Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 14, 2020 | Jul. 12, 2019 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0001158449 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-16797 | ||
Entity Registrant Name | ADVANCE AUTO PARTS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 54-2049910 | ||
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 | ||
Local Phone Number | 362-4911 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Trading Symbol | AAP | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10,845,687,437 | ||
Entity Common Stock, Shares Outstanding | 69,238,141 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2020 Annual Meeting of Stockholders, to be held on May 15, 2020, are incorporated by reference into Part III of this Form 10-K. | ||
Current Fiscal Year End Date | --12-28 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 418,665 | $ 896,527 |
Receivables, net | 689,469 | 624,972 |
Inventories | 4,432,168 | 4,362,547 |
Other current assets | 155,241 | 198,408 |
Total current assets | 5,695,543 | 6,082,454 |
Property and equipment, net of accumulated depreciation of $2,037,849 and $1,918,502 | 1,433,213 | 1,368,985 |
Operating lease right-of-use assets | 2,365,325 | 0 |
Goodwill | 992,240 | 990,237 |
Intangible assets, net | 709,756 | 550,593 |
Other assets | 52,448 | 48,379 |
Assets, Total | 11,248,525 | 9,040,648 |
Current liabilities: | ||
Accounts payable | 3,421,987 | 3,172,790 |
Accrued expenses | 535,863 | 623,141 |
Other current liabilities | 519,852 | 90,019 |
Total current liabilities | 4,477,702 | 3,885,950 |
Long-term debt | 747,320 | 1,045,720 |
Noncurrent operating lease liabilities | 2,017,159 | 0 |
Deferred income taxes | 334,013 | 318,353 |
Other long-term liabilities | 123,250 | 239,812 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Preferred stock, nonvoting, $0.0001 par value, 10,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, voting, $0.0001 par value, 200,000 shares authorized; 76,051 shares issued and 69,232 outstanding at December 28, 2019 and 75,831 shares issued and 72,460 outstanding at December 39, 2018 | 8 | 8 |
Additional paid-in capital | 735,183 | 694,797 |
Treasury stock, at cost, 6,819 and 3,371 shares | (924,389) | (425,954) |
Accumulated other comprehensive loss | (34,569) | (44,193) |
Retained earnings | 3,772,848 | 3,326,155 |
Total stockholders' equity | 3,549,081 | 3,550,813 |
Liabilities and Stockholders' Equity, Total | $ 11,248,525 | $ 9,040,648 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Accumulated Depreciation, Property and Equipment | $ 2,037,849 | $ 1,918,502 |
Preferred stock, non-voting, par value | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 10,000 | 10,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, voting, par value | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 200,000 | 200,000 |
Common Stock, Shares, Issued | 76,051 | 75,831 |
Common Stock, Shares, Outstanding | 69,232 | 72,460 |
Treasury Stock, Shares | 6,819 | 3,371 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Jul. 13, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Apr. 20, 2019 | Apr. 21, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Net sales | $ 2,112,614 | $ 2,312,106 | $ 2,332,246 | $ 2,105,072 | $ 2,274,982 | $ 2,326,652 | $ 2,952,036 | $ 2,873,848 | $ 9,709,003 | $ 9,580,554 | $ 9,373,784 |
Cost of sales, including purchasing and warehousing costs | 5,454,257 | 5,361,141 | 5,288,735 | ||||||||
Gross profit | 928,769 | 1,011,926 | 1,009,438 | 928,643 | 1,006,927 | 1,011,559 | 1,304,612 | 1,272,284 | 4,254,746 | 4,219,413 | 4,085,049 |
Selling, general and administrative expenses | 3,577,566 | 3,615,138 | 3,514,837 | ||||||||
Operating income | 677,180 | 604,275 | 570,212 | ||||||||
Other, net: | |||||||||||
Interest expense | (39,898) | (56,588) | (58,801) | ||||||||
Other income, net | 464 | 7,577 | 8,848 | ||||||||
Total other, net | (39,434) | (49,011) | (49,953) | ||||||||
Income before provision for income taxes | 637,746 | 555,264 | 520,259 | ||||||||
Provision for income taxes | 150,850 | 131,417 | 44,754 | ||||||||
Net income | $ 95,907 | $ 123,669 | $ 124,820 | $ 53,441 | $ 115,843 | $ 117,836 | $ 142,500 | $ 136,727 | $ 486,896 | $ 423,847 | $ 475,505 |
Basic earnings per common share | $ 1.39 | $ 1.76 | $ 1.74 | $ 0.74 | $ 1.57 | $ 1.59 | $ 1.99 | $ 1.85 | $ 6.87 | $ 5.75 | $ 6.44 |
Weighted average common shares outstanding | 70,869 | 73,728 | 73,846 | ||||||||
Diluted earnings per common share | $ 1.38 | $ 1.75 | $ 1.73 | $ 0.74 | $ 1.56 | $ 1.59 | $ 1.98 | $ 1.84 | $ 6.84 | $ 5.73 | $ 6.42 |
Weighted average common shares outstanding | 71,165 | 73,991 | 74,110 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Jul. 13, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Apr. 20, 2019 | Apr. 21, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Net income | $ 95,907 | $ 123,669 | $ 124,820 | $ 53,441 | $ 115,843 | $ 117,836 | $ 142,500 | $ 136,727 | $ 486,896 | $ 423,847 | $ 475,505 |
Other comprehensive income (loss): | |||||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax of $67, $103 and $126 | (142) | (294) | (194) | ||||||||
Currency translation adjustments | 9,766 | (18,945) | 14,941 | ||||||||
Total other comprehensive income (loss) | 9,624 | (19,239) | 14,747 | ||||||||
Comprehensive income | $ 496,520 | $ 404,608 | $ 490,252 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Changes in net unrecognized other postretirement benefit costs, tax | $ 67 | $ 103 | $ 126 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock, at cost | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance at Dec. 31, 2016 | $ 2,916,192 | $ 8 | $ 631,052 | $ (138,102) | $ (39,701) | $ 2,462,935 |
Balance (in shares) at Dec. 31, 2016 | 73,749 | |||||
Net income | 475,505 | 475,505 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 292 | 782 | (490) | |||
Total other comprehensive income (loss) | 14,747 | 14,747 | ||||
Restricted stock, restricted stock units and deferred stock units vested | 0 | |||||
Restricted stock, restricted stock units and deferred stock units vested (in shares) | 147 | |||||
Share-based compensation | 35,267 | 35,267 | ||||
Stock issued under employee stock purchase plan | 4,053 | 4,053 | ||||
Stock issued under employee stock purchase plan (in shares) | 29 | |||||
Repurchase of common stock | (6,498) | (6,498) | ||||
Repurchase of common stock (in shares) | (56) | |||||
Cash dividends declared ($0.24 per common share) | (17,854) | (17,854) | ||||
Stock Issued During Period, Shares, Other | 67 | |||||
Other | (6,508) | (6,508) | ||||
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 | 423,847 | 423,847 | ||||
Total other comprehensive income (loss) | (19,239) | (19,239) | ||||
Restricted stock, restricted stock units and deferred stock units vested | 0 | |||||
Restricted stock, restricted stock units and deferred stock units vested (in shares) | 215 | |||||
Share-based compensation | 27,760 | 27,760 | ||||
Stock issued under employee stock purchase plan | 3,200 | 3,200 | ||||
Stock issued under employee stock purchase plan (in shares) | 36 | |||||
Repurchase of common stock | (281,354) | (281,354) | ||||
Repurchase of common stock (in shares) | (1,738) | |||||
Cash dividends declared ($0.24 per common share) | (17,788) | (17,788) | ||||
Stock Issued During Period, Shares, Other | 11 | |||||
Other | (809) | (809) | ||||
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 | 72,460 | ||||
Net income | $ 486,896 | 486,896 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (23,165) | (23,165) | ||||
Total other comprehensive income (loss) | 9,624 | 9,624 | ||||
Restricted stock, restricted stock units and deferred stock units vested | 0 | |||||
Restricted stock, restricted stock units and deferred stock units vested (in shares) | 192 | |||||
Share-based compensation | 37,438 | 37,438 | ||||
Stock issued under employee stock purchase plan | 3,334 | 3,334 | ||||
Stock issued under employee stock purchase plan (in shares) | 23 | |||||
Repurchase of common stock | (498,435) | (498,435) | ||||
Repurchase of common stock (in shares) | (3,448) | |||||
Cash dividends declared ($0.24 per common share) | (17,038) | (17,038) | ||||
Stock Issued During Period, Shares, Other | 5 | |||||
Other | (386) | (386) | ||||
Balance at Dec. 28, 2019 | $ 3,549,081 | $ 8 | $ 735,183 | $ (924,389) | $ (34,569) | $ 3,772,848 |
Balance (in shares) at Dec. 28, 2019 | 69,232 | 69,232 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Stockholders' Equity (Parenthetical) [Abstract] | |||
Dividends declared per common share | $ 0.24 | $ 0.24 | $ 0.24 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 486,896 | $ 423,847 | $ 475,505 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 238,371 | 238,184 | 249,260 |
Share-based compensation | 37,438 | 27,760 | 35,267 |
Loss and impairment of long-lived assets | 6,671 | 15,956 | 17,106 |
Other, net | 12,437 | 2,195 | 3,123 |
Provision (benefit) for deferred income taxes | 23,148 | 15,956 | (151,263) |
Net change in: | |||
Receivables, net | (62,837) | (21,471) | 36,047 |
Inventories | (63,130) | (206,125) | 167,548 |
Accounts payable | 245,785 | 285,493 | (197,168) |
Accrued expenses | (72,288) | 93,940 | (13,295) |
Other assets and liabilities, net | 14,418 | (64,707) | (21,325) |
Net cash provided by operating activities | 866,909 | 811,028 | 600,805 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (270,129) | (193,715) | (189,758) |
Purchase of an indefinite-lived intangible asset | (201,519) | 0 | 0 |
Proceeds from sales of property and equipment | 8,709 | 1,888 | 11,099 |
Other, net | 0 | 0 | 20 |
Net cash used in investing activities | (462,939) | (191,827) | (178,639) |
Cash flows from financing activities: | |||
(Decrease) increase in bank overdrafts | (59,339) | 32,014 | 14,004 |
Redemption of senior unsecured note | (310,047) | 0 | 0 |
Borrowings under credit facilities | 0 | 0 | 534,400 |
Payments on credit facilities | 0 | 0 | (534,400) |
Dividends paid | (17,185) | (17,819) | (17,854) |
Proceeds from the issuance of common stock | 3,334 | 3,200 | 4,076 |
Repurchases of common stock | (498,435) | (281,354) | (6,498) |
Other, net | (481) | 44 | (8,600) |
Net cash used in financing activities | (882,153) | (263,915) | (14,872) |
Effect of exchange rate changes on cash | 321 | (5,696) | 4,465 |
Net (decrease) increase in cash and cash equivalents | (477,862) | 349,590 | 411,759 |
Cash and cash equivalents, beginning of period | 896,527 | 546,937 | 135,178 |
Cash and cash equivalents, end of period | 418,665 | 896,527 | 546,937 |
Supplemental cash flow information: | |||
Interest paid | 41,099 | 45,322 | 53,509 |
Income tax payments | 108,163 | 143,213 | 192,116 |
Non-cash transactions: | |||
Accrued purchases of property and equipment | $ 26,201 | $ 15,365 | $ 14,335 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation: Description of Business Advance Auto Parts, Inc. and subsidiaries is a leading automotive aftermarket parts provider in North America, serving both 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., including, its wholly owned subsidiaries, Advance Stores Company, Incorporated (“Advance Stores”) and Neuse River Insurance Company, Inc., and their subsidiaries (collectively referred to as “Advance,” “we,” “us,” or “our”). As of December 28, 2019 , our operations are comprised of 4,877 stores and 160 branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. Our stores operate primarily under the trade names “Advance Auto Parts,” “Carquest” and “Autopart International,” and our branches operate under the “Worldpac” trade name. In addition, we served 1,253 independently owned Carquest branded stores across the same geographic locations served by our stores and branches in addition to Mexico, the Bahamas, Turks and Caicos and the British Virgin Islands. Accounting Period Our fiscal year ends on the Saturday nearest the end of December. All references herein for the years “ 2019 ,” “ 2018 ” and “ 2017 ” represent the fiscal years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , which were all 52 weeks. Basis of Presentation The consolidated financial statements include the accounts of Advance and its wholly owned subsidiaries prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in the prior years’ consolidated statements of changes in stockholders’ equity and statements of cash flows have been reclassified to conform to the current year presentation. During 2019, we made an out-of-period correction, which increased Cost of sales by $13.0 million , related to received not invoiced inventory. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies: Cash and Cash Equivalents Cash and cash equivalents consist of cash in banks and money market funds with original maturities of three months or less. Also, included in cash equivalents are credit card and debit card receivables from banks, which generally settle in less than four business days. Inventory Our inventory consists primarily of parts, batteries, accessories and other products used on vehicles that have reasonably long shelf lives and is stated at the lower of cost or market. The cost of our merchandise inventory is primarily determined using the last-in, first-out (“LIFO”) method. 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 relating to prices paid in 2019 and prior years. We regularly review inventory quantities on-hand, consider whether we may have excess inventory based on our current approach for managing slower moving inventory and adjust the carrying value as necessary. Vendor Incentives We receive incentives in the form of reductions to amounts owed to and/or payments from vendors related to volume rebates and other promotional considerations. Many of these incentives are under long-term agreements in excess of one year, while others are negotiated on an annual basis or shorter. Advertising allowances provided as a reimbursement of specific, incremental and identifiable costs incurred to promote a vendor’s products are included as an offset to selling, general and administrative expenses (“SG&A”) when the cost is incurred. Volume rebates and allowances that do not meet the requirements for offsetting in SG&A are recorded as a reduction to inventory as they are earned based on inventory purchases. Total deferred vendor incentives recorded as a reduction of Inventories were $173.8 million and $164.1 million as of December 28, 2019 and December 29, 2018 . We recognize other promotional incentives earned under long-term agreements not specifically related to volume of purchases as a reduction to cost of sales. However, these incentives are not deferred as a reduction of inventory and are recognized based on the cumulative net purchases as a percentage of total estimated net purchases over the life of the agreement. Short-term incentives with terms less than one year are generally recognized as a reduction to cost of sales over the duration of the agreements. Amounts received or receivable from vendors that are not yet earned are reflected as deferred revenue in the accompanying consolidated balance sheets. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged directly to expense when incurred; major improvements are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the account balances, with any gain or loss reflected in the consolidated statements of operations. Depreciation of land improvements, buildings, furniture, fixtures and equipment and vehicles is provided over the estimated useful lives of the respective assets using the straight-line method. Depreciation of building and leasehold improvements is provided over the shorter of the original useful lives of the respective assets or the term of the lease using the straight-line method. Goodwill and Indefinite-Lived Intangible Assets We perform our evaluation for the impairment of goodwill and indefinite-lived intangible assets for our reporting units annually as of the first day of the fourth quarter, or when indications of potential impairment exist. These indicators would include a significant change in operating performance, the business climate, legal factors, competition, or a planned sale or disposition of a significant portion of the business, among other factors. We assess qualitative factors such as current company performance and overall economic factors to determine if it is more-likely-than-not that the goodwill might be impaired and whether it is necessary to perform a quantitative goodwill impairment test. In the quantitative goodwill test, we compare the carrying value of a reporting unit to its fair value. If the fair value of the reporting unit is lower than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds the reporting unit's fair value. Our indefinite-lived intangible assets are tested for impairment at the asset group level. Indefinite-lived intangibles are evaluated by comparing the carrying amount of the asset to the future discounted cash flows that the asset is expected to generate. If the fair value based on the future discounted cash flows exceeds the carrying value, we conclude that no intangible asset impairment has occurred. If the carrying value of the indefinite-lived intangible asset exceeds the fair value, we recognize an impairment loss. We have five operating segments, defined as “Northern Division,” “Southern Division,” “Carquest Canada,” “Independents” and “Worldpac.” As each operating segment represents a reporting unit, goodwill is assigned to each reporting unit. Valuation of Long-Lived Assets We evaluate the recoverability of our long-lived assets, including finite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable and exceeds its fair value. When such an event occurs, we estimate the undiscounted future cash flows expected to result from the use of the long-lived asset or asset group and its eventual disposition. These impairment evaluations involve estimates of asset useful lives and future cash flows. If the undiscounted expected future cash flows are less than the carrying amount of the asset and the carrying amount of the asset exceeds its fair value, an impairment loss is recognized. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on quoted market prices or other valuation techniques (e.g., discounted cash flow analysis). Self-Insurance We are self-insured for general and automobile liability, workers’ compensation and health care claims of its employees, or Team Members, while maintaining stop-loss coverage with third-party insurers to limit its total liability exposure. Expenses associated with these liabilities are calculated for (i) claims filed, (ii) claims incurred but not yet reported and (iii) projected future claims using actuarial methods followed in the insurance industry as well as our historical claims experience. We include the current and long-term portions of its self-insurance reserves in Accrued expenses and Other long-term liabilities in the accompanying consolidated balance sheets. Warranty Liabilities The warranty obligation on the majority of merchandise sold by us with a manufacturer’s warranty is the responsibility of our vendors. However, we have an obligation to provide customers replacement of certain merchandise at no cost or merchandise at a prorated cost if under a warranty and not covered by the manufacturer. As of December 28, 2019 and December 29, 2018 , our warranty liability primarily consisted of batteries with warranty coverage sold by us. We estimate our warranty obligation at the time of sale based on the historical return experience, sales level and cost of the respective product sold. To the extent vendors provide upfront allowances in lieu of accepting the obligation for warranty claims and the allowance is in excess of the related warranty expense, the excess is recorded as a reduction to cost of sales. Leases We lease certain store locations, distribution centers, office spaces, equipment and vehicles. We recognize lease expense on a straight-line basis over the initial term of the lease unless external economic factors exist such that renewals are reasonably certain. In those instances, the renewal period would be included in the lease term to determine the period in which to recognize the lease expense. Most leases require us to pay taxes, maintenance, insurance and other certain costs applicable to the leased premises. Leases for periods through December 29, 2018 were reported under Accounting Standards Codification (“ASC”) 840, Leases (Topic 840) (“ASC 840”), including the disclosure requirements. Under ASC 840, differences between the calculated rent expense and cash payments were recorded as a liability within the Accrued expenses and Other long-term liabilities captions in the accompanying consolidated balance sheets, based on the terms of the lease. Effective December 30, 2018, we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), 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. 