Cover Page
Cover Page - shares | 3 Months Ended | 9 Months Ended | |
Oct. 08, 2022 | Oct. 08, 2022 | Nov. 14, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Document Period End Date | Oct. 08, 2022 | Oct. 08, 2022 | |
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 | 4200 Six Forks Road | ||
Entity Address, City or Town | Raleigh | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 27609 | ||
City Area Code | 540 | ||
Local Phone Number | 362-4911 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Trading Symbol | AAP | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 59,253,716 | ||
Entity Central Index Key | 0001158449 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 08, 2022 | Jan. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 191,204 | $ 601,428 |
Receivables, net | 845,667 | 782,785 |
Inventories | 4,926,579 | 4,659,018 |
Other current assets | 199,069 | 232,245 |
Total current assets | 6,162,519 | 6,275,476 |
Property and equipment, net of accumulated depreciation of $2,534,559 and $2,403,567 | 1,663,939 | 1,528,311 |
Operating lease right-of-use assets | 2,625,638 | 2,671,810 |
Goodwill | 989,946 | 993,744 |
Other intangible assets, net | 625,673 | 651,217 |
Other assets | 64,364 | 73,651 |
Total assets | 12,132,079 | 12,194,209 |
Current liabilities: | ||
Accounts payable | 4,097,412 | 3,922,007 |
Accrued expenses | 681,216 | 777,051 |
Long-term Debt, Current Maturities | 185,000 | 0 |
Other current liabilities | 479,273 | 481,249 |
Total current liabilities | 5,442,901 | 5,180,307 |
Long-term debt | 1,187,916 | 1,034,320 |
Noncurrent operating lease liabilities | 2,251,560 | 2,337,651 |
Deferred income taxes | 433,717 | 410,606 |
Other long-term liabilities | 99,910 | 103,034 |
Total Liabilities | 9,416,004 | 9,065,918 |
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 | 886,438 | 845,407 |
Treasury stock, at cost | (2,842,896) | (2,300,288) |
Accumulated other comprehensive loss | (54,298) | (22,627) |
Retained earnings | 4,726,823 | 4,605,791 |
Total stockholders’ equity | 2,716,075 | 3,128,291 |
Liabilities and Stockholders' Equity, Total | $ 12,132,079 | $ 12,194,209 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Oct. 08, 2022 | Jan. 01, 2022 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 2,534,559 | $ 2,403,567 |
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. 08, 2022 | Oct. 09, 2021 | Oct. 08, 2022 | Oct. 09, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,641,341 | $ 2,621,229 | $ 8,680,977 | $ 8,601,014 |
Cost of sales, including purchasing and warehousing costs | 1,461,490 | 1,438,775 | 4,808,888 | 4,744,383 |
Gross profit | 1,179,851 | 1,182,454 | 3,872,089 | 3,856,631 |
Selling, general and administrative expenses | 1,002,653 | 953,256 | 3,289,940 | 3,130,376 |
Operating income | 177,198 | 229,198 | 582,149 | 726,255 |
Other, net: | ||||
Interest expense | (12,039) | (8,587) | (35,114) | (28,085) |
Loss on early redemption of senior unsecured notes | 0 | 0 | (7,408) | 0 |
Other (expense) income, net | (17,741) | 1,810 | (18,314) | 7,790 |
Total other, net | (29,780) | (6,777) | (60,836) | (20,295) |
Income before provision for income taxes | 147,418 | 222,421 | 521,313 | 705,960 |
Provision for income taxes | 36,436 | 52,608 | 126,137 | 171,521 |
Net income | $ 110,982 | $ 169,813 | $ 395,176 | $ 534,439 |
Basic earnings per common share (in dollars per share) | $ 1.85 | $ 2.70 | $ 6.52 | $ 8.28 |
Weighted-average common shares outstanding | 60,053 | 62,854 | 60,656 | 64,555 |
Diluted earnings per common share (in dollars per share) | $ 1.84 | $ 2.68 | $ 6.47 | $ 8.22 |
Weighted-average common shares outstanding | 60,384 | 63,348 | 61,045 | 65,008 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 08, 2022 | Oct. 09, 2021 | Oct. 08, 2022 | Oct. 09, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 110,982 | $ 169,813 | $ 395,176 | $ 534,439 |
Other comprehensive (loss) income: | ||||
Changes in net unrecognized other postretirement costs, net of tax of $25, $25, $41 and $69 | (70) | (70) | (116) | (194) |
Currency translation adjustments | (33,439) | 1,527 | (31,555) | 5,127 |
Total other comprehensive (loss) income | (33,509) | 1,457 | (31,671) | 4,933 |
Comprehensive income | $ 77,473 | $ 171,270 | $ 363,505 | $ 539,372 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 08, 2022 | Oct. 09, 2021 | Oct. 08, 2022 | Oct. 09, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ 25 | $ 25 | $ 41 | $ 69 |
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 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 |
