Cover Page
Cover Page - shares | 6 Months Ended | |
Jul. 13, 2024 | Aug. 16, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 13, 2024 | |
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 | 59,674,284 | |
Entity Central Index Key | 0001158449 | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Contingencies
Contingencies | 6 Months Ended |
Jul. 13, 2024 | |
Notes to Financial Statements [Abstract] | |
Legal Matters and Contingencies | 13. Contingencies On October 9, 2023, and October 27, 2023, two putative class actions on behalf of purchasers of the Company’s securities who purchased or otherwise acquired their securities between November 16, 2022, and May 30, 2023, inclusive (the “Class Period”), were commenced against the Company and certain of the Company’s former officers in the United States District Court for the Eastern District of North Carolina. The plaintiffs allege that the defendants made certain false and materially misleading statements during the alleged Class Period in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. These cases were consolidated on February 9, 2024, and the court-appointed lead plaintiff filed a consolidated and amended complaint on April 22, 2024. The consolidated and amended complaint proposes a Class Period of November 16, 2022 to November 15, 2023, and alleges that defendants made false and misleading statements in connection with (a) the Company’s 2023 guidance and (b) certain accounting issues previously disclosed by the Company. On June 21, 2024, defendants filed a motion to dismiss the consolidated and amended complaint. The Company strongly disputes the allegations and intends to defend the case vigorously. On January 17, 2024, February 20, 2024, and February 26, 2024, derivative shareholder complaints were commenced against the Company’s directors and certain former officers alleging derivative liability for the allegations made in the securities class action complaints noted above. On April 9, 2024, the court consolidated these actions and appointed co-lead counsel. On June 10, 2024, the court issued a stay order on the consolidated derivative complaint pending resolution of the motion to dismiss for the underlying securities class action complaint. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 13, 2024 | Dec. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 479,418 | $ 503,471 |
Receivables, net | 847,609 | 800,141 |
Inventories | 4,903,490 | 4,857,702 |
Other current assets | 229,623 | 215,707 |
Total current assets | 6,460,140 | 6,377,021 |
Property and equipment, net of accumulated depreciation of $2,996,092 and $2,857,726 | 1,579,886 | 1,648,546 |
Operating lease right-of-use assets | 2,596,201 | 2,578,776 |
Goodwill | 990,266 | 991,743 |
Other intangible assets, net | 577,275 | 593,341 |
Other assets | 86,038 | 86,899 |
Total assets | 12,289,806 | 12,276,326 |
Current liabilities: | ||
Accounts payable | 4,048,321 | 4,177,974 |
Accrued expenses | 694,970 | 671,237 |
Current portion of long-term debt | 0 | 0 |
Other current liabilities | 513,483 | 458,194 |
Total current liabilities | 5,256,774 | 5,307,405 |
Long-term debt | 1,787,867 | 1,786,361 |
Noncurrent operating lease liabilities | 2,177,074 | 2,215,766 |
Deferred income taxes | 375,658 | 362,542 |
Other long-term liabilities | 85,681 | 84,524 |
Total Liabilities | 9,683,054 | 9,756,598 |
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 | 975,540 | 946,099 |
Treasury stock, at cost | (2,937,903) | (2,933,286) |
Accumulated other comprehensive loss | (44,531) | (52,232) |
Retained earnings | 4,613,638 | 4,559,139 |
Total stockholders’ equity | 2,606,752 | 2,519,728 |
Liabilities and Equity | $ 12,289,806 | $ 12,276,326 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jul. 13, 2024 | Dec. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 2,996,092 | $ 2,857,726 |
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. 13, 2024 | Jul. 15, 2023 | Jul. 13, 2024 | Jul. 15, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,683,053 | $ 2,686,066 | $ 6,089,307 | $ 6,103,659 |
Cost of sales, including purchasing and warehousing costs | 1,568,745 | 1,545,611 | 3,545,924 | 3,501,277 |
Gross profit | 1,114,308 | 1,140,455 | 2,543,383 | 2,602,382 |
Selling, general and administrative expenses | 1,042,557 | 1,014,495 | 2,385,610 | 2,378,484 |
Operating income | 71,751 | 125,960 | 157,773 | 223,898 |
Other, net: | ||||
Interest expense | (18,668) | (20,869) | (43,543) | (50,587) |
Other (expense) income, net | 9,011 | 1,684 | 7,720 | 1,009 |
Total other, net | (9,657) | (19,185) | (35,823) | (49,578) |
Income before provision for income taxes | 62,094 | 106,775 | 121,950 | 174,320 |
Provision for income taxes | 17,103 | 28,198 | 36,947 | 47,420 |
Net income | $ 44,991 | $ 78,577 | $ 85,003 | $ 126,900 |
Basic earnings per common share (in dollars per share) | $ 0.75 | $ 1.32 | $ 1.43 | $ 2.14 |
Weighted-average common shares outstanding | 59,633 | 59,451 | 59,590 | 59,384 |
Diluted earnings per common share (in dollars per share) | $ 0.75 | $ 1.32 | $ 1.42 | $ 2.13 |
Weighted-average common shares outstanding | 59,905 | 59,604 | 59,868 | 59,570 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2024 | Jul. 15, 2023 | Jul. 13, 2024 | Jul. 15, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 44,991 | $ 78,577 | $ 85,003 | $ 126,900 |
Other comprehensive (loss) income: | ||||
Changes in net unrecognized other postretirement benefits, net of tax of $(10), $(14), $(31) and $56 | (30) | (38) | (88) | 159 |
Currency translation adjustments | 1,949 | 7,262 | 7,789 | 7,829 |
Total other comprehensive (loss) income | 1,919 | 7,224 | 7,701 | 7,988 |
Comprehensive income | $ 46,910 | $ 85,801 | $ 92,704 | $ 134,888 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2024 | Jul. 15, 2023 | Jul. 13, 2024 | Jul. 15, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Changes in net unrecognized other postretirment benefits, net of tax | $ (10) | $ (14) | $ (31) | $ 56 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders’ Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock, at Cost | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance (in shares) at Dec. 31, 2022 | 59,264 | |||||
Balance at Dec. 31, 2022 | $ 2,599,192 | $ 8 | $ 897,560 | $ (2,918,768) | $ (44,695) | $ 4,665,087 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 126,900 | 126,900 | ||||
Total other comprehensive income (loss) | 7,988 | 7,988 | ||||
Restricted stock and deferred stock units vested (in shares) | 276 | |||||
Share-based compensation | 26,853 | 26,853 | ||||
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) | (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 | 2,642,654 | $ 8 | 925,411 | (2,932,576) | (36,707) | 4,686,518 |
Balance (in shares) at Apr. 22, 2023 | 59,444 | |||||
Balance at Apr. 22, 2023 | 2,562,720 | $ 8 | 914,184 | (2,931,373) | (43,931) | 4,623,832 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 78,577 | 78,577 | ||||
Total other comprehensive income (loss) | 7,224 | 7,224 | ||||
Restricted stock and deferred stock units vested (in shares) | 20 | |||||
Share-based compensation | 10,329 | 10,329 | ||||
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 | 2,642,654 | $ 8 | 925,411 | (2,932,576) | (36,707) | 4,686,518 |
Balance (in shares) at Dec. 30, 2023 | 59,512 | |||||
Balance at Dec. 30, 2023 | 2,519,728 | $ 8 | 946,099 | (2,933,286) | (52,232) | 4,559,139 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 85,003 | 85,003 | ||||
Total other comprehensive income (loss) | 7,701 | 7,701 | ||||
Restricted stock and deferred stock units vested (in shares) | 187 | |||||
Share-based compensation | 27,653 | 27,653 | ||||
Stock issued under employee stock purchase plan (in shares) | 43 | |||||
Stock issued under employee stock purchase plan | 1,788 | 1,788 | ||||
Repurchases of common stock (in shares) | (67) | |||||
Repurchases of common stock | $ (4,617) | (4,617) | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.50 | |||||
Cash dividends declared | $ (30,504) | (30,504) | ||||
Balance (in shares) at Jul. 13, 2024 | 59,675 | |||||
Balance at Jul. 13, 2024 | 2,606,752 | $ 8 | 975,540 | (2,937,903) | (44,531) | 4,613,638 |
Balance (in shares) at Apr. 20, 2024 | 59,623 | |||||
Balance at Apr. 20, 2024 | 2,564,650 | $ 8 | 963,741 | (2,936,624) | (46,450) | 4,583,975 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 44,991 | 44,991 | ||||
