Document and Entity Information
Document and Entity Information Document Document - shares | 6 Months Ended | |
Jul. 11, 2020 | Aug. 13, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 11, 2020 | |
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, $0.0001 par value | |
Trading Symbol | AAP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 69,138,763 | |
Entity Central Index Key | 0001158449 | |
Current Fiscal Year End Date | --01-02 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 11, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,141,502 | $ 418,665 |
Receivables, net | 742,346 | 689,469 |
Inventories | 4,358,489 | 4,432,168 |
Other current assets | 153,188 | 155,241 |
Total current assets | 6,395,525 | 5,695,543 |
Property and equipment, net of accumulated depreciation of $2,096,439 and $2,037,849 | 1,436,485 | 1,433,213 |
Operating lease right-of-use assets | 2,367,527 | 2,365,325 |
Goodwill | 990,396 | 992,240 |
Intangible assets, net | 692,482 | 709,756 |
Other assets | 48,250 | 52,448 |
Assets, Total | 11,930,665 | 11,248,525 |
Current liabilities: | ||
Accounts payable | 3,310,073 | 3,421,987 |
Accrued expenses | 659,642 | 535,863 |
Other current liabilities | 467,844 | 519,852 |
Total current liabilities | 4,437,559 | 4,477,702 |
Long-term debt | 1,240,340 | 747,320 |
Noncurrent operating lease liabilities | 2,041,400 | 2,017,159 |
Deferred income taxes | 338,086 | 334,013 |
Other long-term liabilities | 146,761 | 123,250 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, nonvoting, $0.0001 par value | 0 | 0 |
Common stock, voting, $0.0001 par value | 8 | 8 |
Additional paid-in capital | 760,535 | 735,183 |
Treasury stock, at cost | (961,592) | (924,389) |
Accumulated other comprehensive loss | (43,939) | (34,569) |
Retained earnings | 3,971,507 | 3,772,848 |
Total stockholders’ equity | 3,726,519 | 3,549,081 |
Liabilities and Stockholders' Equity, Total | $ 11,930,665 | $ 11,248,525 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 11, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Property and equipment, net of accumulated depreciation of $2,081,478 and $2,037,849 | $ 2,096,439 | $ 2,037,849 |
Preferred stock, nonvoting, $0.0001 par value | $ 0.0001 | $ 0.0001 |
Common stock, voting, $0.0001 par value | $ 0.0001 | $ 0.0001 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,501,380 | $ 2,332,246 | $ 5,199,262 | $ 5,284,283 |
Cost of sales, including purchasing and warehousing costs | 1,404,666 | 1,322,808 | 2,929,815 | 2,970,233 |
Gross profit | 1,096,714 | 1,009,438 | 2,269,447 | 2,314,050 |
Selling, general and administrative expenses | 833,869 | 838,666 | 1,928,177 | 1,935,338 |
Operating income | 262,845 | 170,772 | 341,270 | 378,712 |
Other, net: | ||||
Interest expense | (13,422) | (8,675) | (25,665) | (23,619) |
Other income (expense), net | 3,117 | 4,113 | (2,872) | 1,874 |
Total other, net | (10,305) | (4,562) | (28,537) | (21,745) |
Income before provision for income taxes | 252,540 | 166,210 | 312,733 | 356,967 |
Provision for income taxes | 62,580 | 41,390 | 79,185 | 89,647 |
Net income | $ 189,960 | $ 124,820 | $ 233,548 | $ 267,320 |
Basic earnings per common share | $ 2.75 | $ 1.74 | $ 3.38 | $ 3.73 |
Weighted average common shares outstanding | 69,118 | 71,738 | 69,154 | 71,767 |
Diluted earnings per common share | $ 2.74 | $ 1.73 | $ 3.37 | $ 3.71 |
Weighted average common shares outstanding | 69,294 | 72,008 | 69,350 | 72,063 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
Net income | $ 189,960 | $ 124,820 | $ 233,548 | $ 267,320 |
Other comprehensive income (loss): | ||||
Changes in net unrecognized other postretirement benefit (costs) income, net of tax of $26, $25, $3 and $8 | (73) | (69) | (7) | 26 |
Currency translation adjustments | 7,669 | 6,626 | (9,363) | 10,686 |
Total other comprehensive income (loss) | 7,596 | 6,557 | (9,370) | 10,712 |
Comprehensive income | $ 197,556 | $ 131,377 | $ 224,178 | $ 278,032 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) [Abstract] | ||||
Changes in net unrecognized other postretirement benefit (costs) income, net of tax of $26, $25, $3 and $8 | $ 26 | $ 25 | $ 3 | $ 8 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDES' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at Dec. 29, 2018 | $ 3,550,813 | $ 8 | $ 694,797 | $ (425,954) | $ (44,193) | $ 3,326,155 |
Balance (in shares) at Dec. 29, 2018 | 72,460 | |||||
Net income | 267,320 | 267,320 | ||||
Cumulative effect of accounting change from adoption of ASU 2016-02, net of tax | (23,165) | (23,165) | ||||
Total other comprehensive income (loss) | 10,712 | 10,712 | ||||
Restricted stock units and deferred stock units vested | 0 | $ 145 | ||||
Share-based compensation | 19,425 | 19,425 | ||||
Stock issued under employee stock purchase plan | 1,648 | 1,648 | ||||
Stock issued under employee stock purchase plan (in shares) | 11 | |||||
Repurchases of common stock (in shares) | (921) | |||||
Repurchases of common stock | (146,638) | (146,638) | ||||
Cash dividends declared | (8,690) | (8,690) | ||||
Stock Issued During Period, Shares, Other | 2 | |||||
Other | (123) | (123) | ||||
Balance at Jul. 13, 2019 | 3,671,302 | $ 8 | 715,747 | (572,592) | (33,481) | 3,561,620 |
Balance (in shares) at Jul. 13, 2019 | 71,697 | |||||
Balance at Apr. 20, 2019 | 3,547,223 | $ 8 | 706,360 | (560,245) | (40,038) | 3,441,138 |
