Cover Page
Cover Page - shares | 6 Months Ended | |
Jul. 15, 2023 | Aug. 21, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 15, 2023 | |
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, $0.0001 par value | |
Trading Symbol | AAP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,470,261 | |
Entity Central Index Key | 0001158449 | |
Current Fiscal Year End Date | --12-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 15, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 277,064 | $ 269,282 |
Receivables, net | 793,772 | 698,613 |
Inventories | 5,067,467 | 4,915,262 |
Other current assets | 188,169 | 163,695 |
Total current assets | 6,326,472 | 6,046,852 |
Property and equipment, net of accumulated depreciation of $2,735,674 and $2,590,382 | 1,688,891 | 1,690,139 |
Operating lease right-of-use assets | 2,618,822 | 2,607,690 |
Goodwill | 991,871 | 990,471 |
Other intangible assets, net | 606,450 | 620,901 |
Other assets | 71,870 | 62,429 |
Total assets | 12,304,376 | 12,018,482 |
Current liabilities: | ||
Accounts payable | 3,780,215 | 4,123,462 |
Accrued expenses | 685,191 | 634,447 |
Current portion of long-term debt | 95,000 | 185,000 |
Other current liabilities | 465,972 | 427,480 |
Total current liabilities | 5,026,378 | 5,370,389 |
Long-term debt | 1,785,074 | 1,188,283 |
Noncurrent operating lease liabilities | 2,249,994 | 2,278,318 |
Deferred income taxes | 432,680 | 415,997 |
Other long-term liabilities | 87,063 | 87,214 |
Total Liabilities | 9,581,189 | 9,340,201 |
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 | 925,411 | 897,560 |
Treasury stock, at cost | (2,932,576) | (2,918,768) |
Accumulated other comprehensive loss | (36,824) | (45,143) |
Retained earnings | 4,767,168 | 4,744,624 |
Total stockholders’ equity | 2,723,187 | 2,678,281 |
Total liabilities and stockholders’ equity | $ 12,304,376 | $ 12,018,482 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jul. 15, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 2,735,674 | $ 2,590,382 |
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 | 6 Months Ended | ||
Jul. 15, 2023 | Jul. 16, 2022 | Jul. 15, 2023 | Jul. 16, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,686,066 | $ 2,665,426 | $ 6,103,659 | $ 6,039,636 |
Cost of sales, including purchasing and warehousing costs | 1,537,997 | 1,479,707 | 3,484,927 | 3,347,397 |
Gross profit | 1,148,069 | 1,185,719 | 2,618,732 | 2,692,239 |
Selling, general and administrative expenses | 1,013,701 | 984,037 | 2,394,365 | 2,287,287 |
Operating income | 134,368 | 201,682 | 224,367 | 404,952 |
Other, net: | ||||
Interest expense | (20,869) | (10,207) | (50,587) | (23,075) |
Loss on early redemption of senior unsecured notes | 0 | 0 | 0 | (7,408) |
Other (expense) income, net | 1,684 | (711) | 1,009 | (575) |
Total other, net | (19,185) | (10,918) | (49,578) | (31,058) |
Income before provision for income taxes | 115,183 | 190,764 | 174,789 | 373,894 |
Provision for income taxes | 29,821 | 46,362 | 46,776 | 89,701 |
Net income | $ 85,362 | $ 144,402 | $ 128,013 | $ 284,193 |
Basic earnings per common share (in dollars per share) | $ 1.44 | $ 2.39 | $ 2.16 | $ 4.67 |
Weighted Average Number of Shares Issued, Basic | 59,384 | |||
Weighted-average common shares outstanding | 59,451 | 60,452 | 59,384 | 60,914 |
Diluted earnings per common share (in dollars per share) | $ 1.43 | $ 2.38 | $ 2.15 | $ 4.63 |
Weighted-average common shares outstanding | 59,604 | 60,782 | 59,570 | 61,328 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 15, 2023 | Jul. 16, 2022 | Jul. 15, 2023 | Jul. 16, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 85,362 | $ 144,402 | $ 128,013 | $ 284,193 |
Other comprehensive (loss) income: | ||||
Changes in net unrecognized other postretirement benefits, net of tax (benefit) expense of $(14), $25, $56 and $16 | (38) | (70) | 159 | (46) |
Currency translation adjustments | 7,569 | 20,346 | 8,160 | 1,884 |
Total other comprehensive (loss) income | 7,531 | 20,276 | 8,319 | 1,838 |
Comprehensive income | $ 92,893 | $ 164,678 | $ 136,332 | $ 286,031 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 15, 2023 | Jul. 16, 2022 | Jul. 15, 2023 | Jul. 16, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Changes in net unrecognized other postretirment benefits, net of tax | $ (14) | $ 25 | $ 56 | $ 16 |
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. 01, 2022 | 62,009 | |||||
Balance at Jan. 01, 2022 | $ 3,128,291 | $ 8 | $ 845,407 | $ (2,300,288) | $ (22,627) | $ 4,605,791 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 284,193 | 284,193 | ||||
Total other comprehensive income (loss) | 1,838 | 1,838 | ||||
Issuance of shares upon the exercise of stock options (in shares) | 2 | |||||
Issuance of shares upon the exercise of stock options | 354 | 354 | ||||
Restricted stock and deferred stock units vested (in shares) | 259 | |||||
Share-based compensation | 29,345 | 29,345 | ||||
Stock issued under employee stock purchase plan (in shares) | 18 | |||||
Stock issued under employee stock purchase plan | 2,094 | |||||