Total other comprehensive income (loss) | 1,919 | 1,919 | ||||
Restricted stock and deferred stock units vested (in shares) | 55 | |||||
Share-based compensation | 10,957 | 10,957 | ||||
Stock issued under employee stock purchase plan (in shares) | 15 | |||||
Stock issued under employee stock purchase plan | 842 | 842 | ||||
Repurchases of common stock (in shares) | (18) | |||||
Repurchases of common stock | $ (1,279) | (1,279) | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.25 | |||||
Cash dividends declared | $ (15,328) | (15,328) | ||||
Balance (in shares) at Jul. 13, 2024 | 59,675 | |||||
Balance at Jul. 13, 2024 | $ 2,606,752 | $ 8 | $ 975,540 | $ (2,937,903) | $ (44,531) | $ 4,613,638 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2024 | Jul. 15, 2023 | Jul. 13, 2024 | Jul. 15, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (per common share) | $ 0.25 | $ 0.25 | $ 0.50 | $ 1.75 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 13, 2024 | Jul. 15, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 85,003 | $ 126,900 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 167,443 | 162,974 |
Share-based compensation | 27,653 | 26,791 |
Loss and impairment of long-lived assets | (15,645) | 859 |
Provision for deferred income taxes | 13,634 | 21,497 |
Other | 2,076 | 1,628 |
Net change in: | ||
Receivables, net | (49,546) | (97,022) |
Inventories | (53,472) | (148,918) |
Accounts payable | (125,351) | (319,785) |
Accrued expenses | 33,166 | 118,781 |
Other assets and liabilities, net | 2,853 | (60,836) |
Net cash provided by operating activities | 87,814 | (167,131) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (92,445) | (144,874) |
Proceeds from sales of property and equipment | 12,820 | 1,532 |
Net cash used in investing activities | (79,625) | (143,342) |
Cash flows from financing activities: | ||
Borrowings under credit facilities | 0 | 4,327,000 |
Payments on credit facilities | 0 | (4,417,000) |
Borrowings on senior unsecured notes | 0 | 599,571 |
Dividends paid | (29,920) | (179,347) |
Proceeds from (Payments to) Noncontrolling Interests | (9,101) | 0 |
Proceeds from Issuance of Common Stock | 1,788 | 2,060 |
Repurchases of common stock | (4,617) | (13,808) |
Proceeds from (Payments for) Other Financing Activities | (1,143) | (4,531) |
Net cash used in financing activities | (42,993) | 313,945 |
Effect of exchange rate changes on cash | 10,751 | 949 |
Net decrease in cash and cash equivalents | (24,053) | 4,421 |
Cash and cash equivalents, beginning of period | 503,471 | 270,805 |
Cash and cash equivalents, end of period | 479,418 | 275,226 |
Non-cash transactions: | ||
Accrued purchases of property and equipment | $ 5,041 | $ 10,177 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jul. 13, 2024 | |
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 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 “the Company”). As of July 13, 2024, the Company operated a total of 4,776 stores and 321 branches primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. In addition, as of July 13, 2024, the Company served 1,138 independently owned Carquest branded stores across the same geographic locations served by the Company’s stores and branches in addition to Mexico and various Caribbean islands. The Company’s stores operate primarily under the trade names “Advance Auto Parts” and “Carquest” and the Company’s 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 the Company’s Annual Report on Form 10-K for 2023 as filed with the SEC on March 12, 2024, and the amended Annual Report on Form 10-K/A filed with the SEC on May 30, 2024 (collectively the “2023 Form 10-K”). 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. The Company’s first quarter of the year contains sixteen weeks. The Company’s remaining three quarters each consist of twelve weeks. Revision of Previously Issued Financial Statements for Correction of Immaterial Errors During the year ended December 30, 2023, the Company identified errors impacting cost of sales, selling, general and administrative expenses (“SG&A”) and other income (expense), net, of $62.9 million, $36.6 million and $1.7 million incurred in prior years but not previously recognized. These charges primarily related to product costs and vendor credits. Management assessed the materiality of the errors, including the presentation on prior period consolidated financial statements, on a qualitative and quantitative basis in accordance with SEC Staff Accounting Bulletin No. 99, Materiality, codified in Accounting Standards Codification Topic 250, Accounting Changes and Error Corrections. The Company concluded that these errors and the related impacts did not result in a material misstatement of its previously issued consolidated financial statements as of and for the years ended December 31, 2022 and January 1, 2022 and its previously issued unaudited condensed consolidated interim financial statements as of and for the sixteen weeks ended April 22, 2023; the twelve and twenty-eight weeks ended July 15, 2023; and the twelve and forty weeks ended October 7, 2023. Correcting the cumulative effect of these errors in the fifty-two weeks ended December 30, 2023 would have had a significant effect on the results of operations for such period. The Company has corrected the relevant prior periods of its consolidated financial statements and related footnotes for these and other immaterial corrections for comparative purposes, as previously disclosed in Note 18. Immaterial Restatement of Prior Period Financial Statements |
Significant Acounting Policies
Significant Acounting Policies | 6 Months Ended |
Jul. 13, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. 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 13, 2024 July 15, 2023 July 13, 2024 July 15, 2023 Percentage of Sales: Parts and Batteries 65 % 66 % 66 % 66 % Accessories and Chemicals 20 20 20 20 Engine Maintenance 14 13 13 13 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % Recently Issued Accounting Pronouncements - Not Yet Adopted Disclosure Improvements In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-06, Disclosure Improvements (“ASU 2023-06”), which defines when companies will be required to improve and clarify disclosure and presentation requirements. This ASU should be applied prospectively, and the effective date will be determined for each individual disclosure based on the effective date of the SEC’s removal of the related disclosure. If the applicable requirements have not been removed by the SEC by June 30, 2027, this ASU will not become effective. Early adoption is prohibited. The Company is currently evaluating the impact of adopting ASU 2023-06 on the consolidated financial statements and related disclosures, and does not believe it will have a material impact on the consolidated financial statements. Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires a company to disclose additional, more detailed information about a reportable segment’s significant expenses, even if there is one reportable segment, and is intended to improve the disclosures about a public entity’s reportable segments. The ASU is effective for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2023-07 and believes that the adoption will result in additional disclosures, but will not have any other impact on its consolidated financial statements and segment reporting. Income Tax Disclosure Improvements In December 2023, the FASB issued ASU 2023-09, Income Taxes (“ASU 2023-09”) , which requires a company to enhance its income tax disclosures. In each annual reporting period, the company should disclose the specific categories used in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold, including disaggregation of taxes paid by jurisdiction. The related disclosures are effective for the fiscal year beginning after December 15, 2024. The Company is currently evaluating the impact of adopting ASU 2023-09 on our consolidated financial statements and related disclosures and believes that the adoption will result in additional disclosures, but will not have any other impact on its consolidated financial statements. Climate Disclosure Requirements In March 2024, the SEC issued its final climate disclosure rules, which require the disclosure of climate-related information in annual reports and registration statements. The rules require disclosure in the audited financial statements of certain effects of severe weather events and other natural conditions and greenhouse gas emissions above certain financial thresholds, as well as amounts related to carbon offsets and renewable energy credits or certificates, if material. Additionally, the rule established disclosure requirements regarding material climate-related risks, descriptions of board oversight and risk management activities, the material impacts of these risks on a registrants' strategy, business model and outlook and any material climate-related targets or goals. On April 4, 2024, the SEC determined to voluntarily stay the final rules pending certain legal challenges. Prior to the stay in the new rules, disclosures would have been effective for annual periods beginning January 1, 2025, except for the greenhouse gas emissions disclosure which would have been effective for annual periods beginning January 1, 2026. The Company is currently evaluating the impact of the new rules on the consolidated financial statements and related disclosures. |