Balance (in shares) at Apr. 20, 2019 | 71,737 | |||||
Net income | 124,820 | 124,820 | ||||
Total other comprehensive income (loss) | 6,557 | 6,557 | ||||
Restricted stock units and deferred stock units vested | 0 | $ 34 | ||||
Share-based compensation | 8,441 | 8,441 | ||||
Stock issued under employee stock purchase plan | 970 | 970 | ||||
Stock issued under employee stock purchase plan (in shares) | 6 | |||||
Repurchases of common stock (in shares) | (81) | |||||
Repurchases of common stock | (12,347) | (12,347) | ||||
Cash dividends declared | (4,338) | (4,338) | ||||
Stock Issued During Period, Shares, Other | 1 | |||||
Other | (24) | (24) | ||||
Balance at Jul. 13, 2019 | 3,671,302 | $ 8 | 715,747 | (572,592) | (33,481) | 3,561,620 |
Balance (in shares) at Jul. 13, 2019 | 71,697 | |||||
Balance at 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 | |||||
Net income | 233,548 | 233,548 | ||||
Total other comprehensive income (loss) | (9,370) | (9,370) | ||||
Restricted stock units and deferred stock units vested | 0 | $ 179 | ||||
Share-based compensation | 23,838 | 23,838 | ||||
Stock issued under employee stock purchase plan | 1,518 | 1,518 | ||||
Stock issued under employee stock purchase plan (in shares) | 15 | |||||
Repurchases of common stock (in shares) | (287) | |||||
Repurchases of common stock | (37,203) | (37,203) | ||||
Cash dividends declared | (34,889) | (34,889) | ||||
Stock Issued During Period, Shares, Other | 0 | |||||
Other | (4) | (4) | ||||
Balance at Jul. 11, 2020 | 3,726,519 | $ 8 | 760,535 | (961,592) | (43,939) | 3,971,507 |
Balance (in shares) at Jul. 11, 2020 | 69,139 | |||||
Balance at Apr. 18, 2020 | 3,537,029 | $ 8 | 749,723 | (960,150) | (51,535) | 3,798,983 |
Balance (in shares) at Apr. 18, 2020 | 69,101 | |||||
Net income | 189,960 | 189,960 | ||||
Total other comprehensive income (loss) | 7,596 | 7,596 | ||||
Restricted stock units and deferred stock units vested | 0 | $ 42 | ||||
Share-based compensation | 10,029 | 10,029 | ||||
Stock issued under employee stock purchase plan | 783 | 783 | ||||
Stock issued under employee stock purchase plan (in shares) | 6 | |||||
Repurchases of common stock (in shares) | (10) | |||||
Repurchases of common stock | (1,442) | (1,442) | ||||
Cash dividends declared | (17,436) | (17,436) | ||||
Balance at Jul. 11, 2020 | $ 3,726,519 | $ 8 | $ 760,535 | $ (961,592) | $ (43,939) | $ 3,971,507 |
Balance (in shares) at Jul. 11, 2020 | 69,139 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDES' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
Statement of Stockholders' Equity (Parenthetical) [Abstract] | ||||
Cash dividends declared (per common share) | $ 0.25 | $ 0.06 | $ 0.50 | $ 0.12 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 11, 2020 | Jul. 13, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 233,548 | $ 267,320 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 135,221 | 123,257 |
Share-based compensation | 23,838 | 19,425 |
Loss and impairment of long-lived assets | 1,801 | 2,297 |
Provision for deferred income taxes | 4,581 | 2,930 |
Other | 940 | 11,719 |
Net change in: | ||
Receivables, net | (55,055) | (85,941) |
Inventories | 67,894 | (5,685) |
Accounts payable | (108,860) | 142,002 |
Accrued expenses | 145,228 | (21,272) |
Other assets and liabilities, net | (926) | 36,109 |
Net cash provided by operating activities | 448,210 | 492,161 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (140,105) | (111,425) |
Purchase of an indefinite-lived intangible asset | (230) | 0 |
Proceeds from sales of property and equipment | 305 | 8,566 |
Net cash used in investing activities | (140,030) | (102,859) |
Cash flows from financing activities: | ||
Decrease in bank overdrafts | 0 | (70,265) |
Proceeds from borrowings on revolving credit facility | 500,000 | 0 |
Payments on credit facilities | (500,000) | 0 |
Proceeds from issuance of senior unsecured notes | 498,240 | 0 |
Redemption of senior unsecured notes | 0 | (310,047) |
Dividends paid | (39,017) | (13,028) |
Proceeds from the issuance of common stock | 1,518 | 1,648 |
Repurchases of common stock | (37,203) | (146,638) |
Other, net | (5,815) | (236) |
Net cash provided by (used in) financing activities | 417,723 | (538,566) |
Effect of exchange rate changes on cash | (3,066) | 456 |
Net increase (decrease) in cash and cash equivalents | 722,837 | (148,808) |
Cash and cash equivalents, beginning of period | 418,665 | 896,527 |
Cash and cash equivalents, end of period | 1,141,502 | 747,719 |
Non-cash transactions: | ||
Accrued purchases of property and equipment | $ 9,594 | $ 30,068 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jul. 11, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Advance Auto Parts, Inc. and subsidiaries is a leading automotive aftermarket parts provider in North America, serving both professional installers (“Professional”), and “do-it-yourself” (“DIY”), customers. The accompanying condensed consolidated financial statements have been prepared by us and include the accounts of Advance Auto Parts, Inc., 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 July 11, 2020, we operated a total of 4,819 stores and 167 branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. In addition, as of July 11, 2020, we served 1,262 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. In March 2020, the World Health