Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 20, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-16125 | ||
Entity Registrant Name | FASTENAL CO | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-0948415 | ||
Entity Address, Address Line One | 2001 Theurer Boulevard | ||
Entity Address, City or Town | Winona | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55987-1500 | ||
City Area Code | 507 | ||
Local Phone Number | 454-5374 | ||
Title of 12(b) Security | Common stock, par value $.01 per share | ||
Trading Symbol | FAST | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 28,635,820,712 | ||
Entity Common Stock, Shares Outstanding (in shares) | 570,833,585 | ||
Entity Central Index Key | 0000815556 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Minneapolis, MN |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 230.1 | $ 236.2 |
Trade accounts receivable, net of allowance for credit losses of $8.3 and $12.0, respectively | 1,013.2 | 900.2 |
Inventories | 1,708 | 1,523.6 |
Prepaid income taxes | 8.1 | 8.5 |
Other current assets | 165.4 | 188.1 |
Total current assets | 3,124.8 | 2,856.6 |
Property and equipment, net | 1,010 | 1,019.2 |
Operating lease right-of-use assets | 243 | 242.3 |
Other assets | 170.8 | 180.9 |
Total assets | 4,548.6 | 4,299 |
Current liabilities: | ||
Current portion of debt | 201.8 | 60 |
Accounts payable | 255 | 233.1 |
Accrued expenses | 241.1 | 298.3 |
Current portion of operating lease liabilities | 91.9 | 90.8 |
Total current liabilities | 789.8 | 682.2 |
Long-term debt | 353.2 | 330 |
Operating lease liabilities | 155.2 | 156 |
Deferred income taxes | 83.7 | 88.6 |
Other long-term liabilities | 3.5 | 0 |
Commitments and contingencies (Notes 5, 8, 9, and 10) | ||
Stockholders' equity: | ||
Preferred stock: $0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock: $0.01 par value, 800,000,000 shares authorized, 570,811,674 and 575,464,682 shares issued and outstanding, respectively | 5.7 | 5.8 |
Additional paid-in capital | 3.6 | 96.2 |
Retained earnings | 3,218.7 | 2,970.9 |
Accumulated other comprehensive loss | (64.8) | (30.7) |
Total stockholders' equity | 3,163.2 | 3,042.2 |
Total liabilities and stockholders' equity | $ 4,548.6 | $ 4,299 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Trade accounts receivable, allowance for credit losses | $ 8.3 | $ 12 |
Preferred stock | ||
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Authorized (in shares) | 5,000,000 | 5,000,000 |
Issued (in shares) | 0 | 0 |
Outstanding (in shares) | 0 | 0 |
Common stock | ||
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Authorized (in shares) | 800,000,000 | 800,000,000 |
Issued (in shares) | 570,811,674 | 575,464,682 |
Outstanding (in shares) | 570,811,674 | 575,464,682 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 6,980.6 | $ 6,010.9 | $ 5,647.3 |
Cost of sales | 3,764.8 | 3,233.7 | 3,079.5 |
Gross profit | 3,215.8 | 2,777.2 | 2,567.8 |
Operating and administrative expenses | 1,762.2 | 1,559.8 | 1,426 |
Operating income | 1,453.6 | 1,217.4 | 1,141.8 |
Interest income | 0.7 | 0.1 | 0.6 |
Interest expense | (14.3) | (9.7) | (9.7) |
Earnings before income taxes | 1,440 | 1,207.8 | 1,132.7 |
Income tax expense | 353.1 | 282.8 | 273.6 |
Net earnings | $ 1,086.9 | $ 925 | $ 859.1 |
Basic net earnings per share (in dollars per share) | $ 1.89 | $ 1.61 | $ 1.50 |
Diluted net earnings per share (in dollars per share) | $ 1.89 | $ 1.60 | $ 1.49 |
Basic weighted average shares outstanding (in shares) | 573,777,790 | 574,808,030 | 573,778,761 |
Diluted weighted average shares outstanding (in shares) | 575,623,114 | 577,117,056 | 575,671,954 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 1,086.9 | $ 925 | $ 859.1 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustments (net of tax of $0.0 in 2022, 2021, and 2020) | (34.1) | (9.5) | 17.2 |
Comprehensive income | $ 1,052.8 | $ 915.5 | $ 876.3 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive (loss) income |
Balance at beginning of year at Dec. 31, 2019 | $ 5.7 | $ 64.4 | $ 2,633.9 | $ (38.4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock options exercised | 0 | 41 | |||
Purchases of common stock | (52) | 0 | |||
Stock-based compensation | 5.7 | ||||
Net earnings | $ 859.1 | 859.1 | |||
Cash dividends paid | (803.4) | ||||
Translation adjustment upon merger of foreign subsidiary | 0 | ||||
Other comprehensive (loss) income | 17.2 | ||||
Balance at end of year at Dec. 31, 2020 | $ 2,733.2 | 5.7 | 59.1 | 2,689.6 | (21.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cash dividends paid per share of common stock (in dollars per share) | $ 1.40 | ||||
Stock options exercised | 0.1 | 31.5 | |||
Purchases of common stock | 0 | 0 | |||
Stock-based compensation | 5.6 | ||||
Net earnings | $ 925 | 925 | |||
Cash dividends paid | (643.7) | ||||
Translation adjustment upon merger of foreign subsidiary | 0 | ||||
Other comprehensive (loss) income | (9.5) | ||||
Balance at end of year at Dec. 31, 2021 | $ 3,042.2 | 5.8 | 96.2 | 2,970.9 | (30.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cash dividends paid per share of common stock (in dollars per share) | $ 1.12 | ||||
Stock options exercised | (0.1) | 9.3 | |||
Purchases of common stock | (109.1) | (128.7) | |||
Stock-based compensation | 7.2 | ||||
Net earnings | $ 1,086.9 | 1,086.9 | |||
Cash dividends paid | (711.3) | ||||
Translation adjustment upon merger of foreign subsidiary | 0.9 | ||||
Other comprehensive (loss) income | (34.1) | ||||
Balance at end of year at Dec. 31, 2022 | $ 3,163.2 | $ 5.7 | $ 3.6 | $ 3,218.7 | $ (64.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cash dividends paid per share of common stock (in dollars per share) | $ 1.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net earnings | $ 1,086.9 | $ 925 | $ 859.1 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation of property and equipment | 165.9 | 159.9 | 153.3 |
Loss (gain) on sale of property and equipment | 1.1 | (1.1) | (1.4) |
Bad debt (recoveries) expense | (1.8) | 2.5 | 7.5 |
Deferred income taxes | (4.9) | (13.7) | 2.9 |
Stock-based compensation | 7.2 | 5.6 | 5.7 |
Amortization of intangible assets | 10.7 | 10.8 | 9.1 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (119.8) | (135.2) | (29.7) |
Inventories | (198) | (189.5) | 36 |
Other current assets | 22.7 | (47.8) | 17.1 |
Accounts payable | 21.9 | 26.1 | 14.2 |
Accrued expenses | (57.2) | 26.2 | 20.6 |
Income taxes | 0.4 | (1.8) | 10 |
Other | 5.9 | 3.1 | (2.6) |
Net cash provided by operating activities | 941 | 770.1 | 1,101.8 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (173.8) | (156.6) | (168.1) |
Proceeds from sale of property and equipment | 11.4 | 8.4 | 10.6 |
Cash paid for acquisition | 0 | 0 | (125) |
Other | (0.6) | (0.3) | 0.8 |
Net cash used in investing activities | (163) | (148.5) | (281.7) |
Cash flows from financing activities: | |||
Proceeds from debt obligations | 1,795 | 525 | 1,000 |
Payments against debt obligations | (1,630) | (540) | (940) |
Proceeds from exercise of stock options | 9.2 | 31.6 | 41 |
Purchases of common stock | (237.8) | 0 | (52) |
Cash dividends paid | (711.3) | (643.7) | (803.4) |
Net cash used in financing activities | (774.9) | (627.1) | (754.4) |
Effect of exchange rate changes on cash and cash equivalents | (9.2) | (4) | 5.1 |
Net (decrease) increase in cash and cash equivalents | (6.1) | (9.5) | 70.8 |
Cash and cash equivalents at beginning of year | 236.2 | 245.7 | 174.9 |
Cash and cash equivalents at end of year | 230.1 | 236.2 | 245.7 |
Supplemental information: | |||
Cash paid for interest | 13.3 | 9.9 | 8.4 |
Net cash paid for income taxes | $ 354.1 | $ 294 | $ 260.1 |
Business Overview and Summary o
Business Overview and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Business Overview and Summary of Significant Accounting Policies | Note 1. Business Overview and Summary of Significant Accounting Policies Business Overview Fastenal is a leader in the wholesale distribution of industrial and construction supplies. We distribute these supplies through a network of branches and Onsite locations. Collectively, we refer to our branches and Onsite locations as in-market locations. We have approximately 3,300 in-market locations located primarily in North America. Principles of Consolidation The consolidated financial statements include the accounts of Fastenal Company and its subsidiaries (collectively, referred to as Fastenal or by terms such as we, our, or us). All material intercompany balances and transactions have been eliminated in consolidation. Revenue Recognition Net sales include products and shipping and handling charges, net of estimates for product returns and any related sales incentives. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring control of the promised products to the customer, with the majority of revenue recognized at the point in time the customer obtains control of the products. We recognize revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. We estimate product returns based on historical return rates. Using probability assessments, which are based on known inputs at year-end, we estimate sales incentives expected to be paid over the term of the contract. The majority of our contracts have a single performance obligation and are short term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Accounts Receivable Credit is extended based upon an evaluation of the customer's financial condition. Accounts receivable are stated at their estimated net realizable value. The allowance for credit losses is based on an income statement approach which adjusts the ending balance sheet to take into consideration expected losses over the contractual lives of the receivables, considering factors such as historical data as a basis for future expected losses. Foreign Currency Translation and Transactions The functional currency of our foreign operations is typically the applicable local currency. The functional currency is translated into United States dollars for balance sheet accounts, except retained earnings, using current exchange rates as of the balance sheet date, for retained earnings at historical exchange rates, and for revenue and expense accounts using a weighted average exchange rate during the applicable period. The translation adjustments are deferred as a separate component of stockholders' equity captioned accumulated other comprehensive income (loss). Gains or losses resulting from transactions denominated in foreign currencies are included in cost of sales or operating and administrative expenses. Cash and Cash Equivalents We consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Inventories Inventories, consisting of finished goods merchandise held for resale, are stated at the lower of cost (first in, first out method) or net realizable value. We record valuation adjustments for excess, slow-moving, and obsolete inventory that are equal to the difference between the cost and estimated net realizable value for that inventory. These estimates are based on a review and comparison of the current inventory levels to projected and historical sales of inventory. Property and Equipment Property and equipment are stated at cost. Depreciation on property and equipment is provided for using the straight-line method over the anticipated economic useful lives of the related property. Leases We determine if an arrangement contains a lease at inception. Operating leases are included in our operating lease right-of-use (ROU) assets, the current portion of operating lease liabilities, and the operating lease liabilities in our Consolidated Balance Sheets. The ROU assets represent our right to control the use of an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The operating lease ROU assets also include any prepaid lease payments made and exclude lease incentives. Lease expense is recognized on a straight-line basis over the lease term. Many of our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. Our pick-up truck leases typically have a non-cancelable lease term of less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our ROU assets and lease liabilities. Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our ROU assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate. Long-Lived Assets Long-lived assets consist of net property and equipment, operating lease right-of-use assets, prepaid deposits, goodwill, and definite-lived intangible assets, and are reviewed for impairment whenever an event or change in circumstance indicates that the carrying amount of the asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by the asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as necessary. There were no impairments recorded during any of the three years reported in these consolidated financial statements. Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill is reviewed for impairment annually. The identifiable intangible assets are amortized on a straight-line basis over their estimated life. On March 30, 2020, we purchased certain assets of Apex for $125.0, including identifiable intangible assets totaling $123.8 , with a weighted average amortization period of approximately 19.4 years. Accounting Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from those estimates. Insurance Reserves We are self-insured for certain losses relating to workers' compensation, automobile, health, and general liability costs. Specific stop-loss coverage is provided for catastrophic claims in order to limit exposure to significant claims. Self-insurance liabilities are based on our estimate of reported claims and claims incurred but not yet reported. Product Warranties We offer a basic limited warranty for certain of our products. The specific terms and conditions of those warranties vary depending upon the product sold. We typically recoup these costs through product warranties we hold with the original equipment manufacturers. Our warranty expense has historically been minimal. Stock-Based Compensation We estimate the fair value of stock options as of the date of the grant using a Black-Scholes valuation model. Stock-based compensation expense equal to the grant date fair value is recognized on a straight-line basis over the vesting period. Our stock-based compensation expense is recorded in operating and administrative expenses. Income Taxes We account for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits in income tax expense. Earnings Per Share Basic net earnings per share is calculated using net earnings available to common stockholders divided by the weighted average number of shares of common stock outstanding during the year. Diluted net earnings per share is similar to basic net earnings per share except that the weighted average number of shares of common stock outstanding includes the incremental shares assumed to be issued upon the exercise of stock options considered to be 'in-the-money' (i.e., when the market price of our stock is greater than the exercise price of our outstanding stock options). Segment Reporting We have determined that for our North American regions we meet the aggregation criteria outlined in the accounting standards as these regions have similar: (1) economic characteristics, (2) products and services, (3) customers, (4) distribution channels, and (5) regulatory environments. Considering our operations outside of North America represent less than 10% of our net sales, net earnings, or assets, we report as a single business segment. Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to U.S. GAAP on contract modifications, hedging relationships, and other transactions affected by reference rate reform to ease entities' financial reporting burdens as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made, hedging relationships entered into, and other transactions affected by reference rate reform, evaluated on or before December 31, 2022, beginning during the reporting period in which the guidance has been elected. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which extended the date to December 31, 2024. We do not have any receivables, hedging relationships, lease agreements, or debt agreements that reference LIBOR or another reference rate expected to be discontinued. On September 28, 2022, we amended and restated our unsecured revolving credit agreement. At the same time, we also amended our master note agreement. As a result of those amendments, our floating rate debt no longer references a LIBOR based benchmark rate. Therefore, we will not be electing the optional practical expedients associated with this ASU. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 2. Revenue Disaggregation of Revenue The accounting policies of the operations in the various geographic areas are the same as those described in the summary of significant accounting policies. Revenues are attributed to countries based on the selling location from which the sale occurred. During 2022 and 2021, no single customer represented 5% or more of our consolidated net sales. During 2020, we had a single customer that represented 5% of our consolidated net sales, whereas all remaining customers fell below that threshold. Our revenues related to the following geographic areas were as follows for the periods ended December 31: Twelve-month Period 2022 2021 2020 United States $ 5,867.1 5,033.3 4,825.3 Canada and Mexico 884.4 749.0 625.0 North America 6,751.5 5,782.3 5,450.3 All other foreign countries 229.1 228.6 197.0 Total revenues $ 6,980.6 6,010.9 5,647.3 The percentages of our sales by end market were as follows for the periods ended December 31: Twelve-month Period 2022 2021 2020 Manufacturing 72.2 % 68.9 % 62.4 % Non-residential construction 10.3 % 11.1 % 11.3 % Other 17.5 % 20.0 % 26.3 % 100.0 % 100.0 % 100.0 % The percentages of our sales by product line were as follows for the periods ended December 31: Twelve-month Period Type Introduced 2022 2021 2020 Fasteners (1) 1967 34.0 % 33.3 % 29.9 % Tools 1993 8.4 % 8.5 % 8.2 % Cutting tools 1996 5.0 % 5.0 % 4.7 % Hydraulics & pneumatics 1996 6.5 % 6.4 % 5.9 % Material handling 1996 5.7 % 5.6 % 5.1 % Janitorial supplies 1996 8.0 % 8.2 % 9.8 % Electrical supplies 1997 4.4 % 4.3 % 4.1 % Welding supplies 1997 3.9 % 3.8 % 3.5 % Safety supplies 1999 20.8 % 21.2 % 25.5 % Other 3.3 % 3.7 % 3.3 % 100.0 % 100.0 % 100.0 % (1) The fastener product line represents fasteners and miscellaneous supplies. |
Long-Lived Assets
Long-Lived Assets | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Note 3. Long-Lived Assets The accounting policies of the operations in the various geographic areas are the same as those described in the summary of significant accounting policies . Long-lived assets consist of net property and equipment, operating lease right-of-use assets, prepaid deposits, goodwill, and definite-lived intangible assets. Property and equipment at year end consisted of the following: Depreciable Life 2022 2021 Land — $ 67.5 58.3 Buildings and improvements 15 to 40 509.2 501.9 Automated distribution and warehouse equipment 5 to 30 269.2 266.5 Shelving, industrial vending, and equipment 3 to 10 1,283.8 1,211.2 Transportation equipment 3 to 5 85.7 86.6 Construction in progress — 96.0 72.7 2,311.4 2,197.2 Less accumulated depreciation (1,301.4) (1,178.0) Property and equipment, net $ 1,010.0 1,019.2 Our long-lived assets related to the following geographic areas at year end: 2022 2021 United States $ 1,303.4 1,322.9 Canada and Mexico 80.4 85.6 North America 1,383.8 1,408.5 All other foreign countries 40.0 33.9 Total long-lived assets $ 1,423.8 1,442.4 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 4. Accrued Expenses Accrued expenses at year end consisted of the following: 2022 2021 Employee payroll and related taxes $ 12.8 32.3 Employee bonuses and commissions 32.7 37.0 Profit sharing contribution 22.1 17.4 Insurance reserves 40.4 35.7 Indirect taxes 40.3 91.4 Customer promotions and marketing 60.6 56.3 Other 32.2 28.2 Accrued expenses $ 241.1 298.3 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 5. Stockholders' Equity Dividends On January 18, 2023, our board of directors declared a quarterly dividend of $0.35 per share of common stock to be paid in cash on March 2, 2023 to shareholders of record at the close of business on February 2, 2023. We paid aggregate annual cash dividends per share of $1.24 and $1.12 in 2022 and 2021, respectively. In 2020, we paid aggregate annual cash dividends per share of $1.40, which included a special, one-time dividend of $0.40 per share. Stock Options Effective January 3, 2023, the compensation committee of our board of directors granted to our employees options to purchase a total of 1,001,381 shares of our common stock at an exercise price of $48.00 per share. On the same date, certain of our non-employee directors received options to acquire a total of 70,562 shares of our common stock at an exercise price of $48.00 per share. The closing stock price on the effective date of the grants was $47.40 per share. The following tables summarize the details of options granted under our stock option plans that were still outstanding as of December 31, 2022, and the assumptions used to value those grants. All such grants were effective at the close of business on the date of grant. Options Option Exercise Closing Stock December 31, 2022 Date of Grant Options Options January 3, 2022 713,438 $ 62.00 $ 