Inventories
Inventories | 6 Months Ended |
Jul. 13, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories, net The Company used the last in, first out (“LIFO”) method of accounting for approximately 91.3% of inventories as of July 13, 2024 and 91.4% as of December 30, 2023. As a result, the Company recorded a reduction to cost of sales of $37.4 million and $26.8 million for the twelve weeks ended July 13, 2024 and July 15, 2023 to state inventories at LIFO. For the twenty-eight weeks ended July 13, 2024 and July 15, 2023, the Company recorded a reduction to cost of sales of $42.4 million and $33.5 million to state inventories at LIFO. Purchasing and warehousing costs included in inventories as of July 13, 2024 and December 30, 2023 were $559.7 million and $576.9 million. An actual valuation of inventory under the LIFO method is performed at the end of each fiscal year based on inventory levels and carrying costs at that time. Accordingly, interim LIFO calculations are based on the Company’s estimates of expected inventory levels and costs at the end of the year. Inventory balances were as follows: July 13, 2024 December 30, 2023 Inventories at first in, first out (“FIFO”) $ 5,045,131 $ 5,041,752 Adjustments to state inventories at LIFO (141,641) (184,050) Inventories at LIFO $ 4,903,490 $ 4,857,702 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jul. 13, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The Company’s definite-lived intangible assets include customer relationships and non-compete agreements. Amortization expense was $6.1 million and $6.8 million for the twelve weeks ended July 13, 2024 and July 15, 2023, and $14.4 million and $16.0 million for the twenty-eight weeks ended July 13, 2024 and July 15, 2023. |
Receivables, net
Receivables, net | 6 Months Ended |
Jul. 13, 2024 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net Receivables, net, consisted of the following: July 13, 2024 December 30, 2023 Trade $ 628,025 $ 558,953 Vendor 237,896 257,847 Other 10,196 10,930 Total receivables 876,117 827,730 Less: allowance for credit losses (28,508) (27,589) Receivables, net $ 847,609 $ 800,141 |
Long-term Debt and Fair Value o
Long-term Debt and Fair Value of Financial Instruments | 6 Months Ended |
Jul. 13, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Fair Value of Financial Instruments | Long-term Debt and Fair Value of Financial Instruments Long-term debt consisted of the following: July 13, 2024 December 30, 2023 5.90% Senior Unsecured Notes due March 9, 2026 $ 298,768 $ 298,369 1.75% Senior Unsecured Notes due October 1, 2027 347,821 347,514 5.95% Senior Unsecured Notes due March 9, 2028 298,361 298,116 3.90% Senior Unsecured Notes due April 15, 2030 496,467 496,149 3.50% Senior Unsecured Notes due March 15, 2032 346,450 346,213 Revolver credit facility — — $ 1,787,867 $ 1,786,361 Less: Current portion of long-term debt — — Long-term debt, excluding the current portion $ 1,787,867 $ 1,786,361 Fair value of long-term debt $ 1,668,101 $ 1,641,409 Fair Value of Financial Assets and Liabilities The fair value of the Company’s senior unsecured notes was determined using Level 2 inputs based on quoted market prices. The carrying amounts of the Company’s 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 26, 2024, the Company entered into Amendment No. 4 (“Amendment No. 4”) to the Company’s unsecured revolving credit facility (“2021 Credit Agreement”) to enable certain addbacks to the definition of Consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) contained therein for specific write-downs of inventory and vendor receivables. Amendment No. 4 also updated certain limitations on future incurrences of other indebtedness and liens, replacing the cap thereon of 10% of consolidated net tangible assets with $400 million, and eliminated the $250 million basket for accounts receivable securitization transactions. Amendment No. 4 made no other material changes to the terms of the 2021 Credit Agreement. The 2021 Credit Agreement contains customary covenants restricting the ability of: (a) Advance Auto Parts, Inc. and its subsidiaries to, among other things, (i) create, incur or assume additional debt (only with respect to subsidiaries of Advance Auto Parts, Inc.), (ii) incur liens, (iii) guarantee obligations, and (iv) change the nature of their business; (b) Advance Auto Parts, Inc., Advance Stores and their subsidiaries to, among other things (i) enter into certain hedging arrangements, (ii) enter into restrictive agreements limiting their ability to incur liens on any of their property or assets, pay distributions, repay loans, or guarantee indebtedness of their subsidiaries; and (c) Advance Auto Parts, Inc., among other things, to change its holding company status. The Company is also required to comply with financial covenants with respect to a maximum leverage ratio and a minimum coverage ratio. The 2021 Credit Agreement also provides for customary events of default, including non-payment defaults, covenant defaults and cross-defaults of Advance’s other material indebtedness. The Company was in compliance with the financial covenants with respect to the 2021 Credit Agreement as of July 13, 2024. As of July 13, 2024 and December 30, 2023, the Company had no outstanding borrowings, $1.2 billion of borrowing availability and no letters of credit outstanding under the 2021 Credit Agreement. As of July 13, 2024 and December 30, 2023, the Company had $90.8 million and $91.2 million of bilateral letters of credit issued separately from the 2021 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 the Company’s self-insurance policies. Senior Unsecured Notes The Company’s 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, the Company 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. The Company’s 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, the Company incurred $2.9 million of debt issuance costs. The Company’s 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, the Company incurred $3.2 million of debt issuance costs. The Company’s 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, the Company incurred $1.6 million of debt issuance costs. The Company’s 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, the Company incurred $1.9 million of debt issuance costs. The Company may redeem some or all of the 2026 Notes and 2028 Notes (the “Notes”) at any time, or from time to time, prior to March 9, 2026 in the case of the 2026 Notes, or February 9, 2028 in the case of the 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, the Company 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 The Company is a guarantor of loans made by banks to various independently owned Carquest-branded stores that are customers of the Company. These loans totaled $105.5 million and $106.9 million as of July 13, 2024 and December 30, 2023 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 $189.8 million and $221.2 million as of July 13, 2024 and December 30, 2023. The Company believes that the likelihood of performance under these guarantees is remote. |