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 store locations, distribution centers, office spaces and vehicle leases, we elected not to separate lease components from nonlease components. The adoption of ASU 2016-02 resulted in the recording of operating 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 2019, the adoption of the new standard did not have a material impact on our condensed consolidated statements of operations and condensed consolidated statements of cash flows as substantially all of our leases are operating in nature. Fair Value Measurements A three-level valuation hierarchy, based upon observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. These two types of inputs create the following fair value hierarchy: Level 1 - Quoted prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose significant inputs are observable; and Level 3 - Instruments whose significant inputs are unobservable. Financial instruments are transferred in and/or out of Level 1, 2 or 3 at the beginning of the accounting period in which there is a change in the valuation inputs. Closed Facility Liabilities and Exit Activities We review the operating performance of our existing store locations and close or relocate certain stores identified as underperforming. For periods through December 29, 2018, and in accordance with ASC 420, Exit or Disposal Cost Obligations , expenses accrued pertaining to closed facility exit activities are included in our closed facility liabilities, within Accrued expenses and Other long-term liabilities in the accompanying consolidated balance sheets, and recognized in Cost of sales or SG&A in the accompanying consolidated statements of operations at the time of facility closure. As of December 29, 2018 , the closed facility liabilities, which comprised of the present value of the remaining lease obligations and management’s estimate of future costs of insurance, property tax and common area maintenance expenses, reduced by the present value of estimated revenues from subleases and lease buyouts, were $42.3 million . As a result of our transition to ASU 2016-02 on December 30, 2018, our lease liabilities for closed facilities are included within the lease liability recorded in Other current liabilities and Noncurrent operating lease liabilities in the accompanying consolidated balance sheet, and the operating lease right-of-use assets recorded upon transition was recorded net of the previously recorded closed facility lease obligation. Employees receiving severance benefits as the result of a store closing or other restructuring activity are required to render service until they are terminated in order to receive benefits. Severance benefits are recognized over the related service period. Other restructuring costs, including costs to relocate employees, are recognized in the period in which the liability is incurred. Share-Based Payments We provide share-based compensation to our eligible Team Members and Board of Directors. We are required to exercise judgment and make estimates when determining the (i) fair value of each award granted and (ii) projected number of awards expected to vest. We calculate the fair value of all share-based awards at the date of grant and use the straight-line method to amortize this fair value as compensation cost over the requisite service period. Revenues Revenue for periods through December 30, 2017 was reported under ASC 605, Revenue Recognition (Topic 605) . We recognized revenue at the time the sale is made, at which time our walk-in customers took immediate possession of the merchandise or same-day delivery was made to our Professional delivery customers, which included certain independently owned store locations. For e-commerce sales, revenue was recognized either at the time of pick-up at one of our store locations or at the time of shipment depending on the customer’s order designation. Sales were recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. We estimated the reduction to sales and cost of sales for returns based on current sales levels and our historical return experience. Effective December 31, 2017, we adopted ASC 606, Revenue From Contracts With Customers (Topic 606) (“ASC 606”). The results of applying Topic 606 using the modified retrospective approach were insignificant and did not have a material impact on our consolidated financial condition, results of operations, cash flows, business process, controls or systems. ASC 606 defines a performance obligation as a promise in a contract to transfer a distinct good or service to the customer and is considered the unit of account. The majority of our contracts have one single performance obligation as the promise to transfer the individual goods is not separately identifiable from other promises in the contracts and is, therefore, not distinct. Discounts and incentives are treated as separate performance obligations. We allocate the contract’s transaction price to each of these performance obligations separately using explicitly stated amounts or our best estimate using historical data. Additionally, we estimate and record gift card breakage as redemptions occur. In accordance with ASC 606 revenue is recognized at the time the sale is made, at which time our walk-in customers take immediate possession of the merchandise or same-day delivery is made to our Professional delivery customers, which include certain independently-owned store locations. Payment terms are established for our Professional delivery customers based on pre-established credit requirements. Payment terms vary depending on the customer and generally range from 1 to 30 days. Based on the nature of receivables, no significant financing components exist. For e-commerce sales, revenue is recognized either at the time of pick-up at one of our store locations or at the time of shipment depending on the customer's order designation. Sales are recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. We estimate the reduction to Net sales and Cost of sales for returns based on current sales levels and our historical return experience. We provide assurance type warranty coverage primarily on batteries, brakes and struts whereby we are required to provide replacement product at no cost or a reduced cost for a set period of time. The following table summarizes financial information for each of our product groups. Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Percentage of Sales, by Product Group Parts and Batteries 67 % 66 % 65 % Accessories and Chemicals 21 % 20 % 20 % Engine Maintenance 11 % 13 % 14 % Other 1 % 1 % 1 % Total 100 % 100 % 100 % Receivables, net consist primarily of receivables from Professional customers. We grant credit to certain Professional customers who meet our pre-established credit requirements. Accounts receivable is stated at net realizable value. We regularly review accounts receivable balances and maintains allowances for doubtful accounts for estimated losses whenever events or circumstances indicate the carrying value may not be recoverable. We consider the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. We control credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures. Cost of Sales Cost of sales includes actual product cost, warranty costs, vendor incentives, cash discounts on payments to vendors, costs associated with operating our distribution network, including payroll and benefits costs, occupancy costs and depreciation, in-bound freight-related costs from our vendors, impairment of inventory resulting from store closures and costs associated with moving merchandise inventories from our distribution centers to stores, branch locations and customers. Selling, General and Administrative Expenses SG&A includes payroll and benefits costs for store and corporate Team Members, occupancy costs of store and corporate facilities, depreciation and amortization related to store and corporate assets, share-based compensation expense, advertising, self-insurance, costs of consolidating, converting or closing facilities, including early termination of lease obligations, severance and impairment charges, professional services and costs associated with our Professional delivery program, including payroll and benefit costs, and transportation expenses associated with moving merchandise inventories from stores and branches to customer locations. Advertising Costs We expense advertising costs as incurred. Advertising expense, net of qualifying vendor promotional funds, was $117.3 million , $120.9 million and $102.8 million in 2019 , 2018 and 2017 . Vendor promotional funds, which reduced advertising expense, amounted to $45.7 million and $26.9 million and $33.3 million in 2019 , 2018 and 2017 . Foreign Currency Translation The assets and liabilities of our foreign operations are translated into U.S. dollars at current exchange rates, and revenues, expenses and cash flows are translated at average exchange rates for the year. Resulting translation adjustments are reflected as a separate component in the consolidated statements of comprehensive income. Losses from foreign currency transactions, which are included in Other income, net, were $1.7 million , 5.0 million and $4.0 million in 2019 , 2018 and 2017 . Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under the asset and liability method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and for income tax reporting purposes. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date. We recognize tax benefits and/or tax liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts as we must determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis or when new information becomes available to management. The reevaluations are based on many factors, including but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes of limitations and new federal or state audit activity. Any change in either our recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. Earnings per Share Basic earnings per share of common stock has been computed based on the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by including the effect of dilutive securities. Diluted earnings per share of common stock reflects the weighted-average number of shares of common stock outstanding, outstanding deferred stock units and the impact of outstanding stock options and stock appreciation rights (collectively “share-based awards”). Share-based awards containing performance conditions are included in the dilution impact as those conditions are met. Segment Information Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. Our CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by information about our five operating segments, for purposes of allocating resources and evaluating financial performance. We have one reportable segment as the five operating segments are aggregated due primarily to the economic and operational similarities of each operating segment as the stores and branches have similar characteristics, including the nature of the products and services, customer base and the methods used to distribute products and provide service to its customers. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses , ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses and ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief , which provided additional implementation guidance on the previously issued ASU. The previously mentioned ASUs are effective for fiscal years beginning after December 15, 2019, with early adoption permitted. We expect the adoption of this new standard to have an insignificant impact on our consolidated financial condition, results of operations or cash flows. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes. This ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. We expect the adoption of this new standard to have an insignificant impact on our consolidated financial condition, results of operations or cash flows. |
Inventories
Inventories | 12 Months Ended |
Dec. 28, 2019 | |
Inventory, Net [Abstract] | |
Inventories | Inventories: We used the LIFO method of accounting for approximately 89% of Inventories at December 28, 2019 and December 29, 2018 . As a result of changes in the LIFO reserve, we recorded an increase to Cost of sales of $101.3 million in 2019 , a decrease to Cost of sales of $39.8 million in 2018 and an increase to cost of sales of $2.7 million in 2017 . Purchasing and warehousing costs included in Inventories as of December 28, 2019 and December 29, 2018 , were $476.3 million and $435.2 million . Inventory balances were as follows: (in thousands) December 28, 2019 December 29, 2018 Inventories at first in, first out (“FIFO”) $ 4,290,565 $ 4,119,617 Adjustments to state inventories at LIFO 141,603 242,930 Inventories at LIFO $ 4,432,168 $ 4,362,547 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: Goodwill At December 28, 2019 and December 29, 2018 , the carrying amount of Goodwill in the accompanying consolidated balance sheets was $992.2 million and $990.2 million . The change in goodwill during 2019 and 2018 was $2.0 million and $4.1 million related to foreign currency translation. Intangible Assets Other Than Goodwill On December 23, 2019, we purchased the DieHard® brand for a cash purchase price of $200.0 million, exclusive of $1.5 million of capitalizable transaction costs. This purchase gives us the right to sell DieHard® batteries and enables us to extend the DieHard® brand into other automotive and vehicular categories. We granted the seller an exclusive royalty-free, perpetual license to develop, market, and sell DieHard® branded products in non-automotive categories. We accounted for this transaction as a purchase of an indefinite-lived intangible asset, which is included within the Brands, trademarks and tradenames category below, and is not subject to amortization. Amortization expense was $31.7 million, $40.7 million and $47.4 million for 2019 , 2018 and 2017 . A summary of the composition of the gross carrying amounts and accumulated amortization of acquired intangible assets are presented in the following table: December 28, 2019 December 29, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Customer relationships $ 350,352 $ (179,220 ) $ 171,132 $ 349,157 $ (148,889 ) $ 200,268 Favorable leases (1) — — — 27,139 (12,791 ) 14,348 Non-compete and other 38,256 (37,318 ) 938 37,875 (36,974 ) 901 388,608 (216,538 ) 172,070 414,171 (198,654 ) 215,517 Indefinite-lived intangible assets: Brands, trademark and tradenames 537,686 — 537,686 335,076 — 335,076 Total intangible assets $ 926,294 $ (216,538 ) $ 709,756 $ 749,247 $ (198,654 ) $ 550,593 (1) As a result of our adoption of ASU 2016-02 on December 30, 2018, favorable lease assets were derecognized through an opening adjustment to Operating lease right-of-use assets in the accompanying consolidated balance sheet. Future Amortization Expense The table below shows expected amortization expense for the next five years and thereafter for acquired intangible assets recorded as of December 28, 2019 : Year Amount (in thousands) 2020 $ 30,206 2021 30,104 2022 30,008 2023 27,099 2024 27,291 Thereafter 27,362 $ 172,070 |
Receivables, net
Receivables, net | 12 Months Ended |
Dec. 28, 2019 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net: Receivables, net consist of the following: (in thousands) December 28, 2019 December 29, 2018 Trade $ 422,403 $ 397,909 Vendor 249,009 228,024 Other 32,306 17,081 Total receivables 703,718 643,014 Less: allowance for doubtful accounts (14,249 ) (18,042 ) Receivables, net $ 689,469 $ 624,972 |
Long-term Debt and Fair Value o
Long-term Debt and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 28, 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) December 28, 2019 December 29, 2018 5.75% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $802 at December 29, 2018) due May 1, 2020 $ — $ 299,198 4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $559 and $833 at December 28, 2019 and December 29, 2018) due January 15, 2022 299,441 299,167 4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $2,121 and $2,645 at December 28, 2019 and December 29, 2018) due December 1, 2023 447,879 447,355 Other — 210 747,320 1,045,930 Less: Current portion of long-term debt — (210 ) Long-term debt, excluding current portion $ 747,320 $ 1,045,720 Fair value of long-term debt $ 795,000 $ 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 its 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 On January 31, 2017, we entered into a new credit agreement that provides a $1.0 billion unsecured revolving credit facility (the “2017 Credit Agreement”) with Advance Stores, as Borrower, the lenders party thereto, and Bank of America, N.A., as the administrative agent and replaces a prior credit agreement entered into in 2013. The 2017 Credit Agreement provides for the issuance of letters of credit with a sublimit of $200.0 million. We may request that the total revolving commitment be increased by an amount not exceeding $250.0 million during the term of the 2017 Credit Agreement. Voluntary prepayments and voluntary reductions of the revolving loan balance, if any, are permitted in whole or in part, at our option, in minimum principal amounts as specified in the 2017 Credit Agreement. The 2017 Credit Agreement terminates in January 2022; however, we may request one or two one-year extensions of the termination date prior to the first or second anniversary of the closing date. On January 31, 2018, we entered into Amendment No. 1 to the 2017 Credit Agreement (the “Amendment”), among Advance Stores, as Borrower, the lenders party thereto, and Bank of America, N.A., Administrative Agent. The Amendment: (i) provided for LIBOR replacement rates in the event that LIBOR is unavailable in the future; (ii) modified the definitions of the financial covenants (and the testing level relating thereto) with respect to a maximum leverage ratio and a minimum coverage ratio that we are required to comply with; and (iii) extended the termination date of the 2017 Credit Agreement from January 31, 2022 until January 31, 2023. We have the option to make one additional written request of the lenders to extend the termination date then in effect for one additional year. On January 10, 2019, we entered into Amendment No. 2 to the 2017 Credit Agreement (the “ Second Amendment”), among Advance Stores Company, Incorporated, as Borrower, Advance Auto Parts, Inc., as Parent, the banks, financial institutions and other institutional lenders parties thereto and Bank of America, N.A., as Administrative Agent. The Second Amendment: (i) added a new definition of "Insurance Subsidiary" to the 2017 Credit Agreement meaning each wholly owned subsidiary of Parent that is maintained as a special purpose self-insurance subsidiary and any of its subsidiaries; (ii) provided that an Insurance Subsidiary does not serve as a Guarantor of the 2017 Credit Agreement; and (iii) provided that Insurance Subsidiaries are permitted to incur intercompany indebtedness. Insurance Subsidiaries will not be required to serve as Guarantors of the Parent's senior unsecured notes so long as they are not guarantors of the 2017 Credit Agreement. As of December 28, 2019 , we had no outstanding borrowings under 2017 Credit Agreement and borrowing availability was $1.0 billion. Under the 2017 Credit Agreement, we had no letters of credit outstanding as of December 28, 2019 . Interest on any borrowings on the revolver will be based at our option, on an adjusted LIBOR, plus a margin, or an alternate base rate, plus a margin. After an initial interest period, we may elect to convert a particular borrowing to a different type. The initial margins per annum for the revolving loan are 1.10% for the adjusted LIBOR and 0.10% for alternate base rate borrowings. A facility fee of 0.15% per annum is charged on the total revolving facility commitment, payable quarterly in arrears. Under the terms of the 2017 Credit Agreement, the interest rate spread and facility fee are based on our credit rating. The interest rate spread ranges from 0.91% to 1.50% for adjusted LIBOR borrowings and 0.00% to 0.50% for alternate base rate borrowings. The 2017 Credit Agreement contains customary covenants restricting the ability of: (a) Advance Stores and its subsidiaries to, among other things, (i) create, incur or assume additional debt (only with respect to subsidiaries of Advance Stores), (ii) incur liens, (iii) guarantee obligations, and (iv) change the nature of its business conducted by itself and its subsidiaries; (b) Advance, Advance Stores and their subsidiaries to, among other things (i) enter into certain hedging arrangements, (ii) enter into restrictive agreements limiting their ability to incur liens on any of their property or assets, pay distributions, repay loans, or guarantee indebtedness of their subsidiaries; and (c) Advance, among other things, to change the holding company status of Advance. Advance Stores is required to comply with financial covenants with respect to a maximum leverage ratio and a minimum coverage ratio. The 2017 Credit Agreement also provides for customary events of default, including non-payment defaults, covenant defaults and cross-defaults of Advance Stores’ other material indebtedness. We were in compliance with our financial covenants with respect to the 2017 Credit Agreement as of December 28, 2019 . As of December 28, 2019 and December 29, 2018 , we had $111.6 million and $100.5 million of bilateral letters of credit issued separately from the 2017 Credit Agreement, none of which were drawn upon. These bilateral letters of credit generally have a term of one year or less and primarily serve as collateral for our self-insurance policies. Senior Unsecured Notes Our 4.50% senior unsecured notes were issued in December 2013 at 99.69% of the principal amount of $450.0 million and are due December 1, 2023 (the “2023 Notes”). The 2023 Notes bear interest at a rate of 4.50% per year payable semi-annually in arrears on June 1 and December 1 of each year. Our 4.50% senior unsecured notes were issued in January 2012 at 99.968% of the principal amount of $300.0 million and are due January 15, 2022 (the “2022 Notes”). The 2022 Notes bear interest at a rate of 4.50% per year payable semi-annually in arrears on January 15 and July 15 of each year. Our 5.75% senior unsecured notes were issued in April 2010 at 99.587% of the principal amount of $300.0 million and were due May 1, 2020 (the “2020 Notes” or collectively with the 2023 Notes and the 2022 Notes, “the Notes”). The 2020 Notes carried interest at a rate of 5.75% per year payable semi-annually in arrears on May 1 and November 1 of each year. On February 28, 2019, we redeemed all $300.0 million aggregate principal amount of our 2020 Notes that were issued in April 2010 at 99.587% of the principal amount. 