Common Stock, Dividends, Per Share, Declared | $ 2.25 | |||||
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 |
Common Stock, Dividends, Per Share, Declared | $ 1 | |||||
Total other comprehensive income (loss) | $ 1,457 | |||||
Balance (in shares) at Jan. 01, 2022 | 62,009 | |||||
Balance at Jan. 01, 2022 | 3,128,291 | $ 8 | 845,407 | (2,300,288) | (22,627) | 4,605,791 |
Net income | 395,176 | 395,176 | ||||
Total other comprehensive income (loss) | (31,671) | (31,671) | ||||
Issuance of shares upon the exercise of stock appreciation rights (in shares) | 3 | |||||
Issuance of shares upon the exercise of stock appreciation rights | 496 | 496 | ||||
Restricted stock and deferred stock units vested (in shares) | 281 | |||||
Restricted stock units and deferred stock units vested | 0 | |||||
Share-based compensation | 40,291 | 40,291 | ||||
Stock issued under employee stock purchase plan (in shares) | 25 | |||||
Stock issued under employee stock purchase plan | 3,144 | 3,144 | ||||
Repurchases of common stock (in shares) | (2,622) | |||||
Repurchases of common stock | (542,608) | (542,608) | ||||
Cash dividends declared | (274,144) | (274,144) | ||||
Other (in shares) | 0 | |||||
Other | (2,900) | (2,900) | ||||
Balance (in shares) at Oct. 08, 2022 | 59,696 | |||||
Balance at Oct. 08, 2022 | $ 2,716,075 | $ 8 | 886,438 | (2,842,896) | (54,298) | 4,726,823 |
Common Stock, Dividends, Per Share, Declared | $ 4.50 | |||||
Balance (in shares) at Jul. 16, 2022 | 60,118 | |||||
Balance at Jul. 16, 2022 | $ 2,794,809 | $ 8 | 875,500 | (2,766,457) | (20,789) | 4,706,547 |
Net income | 110,982 | 110,982 | ||||
Total other comprehensive income (loss) | (33,509) | (33,509) | ||||
Issuance of shares upon the exercise of stock appreciation rights (in shares) | 1 | |||||
Issuance of shares upon the exercise of stock appreciation rights | 142 | 142 | ||||
Restricted stock and deferred stock units vested (in shares) | 22 | |||||
Restricted stock units and deferred stock units vested | 0 | |||||
Share-based compensation | 10,946 | 10,946 | ||||
Stock issued under employee stock purchase plan (in shares) | 7 | |||||
Stock issued under employee stock purchase plan | 1,050 | 1,050 | ||||
Repurchases of common stock (in shares) | (452) | |||||
Repurchases of common stock | (76,439) | (76,439) | ||||
Cash dividends declared | (90,706) | (90,706) | ||||
Other (in shares) | 0 | |||||
Other | (1,200) | (1,200) | ||||
Balance (in shares) at Oct. 08, 2022 | 59,696 | |||||
Balance at Oct. 08, 2022 | $ 2,716,075 | $ 8 | $ 886,438 | $ (2,842,896) | $ (54,298) | $ 4,726,823 |
Common Stock, Dividends, Per Share, Declared | $ 1.50 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 08, 2022 | Oct. 09, 2021 | Oct. 08, 2022 | Oct. 09, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (per common share) | $ 1.50 | $ 1 | $ 4.50 | $ 2.25 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows $ in Thousands | 9 Months Ended | |
Oct. 08, 2022 USD ($) | Oct. 09, 2021 USD ($) | |
Cash flows from operating activities: | ||
Net income | $ 395,176 | $ 534,439 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 215,224 | 194,737 |
Share-based compensation | 40,291 | 49,631 |
Loss and impairment of long-lived assets | 2,858 | 7,570 |
Loss on early redemption of senior unsecured notes | 7,408 | 0 |
Provision for deferred income taxes | 24,144 | 32,425 |
Other | 2,064 | 1,388 |
Net change in: | ||
Receivables, net | (66,902) | (180,605) |
Inventories | (284,271) | 90,993 |
Accounts payable | 187,331 | 108,393 |
Accrued expenses | (34,046) | 137,395 |
Other assets and liabilities, net | (6,183) | (51,430) |
Net cash provided by operating activities | 483,094 | 924,936 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (333,639) | (190,983) |
Proceeds from sales of property and equipment | 1,821 | 2,102 |
Net cash used in investing activities | (331,818) | (188,881) |
Cash flows from financing activities: | ||
Borrowings under credit facilities | 1,123,000 | 0 |
Payments on credit facilities | (938,000) | 0 |
Borrowings on senior unsecured notes | 348,618 | 0 |
Payments on senior unsecured notes | (201,081) | 0 |
Dividends paid | (336,230) | (160,925) |
Repurchases of common stock | (542,608) | (809,504) |
Other, net | 463 | 1,691 |
Net cash used in financing activities | (545,838) | (968,738) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (15,662) | 2,336 |
Net decrease in cash and cash equivalents | (410,224) | (230,347) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 191,204 | |
Cash and cash equivalents, beginning of period | 601,428 | 834,992 |