61.980 683,369 53,355 January 4, 2021 741,510 $ 48.00 $ 47.650 671,201 26,643 January 2, 2020 902,263 $ 38.00 $ 37.230 772,002 266,122 January 2, 2019 1,316,924 $ 26.00 $ 25.705 935,052 406,580 January 2, 2018 1,087,936 $ 27.50 $ 27.270 689,133 417,667 January 3, 2017 1,529,578 $ 23.50 $ 23.475 670,372 512,248 April 19, 2016 1,690,880 $ 23.00 $ 22.870 493,803 371,455 April 21, 2015 1,786,440 $ 21.00 $ 20.630 349,910 273,672 April 22, 2014 1,910,000 $ 28.00 $ 25.265 109,894 109,894 Total 11,678,969 5,374,736 2,437,636 Date of Grant Risk-free Expected Life Expected Expected Estimated Fair January 3, 2022 1.3% 5.00 1.7% 28.52 % $ 13.68 January 4, 2021 0.4% 5.00 2.0% 29.17 % $ 9.57 January 2, 2020 1.7% 5.00 2.4% 25.70 % $ 6.81 January 2, 2019 2.5% 5.00 2.9% 23.96 % $ 4.40 January 2, 2018 2.2% 5.00 2.3% 23.45 % $ 5.02 January 3, 2017 1.9% 5.00 2.6% 24.49 % $ 4.20 April 19, 2016 1.3% 5.00 2.6% 26.34 % $ 4.09 April 21, 2015 1.3% 5.00 2.7% 26.84 % $ 3.68 April 22, 2014 1.8% 5.00 2.0% 28.55 % $ 4.79 All of the options in the tables above vest and become exercisable over a period of up to eight years. Generally, each option will terminate approximat ely 10 years after the grant date. The fair value of each share-based option is estimated on the date of grant using a Black-Scholes valuation method that uses the assumptions listed above. The risk-free interest rate is based on the U.S. Treasury rate over the expected life of the option at the time of grant. The expected life is the average length of time over which we expect the employee groups will exercise their options, net of forfeitures, which is based on historical experience with similar grants. The dividend yield is estimated over the expected life of the option based on our current dividend payout, historical dividends paid, and expected future cash dividends. Expected stock volatilities are based on the movement of our stock price over the most recent historical period equivalent to the expected life of the option. A summary of activities under our stock option plans consisted of the following: Options Exercise Price (1) Remaining Life (2) Outstanding as of January 1, 2022 5,173,270 $ 30.23 6.08 Granted 713,438 $ 62.00 9.00 Exercised (346,992) $ 26.78 Cancelled/forfeited (164,980) $ 40.00 Outstanding as of December 31, 2022 5,374,736 $ 34.37 5.66 Exercisable as of December 31, 2022 2,437,636 $ 27.14 4.30 Options Exercise (1) Remaining Life (2) Outstanding as of January 1, 2021 5,914,757 $ 26.73 6.22 Granted 741,510 $ 48.00 9.00 Exercised (1,305,107) $ 24.34 Cancelled/forfeited (177,890) $ 31.22 Outstanding as of December 31, 2021 5,173,270 $ 30.23 6.08 Exercisable as of December 31, 2021 1,693,805 $ 25.11 4.68 (1) Weighted average exercise price. (2) Weighted average remaining contractual life in years. The total intrinsic value of stock options exercised during the years ended December 31, 2022, 2021, and 2020 was $10.2, $38.8, and $26.7, respectively. The intrinsic value represents the difference between the exercise price and fair value of the underlying shares at the date of exercise. At December 31, 2022, there was $14.5 of total unrecognized stock-based compensation expense related to outstanding unvested stock options granted under the employee stock option plan. This expense is expected to be recognized over a weighted average period of 4.07 years. Any future change in estimated forfeitures will impact this amount. The total grant date fair value of stock options vested under our employee stock option plan during 2022, 2021, and 2020 was $5.2, $4.8, and $6.1, respectively. Total stock-based compensation expense related to our employee stock option plan was $7.2, $5.6, and $5.7 for 2022, 2021, and 2020, respectively. Shares Outstanding Shares of common stock outstanding were as follows: 2022 2021 2020 Balance at beginning of year 575,464,682 574,159,575 574,128,911 Stock options exercised 346,992 1,305,107 1,630,664 Purchases of common stock (5,000,000) — (1,600,000) Balance at end of year 570,811,674 575,464,682 574,159,575 Earnings Per Share The following tables present a reconciliation of the denominators used in the computation of basic and diluted earnings per share and a summary of the options to purchase shares of common stock which were excluded from the diluted earnings calculation because they were anti-dilutive: Reconciliation 2022 2021 2020 Basic weighted average shares outstanding 573,777,790 574,808,030 573,778,761 Weighted shares assumed upon exercise of stock options 1,845,324 2,309,026 1,893,193 Diluted weighted average shares outstanding 575,623,114 577,117,056 575,671,954 Summary of Anti-dilutive Options Excluded 2022 2021 2020 Options to purchase shares of common stock 1,335,898 678,310 846,041 Weighted average exercise prices of options $ 55.25 48.00 38.00 Any dilutive impact summarized above related to periods when the average market price of our stock exceeded the exercise price of the potentially dilutive stock options then outstanding. |
Retirement Savings Plan
Retirement Savings Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Savings Plan | Note 6. Retirement Savings PlanThe Fastenal Company and Subsidiaries 401(k) and Employee Stock Ownership Plan covers all of our employees in the United States. Our employees in Canada may participate in a Registered Retirement Savings Plan. The general purpose of both of these plans is to provide additional financial security during retirement by providing employees with an incentive to make regular savings contributions. In addition to the participation of our employees, we make annual profit sharing contributions based on an established formula. The expense recorded under this profit sharing formula was approximately $22.1, $17.4, and $16.2 for 2022, 2021, and 2020, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7. Income Taxes Earnings before income taxes were derived from the following sources: 2022 2021 2020 Domestic $ 1,335.7 1,100.3 1,046.7 Foreign 104.3 107.5 86.0 Earnings before income taxes $ 1,440.0 1,207.8 1,132.7 Components of income tax expense (benefit) were as follows: 2022: Current Deferred Total Federal $ 267.6 (5.0) 262.6 State 58.0 (1.1) 56.9 Foreign 35.0 (1.4) 33.6 Income tax expense $ 360.6 (7.5) 353.1 2021: Current Deferred Total Federal $ 214.3 (11.4) 202.9 State 46.7 (1.7) 45.0 Foreign 34.1 0.8 34.9 Income tax expense $ 295.1 (12.3) 282.8 2020: Current Deferred Total Federal $ 195.4 1.8 197.2 State 47.5 (0.5) 47.0 Foreign 28.1 1.3 29.4 Income tax expense $ 271.0 2.6 273.6 Income tax expense in the accompanying consolidated financial statements differed from the expected expense as follows: 2022 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % U.S. federal income tax expense at statutory rate $ 302.4 253.6 237.9 Increase (decrease) attributed to: State income taxes, net of federal benefit 45.6 34.9 36.3 Other, net 5.1 (5.7) (0.6) Total income tax expense $ 353.1 282.8 273.6 Effective income tax rate 24.5 % 23.4 % 24.2 % The tax effects of temporary differences that give rise to deferred income tax assets and liabilities at year end consisted of the following: 2022 2021 (1) Deferred income tax assets (liabilities): Inventory costing and valuation methods $ 6.7 5.2 Insurance reserves 8.6 7.4 Stock-based compensation 3.6 2.8 Operating lease liabilities 62.6 62.6 Foreign net operating loss and credit carryforwards 2.6 1.4 Foreign valuation allowances (1.8) (1.7) Prepaid royalty 0.3 5.9 Section 174 capitalization 3.4 — Other, deferred tax assets 9.3 10.8 Total deferred income tax assets 95.3 94.4 Property and equipment (102.6) (110.0) Operating lease ROU assets (61.5) (61.3) Other, deferred tax liabilities (4.8) (4.3) Total deferred income tax liabilities (168.9) (175.6) Deferred income tax liabilities $ (73.6) (81.2) (1) The presentation of prior year deferred income tax assets and liabilities has been updated to conform to current period presentation. A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits is as follows: 2022 2021 Balance at beginning of year: $ 7.4 8.8 Increase related to prior year tax positions 3.5 0.3 Increase related to current year tax positions 0.6 0.9 Decrease related to statute of limitation lapses (0.9) (2.6) Settlements (0.5) — Balance at end of year: $ 10.1 7.4 Included in the liability for gross unrecognized tax benefits is an immaterial amount for interest and penalties, both of which we classify as a component of income tax expense. The amount of unrecognized tax benefits that would favorably impact the eff ective tax rate, if recognized, is $8.6 as of December 31, 2022 and $6.5 as of December 31, 2021. We believe it is reasonably possible that a decrease of up to $5.1 in unrecognized tax benefits may be recognized by the end of 2023 as a result of the lapse of the statute of limitations. The 2022 and 2021 liability is included in deferred income taxes in the Consolidated Balance Sheets. We file income tax returns in the United States federal jurisdiction, all states, and various local and foreign jurisdictions. We are no longer subject to income tax examinations by taxing authorities for taxable years before 2019 in the case of United States federal examinations, and with limited exception, before 2017 in the case of foreign, state, and local examinations. In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is zero or very minimal. Accordingly, no deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of our approximately $447.6 of undistributed earnings from foreign subsidiaries to the U.S. as those earnings continue to be permanently reinvested. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Operating Leases | Note 8. Operating Leases We lease space under non-cancelable operating leases for several distribution centers, several manufacturing locations, and certain branch locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. We also lease certain semi-tractors, pick-up trucks, and computer equipment under operating leases. Certain operating leases for pick-up trucks contain residual value guarantee provisions which would generally become due at the expiration of the operating lease agreement if the fair value of the leased vehicles is less than the guaranteed residual value. The aggregate residual value guarantee related to these leases was ap proximately $86.0. We be lieve the likelihood of funding the guarantee obligation under any provision of the operating lease agreements is remote. The cost components of our operating leases were as follows for the periods ended December 31: 2022 2021 2020 Leased Leased Total Leased Leased Total Leased Leased Total Operating lease cost $ 96.8 14.7 111.5 99.7 13.7 113.4 102.5 15.1 117.6 Variable lease cost 9.7 1.5 11.2 10.4 1.3 11.7 7.2 1.5 8.7 Short-term lease cost — 26.6 26.6 — 19.2 19.2 — 23.6 23.6 Total $ 106.5 42.8 149.3 110.1 34.2 144.3 109.7 40.2 149.9 Variable lease costs are excluded from ROU assets and lease liabilities and consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment which are paid based on actual costs incurred by the lessor as well as variable mileage costs related to our leased vehicles. Maturities of our lease liabilities for all operating leases were as follows as of December 31, 2022: Leased Leased Total 2023 $ 84.4 10.1 94.5 2024 63.0 6.6 69.6 2025 42.5 4.4 46.9 2026 24.1 1.5 25.6 2027 11.3 — 11.3 2028 and thereafter 8.5 — 8.5 Total lease payments $ 233.8 22.6 256.4 Less: Imputed interest (8.5) (0.8) (9.3) Present value of lease liabilities $ 225.3 21.8 247.1 The weighted average remaining lease terms and discount rates for all of our operating leases were as follows for the periods ended December 31: Remaining lease term and discount rate: 2022 2021 Weighted average remaining lease term (years) Leased facilities and equipment 3.57 3.53 Leased vehicles 2.66 2.47 Weighted average discount rate Lease facilities and equipment 2.07% 1.79% Leased vehicles 2.47% 1.79% Supplemental cash flow information related to our operating leases was as follows for the periods ended December 31: 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 110.9 112.4 115.8 Leased assets obtained in exchange for new operating lease liabilities 89.4 103.6 99.2 |