Repurchases of common stock (in shares) | (2,170) | |||||
Repurchases of common stock | $ (466,169) | (466,169) | ||||
Common Stock, Dividends, Per Share, Declared | $ 3 | |||||
Cash dividends declared | $ (183,437) | (183,437) | ||||
Other | (1,700) | (1,700) | ||||
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 |
Balance (in shares) at Apr. 23, 2022 | 61,098 | |||||
Balance at Apr. 23, 2022 | 2,909,680 | 862,451 | (2,564,757) | (41,065) | 4,653,043 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 144,402 | 144,402 | ||||
Total other comprehensive income (loss) | 20,276 | 20,276 | ||||
Issuance of shares upon the exercise of stock options (in shares) | 1 | |||||
Issuance of shares upon the exercise of stock options | 121 | 121 | ||||
Restricted stock and deferred stock units vested (in shares) | 25 | |||||
Share-based compensation | 12,367 | 12,367 | ||||
Stock issued under employee stock purchase plan (in shares) | 8 | |||||
Stock issued under employee stock purchase plan | 1,161 | 1,161 | ||||
Repurchases of common stock (in shares) | (1,014) | |||||
Repurchases of common stock | $ (201,700) | (201,700) | ||||
Common Stock, Dividends, Per Share, Declared | $ 1.50 | |||||
Cash dividends declared | $ (90,898) | (90,898) | ||||
Other | (600) | (600) | ||||
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 |
Balance (in shares) at Dec. 31, 2022 | 59,264 | |||||
Balance at Dec. 31, 2022 | 2,678,281 | $ 8 | 897,560 | (2,918,768) | (45,143) | 4,744,624 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 128,013 | 128,013 | ||||
Total other comprehensive income (loss) | 8,319 | 8,319 | ||||
Issuance of shares upon the exercise of stock options | 62 | |||||
Restricted stock and deferred stock units vested (in shares) | 276 | |||||
Share-based compensation | 26,791 | 26,791 | ||||
Stock issued under employee stock purchase plan (in shares) | 18 | |||||
Stock issued under employee stock purchase plan | $ 1,998 | 1,998 | ||||
Repurchases of common stock (in shares) | 0 | 101 | ||||
Repurchases of common stock | $ (13,808) | 13,808 | ||||
Common Stock, Dividends, Per Share, Declared | $ 1.75 | |||||
Cash dividends declared | $ (105,469) | 105,469 | ||||
Other | (1,000) | (1,000) | ||||
Balance (in shares) at Jul. 15, 2023 | 59,457 | |||||
Balance at Jul. 15, 2023 | 2,723,187 | $ 8 | 925,411 | (2,932,576) | (36,824) | 4,767,168 |
Balance (in shares) at Apr. 22, 2023 | 59,444 | |||||
Balance at Apr. 22, 2023 | 2,636,161 | $ 8 | 914,184 | (2,931,373) | (44,355) | 4,697,697 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 85,362 | 85,362 | ||||
Total other comprehensive income (loss) | 7,531 | 7,531 | ||||
Issuance of shares upon the exercise of stock options | 62 | 62 | ||||
Restricted stock and deferred stock units vested (in shares) | 20 | |||||
Share-based compensation | 10,267 | 10,267 | ||||
Stock issued under employee stock purchase plan (in shares) | 0 | |||||
Stock issued under employee stock purchase plan | 898 | 898 | ||||
Repurchases of common stock (in shares) | 7 | |||||
Repurchases of common stock | $ (1,203) | 1,203 | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.25 | |||||
Cash dividends declared | $ (15,891) | 15,891 | ||||
Balance (in shares) at Jul. 15, 2023 | 59,457 | |||||
Balance at Jul. 15, 2023 | $ 2,723,187 | $ 8 | $ 925,411 | $ (2,932,576) | $ (36,824) | $ 4,767,168 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 15, 2023 | Jul. 16, 2022 | Jul. 15, 2023 | Jul. 16, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (per common share) | $ 0.25 | $ 1.50 | $ 1.75 | $ 3 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 15, 2023 | Jul. 16, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 128,013 | $ 284,193 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 162,974 | 148,691 |
Share-based compensation | 26,791 | 29,345 |
Loss and impairment of long-lived assets | 859 | 2,970 |
Loss on early redemption of senior unsecured notes | 0 | 7,408 |
Provision for deferred income taxes | 16,249 | 8,779 |
Other | 1,170 | 1,575 |
Net change in: | ||
Receivables, net | (93,539) | (149,255) |
Inventories | (145,148) | (176,300) |
Accounts payable | (346,808) | 168,219 |
Accrued expenses | 120,888 | (46,887) |
Other assets and liabilities, net | (36,008) | 29,805 |
Net cash provided by operating activities | (164,559) | 308,543 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (144,874) | (211,212) |
Proceeds from sales of property and equipment | 1,532 | 830 |
Net cash used in investing activities | (143,342) | (210,382) |
Cash flows from financing activities: | ||
Borrowings under credit facilities | 4,327,000 | 743,000 |
Payments on credit facilities | (4,417,000) | (643,000) |
Borrowings on senior unsecured notes | 599,571 | 348,618 |
Payments on senior unsecured notes | 0 | (201,081) |
Dividends paid | (179,347) | (245,599) |
Repurchases of common stock | (13,808) | (466,169) |
Other, net | (2,013) | (1,329) |
Net cash used in financing activities | 314,403 | (465,560) |
Effect of exchange rate changes on cash | 1,280 | 6,522 |
Net decrease in cash and cash equivalents | 7,782 | (360,877) |