Cash and cash equivalents, end of period | 191,204 | 604,645 |
Non-cash transactions: | ||
Accrued purchases of property and equipment | $ 13,126 | $ 8,632 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Oct. 08, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Description of Business Advance Auto Parts, Inc. and subsidiaries is a leading automotive aftermarket parts provider in North America, serving both professional installers (“professional”) and “do-it-yourself” (“DIY”) customers. The accompanying 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 8, 2022, we operated a total of 4,747 stores and 313 branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. In addition, as of October 8, 2022, we served 1,335 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” and “Carquest” and our branches operate under the “Worldpac” and “Autopart International” trade names. 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 2021 as filed with the SEC on February 15, 2022. |
Significant Acounting Policies
Significant Acounting Policies | 9 Months Ended |
Oct. 08, 2022 | |
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 8, 2022 October 9, 2021 October 8, 2022 October 9, 2021 Percentage of Sales: Parts and Batteries 67 % 68 % 66 % 66 % Accessories and Chemicals 20 19 20 21 Engine Maintenance 12 12 13 12 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % |
Inventories
Inventories | 9 Months Ended |
Oct. 08, 2022 | |
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 90.8% of inventories as of October 8, 2022 and 89.8% of inventories as of January 1, 2022. 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 8, 2022 and prior years. As a result of changes in the LIFO reserve, we recorded an increase to Cost of sales of $67.5 million and $29.4 million for the twelve weeks ended October 8, 2022 and October 9, 2021 and an increase to Cost of sales of $240.8 million and $71.6 million for the forty weeks ended October 8, 2022 and October 9, 2021 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 inventory levels and carrying 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: October 8, 2022 January 1, 2022 Inventories at first in, first out (“FIFO”) $ 5,134,220 $ 4,625,900 Adjustments to state inventories at LIFO (207,641) 33,118 Inventories at LIFO $ 4,926,579 $ 4,659,018 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Oct. 08, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible AssetsOur definite-lived intangible assets include customer relationships and non-compete agreements. Amortization expense was $7.0 million and $7.2 million for the twelve weeks ended October 8, 2022 and October 9, 2021 and $23.6 million and $24.1 million for the forty weeks ended October 8, 2022 and October 9, 2021. |
Receivables, net
Receivables, net | 9 Months Ended |
Oct. 08, 2022 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net Receivables, net, consisted of the following: October 8, 2022 January 1, 2022 Trade $ 659,373 $ 506,725 Vendor 193,019 201,933 Other (1) 13,820 84,289 Total receivables 866,212 792,947 Less: allowance for credit losses (20,545) (10,162) Receivables, net $ 845,667 $ 782,785 (1) The decrease in Other receivables as of October 8, 2022 was primarily attributable to the release of the settlement in the second quarter of 2022 for the amount of $49.3 million, which was related to the securities class action litigation and was fully paid by our insurance carriers upon final court approval on June 13, 2022. |
Long-term Debt and Fair Value o
Long-term Debt and Fair Value of Financial Instruments | 9 Months Ended |
Oct. 08, 2022 | |
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: October 8, 2022 January 1, 2022 4.50% Senior Unsecured Notes due December 1, 2023 $ — $ 193,220 1.75% Senior Unsecured Notes due October 1, 2027 346,816 346,382 3.90% Senior Unsecured Notes due April 15, 2030 495,427 494,718 3.50% Senior Unsecured Notes due March 15, 2032 345,673 — Revolver credit facility 185,000 — $ 1,372,916 $ 1,034,320 Less: Current portion of long-term debt (185,000) — Long-term debt, excluding the current portion $ 1,187,916 $ 1,034,320 Fair value of long-term debt $ 998,000 $ 1,092,000 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, net, Accounts payable and Accrued expenses approximate their fair values due to the relatively short-term nature of these instruments. Bank Debt As of October 8, 2022, we had $185.0 million of 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 January 1, 2022, we had no outstanding borrowings, $1.2 billion of borrowing availability and no letters of credit outstanding under our Credit Agreement. As of October 8, 2022 and January 1, 2022, we had $90.2 million and $92.0 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 8, 2022. 