $ 2,481,431 |
Schedule of Other Information Relating to Lease Liabilities | Other information relating to our lease liabilities is as follows: Twenty-Eight Weeks Ended (in thousands) July 13, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 278,323 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 201,856 |
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 were as follows: 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) | 6 Months Ended |
Jul. 13, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | The following table presents changes in our warranty reserves: Twenty-Eight Weeks Ended Fifty-Two Weeks Ended (in thousands) July 13, 2019 December 29, 2018 Warranty reserve, beginning of period $ 45,280 $ 49,024 Additions to warranty reserves 23,248 43,200 Reserves utilized (23,211 ) (46,944 ) Warranty reserve, end of period $ 45,317 $ 45,280 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jul. 13, 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: Twelve Weeks Ended Twenty-Eight Weeks Ended (in thousands, except per share data) July 13, 2019 July 14, 2018 July 13, 2019 July 14, 2018 Numerator Net income applicable to common shares $ 124,820 $ 117,836 $ 267,320 $ 254,562 Denominator Basic weighted average common shares 71,738 74,054 71,767 74,011 Dilutive impact of share-based awards 270 190 296 211 Diluted weighted average common shares 72,008 74,244 72,063 74,222 Basic earnings per common share $ 1.74 $ 1.59 $ 3.73 $ 3.44 Diluted earnings per common share $ 1.73 $ 1.59 $ 3.71 $ 3.43 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 6 Months Ended |
Jul. 13, 2019 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet As of July 13, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 690,002 $ 57,717 $ — $ 747,719 Receivables, net — 663,858 49,203 — 713,061 Inventories — 4,189,502 185,431 — 4,374,933 Other current assets 1,403 119,472 5,883 — 126,758 Total current assets 1,403 5,662,834 298,234 — 5,962,471 Property and equipment, net of accumulated depreciation 66 1,372,713 8,609 — 1,381,388 Operating lease right-of-use assets — 2,317,564 42,455 — 2,360,019 Goodwill — 943,364 49,068 — 992,432 Intangible assets, net — 481,450 40,519 — 521,969 Other assets, net 1,694 49,060 610 (1,697 ) 49,667 Investment in subsidiaries 4,214,313 519,888 — (4,734,201 ) — Intercompany note receivable 749,283 — — (749,283 ) — Due from intercompany, net — 237,570 307,650 (545,220 ) — $ 4,966,759 $ 11,584,443 $ 747,145 $ (6,030,401 ) $ 11,267,946 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ — $ 3,122,680 $ 195,292 $ — $ 3,317,972 Accrued expenses 3,286 559,756 24,077 — 587,119 Other current liabilities — 508,720 (41,406 ) — 467,314 Total current liabilities 3,286 4,191,156 177,963 — 4,372,405 Long-term debt 746,951 — — — 746,951 Noncurrent operating lease liabilities — 1,999,384 32,966 — 2,032,350 Deferred income taxes — 299,269 16,328 (1,694 ) 313,903 Other long-term liabilities — 131,038 — (3 ) 131,035 Intercompany note payable — 749,283 — (749,283 ) — Due to intercompany, net 545,220 — — (545,220 ) — Commitments and contingencies Stockholders' equity 3,671,302 4,214,313 519,888 (4,734,201 ) 3,671,302 $ 4,966,759 $ 11,584,443 $ 747,145 $ (6,030,401 ) $ 11,267,946 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 Twelve Weeks Ended July 13, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 2,234,054 $ 126,967 $ (28,775 ) $ 2,332,246 Cost of sales, including purchasing and warehousing costs — 1,268,783 82,800 (28,775 ) 1,322,808 Gross profit — 965,271 44,167 — 1,009,438 Selling, general and administrative expenses 5,852 817,938 22,678 (7,802 ) 838,666 Operating (loss) income (5,852 ) 147,333 21,489 7,802 170,772 Other, net: Interest expense (7,949 ) (529 ) (197 ) — (8,675 ) Other income (expense), net 14,062 (3,695 ) 1,548 (7,802 ) 4,113 Total other, net 6,113 (4,224 ) 1,351 (7,802 ) (4,562 ) Income before provision for income taxes 261 143,109 22,840 — 166,210 Provision for income taxes 422 35,507 5,461 — 41,390 (Loss) income before equity in earnings of subsidiaries (161 ) 107,602 17,379 — 124,820 Equity in earnings of subsidiaries 124,981 17,379 — (142,360 ) — Net income $ 124,820 $ 124,981 $ 17,379 $ (142,360 ) $ 124,820 Condensed Consolidating Statement of Operations For the Twelve Weeks Ended July 14, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 2,231,229 $ 138,070 $ (42,647 ) $ 2,326,652 Cost of sales, including purchasing and warehousing costs — 1,263,912 93,828 (42,647 ) 1,315,093 Gross profit — 967,317 44,242 — 1,011,559 Selling, general and administrative expenses 4,848 827,733 23,241 (11,804 ) 844,018 Operating (loss) income (4,848 ) 139,584 21,001 11,804 167,541 Other, net: Interest expense (12,059 ) (796 ) — — (12,855 ) Other income (expense), net 16,991 (1,211 ) (1,191 ) (11,804 ) 2,785 Total other, net 4,932 (2,007 ) (1,191 ) (11,804 ) (10,070 ) Income before provision for income taxes 84 137,577 19,810 — 157,471 (Benefit) provision for income taxes (204 ) 35,512 4,327 — 39,635 Income before equity in earnings of subsidiaries 288 102,065 15,483 — 117,836 Equity in earnings of subsidiaries 117,548 15,483 — (133,031 ) — Net income $ 117,836 $ 117,548 $ 15,483 $ (133,031 ) $ 117,836 Condensed Consolidating Statement of Operations For the Twenty-Eight Weeks Ended July 13, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 5,086,755 $ 274,257 $ (76,729 ) $ 5,284,283 Cost of sales, including purchasing and warehousing costs — 2,867,323 179,639 (76,729 ) 2,970,233 Gross profit — 2,219,432 94,618 — 2,314,050 Selling, general and administrative expenses 17,970 1,895,083 54,087 (31,802 ) 1,935,338 Operating (loss) income (17,970 ) 324,349 40,531 31,802 378,712 Other, net: Interest expense (21,464 ) (1,933 ) (222 ) — (23,619 ) Other income (expense), net 40,274 (10,586 ) 3,988 (31,802 ) 1,874 Total other, net 18,810 (12,519 ) 3,766 (31,802 ) (21,745 ) Income before provision for income taxes 840 311,830 44,297 — 356,967 Provision for income taxes 1,722 77,801 10,124 — 89,647 (Loss) income before equity in earnings of subsidiaries (882 ) 234,029 34,173 — 267,320 Equity in earnings of subsidiaries 268,202 34,173 — (302,375 ) — Net income $ 267,320 $ 268,202 $ 34,173 $ (302,375 ) $ 267,320 Condensed Consolidating Statement of Operations For the Twenty-Eight Weeks Ended July 14, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 5,007,131 $ 290,190 $ (96,821 ) $ 5,200,500 Cost of sales, including purchasing and warehousing costs — 2,814,953 198,526 (96,821 ) 2,916,658 Gross profit — 2,192,178 91,664 — 2,283,842 Selling, general and administrative expenses 9,658 1,882,123 53,823 (27,543 ) 1,918,061 Operating (loss) income (9,658 ) 310,055 37,841 27,543 365,781 Other, net: Interest expense (28,137 ) (2,400 ) — — (30,537 ) Other income (expense), net 38,248 (4,204 ) (3,258 ) (27,543 ) 3,243 Total other, net 10,111 (6,604 ) (3,258 ) (27,543 ) (27,294 ) Income before provision for income taxes 453 303,451 34,583 — 338,487 Provision for income taxes 1,059 75,964 6,902 — 83,925 (Loss) income before equity in earnings of subsidiaries (606 ) 227,487 27,681 — 254,562 Equity in earnings of subsidiaries 255,168 27,681 — (282,849 ) — Net income $ 254,562 $ 255,168 $ 27,681 $ (282,849 ) $ 254,562 |
Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income For the Twelve Weeks Ended July 13, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 124,820 $ 124,981 $ 17,379 $ (142,360 ) $ 124,820 Other comprehensive income 6,557 6,557 6,626 (13,183 ) 6,557 Comprehensive income $ 131,377 $ 131,538 $ 24,005 $ (155,543 ) $ 131,377 Condensed Consolidating Statement of Comprehensive Income For the Twelve Weeks Ended July 14, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 117,836 $ 117,548 $ 15,483 $ (133,031 ) $ 117,836 Other comprehensive loss (7,102 ) (7,102 ) (7,035 ) 14,137 (7,102 ) Comprehensive income $ 110,734 $ 110,446 $ 8,448 $ (118,894 ) $ 110,734 Condensed Consolidating Statement of Comprehensive Income For the Twenty-Eight Weeks Ended July 13, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 267,320 $ 268,202 $ 34,173 $ (302,375 ) $ 267,320 Other comprehensive income 10,712 10,712 10,686 (21,398 ) 10,712 Comprehensive income $ 278,032 $ 278,914 $ 44,859 $ (323,773 ) $ 278,032 Condensed Consolidating Statement of Comprehensive Income For the Twenty-Eight Weeks Ended July 14, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 254,562 $ 255,168 $ 27,681 $ (282,849 ) $ 254,562 Other comprehensive loss (10,960 ) (10,960 ) (10,802 ) 21,762 (10,960 ) Comprehensive income $ 243,602 $ 244,208 $ 16,879 $ (261,087 ) $ 243,602 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows For the Twenty-Eight Weeks Ended July 13, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 495,853 $ (3,692 ) $ — $ 492,161 Cash flows from investing activities: Purchases of property and equipment — (110,974 ) (451 ) — (111,425 ) Proceeds from sales of property and equipment — 8,565 1 — 8,566 Net cash used in investing activities — (102,409 ) (450 ) — (102,859 ) Cash flows from financing activities: Decrease in bank overdrafts — (20,746 ) (49,519 ) — (70,265 ) Redemption of senior unsecured notes — (310,047 ) — — (310,047 ) Dividends paid — (13,028 ) — — (13,028 ) Proceeds from the issuance of common stock — 1,648 — — 1,648 Tax withholdings related to the exercise of stock appreciation rights — (123 ) — — (123 ) Repurchases of common stock — (146,638 ) — — (146,638 ) Other, net — (113 ) — — (113 ) Net cash used in financing activities — (489,047 ) (49,519 ) — (538,566 ) Effect of exchange rate changes on cash — — 456 — 456 Net decrease in cash and cash equivalents — (95,603 ) (53,205 ) — (148,808 ) Cash and cash equivalents , beginning of period — 785,605 110,922 — 896,527 Cash and cash equivalents , end of period $ — $ 690,002 $ 57,717 $ — $ 747,719 Condensed Consolidating Statement of Cash Flows For the Twenty-Eight Weeks Ended July 14, 2018 (In thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 435,890 $ 8,078 $ — $ 443,968 Cash flows from investing activities: Purchases of property and equipment — (61,337 ) (478 ) — (61,815 ) Proceeds from sales of property and equipment — 534 44 — 578 Net cash used in investing activities — (60,803 ) (434 ) — (61,237 ) Cash flows from financing activities: Decrease in bank overdrafts — (6,760 ) (1,602 ) — (8,362 ) Dividends paid — (13,398 ) — — (13,398 ) Proceeds from the issuance of common stock — 1,697 — — 1,697 Tax withholdings related to the exercise of stock appreciation rights — (304 ) — — (304 ) Repurchases of common stock — (5,657 ) — — (5,657 ) Other, net — 784 — — 784 Net cash used in financing activities — (23,638 ) (1,602 ) — (25,240 ) Effect of exchange rate changes on cash — — (2,179 ) — (2,179 ) Net increase in cash and cash equivalents — 351,449 3,863 — 355,312 Cash and cash equivalents , beginning of period 23 482,620 64,317 (23 ) 546,937 Cash and cash equivalents , end of period $ 23 $ 834,069 $ 68,180 $ (23 ) $ 902,249 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) $ in Millions | 4 Months Ended | |
Apr. 20, 2019USD ($) | Jul. 13, 2019store | |
Stores [Member] | ||
Basis of Presentation [Line Items] | ||
Number of Stores | 4,912 | |
Branches [Member] | ||
Basis of Presentation [Line Items] | ||
Number of Stores | 150 | |
Independently owned Carquest store locations [Member] | ||
Basis of Presentation [Line Items] | ||
Number of Stores | 1,250 | |
Cost of Sales [Member] | ||
Basis of Presentation [Line Items] | ||
Out-of-period correction | $ | $ 13 |
Significant Acounting Policie_3
Significant Acounting Policies (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2019 | Jul. 14, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | |
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 100.00% | 100.00% | 100.00% | 100.00% |
Parts and Batteries [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 67.00% | 66.00% | 66.00% | 65.00% |
Accessories and Chemicals [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 21.00% | 20.00% | 21.00% | 20.00% |
Engine Maintenance [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 11.00% | 13.00% | 12.00% | 14.00% |
Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 1.00% | 1.00% | 1.00% | 1.00% |
Significant Acounting Policie_4
Significant Acounting Policies Adoption of ASU 2016-02 (Leases) (Details) - USD ($) $ in Thousands | Jul. 13, 2019 | Dec. 30, 2018 | Dec. 29, 2018 |
Effect of Adoption of New Accounting Pronouncements [Abstract] | |||
Operating Lease, Liability | $ 2,481,431 | $ 2,400,000 | |
Operating Lease, Right-of-Use Asset | $ 2,360,019 | 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 | 3 Months Ended | 6 Months Ended | |||
Jul. 13, 2019 | Jul. 14, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | Dec. 29, 2018 | |
Inventory [Line Items] | |||||
Percentage of LIFO Inventory | 89.00% | 89.00% | 89.00% | ||
Inventory, LIFO Reserve, Effect on Income, Net | $ (16,500) | $ 12,300 | $ (42,900) | $ 32,300 | |
Inventories at first in, first out (“FIFO”) | 4,174,944 | 4,174,944 | $ 4,119,617 | ||
Adjustments to state inventories at LIFO | 199,989 | 199,989 | 242,930 | ||
Inventories at LIFO | $ 4,374,933 | $ 4,374,933 | $ 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 | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2019 | Jul. 14, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization Expense | $ 7.3 | $ 8.5 | $ 17 | $ 21.9 |
Receivables, net (Details)
