Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 09, 2021 | Nov. 12, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 9, 2021 | |
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, $0.0001 par value | |
Trading Symbol | AAP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 62,355,177 | |
Entity Central Index Key | 0001158449 | |
Current Fiscal Year End Date | --01-01 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 09, 2021 | Jan. 02, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 604,645 | $ 834,992 |
Receivables, net | 931,758 | 749,999 |
Inventories | 4,450,452 | 4,538,199 |
Other current assets | 174,406 | 146,811 |
Total current assets | 6,161,261 | 6,270,001 |
Property and equipment, net of accumulated depreciation of $2,349,872 and $2,189,165 | 1,483,246 | 1,462,602 |
Operating lease right-of-use assets | 2,514,375 | 2,379,987 |
Goodwill | 994,562 | 993,590 |
Intangible assets, net | 658,545 | 681,127 |
Other assets | 52,182 | 52,329 |
Total assets | 11,864,171 | 11,839,636 |
Current liabilities: | ||
Accounts payable | 3,750,835 | 3,640,639 |
Accrued expenses | 731,786 | 606,804 |
Other current liabilities | 472,608 | 496,472 |
Total current liabilities | 4,955,229 | 4,743,915 |
Long-term debt | 1,034,002 | 1,032,984 |
Noncurrent operating lease liabilities | 2,154,364 | 2,014,499 |
Deferred income taxes | 375,069 | 342,445 |
Other long-term liabilities | 148,972 | 146,281 |
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 | 835,033 | 783,709 |
Treasury stock, at cost | (2,203,584) | (1,394,080) |
Accumulated other comprehensive loss | (21,826) | (26,759) |
Retained earnings | 4,586,904 | 4,196,634 |
Total stockholders’ equity | 3,196,535 | 3,559,512 |
Liabilities and Stockholders' Equity, Total | $ 11,864,171 | $ 11,839,636 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Oct. 09, 2021 | Jan. 02, 2021 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 2,349,872 | $ 2,189,165 |
Preferred stock par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 09, 2021 | Oct. 03, 2020 | Oct. 09, 2021 | Oct. 03, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,621,229 | $ 2,541,928 | $ 8,601,014 | $ 7,741,190 |
Cost of sales, including purchasing and warehousing costs | 1,438,775 | 1,413,457 | 4,744,383 | 4,343,272 |
Gross profit | 1,182,454 | 1,128,471 | 3,856,631 | 3,397,918 |
Selling, general and administrative expenses | 953,256 | 871,660 | 3,130,376 | 2,799,837 |
Operating income | 229,198 | 256,811 | 726,255 | 598,081 |
Other, net: | ||||
Interest expense | (8,587) | (11,925) | (28,085) | (37,590) |
Loss on early redemptions of senior unsecured notes | 0 | (48,022) | 0 | (48,022) |
Other income (expense), net | 1,810 | 674 | 7,790 | (2,198) |
Total other, net | (6,777) | (59,273) | (20,295) | (87,810) |
Income before provision for income taxes | 222,421 | 197,538 | 705,960 | 510,271 |
Provision for income taxes | 52,608 | 50,062 | 171,521 | 129,247 |
Net income | $ 169,813 | $ 147,476 | $ 534,439 | $ 381,024 |
Basic earnings per common share (in dollars per share) | $ 2.70 | $ 2.14 | $ 8.28 | $ 5.51 |
Weighted-average common shares outstanding | 62,854 | 68,965 | 64,555 | 69,097 |
Diluted earnings per common share (in dollars per share) | $ 2.68 | $ 2.13 | $ 8.22 | $ 5.50 |
Weighted-average common shares outstanding | 63,348 | 69,267 | 65,008 | 69,325 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 09, 2021 | Oct. 03, 2020 | Oct. 09, 2021 | Oct. 03, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 169,813 | $ 147,476 | $ 534,439 | $ 381,024 |
Other comprehensive income (loss): | ||||
Changes in net unrecognized other postretirement costs, net of tax of $25, $26, $69 and $29 | (70) | (73) | (194) | (80) |
Currency translation adjustments | 1,527 | 5,298 | 5,127 | (4,065) |
Total other comprehensive income (loss) | 1,457 | 5,225 | 4,933 | (4,145) |
Comprehensive income | $ 171,270 | $ 152,701 | $ 539,372 | $ 376,879 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 09, 2021 | Oct. 03, 2020 | Oct. 09, 2021 | Oct. 03, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Changes in net unrecognized other postretirement costs, tax | $ 25 | $ 26 | $ 69 | $ 29 |
Condensed Consolidated Statem_4
Condensed 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 (in shares) at Dec. 28, 2019 | 69,232 | |||||
Balance at Dec. 28, 2019 | $ 3,549,081 | $ 8 | $ 735,183 | $ (924,389) | $ (34,569) | $ 3,772,848 |
Net income | 381,024 | 381,024 | ||||
Total other comprehensive income (loss) | (4,145) | (4,145) | ||||
Restricted stock and deferred stock units vested (in shares) | 206 | |||||
Restricted stock units and deferred stock units vested | 0 | |||||
Share-based compensation | 34,927 | 34,927 | ||||
Stock issued under employee stock purchase plan (in shares) | 20 | |||||
Stock issued under employee stock purchase plan | 2,211 | 2,211 | ||||