Debt Commitments
Debt Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt Commitments | Note 9. Debt Commitments Credit Facility, Notes Payable, and Commitments Debt obligations and letters of credit outstanding at year end consisted of the following: Average Interest Rate at December 31, 2022 Debt Outstanding Maturity 2022 2021 Unsecured revolving credit facility 5.35 % September 28, 2027 $ 225.0 25.0 Senior unsecured promissory notes payable, Series B 2.45 % July 20, 2022 — 35.0 Senior unsecured promissory notes payable, Series C 3.22 % March 1, 2024 60.0 60.0 Senior unsecured promissory notes payable, Series D 2.66 % May 15, 2025 75.0 75.0 Senior unsecured promissory notes payable, Series E 2.72 % May 15, 2027 50.0 50.0 Senior unsecured promissory notes payable, Series F 1.69 % June 24, 2023 70.0 70.0 Senior unsecured promissory notes payable, Series G 2.13 % June 24, 2026 25.0 25.0 Senior unsecured promissory notes payable, Series H 2.50 % June 24, 2030 50.0 50.0 Total 555.0 390.0 Less: Current portion of debt (201.8) (60.0) Long-term debt $ 353.2 330.0 Outstanding letters of credit under unsecured revolving credit facility - contingent obligation $ 36.3 36.3 Unsecured Revolving Credit Facility On September 28, 2022, we amended and restated our unsecured revolving Credit Agreement dated May 1, 2015. The Credit Agreement was amended and restated to, among other things: (1) increase the aggregate revolving credit commitment under the Credit Agreement, (2) extend the revolving credit maturity date to September 28, 2027, (3) provide a benchmark replacement for LIBOR with SOFR, and (4) make certain covenant changes. After giving effect to the amendment and restatement described above, we have an $835.0 committed unsecured revolving credit facility (Credit Facility) with an uncommitted accordion option to increase the aggregate revolving commitment by an additional $365.0 for a total amount of $1,200.0. The Credit Facility includes a committed letter of credit subfacility of $55.0. Any borrowings outstanding under the Credit Facility for which we have the ability and intent to pay using cash within the next 12 months will be classified as a current liability. The Credit Facility contains certain financial and other covenants, and our right to borrow under the Credit Facility is conditioned upon, among other things, our compliance with these covenants. We are currently in compliance with these covenants. Borrowings under the Credit Facility generally bear interest at a rate per annum equal to Daily Simple SOFR plus a 0.10% spread adjustment plus 0.95%. We pay a commitment fee for the unused portion of the Credit Facility. This fee is either 0.10% or 0.125% per annum based on our usage of the Credit Facility. Senior Unsecured Promissory Notes Payable On September 28, 2022, we amended our Master Note Agreement dated July 20, 2016. The Master Note Agreement was amended to, among other things: (1) increase the aggregate principal amount of notes that may be issued under the agreement from time to time, (2) extend the issuance period to September 28, 2027, (3) replace the benchmark rate for any floating rate notes that may be issued in the future under the agreement from LIBOR to SOFR, and (4) make certain changes to covenants. We have issued senior unsecured promissory notes under our master note agreement (the Master Note Agreement) in the aggregate principal amount of $330.0 as of December 31, 2022. Our aggregate borrowing capacity under the Master Note Agreement is $900.0; however, none of the institutional investors party to that agreement are committed to purchase notes thereunder. There is no amortization of these notes prior to their maturity date and interest is payable quarterly. The notes currently issued under our Master Note Agreement, including the maturity date and fixed interest rate per annum of each series of note, are contained in the table above. The Master Note Agreement contains certain financial and other covenants and we are in compliance with these covenants. Principal payments required on our outstanding indebtedness, based on the maturity dates defined within our long-term debt arrangements, for the succeeding five years, are displayed in the table below, as of December 31, 2022: Principal Payments 2023 $ 70.0 2024 60.0 2025 75.0 2026 25.0 2027 50.0 2028 and thereafter 50.0 Total $ 330.0 |
Legal Contingencies
Legal Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Contingencies | Note 10. Legal Contingencies We are involved in certain legal actions, including those that are ordinary routine litigation incidental to our business. The outcomes of these legal actions are not within our complete control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief, that could require significant expenditures or result in lost revenues. We record a liability for these legal actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. As of December 31, 2022, there were no litigation matters that we consider to be probable or reasonably possible to have a material adverse outcome. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events We evaluated all subsequent event activity and concluded that no subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the Notes to Consolidated Financial Statements, with the exception of the dividend declaration and stock option activities disclosed in Note 5. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Years ended December 31, 2022, 2021, and 2020 (Amounts in millions) Description Balance at "Additions/(Reductions)" to "Other" "Less" Balance Year ended December 31, 2022 Allowance for credit losses $ 12.0 (1.8) — 1.9 8.3 Insurance reserves $ 35.7 78.2 (1) — 73.5 (2) 40.4 Year ended December 31, 2021 Allowance for credit losses $ 12.3 2.5 — 2.8 12.0 Insurance reserves $ 41.0 78.6 (1) — 83.9 (2) 35.7 Year ended December 31, 2020 Allowance for credit losses $ 10.9 7.5 — 6.1 12.3 Insurance reserves $ 41.1 72.1 (1) — 72.2 (2) 41.0 (1) Includes costs and expenses incurred for premiums and claims related to health and general insurance. (2) Includes costs and expenses paid for premiums and claims related to health and general insurance. See accompanying Report of Independent Registered Public Accounting Firm incorporated herein by reference. |
Business Overview and Summary_2
Business Overview and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of Fastenal Company and its subsidiaries (collectively, referred to as Fastenal or by terms such as we, our, or us). All material intercompany balances and transactions have been eliminated in consolidation. |
Revenue Recognition | Net sales include products and shipping and handling charges, net of estimates for product returns and any related sales incentives. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring control of the promised products to the customer, with the majority of revenue recognized at the point in time the customer obtains control of the products. We recognize revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. We estimate product returns based on historical return rates. Using probability assessments, which are based on known inputs at year-end, we estimate sales incentives expected to be paid over the term of the contract. The majority of our contracts have a single performance obligation and are short term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. |
Accounts Receivable | Credit is extended based upon an evaluation of the customer's financial condition. Accounts receivable are stated at their estimated net realizable value. The allowance for credit losses is based on an income statement approach which adjusts the ending balance sheet to take into consideration expected losses over the contractual lives of the receivables, considering factors such as historical data as a basis for future expected losses. |
Foreign Currency Translation and Transactions | The functional currency of our foreign operations is typically the applicable local currency. The functional currency is translated into United States dollars for balance sheet accounts, except retained earnings, using current exchange rates as of the balance sheet date, for retained earnings at historical exchange rates, and for revenue and expense accounts using a weighted average exchange rate during the applicable period. The translation adjustments are deferred as a separate component of stockholders' equity captioned accumulated other comprehensive income (loss). Gains or losses resulting from transactions denominated in foreign currencies are included in cost of sales or operating and administrative expenses. |
Cash and Cash Equivalents | We consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. |
Inventories | Inventories, consisting of finished goods merchandise held for resale, are stated at the lower of cost (first in, first out method) or net realizable value. We record valuation adjustments for excess, slow-moving, and obsolete inventory that are equal to the difference between the cost and estimated net realizable value for that inventory. These estimates are based on a review and comparison of the current inventory levels to projected and historical sales of inventory. |