Receivables, net (Details) - USD ($) $ in Thousands | Jul. 13, 2019 | Dec. 29, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 729,775 | $ 643,014 |
Less: Allowance for doubtful accounts | (16,714) | (18,042) |
Receivables, net | 713,061 | 624,972 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 497,338 | 397,909 |
Accounts Receivable, Vendor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 222,377 | 228,024 |
Accounts Receivable, Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 10,060 | $ 17,081 |
Long-term Debt and Fair Value_4
Long-term Debt and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 4 Months Ended | ||||
Apr. 20, 2019 | Jul. 13, 2019 | Feb. 28, 2019 | Dec. 29, 2018 | Apr. 26, 2010 | |
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 746,951 | $ 1,045,930 | |||
Less: Current portion of long-term debt (included in Other current liabilities) | 0 | (210) | |||
Long-term debt, excluding current portion | 746,951 | 1,045,720 | |||
Fair value of long-term debt | 793,000 | 1,074,000 | |||
Guarantor Obligations, Maximum Exposure | 26,000 | 24,300 | |||
Guarantor Obligation, Collateral Amount | 49,000 | 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 | ||||
Bilateral Letter of Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of Credit Outstanding, Amount | 99,900 | 100,500 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Long-term and Short-term, Combined Amount | 0 | 0 | |||
Letters of Credit Outstanding, Amount | 0 | 2,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,000,000 | $ 998,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2019 | Jul. 13, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Total operating lease liabilities | $ 2,481,431 | $ 2,481,431 | $ 2,400,000 | |
Less: Current portion of operating lease liabilities | 449,081 | 449,081 | ||
Noncurrent operating lease liabilities | 2,032,350 | 2,032,350 | $ 0 | |
Operating lease cost | 124,765 | 284,811 | ||
Variable lease cost | 32,856 | 82,546 | ||
Total lease cost | 157,621 | 367,357 | ||
Remainder of 2019 | 230,520 | 230,520 | ||
2020 | 560,102 | 560,102 | ||
2021 | 458,167 | 458,167 | ||
2022 | 362,804 | 362,804 | ||
2023 | 317,640 | 317,640 | ||
Thereafter | 968,831 | 968,831 | ||
Total lease payments | 2,898,064 | 2,898,064 | ||
Less: Imputed interest | (416,633) | (416,633) | ||
Lessee option to extend reasonably certain of being exercised | 149,500 | 149,500 | ||
Operating lease legally binding minimum payments for lease that have not yet commenced | $ 26,100 | $ 26,100 | ||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 2 months 12 days | 7 years 2 months 12 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.10% | 4.10% | ||
Cash paid for amounts included in the measurement of lease liabilities: | $ 278,323 | |||
Right-of-use assets obtained in exchange for lease obligations: | $ 201,856 | |||
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 | |||
Real Estate [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Renewal Term | 5 years | 5 years | ||
Real Estate [Member] | Minimum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 5 years | 5 years | ||
Real Estate [Member] | Maximum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 10 years | 10 years | ||
Equipment [Member] | Minimum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 3 years | 3 years | ||
Equipment [Member] | Maximum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 5 years | 5 years |
Warranty Liabilities (Details)
Warranty Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jul. 13, 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 | 23,248 | 43,200 |
Reserves utilized | (23,211) | (46,944) |
Warranty reserve, end of period | $ 45,317 | $ 45,280 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 13, 2019 | Jul. 14, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | Aug. 07, 2019 | Aug. 08, 2018 | |
Class of Stock [Line Items] | ||||||
Document Period End Date | Jul. 13, 2019 | |||||
August 2018 Share Repurchase Program [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 600 | |||||
Treasury Stock, Shares, Acquired as Part of Authorized Plan | 100 | 900 | ||||
Payments for Repurchase of Common Stock | $ 10.9 | $ 138.1 | ||||
Acquired, Average Cost Per Share, Acquired as Part of Plan | $ 151.58 | $ 158.98 | ||||
Share Repurchase Program, Remaining Authorized Repurchase Amount | $ 189.1 | $ 189.1 | ||||
May 2012 Share Repurchase Program [Member] | ||||||
Class of Stock [Line Items] | ||||||
Treasury Stock, Shares, Acquired as Part of Authorized Plan | 0 | 0 | ||||