Repurchases of common stock (in shares) | (1,013) | |||||
Repurchases of common stock | (148,330) | (148,330) | ||||
Cash dividends declared | (52,096) | (52,096) | ||||
Other (in shares) | 0 | |||||
Other | (8) | (8) | ||||
Balance (in shares) at Oct. 03, 2020 | 68,445 | |||||
Balance at Oct. 03, 2020 | 3,762,664 | $ 8 | 772,313 | (1,072,719) | (38,714) | 4,101,776 |
Balance (in shares) at Jul. 11, 2020 | 69,139 | |||||
Balance at Jul. 11, 2020 | 3,726,519 | $ 8 | 760,535 | (961,592) | (43,939) | 3,971,507 |
Net income | 147,476 | 147,476 | ||||
Total other comprehensive income (loss) | 5,225 | 5,225 | ||||
Restricted stock and deferred stock units vested (in shares) | 27 | |||||
Restricted stock units and deferred stock units vested | 0 | |||||
Share-based compensation | 11,089 | 11,089 | ||||
Stock issued under employee stock purchase plan (in shares) | 5 | |||||
Stock issued under employee stock purchase plan | 693 | 693 | ||||
Repurchases of common stock (in shares) | (726) | |||||
Repurchases of common stock | (111,127) | (111,127) | ||||
Cash dividends declared | (17,207) | (17,207) | ||||
Other (in shares) | 0 | |||||
Other | (4) | (4) | ||||
Balance (in shares) at Oct. 03, 2020 | 68,445 | |||||
Balance at Oct. 03, 2020 | 3,762,664 | $ 8 | 772,313 | (1,072,719) | (38,714) | 4,101,776 |
Balance (in shares) at Jan. 02, 2021 | 66,361 | |||||
Balance at Jan. 02, 2021 | 3,559,512 | $ 8 | 783,709 | (1,394,080) | (26,759) | 4,196,634 |
Net income | 534,439 | 534,439 | ||||
Total other comprehensive income (loss) | 4,933 | 4,933 | ||||
Restricted stock and deferred stock units vested (in shares) | 277 | |||||
Restricted stock units and deferred stock units vested | 0 | |||||
Share-based compensation | 49,631 | 49,631 | ||||
Stock issued under employee stock purchase plan (in shares) | 23 | |||||
Stock issued under employee stock purchase plan | 1,737 | 1,737 | ||||
Repurchases of common stock (in shares) | (4,285) | |||||
Repurchases of common stock | (809,504) | (809,504) | ||||
Cash dividends declared | (144,169) | (144,169) | ||||
Other (in shares) | 37 | |||||
Other | (44) | (44) | ||||
Balance (in shares) at Oct. 09, 2021 | 62,413 | |||||
Balance at Oct. 09, 2021 | 3,196,535 | $ 8 | 835,033 | (2,203,584) | (21,826) | 4,586,904 |
Balance (in shares) at Jul. 17, 2021 | 63,499 | |||||
Balance at Jul. 17, 2021 | 3,301,565 | $ 8 | 818,126 | (1,973,371) | (23,283) | 4,480,085 |
Net income | 169,813 | 169,813 | ||||
Total other comprehensive income (loss) | 1,457 | 1,457 | ||||
Restricted stock and deferred stock units vested (in shares) | 29 | |||||
Restricted stock units and deferred stock units vested | 0 | |||||
Share-based compensation | 16,040 | 16,040 | ||||
Stock issued under employee stock purchase plan (in shares) | 4 | |||||
Stock issued under employee stock purchase plan | 868 | 868 | ||||
Repurchases of common stock (in shares) | (1,119) | |||||
Repurchases of common stock | (230,213) | (230,213) | ||||
Cash dividends declared | (62,994) | (62,994) | ||||
Other (in shares) | 0 | |||||
Other | (1) | (1) | ||||
Balance (in shares) at Oct. 09, 2021 | 62,413 | |||||
Balance at Oct. 09, 2021 | $ 3,196,535 | $ 8 | $ 835,033 | $ (2,203,584) | $ (21,826) | $ 4,586,904 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 09, 2021 | Oct. 03, 2020 | Oct. 09, 2021 | Oct. 03, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (per common share) | $ 1 | $ 0.25 | $ 2.25 | $ 0.75 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 09, 2021 | Oct. 03, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 534,439 | $ 381,024 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 194,737 | 192,911 |
Share-based compensation | 49,631 | 34,927 |
Loss and impairment of long-lived assets | 7,570 | 1,582 |
Loss on early redemption of senior unsecured notes | 0 | 48,022 |
Provision for deferred income taxes | 32,425 | 8,975 |
Other | 1,388 | 1,212 |
Net change in: | ||
Receivables, net | (180,605) | (154,888) |
Inventories | 90,993 | 62,181 |
Accounts payable | 108,393 | 106,831 |
Accrued expenses | 137,395 | 111,136 |
Other assets and liabilities, net | (51,430) | 15,305 |
Net cash provided by operating activities | 924,936 | 809,218 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (190,983) | (192,632) |
Purchase of an indefinite-lived intangible asset | 0 | (230) |
Proceeds from sales of property and equipment | 2,102 | 914 |
Net cash used in investing activities | (188,881) | (191,948) |
Cash flows from financing activities: | ||
Proceeds from borrowing on revolving credit facility | 0 | 500,000 |
Payment on revolving credit facility | 0 | (500,000) |
Proceeds from issuances of senior unsecured notes, net | 0 | 847,092 |
Early redemptions of senior unsecured notes, net | 0 | (602,568) |
Dividends paid | (160,925) | (56,210) |