Property and Equipment | Property and equipment are stated at cost. Depreciation on property and equipment is provided for using the straight-line method over the anticipated economic useful lives of the related property. |
Leases | We determine if an arrangement contains a lease at inception. Operating leases are included in our operating lease right-of-use (ROU) assets, the current portion of operating lease liabilities, and the operating lease liabilities in our Consolidated Balance Sheets. The ROU assets represent our right to control the use of an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The operating lease ROU assets also include any prepaid lease payments made and exclude lease incentives. Lease expense is recognized on a straight-line basis over the lease term. Many of our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. Our pick-up truck leases typically have a non-cancelable lease term of less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our ROU assets and lease liabilities. Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our ROU assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term. |
Long-Lived Assets | Long-lived assets consist of net property and equipment, operating lease right-of-use assets, prepaid deposits, goodwill, and definite-lived intangible assets, and are reviewed for impairment whenever an event or change in circumstance indicates that the carrying amount of the asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash |
Long-Lived Assets (Goodwill and Other) | Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill is reviewed for impairment annually. The identifiable intangible assets are amortized on a straight-line basis over their estimated life. |
Accounting Estimates | The preparation of the consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from those estimates. |
Insurance Reserves | We are self-insured for certain losses relating to workers' compensation, automobile, health, and general liability costs. Specific stop-loss coverage is provided for catastrophic claims in order to limit exposure to significant claims. Self-insurance liabilities are based on our estimate of reported claims and claims incurred but not yet reported. |
Product Warranties | We offer a basic limited warranty for certain of our products. The specific terms and conditions of those warranties vary depending upon the product sold. We typically recoup these costs through product warranties we hold with the original equipment manufacturers. Our warranty expense has historically been minimal. |
Stock-Based Compensation | We estimate the fair value of stock options as of the date of the grant using a Black-Scholes valuation model. Stock-based compensation expense equal to the grant date fair value is recognized on a straight-line basis over the vesting period. Our stock-based compensation expense is recorded in operating and administrative expenses. |
Income Taxes | We account for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits in income tax expense. |
Earnings Per Share | Basic net earnings per share is calculated using net earnings available to common stockholders divided by the weighted average number of shares of common stock outstanding during the year. Diluted net earnings per share is similar to basic net earnings per share except that the weighted average number of shares of common stock outstanding includes the incremental shares assumed to be issued upon the exercise of stock options considered to be 'in-the-money' (i.e., when the market price of our stock is greater than the exercise price of our outstanding stock options). |
Segment Reporting | We have determined that for our North American regions we meet the aggregation criteria outlined in the accounting standards as these regions have similar: (1) economic characteristics, (2) products and services, (3) customers, (4) distribution channels, and (5) regulatory environments. Considering our operations outside of North America represent less than 10% of our net sales, net earnings, or assets, we report as a single business segment. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to U.S. GAAP on contract modifications, hedging relationships, and other transactions affected by reference rate reform to ease entities' financial reporting burdens as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made, hedging relationships entered into, and other transactions affected by reference rate reform, evaluated on or before December 31, 2022, beginning during the reporting period in which the guidance has been elected. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which extended the date to December 31, 2024. We do not have any receivables, hedging relationships, lease agreements, or debt agreements that reference LIBOR or another reference rate expected to be discontinued. On September 28, 2022, we amended and restated our unsecured revolving credit agreement. At the same time, we also amended our master note agreement. As a result of those amendments, our floating rate debt no longer references a LIBOR based benchmark rate. Therefore, we will not be electing the optional practical expedients associated with this ASU. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Our revenues related to the following geographic areas were as follows for the periods ended December 31: Twelve-month Period 2022 2021 2020 United States $ 5,867.1 5,033.3 4,825.3 Canada and Mexico 884.4 749.0 625.0 North America 6,751.5 5,782.3 5,450.3 All other foreign countries 229.1 228.6 197.0 Total revenues $ 6,980.6 6,010.9 5,647.3 The percentages of our sales by end market were as follows for the periods ended December 31: Twelve-month Period 2022 2021 2020 Manufacturing 72.2 % 68.9 % 62.4 % Non-residential construction 10.3 % 11.1 % 11.3 % Other 17.5 % 20.0 % 26.3 % 100.0 % 100.0 % 100.0 % The percentages of our sales by product line were as follows for the periods ended December 31: Twelve-month Period Type Introduced 2022 2021 2020 Fasteners (1) 1967 34.0 % 33.3 % 29.9 % Tools 1993 8.4 % 8.5 % 8.2 % Cutting tools 1996 5.0 % 5.0 % 4.7 % Hydraulics & pneumatics 1996 6.5 % 6.4 % 5.9 % Material handling 1996 5.7 % 5.6 % 5.1 % Janitorial supplies 1996 8.0 % 8.2 % 9.8 % Electrical supplies 1997 4.4 % 4.3 % 4.1 % Welding supplies 1997 3.9 % 3.8 % 3.5 % Safety supplies 1999 20.8 % 21.2 % 25.5 % Other 3.3 % 3.7 % 3.3 % 100.0 % 100.0 % 100.0 % (1) The fastener product line represents fasteners and miscellaneous supplies. |
Long-Lived Assets (Tables)
Long-Lived Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment at year end consisted of the following: Depreciable Life 2022 2021 Land — $ 67.5 58.3 Buildings and improvements 15 to 40 509.2 501.9 Automated distribution and warehouse equipment 5 to 30 269.2 266.5 Shelving, industrial vending, and equipment 3 to 10 1,283.8 1,211.2 Transportation equipment 3 to 5 85.7 86.6 Construction in progress — 96.0 72.7 2,311.4 2,197.2 Less accumulated depreciation (1,301.4) (1,178.0) Property and equipment, net $ 1,010.0 1,019.2 |
Schedule of Long-Lived Assets by Geographic Areas | Our long-lived assets related to the following geographic areas at year end: 2022 2021 United States $ 1,303.4 1,322.9 Canada and Mexico 80.4 85.6 North America 1,383.8 1,408.5 All other foreign countries 40.0 33.9 Total long-lived assets $ 1,423.8 1,442.4 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses at year end consisted of the following: 2022 2021 Employee payroll and related taxes $ 12.8 32.3 Employee bonuses and commissions 32.7 37.0 Profit sharing contribution 22.1 17.4 Insurance reserves 40.4 35.7 Indirect taxes 40.3 91.4 Customer promotions and marketing 60.6 56.3 Other 32.2 28.2 Accrued expenses $ 241.1 298.3 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stock Option Plan Activity and Stock Options Granted | The following tables summarize the details of options granted under our stock option plans that were still outstanding as of December 31, 2022, and the assumptions used to value those grants. All such grants were effective at the close of business on the date of grant. Options Option Exercise Closing Stock December 31, 2022 Date of Grant Options Options January 3, 2022 713,438 $ 62.00 $ 61.980 683,369 53,355 January 4, 2021 741,510 $ 48.00 $ 47.650 671,201 26,643 January 2, 2020 902,263 $ 38.00 $ 37.230 772,002 266,122 January 2, 2019 1,316,924 $ 26.00 $ 25.705 935,052 406,580 January 2, 2018 1,087,936 $ 27.50 $ 27.270 689,133 417,667 January 3, 2017 1,529,578 $ 23.50 $ 23.475 670,372 512,248 April 19, 2016 1,690,880 $ 23.00 $ 22.870 493,803 371,455 April 21, 2015 1,786,440 $ 21.00 $ 20.630 349,910 273,672 April 22, 2014 1,910,000 $ 28.00 $ 25.265 109,894 109,894 Total 11,678,969 5,374,736 2,437,636 A summary of activities under our stock option plans consisted of the following: Options Exercise Price (1) Remaining Life (2) Outstanding as of January 1, 2022 5,173,270 $ 30.23 6.08 Granted 713,438 $ 62.00 9.00 Exercised (346,992) $ 26.78 Cancelled/forfeited (164,980) $ 40.00 Outstanding as of December 31, 2022 5,374,736 $ 34.37 5.66 Exercisable as of December 31, 2022 2,437,636 $ 27.14 4.30 Options Exercise (1) Remaining Life (2) Outstanding as of January 1, 2021 5,914,757 $ 26.73 6.22 Granted 741,510 $ 48.00 9.00 Exercised (1,305,107) $ 24.34 Cancelled/forfeited (177,890) $ 31.22 Outstanding as of December 31, 2021 5,173,270 $ 30.23 6.08 Exercisable as of December 31, 2021 1,693,805 $ 25.11 4.68 (1) Weighted average exercise price. (2) Weighted average remaining contractual life in years. |
Fair Value Assumptions for Options Granted | Date of Grant Risk-free Expected Life Expected Expected Estimated Fair January 3, 2022 1.3% 5.00 1.7% 28.52 % $ 13.68 January 4, 2021 0.4% 5.00 2.0% 29.17 % $ 9.57 January 2, 2020 1.7% 5.00 2.4% 25.70 % $ 6.81 January 2, 2019 2.5% 5.00 2.9% 23.96 % $ 4.40 January 2, 2018 2.2% 5.00 2.3% 23.45 % $ 5.02 January 3, 2017 1.9% 5.00 2.6% 24.49 % $ 4.20 April 19, 2016 1.3% 5.00 2.6% 26.34 % $ 4.09 April 21, 2015 1.3% 5.00 2.7% 26.84 % $ 3.68 April 22, 2014 1.8% 5.00 2.0% 28.55 % $ 4.79 |
Schedule of Common Stock Outstanding Roll Forward | Shares of common stock outstanding were as follows: 2022 2021 2020 Balance at beginning of year 575,464,682 574,159,575 574,128,911 Stock options exercised 346,992 1,305,107 1,630,664 Purchases of common stock (5,000,000) — (1,600,000) Balance at end of year 570,811,674 575,464,682 574,159,575 |
Reconciliation of Denominators used in Computation of Basic and Diluted Earnings per Share | The following tables present a reconciliation of the denominators used in the computation of basic and diluted earnings per share and a summary of the options to purchase shares of common stock which were excluded from the diluted earnings calculation because they were anti-dilutive: Reconciliation 2022 2021 2020 Basic weighted average shares outstanding 573,777,790 574,808,030 573,778,761 Weighted shares assumed upon exercise of stock options 1,845,324 2,309,026 1,893,193 Diluted weighted average shares outstanding 575,623,114 577,117,056 575,671,954 |