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, which are included in Other (expense) income, net in the accompanying condensed consolidated statements of operations. Advance served as the issuer of the Notes with certain of Advance’s domestic subsidiaries currently serving as subsidiary guarantors. The terms of the Notes are governed by an indenture (as amended, supplemented, waived or otherwise modified, the “Indenture”) among Advance, the subsidiary guarantors from time to time party thereto and Wells Fargo Bank, National Association, as Trustee. We may redeem some or all of the Notes at any time or from time to time, at the redemption price described in the Indenture. In addition, in the event of a Change of Control Triggering Event (as defined in the Indenture for the Notes), we will be required to offer to repurchase the Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase date. The Notes are currently fully and unconditionally guaranteed, jointly and severally, on an unsubordinated and unsecured basis by each of the subsidiary guarantors. We will be permitted to release guarantees without the consent of holders of the Notes under the circumstances described in the Indenture: (i) upon the release of the guarantee of our other debt that resulted in the affected subsidiary becoming a guarantor of this debt; (ii) upon the sale or other disposition of all or substantially all of the stock or assets of the subsidiary guarantor; or (iii) upon our exercise of our legal or covenant defeasance option. The Indenture contains customary provisions for events of default including for: (i) failure to pay principal or interest when due and payable; (ii) failure to comply with covenants or agreements in the Indenture or the Notes and failure to cure or obtain a waiver of such default upon notice; (iii) a default under any debt for money borrowed by us or any of our subsidiaries that results in acceleration of the maturity of such debt, or failure to pay any such debt within any applicable grace period after final stated maturity, in an aggregate amount greater than $25.0 million without such debt having been discharged or acceleration having been rescinded or annulled within 10 days after receipt by us of notice of the default by the Trustee or holders of not less than 25% in aggregate principal amount of the Notes then outstanding; and (iv) events of bankruptcy, insolvency or reorganization affecting us and certain of its subsidiaries. In the case of an event of default, the principal amount of the Notes plus accrued and unpaid interest may be accelerated. The Indenture also contains covenants limiting the ability of us and our subsidiaries to incur debt secured by liens and to enter into sale and lease-back transactions. Future Payments As of December 28, 2019 , the aggregate future annual maturities of long-term debt instruments are as follows: Year Amount (in thousands) 2020 $ — 2021 — 2022 300,000 2023 450,000 2024 — Thereafter — $ 750,000 Debt Guarantees We are a guarantor of loans made by banks to various independently owned Carquest-branded stores that are customers of ours totaling $26.4 million as of December 28, 2019 . 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 $50.3 million as of December 28, 2019 . We believe that the likelihood of performance under these guarantees is remote. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment | Property and Equipment: Property and equipment consists of the following: (in thousands) December 28, 2019 December 29, 2018 Land and land improvements 0 - 10 years $ 457,960 $ 453,511 Buildings 30 - 40 years 498,871 488,977 Building and leasehold improvements 2 - 15 years 535,082 504,518 Furniture, fixtures and equipment 2 - 20 years 1,850,485 1,740,960 Vehicles 2 - 10 years 14,612 14,636 Construction in progress 114,052 84,885 3,471,062 3,287,487 Less - Accumulated depreciation (2,037,849 ) (1,918,502 ) Property and equipment, net $ 1,433,213 $ 1,368,985 Depreciation expense relating to Property and equipment was $206.7 million , $201.6 million and $206.9 million for 2019 , 2018 and 2017 . We capitalized $29.1 million , $13.0 million and $11.2 million incurred for the development of internal use computer software during 2019 , 2018 and 2017 . These costs are currently classified in the Construction in progress category above, but once placed into service within the Furniture, fixtures equipment category, these costs will be depreciated on the straight-line method over 3 to 10 years. In 2019 , 2018 and 2017 , we recognized impairment losses of $2.3 million , $13.4 million and $13.3 million , primarily on store and corporate assets. |
Leases and Other Commitments
Leases and Other Commitments | 12 Months Ended |
Dec. 28, 2019 | |
Leases and Other Commitments [Abstract] | |
Leases and Other Commitments | Leases and Other Commitments: 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) December 28, 2019 Total operating lease liabilities $ 2,495,141 Less: Current portion of operating lease liabilities (477,982 ) Noncurrent operating lease liabilities $ 2,017,159 The current portion of operating lease liabilities is included in Other current liabilities in the accompanying condensed consolidated balance sheet. Total lease cost is included in Cost of sales and SG&A in the accompanying condensed consolidated statements of operations and is recorded net of immaterial sublease income. Total lease cost is comprised of the following: Year Ended (in thousands) December 28, 2019 Operating lease cost $ 522,928 Variable lease cost 155,892 Total lease cost $ 678,820 The future maturity of lease liabilities are as follows: (in thousands) December 28, 2019 2020 $ 572,426 2021 482,494 2022 390,110 2023 350,636 2024 272,683 Thereafter 832,501 Total lease payments 2,900,850 Less: Imputed interest (405,709 ) Total operating lease liabilities $ 2,495,141 Operating lease payments include $139.5 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $147.7 million of legally binding 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 7.18 years and 4.0% as of December 28, 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: Year Ended (in thousands) December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 517,945 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 398,510 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: Year Amount (in thousands) 2019 $ 520,541 2020 481,812 2021 416,895 2022 349,470 2023 270,116 Thereafter 837,441 $ 2,876,275 As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, our net rent expense was as follows: Year Ended (in thousands) December 29, 2018 December 30, 2017 Minimum facility rentals $ 484,291 $ 483,178 Equipment rentals 23,635 24,786 Vehicle rentals 53,015 32,670 560,941 540,634 Less: Sub-lease income (7,141 ) (7,144 ) $ 553,800 $ 533,490 Other Commitments We have entered into certain arrangements which require the future purchase of goods or services. Our obligations primarily consist of payments for the purchase of hardware, software and maintenance. As of December 28, 2019 , future payments amount to $66.2 million and are not accrued in our consolidated balance sheet. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 28, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses: Accrued expenses consist of the following: (in thousands) December 28, 2019 December 29, 2018 Payroll and related benefits $ 109,371 $ 129,909 Taxes payable 96,834 119,203 Self-insurance reserves 64,845 70,962 Warranty reserves 36,820 45,280 Capital expenditures 26,201 15,365 Transportation 21,679 28,872 Other 180,113 213,550 Total accrued expenses $ 535,863 $ 623,141 The following table presents changes in our warranty reserves: Year Ended (in thousands) December 28, 2019 December 29, 2018 December 30, 2017 Warranty reserve, beginning of period $ 45,280 $ 49,024 $ 47,243 Additions to reserve 34,117 43,200 50,895 Reduction and utilization of reserve (42,577 ) (46,944 ) (49,114 ) Warranty reserve, end of period $ 36,820 $ 45,280 $ 49,024 |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 28, 2019 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | . Share Repurchase Program: Our share repurchase program allows us to repurchase our common stock on the open market or in privately negotiated transactions from time to time. On August 7, 2019, our Board of Directors authorized a $400.0 million share repurchase program. This new authorization replaced the previous $600.0 million share repurchase program that was authorized by our Board of Directors on August 8, 2018, which had $49.1 million remaining at the time of its replacement. On November 8, 2019, our Board of Directors authorized $700.0 million as an addition to the existing share repurchase program. During 2019 , we repurchased 3.4 million shares of our common stock at an aggregate cost of $487.4 million , or an average price of $144.23 per share, in connection with our share repurchase program. We had $890.8 million remaining under our share repurchase program as of December 28, 2019 . During 2018, we repurchased 1.7 million shares of our common stock at an aggregate cost of $272.8 million , or an average price of $163.17 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share: The computation of basic and diluted earnings per share is as follows: Year Ended (in thousands, except per share data) December 28, 2019 December 29, 2018 December 30, 2017 Numerator Net income applicable to common shares $ 486,896 $ 423,847 $ 475,505 Denominator Basic weighted average common shares 70,869 73,728 73,846 Dilutive impact of share-based awards 296 263 264 Diluted weighted average common shares (1) 71,165 73,991 74,110 Basic earnings per common share $ 6.87 $ 5.75 $ 6.44 Diluted earnings per common share $ 6.84 $ 5.73 $ 6.42 (1) For the fifty-two weeks ended December 28, 2019 , 115 thousand restricted stock units (“RSUs”) were excluded from the diluted calculation as their inclusion would have been anti-dilutive. For the fifty-two weeks ended December 29, 2018 and December 30, 2017 , these anti-dilutive RSUs were insignificant. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: U.S. Tax Reform On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act amended the Internal Revenue Code by, among other things, permanently lowering the corporate tax rate to 21% from the existing maximum rate of 35% , implementing a territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. We are required to remeasure deferred income tax assets and liabilities in the reporting period of enactment. The remeasurement of our net deferred income tax liability resulted in a $155.1 million income tax benefit in 2017. In 2017, we also recorded an estimated charge of $11.3 million to income tax expense primarily for the nonrecurring repatriation tax on accumulated earnings of foreign subsidiaries and it is our intention to bring back the accumulated foreign earnings held as cash in the near term. Prospectively, any future foreign earnings will be utilized to grow and support our foreign operations and will be treated as being indefinitely reinvested outside the U.S. During 2018, in conjunction with the completion of our 2017 U.S. income tax return, we identified a change in estimate to amounts previously estimated in 2017 for the remeasurement of the net deferred tax liability and nonrecurring repatriation tax on accumulated earnings of foreign subsidiaries that resulted in a net tax benefit of $5.7 million . Our analysis under Staff Accounting Bulletin No. 118 was completed in 2018. Provision for Income Taxes Provision for income taxes consists of the following: (in thousands) Current Deferred Total 2019 Federal $ 84,490 $ 13,618 $ 98,108 State 26,924 8,117 35,041 Foreign 16,288 1,413 17,701 $ 127,702 $ 23,148 $ 150,850 2018 Federal $ 72,598 $ 14,745 $ 87,343 State 19,571 3,439 23,010 Foreign 23,292 (2,228 ) 21,064 $ 115,461 $ 15,956 $ 131,417 2017 Federal $ 146,855 $ (146,741 ) $ 114 State 31,352 (3,437 ) 27,915 Foreign 17,810 (1,085 ) 16,725 $ 196,017 $ (151,263 ) $ 44,754 The provision for income taxes differed from the amount computed by applying the federal statutory income tax rate due to: Year Ended (in thousands) December 28, 2019 December 29, 2018 December 30, 2017 Income before provision for income taxes at statutory U.S. federal income tax rate (21% for 2019 and 2018 and 35% for 2017) $ 133,927 $ 116,605 $ 182,091 State income taxes, net of federal income tax benefit 27,682 18,178 18,145 Impact of the Act — (5,655 ) (143,756 ) Other, net (10,759 ) 2,289 (11,726 ) $ 150,850 $ 131,417 $ 44,754 Deferred Income Tax Assets (Liabilities) Temporary differences that give rise to significant deferred income tax assets (liabilities) are as follows: (in thousands) December 28, 2019 December 29, 2018 Deferred income tax assets: Accrued expenses not currently deductible for tax $ 38,064 $ 40,066 Share-based compensation 9,540 7,780 Accrued medical and workers compensation 22,202 34,430 Net operating loss carryforwards 5,565 7,423 Operating lease liabilities 627,707 21,091 Other, net 8,430 8,390 Total deferred income tax assets before valuation allowances 711,508 119,180 Less: Valuation allowance (3,592 ) (8,694 ) Total deferred income tax assets 707,916 110,486 Deferred income tax liabilities: Property and equipment (116,277 ) (92,505 ) Inventories (183,428 ) (196,772 ) Intangible assets (136,078 ) (139,562 ) Operating lease right-of-use assets (606,146 ) — Total deferred income tax liabilities (1,041,929 ) (428,839 ) Net deferred income tax liabilities $ (334,013 ) $ (318,353 ) As of December 28, 2019 and December 29, 2018 , our net operating loss (“NOL”) carryforwards comprised of state NOLs of $159.4 million and $195.0 million. These NOLs may be used to reduce future taxable income and expire periodically through 2037. Due to uncertainties related to the realization of these NOLs in certain jurisdictions, as well as other credits available to us, we have recorded a valuation allowance of $3.6 million and $8.7 million as of December 28, 2019 and December 29, 2018 . The amount of deferred income tax assets realizable, however, could change in the future if projections of future taxable income change. We have not recorded deferred taxes when earnings from foreign operations are considered to be indefinitely invested outside of the U.S. As of December 28, 2019 , these accumulated net earnings generated by our foreign operations were approximately $24.5 million , which did not include earnings deemed to be repatriated as part of the Act. It is not practicable to determine the income tax liability that would be payable if such earnings were repatriated. Unrecognized Tax Benefits The following table summarizes the activity of our gross unrecognized tax benefits: (in thousands) December 28, 2019 December 29, 2018 December 30, 2017 Unrecognized tax benefits, beginning of period $ 30,824 $ 22,665 $ 13,946 Increases related to prior period tax positions 4,243 5,435 8,077 Decreases related to prior period tax positions (2,277 ) (1,356 ) (2,331 ) Increases related to current period tax positions 3,741 5,425 5,644 Settlements (331 ) (14 ) (1,496 ) Expiration of statute of limitations (6,438 ) (1,331 ) (1,175 ) Unrecognized tax benefits, end of period $ 29,762 $ 30,824 $ 22,665 As of December 28, 2019 , December 29, 2018 and December 30, 2017 , the entire amount of unrecognized tax benefits, if recognized, would reduce our annual effective tax rate. During 2019 , we recorded expenses relating to income tax-related interest and penalties of $1.6 million due to uncertain tax positions included in Provision for income taxes in the accompanying consolidated statements of operations. During 2018 , we recorded a gain relating to income tax-related interest and penalties of $0.9 million due to uncertain tax positions included in Provision for income taxes in the accompanying consolidated statements of operations. During 2017 , we recorded expenses relating to income tax-related interest and penalties of $1.7 million due to uncertain tax positions included in Provision for income taxes in the accompanying consolidated statements of operations. As of December 28, 2019 and December 29, 2018 , we recorded a liability for potential interest of $4.9 million and $3.3 million and for potential penalties of $0.1 million and $0.1 million. We did not provide for any penalties associated with tax contingencies unless considered probable of assessment. We do not expect our unrecognized tax benefits to change significantly over the next 12 months. With few exceptions, we are no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2015. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies: We are currently and from time to time subject to litigation, claims and other disputes, including legal and regulatory proceedings, arising in the normal course of business. We record a loss contingency liability when a loss is considered probable and the amount can be reasonably estimated. Although the final outcome of these legal matters cannot be determined, based on the facts presently known, it is management’s opinion that the final outcome of any pending matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 28, 2019 | |
Postemployment Benefits [Abstract] | |
Benefit Plans | Benefit Plans: 401(k) Plan We maintain a defined contribution benefit plan, which covers substantially all Team Members after one year of service and who have attained the age of 21. The plan allows for Team Member salary deferrals, which are matched at our discretion. Company contributions to these plans were $17.9 million , $15.0 million and $14.2 million in 2019 , 2018 and 2017 . Deferred Compensation We maintain a non-qualified deferred compensation plan for certain Team Members. This plan provides for a minimum and maximum deferral percentage of the Team Member’s base salary and bonus, as determined by the Retirement Plan Committee. We established and maintained a deferred compensation liability for this plan. As of December 28, 2019 and December 29, 2018 , these liabilities were $15.0 million and $12.2 million . |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation: Overview We grant share-based compensation awards to our Team Members and members of our Board of Directors as provided for under our 2014 Long-Term Incentive Plan (“2014 LTIP”), which was approved by our shareholders on May 14, 2014. In 2019 , 2018 and 2017 , we granted share-based compensation in the form of restricted stock units (“RSUs”) or deferred stock units (“DSUs”). No share-based compensation was granted in the form of stock appreciation rights (“SARs”) in 2019 , 2018 and 2017 . Our grants, which have three methods of measuring fair value, generally include a time-based service, a performance-based or a market-based portion, which collectively represent the target award. As of December 28, 2019 , the aggregate intrinsic value of outstanding and exercisable time-based and performance-based SARs was insignificant. In 2019 , 2018 and 2017 , all related activity related to SARs, including grants, exercises and forfeitures, was insignificant. At December 28, 2019 , there were 4.9 million shares of common stock available for future issuance under the 2014 LTIP based on management’s current estimate of the probable vesting outcome for performance-based awards. We issue new shares of common stock upon exercise of SARs. Shares forfeited and shares withheld for payment of taxes due become available for reissuance and are included in availability. Availability also includes shares that became available for reissuance in connection with the exercise of SARs. Restricted Stock Units For time-based RSUs, the fair value of each award was determined based on the market price of our common stock on the date of grant. Time-based RSUs generally vest over a three-year period in equal annual installments beginning on the first anniversary of the grant date. During the vesting period, holders of RSUs are entitled to receive dividend equivalents, but are not entitled to voting rights. For performance-based RSUs, the fair value of each award was determined based on the market price of our common stock on the date of grant. Performance-based awards generally may vest following a three-year period subject to our achievement of certain financial goals as specified in the grant agreements. Depending on our results during the three-year performance period, the actual number of awards vesting at the end of the period generally ranges from 0% to 200% of the performance award. Performance-based RSUs generally do not have dividend equivalent rights and do not have voting rights until the shares are earned and issued following the applicable performance period. The number of performance-based awards outstanding is based on the number of awards that we believed were probable of vesting at December 28, 2019 . Performance-based RSU’s granted during 2019 are presented as grants in the table at their respective target levels. The change in units based on performance represents the change in the number of granted awards expected to vest based on the updated probability assessment as of December 28, 2019 . Compensation expense for performance-based awards of $7.8 million , $5.4 million , and $13.6 million in 2019 , 2018 and 2017 , was determined based on management’s estimate of the probable vesting outcome. For market-based RSUs, the fair value of each award was determined using a Monte Carlo simulation model. The model uses multiple input variables that determined the probability of satisfying the market condition requirements as follows: Monte Carlo Simulation Model Assumptions 2019 2018 2017 Risk-free interest rate (1) 2.5 % 2.4 % 1.6 % Expected dividend yield 0.2 % 0.2 % 0.2 % Expected stock price volatility (2) 33.5 % 34.0 % 26.2 % (1) The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate having term consistent with the vesting period of the award. (2) Expected volatility is determined based on historical volatility over a matching look-back period and is consistent with the correlation coefficients between our stock prices and our peer group. Additionally, we estimated a liquidity discount of 10.5% using the Chaffe Protective Put Method to adjust the fair value for the post-vest restrictions. Market-based RSU’s vesting depends on our relative total shareholder return among a designated group of peer companies during a three-year period and will be subject to a one-year holding period after vesting. The following table summarizes activity for