Cash and cash equivalents, beginning of period | 269,282 | 601,428 |
Cash and cash equivalents, end of period | 277,064 | 240,551 |
Non-cash transactions: | ||
Accrued purchases of property and equipment | $ 10,177 | $ 19,628 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jul. 15, 2023 | |
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 July 15, 2023, we operated a total of 4,790 stores and 319 branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. In addition, as of July 15, 2023, we served 1,307 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. Basis of Presentation 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 2022 as filed with the SEC on February 28, 2023. The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the operating results to be expected for the full year. Our first quarter of the year contains sixteen weeks. Our remaining three quarters each consist of twelve weeks. Out-of-Period Charge The twenty-eight weeks ended July 15, 2023 included an out-of-period charge of $17.3 million, reflected in Selling, general and administrative (“SG&A”) expenses, and related tax benefit of $4.3 million in the Condensed Consolidated Statement of Operations, related to costs incurred in prior years but not previously expensed. The out-of-period charge, which was originally disclosed in our interim report on Form 10-Q for the period ended April 22, 2023, was not material to the current period or any previously issued financial statements. |
Significant Acounting Policies
Significant Acounting Policies | 6 Months Ended |
Jul. 15, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Revenues The following table summarizes disaggregated revenue from contracts with customers by product group: Twelve Weeks Ended Twenty-Eight Weeks Ended July 15, 2023 July 16, 2022 July 15, 2023 July 16, 2022 Percentage of Sales: Parts and Batteries 66 % 65 % 66 % 66 % Accessories and Chemicals 20 21 20 21 Engine Maintenance 13 13 13 12 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % Recently Issued Accounting Pronouncements - Adopted Supplier Finance Programs In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations (“ASU 2022-04”), which requires a buyer in a supplier finance program to disclose sufficient information about the program, enabling users of the financial statements to understand the nature of the program and activity and changes during the period. ASU 2022-04 was effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the requirement on rollforward information, which is effective for fiscal years beginning after December 15, 2023. During the first quarter 2023, we adopted ASU 2022-04, which did not have a material impact on our consolidated financial position, results of operations and cash flows. Refer to Note 11. Supplier Finance Programs for further details. |
Receivables, net
Receivables, net | 6 Months Ended |
Jul. 15, 2023 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net Receivables, net, consisted of the following: July 15, 2023 December 31, 2022 Trade $ 622,623 $ 576,548 Vendor 175,336 126,640 Other 13,904 10,638 Total receivables 811,863 713,826 Less: allowance for credit losses (18,091) (15,213) Receivables, net $ 793,772 $ 698,613 |
Long-term Debt and Fair Value o
Long-term Debt and Fair Value of Financial Instruments | 6 Months Ended |
Jul. 15, 2023 | |
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: July 15, 2023 December 31, 2022 5.90% Senior Unsecured Notes due March 9, 2026 $ 298,028 $ — 1.75% Senior Unsecured Notes due October 1, 2027 347,252 346,947 5.95% Senior Unsecured Notes due March 9, 2028 297,906 — 3.90% Senior Unsecured Notes due April 15, 2030 495,878 495,562 3.50% Senior Unsecured Notes due March 15, 2032 346,010 345,774 Revolver credit facility 95,000 185,000 $ 1,880,074 $ 1,373,283 Less: Current portion of long-term debt (95,000) (185,000) Long-term debt, excluding the current portion $ 1,785,074 $ 1,188,283 Fair value of long-term debt $ 1,706,403 $ 1,021,396 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 On February 27, 2023, we entered into Amendment No. 1 (the “Amendment No. 1”) to the Credit Agreement dated November 9, 2021, with Advance Auto Parts, Inc., as Borrower, Advance Stores Company, Incorporated, as a Guarantor, the lenders party thereto, and Bank of America, N.A., as administrative agent (the “2021 Credit Agreement”). Amendment No. 1 extended the maturity date of the 2021 Credit Agreement by one year from November 9, 2026, to November 9, 2027 and replaced an adjusted LIBOR benchmark rate with a term secured overnight financing rate benchmark rate, as adjusted by an increase of ten basis points, plus the applicable margin under the 2021 Credit Agreement. Amendment No.1 made no other material changes to the terms of the 2021 Credit Agreement. On August 21, 2023, we entered into Amendment No. 2 (“Amendment No. 2”) to the 2021 Credit Agreement in order to amend certain financial covenants related to the Consolidated Coverage Ratio (as defined therein). Pursuant to Amendment No. 2, we will not permit