Proceeds from the issuance of common stock | 1,737 | 2,211 |
Repurchases of common stock | (809,504) | (148,330) |
Other, net | (46) | (8,735) |
Net cash (used in) provided by financing activities | (968,738) | 33,460 |
Effect of exchange rate changes on cash | 2,336 | (1,190) |
Net (decrease) increase in cash and cash equivalents | (230,347) | 649,540 |
Cash and cash equivalents, beginning of period | 834,992 | 418,665 |
Cash and cash equivalents, end of period | 604,645 | 1,068,205 |
Non-cash transactions: | ||
Accrued purchases of property and equipment | $ 8,632 | $ 16,302 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Oct. 09, 2021 | |
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 October 9, 2021, we operated a total of 4,727 stores and 234 branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. In addition, as of October 9, 2021, we served 1,325 independently owned Carquest branded stores across the same geographic locations served by our stores and branches in addition to Mexico and various Caribbean 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. 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 principles. 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 2020 as filed with the SEC on February 22, 2021. |
Significant Acounting Policies
Significant Acounting Policies | 9 Months Ended |
Oct. 09, 2021 | |
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 Forty Weeks Ended October 9, 2021 October 3, 2020 October 9, 2021 October 3, 2020 Percentage of Net sales, by product group: Parts and batteries 68 % 67 % 66 % 66 % Accessories and chemicals 19 20 21 21 Engine maintenance 12 12 12 12 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % |
Inventories
Inventories | 9 Months Ended |
Oct. 09, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | InventoriesInventories are stated at the lower of cost or market. We used the last in, first out (“LIFO”) method of accounting for approximately 89% of inventories as of October 9, 2021 and 88% of inventories as of January 2, 2021. 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 forty weeks ended October 9, 2021 and prior years. We recorded an increase to Cost of sales of $29.4 million and a reduction to Cost of sales of $15.9 million for the twelve weeks ended October 9, 2021 and October 3, 2020 and an increase to Cost of sales of $71.6 million and a reduction to Cost of sales of $3.9 million for the forty weeks ended October 9, 2021 and October 3, 2020 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) October 9, 2021 January 2, 2021 Inventories at first in, first out (“FIFO”) $ 4,366,631 $ 4,382,779 Adjustments to state inventories at LIFO 83,821 155,420 Inventories at LIFO $ 4,450,452 $ 4,538,199 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Oct. 09, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible AssetsOur definite-lived intangible assets include customer relationships and non-compete agreements. Amortization expense was $7.2 million and $7.3 million for the twelve weeks ended October 9, 2021 and October 3, 2020 and $24.1 million and $24.3 million for the forty weeks ended October 9, 2021 and October 3, 2020. |
Receivables, net
Receivables, net | 9 Months Ended |
Oct. 09, 2021 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net Receivables, net consists of the following: (in thousands) October 9, 2021 January 2, 2021 Trade $ 585,174 $ 449,403 Vendor 282,377 278,180 Other 74,528 34,345 Total receivables 942,079 761,928 Less: Allowance for doubtful accounts (10,321) (11,929) Receivables, net $ 931,758 $ 749,999 |
Long-term Debt and Fair Value o
Long-term Debt and Fair Value of Financial Instruments | 9 Months Ended |
Oct. 09, 2021 | |
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) October 9, 2021 January 2, 2021 4.50% Senior Unsecured Notes due December 1, 2023 $ 193,167 $ 192,990 1.75% Senior Unsecured Notes due October 1, 2027 346,251 345,854 3.90% Senior Unsecured Notes due April 15, 2030 494,584 494,140 Total long-term debt $ 1,034,002 $ 1,032,984 Fair value of long-term debt $ 1,103,627 $ 1,145,000 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. Bank Debt As of October 9, 2021 and January 2, 2021, we had no outstanding borrowings, $1.0 billion of borrowing availability and no letters of credit outstanding under our unsecured revolving credit facility (the “Credit Agreement”). As of October 9, 2021 and January 2, 2021, we had $92.6 million and $100.0 million of bilateral letters of credit issued separately from the 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 October 9, 2021. Senior Unsecured Notes 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. On July 28, 2020, we completed an exchange offer whereby 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”), were exchanged for a like principal