Subsequent Event [Member] | August 2019 Share Repurchase Program [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 400 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2019 | Jul. 14, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income applicable to common shares | $ 124,820 | $ 117,836 | $ 267,320 | $ 254,562 |
Basic weighted average shares | 71,738 | 74,054 | 71,767 | 74,011 |
Dilutive impact of share-based awards | 270 | 190 | 296 | 211 |
Diluted weighted average shares | 72,008 | 74,244 | 72,063 | 74,222 |
Basic earnings per common share | $ 1.74 | $ 1.59 | $ 3.73 | $ 3.44 |
Diluted earnings per common share | $ 1.73 | $ 1.59 | $ 3.71 | $ 3.43 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2019 | Jul. 14, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation, Tax Benefit from Compensation Expense | $ 2.3 | $ 1.2 | $ 5 | $ 3 |
Share-based Compensation, Cost Not yet Recognized | $ 76.5 | $ 76.5 | ||
Share-based Compensation, Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days | |||
Performance-based RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in Period | 55 | |||
Weighted Average Grant Date Fair Value | $ 159.80 | |||
Market-based RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in Period | 28 | |||
Weighted Average Grant Date Fair Value | $ 165.70 | |||
Time-based RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in Period | 225 | |||
Weighted Average Grant Date Fair Value | $ 159.34 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Jul. 13, 2019 | Apr. 20, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | Jul. 14, 2018 | Apr. 21, 2018 | Dec. 30, 2017 |
Current assets: | |||||||
Cash and cash equivalents | $ 747,719 | $ 896,527 | $ 902,249 | $ 546,937 | |||
Receivables, net | 713,061 | 624,972 | |||||
Inventories | 4,374,933 | 4,362,547 | |||||
Other current assets | 126,758 | 198,408 | |||||
Total current assets | 5,962,471 | 6,082,454 | |||||
Property and equipment, net of accumulated depreciation | 1,381,388 | 1,368,985 | |||||
Operating Lease, Right-of-Use Asset | 2,360,019 | $ 2,400,000 | 0 | ||||
Goodwill | 992,432 | 990,237 | |||||
Intangible assets, net | 521,969 | 550,593 | |||||
Other assets, net | 49,667 | 48,379 | |||||
Investment in subsidiaries | 0 | 0 | |||||
Intercompany note receivable | 0 | 0 | |||||
Due from intercompany, net | 0 | 0 | |||||
Assets, Total | 11,267,946 | 9,040,648 | |||||
Current liabilities: | |||||||
Accounts payable | 3,317,972 | 3,172,790 | |||||
Accrued expenses | 587,119 | 623,141 | |||||
Other current liabilities | 467,314 | 90,019 | |||||
Total current liabilities | 4,372,405 | 3,885,950 | |||||
Long-term debt | 746,951 | 1,045,720 | |||||
Noncurrent operating lease liabilities | 2,032,350 | 0 | |||||
Deferred income taxes | 313,903 | 318,353 | |||||
Other long-term liabilities | 131,035 | 239,812 | |||||
Intercompany note payable | 0 | 0 | |||||
Due to intercompany, net | 0 | 0 | |||||
Commitments and contingencies | |||||||
Stockholders' equity | 3,671,302 | $ 3,547,223 | 3,550,813 | 3,657,949 | $ 3,546,621 | 3,415,196 | |
Liabilities and Stockholders' Equity, Total | 11,267,946 | 9,040,648 | |||||
Advance Auto Parts, Inc. [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 0 | 0 | 23 | 23 | |||
Receivables, net | 0 | 0 | |||||
Inventories | 0 | 0 | |||||
Other current assets | 1,403 | 3,103 | |||||
Total current assets | 1,403 | 3,103 | |||||
Property and equipment, net of accumulated depreciation | 66 | 77 | |||||
Operating Lease, Right-of-Use Asset | 0 | ||||||
Goodwill | 0 | 0 | |||||
Intangible assets, net | 0 | 0 | |||||
Other assets, net | 1,694 | 2,408 | |||||
Investment in subsidiaries | 4,214,313 | 3,945,862 | |||||
Intercompany note receivable | 749,283 | 1,048,993 | |||||
Due from intercompany, net | 0 | 0 | |||||
Assets, Total | 4,966,759 | 5,000,443 | |||||
Current liabilities: | |||||||
Accounts payable | 0 | 0 | |||||
Accrued expenses | 3,286 | 3,444 | |||||
Other current liabilities | 0 | 0 | |||||
Total current liabilities | 3,286 | 3,444 | |||||
Long-term debt | 746,951 | 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 | 545,220 | 400,466 | |||||
Commitments and contingencies | |||||||
Stockholders' equity | 3,671,302 | 3,550,813 | |||||
Liabilities and Stockholders' Equity, Total | 4,966,759 | 5,000,443 | |||||
Guarantor Subsidiaries [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 690,002 | 785,605 | 834,069 | 482,620 | |||
Receivables, net | 663,858 | 590,269 | |||||
Inventories | 4,189,502 | 4,182,973 | |||||