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, payable semi-annually in arrears on June 1 and December 1, at a rate of 4.50% per year. Pursuant to a cash tender offer that was completed on September 29, 2020, we repurchased $256.3 million of the 2023 Notes with the net proceeds from the 2027 Notes. In connection with this tender offer, we incurred charges related to tender premiums and debt issuance costs of $30.5 million and $1.4 million. On April 4, 2022, we redeemed the remaining $193.2 million principal amount of our outstanding 2023 Notes with the net proceeds from the issuance of the 3.50% senior unsecured notes due March 15, 2032 (the “2032 Notes”). In connection with this early redemption, we incurred charges related to the make-whole provision and debt issuance costs of $7.0 million and $0.4 million. Our 3.90% senior unsecured notes due April 15, 2030 (the “Original Notes”) were issued April 16, 2020, at 99.65% of the principal amount of $500.0 million, and were not registered under the Securities Act of 1933, as amended (the “Securities Act”). The Original Notes bear interest, payable semi-annually in arrears on April 15 and October 15, at a rate of 3.90% per year. On July 28, 2020, we completed an exchange offer whereby the Original Notes in the aggregate principal amount of $500.0 million were exchanged for a like principal amount (the “Exchange Notes” or “2030 Notes”), and which have been registered under the Securities Act. The Original Notes were substantially identical to the Exchange Notes, except 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. Our 1.75% senior unsecured notes due October 1, 2027 (the “2027 Notes”) were issued September 29, 2020, at 99.67% of the principal amount of $350.0 million. The 2027 Notes bear interest, payable semi-annually in arrears on April 1 and October 1, at a rate of 1.75% per year. In connection with the 2027 Notes offering, we incurred $2.9 million of debt issuance costs. Our 2032 Notes were issued March 4, 2022, at 99.61% of the principal amount of $350.0 million. The 2032 Notes bear interest, payable semi-annually in arrears on March 15 and September 15, at a rate of 3.50% per year. In connection with the 2032 Notes offering, we incurred $3.2 million of debt issuance costs. We may redeem some or all of the 2032 Notes at any time or from time to time, prior to December 15, 2031, at the redemption price described in the related indenture for the 2032 Notes (the “Indenture”). In addition, in the event of a change of control triggering event, as defined in the Indenture, we will be required to offer to repurchase the 2032 Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase date. Currently, the 2032 Notes are fully and unconditionally guaranteed, jointly and severally, on an unsubordinated unsecured basis by guarantor and subsidiary guarantees, as defined by the Indenture. Debt Guarantees We are a guarantor of loans made by banks to various independently owned Carquest-branded stores that are customers of ours. These loans totaled $66.5 million and $31.7 million as of October 8, 2022 and January 1, 2022 and are collateralized by security agreements on merchandise inventory and other assets of the borrowers. The approximate value of the inventory collateralized by these agreements was $143.9 million and $86.9 million as of October 8, 2022 and January 1, 2022. We believe that the likelihood of performance under these guarantees is remote. |
Leases
Leases | 9 Months Ended |
Oct. 08, 2022 | |
Leases [Abstract] | |
Leases | Leases Substantially all of our leases are for facilities and vehicles. The initial term for facilities is typically five five three Operating lease liabilities consisted of the following: October 8, 2022 January 1, 2022 Total operating lease liabilities $ 2,713,940 $ 2,802,772 Less: Current portion of operating lease liabilities (462,380) (465,121) Noncurrent operating lease liabilities $ 2,251,560 $ 2,337,651 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 was comprised of the following: Twelve Weeks Ended Forty Weeks Ended October 8, 2022 October 9, 2021 October 8, 2022 October 9, 2021 Operating lease cost $ 130,108 $ 124,084 $ 433,147 $ 410,253 Variable lease cost 40,910 35,144 136,183 112,864 Total lease cost $ 171,018 $ 159,228 $ 569,330 $ 523,117 The future maturity of lease liabilities as of