amount of 3.90% senior unsecured notes due 2030 (the “Exchange Notes” or “2030 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 September 29, 2020, we issued $350.0 million aggregate principal amount of senior unsecured notes (the “2027 Notes”). The 2027 Notes were issued at 99.67% of the principal amount of $350.0 million, are due October 1, 2027 and bear interest at 1.75% per year payable semi-annually in arrears on April 1 and October 1 of each year. In connection with the 2027 Notes offering, we incurred $2.9 million of debt issuance costs. Our 2023 Notes, 2027 Notes and 2030 Notes are collectively referred to herein as our “senior unsecured notes.” Pursuant to a cash tender offer that was completed on September 29, 2020, we repurchased $256.3 million of our 2023 Notes with the net proceeds from the 2027 Notes. In connection with this tender offer, we incurred charges relating to tender premiums and debt issuance costs of $30.5 million and $1.4 million. Debt Guarantees We are a guarantor of loans made by banks to various independently owned Carquest-branded stores that are our customers totaling $27.7 million and $23.6 million as of October 9, 2021 and January 2, 2021. 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 $69.6 million and $57.5 million as of October 9, 2021 and January 2, 2021. We believe that the likelihood of performance under these guarantees is remote. |
Leases
Leases | 9 Months Ended |
Oct. 09, 2021 | |
Leases [Abstract] | |
Leases | LeasesSubstantially all of our leases are for facilities and vehicles. The initial term for facilities is 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) October 9, 2021 January 2, 2021 Total operating lease liabilities $ 2,610,491 $ 2,477,087 Less: Current portion of operating lease liabilities (456,127) (462,588) Noncurrent operating lease liabilities $ 2,154,364 $ 2,014,499 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 Forty Weeks Ended (in thousands) October 9, 2021 October 3, 2020 October 9, 2021 October 3, 2020 Operating lease cost $ 124,084 $ 121,869 $ 410,253 $ 403,381 Variable lease cost 35,144 31,469 112,864 105,862 Total lease cost $ 159,228 $ 153,338 $ 523,117 $ 509,243 The future maturity of lease liabilities are as follows: (in thousands) October 9, 2021 Remainder of 2021 $ 141,957 2022 503,001 2023 481,738 2024 415,170 2025 368,761 Thereafter 1,063,114 Total lease payments 2,973,741 Less: Imputed interest (363,250) Total operating lease liabilities $ 2,610,491 As of October 9, 2021, our operating lease payments include $66.9 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $183.8 million of legally binding minimum lease payments for leases signed, but not yet commenced. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are 7.2 years and 3.3% as of October 9, 2021. 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: Forty Weeks Ended (in thousands) October 9, 2021 October 3, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 418,596 $ 433,934 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 460,351 $ 305,930 |
Warranty Liabilities
Warranty Liabilities | 9 Months Ended |
Oct. 09, 2021 | |
Product Warranties Disclosures [Abstract] | |
Warranty Liabilities | Warranty Liabilities The following table presents changes in our warranty reserves: Forty Weeks Ended Fifty-Three Weeks Ended (in thousands) October 9, 2021 January 2, 2021 Warranty reserve, beginning of period $ 14,120 $ 36,820 Additions to warranty reserves 8,112 14,907 Reduction and utilization of reserve (19,077) (37,607) Warranty reserve, end of period $ 3,155 $ 14,120 |
Share Repurchase Program
Share Repurchase Program | 9 Months Ended |
Oct. 09, 2021 | |
Stock Repurchases: [Abstract] | |
Share Repurchase Program | Share Repurchase Program On April 19, 2021, our Board of Directors authorized an additional $1.0 billion share repurchase program. This new authorization was incremental to the $700.0 million share repurchase program that was authorized by our Board of Directors in November 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 October 9, 2021, we repurchased 1.1 million shares of our common stock at an aggregate cost of $228.3 million, or an average price of $205.65 per share, in connection with our share repurchase program. During the twelve weeks ended October 3, 2020, we repurchased 0.7 million shares of our common stock at an aggregate cost of $109.6 million, or an average price of $153.06 per share, in connection with our share repurchase program. During the forty weeks ended October 9, 2021 and October 3, 2020, we repurchased 4.2 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 forty weeks ended October 9, 2021 and October 3, 2020 were at an aggregate cost of $791.7 million and $138.6 million, or an average price of $189.43 and $147.13 per share. We had $640.5 million remaining under our share repurchase program as of October 9, 2021. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Oct. 09, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The computations of basic and diluted earnings per share are as follows: Twelve Weeks Ended Forty Weeks Ended (in thousands, except per share data) October 9, 2021 October 3, 2020 October 9, 2021 October 3, 2020 Numerator Net income applicable to common shares $ 169,813 $ 147,476 $ 534,439 $ 381,024 Denominator Basic weighted-average common shares 62,854 68,965 64,555 69,097 Dilutive impact of share-based awards 494 302 453 228 Diluted weighted-average common shares (1) 63,348 69,267 65,008 69,325 Basic earnings per common share $ 2.70 $ 2.14 $ 8.28 $ 5.51 Diluted earnings per common share $ 2.68 $ 2.13 $ 8.22 $ 5.50 (1) For the twelve weeks ended October 9, 2021, there were no restricted stock units (“RSUs”) that were anti-dilutive. For the forty weeks ended October 9, 2021, 10,974 RSUs were excluded from the diluted calculation as their inclusion would have been anti-dilutive. For the twelve and forty weeks ended October 3, 2020, 101 thousand and 134 thousand RSUs were excluded from the diluted calculation as their inclusion would have been anti-dilutive. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Oct. 09, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the forty weeks ended October 9, 2021, we granted 234 thousand time-based RSUs, 63 thousand market-based RSUs and 124 thousand Stock Options. The general terms of the time-based, performance-based and market-based RSUs are similar to awards previously granted by us. We grant options to purchase common stock to certain employees under our 2014 Long-Term Incentive Plan. The options are granted at an exercise price equal to the closing market price of Advance's common stock on the date of the grant, expire after 10 years and vest one-third annually over three years. We record compensation expense for the grant date fair value of the option awards evenly over the vesting period. The weighted-average fair values of the time-based and market-based RSUs granted during the forty weeks ended October 9, 2021 were $181.10 and $204.97 per share. For time-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. The weighted-average fair values of stock options granted during the forty weeks ended October 9, 2021 was $47.19 per share. No stock options were granted in the twelve weeks ended October 9, 2021. The fair value was estimated on the date of grant by applying the Black-Scholes option-pricing valuation model. Total income tax benefit related to share-based compensation expense for the twelve and forty weeks ended October 9, 2021 was $4.1 million and $12.3 million. Total income tax benefit related to share-based compensation expense for the twelve and forty weeks ended October 3, 2020 was $2.8 million and $8.8 million. As of October 9, 2021, there was $82.4 million of unrecognized compensation expense related to all share-based awards that is expected to be recognized over a weighted-average period of 1.6 years. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 09, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn February 6, 2018, a putative class action on behalf of purchasers of our securities who purchased or otherwise acquired their securities between November 14, 2016 and August 15, 2017, inclusive (the “Class Period”), was commenced against us and certain of our current and former officers in the U.S. District Court for the District of Delaware. The plaintiff alleged that the defendants failed to disclose material adverse facts about our financial well-being, business relationships, and prospects during the alleged Class Period in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On February 7, 2020, the court granted in part and denied in part our motion to dismiss. On November 6, 2020, the court granted the plaintiff’s motion for class certification. On March 15, 2021, we moved for reconsideration of the order denying in part our motion to dismiss, and on October 15, 2021, we filed a motion for summary judgment, seeking full dismissal of the case. On November 5, 2021, the parties executed a confidential binding term sheet to settle all claims. The settlement amount will be fully covered by our insurance carriers, and the settlement is subject to court approval.On November 9, 2021, we entered into a new credit agreement that provides a $1.2 billion unsecured revolving credit facility (the “2021 Credit Agreement”) with Advance Auto Parts, Inc. as Borrower, the lenders party thereto, and Bank of America, N.A., Administrative Agent. This new revolver under the 2021 Credit Agreement replaced the revolver under the Credit Agreement. The new revolver 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 $500.0 million during the term of the 2021 Credit Agreement. |