Other current assets | 119,472 | 191,318 | |||||
Total current assets | 5,662,834 | 5,750,165 | |||||
Property and equipment, net of accumulated depreciation | 1,372,713 | 1,359,980 | |||||
Operating Lease, Right-of-Use Asset | 2,317,564 | ||||||
Goodwill | 943,364 | 943,364 | |||||
Intangible assets, net | 481,450 | 510,586 | |||||
Other assets, net | 49,060 | 47,815 | |||||
Investment in subsidiaries | 519,888 | 474,772 | |||||
Intercompany note receivable | 0 | 0 | |||||
Due from intercompany, net | 237,570 | 102,886 | |||||
Assets, Total | 11,584,443 | 9,189,568 | |||||
Current liabilities: | |||||||
Accounts payable | 3,122,680 | 2,954,632 | |||||
Accrued expenses | 559,756 | 603,460 | |||||
Other current liabilities | 508,720 | 91,994 | |||||
Total current liabilities | 4,191,156 | 3,650,086 | |||||
Long-term debt | 0 | 0 | |||||
Noncurrent operating lease liabilities | 1,999,384 | ||||||
Deferred income taxes | 299,269 | 306,127 | |||||
Other long-term liabilities | 131,038 | 238,500 | |||||
Intercompany note payable | 749,283 | 1,048,993 | |||||
Due to intercompany, net | 0 | 0 | |||||
Commitments and contingencies | |||||||
Stockholders' equity | 4,214,313 | 3,945,862 | |||||
Liabilities and Stockholders' Equity, Total | 11,584,443 | 9,189,568 | |||||
Non-Guarantor Subsidiaries [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 57,717 | 110,922 | 68,180 | 64,317 | |||
Receivables, net | 49,203 | 34,703 | |||||
Inventories | 185,431 | 179,574 | |||||
Other current assets | 5,883 | 3,987 | |||||
Total current assets | 298,234 | 329,186 | |||||
Property and equipment, net of accumulated depreciation | 8,609 | 8,928 | |||||
Operating Lease, Right-of-Use Asset | 42,455 | ||||||
Goodwill | 49,068 | 46,873 | |||||
Intangible assets, net | 40,519 | 40,007 | |||||
Other assets, net | 610 | 564 | |||||
Investment in subsidiaries | 0 | 0 | |||||
Intercompany note receivable | 0 | 0 | |||||
Due from intercompany, net | 307,650 | 297,580 | |||||
Assets, Total | 747,145 | 723,138 | |||||
Current liabilities: | |||||||
Accounts payable | 195,292 | 218,158 | |||||
Accrued expenses | 24,077 | 16,237 | |||||
Other current liabilities | (41,406) | (1,975) | |||||
Total current liabilities | 177,963 | 232,420 | |||||
Long-term debt | 0 | 0 | |||||
Noncurrent operating lease liabilities | 32,966 | ||||||
Deferred income taxes | 16,328 | 14,634 | |||||
Other long-term liabilities | 0 | 1,312 | |||||
Intercompany note payable | 0 | 0 | |||||
Due to intercompany, net | 0 | 0 | |||||
Commitments and contingencies | |||||||
Stockholders' equity | 519,888 | 474,772 | |||||
Liabilities and Stockholders' Equity, Total | 747,145 | 723,138 | |||||
Consolidation, Eliminations [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 0 | 0 | $ (23) | $ (23) | |||
Receivables, net | 0 | 0 | |||||
Inventories | 0 | 0 | |||||
Other current assets | 0 | 0 | |||||
Total current assets | 0 | 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 | (1,697) | (2,408) | |||||
Investment in subsidiaries | (4,734,201) | (4,420,634) | |||||
Intercompany note receivable | (749,283) | (1,048,993) | |||||
Due from intercompany, net | (545,220) | (400,466) | |||||
Assets, Total | (6,030,401) | (5,872,501) | |||||
Current liabilities: | |||||||
Accounts payable | 0 | 0 | |||||
Accrued expenses | 0 | 0 | |||||
Other current liabilities | 0 | 0 | |||||
Total current liabilities | 0 | 0 | |||||
Long-term debt | 0 | 0 | |||||
Noncurrent operating lease liabilities | 0 | ||||||
Deferred income taxes | (1,694) | (2,408) | |||||
Other long-term liabilities | (3) | 0 | |||||
Intercompany note payable | (749,283) | (1,048,993) | |||||
Due to intercompany, net | (545,220) | (400,466) | |||||
Commitments and contingencies | |||||||
Stockholders' equity | (4,734,201) | (4,420,634) | |||||
Liabilities and Stockholders' Equity, Total | $ (6,030,401) | $ (5,872,501) |
Condensed Consolidated Income S
Condensed Consolidated Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2019 | Jul. 14, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | $ 2,332,246 | $ 2,326,652 | $ 5,284,283 | $ 5,200,500 |
Cost of sales, including purchasing and warehousing costs | 1,322,808 | 1,315,093 | 2,970,233 | 2,916,658 |
Gross profit | 1,009,438 | 1,011,559 | 2,314,050 | 2,283,842 |
Selling, general and administrative expenses | 838,666 | 844,018 | 1,935,338 | 1,918,061 |
Operating income (loss) | 170,772 | 167,541 | 378,712 | 365,781 |
Other, net: | ||||
Interest expense | (8,675) | (12,855) | (23,619) | (30,537) |