Supplier Finance Program | 11. Supplier Finance Programs The Company maintains supply chain financing agreements with third-party financial institutions to provide the Company’s suppliers with enhanced receivables options. Through these agreements, the Company’s suppliers, at their sole discretion, may elect to sell their receivables due from the Company to the third-party financial institution at terms negotiated between the supplier and the third-party financial institution. The Company does not provide any guarantees to any third party in connection with these financing arrangements. The Company’s obligations to suppliers, including amounts due and scheduled payment terms, are not impacted, and no assets are pledged under the agreements. All outstanding amounts due to third-party financial institutions related to suppliers participating in such financing arrangements are recorded within accounts payable and represent obligations outstanding under these supplier finance programs for invoices that were confirmed as valid and owed to the third-party financial institutions in the Company’s condensed consolidated balance sheets. As of July 13, 2024, and December 30, 2023, $3.2 billion and $3.4 billion of the Company’s accounts payable were to suppliers participating in these financing arrangements. |
Leases
Leases | 6 Months Ended |
Jul. 13, 2024 | |
Leases [Abstract] | |
Leases | Leases Substantially all of the Company’s leases are for facilities, vehicles and equipment. The initial term for facilities is typically five three Total lease cost is included in cost of sales and SG&A in the accompanying condensed consolidated statements of operations and is recorded net of immaterial sublease income. Total lease cost comprised the following: Twelve Weeks Ended Twenty-Eight Weeks Ended July 13, 2024 July 15, 2023 July 13, 2024 July 15, 2023 Operating lease cost $ 136,234 $ 130,931 $ 317,824 $ 304,590 Variable lease cost 44,871 41,087 103,532 92,433 Total lease cost $ 181,105 $ 172,018 $ 421,356 $ 397,023 Other information relating to the Company’s lease liabilities was as follows: Twenty-Eight Weeks Ended July 13, 2024 July 15, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 307,345 $ 298,175 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 286,875 $ 271,182 During first quarter 2024, the Company entered into a sale-leaseback transaction where the Company sold a building and land and entered into a three-year lease of the property upon the sale. This transaction resulted in a gain of $22.3 million and is included in selling, general and administrative expenses on the condensed consolidated statement of operations. |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jul. 13, 2024 | |
Stock Repurchases: [Abstract] | |
Share Repurchase Program | Share Repurchase Program The Company’s Board of Directors had previously authorized $2.7 billion to its share repurchase program. The share repurchase program permits the repurchase of the Company’s common stock on the open market and in privately negotiated transactions from time to time. During the twelve and twenty-eight weeks ended July 13, 2024 and July 15, 2023, the Company did not purchase any shares of the Company’s common stock under the share repurchase program. The Company had $947.3 million remaining under the share repurchase program as of July 13, 2024. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jul. 13, 2024 | |
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 13, 2024 July 15, 2023 July 13, 2024 July 15, 2023 Numerator Net income applicable to common shares $ 44,991 $ 78,577 $ 85,003 $ 126,900 Denominator Basic weighted-average common shares 59,633 59,451 59,590 59,384 Dilutive impact of share-based awards 272 153 278 186 Diluted weighted-average common shares (1) 59,905 59,604 59,868 59,570 Basic earnings per common share $ 0.75 $ 1.32 $ 1.43 $ 2.14 Diluted earnings per common share $ 0.75 $ 1.32 $ 1.42 $ 2.13 (1) For the twelve weeks ended July 13, 2024 and July 15, 2023, 491 thousand and 402 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 13, 2024 and July 15, 2023, 385 thousand and 289 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. 13, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company grants options to purchase common stock to certain employees under the Company’s 2023 Omnibus Incentive Compensation Plan. The general terms of the time-based and market-based RSUs and stock options are similar to awards previously granted by the Company. The Company records compensation expense for the grant date fair value of the option awards evenly over the vesting period. During the twelve and twenty-eight weeks ended July 13, 2024, the Company granted the following time-based and market-based RSUs: Twelve Weeks Ended Twenty-Eight Weeks Ended July 13, 2024 July 13, 2024 Time-based RSUs Number of awards 49.4 549.5 Weighted-average fair value $ 64.16 $ 78.01 Market-based RSUs Number of awards — 149.2 Weighted-average fair value — $ 113.31 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 the Company’s stock on the date of grant adjusted for expected dividends during the vesting period, as applicable. During the twelve and twenty-eight weeks ended July 13, 2024, the Company granted the following stock options: Twelve Weeks Ended Twenty-Eight Weeks Ended Number of awards 9.8 203.5 Weighted-average fair value $ 25.48 $ 31.88 The fair value of each option was estimated on the date of grant by applying the Black-Scholes option-pricing valuation model. Twelve Weeks Ended Twenty-Eight Weeks Ended Risk-free interest rate (1) 4.2 % 4.1 - 4.2 % Expected term (2) 6 years 6 years Expected volatility (3) 41.6 % 41.6 - 42.6 % Expected dividend yield (4) 1.4 % 1.4 - 1.5 % (1) The risk-free interest rate is based on the yield in effect at grant for zero-coupon U.S. Treasury notes with maturities equivalent to the expected term of the stock options. (2) The expected term represents the period of time options granted are expected to be outstanding. As the Company does not have sufficient historical data, the Company utilized the simplified method provided by the SEC to calculate the expected term as the average of the contractual term and vesting period. (3) Expected volatility is the measure of the amount by which the stock price has fluctuated or is expected to fluctuate. The Company utilized historical trends and the implied volatility of the Company’s publicly traded financial instruments in developing the volatility estimate for its stock options. (4) The expected dividend yield is calculated based on our expected quarterly dividend and the three month average stock price as of the grant date. The total income tax benefit related to share-based compensation expense for the twelve and twenty-eight weeks ended July 13, 2024 was $2.7 million and $6.6 million. As of July 13, 2024, there was $100.3 million of unrecognized compensation expense related to all share-based awards that is expected to be recognized over a weighted-average period of 1.7 years. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 13, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Event On August 22, 2024, the Company entered into a definitive purchase agreement to sell its Worldpac business for $1.5 billion, with customary adjustments for working capital and other items. The transaction is expected to close in the fourth quarter of 2024. The Company expects net proceeds from the transaction after paying expenses and taxes to be approximately $1.2 billion. The Company intends to use net proceeds from the transaction for general corporate purposes, which may include the provision of additional working capital, funding internal operational improvement initiatives, and repayment or refinancing of outstanding indebtedness. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2024 | Jul. 15, 2023 | Jul. 13, 2024 | Jul. 15, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 44,991 | $ 78,577 | $ 85,003 | $ 126,900 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 13, 2024 | |