October 8, 2022 were as follows: Remainder of 2022 $ 71,651 2023 564,385 2024 504,295 2025 470,989 2026 360,570 Thereafter 1,085,608 Total lease payments 3,057,498 Less: Imputed interest (343,558) Total operating lease liabilities $ 2,713,940 As of October 8, 2022, our operating lease liabilities included $54.0 million related to options to extend lease terms that are reasonably certain of being exercised and excluded $100.0 million of legally binding minimum lease payments for leases signed but not yet commenced. T he weighted-average remaining lease term and weighted-average discount rate for our operating leases were 7.0 years and 3.3% as of October 8, 2022. We calculated the weighted-average discount rates using incremental borrowing rates, which equal the rat es 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 October 8, 2022 October 9, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 478,658 $ 418,596 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 343,950 $ 460,351 |
Share Repurchase Program
Share Repurchase Program | 9 Months Ended |
Oct. 08, 2022 | |
Stock Repurchases: [Abstract] | |
Share Repurchase Program | Share Repurchase ProgramOn February 8, 2022, our Board of Directors authorized an additional $1.0 billion to the existing share repurchase program. This authorization is incremental to the $1.7 billion that was previously authorized by our Board of Directors. 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 8, 2022 and October 9, 2021, we repurchased 0.4 million and 1.1 million shares of our common stock under our share repurchase program at an aggregate cost of $75.0 million and $228.3 million, or an average price of $168.93 and $205.65 per share. During the forty weeks ended October 8, 2022 and October 9, 2021, we repurchased 2.5 million and 4.2 million shares of our common stock under our share repurchase program at an aggregate cost of $523.2 million and $791.7 million, or an average price of $207.50 and $189.43 per share. We had $1.0 billion remaining under our share repurchase program as of October 8, 2022. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Oct. 08, 2022 | |
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 October 8, 2022 October 9, 2021 October 8, 2022 October 9, 2021 Numerator Net income applicable to common shares $ 110,982 $ 169,813 $ 395,176 $ 534,439 Denominator Basic weighted-average common shares 60,053 62,854 60,656 64,555 Dilutive impact of share-based awards 331 494 389 453 Diluted weighted-average common shares (1) 60,384 63,348 61,045 65,008 Basic earnings per common share $ 1.85 $ 2.70 $ 6.52 $ 8.28 Diluted earnings per common share $ 1.84 $ 2.68 $ 6.47 $ 8.22 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Oct. 08, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the forty weeks ended October 8, 2022, we granted 188 thousand time-based RSUs, 58 thousand market-based RSUs and 114 thousand stock options. The general terms of the time-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 general terms of the stock options are similar to awards previously granted by us. 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 8, 2022 were $201.89 and $205.52 per share. The fair value of each market-based RSU was determined using a Monte Carlo simulation model. 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 total income tax benefit related to share-based compensation expense for the forty weeks ended October 8, 2022 was $9.9 million. As of October 8, 2022, there was $76.0 million of unrecognized compensation expense related to all share-based awards that is expected to be recognized over a weighted-average period of 1.5 years. |
Significant Acounting Policies
Significant Acounting Policies (Policies) | 9 Months Ended |
Oct. 08, 2022 | |
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 8, 2022 October 9, 2021 October 8, 2022 October 9, 2021 Percentage of Sales: Parts and Batteries 67 % 68 % 66 % 66 % Accessories and Chemicals 20 19 20 21 Engine Maintenance 12 12 13 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 five five three |
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. |
Inventory (Policies)
Inventory (Policies) | 9 Months Ended |
Oct. 08, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories are stated at the lower of cost or market. |
Significant Acounting Policie_2
Significant Acounting Policies (Tables) | 9 Months Ended |
Oct. 08, 2022 | |