the Consolidated Coverage Ratio for each period of four fiscal quarters to be less than (a) 1.75 to 1.00 for quarters ending on October 7, 2023 and December 30, 2023, (b) 2.0 to 1.00 for quarters ending on April 20, 2024 through and including the quarters ending on October 4, 2025 and (c) 2.25 to 1.00 for quarters ending after October 4, 2025. Amendment No. 2 made no other material changes to the terms of the 2021 Credit Agreement. As of July 15, 2023, we had $95.0 million of outstanding borrowings, $1.1 billion of borrowing availability and no letters of credit outstanding under our unsecured revolving credit facility (the “Credit Agreement”). As of December 31, 2022, we had $185.0 million outstanding borrowings, $1.0 billion of borrowing availability and no letters of credit outstanding under our Credit Agreement. As of July 15, 2023 and December 31, 2022, we had $91.0 million and $90.2 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 July 15, 2023, and believe we will be in compliance for the next twelve months. Senior Unsecured Notes 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 3.50% senior unsecured notes due 2032 (the “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. Our 5.90% senior unsecured notes due March 9, 2026 (the “2026 Notes”) were issued March 9, 2023, at 99.94% of the principal amount of $300.0 million. The 2026 Notes bear interest, payable semi-annually in arrears on March 9 and September 9, at a rate of 5.90% per year. In connection with the 2026 Notes offering, we incurred $1.6 million of debt issuance costs. Our 5.95% senior unsecured notes due March 9, 2028 (the “2028 Notes”) were issued March 9, 2023, at 99.92% of the principal amount of $300.0 million. The 2028 Notes bear interest, payable semi-annually in arrears on March 9 and September 9, at a rate of 5.95% per year. In connection with the 2028 Notes offering, we incurred $1.7 million of debt issuance costs. We may redeem some or all of our 2026 Notes and 2028 Notes (the “Notes”) at any time, or from time to time, prior to March 9, 2026 in the case of our 2026 Notes, or February 9, 2028 in the case of our 2028 Notes, at the redemption price described in the related indenture for the Notes (the “Indenture”). In the event of a change of control triggering event, as defined in the Indenture, we will be required to offer the repurchase of the Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase date. Currently, the 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 $106.1 million and $96.9 million as of July 15, 2023 and December 31, 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 $219.4 million and $174.6 million as of July 15, 2023 and December 31, 2022. We believe that the likelihood of performance under these guarantees is remote. |
Leases
Leases | 6 Months Ended |
Jul. 15, 2023 | |
Leases [Abstract] | |
Leases | LeasesSubstantially all of our leases are for facilities and vehicles. The initial term for facilities is typically five three 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 Twenty-Eight Weeks Ended July 15, 2023 July 16, 2022 July 15, 2023 July 16, 2022 Operating lease cost $ 130,931 $ 130,003 $ 304,590 $ 303,038 Variable lease cost 41,087 41,977 92,433 95,273 Total lease cost $ 172,018 $ 171,980 $ 397,023 $ 398,311 Other information relating to our lease liabilities is as follows: Twenty-Eight Weeks Ended July 15, 2023 July 16, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 298,175 $ 336,143 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 271,182 $ 254,013 |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jul. 15, 2023 | |
Stock Repurchases: [Abstract] | |
Share Repurchase Program | Share Repurchase Program Our Board of Directors had previously authorized $2.7 billion to our share repurchase program. Our share repurchase program permits the repurchase of our common stock on the open market and in privately negotiated transactions from time to time. During the twelve weeks ended and twenty-eight weeks ended July 15, 2023, we purchased no shares of our common stock under our share repurchase program. During the twelve weeks ended July 16, 2022, we repurchased 1.0 million shares at an aggregate cost of $200.0 million, or an average price of $199.02 per share. During the twenty-eight weeks ended July 16, 2022, we repurchased 2.1 million shares of our common stock under our share repurchase program at an aggregate cost of $448.2 million, or an average price of $215.74 per share. We had $947.3 million remaining under our share repurchase program as of July 15, 2023. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jul. 15, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The computations of basic and diluted earnings per share were as follows: Twelve Weeks Ended Twenty-Eight Weeks Ended July 15, 2023 July 16, 2022 July 15, 2023 July 16, 2022 Numerator Net income applicable to common shares $ 85,362 $ 144,402 $ 128,013 $ 284,193 Denominator Basic weighted-average common shares 59,451 60,452 59,384 60,914 Dilutive impact of share-based awards 153 330 186 414 Diluted weighted-average common shares (1) 59,604 60,782 59,570 61,328 Basic earnings per common share $ 1.44 $ 2.39 $ 2.16 $ 4.67 Diluted earnings per common share $ 1.43 $ 2.38 $ 2.15 $ 4.63 (1) For the twelve weeks ended July 15, 2023 and July 16, 2022, 402 thousand and 169 thousand restricted stock units (“RSUs”) were excluded from the diluted calculation as their inclusion would have been anti-dilutive. For the twenty-eight weeks ended July 15, 2023 and July 16, 2022, 289 thousand and 33 thousand RSUs were excluded from the diluted calculation as their inclusion would have been anti-dilutive. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 15, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the twenty-eight weeks ended July 15, 2023, we granted 414 thousand time-based RSUs, 22 thousand performance-based RSUs, 73 thousand market-based RSUs and 148 thousand stock options. The general terms of the time-based and market-based RSUs are similar to awards previously granted by us. The performance-based RSUs granted may vest following a one-year period subject to the achievement of certain financial goals and employment service as specified in the grant agreement. We grant options to purchase common stock to certain employees under our 2014 Long-Term Incentive Plan. Our 2014 Long-Term Incentive Plan was recently replaced by our 2023 Omnibus Incentive Compensation Plan, and future option grants will be granted under the 2023 Omnibus Incentive Compensation Plan. The general terms of the stock options will be 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, performance-based and market-based RSUs granted during the twenty-eight weeks ended July 15, 2023 were $105.95, $135.13 and $205.52 per share. The fair value of each market-based RSU was determined using a Monte Carlo simulation model. For time-based and performance-based RSUs, the fair value of each award was determined based on the market price of our stock on the date of grant adjusted for expected dividends during the vesting period, as applicable. The total income tax benefit related to share-based compensation expense for the twenty-eight weeks ended July 15, 2023 was $6.5 million. As of July 15, 2023, there was $88.3 million of unrecognized compensation expense related to all share-based awards that is expected to be recognized over a weighted-average period of 1.6 years. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 15, 2023 | Jul. 16, 2022 | Jul. 15, 2023 | Jul. 16, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 85,362 | $ 144,402 | $ 128,013 | $ 284,193 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 15, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Significant Acounting Policies
Significant Acounting Policies (Policies) | 6 Months Ended |
Jul. 15, 2023 | |
Accounting Policies [Abstract] | |
Inventories | Inventories, net, are stated at the lower of cost or market. |
Recently Issued Accounting Pronouncements - Adopted | program and activity and changes during the period. ASU 2022-04 was effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the requirement on rollforward information, which is effective for fiscal years beginning after December 15, 2023. During the first quarter 2023, we adopted ASU 2022-04, which did not have a material impact on our consolidated financial position, results of operations and cash flows. Refer to Note 11. Supplier Finance Programs for further details. |
Leases | 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 and performance-based RSUs, the fair value of each award was determined based on the market price of our stock on the date of grant adjusted for expected dividends during the vesting period, as applicable. |
Significant Acounting Policie_2
Significant Acounting Policies (Tables) | 6 Months Ended |
Jul. 15, 2023 | |
Accounting Policies [Abstract] | |
Revenue from External Customers by Products and Services | The following table summarizes disaggregated revenue from contracts with customers by product group: Twelve Weeks Ended Twenty-Eight Weeks Ended July 15, 2023 July 16, 2022 July 15, 2023 July 16, 2022 Percentage of Sales: Parts and Batteries 66 % 65 % 66 % 66 % Accessories and Chemicals 20 21 20 21 Engine Maintenance 13 13 13 12 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 15, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory balances were as follows: July 15, 2023 December 31, 2022 Inventories at first in, first out (“FIFO”), net $ 5,312,651 $ 5,193,911 Adjustments to state inventories at LIFO (245,184) (278,649) Inventories at LIFO, net $ 5,067,467 $ 4,915,262 |
Receivables, net (Tables)
Receivables, net (Tables) | 6 Months Ended |
Jul. 15, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Receivables, net, consisted of the following: July 15, 2023 December 31, 2022 Trade $ 622,623 $ 576,548 Vendor 175,336 126,640 Other 13,904 10,638 Total receivables 811,863 713,826 Less: allowance for credit losses (18,091) (15,213) Receivables, net $ 793,772 $ 698,613 |
Long-term Debt and Fair Value_2