Other income (expense), net | 4,113 | 2,785 | 1,874 | 3,243 |
Total other, net | (4,562) | (10,070) | (21,745) | (27,294) |
Income before provision for income taxes | 166,210 | 157,471 | 356,967 | 338,487 |
Provision for income taxes | 41,390 | 39,635 | 89,647 | 83,925 |
Income (loss) before equity in earnings of subsidiaries | 124,820 | 117,836 | 267,320 | 254,562 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 124,820 | 117,836 | 267,320 | 254,562 |
Advance Auto Parts, Inc. [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales, including purchasing and warehousing costs | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 5,852 | 4,848 | 17,970 | 9,658 |
Operating income (loss) | (5,852) | (4,848) | (17,970) | (9,658) |
Other, net: | ||||
Interest expense | (7,949) | (12,059) | (21,464) | (28,137) |
Other income (expense), net | 14,062 | 16,991 | 40,274 | 38,248 |
Total other, net | 6,113 | 4,932 | 18,810 | 10,111 |
Income before provision for income taxes | 261 | 84 | 840 | 453 |
Provision for income taxes | 422 | (204) | 1,722 | 1,059 |
Income (loss) before equity in earnings of subsidiaries | (161) | 288 | (882) | (606) |
Equity in earnings of subsidiaries | 124,981 | 117,548 | 268,202 | 255,168 |
Net income | 124,820 | 117,836 | 267,320 | 254,562 |
Guarantor Subsidiaries [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | 2,234,054 | 2,231,229 | 5,086,755 | 5,007,131 |
Cost of sales, including purchasing and warehousing costs | 1,268,783 | 1,263,912 | 2,867,323 | 2,814,953 |
Gross profit | 965,271 | 967,317 | 2,219,432 | 2,192,178 |
Selling, general and administrative expenses | 817,938 | 827,733 | 1,895,083 | 1,882,123 |
Operating income (loss) | 147,333 | 139,584 | 324,349 | 310,055 |
Other, net: | ||||
Interest expense | (529) | (796) | (1,933) | (2,400) |
Other income (expense), net | (3,695) | (1,211) | (10,586) | (4,204) |
Total other, net | (4,224) | (2,007) | (12,519) | (6,604) |
Income before provision for income taxes | 143,109 | 137,577 | 311,830 | 303,451 |
Provision for income taxes | 35,507 | 35,512 | 77,801 | 75,964 |
Income (loss) before equity in earnings of subsidiaries | 107,602 | 102,065 | 234,029 | 227,487 |
Equity in earnings of subsidiaries | 17,379 | 15,483 | 34,173 | 27,681 |
Net income | 124,981 | 117,548 | 268,202 | 255,168 |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | 126,967 | 138,070 | 274,257 | 290,190 |
Cost of sales, including purchasing and warehousing costs | 82,800 | 93,828 | 179,639 | 198,526 |
Gross profit | 44,167 | 44,242 | 94,618 | 91,664 |
Selling, general and administrative expenses | 22,678 | 23,241 | 54,087 | 53,823 |
Operating income (loss) | 21,489 | 21,001 | 40,531 | 37,841 |
Other, net: | ||||
Interest expense | (197) | 0 | (222) | 0 |
Other income (expense), net | 1,548 | (1,191) | 3,988 | (3,258) |
Total other, net | 1,351 | (1,191) | 3,766 | (3,258) |
Income before provision for income taxes | 22,840 | 19,810 | 44,297 | 34,583 |
Provision for income taxes | 5,461 | 4,327 | 10,124 | 6,902 |
Income (loss) before equity in earnings of subsidiaries | 17,379 | 15,483 | 34,173 | 27,681 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 17,379 | 15,483 | 34,173 | 27,681 |
Consolidation, Eliminations [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | (28,775) | (42,647) | (76,729) | (96,821) |
Cost of sales, including purchasing and warehousing costs | (28,775) | (42,647) | (76,729) | (96,821) |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | (7,802) | (11,804) | (31,802) | (27,543) |
Operating income (loss) | 7,802 | 11,804 | 31,802 | 27,543 |
Other, net: | ||||
Interest expense | 0 | 0 | 0 | 0 |
Other income (expense), net | (7,802) | (11,804) | (31,802) | (27,543) |
Total other, net | (7,802) | (11,804) | (31,802) | (27,543) |
Income before provision for income taxes | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Income (loss) before equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | (142,360) | (133,031) | (302,375) | (282,849) |
Net income | $ (142,360) | $ (133,031) | $ (302,375) | $ (282,849) |
Condensed Consolidating Compreh
Condensed Consolidating Comprehensive Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2019 | Jul. 14, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | |
Condensed Consolidating Comprehensive Income Statement [Line Items] | ||||
Net income | $ 124,820 | $ 117,836 | $ 267,320 | $ 254,562 |
Other Comprehensive Income (Loss) | 6,557 | (7,102) | 10,712 | (10,960) |