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 8, 2022 October 9, 2021 October 8, 2022 October 9, 2021 Percentage of Sales: Parts and Batteries 67 % 68 % 66 % 66 % Accessories and Chemicals 20 19 20 21 Engine Maintenance 12 12 13 12 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 08, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory balances were as follows: October 8, 2022 January 1, 2022 Inventories at first in, first out (“FIFO”) $ 5,134,220 $ 4,625,900 Adjustments to state inventories at LIFO (207,641) 33,118 Inventories at LIFO $ 4,926,579 $ 4,659,018 |
Receivables, net (Tables)
Receivables, net (Tables) | 9 Months Ended |
Oct. 08, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Receivables, net, consisted of the following: October 8, 2022 January 1, 2022 Trade $ 659,373 $ 506,725 Vendor 193,019 201,933 Other (1) 13,820 84,289 Total receivables 866,212 792,947 Less: allowance for credit losses (20,545) (10,162) Receivables, net $ 845,667 $ 782,785 (1) The decrease in Other receivables as of October 8, 2022 was primarily attributable to the release of the settlement in the second quarter of 2022 for the amount of $49.3 million, which was related to the securities class action litigation and was fully paid by our insurance carriers upon final court approval on June 13, 2022. |
Long-term Debt and Fair Value_2
Long-term Debt and Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Oct. 08, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consists of the following: October 8, 2022 January 1, 2022 4.50% Senior Unsecured Notes due December 1, 2023 $ — $ 193,220 1.75% Senior Unsecured Notes due October 1, 2027 346,816 346,382 3.90% Senior Unsecured Notes due April 15, 2030 495,427 494,718 3.50% Senior Unsecured Notes due March 15, 2032 345,673 — Revolver credit facility 185,000 — $ 1,372,916 $ 1,034,320 Less: Current portion of long-term debt (185,000) — Long-term debt, excluding the current portion $ 1,187,916 $ 1,034,320 Fair value of long-term debt $ 998,000 $ 1,092,000 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 08, 2022 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | Operating lease liabilities consisted of the following: October 8, 2022 January 1, 2022 Total operating lease liabilities $ 2,713,940 $ 2,802,772 Less: Current portion of operating lease liabilities (462,380) (465,121) Noncurrent operating lease liabilities $ 2,251,560 $ 2,337,651 |
Lease, Cost | Total lease cost was comprised of the following: Twelve Weeks Ended Forty Weeks Ended October 8, 2022 October 9, 2021 October 8, 2022 October 9, 2021 Operating lease cost $ 130,108 $ 124,084 $ 433,147 $ 410,253 Variable lease cost 40,910 35,144 136,183 112,864 Total lease cost $ 171,018 $ 159,228 $ 569,330 $ 523,117 |
Lessee, Operating Lease, Liability, Maturity | The future maturity of lease liabilities as of October 8, 2022 were as follows: Remainder of 2022 $ 71,651 2023 564,385 2024 504,295 2025 470,989 2026 360,570 Thereafter 1,085,608 Total lease payments 3,057,498 Less: Imputed interest (343,558) Total operating lease liabilities $ 2,713,940 |
Schedule of Other Information Relating to Lease Liabilities | Other information relating to our lease liabilities is as follows: Forty Weeks Ended October 8, 2022 October 9, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 478,658 $ 418,596 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 343,950 $ 460,351 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Oct. 08, 2022 | |
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 October 8, 2022 October 9, 2021 October 8, 2022 October 9, 2021 Numerator Net income applicable to common shares $ 110,982 $ 169,813 $ 395,176 $ 534,439 Denominator Basic weighted-average common shares 60,053 62,854 60,656 64,555 Dilutive impact of share-based awards 331 494 389 453 Diluted weighted-average common shares (1) 60,384 63,348 61,045 65,008 Basic earnings per common share $ 1.85 $ 2.70 $ 6.52 $ 8.28 Diluted earnings per common share $ 1.84 $ 2.68 $ 6.47 $ 8.22 |
Compensation Related Costs, Sha
Compensation Related Costs, Share Based Payments (Tables) | 9 Months Ended |
Oct. 08, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each market-based RSU was determined using a Monte Carlo simulation model. 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. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) | 3 Months Ended | 9 Months Ended |
Oct. 08, 2022 store | Oct. 08, 2022 store | |
Basis of Presentation [Line Items] | ||
Document Period End Date | Oct. 08, 2022 | Oct. 08, 2022 |
Stores [Member] | ||
Basis of Presentation [Line Items] | ||
Number of Stores | 4,747 | 4,747 |
Branches [Member] | ||
Basis of Presentation [Line Items] | ||
Number of Stores | 313 | 313 |