Organization categorized the COVID-19 outbreak as a pandemic (“the pandemic”). As a majority of our stores and facilities have remained open, we have taken additional measures to help protect the health and safety of our Team Members and customers. Such measures, among others, include the implementation of other labor-related benefits for Team Members and increased sanitation practices across Advance. Since the assumptions underpinning our long-term revenue and cash flow growth rates, operating models and business strategies have not been significantly impacted, there was no material impairment of our various assets during the twelve and twenty-eight weeks ended July 11, 2020. The COVID-19 pandemic remains an evolving situation. If a period of decreased demand were to reoccur, it may lead to increased asset recovery and valuation risks in the future, such as impairment of goodwill, intangible assets and store and other assets. We will continue to assess the impact of the pandemic on our financial position. The extent to which the COVID-19 pandemic will impact our operations, liquidity, compliance with debt covenants or financial results in subsequent periods is uncertain, but such impact could be material. The accounting policies followed in the presentation of interim financial results are consistent with those followed on an annual basis. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), have been condensed or omitted based upon the Securities and Exchange Commission (“SEC”) interim reporting guidance. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for 2019 as filed with the SEC on February 18, 2020. The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the operating results to be expected for the full year. Our first quarter of the year contains sixteen weeks. Our second and third quarter of 2020 consist of twelve weeks, while our fourth quarter of 2020 contains thirteen weeks due to the 53-week fiscal year in 2020. |
Significant Acounting Policies
Significant Acounting Policies | 6 Months Ended |
Jul. 11, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Revenues The following table summarizes disaggregated revenue from contracts with customers by product group: Twelve Weeks Ended Twenty-Eight Weeks Ended July 11, 2020 July 13, 2019 July 11, 2020 July 13, 2019 Percentage of Net sales, by product group: Parts and batteries 66 % 67 % 66 % 66 % Accessories and chemicals 22 21 21 21 Engine maintenance 11 11 12 12 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % Recently Issued Accounting Pronouncements During the sixteen weeks ended April 18, 2020, we adopted Financial Accounting Standard Board (“FASB”) Accounting Standards Update 2016-13 (“ASU 2016-13”), Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which required us to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaced the existing incurred loss model and is applicable to the measurement of credit losses on financial assets, including trade receivables. The adoption of ASU 2016-13 did not have a material impact on our consolidated financial statements. During the twelve weeks ended July 11, 2020, we early adopted the SEC’s, Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities rules, which simplify the disclosure requirements related to the Company’s registered securities under Rule 3-10 of Regulation S-X. The final rule also allows for the simplified disclosure to be included within Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Inventories
Inventories | 6 Months Ended |
Jul. 11, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or market. We used the last in, first out (“LIFO”) method of accounting for approximately 88% and 89% of inventories as of July 11, 2020 and December 28, 2019. Under the LIFO method, our Cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs for inventories purchased in the twenty-eight weeks ended July 11, 2020 and prior years. We recorded an increase to Cost of sales of $3.1 million and $16.5 million for the twelve weeks ended July 11, 2020 and July 13, 2019, an increase to Cost of sales of $11.9 million and $42.9 million for the twenty-eights weeks ended July 11, 2020 and July 13, 2019 to state inventories at LIFO. An actual valuation of inventory under the LIFO method is performed by us at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on our estimates of expected inventory levels and costs at the end of the year. Inventory balances were as follows: (in thousands) July 11, 2020 December 28, 2019 Inventories at first in, first out (“FIFO”) $ 4,228,833 $ 4,290,565 Adjustments to state inventories at LIFO 129,656 141,603 Inventories at LIFO $ 4,358,489 $ 4,432,168 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jul. 11, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible AssetsOur definite-lived intangible assets include customer relationships and non-compete agreements. Amortization expense was $7.3 million for the twelve weeks ended July 11, 2020 and July 13, 2019 and $17.0 million for the twenty-eight weeks ended July 11, 2020 and July 13, 2019. |
Receivables, net
Receivables, net | 6 Months Ended |
Jul. 11, 2020 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net Receivables consist of the following: (in thousands) July 11, 2020 December 28, 2019 Trade $ 519,614 $ 422,403 Vendor 202,031 249,009 Other 31,177 32,306 Total receivables 752,822 703,718 Less: allowance for doubtful accounts (10,476) (14,249) Receivables, net $ 742,346 $ 689,469 |