Significant Acounting Policies
Significant Acounting Policies (Policies) | 9 Months Ended |
Oct. 09, 2021 | |
Accounting Policies [Abstract] | |
Revenues | Revenues The following table summarizes disaggregated revenue from contracts with customers by product group: Twelve Weeks Ended Forty Weeks Ended October 9, 2021 October 3, 2020 October 9, 2021 October 3, 2020 Percentage of Net sales, by product group: Parts and batteries 68 % 67 % 66 % 66 % Accessories and chemicals 19 20 21 21 Engine maintenance 12 12 12 12 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % |
Inventories | Inventories are stated at the lower of cost or market. |
Leases | Substantially all of our leases are for facilities and vehicles. The initial term for facilities is 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. |
Fair Value Measurement | For time-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. The weighted-average fair values of stock options granted during the forty weeks ended October 9, 2021 was $47.19 per share. No stock options were granted in the twelve weeks ended October 9, 2021. The fair value was estimated on the date of grant by applying the Black-Scholes option-pricing valuation model. |
Significant Acounting Policie_2
Significant Acounting Policies (Tables) | 9 Months Ended |
Oct. 09, 2021 | |
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 Forty Weeks Ended October 9, 2021 October 3, 2020 October 9, 2021 October 3, 2020 Percentage of Net sales, by product group: Parts and batteries 68 % 67 % 66 % 66 % Accessories and chemicals 19 20 21 21 Engine maintenance 12 12 12 12 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 09, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory balances were as follows: (in thousands) October 9, 2021 January 2, 2021 Inventories at first in, first out (“FIFO”) $ 4,366,631 $ 4,382,779 Adjustments to state inventories at LIFO 83,821 155,420 Inventories at LIFO $ 4,450,452 $ 4,538,199 |
Receivables, net (Tables)
Receivables, net (Tables) | 9 Months Ended |
Oct. 09, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Receivables, net consists of the following: (in thousands) October 9, 2021 January 2, 2021 Trade $ 585,174 $ 449,403 Vendor 282,377 278,180 Other 74,528 34,345 Total receivables 942,079 761,928 Less: Allowance for doubtful accounts (10,321) (11,929) Receivables, net $ 931,758 $ 749,999 |
Long-term Debt and Fair Value_2
Long-term Debt and Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Oct. 09, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consists of the following: (in thousands) October 9, 2021 January 2, 2021 4.50% Senior Unsecured Notes due December 1, 2023 $ 193,167 $ 192,990 1.75% Senior Unsecured Notes due October 1, 2027 346,251 345,854 3.90% Senior Unsecured Notes due April 15, 2030 494,584 494,140 Total long-term debt $ 1,034,002 $ 1,032,984 Fair value of long-term debt $ 1,103,627 $ 1,145,000 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 09, 2021 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | Operating lease liabilities consist of the following: (in thousands) October 9, 2021 January 2, 2021 Total operating lease liabilities $ 2,610,491 $ 2,477,087 Less: Current portion of operating lease liabilities (456,127) (462,588) Noncurrent operating lease liabilities $ 2,154,364 $ 2,014,499 |
Lease, Cost | Total lease cost is comprised of the following: Twelve Weeks Ended Forty Weeks Ended (in thousands) October 9, 2021 October 3, 2020 October 9, 2021 October 3, 2020 Operating lease cost $ 124,084 $ 121,869 $ 410,253 $ 403,381 Variable lease cost 35,144 31,469 112,864 105,862 Total lease cost $ 159,228 $ 153,338 $ 523,117 $ 509,243 |
Lessee, Operating Lease, Liability, Maturity | The future maturity of lease liabilities are as follows: (in thousands) October 9, 2021 Remainder of 2021 $ 141,957 2022 503,001 2023 481,738 2024 415,170 2025 368,761 Thereafter 1,063,114 Total lease payments 2,973,741 Less: Imputed interest (363,250) Total operating lease liabilities $ 2,610,491 |
Schedule of Other Information Relating to Lease Liabilities | Other information relating to our lease liabilities is as follows: Forty Weeks Ended (in thousands) October 9, 2021 October 3, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 418,596 $ 433,934 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 460,351 $ 305,930 |
Warranty Liabilities (Tables)
Warranty Liabilities (Tables) | 9 Months Ended |