Independently owned Carquest store locations [Member] | ||
Basis of Presentation [Line Items] | ||
Number of Stores | 1,335 | 1,335 |
Significant Acounting Policie_3
Significant Acounting Policies (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 08, 2022 | Oct. 09, 2021 | Oct. 08, 2022 | Oct. 09, 2021 | |
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 100% | 100% | 100% | 100% |
Parts and Batteries [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 67% | 68% | 66% | 66% |
Accessories and Chemicals [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 20% | 19% | 20% | 21% |
Engine Maintenance [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 12% | 12% | 13% | 12% |
Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 1% | 1% | 1% | 1% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 08, 2022 | Oct. 09, 2021 | Oct. 08, 2022 | Oct. 09, 2021 | Jan. 01, 2022 | |
Inventory [Line Items] | |||||
Percentage of LIFO Inventory | 90.80% | 90.80% | 89.80% | ||
Inventory, LIFO Reserve, Effect on Income, Net | $ 67,500 | $ 29,400 | $ 240,800 | $ 71,600 | |
Inventories at first in, first out (“FIFO”) | 5,134,220 | 5,134,220 | $ 4,625,900 | ||
Adjustments to state inventories at LIFO | (207,641) | (207,641) | 33,118 | ||
Inventories at LIFO | $ 4,926,579 | $ 4,926,579 | $ 4,659,018 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 08, 2022 | Oct. 09, 2021 | Oct. 08, 2022 | Oct. 09, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 7 | $ 7.2 | $ 23.6 | $ 24.1 |
Receivables, net (Details)
Receivables, net (Details) - USD ($) $ in Thousands | Oct. 08, 2022 | Jun. 13, 2022 | Jan. 01, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total receivables | $ 866,212 | $ 792,947 | |
Less: Allowance for doubtful accounts | (20,545) | (10,162) | |
Receivables, net | 845,667 | 782,785 | |
Insurance Settlements Receivable, Noncurrent | $ 49,300 | ||
Trade Accounts Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total receivables | 659,373 | 506,725 | |
Accounts Receivable, Vendor [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total receivables | 193,019 | 201,933 | |
Accounts Receivable, Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total receivables | $ 13,820 | $ 84,289 |
Long-term Debt and Fair Value_3
Long-term Debt and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Oct. 08, 2022 | Oct. 08, 2022 | Apr. 04, 2022 | Mar. 04, 2022 | Mar. 01, 2022 | Jan. 01, 2022 | Sep. 29, 2020 | Apr. 16, 2020 | Dec. 03, 2013 | |
Debt Instrument [Line Items] | |||||||||
Fair value of long-term debt | $ 998,000 | $ 998,000 | $ 1,092,000 | ||||||
Guarantor Obligations, Maximum Exposure | 66,500 | 66,500 | 31,700 | ||||||
Guarantor Obligation, Collateral Amount | 143,900 | 143,900 | 86,900 | ||||||
Long-term debt | 1,187,916 | 1,187,916 | 1,034,320 | ||||||
Debt, Long-term and Short-term, Combined Amount | 1,372,916 | 1,372,916 | 1,034,320 | ||||||
Long-term Debt, Current Maturities | $ (185,000) | $ (185,000) | 0 | ||||||
ChargesRelatingtoMakeWholeProvisionof2022SeniorUnsecuredNotesAgreement | $ 7,000 | ||||||||
ChargesRelatingtoDebtIssuanceCostsfrom2022SeniorUnsecuredNotes | 400 | ||||||||
Document Period End Date | Oct. 08, 2022 | Oct. 08, 2022 | |||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 1,200,000 | ||||||||
Letters of Credit Outstanding, Amount | $ 0 | $ 0 | 0 | ||||||
Debt, Long-term and Short-term, Combined Amount | 185,000 | 185,000 | 0 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | 1,000,000 | 1,000,000 | |||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 185,000 | 185,000 | 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 | ||||||||
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 | ||||||||
3.50% senior unsecured notes (2032 Notes) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | ||||||||
Debt Issuance, Percentage Of Principal | 99.61% | ||||||||
Debt Issuance Costs, Gross | $ 3,200 | ||||||||
Debt Instrument, Face Amount | $ 350,000 | ||||||||
4.50% senior unsecured notes (2022 Notes) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Repurchased Face Amount | $ 193,200 | ||||||||
Bilateral Letter of Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Letters of Credit Outstanding, Amount | 90,200 | $ 90,200 | 92,000 | ||||||
Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 101% | ||||||||
Senior Notes [Member] | 4.50% senior unsecured notes (2023 Notes) [Member] [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 0 | $ 0 | 193,220 | ||||||
Debt Issuance Costs, Gross | 1,400 | ||||||||
Debt Instrument, Repurchased Face Amount | 256,300 | ||||||||
