Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Thousands | Jun. 30, 2009
| Dec. 31, 2008
|
Current assets: | ||
Cash and cash equivalents | $173,667 | $85,892 |
Marketable securities | 916 | 851 |
Trade accounts receivable, net of allowance for doubtful accounts of $3,622 and $2,660, respectively | 228,257 | 244,940 |
Inventories | 519,119 | 564,247 |
Deferred income tax assets | 18,967 | 15,909 |
Other current assets | 48,071 | 63,564 |
Total current assets | 988,997 | 975,403 |
Marketable securities | 805 | 846 |
Property and equipment, less accumulated depreciation | 335,232 | 324,182 |
Other assets, less accumulated amortization | 3,650 | 3,718 |
Total assets | 1,328,684 | 1,304,149 |
Current liabilities: | ||
Accounts payable | 54,463 | 63,949 |
Accrued expenses | 71,535 | 83,545 |
Income taxes payable | 1,952 | 499 |
Total current liabilities | 127,950 | 147,993 |
Deferred income tax liabilities | 13,889 | 13,897 |
Stockholders' equity: | ||
Preferred stock, 5,000,000 shares authorized | 0 | 0 |
Common stock, 200,000,000 shares authorized, 148,530,712 shares issued and outstanding | 1,485 | 1,485 |
Additional paid-in capital | 3,459 | 1,559 |
Retained earnings | 1,174,492 | 1,134,244 |
Accumulated other comprehensive income | 7,409 | 4,971 |
Total stockholders' equity | 1,186,845 | 1,142,259 |
Total liabilities and stockholders' equity | $1,328,684 | $1,304,149 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
In Thousands, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
Trade accounts receivable, allowance for doubtful accounts | $3,622 | $2,660 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 148,530,712 | 148,530,712 |
Common stock, shares outstanding | 148,530,712 | 148,530,712 |
Statement Of Income
Statement Of Income (USD $) | ||||
In Thousands, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Net sales | $474,894 | $604,219 | $964,241 | $1,170,429 |
Cost of sales | 232,389 | 286,830 | 463,088 | 556,410 |
Gross profit | 242,505 | 317,389 | 501,153 | 614,019 |
Operating and administrative expenses | 172,143 | 193,899 | 352,052 | 380,461 |
Loss on sale of property and equipment | 424 | 141 | 752 | 245 |
Operating income | 69,938 | 123,349 | 148,349 | 233,313 |
Interest income | 464 | 247 | 720 | 468 |
Earnings before income taxes | 70,402 | 123,596 | 149,069 | 233,781 |
Income tax expense | 26,864 | 47,430 | 56,837 | 89,521 |
Net earnings | $43,538 | $76,166 | $92,232 | $144,260 |
Basic and diluted net earnings per share | 0.29 | 0.51 | 0.62 | 0.97 |
Basic and diluted weighted average shares outstanding | 148,531 | 149,113 | 148,531 | 149,117 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | ||
In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Cash flows from operating activities: | ||
Net earnings | $92,232 | $144,260 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation of property and equipment | 20,363 | 19,296 |
Loss on sale of property and equipment | 752 | 245 |
Bad debt expense | 4,689 | 3,536 |
Deferred income taxes | (3,064) | 0 |
Stock based compensation | 1,900 | 1,429 |
Amortization of non-compete agreement | 34 | 34 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 11,994 | (59,261) |
Inventories | 45,128 | (3,397) |
Other current assets | 15,493 | 611 |
Accounts payable | (12,699) | 11,890 |
Accrued expenses | (12,010) | 1,433 |
Income taxes payable | 1,453 | (4,228) |
Other | 1,287 | (1,163) |
Net cash provided by operating activities | 167,552 | 114,685 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (32,638) | (51,075) |
Proceeds from sale of property and equipment | 3,686 | 1,762 |
Net increase in marketable securities | (24) | (60) |
Net decrease (increase) in other assets | 34 | (75) |
Net cash used in investing activities | (28,942) | (49,448) |
Cash flows from financing activities: | ||
Purchase of common stock | 0 | (8,944) |
Payment of dividends | (51,986) | (37,280) |
Net cash used in financing activities | (51,986) | (46,224) |
Effect of exchange rate changes on cash | 1,151 | 205 |
Net increase in cash and cash equivalents | 87,775 | 19,218 |
Cash and cash equivalents at beginning of period | 85,892 | 57,220 |
Cash and cash equivalents at end of period | 173,667 | 76,438 |
Cash paid during each period for: | ||
Income taxes | $55,384 | $93,749 |
Notes to Financial Statements
Notes to Financial Statements | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
(1)Basis of Presentation | (1) Basis of Presentation The accompanying unaudited consolidated financial statements of Fastenal Company and subsidiaries (collectively referred to as the Company, Fastenal, or by terms such as we, our, or us) have been prepared in accordance with United States generally accepted accounting principles for interim financial information. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as described herein, there has been no material change in the information disclosed in the notes to consolidated financial statements included in our consolidated financial statements as of and for the year ended December31, 2008. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. |
(2)Stockholders' Equity and Stock-Based Compensation | (2) Stockholders Equity and Stock-Based Compensation During April 2008 and April 2007, the Compensation Committee of our Board of Directors approved the grant under our employee stock option plan, effective at the close of business that day, of options to purchase approximately 275thousand shares and 2.2million shares, respectively, of our common stock. These options vest and become exercisable over a period of up to eight years. Each option will terminate, to the extent not previously exercised, 13 months after the end of the relevant vesting period. No options under either of these grants were vested as of June30, 2009. On April21, 2009, the Compensation Committee of our Board of Directors approved the grant under our employee stock option plan, effective at the close of business that day, of options to purchase approximately 395thousand shares of our common stock at a strike price of $54.00 per share. The closing stock price on the date of grant was $35.22 per share. These options vest and become exercisable over a period of up to eight years. Each option will terminate, to the extent not previously exercised, 13 months after the end of the relevant vesting period. No options under this grant were vested as of June30, 2009. Compensation expense equal to the grant date fair value will be recognized for all of these awards over the vesting period. The stock-based compensation expense for the six month periods ended June30, 2009 and 2008 was $1,900 and $1,429, respectively. Unrecognized compensation expense related to outstanding stock options as of June30, 2009 was $20,026 and is expected to be recognized over a weighted average period of 6.69 years. Any future changes in estimated forefeitures will impact this amount. 