Long-term Debt and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jul. 15, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consists of the following: July 15, 2023 December 31, 2022 5.90% Senior Unsecured Notes due March 9, 2026 $ 298,028 $ — 1.75% Senior Unsecured Notes due October 1, 2027 347,252 346,947 5.95% Senior Unsecured Notes due March 9, 2028 297,906 — 3.90% Senior Unsecured Notes due April 15, 2030 495,878 495,562 3.50% Senior Unsecured Notes due March 15, 2032 346,010 345,774 Revolver credit facility 95,000 185,000 $ 1,880,074 $ 1,373,283 Less: Current portion of long-term debt (95,000) (185,000) Long-term debt, excluding the current portion $ 1,785,074 $ 1,188,283 Fair value of long-term debt $ 1,706,403 $ 1,021,396 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 15, 2023 | |
Leases [Abstract] | |
Lease, Cost | Total lease cost was comprised of the following: Twelve Weeks Ended Twenty-Eight Weeks Ended July 15, 2023 July 16, 2022 July 15, 2023 July 16, 2022 Operating lease cost $ 130,931 $ 130,003 $ 304,590 $ 303,038 Variable lease cost 41,087 41,977 92,433 95,273 Total lease cost $ 172,018 $ 171,980 $ 397,023 $ 398,311 |
Schedule of Other Information Relating to Lease Liabilities | Other information relating to our lease liabilities is as follows: Twenty-Eight Weeks Ended July 15, 2023 July 16, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 298,175 $ 336,143 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 271,182 $ 254,013 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 15, 2023 USD ($) store | Jul. 16, 2022 USD ($) | Jul. 15, 2023 USD ($) store | Jul. 16, 2022 USD ($) | |
Basis of Presentation [Line Items] | ||||
Selling, general and administrative expenses | $ 1,013,701,000 | $ 984,037,000 | $ 2,394,365,000 | $ 2,287,287,000 |
Provision for income taxes | $ 29,821,000 | $ 46,362,000 | 46,776,000 | $ 89,701,000 |
Revision of Prior Period, Adjustment | ||||
Basis of Presentation [Line Items] | ||||
Selling, general and administrative expenses | 17.3 | |||
Provision for income taxes | $ 4.3 | |||
Stores [Member] | ||||
Basis of Presentation [Line Items] | ||||
Number of Stores | store | 4,790 | 4,790 | ||
Branches [Member] | ||||
Basis of Presentation [Line Items] | ||||
Number of Stores | store | 319 | 319 | ||
Independently owned Carquest store locations [Member] | ||||
Basis of Presentation [Line Items] | ||||
Number of Stores | store | 1,307 | 1,307 |
Significant Acounting Policie_3
Significant Acounting Policies (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 15, 2023 | Jul. 16, 2022 | Jul. 15, 2023 | Jul. 16, 2022 | |
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 | 66% | 65% | 66% | 66% |
Accessories and Chemicals [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 20% | 21% | 20% | 21% |
Engine Maintenance [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 13% | 13% | 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 | 6 Months Ended | |||
Jul. 15, 2023 | Jul. 16, 2022 | Jul. 15, 2023 | Jul. 16, 2022 | Dec. 31, 2022 | |
Inventory [Line Items] | |||||
Percentage of LIFO Inventory | 91.90% | 91.90% | 92.20% | ||
Inventory, LIFO Reserve, Effect on Income, Net | $ (26,800) | $ 91,800 | $ (33,500) | $ 173,300 | |
Inventories at first in, first out (“FIFO”) | 5,312,651 | 5,312,651 | $ 5,193,911 | ||
Adjustments to state inventories at LIFO | (245,184) | (245,184) | (278,649) | ||
Inventories at LIFO | $ 5,067,467 | $ 5,067,467 | $ 4,915,262 | ||
Document Period End Date | Jul. 15, 2023 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 15, 2023 | Jul. 16, 2022 | Jul. 15, 2023 | Jul. 16, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 6,800 | $ 7,100 | $ 16,000 | $ 16,600 |
Receivables, net (Details)
Receivables, net (Details) - USD ($) $ in Thousands | Jul. 15, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 811,863 | $ 713,826 |
Less: Allowance for doubtful accounts | (18,091) | (15,213) |
Receivables, net | 793,772 | 698,613 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 622,623 | 576,548 |
Accounts Receivable, Vendor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 175,336 | 126,640 |
Accounts Receivable, Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 13,904 | $ 10,638 |
Long-term Debt and Fair Value_3
Long-term Debt and Fair Value of Financial Instruments (Details) - USD ($) | 6 Months Ended | ||||||
Feb. 27, 2023 | Jul. 15, 2023 | Mar. 09, 2023 | Dec. 31, 2022 | Mar. 04, 2022 | Sep. 29, 2020 | Apr. 16, 2020 | |
Debt Instrument [Line Items] | |||||||
Basis spread | 0.10% | ||||||
Fair value of long-term debt | $ 1,706,403,000 | $ 1,021,396,000 | |||||
Guarantor Obligations, Maximum Exposure | 106,100,000 | 96,900,000 | |||||
Guarantor Obligation, Collateral Amount | 219,400,000 | 174,600,000 | |||||
Long-term debt | 1,785,074,000 | 1,188,283,000 | |||||
Debt, Long-term and Short-term, Combined Amount | 1,880,074,000 | 1,373,283,000 | |||||
Long-term Debt, Current Maturities | $ (95,000,000) | (185,000,000) | |||||
Document Period End Date | Jul. 15, 2023 | ||||||