Oct. 09, 2021 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | The following table presents changes in our warranty reserves: Forty Weeks Ended Fifty-Three Weeks Ended (in thousands) October 9, 2021 January 2, 2021 Warranty reserve, beginning of period $ 14,120 $ 36,820 Additions to warranty reserves 8,112 14,907 Reduction and utilization of reserve (19,077) (37,607) Warranty reserve, end of period $ 3,155 $ 14,120 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Oct. 09, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computations of basic and diluted earnings per share are as follows: Twelve Weeks Ended Forty Weeks Ended (in thousands, except per share data) October 9, 2021 October 3, 2020 October 9, 2021 October 3, 2020 Numerator Net income applicable to common shares $ 169,813 $ 147,476 $ 534,439 $ 381,024 Denominator Basic weighted-average common shares 62,854 68,965 64,555 69,097 Dilutive impact of share-based awards 494 302 453 228 Diluted weighted-average common shares (1) 63,348 69,267 65,008 69,325 Basic earnings per common share $ 2.70 $ 2.14 $ 8.28 $ 5.51 Diluted earnings per common share $ 2.68 $ 2.13 $ 8.22 $ 5.50 (1) For the twelve weeks ended October 9, 2021, there were no restricted stock units (“RSUs”) that were anti-dilutive. For the forty weeks ended October 9, 2021, 10,974 RSUs were excluded from the diluted calculation as their inclusion would have been anti-dilutive. For the twelve and forty weeks ended October 3, 2020, 101 thousand and 134 thousand RSUs were excluded from the diluted calculation as their inclusion would have been anti-dilutive. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) | Oct. 09, 2021store |
Stores [Member] | |
Basis of Presentation [Line Items] | |
Number of Stores | 4,727 |
Branches [Member] | |
Basis of Presentation [Line Items] | |
Number of Stores | 234 |
Independently owned Carquest store locations [Member] | |
Basis of Presentation [Line Items] | |
Number of Stores | 1,325 |
Significant Acounting Policie_3
Significant Acounting Policies (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 09, 2021 | Oct. 03, 2020 | Oct. 09, 2021 | Oct. 03, 2020 | |
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 | 68.00% | 67.00% | 66.00% | 66.00% |
Accessories and Chemicals [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 19.00% | 20.00% | 21.00% | 21.00% |
Engine Maintenance [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 12.00% | 12.00% | 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 | 9 Months Ended | |||
Oct. 09, 2021 | Oct. 03, 2020 | Oct. 09, 2021 | Oct. 03, 2020 | Jan. 02, 2021 | |
Inventory [Line Items] | |||||
Percentage of LIFO Inventory | 89.00% | 89.00% | 88.00% | ||
Inventory, LIFO Reserve, Effect on Income, Net | $ 29,400 | $ 15,900 | $ 71,600 | $ 3,900 | |
Inventories at first in, first out (“FIFO”) | 4,366,631 | 4,366,631 | $ 4,382,779 | ||
Adjustments to state inventories at LIFO | 83,821 | 83,821 | 155,420 | ||
Inventories at LIFO | $ 4,450,452 | $ 4,450,452 | $ 4,538,199 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 09, 2021 | Oct. 03, 2020 | Oct. 09, 2021 | Oct. 03, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 7.2 | $ 7.3 | $ 24.1 | $ 24.3 |
Receivables, net (Details)
Receivables, net (Details) - USD ($) $ in Thousands | Oct. 09, 2021 | Jan. 02, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 942,079 | $ 761,928 |
Less: Allowance for doubtful accounts | (10,321) | (11,929) |
Receivables, net | 931,758 | 749,999 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 585,174 | 449,403 |
Accounts Receivable, Vendor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 282,377 | 278,180 |
Accounts Receivable, Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 74,528 | $ 34,345 |
Long-term Debt and Fair Value_3
Long-term Debt and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Oct. 09, 2021 | Jan. 02, 2021 | Sep. 29, 2020 | Apr. 16, 2020 | Dec. 03, 2013 |
Debt Instrument [Line Items] | |||||
Fair value of long-term debt | $ 1,103,627 | $ 1,145,000 | |||
Guarantor Obligations, Maximum Exposure | 27,700 | 23,600 | |||
Guarantor Obligation, Collateral Amount | 69,600 | 57,500 | |||
Long-term debt | 1,034,002 | 1,032,984 | |||
ChargesRelatingtoDebtIssuanceCostsfrom2023SeniorUnsecuredNotes | $ 1,400 | ||||
ChargesRelatingtoTenderPremiumsof2023SeniorUnsecuredNotesAgreement | 30,500 | ||||
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 | ||||
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, Repurchased Face Amount | $ 256,300 | ||||
Debt Instrument, Face Amount | $ 450,000 | ||||
1.75% senior unsecured notes (2027 Notes) | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | ||||
Debt Issuance, Percentage Of Principal | 99.67% | ||||
Debt Issuance Costs, Gross | $ 2,900 | ||||
Debt Instrument, Face Amount | $ 350,000 | ||||
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 | 92,600 | 100,000 | |||
Senior Notes [Member] | 4.50% senior unsecured notes (2023 Notes) [Member] [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 193,167 | 192,990 | |||
Senior Notes [Member] | 1.75% senior unsecured notes (2027 Notes) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 346,251 | 345,854 | |||