Long-term Debt and Fair Value o
Long-term Debt and Fair Value of Financial Instruments | 6 Months Ended |
Jul. 11, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Fair Value of Financial Instruments | Long-term Debt and Fair Value of Financial Instruments Long-term debt consists of the following: (in thousands) July 11, 2020 December 28, 2019 4.50% Senior Unsecured Notes due January 15, 2022 $ 299,581 $ 299,441 4.50% Senior Unsecured Notes due December 1, 2023 448,095 447,879 3.90% Senior Unsecured Notes due April 15, 2030 492,664 — Total long-term debt $ 1,240,340 $ 747,320 Fair value of long-term debt $ 1,352,000 $ 795,000 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. 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. Senior Unsecured Notes Our 4.50% senior unsecured notes due January 15, 2022 (the “2022 Notes”) were issued in January 2012 at 99.97% of the principal amount of $300.0 million. 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 4.50% senior unsecured notes due December 1, 2023 (the “2023 Notes”) were issued in December 2013 at 99.69% of the principal amount of $450.0 million. 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. On April 16, 2020, we issued $500.0 million aggregate principal amount of senior unsecured notes (the “Original Notes”). The Original Notes were issued at 99.65% of the principal amount of $500.0 million, are due April 15, 2030 and bear interest at 3.90% per year payable semi-annually in arrears on April 15 and October 15 of each year (collectively with the 2023 Notes and 2022 Notes, referred to as our “senior unsecured notes”). During the twelve weeks ended July 11, 2020, the Company commenced an exchange offer to exchange the Original Notes in the aggregate principal amount of $500.0 million, which were not registered under the Securities Act of 1933, as amended (the “Securities Act”), for a like principal amount of 3.90% senior unsecured notes due 2030 (the “Exchange Notes”), which have been registered under the Securities Act. The Original Notes were substantially identical to the Exchange Notes, except that the Exchange Notes are registered under the Securities Act and are not subject to the transfer restrictions and certain registration rights agreement provisions applicable to the Original Notes. On July 28, 2020, the Original Notes were successfully exchanged for the Exchange Notes. On August 17, 2020, we notified the trustee of our intent to redeem the $300 million aggregate principal of our 2022 Notes. Bank Debt During the twelve weeks ended July 11, 2020, we elected to repay the $500.0 million outstanding under our revolving credit facility that we borrowed during the first quarter of 2020. As of July 11, 2020, we had no outstanding borrowings, $1.0 billion of borrowing availability and no letters of credit outstanding under the unsecured revolving credit facility (the “2017 Credit Agreement”). As of December 28, 2019, we had no outstanding borrowings, $1.0 billion of borrowing availability and no letters of credit outstanding under our unsecured revolving credit facility. As of July 11, 2020 and December 28, 2019, we had $100.1 million and $111.6 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. We were in compliance with financial covenants required by our debt arrangements as of July 11, 2020. Debt Guarantees We are a guarantor of loans made by banks to various independently owned Carquest-branded stores that are our customers totaling $54.3 million and $26.4 million as of July 11, 2020 and 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 $65.7 million and $50.3 million as of July 11, 2020 and December 28, 2019. We believe that the likelihood of performance under these guarantees is remote. |
Leases
Leases | 6 Months Ended |
Jul. 11, 2020 | |
Leases [Abstract] | |
Leases | Leases Substantially all of our leases are for facilities and vehicles. The initial term for facilities are typically 5 years to 10 years, with renewal options at 5 year intervals, with the exercise of lease renewal options at our sole discretion. Our vehicle and equipment leases are typically 3 years to 5 years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease liabilities consist of the following: (in thousands) July 11, 2020 December 28, 2019 Total operating lease liabilities $ 2,472,467 $ 2,495,141 Less: Current portion of operating lease liabilities (431,067) (477,982) Noncurrent operating lease liabilities $ 2,041,400 $ 2,017,159 The current portion of operating lease liabilities is included in Other current liabilities in the accompanying condensed consolidated balance sheets. Total lease cost is included in Cost of sales and selling, general and administrative expenses (“SG&A”) in the accompanying condensed consolidated statements of operations and is recorded net of immaterial sublease income. Total lease cost is comprised of the following: Twelve Weeks Ended Twenty-Eight Weeks Ended (in thousands) July 11, 2020 July 13, 2019 July 11, 2020 July 13, 2019 Operating lease cost $ 119,707 $ 124,765 $ 281,512 $ 284,811 Variable lease cost 30,856 32,856 74,392 82,546 Total lease cost $ 150,563 $ 157,621 $ 355,904 $ 367,357 The future maturity of lease liabilities are as follows: (in thousands) July 11, 2020 Remainder of 2020 $ 262,725 2021 503,068 2022 424,431 2023 387,012 2024 308,440 Thereafter 973,223 Total lease payments 2,858,899 Less: Imputed interest (386,432) Total operating lease liabilities $ 2,472,467 As of July 11, 2020, our operating lease payments include $86.2 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $56.9 million of legally binding minimum lease payments for leases signed, but not yet commenced. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are 7.1 years and 3.9% as of July 11, 2020. We calculated the weighted-average discount rates using incremental borrowing rates, which equal the rates of interest that we would pay to borrow funds on a fully collateralized basis over a similar term. Other information relating to our lease liabilities is as follows: Twenty-Eight Weeks Ended (in thousands) July 11, 2020 July 13, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 305,079 $ 278,323 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 219,954 $ 201,856 |
Warranty Liabilities
Warranty Liabilities | 6 Months Ended |
Jul. 11, 2020 | |
Product Warranties Disclosures [Abstract] | |
Warranty Liabilities | Warranty Liabilities The following table presents changes in our warranty reserves: Twenty-Eight Weeks Ended Fifty-Two Weeks Ended (in thousands) July 11, 2020 December 28, 2019 Warranty reserve, beginning of period $ 36,820 $ 45,280 Additions to warranty reserves 9,341 34,117 Reduction and utilization of reserve (20,445) (42,577) Warranty reserve, end of period $ 25,716 $ 36,820 |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jul. 11, 2020 | |
Stock Repurchases: [Abstract] | |
Share Repurchase Program | Share Repurchase Program On November 8, 2019, our Board of Directors authorized a $700.0 million share repurchase program. This new authorization was in addition to the $400.0 million share repurchase program that was authorized by our Board of Directors in August 2019. Our share repurchase program permits the repurchase of our common stock on the open market and in privately negotiated transactions from time to time. During the twelve weeks ended July 11, 2020, we purchased no shares of our common stock under the share repurchase program. During the twelve weeks ended July 13, 2019, we purchased 0.1 million shares of our common stock under the share repurchase program at an aggregate cost of $10.9 million, or an average price of $151.58 per share. During the twenty-eight weeks ended July 11, 2020 and July 13, 2019, we repurchased 0.2 million and 0.9 million shares of our common stock under our share repurchase program. The shares repurchased in connection with our share repurchase program during the twenty-eight weeks ended July 11, 2020 and July 13, 2019 were at an aggregate cost of $29.0 million and $138.1 million, or an average price of $128.36 and $158.98 per share. We had $861.7 million remaining under our share repurchase program as of July 11, 2020. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jul. 11, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The computation of basic and diluted earnings per share are as follows: Twelve Weeks Ended Twenty-Eight Weeks Ended (in thousands, except per share data) July 11, 2020 July 13, 2019 July 11, 2020 July 13, 2019 Numerator Net income applicable to common shares $ 189,960 $ 124,820 $ 233,548 $ 267,320 Denominator Basic weighted average common shares 69,118 71,738 69,154 71,767 Dilutive impact of share-based awards 176 270 196 296 Diluted weighted average common shares (1) 69,294 72,008 69,350 72,063 Basic earnings per common share $ 2.75 $ 1.74 $ 3.38 $ 3.73 Diluted earnings per common share $ 2.74 $ 1.73 $ 3.37 $ 3.71 (1) For the twelve and twenty-eight weeks ended July 11, 2020, 159 thousand and 326 thousand restricted stock units (“RSUs”) were excluded from the diluted calculation as their inclusion would have been anti-dilutive. For the twelve and twenty-eight weeks ended July 13, 2019, these anti-dilutive RSUs were insignificant. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 11, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the twenty-eight weeks ended July 11, 2020, we granted 284 thousand time-based RSUs, 74 thousand performance-based RSUs and 37 thousand market-based RSUs. The general terms of the time-based, performance-based and market-based RSUs are similar to awards previously granted by us. The weighted average fair values of the time-based, performance-based and market-based RSUs granted during the twenty-eight weeks ended July 11, 2020 were $134.04, $130.03 and $145.04 per share. For time-based and performance-based RSUs, the fair value of each award was determined based on the market price of our stock on the date of grant adjusted for expected dividends during the vesting period, as applicable. The fair value of each market-based RSU was determined using a Monte Carlo simulation model. Total income tax benefit related to share-based compensation expense for the twelve and twenty-eight weeks ended July 11, 2020 was $2.5 million and $6.0 million Total income tax benefit related to share-based compensation expense for the twelve and twenty-eight weeks ended July 13, 2019 was $2.3 million and $5.0 million As of July 11, 2020, there was $84.6 million of unrecognized compensation expense related to all share-based awards that is expected to be recognized over a weighted average period of 1.7 years. |