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 noted in the following table. The expected life is the most significant assumption as it determines the period for which the risk-free interest rate, volatility, and dividend yield must be applied. The expected life is the average length of time over which the employee groups will exercise their options, which is based on historical experience with similar grants. Expected volatilities are based on the movement of the Companys stock over the most recent historical period equivalent to the expected life of the options. The risk-free interest rate is based on the U.S. Treasury rate over the expected life at the time of grant. The dividend yield is estimated over the expected life based on our current dividend payout, historical dividends paid, and expected future cash dividends. The following table illustrates the share price information and assumptions used to determine fair value: Options Granted April 2009 April 2008 April 2007 Strike Price $ 54.00 $ 54.00 $ 45.00 Closing market price on date of grant $ 35.22 $ 48.70 $ 40.30 Weighted-average expected life of option in years 5.0 5.0 4.9 Weighted-average volatility 38.8 % 30.7 % 31.6 % |
(3)Comprehensive Income | (3) Comprehensive Income Comprehensive income and the components of other comprehensive income were as follows: Six months ended June30, Threemonthsended June30, 2009 2008 2009 2008 Net earnings $ 92,232 144,260 43,538 76,166 Translation adjustment 2,435 (976 ) 4,994 324 Change in marketable securities 3 7 1 3 Total comprehensive income $ 94,670 143,291 48,533 76,493 |
(4)Unrealized Investment Gains and Losses | (4) Unrealized Investment Gains and Losses The following tables show the fair value of our investments as of June30, 2009 and 2008 and the gross unrealized gains and losses of those investments for the six month period ended June30, 2009 and 2008. This information is aggregated by the investment category and maturity of the investment. June30, 2009 Current Non-Current Total Description Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) State and municipal bonds $ 497 805 3 $ 1,302 3 Certificates of deposit or money market 419 419 Total $ 916 805 3 $ 1,721 3 June30, 2008 Current Non-Current Total Description Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) State and municipal bonds $ 213 1,491 7 $ 1,704 7 Certificates of deposit or money market 465 465 Total $ 678 1,491 7 $ 2,169 7 As was disclosed in our 2008 Annual Report on Form 10-K, we classify these securities as available-for-sale. Available-for-sale securities are recorded at fair value based on current market value. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings, but are included in comprehensive income, and are reported as a separate component of stockholders equity until realized. The unrealized losses on our investments at the end of the periods were caused by interest rate increases. Because the decline in market value is attributable to changes in interest rates and not credit quality and because we have the ability and intent to hold these investments until recovery of the fair value, which may be maturity, we do not consider these investments to be other-than-temporarily impaired at June30, 2009 and 2008. |
(5)Operating Leases with Guarantees | (5) Operating Leases with Guarantees We lease certain pick-up trucks under operating leases. These leases typically have a 72-month term and include an early buy out clause we generally exercise, thereby giving the leases an effective term of 15-20 months. Certain operating leases for vehicles contain residual value guarantee provisions, which could 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 at lease expiration, of the leases that contain residual value guarantees, is approximately $15,480 at June30, 2009. We believe the likelihood of funding the guarantee obligation under any provision of the operating lease agreements is remote, except for a $2,249 loss on disposal reserve provided at June30, 2009. |
(6)Income Taxes | (6) Income Taxes Fastenal, or one of its subsidiaries, files income tax returns in the United States Federal jurisdiction, numerous states, and various local and foreign jurisdictions. With limited exceptions, we are no longer subject to income tax examinations by taxing authorities for taxable years before 2006, in the case of United States Federal and non-United States examinations, and 2003 in the case of state and local examinations. As of June30, 2009 and 2008, the company had $7,298 and $5,143, respectively, of liabilities recorded related to unrecognized tax benefits. Included in this liability for unrecognized tax benefits is an immaterial amount for interest and penalties, both of which we classify as a component of income tax expense. The company does not anticipate that total unrecognized tax benefits will change significantly during the next 12 months. |
Document Information
Document Information | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Amendment Description | N.A. |
Document Period End Date | 2009-06-30 |
Entity Information
Entity Information (USD $) | |||
6 Months Ended
Jun. 30, 2009 | Jul. 20, 2009
| Jun. 30, 2008
| |
Entity [Text Block] | |||
Trading Symbol | FAST | ||
Entity Registrant Name | FASTENAL CO | ||
Entity Central Index Key | 0000815556 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 148,530,712 | ||
Entity Public Float | $4,580,361,184 |