time-based, performance-based and market-based RSUs in 2019 : Time-Based Performance-Based Market-Based (in thousands, except per share data) Number of Awards Weighted-Average Grant Date Fair Value Number of Awards Weighted-Average Grant Date Fair Value Number of Awards Weighted-Average Grant Date Fair Value Nonvested at December 29, 2018 410 $ 132.49 125 $ 126.19 53 $ 133.78 Granted 279 157.31 39 159.80 28 165.70 Change in units based on performance — — (6 ) 120.72 — — Vested (164 ) 133.97 (17 ) 160.94 — — Forfeited (65 ) 140.11 (14 ) 128.10 (8 ) 142.01 Nonvested at December 28, 2019 460 $ 145.95 127 $ 132.03 73 145.08 The following table summarizes certain information concerning activity for time-based, performance-based and market-based RSUs: Year Ended (in thousands, except per share data) December 28, 2019 December 29, 2018 December 30, 2017 Time-based: Weighted average fair value of RSUs granted $ 157.31 $ 130.12 $ 131.01 Total grant date fair value of RSUs vested $ 21,955 $ 17,527 $ 13,578 Performance-based: Weighted average fair value of RSUs granted $ 159.80 $ 119.08 $ 146.42 Total grant date fair value of RSUs vested $ 2,666 $ 9,224 $ 7,823 Market-based: Weighted average fair value of RSUs granted $ 165.70 $ 131.48 $ 139.33 Total grant date fair value of RSUs vested $ — $ — $ — As of December 28, 2019 , the maximum potential payout under our currently outstanding performance-based and market-based RSUs were 289 thousand and 146 thousand units. Other Considerations Total income tax benefit related to share-based compensation expense for 2019 , 2018 and 2017 was $9.4 million , $6.8 million and $15.3 million . As of December 28, 2019 , there was $59.8 million of unrecognized compensation expense related to all share-based awards that was expected to be recognized over a weighted average period of 1.5 years. Deferred Stock Units (“DSUs”) We grant share-based awards annually to our Board of Directors in connection with its annual meeting of stockholders. These awards are granted in the form of DSUs as provided for in the Advance Auto Parts, Inc. Deferred Stock Unit Plan for Non-Employee Directors and Selected Executives (“DSU Plan”). Each DSU is equivalent to one share of our common stock and will be distributed in common shares after the director’s service on the Board ends. DSUs granted vest over a one year service period. Additionally, the DSU Plan provides for the deferral of compensation earned in the form of (i) an annual retainer for directors, and (ii) wages for certain highly compensated Team Members. These DSUs are settled in common stock with the participants at a future date, or over a specified time period, as elected by the participants in accordance with the DSU Plan. We granted 12 thousand DSUs in 2019 . The weighted average fair value of DSUs granted during 2019 , 2018 and 2017 was $156.47 , $127.14 , and $125.34 . The DSUs are awarded at a price equal to the market price of our underlying common stock on the date of the grant. For 2019 , 2018 and 2017 , we recognized $1.9 million , $1.9 million and $1.5 million of share-based compensation expense for these DSU grants. Employee Stock Purchase Plan We also offer an employee stock purchase plan (“ESPP”). Under the ESPP, eligible Team Members may elect salary deferrals to purchase our common stock at a discount of 10% from its fair market value on the date of purchase. There are annual limitations on the amounts a Team Member may elect of either $25 thousand per Team Member or 10% of compensation, whichever is less. As of December 28, 2019 , there were 1.0 million shares available to be issued under the ESPP. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 28, 2019 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss: Accumulated other comprehensive loss, net of tax, consisted of the following: (in thousands) Unrealized Gain (Loss) on Postretirement Plan Foreign Currency Translation Accumulated Other Comprehensive (Loss) Income Balance, December 31, 2016 $ 1,952 $ (41,653 ) $ (39,701 ) 2017 activity (194 ) 14,941 14,747 Balance, December 30, 2017 1,758 (26,712 ) (24,954 ) 2018 activity (294 ) (18,945 ) (19,239 ) Balance, December 29, 2018 1,464 (45,657 ) (44,193 ) 2019 activity (142 ) 9,766 9,624 Balance, December 28, 2019 $ 1,322 $ (35,891 ) $ (34,569 ) |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 28, 2019 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements: Certain 100% wholly owned domestic subsidiaries of Advance, including its Material Subsidiaries (as defined in the 2017 Credit Agreement) serve as guarantors of Advance’s senior unsecured notes (“Guarantor Subsidiaries”). The subsidiary guarantees related to Advance’s senior unsecured notes are full and unconditional, joint and several and there are no restrictions on the ability of Advance to obtain funds from its Guarantor Subsidiaries. Certain of Advance’s wholly owned subsidiaries, including all of its foreign subsidiaries and captive insurance subsidiary, do not serve as guarantors of Advance’s senior unsecured notes (“Non-Guarantor Subsidiaries”). Set forth below are condensed consolidating financial statements presenting the financial position, results of operations, and cash flows of (i) Advance, (ii) the Guarantor Subsidiaries, (iii) the Non-Guarantor Subsidiaries, and (iv) the eliminations necessary to arrive at consolidated information for 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. The following tables present condensed consolidating balance sheets, condensed consolidating statements of operations, comprehensive income and cash flows, and should be read in conjunction with the consolidated financial statements herein. Condensed Consolidating Balance Sheet As of December 28, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 285,100 $ 133,565 $ — $ 418,665 Receivables, net 1,529 646,686 41,254 — 689,469 Inventories — 4,233,562 198,606 — 4,432,168 Other current assets 12,710 150,316 3,442 (11,227 ) 155,241 Total current assets 14,239 5,315,664 376,867 (11,227 ) 5,695,543 Property and equipment, net of accumulated depreciation 54 1,423,920 9,239 — 1,433,213 Operating lease right-of-use assets — 2,325,170 40,155 — 2,365,325 Goodwill — 943,364 48,876 — 992,240 Intangible assets, net — 670,386 39,370 — 709,756 Other assets 2,358 38,311 14,137 (2,358 ) 52,448 Investment in subsidiaries 4,445,209 550,910 — (4,996,119 ) — Intercompany note receivable 749,354 — — (749,354 ) — Due from intercompany, net — 571,981 342,832 (914,813 ) — $ 5,211,214 $ 11,839,706 $ 871,476 $ (6,673,871 ) $ 11,248,525 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ — $ 3,231,927 $ 190,060 $ — $ 3,421,987 Accrued expenses — 523,518 23,572 (11,227 ) 535,863 Other current liabilities — 508,811 11,041 — 519,852 Total current liabilities — 4,264,256 224,673 (11,227 ) 4,477,702 Long-term debt 747,320 — — — 747,320 Noncurrent operating lease liabilities — 1,986,039 31,120 — 2,017,159 Deferred income taxes — 320,822 15,549 (2,358 ) 334,013 Other long-term liabilities — 74,026 49,224 — 123,250 Intercompany note payable — 749,354 — (749,354 ) — Due to intercompany, net 914,813 — — (914,813 ) — Commitments and contingencies Stockholders' equity 3,549,081 4,445,209 550,910 (4,996,119 ) 3,549,081 $ 5,211,214 $ 11,839,706 $ 871,476 $ (6,673,871 ) $ 11,248,525 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 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 Year Ended December 28, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,342,240 $ 568,522 $ (201,759 ) $ 9,709,003 Cost of sales, including purchasing and warehousing costs — 5,252,418 336,110 (134,271 ) 5,454,257 Gross profit — 4,089,822 232,412 (67,488 ) 4,254,746 Selling, general and administrative expenses 28,216 3,503,529 160,717 (114,896 ) 3,577,566 Operating (loss) income (28,216 ) 586,293 71,695 47,408 677,180 Other, net: Interest expense (37,366 ) (2,310 ) (222 ) — (39,898 ) Other income (expense), net 66,842 (16,274 ) (2,695 ) (47,409 ) 464 Total other, net 29,476 (18,584 ) (2,917 ) (47,409 ) (39,434 ) Income before provision for income taxes 1,260 567,709 68,778 (1 ) 637,746 Provision for income taxes 2,429 131,885 16,537 (1 ) 150,850 (Loss) income before equity in earnings of subsidiaries (1,169 ) 435,824 52,241 — 486,896 Equity in earnings of subsidiaries 488,065 52,241 — (540,306 ) — Net income $ 486,896 $ 488,065 $ 52,241 $ (540,306 ) $ 486,896 Condensed Consolidating Statement of Operations For the Year Ended December 29, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,225,772 $ 519,883 $ (165,101 ) $ 9,580,554 Cost of sales, including purchasing and warehousing costs — 5,169,076 357,166 (165,101 ) 5,361,141 Gross profit — 4,056,696 162,717 — 4,219,413 Selling, general and administrative expenses 20,235 3,547,645 98,412 (51,154 ) 3,615,138 Operating (loss) income (20,235 ) 509,051 64,305 51,154 604,275 Other, net: Interest (expense) income (52,253 ) (4,336 ) 1 — (56,588 ) Other income (expense), net 73,174 (6,961 ) (7,482 ) (51,154 ) 7,577 Total other, net 20,921 (11,297 ) (7,481 ) (51,154 ) (49,011 ) Income before provision for income taxes 686 497,754 56,824 — 555,264 Provision for income taxes 2,519 117,015 11,883 — 131,417 (Loss) income before equity in earnings of subsidiaries (1,833 ) 380,739 44,941 — 423,847 Equity in earnings of subsidiaries 425,680 44,941 — (470,621 ) — Net income $ 423,847 $ 425,680 $ 44,941 $ (470,621 ) $ 423,847 Condensed Consolidating Statement of Operations For the Year Ended December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,034,790 $ 550,450 $ (211,456 ) $ 9,373,784 Cost of sales, including purchasing and warehousing costs — 5,107,063 393,128 (211,456 ) 5,288,735 Gross profit — 3,927,727 157,322 — 4,085,049 Selling, general and administrative expenses 30,478 3,453,406 82,155 (51,202 ) 3,514,837 Operating (loss) income (30,478 ) 474,321 75,167 51,202 570,212 Other, net: Interest (expense) income (52,305 ) (6,496 ) — — (58,801 ) Other income (expense), net 83,840 (17,729 ) (6,061 ) (51,202 ) 8,848 Total other, net 31,535 (24,225 ) (6,061 ) (51,202 ) (49,953 ) Income before provision for income taxes 1,057 450,096 69,106 — 520,259 Provision for income taxes 641 32,623 11,490 — 44,754 Income before equity in earnings of subsidiaries 416 417,473 57,616 — 475,505 Equity in earnings of subsidiaries 475,089 57,616 — (532,705 ) — Net income $ 475,505 $ 475,089 $ 57,616 $ (532,705 ) $ 475,505 Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 28, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 486,896 $ 488,065 $ 52,241 $ (540,306 ) $ 486,896 Other comprehensive income: Changes in net unrecognized other postretirement benefit costs — (142 ) — — (142 ) Currency translation adjustments — — 9,766 — 9,766 Equity in other comprehensive income of subsidiaries 9,624 9,766 — (19,390 ) — Total other comprehensive income 9,624 9,624 9,766 (19,390 ) 9,624 Comprehensive income $ 496,520 $ 497,689 $ 62,007 $ (559,696 ) $ 496,520 Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 29, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 423,847 $ 425,680 $ 44,941 $ (470,621 ) $ 423,847 Other comprehensive loss: Changes in net unrecognized other postretirement benefit costs — (294 ) — — (294 ) Currency translation adjustments — — (18,945 ) — (18,945 ) Equity in other comprehensive loss of subsidiaries (19,239 ) (18,945 ) — 38,184 — Total other comprehensive loss (19,239 ) (19,239 ) (18,945 ) 38,184 (19,239 ) Comprehensive income $ 404,608 $ 406,441 $ 25,996 $ (432,437 ) $ 404,608 Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 475,505 $ 475,089 $ 57,616 $ (532,705 ) $ 475,505 Other comprehensive income: Changes in net unrecognized other postretirement benefit costs — (194 ) — — (194 ) Currency translation adjustments — — 14,941 — 14,941 Equity in other comprehensive income of subsidiaries 14,747 14,941 — (29,688 ) — Total other comprehensive income 14,747 14,747 14,941 (29,688 ) 14,747 Comprehensive income $ 490,252 $ 489,836 $ 72,557 $ (562,393 ) $ 490,252 Condensed Consolidating Statement of Cash Flows For the Year Ended December 28, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 845,364 $ 21,545 $ — $ 866,909 Cash flows from investing activities: Purchases of property and equipment — (268,342 ) (1,787 ) — (270,129 ) Purchase of an indefinite-lived intangible asset — (201,519 ) — — (201,519 ) Proceeds from sales of property and equipment — 8,708 1 — 8,709 Net cash used in investing activities — (461,153 ) (1,786 ) — (462,939 ) Cash flows from financing activities: (Decrease) increase in bank overdrafts — (61,902 ) 2,563 — (59,339 ) Redemption of senior unsecured notes — (310,047 ) — — (310,047 ) Dividends paid — (17,185 ) — — (17,185 ) Proceeds from the issuance of common stock — 3,334 — — 3,334 Repurchases of common stock — (498,435 ) — — (498,435 ) Other, net — (481 ) — — (481 ) Net cash (used in) provided by financing activities — (884,716 ) 2,563 — (882,153 ) Effect of exchange rate changes on cash — — 321 — 321 Net (decrease) increase in cash and cash equivalents — (500,505 ) 22,643 — (477,862 ) Cash and cash equivalents , beginning of period — 785,605 110,922 — 896,527 Cash and cash equivalents , end of period $ — $ 285,100 $ 133,565 $ — $ 418,665 Condensed Consolidating Statement of Cash Flows For the Year Ended December 29, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 753,948 $ 57,080 $ — $ 811,028 Cash flows from investing activities: Purchases of property and equipment — (192,156 ) (1,559 ) — (193,715 ) Proceeds from sales of property and equipment — 1,842 46 — 1,888 Other, net — — — — — Net cash used in investing activities — (190,314 ) (1,513 ) — (191,827 ) Cash flows from financing activities: Increase (decrease) in bank overdrafts — 35,280 (3,266 ) — 32,014 Borrowings under credit facilities — — — — — Payments on credit facilities — — — — — Dividends paid — (17,819 ) — — (17,819 ) Proceeds from the issuance of common stock — 3,200 — — 3,200 Repurchases of common stock — (281,354 ) — — (281,354 ) Other, net (23 ) 44 — 23 44 Net cash used in financing activities (23 ) (260,649 ) (3,266 ) 23 (263,915 ) Effect of exchange rate changes on cash — — (5,696 ) — (5,696 ) Net (decrease) increase in cash and cash equivalents (23 ) 302,985 46,605 23 349,590 Cash and cash equivalents , beginning of period 23 482,620 64,317 (23 ) 546,937 Cash and cash equivalents , end of period $ — $ 785,605 $ 110,922 $ — $ 896,527 Condensed Consolidating Statement of Cash Flows For the Year Ended December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 593,091 $ 7,714 $ — $ 600,805 Cash flows from investing activities: Purchases of property and equipment — (187,993 ) (1,765 ) — (189,758 ) Proceeds from sales of property and equipment — 11,085 14 — 11,099 Other, net — 480 (460 ) — 20 Net cash used in investing activities — (176,428 ) (2,211 ) — (178,639 ) Cash flows from financing activities: Increase (decrease) in bank overdrafts — 16,290 (2,286 ) — 14,004 Borrowings under credit facilities — 534,400 — — 534,400 Payments on credit facilities — (534,400 ) — — (534,400 ) Dividends paid — (17,854 ) — — (17,854 ) Proceeds from the issuance of common stock — 4,076 — — 4,076 Repurchases of common stock — (6,498 ) — — (6,498 ) Other, net 1 (8,600 ) — (1 ) (8,600 ) Net cash provided by (used in) financing activities 1 (12,586 ) (2,286 ) (1 ) (14,872 ) Effect of exchange rate changes on cash — — 4,465 — 4,465 Net increase in cash and cash equivalents 1 404,077 7,682 (1 ) 411,759 Cash and cash equivalents , beginning of period 22 78,543 56,635 (22 ) 135,178 Cash and cash equivalents , end of period $ 23 $ 482,620 $ 64,317 $ (23 ) $ 546,937 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Data (unaudited) [Abstract] | |
Quarterly Financial Information (unaudited) | Quarterly Financial Data (unaudited): The following table summarizes quarterly financial data for 2019 and 2018 : 2019 First Second Third Fourth (in thousands, except per share data) (16 weeks) (12 weeks) (12 weeks) (12 weeks) Net sales $ 2,952,036 $ 2,332,246 $ 2,312,106 $ 2,112,614 Gross profit $ 1,304,612 $ 1,009,438 $ 1,011,926 $ 928,769 Net income $ 142,500 $ 124,820 $ 123,669 $ 95,907 Basic earnings per common share $ 1.99 $ 1.74 $ 1.76 $ 1.39 Diluted earnings per common share $ 1.98 $ 1.73 $ 1.75 $ 1.38 2018 First Second Third Fourth (in thousands, except per share data) (16 weeks) (12 weeks) (12 weeks) (12 weeks) Net sales $ 2,873,848 $ 2,326,652 $ 2,274,982 $ 2,105,072 Gross profit $ 1,272,284 $ 1,011,559 $ 1,006,927 $ 928,643 Net income $ 136,727 $ 117,836 $ 115,843 $ 53,441 Basic earnings per common share $ 1.85 $ 1.59 $ 1.57 $ 0.74 Diluted earnings per common share $ 1.84 $ 1.59 $ 1.56 $ 0.74 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 28, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Advance Auto Parts, Inc. Schedule II - Valuation and Qualifying Accounts (in thousands) Allowance for doubtful accounts receivable Balance at Beginning of Period Charges to Expenses Deductions (1) Balance at End of Period December 30, 2017 $ 29,164 $ 20,110 $ (31,055 ) $ 18,219 December 29, 2018 $ 18,219 $ 18,445 $ (18,622 ) $ 18,042 December 28, 2019 $ 18,042 $ 11,949 $ (15,742 ) $ 14,249 (1) Accounts written off during the period. These amounts did not impact our statement of operations for any year presented. Other valuation and qualifying accounts have not been reported in this schedule because they are either not applicable or because the information has been included elsewhere in this report . |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation Nature of Operations and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period, Policy [Policy Text Block] | Accounting Period Our fiscal year ends on the Saturday nearest the end of December. All references herein for the years “ 2019 ,” “ 2018 ” and “ 2017 ” represent the fiscal years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , which were all 52 weeks. |
Basis of Presentation | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Internal Use Software, Policy | We capitalized $29.1 million , $13.0 million and $11.2 million incurred for the development of internal use computer software during 2019 , 2018 and 2017 . These costs are currently classified in the Construction in progress category above, but once placed into service within the Furniture, fixtures equipment category, these costs will be depreciated on the straight-line method over 3 to 10 years. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash in banks and money market funds with original maturities of three months or less. Also, included in cash equivalents are credit card and debit card receivables from banks, which generally settle in less than four business days. |
Inventory | Inventory Our inventory consists primarily of parts, batteries, accessories and other products used on vehicles that have reasonably long shelf lives and is stated at the lower of cost or market. The cost of our merchandise inventory is primarily determined using the last-in, first-out (“LIFO”) method. 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 relating to prices paid in 2019 and prior years. We regularly review inventory quantities on-hand, consider whether we may have excess inventory based on our current approach for managing slower moving inventory and adjust the carrying value as necessary. |
Vendor Incentives | Vendor Incentives We receive incentives in the form of reductions to amounts owed to and/or payments from vendors related to volume rebates and other promotional considerations. Many of these incentives are under long-term agreements in excess of one year, while others are negotiated on an annual basis or shorter. Advertising allowances provided as a reimbursement of specific, incremental and identifiable costs incurred to promote a vendor’s products are included as an offset to selling, general and administrative expenses (“SG&A”) when the cost is incurred. Volume rebates and allowances that do not meet the requirements for offsetting in SG&A are recorded as a reduction to inventory as they are earned based on inventory purchases. Total deferred vendor incentives recorded as a reduction of Inventories were $173.8 million and $164.1 million as of December 28, 2019 and December 29, 2018 . We recognize other promotional incentives earned under long-term agreements not specifically related to volume of purchases as a reduction to cost of sales. However, these incentives are not deferred as a reduction of inventory and are recognized based on the cumulative net purchases as a percentage of total estimated net purchases over the life of the agreement. Short-term incentives with terms less than one year are generally recognized as a reduction to cost of sales over the duration of the agreements. Amounts received or receivable from vendors that are not yet earned are reflected as deferred revenue in the accompanying consolidated balance sheets. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged directly to expense when incurred; major improvements are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the account balances, with any gain or loss reflected in the consolidated statements of operations. Depreciation of land improvements, buildings, furniture, fixtures and equipment and vehicles is provided over the estimated useful lives of the respective assets using the straight-line method. Depreciation of building and leasehold improvements is provided over the shorter of the original useful lives of the respective assets or the term of the lease using the straight-line method. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets We perform our evaluation for the impairment of goodwill and indefinite-lived intangible assets for our reporting units annually as of the first day of the fourth quarter, or when indications of potential impairment exist. These indicators would include a significant change in operating performance, the business climate, legal factors, competition, or a planned sale or disposition of a significant portion of the business, among other factors. We assess qualitative factors such as current company performance and overall economic factors to determine if it is more-likely-than-not that the goodwill might be impaired and whether it is necessary to perform a quantitative goodwill impairment test. In the quantitative goodwill test, we compare the carrying value of a reporting unit to its fair value. If the fair value of the reporting unit is lower than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds the reporting unit's fair value. Our indefinite-lived intangible assets are tested for impairment at the asset group level. Indefinite-lived intangibles are evaluated by comparing the carrying amount of the asset to the future discounted cash flows that the asset is expected to generate. If the fair value based on the future discounted cash flows exceeds the carrying value, we conclude that no intangible asset impairment has occurred. If the carrying value of the indefinite-lived intangible asset exceeds the fair value, we recognize an impairment loss. We have five operating segments, defined as “Northern Division,” “Southern Division,” “Carquest Canada,” “Independents” and “Worldpac.” As each operating segment represents a reporting unit, goodwill is assigned to each reporting unit. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets We evaluate the recoverability of our long-lived assets, including finite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable and exceeds its fair value. When such an event occurs, we estimate the undiscounted future cash flows expected to result from the use of the long-lived asset or asset group and its eventual disposition. These impairment evaluations involve estimates of asset useful lives and future cash flows. If the undiscounted expected future cash flows are less than the carrying amount of the asset and the carrying amount of the asset exceeds its fair value, an impairment loss is recognized. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on quoted market prices or other valuation techniques (e.g., discounted cash flow analysis). |