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. 13, 2024 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements - Adopted | Disclosure Improvements In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-06, Disclosure Improvements (“ASU 2023-06”), which defines when companies will be required to improve and clarify disclosure and presentation requirements. This ASU should be applied prospectively, and the effective date will be determined for each individual disclosure based on the effective date of the SEC’s removal of the related disclosure. If the applicable requirements have not been removed by the SEC by June 30, 2027, this ASU will not become effective. Early adoption is prohibited. The Company is currently evaluating the impact of adopting ASU 2023-06 on the consolidated financial statements and related disclosures, and does not believe it will have a material impact on the consolidated financial statements. Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires a company to disclose additional, more detailed information about a reportable segment’s significant expenses, even if there is one reportable segment, and is intended to improve the disclosures about a public entity’s reportable segments. The ASU is effective for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2023-07 and believes that the adoption will result in additional disclosures, but will not have any other impact on its consolidated financial statements and segment reporting. Income Tax Disclosure Improvements In December 2023, the FASB issued ASU 2023-09, Income Taxes (“ASU 2023-09”) , which requires a company to enhance its income tax disclosures. In each annual reporting period, the company should disclose the specific categories used in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold, including disaggregation of taxes paid by jurisdiction. The related disclosures are effective for the fiscal year beginning after December 15, 2024. The Company is currently evaluating the impact of adopting ASU 2023-09 on our consolidated financial statements and related disclosures and believes that the adoption will result in additional disclosures, but will not have any other impact on its consolidated financial statements. Climate Disclosure Requirements In March 2024, the SEC issued its final climate disclosure rules, which require the disclosure of climate-related information in annual reports and registration statements. The rules require disclosure in the audited financial statements of certain effects of severe weather events and other natural conditions and greenhouse gas emissions above certain financial thresholds, as well as amounts related to carbon offsets and renewable energy credits or certificates, if material. Additionally, the rule established disclosure requirements regarding material climate-related risks, descriptions of board oversight and risk management activities, the material impacts of these risks on a registrants' strategy, business model and outlook and any material climate-related targets or goals. On April 4, 2024, the SEC determined to voluntarily stay the final rules pending certain legal challenges. Prior to the stay in the new rules, disclosures would have been effective for annual periods beginning January 1, 2025, except for the greenhouse gas emissions disclosure which would have been effective for annual periods beginning January 1, 2026. The Company is currently evaluating the impact of the new rules on the consolidated financial statements and related disclosures. |
Leases | Total lease cost is included in cost of sales and SG&A in the accompanying condensed consolidated statements of operations and is recorded net of immaterial sublease income. |
Fair Value Measurement | For time-based RSUs, the fair value of each award was determined based on the market price of the Company’s 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. 13, 2024 | |
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 13, 2024 July 15, 2023 July 13, 2024 July 15, 2023 Percentage of Sales: Parts and Batteries 65 % 66 % 66 % 66 % Accessories and Chemicals 20 20 20 20 Engine Maintenance 14 13 13 13 Other 1 1 1 1 Total 100 % 100 % 100 % 100 % |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 13, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory balances were as follows: July 13, 2024 December 30, 2023 Inventories at first in, first out (“FIFO”) $ 5,045,131 $ 5,041,752 Adjustments to state inventories at LIFO (141,641) (184,050) Inventories at LIFO $ 4,903,490 $ 4,857,702 |
Receivables, net (Tables)
Receivables, net (Tables) | 6 Months Ended |
Jul. 13, 2024 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Receivables, net, consisted of the following: July 13, 2024 December 30, 2023 Trade $ 628,025 $ 558,953 Vendor 237,896 257,847 Other 10,196 10,930 Total receivables 876,117 827,730 Less: allowance for credit losses (28,508) (27,589) Receivables, net $ 847,609 $ 800,141 |
Long-term Debt and Fair Value_2
Long-term Debt and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jul. 13, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consisted of the following: July 13, 2024 December 30, 2023 5.90% Senior Unsecured Notes due March 9, 2026 $ 298,768 $ 298,369 1.75% Senior Unsecured Notes due October 1, 2027 347,821 347,514 5.95% Senior Unsecured Notes due March 9, 2028 298,361 298,116 3.90% Senior Unsecured Notes due April 15, 2030 496,467 496,149 3.50% Senior Unsecured Notes due March 15, 2032 346,450 346,213 Revolver credit facility — — $ 1,787,867 $ 1,786,361 Less: Current portion of long-term debt — — Long-term debt, excluding the current portion $ 1,787,867 $ 1,786,361 Fair value of long-term debt $ 1,668,101 $ 1,641,409 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 13, 2024 | |
Leases [Abstract] | |
Lease, Cost | Total lease cost comprised the following: Twelve Weeks Ended Twenty-Eight Weeks Ended July 13, 2024 July 15, 2023 July 13, 2024 July 15, 2023 Operating lease cost $ 136,234 $ 130,931 $ 317,824 $ 304,590 Variable lease cost 44,871 41,087 103,532 92,433 Total lease cost $ 181,105 $ 172,018 $ 421,356 $ 397,023 |
Schedule of Other Information Relating to Lease Liabilities | Other information relating to the Company’s lease liabilities was as follows: Twenty-Eight Weeks Ended July 13, 2024 July 15, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 307,345 $ 298,175 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 286,875 $ 271,182 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jul. 13, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computations of basic and diluted earnings per share were as follows: Twelve Weeks Ended Twenty-Eight Weeks Ended July 13, 2024 July 15, 2023 July 13, 2024 July 15, 2023 Numerator Net income applicable to common shares $ 44,991 $ 78,577 $ 85,003 $ 126,900 Denominator Basic weighted-average common shares 59,633 59,451 59,590 59,384 Dilutive impact of share-based awards 272 153 278 186 Diluted weighted-average common shares (1) 59,905 59,604 59,868 59,570 Basic earnings per common share $ 0.75 $ 1.32 $ 1.43 $ 2.14 Diluted earnings per common share $ 0.75 $ 1.32 $ 1.42 $ 2.13 (1) For the twelve weeks ended July 13, 2024 and July 15, 2023, 491 thousand and 402 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 13, 2024 and July 15, 2023, 385 thousand and 289 thousand RSUs were excluded from the diluted calculation as their inclusion would have been anti-dilutive. |
Immaterial Restatement of Prior
Immaterial Restatement of Prior Period Financial Statements (Tables) | 6 Months Ended |