Debt Instrument, Unamortized Premium | $ 30,500 | ||||||||
Senior Notes [Member] | 1.75% senior unsecured notes (2027 Notes) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | 1.75% | |||||||
Long-term debt | $ 346,816 | $ 346,816 | 346,382 | ||||||
Senior Notes [Member] | 3.90% senior unsecured notes (2030 Notes) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | 3.90% | |||||||
Long-term debt | $ 495,427 | $ 495,427 | 494,718 | ||||||
Senior Notes [Member] | 3.50% senior unsecured notes (2032 Notes) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | |||||||
Long-term debt | $ 345,673 | $ 345,673 | $ 0 | ||||||
Senior Notes [Member] | 4.50% senior unsecured notes (2023 Notes) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 08, 2022 | Oct. 09, 2021 | Oct. 08, 2022 | Oct. 09, 2021 | Jan. 01, 2022 | |
Lessee, Lease, Description [Line Items] | |||||
Total operating lease liabilities | $ 2,713,940 | $ 2,713,940 | $ 2,802,772 | ||
Less: Current portion of operating lease liabilities | 462,380 | 462,380 | 465,121 | ||
Noncurrent operating lease liabilities | 2,251,560 | 2,251,560 | $ 2,337,651 | ||
Operating lease cost | 130,108 | $ 124,084 | 433,147 | $ 410,253 | |
Variable lease cost | 40,910 | 35,144 | 136,183 | 112,864 | |
Total lease cost | 171,018 | $ 159,228 | 569,330 | 523,117 | |
Remainder of 2022 | 71,651 | 71,651 | |||
2023 | 564,385 | 564,385 | |||
2023 | 504,295 | 504,295 | |||
2024 | 470,989 | 470,989 | |||
2025 | 360,570 | 360,570 | |||
Thereafter | 1,085,608 | 1,085,608 | |||
Total lease payments | 3,057,498 | 3,057,498 | |||
Less: Imputed interest | (343,558) | (343,558) | |||
Lessee option to extend reasonably certain of being exercised | 54,000 | 54,000 | |||
Operating lease legally binding minimum payments for lease that have not yet commenced | $ 100,000 | $ 100,000 | |||
Operating Lease, Weighted Average Remaining Lease Term | 7 years | 7 years | |||
Operating Lease, Weighted Average Discount Rate, Percent | 3.30% | 3.30% | |||
Cash paid for amounts included in the measurement of lease liabilities: | $ 478,658 | 418,596 | |||
Right-of-use assets obtained in exchange for lease obligations: | $ 343,950 | $ 460,351 | |||
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 | 6 years | 6 years |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 08, 2022 | Oct. 09, 2021 | Oct. 08, 2022 | Oct. 09, 2021 | Feb. 08, 2022 | Apr. 19, 2021 | |
Class of Stock [Line Items] | ||||||
Treasury Stock, Shares, Acquired as Part of Authorized Plan | 400 | 1,100 | 2,500 | 4,200 | ||
Payments for Repurchase of Common Stock | $ 75 | $ 228.3 | $ 523.2 | $ 791.7 | ||
Acquired, Average Cost Per Share, Acquired as Part of Plan | $ 168.93 | $ 205.65 | $ 207.50 | $ 189.43 | ||
Share Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,000 | $ 1,000 | ||||
August 2019 Share Repurchase Program [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | $ 1,700 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 08, 2022 | Oct. 09, 2021 | Oct. 08, 2022 | Oct. 09, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 110,982 | $ 169,813 | $ 395,176 | $ 534,439 |
Basic weighted-average common shares (in shares) | 60,053,000 | 62,854,000 | 60,656,000 | 64,555,000 |
Dilutive impact of share-based awards (in shares) | 331,000 | 494,000 | 389,000 | 453,000 |
Diluted weighted-average common shares (in shares) | 60,384,000 | 63,348,000 | 61,045,000 | 65,008,000 |
Basic earnings per common share (in dollars per share) | $ 1.85 | $ 2.70 | $ 6.52 | $ 8.28 |
Diluted earnings per common share (in dollars per share) | $ 1.84 | $ 2.68 | $ 6.47 | $ 8.22 |
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) | 163 | 0 | 122 | 11,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 08, 2022 | Oct. 09, 2021 | Oct. 08, 2022 | Oct. 09, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted (in shares) | 114,000 | |||
Tax benefit from compensation expense | $ 9.9 | |||
Unrecognized compensation expense | $ 76 | $ 76 | ||
Unrecognized compensation expense, period for recognition | 1 year 6 months | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period (in shares) | 188,000 | |||
Weighted average grant date fair value (in dollars per share) | $ 201.89 | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 163 | 0 | 122 | 11,000 |
Market-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period (in shares) | 58,000 | |||
Weighted average grant date fair value (in dollars per share) | $ 205.52 |
Uncategorized Items - aap-20221
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 601,428,000 |