Senior Notes [Member] | 3.90% senior unsecured notes (2030 Notes) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 494,584 | $ 494,140 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 09, 2021 | Oct. 03, 2020 | Oct. 09, 2021 | Oct. 03, 2020 | Jan. 02, 2021 | |
Lessee, Lease, Description [Line Items] | |||||
Total operating lease liabilities | $ 2,610,491 | $ 2,610,491 | $ 2,477,087 | ||
Less: Current portion of operating lease liabilities | 456,127 | 456,127 | 462,588 | ||
Noncurrent operating lease liabilities | 2,154,364 | 2,154,364 | $ 2,014,499 | ||
Operating lease cost | 124,084 | $ 121,869 | 410,253 | $ 403,381 | |
Variable lease cost | 35,144 | 31,469 | 112,864 | 105,862 | |
Total lease cost | 159,228 | $ 153,338 | 523,117 | 509,243 | |
Remainder of 2021 | 141,957 | 141,957 | |||
2022 | 503,001 | 503,001 | |||
2022 | 481,738 | 481,738 | |||
2023 | 415,170 | 415,170 | |||
2024 | 368,761 | 368,761 | |||
Thereafter | 1,063,114 | 1,063,114 | |||
Total lease payments | 2,973,741 | 2,973,741 | |||
Less: Imputed interest | (363,250) | (363,250) | |||
Lessee option to extend reasonably certain of being exercised | 66,900 | 66,900 | |||
Operating lease legally binding minimum payments for lease that have not yet commenced | $ 183,800 | $ 183,800 | |||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 2 months 12 days | 7 years 2 months 12 days | |||
Operating Lease, Weighted Average Discount Rate, Percent | 3.30% | 3.30% | |||
Cash paid for amounts included in the measurement of lease liabilities: | $ 418,596 | 433,934 | |||
Right-of-use assets obtained in exchange for lease obligations: | $ 460,351 | $ 305,930 | |||
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 | 9 Months Ended | 12 Months Ended |
Oct. 09, 2021 | Jan. 02, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty reserve, beginning of period | $ 14,120 | $ 36,820 |
Additions to warranty reserves | 8,112 | 14,907 |
Reduction and utilization of reserve | (19,077) | (37,607) |
Warranty reserve, end of period | $ 3,155 | $ 14,120 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 09, 2021 | Oct. 03, 2020 | Oct. 09, 2021 | Oct. 03, 2020 | Apr. 19, 2021 | Nov. 08, 2019 | |
Class of Stock [Line Items] | ||||||
Treasury Stock, Shares, Acquired as Part of Authorized Plan | 1,100 | 700 | 4,200 | 900 | ||
Payments for Repurchase of Common Stock | $ 228.3 | $ 109.6 | $ 791.7 | $ 138.6 | ||
Acquired, Average Cost Per Share, Acquired as Part of Plan | $ 205.65 | $ 153.06 | $ 189.43 | $ 147.13 | ||
Share Repurchase Program, Remaining Authorized Repurchase Amount | $ 640.5 | $ 640.5 | ||||
August 2019 Share Repurchase Program [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | $ 700 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 09, 2021 | Oct. 03, 2020 | Oct. 09, 2021 | Oct. 03, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income applicable to common shares | $ 169,813 | $ 147,476 | $ 534,439 | $ 381,024 |
Basic weighted-average common shares (in shares) | 62,854,000 | 68,965,000 | 64,555,000 | 69,097,000 |
Dilutive impact of share-based awards (in shares) | 494,000 | 302,000 | 453,000 | 228,000 |
Diluted weighted-average common shares (in shares) | 63,348,000 | 69,267,000 | 65,008,000 | 69,325,000 |
Basic earnings per common share (in dollars per share) | $ 2.70 | $ 2.14 | $ 8.28 | $ 5.51 |
Diluted earnings per common share (in dollars per share) | $ 2.68 | $ 2.13 | $ 8.22 | $ 5.50 |
RSUs | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 101,000 | 10,974 | 134,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 09, 2021 | Oct. 03, 2020 | Oct. 09, 2021 | Oct. 03, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted (in shares) | 0 | 124,000 | ||
Weighted-average fair values of stock options granted (in dollars per share) | $ 47.19 | |||
Tax benefit from compensation expense | $ 4.1 | $ 2.8 | $ 12.3 | $ 8.8 |
Unrecognized compensation expense | $ 82.4 | $ 82.4 | ||
Unrecognized compensation expense, period for recognition | 1 year 7 months 6 days | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period (in shares) | 234,000 | |||
Weighted average grant date fair value (in dollars per share) | $ 181.10 | |||
Market-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period (in shares) | 63,000 | |||
Weighted average grant date fair value (in dollars per share) | $ 204.97 | |||
Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Vesting period | 3 years |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - 2021 Credit Agreement - Unsecured Debt | Nov. 09, 2021USD ($) |
Subsequent Event [Line Items] | |
Maximum borrowing capacity | $ 1,200,000,000 |
Maximum possible increase | 500,000,000 |
Letter of Credit | |
Subsequent Event [Line Items] | |
Maximum borrowing capacity | $ 200,000,000 |