Jul. 13, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | 12. Immaterial Restatement of Prior Period Financial Statements As discussed in Note 1, the Company made corrections to the consolidated financial statements for periods ended December 31, 2022, January 1, 2022, and the quarterly periods of 2023. A summary of the corrections related to prior periods presented are as follows (tables may not foot or cross foot due to rounding): Condensed Consolidated Statement of Operations July 15, 2023 Twelve Weeks Ended Twenty-Eight Weeks Ended As Adjustments As As Adjustments As Cost of sales $ 1,537,997 $ 7,614 $ 1,545,611 $ 3,484,927 $ 16,350 $ 3,501,277 Gross profit 1,148,069 (7,614) 1,140,455 2,618,732 (16,350) 2,602,382 Selling, general and administrative expenses 1,013,701 794 1,014,495 2,394,365 (15,881) 2,378,484 Operating income 134,368 (8,408) 125,960 224,367 (469) 223,898 Income before provision for income taxes 115,183 (8,408) 106,775 174,789 (469) 174,320 Provision for income taxes 29,821 (1,623) 28,198 46,776 644 47,420 Net income $ 85,362 $ (6,785) $ 78,577 $ 128,013 $ (1,113) $ 126,900 Basic earnings per share $ 1.44 $ (0.12) $ 1.32 $ 2.16 $ (0.02) $ 2.14 Diluted earnings per common share $ 1.43 $ (0.11) $ 1.32 $ 2.15 $ (0.02) $ 2.13 Condensed Consolidated Statement of Comprehensive Income July 15, 2023 Twelve Weeks Ended Twenty-Eight Weeks Ended As Adjustments As As Adjustments As Net income $ 85,362 $ (6,785) $ 78,577 $ 128,013 $ (1,113) $ 126,900 Currency translation adjustments 7,569 (307) 7,262 8,160 (331) 7,829 Total other comprehensive loss 7,531 (307) 7,224 8,319 (331) 7,988 Comprehensive income $ 92,893 $ (7,092) $ 85,801 $ 136,332 $ (1,444) $ 134,888 Condensed Consolidated Statements of Changes in Stockholders’ Equity Twelve Weeks Ended July 15, 2023 Accumulated Other Retained Total Stockholders' Equity Twelve Weeks Ended As Previously Reported Balance at April 22, 2023 $ (44,355) $ 4,697,697 $ 2,636,161 Net income — 85,362 85,362 Total other comprehensive income 7,531 — 7,531 Balance at July 15, 2023 $ (36,824) $ 4,767,168 $ 2,723,187 Adjustments Balance at April 22, 2023 $ 424 $ (73,865) $ (73,441) Net income — (6,785) (6,785) Total other comprehensive income (307) — (307) Balance at July 15, 2023 $ 117 $ (80,650) $ (80,533) As Corrected Balance at April 22, 2023 $ (43,931) $ 4,623,832 $ 2,562,720 Net income — 78,577 78,577 Total other comprehensive income 7,224 — 7,224 Balance at July 15, 2023 $ (36,707) $ 4,686,518 $ 2,642,654 Condensed Consolidated Statements of Changes in Stockholders’ Equity Twenty-Eight Weeks Ended July 15, 2023 Accumulated Other Retained Total Stockholders' Equity Twenty-Eight Weeks Ended As Previously Reported Balance at December 31, 2022 $ (45,143) $ 4,744,624 $ 2,678,281 Net income — 128,013 128,013 Total other comprehensive income 8,319 — 8,319 Balance at July 15, 2023 $ (36,824) $ 4,767,168 $ 2,723,187 Adjustments Balance at December 31, 2022 $ 448 $ (79,537) $ (79,089) Net income — (1,113) (1,113) Total other comprehensive income (331) — (331) Balance at July 15, 2023 $ 117 $ (80,650) $ (80,533) As Corrected Balance at December 31, 2022 $ (44,695) $ 4,665,087 $ 2,599,192 Net income — 126,900 126,900 Total other comprehensive income 7,988 — 7,988 Balance at July 15, 2023 $ (36,707) $ 4,686,518 $ 2,642,654 Condensed Consolidated Statement of Cash Flows Twenty-Eight Weeks Ended July 15, 2023 As Previously Reported Adjustments As Corrected Net income $ 128,013 $ (1,113) $ 126,900 Provision for deferred income taxes 16,249 5,248 21,497 Other, net 1,170 458 1,628 Net change in: Receivables, net (93,539) (3,483) (97,022) Inventories, net (145,148) (3,770) (148,918) Accounts payable (346,808) 27,023 (319,785) Accrued expenses 120,888 (2,107) 118,781 Other assets and liabilities, net (36,008) (24,828) (60,836) Net cash used in operating activities (164,559) (2,572) (167,131) Other, net (1) (4,073) (458) (4,531) Net cash provided by financing activities 314,403 (458) 313,945 Effect of exchange rate changes on cash 1,280 (331) 949 Net increase in cash and cash equivalents 7,782 (3,361) 4,421 Cash and cash equivalents, beginning of period 269,282 1,523 270,805 Cash and cash equivalents, end of period $ 277,064 $ (1,838) $ 275,226 (1) |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) - store | 12 Months Ended | |
Dec. 30, 2023 | Jul. 13, 2024 | |
Basis of Presentation [Line Items] | ||
Immaterial Error Correction, Cost of Goods Sold | $62.9 million | |
Immaterial Error Correction, Selling, General and Administrative | $36.6 million | |
Immaterial Error Correction, Other Nonoperating Income (Expense) | $1.7 million | |
Stores [Member] | ||
Basis of Presentation [Line Items] | ||
Number of Stores | 4,776 | |
Branches [Member] | ||
Basis of Presentation [Line Items] | ||
Number of Stores | 321 | |
Independently owned Carquest store locations [Member] | ||
Basis of Presentation [Line Items] | ||
Number of Stores | 1,138 |
Significant Acounting Policie_3
Significant Acounting Policies (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2024 | Jul. 15, 2023 | Jul. 13, 2024 | Jul. 15, 2023 | |
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 100% | 100% | 100% | 100% |
Document Period End Date | Jul. 13, 2024 | |||
Parts and Batteries [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 65% | 66% | 66% | 66% |
Accessories and Chemicals [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 20% | 20% | 20% | 20% |
Engine Maintenance [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 14% | 13% | 13% | 13% |
Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage Of Sales By Product Group | 1% | 1% | 1% | 1% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 13, 2024 | Jul. 15, 2023 | Jul. 13, 2024 | Jul. 15, 2023 | Dec. 30, 2023 | |
Inventory [Line Items] | |||||
Percentage of LIFO Inventory | 91.30% | 91.30% | 91.40% | ||
Inventory, LIFO Reserve, Effect on Income, Net | $ (37,400) | $ (26,800) | $ (42,400) | $ (33,500) | |
Inventories at first in, first out (“FIFO”) | 5,045,131 | 5,045,131 | $ 5,041,752 | ||
Adjustments to state inventories at LIFO | (141,641) | (141,641) | (184,050) | ||
Inventories at LIFO | 4,903,490 | 4,903,490 | 4,857,702 | ||
Purchasing and Warehousing Costs included in Inventory at FIFO | $ 559,700 | $ 559,700 | $ 576,900 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2024 | Jul. 15, 2023 | Jul. 13, 2024 | Jul. 15, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 6.1 | $ 6.8 | $ 14.4 | $ 16 |
Receivables, net (Details)
Receivables, net (Details) - USD ($) $ in Thousands | Jul. 13, 2024 | Dec. 30, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 876,117 | $ 827,730 |
Less: Allowance for doubtful accounts | (28,508) | (27,589) |
Receivables, net | 847,609 | 800,141 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 628,025 | 558,953 |
Accounts Receivable, Vendor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 237,896 | 257,847 |
Accounts Receivable, Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 10,196 | $ 10,930 |
Long-term Debt and Fair Value_3
Long-term Debt and Fair Value of Financial Instruments (Details) - USD ($) | 6 Months Ended | |||||
Jul. 13, 2024 | Dec. 30, 2023 | Mar. 09, 2023 | Mar. 04, 2022 | Sep. 29, 2020 | Apr. 16, 2020 | |
Debt Instrument [Line Items] | ||||||
Fair value of long-term debt | $ 1,668,101,000 | $ 1,641,409,000 | ||||
Guarantor Obligations, Maximum Exposure | 105,500,000 | 106,900,000 | ||||
Guarantor Obligation, Collateral Amount | 189,800,000 | 221,200,000 | ||||
Long-term debt | 1,787,867,000 | 1,786,361,000 | ||||
Debt, Long-term and Short-term, Combined Amount | 1,787,867,000 | 1,786,361,000 | ||||
Long-term Debt, Current Maturities | $ 0 | 0 | ||||
Document Period End Date | Jul. 13, 2024 | |||||
Long-term Debt and Fair Value of Financial Instruments | Long-term Debt and Fair Value of Financial Instruments Long-term debt consisted of the following: July 13, 2024 December 30, 2023 5.90% Senior Unsecured Notes due March 9, 2026 $ 298,768 $ 298,369 1.75% Senior Unsecured Notes due October 1, 2027 347,821 347,514 5.95% Senior Unsecured Notes due March 9, 2028 298,361 298,116 3.90% Senior Unsecured Notes due April 15, 2030 496,467 496,149 3.50% Senior Unsecured Notes due March 15, 2032 346,450 346,213 Revolver credit facility — — $ 1,787,867 $ 1,786,361 Less: Current portion of long-term debt — — Long-term debt, excluding the current portion $ 1,787,867 $ 1,786,361 Fair value of long-term debt $ 1,668,101 $ 1,641,409 Fair Value of Financial Assets and Liabilities The fair value of the Company’s senior unsecured notes was determined using Level 2 inputs based on quoted market prices. The carrying amounts of the Company’s 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 26, 2024, the Company entered into Amendment No. 4 (“Amendment No. 4”) to the Company’s unsecured revolving credit facility (“2021 Credit Agreement”) to enable certain addbacks to the definition of Consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) contained therein for specific write-downs of inventory and vendor receivables. Amendment No. 4 also updated certain limitations on future incurrences of other indebtedness and liens, replacing the cap thereon of 10% of consolidated net tangible assets with $400 million, and eliminated the $250 million basket for accounts receivable securitization transactions. Amendment No. 4 made no other material changes to the terms of the 2021 Credit Agreement. The 2021 Credit Agreement contains customary covenants restricting the ability of: (a) Advance Auto Parts, Inc. and its subsidiaries to, among other things, (i) create, incur