Anti-Dilutive Options Excluded | Summary of Anti-dilutive Options Excluded 2022 2021 2020 Options to purchase shares of common stock 1,335,898 678,310 846,041 Weighted average exercise prices of options $ 55.25 48.00 38.00 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Earnings Before Income Taxes | Earnings before income taxes were derived from the following sources: 2022 2021 2020 Domestic $ 1,335.7 1,100.3 1,046.7 Foreign 104.3 107.5 86.0 Earnings before income taxes $ 1,440.0 1,207.8 1,132.7 |
Components of Income Tax Expense (Benefit) | Components of income tax expense (benefit) were as follows: 2022: Current Deferred Total Federal $ 267.6 (5.0) 262.6 State 58.0 (1.1) 56.9 Foreign 35.0 (1.4) 33.6 Income tax expense $ 360.6 (7.5) 353.1 2021: Current Deferred Total Federal $ 214.3 (11.4) 202.9 State 46.7 (1.7) 45.0 Foreign 34.1 0.8 34.9 Income tax expense $ 295.1 (12.3) 282.8 2020: Current Deferred Total Federal $ 195.4 1.8 197.2 State 47.5 (0.5) 47.0 Foreign 28.1 1.3 29.4 Income tax expense $ 271.0 2.6 273.6 |
Difference In Income Tax Expense And Expected Expense | Income tax expense in the accompanying consolidated financial statements differed from the expected expense as follows: 2022 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % U.S. federal income tax expense at statutory rate $ 302.4 253.6 237.9 Increase (decrease) attributed to: State income taxes, net of federal benefit 45.6 34.9 36.3 Other, net 5.1 (5.7) (0.6) Total income tax expense $ 353.1 282.8 273.6 Effective income tax rate 24.5 % 23.4 % 24.2 % |
Summary of Temporary Differences That Give Rise to Deferred Income Tax Assets And Liabilities | The tax effects of temporary differences that give rise to deferred income tax assets and liabilities at year end consisted of the following: 2022 2021 (1) Deferred income tax assets (liabilities): Inventory costing and valuation methods $ 6.7 5.2 Insurance reserves 8.6 7.4 Stock-based compensation 3.6 2.8 Operating lease liabilities 62.6 62.6 Foreign net operating loss and credit carryforwards 2.6 1.4 Foreign valuation allowances (1.8) (1.7) Prepaid royalty 0.3 5.9 Section 174 capitalization 3.4 — Other, deferred tax assets 9.3 10.8 Total deferred income tax assets 95.3 94.4 Property and equipment (102.6) (110.0) Operating lease ROU assets (61.5) (61.3) Other, deferred tax liabilities (4.8) (4.3) Total deferred income tax liabilities (168.9) (175.6) Deferred income tax liabilities $ (73.6) (81.2) (1) The presentation of prior year deferred income tax assets and liabilities has been updated to conform to current period presentation. |
Reconciliation of The Beginning and Ending Amount of Total Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits is as follows: 2022 2021 Balance at beginning of year: $ 7.4 8.8 Increase related to prior year tax positions 3.5 0.3 Increase related to current year tax positions 0.6 0.9 Decrease related to statute of limitation lapses (0.9) (2.6) Settlements (0.5) — Balance at end of year: $ 10.1 7.4 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Cost Components of Operating Leases, Weighted Average Lease Terms, Discount Rates, and Supplemental Cash Flow Information | The cost components of our operating leases were as follows for the periods ended December 31: 2022 2021 2020 Leased Leased Total Leased Leased Total Leased Leased Total Operating lease cost $ 96.8 14.7 111.5 99.7 13.7 113.4 102.5 15.1 117.6 Variable lease cost 9.7 1.5 11.2 10.4 1.3 11.7 7.2 1.5 8.7 Short-term lease cost — 26.6 26.6 — 19.2 19.2 — 23.6 23.6 Total $ 106.5 42.8 149.3 110.1 34.2 144.3 109.7 40.2 149.9 The weighted average remaining lease terms and discount rates for all of our operating leases were as follows for the periods ended December 31: Remaining lease term and discount rate: 2022 2021 Weighted average remaining lease term (years) Leased facilities and equipment 3.57 3.53 Leased vehicles 2.66 2.47 Weighted average discount rate Lease facilities and equipment 2.07% 1.79% Leased vehicles 2.47% 1.79% Supplemental cash flow information related to our operating leases was as follows for the periods ended December 31: 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 110.9 112.4 115.8 Leased assets obtained in exchange for new operating lease liabilities 89.4 103.6 99.2 |
Maturities of Lease Liabilities | Maturities of our lease liabilities for all operating leases were as follows as of December 31, 2022: Leased Leased Total 2023 $ 84.4 10.1 94.5 2024 63.0 6.6 69.6 2025 42.5 4.4 46.9 2026 24.1 1.5 25.6 2027 11.3 — 11.3 2028 and thereafter 8.5 — 8.5 Total lease payments $ 233.8 22.6 256.4 Less: Imputed interest (8.5) (0.8) (9.3) Present value of lease liabilities $ 225.3 21.8 247.1 |
Debt Commitments (Tables)
Debt Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations and Letters of Credit Outstanding | Debt obligations and letters of credit outstanding at year end consisted of the following: Average Interest Rate at December 31, 2022 Debt Outstanding Maturity 2022 2021 Unsecured revolving credit facility 5.35 % September 28, 2027 $ 225.0 25.0 Senior unsecured promissory notes payable, Series B 2.45 % July 20, 2022 — 35.0 Senior unsecured promissory notes payable, Series C 3.22 % March 1, 2024 60.0 60.0 Senior unsecured promissory notes payable, Series D 2.66 % May 15, 2025 75.0 75.0 Senior unsecured promissory notes payable, Series E 2.72 % May 15, 2027 50.0 50.0 Senior unsecured promissory notes payable, Series F 1.69 % June 24, 2023 70.0 70.0 Senior unsecured promissory notes payable, Series G 2.13 % June 24, 2026 25.0 25.0 Senior unsecured promissory notes payable, Series H 2.50 % June 24, 2030 50.0 50.0 Total 555.0 390.0 Less: Current portion of debt (201.8) (60.0) Long-term debt $ 353.2 330.0 Outstanding letters of credit under unsecured revolving credit facility - contingent obligation $ 36.3 36.3 |
Schedule of Maturities of Long-term Debt | Principal payments required on our outstanding indebtedness, based on the maturity dates defined within our long-term debt arrangements, for the succeeding five years, are displayed in the table below, as of December 31, 2022: Principal Payments 2023 $ 70.0 2024 60.0 2025 75.0 2026 25.0 2027 50.0 2028 and thereafter 50.0 Total $ 330.0 |
Business Overview and Summary_3
Business Overview and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Mar. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) location | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounting Policies [Abstract] | ||||
Approximate number of in-market locations | location | 3,300 | |||
Non-cancelable lease term, pick-up truck, (less than) | 1 year | |||
Impairment of property and equipment long-lived assets | $ 0 | $ 0 | $ 0 | |
Apex Industrial Technologies LLC | ||||
Asset Acquisition [Line Items] | ||||
Purchase price of assets acquired | $ 125,000,000 | |||
Identifiable intangible assets acquired | $ 123,800,000 | |||
Identifiable intangible assets, weighted average amortization period | 19 years 4 months 24 days |
Revenue - Additional Informatio
Revenue - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue benchmark | Customer concentration risk | |
Concentration Risk [Line Items] | |
Percentage of consolidated net sales, single customer | 5% |
Revenue - Revenues by Geographi
Revenue - Revenues by Geographic Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues by Geographic Areas [Line Items] | |||
Total revenues | $ 6,980.6 | $ 6,010.9 | $ 5,647.3 |
United States | |||
Revenues by Geographic Areas [Line Items] | |||
Total revenues | 5,867.1 | 5,033.3 | 4,825.3 |
Canada and Mexico | |||
Revenues by Geographic Areas [Line Items] | |||
Total revenues | 884.4 | 749 | 625 |
North America | |||
Revenues by Geographic Areas [Line Items] | |||
Total revenues | 6,751.5 | 5,782.3 | 5,450.3 |
All other foreign countries | |||
Revenues by Geographic Areas [Line Items] | |||
Total revenues | $ 229.1 | $ 228.6 | $ 197 |
Revenue - Percentages of Sales
Revenue - Percentages of Sales by End Market (Details) - End Market - Sales | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Percentage of Sales by End Market [Line Items] | |||
Percentage of sales | 100% | 100% | 100% |
Manufacturing | |||
Percentage of Sales by End Market [Line Items] | |||
Percentage of sales | 72.20% | 68.90% | 62.40% |
Non-residential construction | |||
Percentage of Sales by End Market [Line Items] | |||
Percentage of sales | 10.30% | 11.10% | 11.30% |
Other | |||
Percentage of Sales by End Market [Line Items] | |||
Percentage of sales | 17.50% | 20% | 26.30% |
Revenue - Percentages of Sale_2
Revenue - Percentages of Sales by Product Line (Details) - Product Line - Sales | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 100% | 100% | 100% |
Fasteners | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 34% | 33.30% | 29.90% |
Tools | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 8.40% | 8.50% | 8.20% |
Cutting tools | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 5% | 5% | 4.70% |
Hydraulics & pneumatics | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 6.50% | 6.40% | 5.90% |
Material handling | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 5.70% | 5.60% | 5.10% |
Janitorial supplies | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 8% | 8.20% | 9.80% |
Electrical supplies | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 4.40% | 4.30% | 4.10% |
Welding supplies | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 3.90% | 3.80% | 3.50% |
Safety supplies | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 20.80% | 21.20% | 25.50% |
Other | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 3.30% | 3.70% | 3.30% |
Long-Lived Assets - Property An
Long-Lived Assets - Property And Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property and Equipment, Net [Line Items] | ||
Property and equipment | $ 2,311.4 | $ 2,197.2 |
Less accumulated depreciation | (1,301.4) | (1,178) |
Property and equipment, net | 1,010 | 1,019.2 |
Land | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment | 67.5 | 58.3 |
Buildings and improvements | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment | 509.2 | 501.9 |
Automated distribution and warehouse equipment | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment | 269.2 | 266.5 |
Shelving, industrial vending, and equipment | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment | 1,283.8 | 1,211.2 |
Transportation equipment | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment | 85.7 | 86.6 |