Comprehensive income | 131,377 | 110,734 | 278,032 | 243,602 |
Advance Auto Parts, Inc. [Member] | ||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | ||||
Net income | 124,820 | 117,836 | 267,320 | 254,562 |
Other Comprehensive Income (Loss) | 6,557 | (7,102) | 10,712 | (10,960) |
Comprehensive income | 131,377 | 110,734 | 278,032 | 243,602 |
Guarantor Subsidiaries [Member] | ||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | ||||
Net income | 124,981 | 117,548 | 268,202 | 255,168 |
Other Comprehensive Income (Loss) | 6,557 | (7,102) | 10,712 | (10,960) |
Comprehensive income | 131,538 | 110,446 | 278,914 | 244,208 |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | ||||
Net income | 17,379 | 15,483 | 34,173 | 27,681 |
Other Comprehensive Income (Loss) | 6,626 | (7,035) | 10,686 | (10,802) |
Comprehensive income | 24,005 | 8,448 | 44,859 | 16,879 |
Consolidation, Eliminations [Member] | ||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | ||||
Net income | (142,360) | (133,031) | (302,375) | (282,849) |
Other Comprehensive Income (Loss) | (13,183) | 14,137 | (21,398) | 21,762 |
Comprehensive income | $ (155,543) | $ (118,894) | $ (323,773) | $ (261,087) |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 13, 2019 | Jul. 14, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 492,161 | $ 443,968 |
Net cash used in investing activities | ||
Purchases of property and equipment | (111,425) | (61,815) |
Proceeds from sales of property and equipment | 8,566 | 578 |
Net cash used in investing activities | (102,859) | (61,237) |
Net cash provided by (used in) financing activities | ||
Increase (decrease) in bank overdrafts | (70,265) | (8,362) |
Redemption of senior unsecured notes | (310,047) | 0 |
Dividends paid | (13,028) | (13,398) |
Proceeds from the issuance of common stock | 1,648 | 1,697 |
Tax withholdings related to the exercise of stock appreciation rights | (123) | (304) |
Repurchase of common stock | (146,638) | (5,657) |
Other, net | (113) | 784 |
Net Cash Provided by (Used in) Financing Activities | (538,566) | (25,240) |
Effect of exchange rate changes on cash | 456 | (2,179) |
Cash and Cash Equivalents, Period Increase (Decrease) | (148,808) | 355,312 |
Cash and cash equivalents, beginning of period | 896,527 | 546,937 |
Cash and cash equivalents, end of period | 747,719 | 902,249 |
Advance Auto Parts, Inc. [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 | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 23 |
Cash and cash equivalents, end of period | 0 | 23 |
Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 495,853 | 435,890 |
Net cash used in investing activities | ||
Purchases of property and equipment | (110,974) | (61,337) |
Proceeds from sales of property and equipment | 8,565 | 534 |
Net cash used in investing activities | (102,409) | (60,803) |
Net cash provided by (used in) financing activities | ||
Increase (decrease) in bank overdrafts | (20,746) | (6,760) |
Redemption of senior unsecured notes | (310,047) | |
Dividends paid | (13,028) | (13,398) |
Proceeds from the issuance of common stock | 1,648 | 1,697 |
Tax withholdings related to the exercise of stock appreciation rights | (123) | (304) |
Repurchase of common stock | (146,638) | (5,657) |
Other, net | (113) | 784 |
Net Cash Provided by (Used in) Financing Activities | (489,047) | (23,638) |
Effect of exchange rate changes on cash | 0 | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | (95,603) | 351,449 |
Cash and cash equivalents, beginning of period | 785,605 | 482,620 |
Cash and cash equivalents, end of period | 690,002 | 834,069 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (3,692) | 8,078 |
Net cash used in investing activities | ||
Purchases of property and equipment | (451) | (478) |
Proceeds from sales of property and equipment | 1 | 44 |
Net cash used in investing activities | (450) | (434) |
Net cash provided by (used in) financing activities | ||
Increase (decrease) in bank overdrafts | (49,519) | (1,602) |
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 | (49,519) | (1,602) |
Effect of exchange rate changes on cash | 456 | (2,179) |
Cash and Cash Equivalents, Period Increase (Decrease) | (53,205) | 3,863 |
Cash and cash equivalents, beginning of period | 110,922 | 64,317 |
Cash and cash equivalents, end of period | 57,717 | 68,180 |
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 | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | (23) |
Cash and cash equivalents, end of period | $ 0 | $ (23) |