or assume additional debt (only with respect to subsidiaries of Advance Auto Parts, Inc.), (ii) incur liens, (iii) guarantee obligations, and (iv) change the nature of their business; (b) Advance Auto Parts, Inc., Advance Stores and their subsidiaries to, among other things (i) enter into certain hedging arrangements, (ii) enter into restrictive agreements limiting their ability to incur liens on any of their property or assets, pay distributions, repay loans, or guarantee indebtedness of their subsidiaries; and (c) Advance Auto Parts, Inc., among other things, to change its holding company status. The Company is also required to comply with financial covenants with respect to a maximum leverage ratio and a minimum coverage ratio. The 2021 Credit Agreement also provides for customary events of default, including non-payment defaults, covenant defaults and cross-defaults of Advance’s other material indebtedness. The Company was in compliance with the financial covenants with respect to the 2021 Credit Agreement as of July 13, 2024. As of July 13, 2024 and December 30, 2023, the Company had no outstanding borrowings, $1.2 billion of borrowing availability and no letters of credit outstanding under the 2021 Credit Agreement. As of July 13, 2024 and December 30, 2023, the Company had $90.8 million and $91.2 million of bilateral letters of credit issued separately from the 2021 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 the Company’s self-insurance policies. Senior Unsecured Notes The Company’s 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, the Company 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. The Company’s 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, the Company incurred $2.9 million of debt issuance costs. The Company’s 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, the Company incurred $3.2 million of debt issuance costs. The Company’s 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, the Company incurred $1.6 million of debt issuance costs. The Company’s 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, the Company incurred $1.9 million of debt issuance costs. The Company may redeem some or all of the 2026 Notes and 2028 Notes (the “Notes”) at any time, or from time to time, prior to March 9, 2026 in the case of the 2026 Notes, or February 9, 2028 in the case of the 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, the Company 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 The Company is a guarantor of loans made by banks to various independently owned Carquest-branded stores that are customers of the Company. These loans totaled $105.5 million and $106.9 million as of July 13, 2024 and December 30, 2023 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 $189.8 million and $221.2 million as of July 13, 2024 and December 30, 2023. The Company believes that the likelihood of performance under these guarantees is remote. | |||||
Debt Instrument, Restrictive Covenants | $400 million | |||||
Debt Instrument, Restrictive Covenants, Eliminated | $250 million | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Letters of Credit Outstanding, Amount | $ 0 | |||||
Debt, Long-term and Short-term, Combined Amount | 0 | 0 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 1,200,000,000 | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | |||||
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 | |||||
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 | $ 1,900,000 | |||||
Debt Instrument, Face Amount | $ 300,000,000 | |||||
Bilateral Letter of Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Letters of Credit Outstanding, Amount | $ 90,800,000 | 91,200,000 | ||||
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 | $ 347,821,000 | 347,514,000 | ||||
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 | $ 496,467,000 | 496,149,000 | ||||
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 | $ 346,450,000 | 346,213,000 | ||||
Senior Notes [Member] | 5.90% senior unsecured notes (2026 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.90% | 590% | ||||
Long-term debt | $ 298,768,000 | 298,369,000 | ||||
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 | $ 298,361,000 | $ 298,116,000 |
Supplier Finance Programs
Supplier Finance Programs - USD ($) | 6 Months Ended | 12 Months Ended |
Jul. 13, 2024 | Dec. 30, 2023 | |
Supplier Finance Program [Line Items] | ||
Document Period End Date | Jul. 13, 2024 | |
Payments to Suppliers | $ 3,200,000,000 | $ 3,400,000,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2024 | Jul. 15, 2023 | Jul. 13, 2024 | Jul. 15, 2023 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 136,234 | $ 130,931 | $ 317,824 | $ 304,590 |
Variable lease cost | 44,871 | 41,087 | 103,532 | 92,433 |
Total lease cost | $ 181,105 | $ 172,018 | 421,356 | 397,023 |
Cash paid for amounts included in the measurement of lease liabilities: | 307,345 | 298,175 | ||
Right-of-use assets obtained in exchange for lease obligations: | 286,875 | $ 271,182 | ||
Sale and Leaseback Transaction, Gain (Loss), Net | $ 22,300 | |||
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) $ in Millions | 6 Months Ended |
Jul. 13, 2024 USD ($) | |
Stock Repurchases: [Abstract] | |
Stock Repurchase Program, Authorized Amount | $ 2,700 |
Treasury Stock, Shares, Acquired as Part of Authorized Plan | any |
Share Repurchase Program, Remaining Authorized Repurchase Amount | $ 947.3 |
Share Repurchase Program [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 2,700 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 13, 2024 | Jul. 15, 2023 | Jul. 13, 2024 | Jul. 15, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 44,991 | $ 78,577 | $ 85,003 | $ 126,900 |
Basic weighted-average common shares (in shares) | 59,633 | 59,451 | 59,590 | 59,384 |
Dilutive impact of share-based awards (in shares) | 272 | 153 | 278 | 186 |
Diluted weighted-average common shares (in shares) | 59,905 | 59,604 | 59,868 | 59,570 |
Basic earnings per common share (in dollars per share) | $ 0.75 | $ 1.32 | $ 1.43 | $ 2.14 |
Diluted earnings per common share (in dollars per share) | $ 0.75 | $ 1.32 | $ 1.42 | $ 2.13 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net Income (Loss) Attributable to Parent | $ 44,991 | $ 78,577 | $ 85,003 | $ 126,900 |
Weighted-average common shares outstanding | 59,633 | 59,451 | 59,590 | 59,384 |
Dilutive impact of share-based awards (in shares) | 272 | 153 | 278 | 186 |
Weighted-average common shares outstanding | 59,905 | 59,604 | 59,868 | 59,570 |
Basic earnings per common share (in dollars per share) | $ 0.75 | $ 1.32 | $ 1.43 | $ 2.14 |
Earnings Per Share, Diluted | $ 0.75 | $ 1.32 | $ 1.42 | $ 2.13 |
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) | 491 | 402 | 385 | 289 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended |
Jul. 13, 2024 USD ($) $ / shares shares | Jul. 13, 2024 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted (in shares) | shares | 9,800 | 203,500 |
Weighted-average fair value of stock options granted | $ / shares | $ 25.48 | $ 31.88 |
Tax benefit from compensation expense | $ | $ 2.7 | $ 6.6 |
Unrecognized compensation expense | $ | $ 100.3 | $ 100.3 |
Unrecognized compensation expense, period for recognition | 1 year 8 months 12 days | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period (in shares) | shares | 49,400 | 549,500 |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 64.16 | $ 78.01 |
Market-based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period (in shares) | shares | 149,200 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 113.31 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options, Valuation Assumptions (Details) | 3 Months Ended | 6 Months Ended |
Jul. 13, 2024 | Jul. 13, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 4.20% | |
Expected term | 6 years | 6 years |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 42.60% | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 41.60% | |
Expected volatility | 41.60% | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate, Maximum | 1.50% | |
Expected dividend yield | 1.40% | 1.40% |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 4.10% | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 4.20% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | Aug. 22, 2024 USD ($) |
Subsequent Event [Line Items] | |