Construction in progress | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment | $ 96 | $ 72.7 |
Minimum | Buildings and improvements | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 15 years | |
Minimum | Automated distribution and warehouse equipment | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 5 years | |
Minimum | Shelving, industrial vending, and equipment | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 3 years | |
Minimum | Transportation equipment | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 3 years | |
Maximum | Buildings and improvements | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 40 years | |
Maximum | Automated distribution and warehouse equipment | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 30 years | |
Maximum | Shelving, industrial vending, and equipment | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 10 years | |
Maximum | Transportation equipment | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 5 years |
Long-Lived Assets - Geographic
Long-Lived Assets - Geographic Areas (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Long-Lived Assets by Geographic Areas [Line Items] | ||
Total long-lived Assets | $ 1,423.8 | $ 1,442.4 |
United States | ||
Long-Lived Assets by Geographic Areas [Line Items] | ||
Total long-lived Assets | 1,303.4 | 1,322.9 |
Canada and Mexico | ||
Long-Lived Assets by Geographic Areas [Line Items] | ||
Total long-lived Assets | 80.4 | 85.6 |
North America | ||
Long-Lived Assets by Geographic Areas [Line Items] | ||
Total long-lived Assets | 1,383.8 | 1,408.5 |
All other foreign countries | ||
Long-Lived Assets by Geographic Areas [Line Items] | ||
Total long-lived Assets | $ 40 | $ 33.9 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Employee payroll and related taxes | $ 12.8 | $ 32.3 |
Employee bonuses and commissions | 32.7 | 37 |
Profit sharing contribution | 22.1 | 17.4 |
Insurance reserves | 40.4 | 35.7 |
Indirect taxes | 40.3 | 91.4 |
Customer promotions and marketing | 60.6 | 56.3 |
Other | 32.2 | 28.2 |
Accrued expenses | $ 241.1 | $ 298.3 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | 104 Months Ended | ||||
Jan. 18, 2023 | Jan. 03, 2023 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |||||||
Cash dividends paid per share of common stock (in dollars per share) | $ 1.24 | $ 1.12 | $ 1.40 | ||||
Special cash dividends paid per share of common stock (in dollars per share) | $ 0.40 | ||||||
Options vesting and exercisable period, maximum | 8 years | ||||||
Options termination period | 10 years | ||||||
Total intrinsic value of stock options exercised | $ 10.2 | $ 38.8 | $ 26.7 | ||||
Total unrecognized stock-based compensation expense | $ 14.5 | $ 14.5 | |||||
Weighted average period over which total unrecognized stock-based compensation expense will be recognized | 4 years 25 days | ||||||
Total grant date fair value of stock options vested | $ 5.2 | 4.8 | 6.1 | ||||
Total stock-based compensation expense | $ 7.2 | $ 5.6 | $ 5.7 | ||||
Subsequent Event [Line Items] | |||||||
Options Granted (in shares) | 11,678,969 | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Cash dividends declared per share of common stock (in dollars per share) | $ 0.35 | ||||||
Options Granted (in shares) | 1,001,381 | ||||||
Option Exercise Price (in dollars per share) | $ 48 | ||||||
Closing Stock Price on Date of Grant (in dollars per share) | $ 47.40 | ||||||
Subsequent Event | Non-employee Director Options Elected | |||||||
Subsequent Event [Line Items] | |||||||
Options Granted (in shares) | 70,562 | ||||||
Option Exercise Price (in dollars per share) | $ 48 | ||||||
Closing Stock Price on Date of Grant (in dollars per share) | $ 47.40 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Options Granted) (Details) | 104 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 11,678,969 |
Options Outstanding (in shares) | 5,374,736 |
Options Exercisable (in shares) | 2,437,636 |
January 3, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 713,438 |
Option Exercise Price (in dollars per share) | $ / shares | $ 62 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 61.980 |
Options Outstanding (in shares) | 683,369 |
Options Exercisable (in shares) | 53,355 |
January 4, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 741,510 |
Option Exercise Price (in dollars per share) | $ / shares | $ 48 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 47.650 |
Options Outstanding (in shares) | 671,201 |
Options Exercisable (in shares) | 26,643 |
January 2, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 902,263 |
Option Exercise Price (in dollars per share) | $ / shares | $ 38 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 37.230 |
Options Outstanding (in shares) | 772,002 |
Options Exercisable (in shares) | 266,122 |
January 2, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 1,316,924 |
Option Exercise Price (in dollars per share) | $ / shares | $ 26 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 25.705 |
Options Outstanding (in shares) | 935,052 |
Options Exercisable (in shares) | 406,580 |
January 2, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 1,087,936 |
Option Exercise Price (in dollars per share) | $ / shares | $ 27.50 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 27.270 |
Options Outstanding (in shares) | 689,133 |
Options Exercisable (in shares) | 417,667 |
January 3, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 1,529,578 |
Option Exercise Price (in dollars per share) | $ / shares | $ 23.50 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 23.475 |
Options Outstanding (in shares) | 670,372 |
Options Exercisable (in shares) | 512,248 |
April 19, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 1,690,880 |
Option Exercise Price (in dollars per share) | $ / shares | $ 23 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 22.870 |
Options Outstanding (in shares) | 493,803 |
Options Exercisable (in shares) | 371,455 |
April 21, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 1,786,440 |
Option Exercise Price (in dollars per share) | $ / shares | $ 21 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 20.630 |
Options Outstanding (in shares) | 349,910 |
Options Exercisable (in shares) | 273,672 |
April 22, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 1,910,000 |
Option Exercise Price (in dollars per share) | $ / shares | $ 28 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 25.265 |
Options Outstanding (in shares) | 109,894 |
Options Exercisable (in shares) | 109,894 |
Stockholders' Equity (Fair Valu
Stockholders' Equity (Fair Value Assumptions For Options Granted) (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
January 3, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.30% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 1.70% |
Expected Stock Volatility | 28.52% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 13.68 |
January 4, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 0.40% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2% |
Expected Stock Volatility | 29.17% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 9.57 |
January 2, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.70% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2.40% |
Expected Stock Volatility | 25.70% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 6.81 |
January 2, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 2.50% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2.90% |
Expected Stock Volatility | 23.96% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 4.40 |
January 2, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 2.20% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2.30% |
Expected Stock Volatility | 23.45% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 5.02 |
January 3, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.90% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2.60% |
Expected Stock Volatility | 24.49% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 4.20 |
April 19, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.30% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2.60% |
Expected Stock Volatility | 26.34% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 4.09 |
April 21, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.30% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2.70% |
Expected Stock Volatility | 26.84% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 3.68 |
April 22, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.80% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2% |
Expected Stock Volatility | 28.55% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 4.79 |
Stockholder's Equity (Summary O
Stockholder's Equity (Summary Of Stock Option Plan Activity) (Details) - $ / shares | 12 Months Ended | 104 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Options Outstanding | ||||
Granted (in shares) | 11,678,969 | |||
Exercised (in shares) | (346,992) | (1,305,107) | (1,630,664) | |
Outstanding as of End of Period (in shares) | 5,374,736 | 5,374,736 | ||
Options Exercisable (in shares) | 2,437,636 | 2,437,636 | ||
Stock Option Plan | ||||
Options Outstanding | ||||
Outstanding as of Beginning of Period (in shares) | 5,173,270 | 5,914,757 | ||
Granted (in shares) | 713,438 | 741,510 | ||
Exercised (in shares) | (346,992) | (1,305,107) | ||
Cancelled/forfeited (in shares) | (164,980) | (177,890) | ||
Outstanding as of End of Period (in shares) | 5,374,736 | 5,173,270 | 5,914,757 | 5,374,736 |
Options Exercisable (in shares) | 2,437,636 | 1,693,805 | 2,437,636 | |
Exercise Price | ||||
Outstanding as of Beginning of Period (in dollars per share) | $ 30.23 | $ 26.73 | ||
Granted (in dollars per share) | 62 | 48 | ||
Exercised (in dollars per share) | 26.78 | 24.34 | ||
Cancelled/forfeited (in dollars per share) | 40 | 31.22 | ||
Outstanding as of End of Period (in dollars per share) | 34.37 | 30.23 | $ 26.73 | $ 34.37 |
Exercisable (in dollars per share) | $ 27.14 | $ 25.11 | $ 27.14 | |
Remaining Life | ||||
Outstanding | 5 years 7 months 28 days | 6 years 29 days | 6 years 2 months 19 days | |
Granted | 9 years | 9 years | ||
Exercisable | 4 years 3 months 18 days | 4 years 8 months 4 days |
Stockholders' Equity (Shares Ou
Stockholders' Equity (Shares Outstanding) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares Outstanding [Roll Forward] | |||
Balance at beginning of year (in shares) | 575,464,682 | 574,159,575 | 574,128,911 |
Stock options exercised (in shares) | 346,992 | 1,305,107 | 1,630,664 |
Purchases of common stock (in shares) | (5,000,000) | 0 | (1,600,000) |