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: July 15, 2023 December 31, 2022 5.90% Senior Unsecured Notes due March 9, 2026 $ 298,028 $ — 1.75% Senior Unsecured Notes due October 1, 2027 347,252 346,947 5.95% Senior Unsecured Notes due March 9, 2028 297,906 — 3.90% Senior Unsecured Notes due April 15, 2030 495,878 495,562 3.50% Senior Unsecured Notes due March 15, 2032 346,010 345,774 Revolver credit facility 95,000 185,000 $ 1,880,074 $ 1,373,283 Less: Current portion of long-term debt (95,000) (185,000) Long-term debt, excluding the current portion $ 1,785,074 $ 1,188,283 Fair value of long-term debt $ 1,706,403 $ 1,021,396 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 On February 27, 2023, we entered into Amendment No. 1 (the “Amendment No. 1”) to the Credit Agreement dated November 9, 2021, with Advance Auto Parts, Inc., as Borrower, Advance Stores Company, Incorporated, as a Guarantor, the lenders party thereto, and Bank of America, N.A., as administrative agent (the “2021 Credit Agreement”). Amendment No. 1 extended the maturity date of the 2021 Credit Agreement by one year from November 9, 2026, to November 9, 2027 and replaced an adjusted LIBOR benchmark rate with a term secured overnight financing rate benchmark rate, as adjusted by an increase of ten basis points, plus the applicable margin under the 2021 Credit Agreement. Amendment No.1 made no other material changes to the terms of the 2021 Credit Agreement. On August 21, 2023, we entered into Amendment No. 2 (“Amendment No. 2”) to the 2021 Credit Agreement in order to amend certain financial covenants related to the Consolidated Coverage Ratio (as defined therein). Pursuant to Amendment No. 2, we will not permit the Consolidated Coverage Ratio for each period of four fiscal quarters to be less than (a) 1.75 to 1.00 for quarters ending on October 7, 2023 and December 30, 2023, (b) 2.0 to 1.00 for quarters ending on April 20, 2024 through and including the quarters ending on October 4, 2025 and (c) 2.25 to 1.00 for quarters ending after October 4, 2025. Amendment No. 2 made no other material changes to the terms of the 2021 Credit Agreement. As of July 15, 2023, we had $95.0 million of outstanding borrowings, $1.1 billion of borrowing availability and no letters of credit outstanding under our unsecured revolving credit facility (the “Credit Agreement”). As of December 31, 2022, we had $185.0 million outstanding borrowings, $1.0 billion of borrowing availability and no letters of credit outstanding under our Credit Agreement. As of July 15, 2023 and December 31, 2022, we had $91.0 million and $90.2 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 July 15, 2023, and believe we will be in compliance for the next twelve months. Senior Unsecured Notes 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 3.50% senior unsecured notes due 2032 (the “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. Our 5.90% senior unsecured notes due March 9, 2026 (the “2026 Notes”) were issued March 9, 2023, at 99.94% of the principal amount of $300.0 million. The 2026 Notes bear interest, payable semi-annually in arrears on March 9 and September 9, at a rate of 5.90% per year. In connection with the 2026 Notes offering, we incurred $1.6 million of debt issuance costs. Our 5.95% senior unsecured notes due March 9, 2028 (the “2028 Notes”) were issued March 9, 2023, at 99.92% of the principal amount of $300.0 million. The 2028 Notes bear interest, payable semi-annually in arrears on March 9 and September 9, at a rate of 5.95% per year. In connection with the 2028 Notes offering, we incurred $1.7 million of debt issuance costs. We may redeem some or all of our 2026 Notes and 2028 Notes (the “Notes”) at any time, or from time to time, prior to March 9, 2026 in the case of our 2026 Notes, or February 9, 2028 in the case of our 2028 Notes, at the redemption price described in the related indenture for the Notes (the “Indenture”). In the event of a change of control triggering event, as defined in the Indenture, we will be required to offer the repurchase of the Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase date. Currently, the 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 $106.1 million and $96.9 million as of July 15, 2023 and December 31, 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 $219.4 million and $174.6 million as of July 15, 2023 and December 31, 2022. We believe that the likelihood of performance under these guarantees is remote. | ||||||
5.95% senior unsecured notes (2028 Notes) | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 300,000,000 | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Letters of Credit Outstanding, Amount | $ 0 | 0 | |||||
Debt, Long-term and Short-term, Combined Amount | 95,000,000 | 185,000,000 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | 1,100,000,000 | 1,000,000,000 | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | 95,000,000 | ||||||
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 | $ 2,900,000 | ||||||
Debt Instrument, Face Amount | $ 350,000,000 | ||||||
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 | $ 500,000,000 | ||||||