Self-Insurance | Self-Insurance |
Warranty Liabilities | Warranty Liabilities The warranty obligation on the majority of merchandise sold by us with a manufacturer’s warranty is the responsibility of our vendors. However, we have an obligation to provide customers replacement of certain merchandise at no cost or merchandise at a prorated cost if under a warranty and not covered by the manufacturer. As of December 28, 2019 and December 29, 2018 , our warranty liability primarily consisted of batteries with warranty coverage sold by us. We estimate our warranty obligation at the time of sale based on the historical return experience, sales level and cost of the respective product sold. To the extent vendors provide upfront allowances in lieu of accepting the obligation for warranty claims and the allowance is in excess of the related warranty expense, the excess is recorded as a reduction to cost of sales. |
Leases | Leases We lease certain store locations, distribution centers, office spaces, equipment and vehicles. We recognize lease expense on a straight-line basis over the initial term of the lease unless external economic factors exist such that renewals are reasonably certain. In those instances, the renewal period would be included in the lease term to determine the period in which to recognize the lease expense. Most leases require us to pay taxes, maintenance, insurance and other certain costs applicable to the leased premises. Leases for periods through December 29, 2018 were reported under Accounting Standards Codification (“ASC”) 840, Leases (Topic 840) (“ASC 840”), including the disclosure requirements. Under ASC 840, differences between the calculated rent expense and cash payments were recorded as a liability within the Accrued expenses and Other long-term liabilities captions in the accompanying consolidated balance sheets, based on the terms of the lease. Effective December 30, 2018, we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), 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. 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 store locations, distribution centers, office spaces and vehicle leases, we elected not to separate lease components from nonlease components. The adoption of ASU 2016-02 resulted in the recording of operating 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 2019, the adoption of the new standard did not have a material impact on our condensed consolidated statements of operations and condensed consolidated statements of cash flows as substantially all of our leases are operating in nature. |
Fair Value Measurements | Fair Value Measurements A three-level valuation hierarchy, based upon observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. These two types of inputs create the following fair value hierarchy: Level 1 - Quoted prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose significant inputs are observable; and Level 3 - Instruments whose significant inputs are unobservable. Financial instruments are transferred in and/or out of Level 1, 2 or 3 at the beginning of the accounting period in which there is a change in the valuation inputs. |
Closed Facility Liabilities and Exit Activities | Closed Facility Liabilities and Exit Activities We review the operating performance of our existing store locations and close or relocate certain stores identified as underperforming. For periods through December 29, 2018, and in accordance with ASC 420, Exit or Disposal Cost Obligations , expenses accrued pertaining to closed facility exit activities are included in our closed facility liabilities, within Accrued expenses and Other long-term liabilities in the accompanying consolidated balance sheets, and recognized in Cost of sales or SG&A in the accompanying consolidated statements of operations at the time of facility closure. As of December 29, 2018 , the closed facility liabilities, which comprised of the present value of the remaining lease obligations and management’s estimate of future costs of insurance, property tax and common area maintenance expenses, reduced by the present value of estimated revenues from subleases and lease buyouts, were $42.3 million . As a result of our transition to ASU 2016-02 on December 30, 2018, our lease liabilities for closed facilities are included within the lease liability recorded in Other current liabilities and Noncurrent operating lease liabilities in the accompanying consolidated balance sheet, and the operating lease right-of-use assets recorded upon transition was recorded net of the previously recorded closed facility lease obligation. Employees receiving severance benefits as the result of a store closing or other restructuring activity are required to render service until they are terminated in order to receive benefits. Severance benefits are recognized over the related service period. Other restructuring costs, including costs to relocate employees, are recognized in the period in which the liability is incurred. |
Share-Based Payments | Share-Based Payments We provide share-based compensation to our eligible Team Members and Board of Directors. We are required to exercise judgment and make estimates when determining the (i) fair value of each award granted and (ii) projected number of awards expected to vest. We calculate the fair value of all share-based awards at the date of grant and use the straight-line method to amortize this fair value as compensation cost over the requisite service period. |
Revenue Recognition | Revenues Revenue for periods through December 30, 2017 was reported under ASC 605, Revenue Recognition (Topic 605) . We recognized revenue at the time the sale is made, at which time our walk-in customers took immediate possession of the merchandise or same-day delivery was made to our Professional delivery customers, which included certain independently owned store locations. For e-commerce sales, revenue was recognized either at the time of pick-up at one of our store locations or at the time of shipment depending on the customer’s order designation. Sales were recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. We estimated the reduction to sales and cost of sales for returns based on current sales levels and our historical return experience. Effective December 31, 2017, we adopted ASC 606, Revenue From Contracts With Customers (Topic 606) (“ASC 606”). The results of applying Topic 606 using the modified retrospective approach were insignificant and did not have a material impact on our consolidated financial condition, results of operations, cash flows, business process, controls or systems. ASC 606 defines a performance obligation as a promise in a contract to transfer a distinct good or service to the customer and is considered the unit of account. The majority of our contracts have one single performance obligation as the promise to transfer the individual goods is not separately identifiable from other promises in the contracts and is, therefore, not distinct. Discounts and incentives are treated as separate performance obligations. We allocate the contract’s transaction price to each of these performance obligations separately using explicitly stated amounts or our best estimate using historical data. Additionally, we estimate and record gift card breakage as redemptions occur. In accordance with ASC 606 revenue is recognized at the time the sale is made, at which time our walk-in customers take immediate possession of the merchandise or same-day delivery is made to our Professional delivery customers, which include certain independently-owned store locations. Payment terms are established for our Professional delivery customers based on pre-established credit requirements. Payment terms vary depending on the customer and generally range from 1 to 30 days. Based on the nature of receivables, no significant financing components exist. For e-commerce sales, revenue is recognized either at the time of pick-up at one of our store locations or at the time of shipment depending on the customer's order designation. Sales are recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. We estimate the reduction to Net sales and Cost of sales for returns based on current sales levels and our historical return experience. We provide assurance type warranty coverage primarily on batteries, brakes and struts whereby we are required to provide replacement product at no cost or a reduced cost for a set period of time. |
Receivables | Receivables, net consist primarily of receivables from Professional customers. We grant credit to certain Professional customers who meet our pre-established credit requirements. Accounts receivable is stated at net realizable value. We regularly review accounts receivable balances and maintains allowances for doubtful accounts for estimated losses whenever events or circumstances indicate the carrying value may not be recoverable. We consider the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. We control credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures. |
Cost of Sales | Cost of Sales Cost of sales includes actual product cost, warranty costs, vendor incentives, cash discounts on payments to vendors, costs associated with operating our distribution network, including payroll and benefits costs, occupancy costs and depreciation, in-bound freight-related costs from our vendors, impairment of inventory resulting from store closures and costs associated with moving merchandise inventories from our distribution centers to stores, branch locations and customers. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses SG&A includes payroll and benefits costs for store and corporate Team Members, occupancy costs of store and corporate facilities, depreciation and amortization related to store and corporate assets, share-based compensation expense, advertising, self-insurance, costs of consolidating, converting or closing facilities, including early termination of lease obligations, severance and impairment charges, professional services and costs associated with our Professional delivery program, including payroll and benefit costs, and transportation expenses associated with moving merchandise inventories from stores and branches to customer locations. |
Advertising Costs | Advertising Costs We expense advertising costs as incurred. Advertising expense, net of qualifying vendor promotional funds, was $117.3 million , $120.9 million and $102.8 million in 2019 , 2018 and 2017 . Vendor promotional funds, which reduced advertising expense, amounted to $45.7 million and $26.9 million and $33.3 million in 2019 , 2018 and 2017 . |
Foreign Currency Translation | Foreign Currency Translation |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under the asset and liability method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and for income tax reporting purposes. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date. We recognize tax benefits and/or tax liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts as we must determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis or when new information becomes available to management. The reevaluations are based on many factors, including but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes of limitations and new federal or state audit activity. Any change in either our recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. |
Earnings per Share | Earnings per Share Basic earnings per share of common stock has been computed based on the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by including the effect of dilutive securities. Diluted earnings per share of common stock reflects the weighted-average number of shares of common stock outstanding, outstanding deferred stock units and the impact of outstanding stock options and stock appreciation rights (collectively “share-based awards”). Share-based awards containing performance conditions are included in the dilution impact as those conditions are met. |
Segment Information | Segment Information Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. Our CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by information about our five operating segments, for purposes of allocating resources and evaluating financial performance. We have one reportable segment as the five operating segments are aggregated due primarily to the economic and operational similarities of each operating segment as the stores and branches have similar characteristics, including the nature of the products and services, customer base and the methods used to distribute products and provide service to its customers. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses , ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses and ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief , which provided additional implementation guidance on the previously issued ASU. The previously mentioned ASUs are effective for fiscal years beginning after December 15, 2019, with early adoption permitted. We expect the adoption of this new standard to have an insignificant impact on our consolidated financial condition, results of operations or cash flows. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes. This ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. We expect the adoption of this new standard to have an insignificant impact on our consolidated financial condition, results of operations or cash flows. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Revenue From External Customers By Products And Services | The following table summarizes financial information for each of our product groups. Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Percentage of Sales, by Product Group Parts and Batteries 67 % 66 % 65 % Accessories and Chemicals 21 % 20 % 20 % Engine Maintenance 11 % 13 % 14 % Other 1 % 1 % 1 % Total 100 % 100 % 100 % |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Inventory, Net [Abstract] | |
Schedule Of Inventory | Inventory balances were as follows: (in thousands) December 28, 2019 December 29, 2018 Inventories at first in, first out (“FIFO”) $ 4,290,565 $ 4,119,617 Adjustments to state inventories at LIFO 141,603 242,930 Inventories at LIFO $ 4,432,168 $ 4,362,547 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Indefinite-Lived Intangible Assets | A summary of the composition of the gross carrying amounts and accumulated amortization of acquired intangible assets are presented in the following table: December 28, 2019 December 29, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Customer relationships $ 350,352 $ (179,220 ) $ 171,132 $ 349,157 $ (148,889 ) $ 200,268 Favorable leases (1) — — — 27,139 (12,791 ) 14,348 Non-compete and other 38,256 (37,318 ) 938 37,875 (36,974 ) 901 388,608 (216,538 ) 172,070 414,171 (198,654 ) 215,517 Indefinite-lived intangible assets: Brands, trademark and tradenames 537,686 — 537,686 335,076 — 335,076 Total intangible assets $ 926,294 $ (216,538 ) $ 709,756 $ 749,247 $ (198,654 ) $ 550,593 (1) As a result of our adoption of ASU 2016-02 on December 30, 2018, favorable lease assets were derecognized through an opening adjustment to Operating lease right-of-use assets in the accompanying consolidated balance sheet. |
Schedule Of Expected Amortization Expense | The table below shows expected amortization expense for the next five years and thereafter for acquired intangible assets recorded as of December 28, 2019 : Year Amount (in thousands) 2020 $ 30,206 2021 30,104 2022 30,008 2023 27,099 2024 27,291 Thereafter 27,362 $ 172,070 |
Receivables, net (Tables)
Receivables, net (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Receivables [Abstract] | |
Schedule Of Accounts Receivable | Receivables, net consist of the following: (in thousands) December 28, 2019 December 29, 2018 Trade $ 422,403 $ 397,909 Vendor 249,009 228,024 Other 32,306 17,081 Total receivables 703,718 643,014 Less: allowance for doubtful accounts (14,249 ) (18,042 ) Receivables, net $ 689,469 $ 624,972 |
Long-term Debt and Fair Value_2
Long-term Debt and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | Long-term debt consists of the following: (in thousands) December 28, 2019 December 29, 2018 5.75% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $802 at December 29, 2018) due May 1, 2020 $ — $ 299,198 4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $559 and $833 at December 28, 2019 and December 29, 2018) due January 15, 2022 299,441 299,167 4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $2,121 and $2,645 at December 28, 2019 and December 29, 2018) due December 1, 2023 447,879 447,355 Other — 210 747,320 1,045,930 Less: Current portion of long-term debt — (210 ) Long-term debt, excluding current portion $ 747,320 $ 1,045,720 Fair value of long-term debt $ 795,000 $ 1,074,000 |
Schedule Of Maturities Of Long-term Debt | As of December 28, 2019 , the aggregate future annual maturities of long-term debt instruments are as follows: Year Amount (in thousands) 2020 $ — 2021 — 2022 300,000 2023 450,000 2024 — Thereafter — $ 750,000 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment consists of the following: (in thousands) December 28, 2019 December 29, 2018 Land and land improvements 0 - 10 years $ 457,960 $ 453,511 Buildings 30 - 40 years 498,871 488,977 Building and leasehold improvements 2 - 15 years 535,082 504,518 Furniture, fixtures and equipment 2 - 20 years 1,850,485 1,740,960 Vehicles 2 - 10 years 14,612 14,636 Construction in progress 114,052 84,885 3,471,062 3,287,487 Less - Accumulated depreciation (2,037,849 ) (1,918,502 ) Property and equipment, net $ 1,433,213 $ 1,368,985 |
Leases and Other Commitments (T
Leases and Other Commitments (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases and Other Commitments [Abstract] | |
Schedule of Operating Lease Liabilities | Operating lease liabilities consist of the following: (in thousands) December 28, 2019 Total operating lease liabilities $ 2,495,141 Less: Current portion of operating lease liabilities (477,982 ) Noncurrent operating lease liabilities $ 2,017,159 |
Lease, Cost | Total lease cost is comprised of the following: Year Ended (in thousands) December 28, 2019 Operating lease cost $ 522,928 Variable lease cost 155,892 Total lease cost $ 678,820 |
Lessee, Operating Lease, Liability, Maturity | The future maturity of lease liabilities are as follows: (in thousands) December 28, 2019 2020 $ 572,426 2021 482,494 2022 390,110 2023 350,636 2024 272,683 Thereafter 832,501 Total lease payments 2,900,850 Less: Imputed interest (405,709 ) Total operating lease liabilities $ 2,495,141 |
Schedule of Other Information Relating to Lease Liabilities | Other information relating to our lease liabilities is as follows: Year Ended (in thousands) December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 517,945 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 398,510 |
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: Year Amount (in thousands) 2019 $ 520,541 2020 481,812 2021 416,895 2022 349,470 2023 270,116 Thereafter 837,441 $ 2,876,275 |
Schedule of Rent Expense | As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, our net rent expense was as follows: Year Ended (in thousands) December 29, 2018 December 30, 2017 Minimum facility rentals $ 484,291 $ 483,178 Equipment rentals 23,635 24,786 Vehicle rentals 53,015 32,670 560,941 540,634 Less: Sub-lease income (7,141 ) (7,144 ) $ 553,800 $ 533,490 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Payables and Accruals [Abstract] | |
Schedule Of Accrued Liabilities | Accrued expenses consist of the following: (in thousands) December 28, 2019 December 29, 2018 Payroll and related benefits $ 109,371 $ 129,909 Taxes payable 96,834 119,203 Self-insurance reserves 64,845 70,962 Warranty reserves 36,820 45,280 Capital expenditures 26,201 15,365 Transportation 21,679 28,872 Other 180,113 213,550 Total accrued expenses $ 535,863 $ 623,141 |