Balance at end of year (in shares) | 570,811,674 | 575,464,682 | 574,159,575 |
Stockholders' Equity (Reconcili
Stockholders' Equity (Reconciliation Of Denominators Used In Computation Of Basic And Diluted Earnings Per Share) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |||
Basic weighted average shares outstanding (in shares) | 573,777,790 | 574,808,030 | 573,778,761 |
Weighted shares assumed upon exercise of stock options (in shares) | 1,845,324 | 2,309,026 | 1,893,193 |
Diluted weighted average shares outstanding (in shares) | 575,623,114 | 577,117,056 | 575,671,954 |
Stockholders' Equity (Summary O
Stockholders' Equity (Summary Of Anti-Dilutive Options Excluded) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |||
Options to purchase shares of common stock (in shares) | 1,335,898 | 678,310 | 846,041 |
Weighted average exercise prices of options (in dollars per share) | $ 55.25 | $ 48 | $ 38 |
Retirement Savings Plan (Narrat
Retirement Savings Plan (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Expense related to contribution to employees' retirement accounts | $ 22.1 | $ 17.4 | $ 16.2 |
Income Taxes (Earnings Before I
Income Taxes (Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 1,335.7 | $ 1,100.3 | $ 1,046.7 |
Foreign | 104.3 | 107.5 | 86 |
Earnings before income taxes | $ 1,440 | $ 1,207.8 | $ 1,132.7 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ 267.6 | $ 214.3 | $ 195.4 |
State | 58 | 46.7 | 47.5 |
Foreign | 35 | 34.1 | 28.1 |
Income tax expense | 360.6 | 295.1 | 271 |
Deferred | |||
Federal | (5) | (11.4) | 1.8 |
State | (1.1) | (1.7) | (0.5) |
Foreign | (1.4) | 0.8 | 1.3 |
Income tax expense | (7.5) | (12.3) | 2.6 |
Total | |||
Federal | 262.6 | 202.9 | 197.2 |
State | 56.9 | 45 | 47 |
Foreign | 33.6 | 34.9 | 29.4 |
Total income tax expense | $ 353.1 | $ 282.8 | $ 273.6 |
Income Taxes (Difference In Inc
Income Taxes (Difference In Income Tax Expense And Expected Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21% | 21% | 21% |
U.S. federal income tax expense at statutory rate | $ 302.4 | $ 253.6 | $ 237.9 |
State income taxes, net of federal benefit | 45.6 | 34.9 | 36.3 |
Other, net | 5.1 | (5.7) | (0.6) |
Total income tax expense | $ 353.1 | $ 282.8 | $ 273.6 |
Effective income tax rate | 24.50% | 23.40% | 24.20% |
Income Taxes (Summary Of Tempor
Income Taxes (Summary Of Temporary Differences That Give Rise To Deferred Income Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income tax assets (liabilities): | ||
Inventory costing and valuation methods | $ 6.7 | $ 5.2 |
Insurance reserves | 8.6 | 7.4 |
Stock-based compensation | 3.6 | 2.8 |
Operating lease liabilities | 62.6 | 62.6 |
Foreign net operating loss and credit carryforwards | 2.6 | 1.4 |
Foreign valuation allowances | (1.8) | (1.7) |
Prepaid royalty | 0.3 | 5.9 |
Section 174 capitalization | 3.4 | 0 |
Other, deferred tax assets | 9.3 | 10.8 |
Total deferred income tax assets | 95.3 | 94.4 |
Property and equipment | (102.6) | (110) |
Operating lease ROU assets | (61.5) | (61.3) |
Other, deferred tax liabilities | (4.8) | (4.3) |
Total deferred income tax liabilities | (168.9) | (175.6) |
Deferred income tax liabilities | $ (73.6) | $ (81.2) |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of The Beginning And Ending Amount Of Total Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year: | $ 7.4 | $ 8.8 |
Increase related to prior year tax positions | 3.5 | 0.3 |
Increase related to current year tax positions | 0.6 | 0.9 |
Decrease related to statute of limitation lapses | (0.9) | (2.6) |
Settlements | (0.5) | 0 |
Balance at end of year: | $ 10.1 | $ 7.4 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits that would favorably impact effective tax rate | $ 8.6 | $ 6.5 | |
Undistributed earnings from foreign subsidiaries | $ 447.6 | ||
Forecast | |||
Income Tax Contingency [Line Items] | |||
Decrease in unrecognized tax benefits, reasonably possible | $ 5.1 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
Aggregate residual value guarantee of pick-up leases | $ 86 |
Operating leases - Cost Compone
Operating leases - Cost Components of Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 111.5 | $ 113.4 | $ 117.6 |
Variable lease cost | 11.2 | 11.7 | 8.7 |
Short-term lease cost | 26.6 | 19.2 | 23.6 |
Total | 149.3 | 144.3 | 149.9 |
Leased Facilities and Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | 96.8 | 99.7 | 102.5 |
Variable lease cost | 9.7 | 10.4 | 7.2 |
Short-term lease cost | 0 | 0 | 0 |
Total | 106.5 | 110.1 | 109.7 |
Leased Vehicles | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | 14.7 | 13.7 | 15.1 |
Variable lease cost | 1.5 | 1.3 | 1.5 |
Short-term lease cost | 26.6 | 19.2 | 23.6 |
Total | $ 42.8 | $ 34.2 | $ 40.2 |
Operating Leases - Maturities o
Operating Leases - Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Lessee, Lease, Description [Line Items] | |
2023 | $ 94.5 |
2024 | 69.6 |
2025 | 46.9 |
2026 | 25.6 |
2027 | 11.3 |
2028 and thereafter | 8.5 |
Total lease payments | 256.4 |
Less: Imputed interest | (9.3) |
Present value of lease liabilities | 247.1 |
Leased Facilities and Equipment | |
Lessee, Lease, Description [Line Items] | |
2023 | 84.4 |
2024 | 63 |
2025 | 42.5 |
2026 | 24.1 |
2027 | 11.3 |
2028 and thereafter | 8.5 |
Total lease payments | 233.8 |
Less: Imputed interest | (8.5) |
Present value of lease liabilities | 225.3 |
Leased Vehicles | |
Lessee, Lease, Description [Line Items] | |
2023 | 10.1 |
2024 | 6.6 |
2025 | 4.4 |
2026 | 1.5 |
2027 | 0 |
2028 and thereafter | 0 |
Total lease payments | 22.6 |
Less: Imputed interest | (0.8) |
Present value of lease liabilities | $ 21.8 |
Operating Leases - Weighted Ave
Operating Leases - Weighted Average Lease term and Discount Rates (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leased Facilities and Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining lease term (years) | 3 years 6 months 25 days | 3 years 6 months 10 days |
Weighted average discount rate | 2.07% | 1.79% |
Leased Vehicles | ||
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining lease term (years) | 2 years 7 months 28 days | 2 years 5 months 19 days |
Weighted average discount rate | 2.47% | 1.79% |
Operating Leases - Supplemental
Operating Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash outflow from operating leases | $ 110.9 | $ 112.4 | $ 115.8 |
Leased assets obtained in exchange for new operating lease liabilities | $ 89.4 | $ 103.6 | $ 99.2 |
Debt Commitments - Debt Obligat
Debt Commitments - Debt Obligations and Letters of Credit Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 555 | $ 390 |
Less: Current portion of debt | (201.8) | (60) |
Long-term debt | $ 353.2 | 330 |
Credit Facility | Unsecured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Average Interest Rate, weighted per annum | 5.35% | |
Total | $ 225 | 25 |
Credit Facility | Letter of Credit Subfacility | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit under unsecured revolving credit facility - contingent obligation | 36.3 | 36.3 |
Senior Unsecured Promissory Notes | ||
Debt Instrument [Line Items] | ||
Total | $ 330 | |
Senior Unsecured Promissory Notes | Senior unsecured promissory notes payable, Series B | ||
Debt Instrument [Line Items] | ||
Average Interest Rate, fixed per annum | 2.45% | |
Total | $ 0 | 35 |
Senior Unsecured Promissory Notes | Senior unsecured promissory notes payable, Series C | ||
Debt Instrument [Line Items] | ||
Average Interest Rate, fixed per annum | 3.22% | |
Total | $ 60 | 60 |
Senior Unsecured Promissory Notes | Senior unsecured promissory notes payable, Series D | ||
Debt Instrument [Line Items] | ||
Average Interest Rate, fixed per annum | 2.66% | |
Total | $ 75 | 75 |
Senior Unsecured Promissory Notes | Senior unsecured promissory notes payable, Series E | ||
Debt Instrument [Line Items] | ||
Average Interest Rate, fixed per annum | 2.72% | |
Total | $ 50 | 50 |
Senior Unsecured Promissory Notes | Senior unsecured promissory notes payable, Series F | ||
Debt Instrument [Line Items] | ||
Average Interest Rate, fixed per annum | 1.69% | |
Total | $ 70 | 70 |
Senior Unsecured Promissory Notes | Senior unsecured promissory notes payable, Series G | ||
Debt Instrument [Line Items] | ||
Average Interest Rate, fixed per annum | 2.13% | |
Total | $ 25 | 25 |
Senior Unsecured Promissory Notes | Senior unsecured promissory notes payable, Series H | ||
Debt Instrument [Line Items] | ||
Average Interest Rate, fixed per annum | 2.50% | |
Total | $ 50 | $ 50 |
Debt Commitments - Unsecured Re
Debt Commitments - Unsecured Revolving Credit Facility (Details) - Credit Facility | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Minimum | |
Debt Instrument [Line Items] | |
Percentage fee paid for unused portion of credit facility | 0.10% |
Maximum | |
Debt Instrument [Line Items] | |
Percentage fee paid for unused portion of credit facility | 0.125% |
Daily Simple SOFR | |
Debt Instrument [Line Items] | |
Per annum interest rate over Daily Simple SOFR, spread adjustment | 0.10% |
Per annum interest rate over Daily Simple SOFR | 0.95% |
Unsecured Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Credit facility, maximum borrowing capacity | $ 835,000,000 |
Credit facility, uncommitted accordion option, increase limit | 365,000,000 |
Credit facility, uncommitted accordion option, higher borrowing capacity option | 1,200,000,000 |
Letter of Credit Subfacility | |
Debt Instrument [Line Items] | |
Credit facility, maximum borrowing capacity | $ 55,000,000 |
Debt Commitments - Senior Unsec
Debt Commitments - Senior Unsecured Promissory Notes Payable (Details) - Senior Unsecured Promissory Notes | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
Debt issuance, aggregate principal amount | $ 330,000,000 |
Maximum aggregate borrowing capacity | $ 900,000,000 |
Debt Commitments - Debt Maturit
Debt Commitments - Debt Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 555 | $ 390 |
Senior Unsecured Promissory Notes | ||
Debt Instrument [Line Items] | ||
2023 | 70 | |
2024 | 60 | |
2025 | 75 | |
2026 | 25 | |
2027 | 50 | |
2028 and thereafter | 50 | |
Total | $ 330 |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance For Credit Losses | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 12 | $ 12.3 | $ 10.9 |
"Additions/ (Reductions)" to Costs and Expenses | (1.8) | 2.5 | 7.5 |
"Other" Additions (Deductions) | 0 | 0 | 0 |
"Less" Deductions | 1.9 | 2.8 | 6.1 |
Balance at End of Year | 8.3 | 12 | 12.3 |
Insurance Reserves | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 35.7 | 41 | 41.1 |
"Additions/ (Reductions)" to Costs and Expenses | 78.2 | 78.6 | 72.1 |
"Other" Additions (Deductions) | 0 | 0 | 0 |
"Less" Deductions | 73.5 | 83.9 | 72.2 |
Balance at End of Year | $ 40.4 | $ 35.7 | $ 41 |