Disposal Group, Including Discontinued Operation, Consideration | $ 1,500 |
Proceeds from Divestiture of Businesses | 1,200 |
Disposal Group, Including Discontinued Operation, Consideration | 1,500 |
Proceeds from Divestiture of Businesses | $ 1,200 |
Immaterial Restatement of Pri_2
Immaterial Restatement of Prior Period Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jul. 13, 2024 | Jul. 15, 2023 | Jul. 13, 2024 | Jul. 15, 2023 | Apr. 20, 2024 | Dec. 30, 2023 | Apr. 22, 2023 | Dec. 31, 2022 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 479,418 | $ 275,226 | $ 479,418 | $ 275,226 | $ 503,471 | $ 270,805 | ||
Receivables, net | 847,609 | 847,609 | 800,141 | |||||
Inventories | 4,903,490 | 4,903,490 | 4,857,702 | |||||
Other current assets | 229,623 | 229,623 | 215,707 | |||||
Assets, Current | 6,460,140 | 6,460,140 | 6,377,021 | |||||
Assets | 12,289,806 | 12,289,806 | 12,276,326 | |||||
Accounts payable | 4,048,321 | 4,048,321 | 4,177,974 | |||||
Accrued expenses | 694,970 | 694,970 | 671,237 | |||||
Liabilities, Current | 5,256,774 | 5,256,774 | 5,307,405 | |||||
Deferred income taxes | 375,658 | 375,658 | 362,542 | |||||
Other Liabilities, Noncurrent | 85,681 | 85,681 | 84,524 | |||||
Liabilities | 9,683,054 | 9,683,054 | 9,756,598 | |||||
Accumulated other comprehensive loss | (44,531) | (44,531) | (52,232) | |||||
Retained earnings | 4,613,638 | 4,613,638 | 4,559,139 | |||||
Stockholders' Equity Attributable to Parent | 2,606,752 | 2,642,654 | 2,606,752 | 2,642,654 | $ 2,564,650 | 2,519,728 | $ 2,562,720 | 2,599,192 |
Liabilities and Equity | 12,289,806 | 12,289,806 | 12,276,326 | |||||
Cost of sales, including purchasing and warehousing costs | 1,568,745 | 1,545,611 | 3,545,924 | 3,501,277 | ||||
Gross Profit | 1,114,308 | 1,140,455 | 2,543,383 | 2,602,382 | ||||
Selling, general and administrative expenses | 1,042,557 | 1,014,495 | 2,385,610 | 2,378,484 | ||||
Operating Income (Loss) | 71,751 | 125,960 | 157,773 | 223,898 | ||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 62,094 | 106,775 | 121,950 | 174,320 | ||||
Provision for income taxes | 17,103 | 28,198 | 36,947 | 47,420 | ||||
Net Income (Loss) Attributable to Parent | 44,991 | 78,577 | 85,003 | 126,900 | ||||
Provision for deferred income taxes | 13,634 | 21,497 | ||||||
Other | 2,076 | 1,628 | ||||||
Receivables, net | (49,546) | (97,022) | ||||||
Inventories | (53,472) | (148,918) | ||||||
Accounts payable | (125,351) | (319,785) | ||||||
Accrued expenses | 33,166 | 118,781 | ||||||
Other assets and liabilities, net | 2,853 | (60,836) | ||||||
Net Cash Provided by (Used in) Operating Activities | 87,814 | (167,131) | ||||||
Proceeds from (Payments for) Other Financing Activities | (1,143) | (4,531) | ||||||
Net Cash Provided by (Used in) Financing Activities | (42,993) | 313,945 | ||||||
Effect of exchange rate changes on cash | 10,751 | 949 | ||||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (24,053) | 4,421 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 1,949 | 7,262 | 7,789 | 7,829 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 7,224 | 7,988 | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 46,910 | $ 85,801 | $ 92,704 | $ 134,888 | ||||
Basic earnings per common share (in dollars per share) | $ 0.75 | $ 1.32 | $ 1.43 | $ 2.14 | ||||
Earnings Per Share, Diluted | $ 0.75 | $ 1.32 | $ 1.42 | $ 2.13 | ||||
Proceeds from Issuance of Common Stock | $ 1,788 | $ 2,060 | ||||||
Retained Earnings | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' Equity Attributable to Parent | $ 4,613,638 | $ 4,686,518 | 4,613,638 | 4,686,518 | 4,583,975 | 4,559,139 | 4,623,832 | 4,665,087 |
Net Income (Loss) Attributable to Parent | 44,991 | 78,577 | 85,003 | 126,900 | ||||
Accumulated Other Comprehensive Loss | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' Equity Attributable to Parent | $ (44,531) | (36,707) | $ (44,531) | (36,707) | $ (46,450) | $ (52,232) | (43,931) | (44,695) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 7,224 | 7,988 | ||||||
Previously Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 277,064 | 277,064 | 269,282 | |||||
Stockholders' Equity Attributable to Parent | 2,723,187 | 2,723,187 | 2,636,161 | 2,678,281 | ||||
Cost of sales, including purchasing and warehousing costs | 1,537,997 | 3,484,927 | ||||||
Gross Profit | 1,148,069 | 2,618,732 | ||||||
Selling, general and administrative expenses | 1,013,701 | 2,394,365 | ||||||
Operating Income (Loss) | 134,368 | 224,367 | ||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 115,183 | 174,789 | ||||||
Provision for income taxes | 29,821 | 46,776 | ||||||
Net Income (Loss) Attributable to Parent | 85,362 | 128,013 | ||||||
Provision for deferred income taxes | 16,249 | |||||||
Other | (1,170) | |||||||
Receivables, net | 93,539 | |||||||
Inventories | 145,148 | |||||||
Accounts payable | (346,808) | |||||||
Accrued expenses | 120,888 | |||||||
Other assets and liabilities, net | 36,008 | |||||||
Net Cash Provided by (Used in) Operating Activities | (164,559) | |||||||
Proceeds from (Payments for) Other Financing Activities | (4,073) | |||||||
Net Cash Provided by (Used in) Financing Activities | 314,403 | |||||||
Effect of exchange rate changes on cash | 1,280 | |||||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 7,782 | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 7,569 | 8,160 | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 7,531 | 8,319 | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 92,893 | $ 136,332 | ||||||
Basic earnings per common share (in dollars per share) | $ 1.44 | $ 2.16 | ||||||
Earnings Per Share, Diluted | $ 1.43 | $ 2.15 | ||||||
Proceeds from Issuance of Common Stock | $ 2,100 | |||||||
Previously Reported | Retained Earnings | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' Equity Attributable to Parent | $ 4,767,168 | 4,767,168 | 4,697,697 | 4,744,624 | ||||
Previously Reported | Accumulated Other Comprehensive Loss | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' Equity Attributable to Parent | (36,824) | (36,824) | (44,355) | (45,143) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 7,531 | 8,319 | ||||||
Revision of Prior Period, Adjustment | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (1,838) | (1,838) | 1,523 | |||||
Stockholders' Equity Attributable to Parent | (80,533) | (80,533) | (73,441) | (79,089) | ||||
Cost of sales, including purchasing and warehousing costs | 7,614 | 16,350 | ||||||
Gross Profit | (7,614) | (16,350) | ||||||
Selling, general and administrative expenses | 794 | (15,881) | ||||||
Operating Income (Loss) | (8,408) | (469) | ||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (8,408) | (469) | ||||||
Provision for income taxes | (1,623) | 644 | ||||||
Net Income (Loss) Attributable to Parent | (6,785) | (1,113) | ||||||
Provision for deferred income taxes | 5,248 | |||||||
Other | (458) | |||||||
Receivables, net | 3,483 | |||||||
Inventories | 3,770 | |||||||
Accounts payable | 27,023 | |||||||
Accrued expenses | (2,107) | |||||||
Other assets and liabilities, net | 24,828 | |||||||
Net Cash Provided by (Used in) Operating Activities | (2,572) | |||||||
Proceeds from (Payments for) Other Financing Activities | (458) | |||||||
Net Cash Provided by (Used in) Financing Activities | (458) | |||||||
Effect of exchange rate changes on cash | (331) | |||||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (3,361) | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (307) | (331) | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (307) | (331) | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (7,092) | $ (1,444) | ||||||
Basic earnings per common share (in dollars per share) | $ (0.12) | $ (0.02) | ||||||
Earnings Per Share, Diluted | $ (0.11) | $ (0.02) | ||||||
Proceeds from Issuance of Common Stock | $ 0 | |||||||
Revision of Prior Period, Adjustment | Retained Earnings | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' Equity Attributable to Parent | $ (80,650) | (80,650) | (73,865) | (79,537) | ||||
Net Income (Loss) Attributable to Parent | (6,785) | (1,113) | ||||||
Revision of Prior Period, Adjustment | Accumulated Other Comprehensive Loss | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' Equity Attributable to Parent | 117 | 117 | $ 424 | $ 448 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | $ (307) | $ (331) |