Schedule Of Product Warranty Liability | The following table presents changes in our warranty reserves: Year Ended (in thousands) December 28, 2019 December 29, 2018 December 30, 2017 Warranty reserve, beginning of period $ 45,280 $ 49,024 $ 47,243 Additions to reserve 34,117 43,200 50,895 Reduction and utilization of reserve (42,577 ) (46,944 ) (49,114 ) Warranty reserve, end of period $ 36,820 $ 45,280 $ 49,024 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | The computation of basic and diluted earnings per share is as follows: Year Ended (in thousands, except per share data) December 28, 2019 December 29, 2018 December 30, 2017 Numerator Net income applicable to common shares $ 486,896 $ 423,847 $ 475,505 Denominator Basic weighted average common shares 70,869 73,728 73,846 Dilutive impact of share-based awards 296 263 264 Diluted weighted average common shares (1) 71,165 73,991 74,110 Basic earnings per common share $ 6.87 $ 5.75 $ 6.44 Diluted earnings per common share $ 6.84 $ 5.73 $ 6.42 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision For Income Taxes, Current And Deferred | Provision for income taxes consists of the following: (in thousands) Current Deferred Total 2019 Federal $ 84,490 $ 13,618 $ 98,108 State 26,924 8,117 35,041 Foreign 16,288 1,413 17,701 $ 127,702 $ 23,148 $ 150,850 2018 Federal $ 72,598 $ 14,745 $ 87,343 State 19,571 3,439 23,010 Foreign 23,292 (2,228 ) 21,064 $ 115,461 $ 15,956 $ 131,417 2017 Federal $ 146,855 $ (146,741 ) $ 114 State 31,352 (3,437 ) 27,915 Foreign 17,810 (1,085 ) 16,725 $ 196,017 $ (151,263 ) $ 44,754 |
Schedule Of Effective Income Tax Rate Reconciliation | The provision for income taxes differed from the amount computed by applying the federal statutory income tax rate due to: Year Ended (in thousands) December 28, 2019 December 29, 2018 December 30, 2017 Income before provision for income taxes at statutory U.S. federal income tax rate (21% for 2019 and 2018 and 35% for 2017) $ 133,927 $ 116,605 $ 182,091 State income taxes, net of federal income tax benefit 27,682 18,178 18,145 Impact of the Act — (5,655 ) (143,756 ) Other, net (10,759 ) 2,289 (11,726 ) $ 150,850 $ 131,417 $ 44,754 |
Schedule Of Deferred Tax Assets and Liabilities | Temporary differences that give rise to significant deferred income tax assets (liabilities) are as follows: (in thousands) December 28, 2019 December 29, 2018 Deferred income tax assets: Accrued expenses not currently deductible for tax $ 38,064 $ 40,066 Share-based compensation 9,540 7,780 Accrued medical and workers compensation 22,202 34,430 Net operating loss carryforwards 5,565 7,423 Operating lease liabilities 627,707 21,091 Other, net 8,430 8,390 Total deferred income tax assets before valuation allowances 711,508 119,180 Less: Valuation allowance (3,592 ) (8,694 ) Total deferred income tax assets 707,916 110,486 Deferred income tax liabilities: Property and equipment (116,277 ) (92,505 ) Inventories (183,428 ) (196,772 ) Intangible assets (136,078 ) (139,562 ) Operating lease right-of-use assets (606,146 ) — Total deferred income tax liabilities (1,041,929 ) (428,839 ) Net deferred income tax liabilities $ (334,013 ) $ (318,353 ) |
Unrecognized Tax Benefits | The following table summarizes the activity of our gross unrecognized tax benefits: (in thousands) December 28, 2019 December 29, 2018 December 30, 2017 Unrecognized tax benefits, beginning of period $ 30,824 $ 22,665 $ 13,946 Increases related to prior period tax positions 4,243 5,435 8,077 Decreases related to prior period tax positions (2,277 ) (1,356 ) (2,331 ) Increases related to current period tax positions 3,741 5,425 5,644 Settlements (331 ) (14 ) (1,496 ) Expiration of statute of limitations (6,438 ) (1,331 ) (1,175 ) Unrecognized tax benefits, end of period $ 29,762 $ 30,824 $ 22,665 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule Of Share-based Payment Award Valuation Assumptions | Restricted Stock Units For time-based RSUs, the fair value of each award was determined based on the market price of our common stock on the date of grant. Time-based RSUs generally vest over a three-year period in equal annual installments beginning on the first anniversary of the grant date. During the vesting period, holders of RSUs are entitled to receive dividend equivalents, but are not entitled to voting rights. For performance-based RSUs, the fair value of each award was determined based on the market price of our common stock on the date of grant. Performance-based awards generally may vest following a three-year period subject to our achievement of certain financial goals as specified in the grant agreements. Depending on our results during the three-year performance period, the actual number of awards vesting at the end of the period generally ranges from 0% to 200% of the performance award. Performance-based RSUs generally do not have dividend equivalent rights and do not have voting rights until the shares are earned and issued following the applicable performance period. The number of performance-based awards outstanding is based on the number of awards that we believed were probable of vesting at December 28, 2019 . Performance-based RSU’s granted during 2019 are presented as grants in the table at their respective target levels. The change in units based on performance represents the change in the number of granted awards expected to vest based on the updated probability assessment as of December 28, 2019 . Compensation expense for performance-based awards of $7.8 million , $5.4 million , and $13.6 million in 2019 , 2018 and 2017 , was determined based on management’s estimate of the probable vesting outcome. For market-based RSUs, the fair value of each award was determined using a Monte Carlo simulation model. The model uses multiple input variables that determined the probability of satisfying the market condition requirements as follows: Monte Carlo Simulation Model Assumptions 2019 2018 2017 Risk-free interest rate (1) 2.5 % 2.4 % 1.6 % Expected dividend yield 0.2 % 0.2 % 0.2 % Expected stock price volatility (2) 33.5 % 34.0 % 26.2 % (1) The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate having term consistent with the vesting period of the award. (2) Expected volatility is determined based on historical volatility over a matching look-back period and is consistent with the correlation coefficients between our stock prices and our peer group. Additionally, we estimated a liquidity discount of 10.5% |
Restricted Stock Units Activity | Time-Based Performance-Based Market-Based (in thousands, except per share data) Number of Awards Weighted-Average Grant Date Fair Value Number of Awards Weighted-Average Grant Date Fair Value Number of Awards Weighted-Average Grant Date Fair Value Nonvested at December 29, 2018 410 $ 132.49 125 $ 126.19 53 $ 133.78 Granted 279 157.31 39 159.80 28 165.70 Change in units based on performance — — (6 ) 120.72 — — Vested (164 ) 133.97 (17 ) 160.94 — — Forfeited (65 ) 140.11 (14 ) 128.10 (8 ) 142.01 Nonvested at December 28, 2019 460 $ 145.95 127 $ 132.03 73 145.08 |
Restricted Stock Units Activity Additional Information | Year Ended (in thousands, except per share data) December 28, 2019 December 29, 2018 December 30, 2017 Time-based: Weighted average fair value of RSUs granted $ 157.31 $ 130.12 $ 131.01 Total grant date fair value of RSUs vested $ 21,955 $ 17,527 $ 13,578 Performance-based: Weighted average fair value of RSUs granted $ 159.80 $ 119.08 $ 146.42 Total grant date fair value of RSUs vested $ 2,666 $ 9,224 $ 7,823 Market-based: Weighted average fair value of RSUs granted $ 165.70 $ 131.48 $ 139.33 Total grant date fair value of RSUs vested $ — $ — $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss, net of tax, consisted of the following: (in thousands) Unrealized Gain (Loss) on Postretirement Plan Foreign Currency Translation Accumulated Other Comprehensive (Loss) Income Balance, December 31, 2016 $ 1,952 $ (41,653 ) $ (39,701 ) 2017 activity (194 ) 14,941 14,747 Balance, December 30, 2017 1,758 (26,712 ) (24,954 ) 2018 activity (294 ) (18,945 ) (19,239 ) Balance, December 29, 2018 1,464 (45,657 ) (44,193 ) 2019 activity (142 ) 9,766 9,624 Balance, December 28, 2019 $ 1,322 $ (35,891 ) $ (34,569 ) |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheet As of December 28, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 285,100 $ 133,565 $ — $ 418,665 Receivables, net 1,529 646,686 41,254 — 689,469 Inventories — 4,233,562 198,606 — 4,432,168 Other current assets 12,710 150,316 3,442 (11,227 ) 155,241 Total current assets 14,239 5,315,664 376,867 (11,227 ) 5,695,543 Property and equipment, net of accumulated depreciation 54 1,423,920 9,239 — 1,433,213 Operating lease right-of-use assets — 2,325,170 40,155 — 2,365,325 Goodwill — 943,364 48,876 — 992,240 Intangible assets, net — 670,386 39,370 — 709,756 Other assets 2,358 38,311 14,137 (2,358 ) 52,448 Investment in subsidiaries 4,445,209 550,910 — (4,996,119 ) — Intercompany note receivable 749,354 — — (749,354 ) — Due from intercompany, net — 571,981 342,832 (914,813 ) — $ 5,211,214 $ 11,839,706 $ 871,476 $ (6,673,871 ) $ 11,248,525 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ — $ 3,231,927 $ 190,060 $ — $ 3,421,987 Accrued expenses — 523,518 23,572 (11,227 ) 535,863 Other current liabilities — 508,811 11,041 — 519,852 Total current liabilities — 4,264,256 224,673 (11,227 ) 4,477,702 Long-term debt 747,320 — — — 747,320 Noncurrent operating lease liabilities — 1,986,039 31,120 — 2,017,159 Deferred income taxes — 320,822 15,549 (2,358 ) 334,013 Other long-term liabilities — 74,026 49,224 — 123,250 Intercompany note payable — 749,354 — (749,354 ) — Due to intercompany, net 914,813 — — (914,813 ) — Commitments and contingencies Stockholders' equity 3,549,081 4,445,209 550,910 (4,996,119 ) 3,549,081 $ 5,211,214 $ 11,839,706 $ 871,476 $ (6,673,871 ) $ 11,248,525 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 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 Statements of Operations | Condensed Consolidating Statement of Operations For the Year Ended December 28, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,342,240 $ 568,522 $ (201,759 ) $ 9,709,003 Cost of sales, including purchasing and warehousing costs — 5,252,418 336,110 (134,271 ) 5,454,257 Gross profit — 4,089,822 232,412 (67,488 ) 4,254,746 Selling, general and administrative expenses 28,216 3,503,529 160,717 (114,896 ) 3,577,566 Operating (loss) income (28,216 ) 586,293 71,695 47,408 677,180 Other, net: Interest expense (37,366 ) (2,310 ) (222 ) — (39,898 ) Other income (expense), net 66,842 (16,274 ) (2,695 ) (47,409 ) 464 Total other, net 29,476 (18,584 ) (2,917 ) (47,409 ) (39,434 ) Income before provision for income taxes 1,260 567,709 68,778 (1 ) 637,746 Provision for income taxes 2,429 131,885 16,537 (1 ) 150,850 (Loss) income before equity in earnings of subsidiaries (1,169 ) 435,824 52,241 — 486,896 Equity in earnings of subsidiaries 488,065 52,241 — (540,306 ) — Net income $ 486,896 $ 488,065 $ 52,241 $ (540,306 ) $ 486,896 Condensed Consolidating Statement of Operations For the Year Ended December 29, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,225,772 $ 519,883 $ (165,101 ) $ 9,580,554 Cost of sales, including purchasing and warehousing costs — 5,169,076 357,166 (165,101 ) 5,361,141 Gross profit — 4,056,696 162,717 — 4,219,413 Selling, general and administrative expenses 20,235 3,547,645 98,412 (51,154 ) 3,615,138 Operating (loss) income (20,235 ) 509,051 64,305 51,154 604,275 Other, net: Interest (expense) income (52,253 ) (4,336 ) 1 — (56,588 ) Other income (expense), net 73,174 (6,961 ) (7,482 ) (51,154 ) 7,577 Total other, net 20,921 (11,297 ) (7,481 ) (51,154 ) (49,011 ) Income before provision for income taxes 686 497,754 56,824 — 555,264 Provision for income taxes 2,519 117,015 11,883 — 131,417 (Loss) income before equity in earnings of subsidiaries (1,833 ) 380,739 44,941 — 423,847 Equity in earnings of subsidiaries 425,680 44,941 — (470,621 ) — Net income $ 423,847 $ 425,680 $ 44,941 $ (470,621 ) $ 423,847 Condensed Consolidating Statement of Operations For the Year Ended December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,034,790 $ 550,450 $ (211,456 ) $ 9,373,784 Cost of sales, including purchasing and warehousing costs — 5,107,063 393,128 (211,456 ) 5,288,735 Gross profit — 3,927,727 157,322 — 4,085,049 Selling, general and administrative expenses 30,478 3,453,406 82,155 (51,202 ) 3,514,837 Operating (loss) income (30,478 ) 474,321 75,167 51,202 570,212 Other, net: Interest (expense) income (52,305 ) (6,496 ) — — (58,801 ) Other income (expense), net 83,840 (17,729 ) (6,061 ) (51,202 ) 8,848 Total other, net 31,535 (24,225 ) (6,061 ) (51,202 ) (49,953 ) Income before provision for income taxes 1,057 450,096 69,106 — 520,259 Provision for income taxes 641 32,623 11,490 — 44,754 Income before equity in earnings of subsidiaries 416 417,473 57,616 — 475,505 Equity in earnings of subsidiaries 475,089 57,616 — (532,705 ) — Net income $ 475,505 $ 475,089 $ 57,616 $ (532,705 ) $ 475,505 |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 28, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 486,896 $ 488,065 $ 52,241 $ (540,306 ) $ 486,896 Other comprehensive income: Changes in net unrecognized other postretirement benefit costs — (142 ) — — (142 ) Currency translation adjustments — — 9,766 — 9,766 Equity in other comprehensive income of subsidiaries 9,624 9,766 — (19,390 ) — Total other comprehensive income 9,624 9,624 9,766 (19,390 ) 9,624 Comprehensive income $ 496,520 $ 497,689 $ 62,007 $ (559,696 ) $ 496,520 Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 29, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 423,847 $ 425,680 $ 44,941 $ (470,621 ) $ 423,847 Other comprehensive loss: Changes in net unrecognized other postretirement benefit costs — (294 ) — — (294 ) Currency translation adjustments — — (18,945 ) — (18,945 ) Equity in other comprehensive loss of subsidiaries (19,239 ) (18,945 ) — 38,184 — Total other comprehensive loss (19,239 ) (19,239 ) (18,945 ) 38,184 (19,239 ) Comprehensive income $ 404,608 $ 406,441 $ 25,996 $ (432,437 ) $ 404,608 Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 475,505 $ 475,089 $ 57,616 $ (532,705 ) $ 475,505 Other comprehensive income: Changes in net unrecognized other postretirement benefit costs — (194 ) — — (194 ) Currency translation adjustments — — 14,941 — 14,941 Equity in other comprehensive income of subsidiaries 14,747 14,941 — (29,688 ) — Total other comprehensive income 14,747 14,747 14,941 (29,688 ) 14,747 Comprehensive income $ 490,252 $ 489,836 $ 72,557 $ (562,393 ) $ 490,252 |
Condensed Consolidating Cash Flow Statements | Condensed Consolidating Statement of Cash Flows For the Year Ended December 28, 2019 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 845,364 $ 21,545 $ — $ 866,909 Cash flows from investing activities: Purchases of property and equipment — (268,342 ) (1,787 ) — (270,129 ) Purchase of an indefinite-lived intangible asset — (201,519 ) — — (201,519 ) Proceeds from sales of property and equipment — 8,708 1 — 8,709 Net cash used in investing activities — (461,153 ) (1,786 ) — (462,939 ) Cash flows from financing activities: (Decrease) increase in bank overdrafts — (61,902 ) 2,563 — (59,339 ) Redemption of senior unsecured notes — (310,047 ) — — (310,047 ) Dividends paid — (17,185 ) — — (17,185 ) Proceeds from the issuance of common stock — 3,334 — — 3,334 Repurchases of common stock — (498,435 ) — — (498,435 ) Other, net — (481 ) — — (481 ) Net cash (used in) provided by financing activities — (884,716 ) 2,563 — (882,153 ) Effect of exchange rate changes on cash — — 321 — 321 Net (decrease) increase in cash and cash equivalents — (500,505 ) 22,643 — (477,862 ) Cash and cash equivalents , beginning of period — 785,605 110,922 — 896,527 Cash and cash equivalents , end of period $ — $ 285,100 $ 133,565 $ — $ 418,665 Condensed Consolidating Statement of Cash Flows For the Year Ended December 29, 2018 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 753,948 $ 57,080 $ — $ 811,028 Cash flows from investing activities: Purchases of property and equipment — (192,156 ) (1,559 ) — (193,715 ) Proceeds from sales of property and equipment — 1,842 46 — 1,888 Other, net — — — — — Net cash used in investing activities — (190,314 ) (1,513 ) — (191,827 ) Cash flows from financing activities: Increase (decrease) in bank overdrafts — 35,280 (3,266 ) — 32,014 Borrowings under credit facilities — — — — — Payments on credit facilities — — — — — Dividends paid — (17,819 ) — — (17,819 ) Proceeds from the issuance of common stock — 3,200 — — 3,200 Repurchases of common stock — (281,354 ) — — (281,354 ) Other, net (23 ) 44 — 23 44 Net cash used in financing activities (23 ) (260,649 ) (3,266 ) 23 (263,915 ) Effect of exchange rate changes on cash — — (5,696 ) — (5,696 ) Net (decrease) increase in cash and cash equivalents (23 ) 302,985 46,605 23 349,590 Cash and cash equivalents , beginning of period 23 482,620 64,317 (23 ) 546,937 Cash and cash equivalents , end of period $ — $ 785,605 $ 110,922 $ — $ 896,527 Condensed Consolidating Statement of Cash Flows For the Year Ended December 30, 2017 (in thousands) Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 593,091 $ 7,714 $ — $ 600,805 Cash flows from investing activities: Purchases of property and equipment — (187,993 ) (1,765 ) — (189,758 ) Proceeds from sales of property and equipment — 11,085 14 — 11,099 Other, net — 480 (460 ) — 20 Net cash used in investing activities — (176,428 ) (2,211 ) — (178,639 ) Cash flows from financing activities: Increase (decrease) in bank overdrafts — 16,290 (2,286 ) — 14,004 Borrowings under credit facilities — 534,400 — — 534,400 Payments on credit facilities — (534,400 ) — — (534,400 ) Dividends paid — (17,854 ) — — (17,854 ) Proceeds from the issuance of common stock — 4,076 — — 4,076 Repurchases of common stock — (6,498 ) — — (6,498 ) Other, net 1 (8,600 ) — (1 ) (8,600 ) Net cash provided by (used in) financing activities 1 (12,586 ) (2,286 ) (1 ) (14,872 ) Effect of exchange rate changes on cash — — 4,465 — 4,465 Net increase in cash and cash equivalents 1 404,077 7,682 (1 ) 411,759 Cash and cash equivalents , beginning of period 22 78,543 56,635 (22 ) 135,178 Cash and cash equivalents , end of period $ 23 $ 482,620 $ 64,317 $ (23 ) $ 546,937 |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Data (unaudited) [Abstract] | |
Quarterly Financial Information [Table Text Block] | The following table summarizes quarterly financial data for 2019 and 2018 : 2019 First Second Third Fourth (in thousands, except per share data) (16 weeks) (12 weeks) (12 weeks) (12 weeks) Net sales $ 2,952,036 $ 2,332,246 $ 2,312,106 $ 2,112,614 Gross profit $ 1,304,612 $ 1,009,438 $ 1,011,926 $ 928,769 Net income $ 142,500 $ 124,820 $ 123,669 $ 95,907 Basic earnings per common share $ 1.99 $ 1.74 $ 1.76 $ 1.39 Diluted earnings per common share $ 1.98 $ 1.73 $ 1.75 $ 1.38 2018 First Second Third Fourth (in thousands, except per share data) (16 weeks) (12 weeks) (12 weeks) (12 weeks) Net sales $ 2,873,848 $ 2,326,652 $ 2,274,982 $ 2,105,072 Gross profit $ 1,272,284 $ 1,011,559 $ 1,006,927 $ 928,643 Net income $ 136,727 $ 117,836 $ 115,843 $ 53,441 Basic earnings per common share $ 1.85 $ 1.59 $ 1.57 $ 0.74 Diluted earnings per common share $ 1.84 $ 1.59 $ 1.56 $ 0.74 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Allowance for doubtful accounts receivable | Allowance for doubtful accounts receivable Balance at Beginning of Period Charges to Expenses Deductions (1) Balance at End of Period December 30, 2017 $ 29,164 $ 20,110 $ (31,055 ) $ 18,219 December 29, 2018 $ 18,219 $ 18,445 $ (18,622 ) $ 18,042 December 28, 2019 $ 18,042 $ 11,949 $ (15,742 ) $ 14,249 (1) Accounts written off during the period. These amounts did not impact our statement of operations for any year presented. |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($)store | |
Stores [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Number of Stores | 4,877 |
Branches [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Number of Stores | 160 |
Independently-owned Carquest store locations [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Number of Stores | 1,253 |
Cost of Sales [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ | $ 13 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 30, 2018 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Operating Lease, Liability | $ 2,495,141 | $ 2,400,000 | ||
Restructuring Reserve | $ 42,300 | |||
Operating Lease, Right-of-Use Asset | 2,365,325 | 0 | 2,400,000 | |
Deferred vendor incentives recorded as a reduction of inventory | $ 173,800 | $ 164,100 | ||
Percentage of sales by product group | 100.00% | 100.00% | 100.00% | |
Advertising expense | $ 117,300 | $ 120,900 | $ 102,800 | |
Vendor Promotional Funds | 45,700 | 26,900 | 33,300 | |
Losses from foreign currency transactions included in other income, net | $ 1,700 | $ 5,000 | $ 4,000 | |
Deferred Tax Impact Upon Adoption of ASU 2016-02 and Impairment ROU Assets | $ 7,900 | |||
Parts and Batteries [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of sales by product group | 67.00% | 66.00% | 65.00% | |
Accessories and Chemicals [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of sales by product group | 21.00% | 20.00% | 20.00% | |
engine maintenance [Domain] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of sales by product group | 11.00% | 13.00% | 14.00% | |
Other [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of sales by product group | 1.00% | 1.00% | 1.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Inventory, Net [Abstract] | |||
Percentage of LIFO Inventory | 89.00% | 89.00% | |
Inventory, LIFO Reserve, Effect on Income, Net | $ (101,300) | $ 39,800 | $ (2,700) |
Purchasing and Warehousing costs included in inventory | 476,300 | 435,200 | |
LIFO Method Related Items [Abstract] | |||
Inventories at first in, first out (“FIFO”) | 4,290,565 | 4,119,617 | |
Adjustments to state inventories at LIFO | 141,603 | 242,930 | |
Inventories at LIFO | $ 4,432,168 | $ 4,362,547 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill | ||
Goodwill, Beginning Balance | $ 990,237 | |
Goodwill, Foreign Currency Translation Gain / Loss | 2,000 | $ (4,100) |
Goodwill, Ending Balance | 992,240 | 990,237 |