Significant Acounting Policies
Significant Acounting Policies (Policies) | 6 Months Ended |
Jul. 11, 2020 | |
Accounting Policies [Abstract] | |
Revenues | Revenues The following table summarizes disaggregated revenue from contracts with customers by product group: Twelve Weeks Ended Twenty-Eight Weeks Ended July 11, 2020 July 13, 2019 July 11, 2020 July 13, 2019 Percentage of Net sales, by product group: Parts and batteries 66 % 67 % 66 % 66 % Accessories and chemicals 22 21 21 21 Engine maintenance 11 11 12 12 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements During the sixteen weeks ended April 18, 2020, we adopted Financial Accounting Standard Board (“FASB”) Accounting Standards Update 2016-13 (“ASU 2016-13”), Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which required us to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaced the existing incurred loss model and is applicable to the measurement of credit losses on financial assets, including trade receivables. The adoption of ASU 2016-13 did not have a material impact on our consolidated financial statements. During the twelve weeks ended July 11, 2020, we early adopted the SEC’s, Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities rules, which simplify the disclosure requirements related to the Company’s registered securities under Rule 3-10 of Regulation S-X. The final rule also allows for the simplified disclosure to be included within Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Inventories (Policies)
Inventories (Policies) | 6 Months Ended |
Jul. 11, 2020 | |
Accounting Policies [Abstract] | |
Inventory, Policy | Inventories are stated at the lower of cost or market. |
Long-term Debt and Fair Value_2
Long-term Debt and Fair Value of Financial Instruments (Policies) | 6 Months Ended |
Jul. 11, 2020 | |
Accounting Policies [Abstract] | |
Fair Value Measurement, Policy | For time-based and performance-based RSUs, the fair value of each award was determined based on the market price of our stock on the date of grant adjusted for expected dividends during the vesting period, as applicable. The fair value of each market-based RSU was determined using a Monte Carlo simulation model. |
Leases (Policies)
Leases (Policies) | 6 Months Ended |
Jul. 11, 2020 | |
Lessee, Leases [Abstract] | |
Lessee, 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.The current portion of operating lease liabilities is included in Other current liabilities in the accompanying condensed consolidated balance sheets.Total lease cost is included in Cost of sales and selling, general and administrative expenses (“SG&A”) in the accompanying condensed consolidated statements of operations and is recorded net of immaterial sublease income. |
Share-Based Compensation (Polic
Share-Based Compensation (Policies) | 6 Months Ended |
Jul. 11, 2020 | |
Accounting Policies [Abstract] | |
Fair Value Measurement, Policy | For time-based and performance-based RSUs, the fair value of each award was determined based on the market price of our stock on the date of grant adjusted for expected dividends during the vesting period, as applicable. The fair value of each market-based RSU was determined using a Monte Carlo simulation model. |
Significant Acounting Policie_2
Significant Acounting Policies (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
Accounting Policies [Abstract] | |
Revenue from External Customers by Products and Services | The following table summarizes disaggregated revenue from contracts with customers by product group: Twelve Weeks Ended Twenty-Eight Weeks Ended July 11, 2020 July 13, 2019 July 11, 2020 July 13, 2019 Percentage of Net sales, by product group: Parts and batteries 66 % 67 % 66 % 66 % Accessories and chemicals 22 21 21 21 Engine maintenance 11 11 12 12 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory balances were as follows: (in thousands) July 11, 2020 December 28, 2019 Inventories at first in, first out (“FIFO”) $ 4,228,833 $ 4,290,565 Adjustments to state inventories at LIFO 129,656 141,603 Inventories at LIFO $ 4,358,489 $ 4,432,168 |
Receivables, net (Tables)
Receivables, net (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Receivables consist of the following: (in thousands) July 11, 2020 December 28, 2019 Trade $ 519,614 $ 422,403 Vendor 202,031 249,009 Other 31,177 32,306 Total receivables 752,822 703,718 Less: allowance for doubtful accounts (10,476) (14,249) Receivables, net $ 742,346 $ 689,469 |
Long-term Debt and Fair Value_3
Long-term Debt and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consists of the following: (in thousands) July 11, 2020 December 28, 2019 4.50% Senior Unsecured Notes due January 15, 2022 $ 299,581 $ 299,441 4.50% Senior Unsecured Notes due December 1, 2023 448,095 447,879 3.90% Senior Unsecured Notes due April 15, 2030 492,664 — Total long-term debt $ 1,240,340 $ 747,320 Fair value of long-term debt $ 1,352,000 $ 795,000 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | Operating lease liabilities consist of the following: (in thousands) July 11, 2020 December 28, 2019 Total operating lease liabilities $ 2,472,467 $ 2,495,141 Less: Current portion of operating lease liabilities (431,067) (477,982) Noncurrent operating lease liabilities $ 2,041,400 $ 2,017,159 |