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 | $ 3,200,000 | ||||||
Debt Instrument, Face Amount | $ 350,000,000 | ||||||
5.90% senior unsecured notes (2026 Notes) | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.90% | ||||||
Debt Issuance, Percentage Of Principal | 99.94% | ||||||
Debt Issuance Costs, Gross | $ 1,600,000 | ||||||
Debt Instrument, Face Amount | $ 300,000,000 | ||||||
5.95% senior unsecured notes (2028 Notes) | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | ||||||
Debt Issuance, Percentage Of Principal | 99.92% | ||||||
Debt Issuance Costs, Gross | $ 1,700,000 | ||||||
Bilateral Letter of Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Letters of Credit Outstanding, Amount | $ 91,000,000 | 90,200,000 | |||||
Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Redemption Price, Percentage | 101% | ||||||
Senior Notes [Member] | 1.75% senior unsecured notes (2027 Notes) | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | ||||||
Long-term debt | $ 347,252,000 | 346,947,000 | |||||
Senior Notes [Member] | 3.90% senior unsecured notes (2030 Notes) | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | ||||||
Long-term debt | $ 495,878,000 | 495,562,000 | |||||
Senior Notes [Member] | 3.50% senior unsecured notes (2032 Notes) | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | ||||||
Long-term debt | $ 346,010,000 | $ 345,774,000 | |||||
Senior Notes [Member] | 5.90% senior unsecured notes (2026 Notes) | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.90% | ||||||
Long-term debt | $ 298,028,000 | ||||||
Senior Notes [Member] | 5.95% senior unsecured notes (2028 Notes) | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | ||||||
Long-term debt | $ 297,906,000 |
Supplier Finance Programs
Supplier Finance Programs - USD ($) | 3 Months Ended | 4 Months Ended | 6 Months Ended |
Jul. 15, 2023 | Apr. 22, 2023 | Jul. 15, 2023 | |
Supplier Finance Program [Line Items] | |||
Document Period End Date | Jul. 15, 2023 | ||
Payments to Suppliers | $ 3,100,000,000 | $ 3,200,000,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 15, 2023 | Jul. 16, 2022 | Jul. 15, 2023 | Jul. 16, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 130,931 | $ 130,003 | $ 304,590 | $ 303,038 |
Variable lease cost | 41,087 | 41,977 | 92,433 | 95,273 |
Total lease cost | $ 172,018 | $ 171,980 | 397,023 | 398,311 |
Cash paid for amounts included in the measurement of lease liabilities: | 298,175 | 336,143 | ||
Right-of-use assets obtained in exchange for lease obligations: | $ 271,182 | $ 254,013 | ||
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 | 6 Months Ended | |
Jul. 16, 2022 | Jul. 15, 2023 | Jul. 16, 2022 | |
Stock Repurchases: [Abstract] | |||
Stock Repurchase Program, Authorized Amount | $ 2,700 | ||
Treasury Stock, Shares, Acquired as Part of Authorized Plan | 1,000 | 2,100 | |
Payments for Repurchase of Common Stock | $ 200 | $ 448.2 | |
Acquired, Average Cost Per Share, Acquired as Part of Plan | $ 199.02 | $ 215.74 | |
Share Repurchase Program, Remaining Authorized Repurchase Amount | $ 947.3 | ||
Treasury Stock, Shares, Acquired | 0 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 15, 2023 | Jul. 16, 2022 | Jul. 15, 2023 | Jul. 16, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 85,362 | $ 144,402 | $ 128,013 | $ 284,193 |
Basic weighted-average common shares (in shares) | 59,451 | 60,452 | 59,384 | 60,914 |
Dilutive impact of share-based awards (in shares) | 153 | 330 | 186 | 414 |
Diluted weighted-average common shares (in shares) | 59,604 | 60,782 | 59,570 | 61,328 |
Basic earnings per common share (in dollars per share) | $ 1.44 | $ 2.39 | $ 2.16 | $ 4.67 |
Diluted earnings per common share (in dollars per share) | $ 1.43 | $ 2.38 | $ 2.15 | $ 4.63 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net Income (Loss) Attributable to Parent | $ 85,362 | $ 144,402 | $ 128,013 | $ 284,193 |
Weighted-average common shares outstanding | 59,451 | 60,452 | 59,384 | 60,914 |
Dilutive impact of share-based awards (in shares) | 153 | 330 | 186 | 414 |
Weighted-average common shares outstanding | 59,604 | 60,782 | 59,570 | 61,328 |
Basic earnings per common share (in dollars per share) | $ 1.44 | $ 2.39 | $ 2.16 | $ 4.67 |
Earnings Per Share, Diluted | $ 1.43 | $ 2.38 | $ 2.15 | $ 4.63 |
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) | 402 | 169 | 289 | 33 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended |
Jul. 15, 2023 USD ($) $ / shares shares | Jul. 15, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted (in shares) | 148 | |
Tax benefit from compensation expense | $ | $ 6.5 | |
Unrecognized compensation expense | $ | $ 88.3 | $ 88.3 |
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) | 414 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 105.95 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period (in shares) | 22 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 135.13 | |
Market-based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period (in shares) | 73 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 205.52 |