Finite-Lived Intangible Assets, Accumulated Amortization | (216,538) | (198,654) |
Finite-lived intangible assets expected amortization expense | ||
2020 | 30,206 | |
2021 | 30,104 | |
2022 | 30,008 | |
2023 | 27,099 | |
2024 | 27,291 | |
Thereafter | 27,362 | |
Finite-Lived Intangible Assets, net | $ 172,070 | $ 215,517 |
Intangible Assets Other Than Go
Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 23, 2019 | |
Acquired Intangible Assets [Line Items] | ||||
DieHard Indefinite-Lived Brand Purchase | $ 200,000 | |||
DieHard Capitalizable Transaction Costs | $ 1,500 | |||
Amortization Expense | $ 31,700 | $ 40,700 | $ 47,400 | |
Gross Carrying Amount | 388,608 | 414,171 | ||
Accumulated Amortization | (216,538) | (198,654) | ||
Net | 172,070 | 215,517 | ||
Brands, trademark and tradenames | 537,686 | 335,076 | ||
Intangible Assets, Gross (Excluding Goodwill) | 926,294 | 749,247 | ||
Intangible Assets, Net (Excluding Goodwill) | 709,756 | 550,593 | ||
Customer Relationships [Member] | ||||
Acquired Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 350,352 | 349,157 | ||
Accumulated Amortization | (179,220) | (148,889) | ||
Net | 171,132 | 200,268 | ||
Favorable leases [Member] | ||||
Acquired Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 0 | 27,139 | ||
Accumulated Amortization | 0 | (12,791) | ||
Net | 0 | 14,348 | ||
Non-Compete and Other [Member] | ||||
Acquired Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 38,256 | 37,875 | ||
Accumulated Amortization | (37,318) | (36,974) | ||
Net | 938 | 901 | ||
Trademarks [Member] | ||||
Acquired Intangible Assets [Line Items] | ||||
Accumulated Amortization | $ 0 | $ 0 |
Receivables, net (Details)
Receivables, net (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 703,718 | $ 643,014 |
Less: Allowance for doubtful accounts | (14,249) | (18,042) |
Receivables, net | 689,469 | 624,972 |
Trade [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 422,403 | 397,909 |
Vendor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 249,009 | 228,024 |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 32,306 | $ 17,081 |
Long-term Debt and Fair Value_3
Long-term Debt and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Apr. 20, 2019 | Dec. 28, 2019 | Feb. 28, 2019 | Dec. 29, 2018 | Dec. 03, 2013 | Jan. 11, 2012 | Apr. 26, 2010 |
Debt Instrument [Line Items] | ||||||||
Debt, Long-term and Short-term, Combined Amount | $ 747,320 | $ 1,045,930 | ||||||
Long-term Debt, Current Maturities | 0 | (210) | ||||||
Long-term Debt, Excluding Current Maturities | 747,320 | 1,045,720 | ||||||
Fair value of long-term debt | 795,000 | 1,074,000 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,000,000 | |||||||
Debt Instrument, Redemption, Description | We may redeem some or all of the Notes at any time or from time to time, at the redemption price described in the Indenture. In addition, in the event of a Change of Control Triggering Event (as defined in the Indenture for the Notes), we will be required to offer to repurchase the Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase date. The Notes are currently fully and unconditionally guaranteed, jointly and severally, on an unsubordinated and unsecured basis by each of the subsidiary guarantors. We will be permitted to release guarantees without the consent of holders of the Notes under the circumstances described in the Indenture: (i) upon the release of the guarantee of our other debt that resulted in the affected subsidiary becoming a guarantor of this debt; (ii) upon the sale or other disposition of all or substantially all of the stock or assets of the subsidiary guarantor; or (iii) upon our exercise of our legal or covenant defeasance option. | |||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 26,400 | |||||||
Guarantor Obligations, Collateral Held | $ 50,300 | |||||||
Indenture provisions for events of default | The Indenture contains customary provisions for events of default including for: (i) failure to pay principal or interest when due and payable; (ii) failure to comply with covenants or agreements in the Indenture or the Notes and failure to cure or obtain a waiver of such default upon notice; (iii) a default under any debt for money borrowed by us or any of our subsidiaries that results in acceleration of the maturity of such debt, or failure to pay any such debt within any applicable grace period after final stated maturity, in an aggregate amount greater than $25.0 million without such debt having been discharged or acceleration having been rescinded or annulled within 10 days after receipt by us of notice of the default by the Trustee or holders of not less than 25% in aggregate principal amount of the Notes then outstanding; and (iv) events of bankruptcy, insolvency or reorganization affecting us and certain of its subsidiaries. In the case of an event of default, the principal amount of the Notes plus accrued and unpaid interest may be accelerated. The Indenture also contains covenants limiting the ability of us and our subsidiaries to incur debt secured by liens and to enter into sale and lease-back transactions. | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||
2020 | $ 0 | |||||||
2021 | 0 | |||||||
2022 | 300,000 | |||||||
2023 | 450,000 | |||||||
2024 | 0 | |||||||
Thereafter | 0 | |||||||
Long-term Debt, Gross | 750,000 | |||||||
5.75% senior unsecured notes (2020 Notes) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 300,000 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 802 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |||||||
Charges Relating to Debt Issuance Costs from 2020 Senior Unsecured Notes | $ 700 | |||||||
Debt Issuance, Percentage Of Principal | 99.587% | |||||||
Charges Relating to Make-Whole Provision of 2020 Senior Unsecured Notes Agreement | $ 10,100 | |||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||
Debt Instrument, Repurchased Face Amount | $ 300,000 | |||||||
4.50% senior unsecured notes (2022 Notes) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 300,000 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 559 | 833 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||||
Debt Issuance, Percentage Of Principal | 99.968% | |||||||
4.50% senior unsecured notes (2023 Notes) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 450,000 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 2,121 | 2,645 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||||
Debt Issuance, Percentage Of Principal | 99.69% | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Long-term and Short-term, Combined Amount | 0 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 | |||||||
Line of credit facility increase increment limit | $ 250,000 | |||||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.10% | |||||||
Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.10% | |||||||
Revolving Credit Facility [Member] | letters of credit sublimit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of Credit Outstanding, Amount | 0 | |||||||
Senior Notes [Member] | 5.75% senior unsecured notes (2020 Notes) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Long-term and Short-term, Combined Amount | 0 | 299,198 | ||||||
Senior Notes [Member] | 4.50% senior unsecured notes (2022 Notes) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Long-term and Short-term, Combined Amount | 299,441 | 299,167 | ||||||
Senior Notes [Member] | 4.50% senior unsecured notes (2023 Notes) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Long-term and Short-term, Combined Amount | 447,879 | 447,355 | ||||||
Notes Payable, Other Payables [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Long-term and Short-term, Combined Amount | 0 | 210 | ||||||
Bilateral Letter of Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of Credit Outstanding, Amount | $ 111,600 | $ 100,500 | ||||||
2013 Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.15% | |||||||
Minimum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.91% | |||||||
Minimum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||||||
Maximum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Maximum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 3,471,062 | $ 3,287,487 | |
Accumulated Depreciation | (2,037,849) | (1,918,502) | |
Property and Equipment, Net | 1,433,213 | 1,368,985 | |
Depreciation | 206,700 | 201,600 | $ 206,900 |
Capitalized software development costs | 29,100 | 13,000 | 11,200 |
Impairment of Long-Lived Assets to be Disposed of | $ 2,300 | 13,400 | $ 13,300 |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 0 - 10 years | ||
Property and Equipment, Gross | $ 457,960 | 453,511 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 30 - 40 years | ||
Property and Equipment, Gross | $ 498,871 | 488,977 | |
Building and Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 2 - 15 years | ||
Property and Equipment, Gross | $ 535,082 | 504,518 | |
Furniture, Fixtures and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 2 - 20 years | ||
Property and Equipment, Gross | $ 1,850,485 | 1,740,960 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 2 - 10 years | ||
Property and Equipment, Gross | $ 14,612 | 14,636 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 114,052 | $ 84,885 | |
Minimum [Member] | Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | P3Y | ||
Maximum [Member] | Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | P10Y |
Leases and Other Commitments Le
Leases and Other Commitments Leases and Other Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Total operating lease liabilities | $ 2,495,141 | $ 2,400,000 | |
Less: Current portion of operating lease liabilities | 477,982 | ||
Noncurrent operating lease liabilities | 2,017,159 | $ 0 | |
Operating lease cost | 522,928 | ||
Variable lease cost | 155,892 | ||
Total lease cost | 678,820 | ||
2020 | 572,426 | ||
2021 | 482,494 | ||
2022 | 390,110 | ||
2023 | 350,636 | ||
2024 | 272,683 | ||
Thereafter | 832,501 | ||
Total lease payments | 2,900,850 | ||
Less: Imputed Interest | (405,709) | ||
Lessee Option to Extend Reasonably Certain | 139,500 | ||
Operating lease legally binding minimum payments for lease that have not yet commenced | $ 147,700 | ||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 2 months 4 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.00% | ||
Operating cash flows from operating leases | $ 517,945 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 398,510 | ||
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 | ||
Unrecorded Unconditional Purchase Obligation | $ 66,200 | ||
Facilities [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Facilities [Member] | Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 5 years | ||
Facilities [Member] | Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 10 years | ||
Equipment [Member] | Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 3 years | ||
Equipment [Member] | Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 5 years |
Leases and Other Commitments Ne
Leases and Other Commitments Net Rent Expense Prior to Adoption of ASU 2016-02 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Net Rent Expense Prior to Adoption of ASU 2016-02 [Line Items] | ||
operating leases, rent expense gross | $ 560,941 | $ 540,634 |
Less: Sub-lease income | (7,141) | (7,144) |
Operating Leases, Rent Expense, Net | 553,800 | 533,490 |
Minimum facility rentals [Member] | ||
Net Rent Expense Prior to Adoption of ASU 2016-02 [Line Items] | ||
Minimum facility rentals | 484,291 | 483,178 |
Equipment rentals [Member] | ||
Net Rent Expense Prior to Adoption of ASU 2016-02 [Line Items] | ||
Minimum facility rentals | 23,635 | 24,786 |
Vehicles rentals [Member] | ||
Net Rent Expense Prior to Adoption of ASU 2016-02 [Line Items] | ||
Minimum facility rentals | $ 53,015 | $ 32,670 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | |
Payables and Accruals [Abstract] | |||||
Payroll and related benefits | $ 109,371 | $ 129,909 | |||
Taxes payable | 96,834 | 119,203 | |||
Self-insurance reserves | 64,845 | 70,962 | |||
Warranty reserves | $ 45,280 | $ 45,280 | $ 47,243 | 36,820 | 45,280 |
Capital expenditures | 26,201 | 15,365 | |||
Transportation | 21,679 | 28,872 | |||
Other | 180,113 | 213,550 | |||
Total accrued expenses | $ 535,863 | $ 623,141 | |||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||||
Warranty reserve, beginning of period | 45,280 | 49,024 | 47,243 | ||
Additions to reserve | 34,117 | 43,200 | 50,895 | ||
Reduction and utilization of reserve | (42,577) | (46,944) | (49,114) | ||
Warranty reserve, end of period | $ 36,820 | $ 45,280 | $ 49,024 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 28, 2019 | Dec. 29, 2018 | Nov. 08, 2019 | Aug. 07, 2019 | Aug. 08, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Treasury Stock, Shares, Acquired as Part of Plan | 3,400 | 1,700 | |||
Payments for Repurchase of Common Stock, Acquired as Part of Plan | $ 487.4 | $ 272.8 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 890.8 | ||||
Acquired, Average Cost Per Share, Acquired as Part of Plan | $ 144.23 | $ 163.17 | |||
August 2019 Share Repurchase Program [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 400 | ||||
August 2018 Share Repurchase Program [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 600 | ||||
Repurchase Amount Remaining at Time of Replacement | $ 49.1 | ||||
November 2019 Share Repurchase Program Addition [Member] [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 700 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Jul. 13, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Apr. 20, 2019 | Apr. 21, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 115 | ||||||||||
Net income | $ 95,907 | $ 123,669 | $ 124,820 | $ 53,441 | $ 115,843 | $ 117,836 | $ 142,500 | $ 136,727 | $ 486,896 | $ 423,847 | $ 475,505 |
Basic weighted average common shares | 70,869 | 73,728 | 73,846 | ||||||||
Dilutive impact of share-based awards | 296 | 263 | 264 | ||||||||
Diluted weighted average common shares | 71,165 | 73,991 | 74,110 | ||||||||
Basic earnings per common share, Net income applicable to common stockholders | $ 1.39 | $ 1.76 | $ 1.74 | $ 0.74 | $ 1.57 | $ 1.59 | $ 1.99 | $ 1.85 | $ 6.87 | $ 5.75 | $ 6.44 |
Diluted earnings per common share, Net income applicable to common stockholders | $ 1.38 | $ 1.75 | $ 1.73 | $ 0.74 | $ 1.56 | $ 1.59 | $ 1.98 | $ 1.84 | $ 6.84 | $ 5.73 | $ 6.42 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Taxes [Line Items] | |||
Income tax benefit from Tax Cuts and Jobs Act of 2017 remeasurement of deferred tax asset liability | $ 155,100 | ||
Income tax expense from Tax Cuts And Jobs Act Of 2017 transition tax for accumulated foreign earnings | 11,300 | ||
Provision for income taxes related to the Act, remeasurement period benefit | $ 5,700 | ||
Federal: | |||
Current Federal Tax Expense (Benefit) | $ 84,490 | 72,598 | 146,855 |
Deferred Federal Income Tax Expense (Benefit) | 13,618 | 14,745 | (146,741) |
Federal Income Tax Expense (Benefit), Continuing Operations | 98,108 | 87,343 | 114 |
State: | |||
Current State and Local Tax Expense (Benefit) | 26,924 | 19,571 | 31,352 |
Deferred State and Local Income Tax Expense (Benefit) | 8,117 | 3,439 | (3,437) |
State and Local Income Tax Expense (Benefit), Continuing Operations | 35,041 | 23,010 | 27,915 |
Foreign: | |||
Current Foreign Tax Expense (Benefit) | 16,288 | 23,292 | 17,810 |
Deferred Foreign Income Tax Expense (Benefit) | 1,413 | (2,228) | (1,085) |
Foreign Income Tax Expense (Benefit), Continuing Operations | 17,701 | 21,064 | 16,725 |
Current Income Tax Expense (Benefit) | 127,702 | 115,461 | 196,017 |
Deferred income tax benefit | 23,148 | 15,956 | (151,263) |
Income Tax Expense (Benefit) | 150,850 | 131,417 | 44,754 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income before provision for income taxes at statutory U.S. federal income tax rate (21% for 2019 and 2018 and 35% for 2017) | 133,927 | 116,605 | 182,091 |
State income taxes, net of federal income tax benefit | 27,682 | 18,178 | 18,145 |
Impact of the Act | 0 | (5,655) | (143,756) |
Other, net | (10,759) | 2,289 | (11,726) |
Income Tax Expense (Benefit) | 150,850 | 131,417 | 44,754 |
Deferred income tax assets: | |||
Accrued expenses not currently deductible for tax | 38,064 | 40,066 | |
Share-based compensation | 9,540 | 7,780 | |
Accrued medical and workers compensation | 22,202 | 34,430 | |
Net operating loss carryforwards | 5,565 | 7,423 | |
Deferred Tax Assets Operating Lease Liabilities | 627,707 | 21,091 | |
Other, net | 8,430 | 8,390 | |
Total deferred income tax assets before valuation allowances | 711,508 | 119,180 | |
Less: Valuation allowance | (3,592) | (8,694) | |
Total deferred income tax assets | 707,916 | 110,486 | |
Deferred income tax liabilities: | |||
Property and equipment | (116,277) | (92,505) | |
Inventories | (183,428) | (196,772) | |
Intangible assets | (136,078) | (139,562) | |
Deferred Tax Liabilities Operating Lease Assets | (606,146) | 0 | |
Total deferred income tax liabilities | (1,041,929) | (428,839) | |
Net deferred income tax liabilities | (334,013) | (318,353) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of period | 30,824 | 22,665 | 13,946 |
Increases related to prior period tax positions | 4,243 | 5,435 | 8,077 |
Decreases related to prior period tax positions | (2,277) | (1,356) | (2,331) |
Increases related to current period tax positions | 3,741 | 5,425 | 5,644 |
Settlements | (331) | (14) | (1,496) |
Expiration of statute of limitations | (6,438) | (1,331) | (1,175) |
Unrecognized tax benefits, end of period | 29,762 | 30,824 | 22,665 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense/(Gain) | 1,600 | (900) | $ 1,700 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 4,900 | 3,300 | |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 100 | 100 | |
Undistributed Earnings of Foreign Subsidiaries | 24,500 | ||
State and Local Jurisdiction [Member] | |||
Deferred income tax liabilities: | |||
Operating Loss Carryforwards | $ 159,400 | $ 195,000 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Postemployment Benefits [Abstract] | |||
Company contributions to defined contribution benefit plan | $ 17.9 | $ 15 | $ 14.2 |
Deferred compensation plan liability | $ 15 | $ 12.2 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Available for Grant | 4,900 | ||
Share-based compensation expense | $ 37,438 | $ 27,760 | $ 35,267 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Deferred income tax benefit | 9,400 | $ 6,800 | $ 15,300 |
Unrecognized compensation expense | $ 59,800 | ||
Weighted average period unrecognized compensation expense expected to be recognized | 1 year 6 months | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning of period | 410 | ||
Granted | 279 | ||
Granted, Weighted Average Grant Date Fair Value | $ 157.31 | $ 130.12 | $ 131.01 |
Change in Units Based on Performance | 0 | ||
Change in Units Based on Performance, Weighted Average Exercise Price | $ 0 | ||
Vested | (164) | ||
Vested, Weighted Average Exercise Price | $ 133.97 | ||
Forfeited | (65) | ||
Forfeited, Weighted Average Grant Date Fair Value | $ 140.11 | ||
Nonvested, end of period | 460 | 410 | |
Nonvested, Weighted Average Grant Date Fair Value | $ 145.95 | $ 132.49 | |
Total grant date fair value of vested | $ 21,955 | $ 17,527 | $ 13,578 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 7,800 | $ 5,400 | $ 13,600 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning of period | 125 | ||
Granted | 39 | ||
Granted, Weighted Average Grant Date Fair Value | $ 159.80 | $ 119.08 | $ 146.42 |
Change in Units Based on Performance | (6) | ||
Change in Units Based on Performance, Weighted Average Exercise Price | $ 120.72 | ||
Vested | (17) | ||
Vested, Weighted Average Exercise Price | $ 160.94 | ||
Forfeited | (14) | ||
Forfeited, Weighted Average Grant Date Fair Value | $ 128.10 | ||
Nonvested, end of period | 127 | 125 | |
Nonvested, Weighted Average Grant Date Fair Value | $ 132.03 | $ 126.19 | |
Maximum potential payout of outstanding awards for Equity Instruments Other than Options | 289 | ||
Total grant date fair value of vested | $ 2,666 | $ 9,224 | $ 7,823 |
Market Based Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate (1) | 2.50% | 2.40% | 1.60% |
Expected dividend yield | 0.20% | 0.20% | 0.20% |
Expected stock price volatility (2) | 33.50% | 34.00% | 26.20% |
Liquidity discount for post-vest restrictions | 10.50% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning of period | 53 | ||
Granted | 28 | ||
Granted, Weighted Average Grant Date Fair Value | $ 165.70 | $ 131.48 | $ 139.33 |
Change in Units Based on Performance | 0 | ||
Change in Units Based on Performance, Weighted Average Exercise Price | $ 0 | ||
Vested | 0 | ||
Vested, Weighted Average Exercise Price | $ 0 | ||
Forfeited | (8) | ||
Forfeited, Weighted Average Grant Date Fair Value | $ 142.01 | ||
Nonvested, end of period | 73 | 53 | |
Nonvested, Weighted Average Grant Date Fair Value | $ 145.08 | $ 133.78 | |
Maximum potential payout of outstanding awards for Equity Instruments Other than Options | 146 | ||
Total grant date fair value of vested | $ 0 | $ 0 | $ 0 |
Deferred Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1,900 | $ 1,900 | $ 1,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted | 12 | ||
Granted, Weighted Average Grant Date Fair Value | $ 156.47 | $ 127.14 | $ 125.34 |
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Available for Grant | 1,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, Beginning of Period | $ (44,193) | ||
Activity | 9,624 | $ (19,239) | $ 14,747 |
Balance, End of Period | (34,569) | (44,193) | |
Unrealized Gain (Loss) on Postretirement Plan [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, Beginning of Period | 1,464 | 1,758 | 1,952 |
Activity | (142) | (294) | (194) |
Balance, End of Period | 1,322 | 1,464 | 1,758 |
Foreign Currency Translation [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, Beginning of Period | (45,657) | (26,712) | (41,653) |
Activity | 9,766 | (18,945) | 14,941 |