Lease, Cost | Total lease cost is comprised of the following: Twelve Weeks Ended Twenty-Eight Weeks Ended (in thousands) July 11, 2020 July 13, 2019 July 11, 2020 July 13, 2019 Operating lease cost $ 119,707 $ 124,765 $ 281,512 $ 284,811 Variable lease cost 30,856 32,856 74,392 82,546 Total lease cost $ 150,563 $ 157,621 $ 355,904 $ 367,357 |
Lessee, Operating Lease, Liability, Maturity | The future maturity of lease liabilities are as follows: (in thousands) July 11, 2020 Remainder of 2020 $ 262,725 2021 503,068 2022 424,431 2023 387,012 2024 308,440 Thereafter 973,223 Total lease payments 2,858,899 Less: Imputed interest (386,432) Total operating lease liabilities $ 2,472,467 |
Schedule of Other Information Relating to Lease Liabilities | Other information relating to our lease liabilities is as follows: Twenty-Eight Weeks Ended (in thousands) July 11, 2020 July 13, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 305,079 $ 278,323 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 219,954 $ 201,856 |
Warranty Liabilities (Tables)
Warranty Liabilities (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | The following table presents changes in our warranty reserves: Twenty-Eight Weeks Ended Fifty-Two Weeks Ended (in thousands) July 11, 2020 December 28, 2019 Warranty reserve, beginning of period $ 36,820 $ 45,280 Additions to warranty reserves 9,341 34,117 Reduction and utilization of reserve (20,445) (42,577) Warranty reserve, end of period $ 25,716 $ 36,820 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of basic and diluted earnings per share are as follows: Twelve Weeks Ended Twenty-Eight Weeks Ended (in thousands, except per share data) July 11, 2020 July 13, 2019 July 11, 2020 July 13, 2019 Numerator Net income applicable to common shares $ 189,960 $ 124,820 $ 233,548 $ 267,320 Denominator Basic weighted average common shares 69,118 71,738 69,154 71,767 Dilutive impact of share-based awards 176 270 196 296 Diluted weighted average common shares (1) 69,294 72,008 69,350 72,063 Basic earnings per common share $ 2.75 $ 1.74 $ 3.38 $ 3.73 Diluted earnings per common share $ 2.74 $ 1.73 $ 3.37 $ 3.71 (1) For the twelve and twenty-eight weeks ended July 11, 2020, 159 thousand and 326 thousand restricted stock units (“RSUs”) were excluded from the diluted calculation as their inclusion would have been anti-dilutive. For the twelve and twenty-eight weeks ended July 13, 2019, these anti-dilutive RSUs were insignificant. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) | Jul. 11, 2020store |
Stores [Member] | |
Basis of Presentation [Line Items] | |
Number of Stores | 4,819 |
Branches [Member] | |
Basis of Presentation [Line Items] | |
Number of Stores | 167 |
Independently owned Carquest store locations [Member] | |
Basis of Presentation [Line Items] | |
Number of Stores | 1,262 |
Significant Acounting Policie_3
Significant Acounting Policies (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 100.00% | 100.00% | 100.00% | 100.00% |
Parts and Batteries [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 66.00% | 67.00% | 66.00% | 66.00% |
Accessories and Chemicals [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 22.00% | 21.00% | 21.00% | 21.00% |
Engine Maintenance [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 11.00% | 11.00% | 12.00% | 12.00% |
Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 1.00% | 1.00% | 1.00% | 1.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | Dec. 28, 2019 | |
Inventory [Line Items] | |||||
Percentage of LIFO Inventory | 88.00% | 88.00% | 89.00% | ||
Inventory, LIFO Reserve, Effect on Income, Net | $ (3,100) | $ (16,500) | $ (11,900) | $ (42,900) | |
Inventories at first in, first out (“FIFO”) | 4,228,833 | 4,228,833 | $ 4,290,565 | ||
Adjustments to state inventories at LIFO | 129,656 | 129,656 | 141,603 | ||
Inventories at LIFO | $ 4,358,489 | $ 4,358,489 | $ 4,432,168 |
Intangible Asset (Details)
Intangible Asset (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization Expense | $ 7.3 | $ 7.3 | $ 17 | $ 17 |
Receivables, net (Details)
Receivables, net (Details) - USD ($) $ in Thousands | Jul. 11, 2020 | Dec. 28, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 752,822 | $ 703,718 |
Less: Allowance for doubtful accounts | (10,476) | (14,249) |
Receivables, net | 742,346 | 689,469 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 519,614 | 422,403 |
Accounts Receivable, Vendor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 202,031 | 249,009 |
Accounts Receivable, Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 31,177 | $ 32,306 |
Long-term Debt and Fair Value_4
Long-term Debt and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jul. 11, 2020 | Apr. 16, 2020 | Dec. 28, 2019 | Dec. 03, 2013 | Jan. 11, 2012 | |
Debt Instrument [Line Items] | |||||
Fair value of long-term debt | $ 1,352,000 | $ 795,000 | |||
Guarantor Obligations, Maximum Exposure | 54,300 | 26,400 | |||
Guarantor Obligation, Collateral Amount | 65,700 | 50,300 | |||
Long-term debt | 1,240,340 | 747,320 | |||
Line of Credit Facility, Increase (Decrease), Net | 500,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of Credit Outstanding, Amount | 0 | 0 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 1,000,000 | 1,000,000 | |||
Line of Credit, Current | 0 | 0 | |||
4.50% senior unsecured notes (2023 Notes) [Member] [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||
Debt Issuance, Percentage Of Principal | 99.69% | ||||
Debt Instrument, Face Amount | $ 450,000 | ||||
4.50% senior unsecured notes (2022 Notes) | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||
Debt Issuance, Percentage Of Principal | 99.97% | ||||
Debt Instrument, Face Amount | $ 300,000 | ||||
3.90% senior unsecured notes (2030 Notes) | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | ||||
Debt Issuance, Percentage Of Principal | 99.65% | ||||
Debt Instrument, Face Amount | $ 500,000 | ||||
Bilateral Letter of Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of Credit Outstanding, Amount | 100,100 | 111,600 | |||
Senior Notes [Member] | 4.50% senior unsecured notes (2023 Notes) [Member] [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 448,095 | 447,879 | |||
Senior Notes [Member] | 4.50% senior unsecured notes (2022 Notes) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 299,581 | 299,441 | |||
Senior Notes [Member] | 3.90% senior unsecured notes (2030 Notes) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 492,664 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | Dec. 28, 2019 | |
Lessee, Lease, Description [Line Items] | |||||
Total operating lease liabilities | $ 2,472,467 | $ 2,472,467 | $ 2,495,141 | ||
Less: Current portion of operating lease liabilities | 431,067 | 431,067 | 477,982 | ||
Noncurrent operating lease liabilities | 2,041,400 | 2,041,400 | $ 2,017,159 | ||
Operating lease cost | 119,707 | $ 124,765 | 281,512 | $ 284,811 | |
Variable lease cost | 30,856 | 32,856 | 74,392 | 82,546 | |
Total lease cost | 150,563 | $ 157,621 | 355,904 | 367,357 | |
Remainder of 2020 | 262,725 | 262,725 | |||
2021 | 503,068 | 503,068 | |||
2022 | 424,431 | 424,431 | |||
2023 | 387,012 | 387,012 | |||
2024 | 308,440 | 308,440 | |||
Thereafter | 973,223 | 973,223 | |||
Total lease payments | 2,858,899 | 2,858,899 | |||
Less: Imputed interest | (386,432) | (386,432) | |||
Lessee option to extend reasonably certain of being exercised | 86,200 | 86,200 | |||
Operating lease legally binding minimum payments for lease that have not yet commenced | $ 56,900 | $ 56,900 | |||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 1 month 6 days | 7 years 1 month 6 days | |||
Operating Lease, Weighted Average Discount Rate, Percent | 3.90% | 3.90% | |||
Cash paid for amounts included in the measurement of lease liabilities: | $ 305,079 | 278,323 | |||
Right-of-use assets obtained in exchange for lease obligations: | $ 219,954 | $ 201,856 | |||
Real Estate [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Renewal Term | 5 years | 5 years | |||
Real Estate [Member] | Minimum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 5 years | 5 years | |||
Real Estate [Member] | Maximum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 10 years | 10 years | |||
Equipment [Member] | Minimum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 3 years | 3 years | |||
Equipment [Member] | Maximum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 5 years | 5 years |
Warranty Liabilities (Details)
Warranty Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jul. 11, 2020 | Dec. 28, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty reserve, beginning of period | $ 36,820 | $ 45,280 |
Additions to warranty reserves | 9,341 | 34,117 |
Reduction and utilization of reserve | (20,445) | (42,577) |
Warranty reserve, end of period | $ 25,716 | $ 36,820 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | Nov. 08, 2019 | Aug. 07, 2019 | |
Class of Stock [Line Items] | ||||||
Treasury Stock, Shares, Acquired as Part of Authorized Plan | 0 | 100 | 200 | 900 | ||
Payments for Repurchase of Common Stock | $ 10.9 | $ 29 | $ 138.1 | |||
Acquired, Average Cost Per Share, Acquired as Part of Plan | $ 151.58 | $ 128.36 | $ 158.98 | |||
Share Repurchase Program, Remaining Authorized Repurchase Amount | $ 861.7 | $ 861.7 | ||||
August 2018 Share Repurchase Program [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 400 | |||||
August 2019 Share Repurchase Program [Member] | ||||||
Class of 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 | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income applicable to common shares | $ 189,960 | $ 124,820 | $ 233,548 | $ 267,320 |
Basic weighted average shares | 69,118 | 71,738 | 69,154 | 71,767 |
Dilutive impact of share-based awards | 176 | 270 | 196 | 296 |
Diluted weighted average shares | 69,294 | 72,008 | 69,350 | 72,063 |
Basic earnings per common share | $ 2.75 | $ 1.74 | $ 3.38 | $ 3.73 |
Diluted earnings per common share | $ 2.74 | $ 1.73 | $ 3.37 | $ 3.71 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 159 | 326 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation, Tax Benefit from Compensation Expense | $ 2.5 | $ 2.3 | $ 6 | $ 5 |
Share-based Compensation, Cost Not yet Recognized | $ 84.6 | $ 84.6 | ||
Share-based Compensation, Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days | |||
Performance-based RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in Period | 74 | |||
Weighted Average Grant Date Fair Value | $ 130.03 | |||
Market-based RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in Period | 37 | |||
Weighted Average Grant Date Fair Value | $ 145.04 | |||
Time-based RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in Period | 284 | |||
Weighted Average Grant Date Fair Value | $ 134.04 |