Balance, End of Period | (35,891) | (45,657) | (26,712) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, Beginning of Period | (44,193) | (24,954) | (39,701) |
Activity | 9,624 | (19,239) | 14,747 |
Balance, End of Period | $ (34,569) | $ (44,193) | $ (24,954) |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Oct. 07, 2017 | Dec. 31, 2016 |
Current assets: | ||||||
Cash and cash equivalents | $ 418,665 | $ 896,527 | $ 546,937 | $ 896,527 | $ 135,178 | |
Receivables, net | 689,469 | 624,972 | ||||
Inventories | 4,432,168 | 4,362,547 | ||||
Other current assets | 155,241 | 198,408 | ||||
Total current assets | 5,695,543 | 6,082,454 | ||||
Property and equipment, net of accumulated depreciation | 1,433,213 | 1,368,985 | ||||
Operating lease right-of-use assets | 2,365,325 | $ 2,400,000 | 0 | |||
Goodwill | 992,240 | 990,237 | ||||
Intangible assets, net | 709,756 | 550,593 | ||||
Other assets | 52,448 | 48,379 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Intercompany note receivable | 0 | 0 | ||||
Due from intercompany, net | 0 | 0 | ||||
Assets, Total | 11,248,525 | 9,040,648 | ||||
Current liabilities: | ||||||
Accounts payable | 3,421,987 | 3,172,790 | ||||
Accrued expenses | 535,863 | 623,141 | ||||
Other current liabilities | 519,852 | 90,019 | ||||
Total current liabilities | 4,477,702 | 3,885,950 | ||||
Long-term debt | 747,320 | 1,045,720 | ||||
Noncurrent operating lease liabilities | 2,017,159 | 0 | ||||
Deferred income taxes | 334,013 | 318,353 | ||||
Other long-term liabilities | 123,250 | 239,812 | ||||
Intercompany note payable | 0 | 0 | ||||
Due to intercompany, net | 0 | 0 | ||||
Commitments and Contingencies | ||||||
Stockholders' equity | 3,549,081 | 3,550,813 | 3,415,196 | 2,916,192 | ||
Liabilities and Stockholders' Equity, Total | 11,248,525 | 9,040,648 | ||||
Parent Company [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 23 | 0 | 22 | |
Receivables, net | 1,529 | 0 | ||||
Inventories | 0 | 0 | ||||
Other current assets | 12,710 | 3,103 | ||||
Total current assets | 14,239 | 3,103 | ||||
Property and equipment, net of accumulated depreciation | 54 | 77 | ||||
Operating lease right-of-use assets | 0 | |||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Other assets | 2,358 | 2,408 | ||||
Investment in subsidiaries | 4,445,209 | 3,945,862 | ||||
Intercompany note receivable | 749,354 | 1,048,993 | ||||
Due from intercompany, net | 0 | 0 | ||||
Assets, Total | 5,211,214 | 5,000,443 | ||||
Current liabilities: | ||||||
Accounts payable | 0 | 0 | ||||
Accrued expenses | 0 | 3,444 | ||||
Other current liabilities | 0 | 0 | ||||
Total current liabilities | 0 | 3,444 | ||||
Long-term debt | 747,320 | 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 | 914,813 | 400,466 | ||||
Commitments and Contingencies | ||||||
Stockholders' equity | 3,549,081 | 3,550,813 | ||||
Liabilities and Stockholders' Equity, Total | 5,211,214 | 5,000,443 | ||||
Guarantor Subsidiaries [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 285,100 | 785,605 | 482,620 | 785,605 | 78,543 | |
Receivables, net | 646,686 | 590,269 | ||||
Inventories | 4,233,562 | 4,182,973 | ||||
Other current assets | 150,316 | 191,318 | ||||
Total current assets | 5,315,664 | 5,750,165 | ||||
Property and equipment, net of accumulated depreciation | 1,423,920 | 1,359,980 | ||||
Operating lease right-of-use assets | 2,325,170 | |||||
Goodwill | 943,364 | 943,364 | ||||
Intangible assets, net | 670,386 | 510,586 | ||||
Other assets | 38,311 | 47,815 | ||||
Investment in subsidiaries | 550,910 | 474,772 | ||||
Intercompany note receivable | 0 | 0 | ||||
Due from intercompany, net | 571,981 | 102,886 | ||||
Assets, Total | 11,839,706 | 9,189,568 | ||||
Current liabilities: | ||||||
Accounts payable | 3,231,927 | 2,954,632 | ||||
Accrued expenses | 523,518 | 603,460 | ||||
Other current liabilities | 508,811 | 91,994 | ||||
Total current liabilities | 4,264,256 | 3,650,086 | ||||
Long-term debt | 0 | 0 | ||||
Noncurrent operating lease liabilities | 1,986,039 | |||||
Deferred income taxes | 320,822 | 306,127 | ||||
Other long-term liabilities | 74,026 | 238,500 | ||||
Intercompany note payable | 749,354 | 1,048,993 | ||||
Due to intercompany, net | 0 | 0 | ||||
Commitments and Contingencies | ||||||
Stockholders' equity | 4,445,209 | 3,945,862 | ||||
Liabilities and Stockholders' Equity, Total | 11,839,706 | 9,189,568 | ||||
Non-Guarantor Subsidiaries [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 133,565 | 110,922 | 64,317 | 110,922 | 56,635 | |
Receivables, net | 41,254 | 34,703 | ||||
Inventories | 198,606 | 179,574 | ||||
Other current assets | 3,442 | 3,987 | ||||
Total current assets | 376,867 | 329,186 | ||||
Property and equipment, net of accumulated depreciation | 9,239 | 8,928 | ||||
Operating lease right-of-use assets | 40,155 | |||||
Goodwill | 48,876 | 46,873 | ||||
Intangible assets, net | 39,370 | 40,007 | ||||
Other assets | 14,137 | 564 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Intercompany note receivable | 0 | 0 | ||||
Due from intercompany, net | 342,832 | 297,580 | ||||
Assets, Total | 871,476 | 723,138 | ||||
Current liabilities: | ||||||
Accounts payable | 190,060 | 218,158 | ||||
Accrued expenses | 23,572 | 16,237 | ||||
Other current liabilities | 11,041 | (1,975) | ||||
Total current liabilities | 224,673 | 232,420 | ||||
Long-term debt | 0 | 0 | ||||
Noncurrent operating lease liabilities | 31,120 | |||||
Deferred income taxes | 15,549 | 14,634 | ||||
Other long-term liabilities | 49,224 | 1,312 | ||||
Intercompany note payable | 0 | 0 | ||||
Due to intercompany, net | 0 | 0 | ||||
Commitments and Contingencies | ||||||
Stockholders' equity | 550,910 | 474,772 | ||||
Liabilities and Stockholders' Equity, Total | 871,476 | 723,138 | ||||
Consolidation, Eliminations [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | $ (23) | $ 0 | $ (22) | |
Receivables, net | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Other current assets | (11,227) | 0 | ||||
Total current assets | (11,227) | 0 | ||||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||||
Operating lease right-of-use assets | 0 | |||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Other assets | (2,358) | (2,408) | ||||
Investment in subsidiaries | (4,996,119) | (4,420,634) | ||||
Intercompany note receivable | (749,354) | (1,048,993) | ||||
Due from intercompany, net | (914,813) | (400,466) | ||||
Assets, Total | (6,673,871) | (5,872,501) | ||||
Current liabilities: | ||||||
Accounts payable | 0 | 0 | ||||
Accrued expenses | (11,227) | 0 | ||||
Other current liabilities | 0 | 0 | ||||
Total current liabilities | (11,227) | 0 | ||||
Long-term debt | 0 | 0 | ||||
Noncurrent operating lease liabilities | 0 | |||||
Deferred income taxes | (2,358) | (2,408) | ||||
Other long-term liabilities | 0 | 0 | ||||
Intercompany note payable | (749,354) | (1,048,993) | ||||
Due to intercompany, net | (914,813) | (400,466) | ||||
Commitments and Contingencies | ||||||
Stockholders' equity | (4,996,119) | (4,420,634) | ||||
Liabilities and Stockholders' Equity, Total | $ (6,673,871) | $ (5,872,501) |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Jul. 13, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Apr. 20, 2019 | Apr. 21, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | $ 2,112,614 | $ 2,312,106 | $ 2,332,246 | $ 2,105,072 | $ 2,274,982 | $ 2,326,652 | $ 2,952,036 | $ 2,873,848 | $ 9,709,003 | $ 9,580,554 | $ 9,373,784 |
Cost of sales, including purchasing and warehousing costs | 5,454,257 | 5,361,141 | 5,288,735 | ||||||||
Gross Profit | 928,769 | 1,011,926 | 1,009,438 | 928,643 | 1,006,927 | 1,011,559 | 1,304,612 | 1,272,284 | 4,254,746 | 4,219,413 | 4,085,049 |
Selling, general and administrative expenses | 3,577,566 | 3,615,138 | 3,514,837 | ||||||||
Operating (loss) income | 677,180 | 604,275 | 570,212 | ||||||||
Other, net: | |||||||||||
Interest expense | (39,898) | (56,588) | (58,801) | ||||||||
Other income (expense), net | 464 | 7,577 | 8,848 | ||||||||
Total other, net | (39,434) | (49,011) | (49,953) | ||||||||
Income before provision for income taxes | 637,746 | 555,264 | 520,259 | ||||||||
Provision for income taxes | 150,850 | 131,417 | 44,754 | ||||||||
(Loss) income before equity in earnings of subsidiaries | 486,896 | 423,847 | 475,505 | ||||||||
Equity in earnings of subsidiary | 0 | 0 | 0 | ||||||||
Net income | $ 95,907 | $ 123,669 | $ 124,820 | $ 53,441 | $ 115,843 | $ 117,836 | $ 142,500 | $ 136,727 | 486,896 | 423,847 | 475,505 |
Parent Company [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Cost of sales, including purchasing and warehousing costs | 0 | 0 | 0 | ||||||||
Gross Profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 28,216 | 20,235 | 30,478 | ||||||||
Operating (loss) income | (28,216) | (20,235) | (30,478) | ||||||||
Other, net: | |||||||||||
Interest expense | (37,366) | (52,253) | (52,305) | ||||||||
Other income (expense), net | 66,842 | 73,174 | 83,840 | ||||||||
Total other, net | 29,476 | 20,921 | 31,535 | ||||||||
Income before provision for income taxes | 1,260 | 686 | 1,057 | ||||||||
Provision for income taxes | 2,429 | 2,519 | 641 | ||||||||
(Loss) income before equity in earnings of subsidiaries | (1,169) | (1,833) | 416 | ||||||||
Equity in earnings of subsidiary | 488,065 | 425,680 | 475,089 | ||||||||
Net income | 486,896 | 423,847 | 475,505 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 9,342,240 | 9,225,772 | 9,034,790 | ||||||||
Cost of sales, including purchasing and warehousing costs | 5,252,418 | 5,169,076 | 5,107,063 | ||||||||
Gross Profit | 4,089,822 | 4,056,696 | 3,927,727 | ||||||||
Selling, general and administrative expenses | 3,503,529 | 3,547,645 | 3,453,406 | ||||||||
Operating (loss) income | 586,293 | 509,051 | 474,321 | ||||||||
Other, net: | |||||||||||
Interest expense | (2,310) | (4,336) | (6,496) | ||||||||
Other income (expense), net | (16,274) | (6,961) | (17,729) | ||||||||
Total other, net | (18,584) | (11,297) | (24,225) | ||||||||
Income before provision for income taxes | 567,709 | 497,754 | 450,096 | ||||||||
Provision for income taxes | 131,885 | 117,015 | 32,623 | ||||||||
(Loss) income before equity in earnings of subsidiaries | 435,824 | 380,739 | 417,473 | ||||||||
Equity in earnings of subsidiary | 52,241 | 44,941 | 57,616 | ||||||||
Net income | 488,065 | 425,680 | 475,089 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 568,522 | 519,883 | 550,450 | ||||||||
Cost of sales, including purchasing and warehousing costs | 336,110 | 357,166 | 393,128 | ||||||||
Gross Profit | 232,412 | 162,717 | 157,322 | ||||||||
Selling, general and administrative expenses | 160,717 | 98,412 | 82,155 | ||||||||
Operating (loss) income | 71,695 | 64,305 | 75,167 | ||||||||
Other, net: | |||||||||||
Interest expense | (222) | 1 | 0 | ||||||||
Other income (expense), net | (2,695) | (7,482) | (6,061) | ||||||||
Total other, net | (2,917) | (7,481) | (6,061) | ||||||||
Income before provision for income taxes | 68,778 | 56,824 | 69,106 | ||||||||
Provision for income taxes | 16,537 | 11,883 | 11,490 | ||||||||
(Loss) income before equity in earnings of subsidiaries | 52,241 | 44,941 | 57,616 | ||||||||
Equity in earnings of subsidiary | 0 | 0 | 0 | ||||||||
Net income | 52,241 | 44,941 | 57,616 | ||||||||
Consolidation, Eliminations [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | (201,759) | (165,101) | (211,456) | ||||||||
Cost of sales, including purchasing and warehousing costs | (134,271) | (165,101) | (211,456) | ||||||||
Gross Profit | (67,488) | 0 | 0 | ||||||||
Selling, general and administrative expenses | (114,896) | (51,154) | (51,202) | ||||||||
Operating (loss) income | 47,408 | 51,154 | 51,202 | ||||||||
Other, net: | |||||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Other income (expense), net | (47,409) | (51,154) | (51,202) | ||||||||
Total other, net | (47,409) | (51,154) | (51,202) | ||||||||
Income before provision for income taxes | (1) | 0 | 0 | ||||||||
Provision for income taxes | (1) | 0 | 0 | ||||||||
(Loss) income before equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiary | (540,306) | (470,621) | (532,705) | ||||||||
Net income | $ (540,306) | $ (470,621) | $ (532,705) |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements Condensed Consolidating Comprehensive Income Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Jul. 13, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Apr. 20, 2019 | Apr. 21, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | $ 95,907 | $ 123,669 | $ 124,820 | $ 53,441 | $ 115,843 | $ 117,836 | $ 142,500 | $ 136,727 | $ 486,896 | $ 423,847 | $ 475,505 |
Other comprehensive income (loss): | |||||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | (142) | (294) | (194) | ||||||||
Currency translation adjustments | 9,766 | (18,945) | 14,941 | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss) | 9,624 | (19,239) | 14,747 | ||||||||
Comprehensive Income (Loss) | 496,520 | 404,608 | 490,252 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | 486,896 | 423,847 | 475,505 | ||||||||
Other comprehensive income (loss): | |||||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | 0 | 0 | 0 | ||||||||
Currency translation adjustments | 0 | 0 | 0 | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | 9,624 | (19,239) | 14,747 | ||||||||
Total other comprehensive income (loss) | 9,624 | (19,239) | 14,747 | ||||||||
Comprehensive Income (Loss) | 496,520 | 404,608 | 490,252 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | 488,065 | 425,680 | 475,089 | ||||||||
Other comprehensive income (loss): | |||||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | (142) | (294) | (194) | ||||||||
Currency translation adjustments | 0 | 0 | 0 | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | 9,766 | (18,945) | 14,941 | ||||||||
Total other comprehensive income (loss) | 9,624 | (19,239) | 14,747 | ||||||||
Comprehensive Income (Loss) | 497,689 | 406,441 | 489,836 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | 52,241 | 44,941 | 57,616 | ||||||||
Other comprehensive income (loss): | |||||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | 0 | 0 | 0 | ||||||||
Currency translation adjustments | 9,766 | (18,945) | 14,941 | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss) | 9,766 | (18,945) | 14,941 | ||||||||
Comprehensive Income (Loss) | 62,007 | 25,996 | 72,557 | ||||||||
Consolidation, Eliminations [Member] | |||||||||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | (540,306) | (470,621) | (532,705) | ||||||||
Other comprehensive income (loss): | |||||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | 0 | 0 | 0 | ||||||||
Currency translation adjustments | 0 | 0 | 0 | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | (19,390) | 38,184 | (29,688) | ||||||||
Total other comprehensive income (loss) | (19,390) | 38,184 | (29,688) | ||||||||
Comprehensive Income (Loss) | $ (559,696) | $ (432,437) | $ (562,393) |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by Operating Activities | $ 866,909 | $ 811,028 | $ 600,805 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (270,129) | (193,715) | (189,758) |
Purchase of an indefinite-lived intangible asset | (201,519) | 0 | 0 |
Proceeds from sales of property and equipment | 8,709 | 1,888 | 11,099 |
Other, net | 0 | 0 | 20 |
Net cash used in investing activities | (462,939) | (191,827) | (178,639) |
Cash flows from financing activities: | |||
(Decrease) increase in bank overdrafts | (59,339) | 32,014 | 14,004 |
Redemption of senior unsecured note | (310,047) | 0 | 0 |
Borrowings under credit facilities | 0 | 0 | 534,400 |
Payments on credit facilities | 0 | 0 | (534,400) |
Dividends paid | (17,185) | (17,819) | (17,854) |
Proceeds from the issuance of common stock | 3,334 | 3,200 | 4,076 |
Repurchases of common stock | (498,435) | (281,354) | (6,498) |
Other, net | (481) | 44 | (8,600) |
Net Cash Provided by (Used in) Financing Activities | (882,153) | (263,915) | (14,872) |
Effect of exchange rate changes on cash | 321 | (5,696) | 4,465 |
Net (decrease) increase in cash and cash equivalents | (477,862) | 349,590 | 411,759 |
Cash and cash equivalents, beginning of period | 896,527 | 546,937 | 135,178 |
Cash and cash equivalents, end of period | 418,665 | 896,527 | 546,937 |
Parent Company [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by Operating Activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Purchases of property and equipment | 0 | 0 | 0 |
Purchase of an indefinite-lived intangible asset | 0 | ||
Proceeds from sales of property and equipment | 0 | 0 | 0 |
Other, net | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
(Decrease) increase in bank overdrafts | 0 | 0 | 0 |
Redemption of senior unsecured note | 0 | ||
Borrowings under credit facilities | 0 | 0 | |
Payments on credit facilities | 0 | 0 | |
Dividends paid | 0 | 0 | 0 |
Proceeds from the issuance of common stock | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Other, net | 0 | (23) | 1 |
Net Cash Provided by (Used in) Financing Activities | 0 | (23) | 1 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 0 | (23) | 1 |
Cash and cash equivalents, beginning of period | 0 | 23 | 22 |
Cash and cash equivalents, end of period | 0 | 0 | 23 |
Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by Operating Activities | 845,364 | 753,948 | 593,091 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (268,342) | (192,156) | (187,993) |
Purchase of an indefinite-lived intangible asset | (201,519) | ||
Proceeds from sales of property and equipment | 8,708 | 1,842 | 11,085 |
Other, net | 0 | 480 | |
Net cash used in investing activities | (461,153) | (190,314) | (176,428) |
Cash flows from financing activities: | |||
(Decrease) increase in bank overdrafts | (61,902) | 35,280 | 16,290 |
Redemption of senior unsecured note | (310,047) | ||
Borrowings under credit facilities | 0 | 534,400 | |
Payments on credit facilities | 0 | (534,400) | |
Dividends paid | (17,185) | (17,819) | (17,854) |
Proceeds from the issuance of common stock | 3,334 | 3,200 | 4,076 |
Repurchases of common stock | (498,435) | (281,354) | (6,498) |
Other, net | (481) | 44 | (8,600) |
Net Cash Provided by (Used in) Financing Activities | (884,716) | (260,649) | (12,586) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | (500,505) | 302,985 | 404,077 |
Cash and cash equivalents, beginning of period | 785,605 | 482,620 | 78,543 |
Cash and cash equivalents, end of period | 285,100 | 785,605 | 482,620 |
Non-Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by Operating Activities | 21,545 | 57,080 | 7,714 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (1,787) | (1,559) | (1,765) |
Purchase of an indefinite-lived intangible asset | 0 | ||
Proceeds from sales of property and equipment | 1 | 46 | 14 |
Other, net | 0 | (460) | |
Net cash used in investing activities | (1,786) | (1,513) | (2,211) |
Cash flows from financing activities: | |||
(Decrease) increase in bank overdrafts | 2,563 | (3,266) | (2,286) |
Redemption of senior unsecured note | 0 | ||
Borrowings under credit facilities | 0 | 0 | |
Payments on credit facilities | 0 | 0 | |
Dividends paid | 0 | 0 | 0 |
Proceeds from the issuance of common stock | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | 2,563 | (3,266) | (2,286) |
Effect of exchange rate changes on cash | 321 | (5,696) | 4,465 |
Net (decrease) increase in cash and cash equivalents | 22,643 | 46,605 | 7,682 |
Cash and cash equivalents, beginning of period | 110,922 | 64,317 | 56,635 |
Cash and cash equivalents, end of period | 133,565 | 110,922 | 64,317 |
Consolidation, Eliminations [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by Operating Activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Purchases of property and equipment | 0 | 0 | 0 |
Purchase of an indefinite-lived intangible asset | 0 | ||
Proceeds from sales of property and equipment | 0 | 0 | 0 |
Other, net | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
(Decrease) increase in bank overdrafts | 0 | 0 | 0 |
Redemption of senior unsecured note | 0 | ||
Borrowings under credit facilities | 0 | 0 | |
Payments on credit facilities | 0 | 0 | |
Dividends paid | 0 | 0 | 0 |
Proceeds from the issuance of common stock | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Other, net | 0 | 23 | (1) |
Net Cash Provided by (Used in) Financing Activities | 0 | 23 | (1) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 0 | 23 | (1) |
Cash and cash equivalents, beginning of period | 0 | (23) | (22) |
Cash and cash equivalents, end of period | $ 0 | $ 0 | $ (23) |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Jul. 13, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Apr. 20, 2019 | Apr. 21, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Data (unaudited) [Abstract] | |||||||||||
Net sales | $ 2,112,614 | $ 2,312,106 | $ 2,332,246 | $ 2,105,072 | $ 2,274,982 | $ 2,326,652 | $ 2,952,036 | $ 2,873,848 | $ 9,709,003 | $ 9,580,554 | $ 9,373,784 |
Gross Profit | 928,769 | 1,011,926 | 1,009,438 | 928,643 | 1,006,927 | 1,011,559 | 1,304,612 | 1,272,284 | 4,254,746 | 4,219,413 | 4,085,049 |
Net Income (Loss) Attributable to Parent | $ 95,907 | $ 123,669 | $ 124,820 | $ 53,441 | $ 115,843 | $ 117,836 | $ 142,500 | $ 136,727 | $ 486,896 | $ 423,847 | $ 475,505 |
Basic earnings per common share | $ 1.39 | $ 1.76 | $ 1.74 | $ 0.74 | $ 1.57 | $ 1.59 | $ 1.99 | $ 1.85 | $ 6.87 | $ 5.75 | $ 6.44 |
Diluted earnings per common share | $ 1.38 | $ 1.75 | $ 1.73 | $ 0.74 | $ 1.56 | $ 1.59 | $ 1.98 | $ 1.84 | $ 6.84 | $ 5.73 | $ 6.42 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for Doubtful Accounts Receivable, Current, Beginning of Period | $ 18,042 | ||
Allowance for Doubtful Accounts Receivable, Current, End of Period | 14,249 | $ 18,042 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for Doubtful Accounts Receivable, Current, Beginning of Period | 18,042 | 18,219 | $ 29,164 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 11,949 | 18,445 | 20,110 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (15,742) | (18,622) | (31,055) |
Allowance for Doubtful Accounts Receivable, Current, End of Period | $ 14,249 | $ 18,042 | $ 18,219 |