Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 04, 2014 | |
Document and Entity Information | ' | ' |
Document type | '10-Q | ' |
Amendment flag | 'false | ' |
Document period end date | 30-Jun-14 | ' |
Document fiscal year focus | '2014 | ' |
Current fiscal year end date | '--12-31 | ' |
Document fiscal period focus | 'Q2 | ' |
Entity registrant name | 'O REILLY AUTOMOTIVE INC | ' |
Entity central index key | '0000898173 | ' |
Entity filer category | 'Large Accelerated Filer | ' |
Entity common stock, shares outstanding | ' | 103,767,124 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Assets | ' | ' | |
Cash and cash equivalents | $453,431 | $231,318 | [1] |
Accounts receivable, net | 156,605 | 131,504 | [1] |
Amounts receivable from vendors | 60,615 | 66,619 | [1] |
Inventory | 2,462,781 | 2,375,047 | [1] |
Other current assets | 38,535 | 30,713 | [1] |
Total current assets | 3,171,967 | 2,835,201 | [1] |
Property and equipment, at cost | 3,784,741 | 3,606,837 | [1] |
Less: accumulated depreciation and amortization | 1,255,805 | 1,181,734 | [1] |
Net property and equipment | 2,528,936 | 2,425,103 | [1] |
Notes receivable, less current portion | 15,218 | 13,066 | [1] |
Goodwill | 756,349 | 756,225 | [1] |
Other assets, net | 35,406 | 37,613 | [1] |
Total assets | 6,507,876 | 6,067,208 | [1] |
Liabilities and shareholders' equity | ' | ' | |
Accounts payable | 2,302,282 | 2,056,521 | [1] |
Self-insurance reserves | 67,623 | 57,700 | [1] |
Accrued payroll | 67,678 | 65,520 | [1] |
Accrued benefits and withholdings | 51,330 | 41,262 | [1] |
Deferred income taxes | 22,184 | 20,222 | [1] |
Income taxes payable | 15,460 | 0 | [1] |
Other current liabilities | 200,498 | 181,718 | [1] |
Current portion of long-term debt | 62 | 67 | [1] |
Total current liabilities | 2,727,117 | 2,423,010 | [1] |
Long-term debt, less current portion | 1,396,362 | 1,396,141 | [1] |
Deferred income taxes | 66,065 | 80,713 | [1] |
Other liabilities | 200,751 | 201,023 | [1] |
Shareholders' equity: | ' | ' | |
Common stock, $0.01 par value: Authorized shares - 245,000,000 Issued and outstanding shares - 104,656,509 as of June 30, 2014, and 105,939,766 as of December 31, 2013 | 1,047 | 1,059 | [1] |
Additional paid-in capital | 1,168,016 | 1,118,929 | [1] |
Retained earnings | 948,518 | 846,333 | [1] |
Total shareholders' equity | 2,117,581 | 1,966,321 | [1] |
Total liabilities and shareholders' equity | $6,507,876 | $6,067,208 | [1] |
[1] | The balance sheet at December 31, 2013, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 245,000,000 | 245,000,000 |
Common stock, shares issued | 104,656,509 | 105,939,766 |
Common stock, shares outstanding | 104,656,509 | 105,939,766 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Sales | $1,847,088 | $1,714,969 | $3,575,031 | $3,299,978 |
Cost of goods sold, including warehouse and distribution expenses | 896,211 | 843,094 | 1,746,438 | 1,629,440 |
Gross profit | 950,877 | 871,875 | 1,828,593 | 1,670,538 |
Selling, general and administrative expenses | 614,403 | 575,614 | 1,204,999 | 1,123,193 |
Operating income | 336,474 | 296,261 | 623,594 | 547,345 |
Other income (expense): | ' | ' | ' | ' |
Interest expense | -12,819 | -11,467 | -26,228 | -22,867 |
Interest income | 506 | 469 | 1,137 | 946 |
Other, net | 637 | 864 | 1,255 | 1,332 |
Total other expense | -11,676 | -10,134 | -23,836 | -20,589 |
Income before income taxes | 324,798 | 286,127 | 599,758 | 526,756 |
Provision for income taxes | 119,151 | 109,000 | 220,251 | 195,300 |
Net income | $205,647 | $177,127 | $379,507 | $331,456 |
Earnings per share-basic: | ' | ' | ' | ' |
Earnings per share - basic | $1.94 | $1.61 | $3.58 | $2.99 |
Weighted-average common shares outstanding - basic | 105,772 | 110,278 | 105,982 | 110,914 |
Earnings per share-assuming dilution: | ' | ' | ' | ' |
Earnings per share - assuming dilution | $1.91 | $1.58 | $3.52 | $2.94 |
Weighted-average common shares outstanding - assuming dilution | 107,556 | 112,079 | 107,817 | 112,736 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | |
Operating activities: | ' | ' | |
Net income | $379,507 | $331,456 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | |
Depreciation and amortization of property, equipment and intangibles | 95,004 | 89,682 | |
Amortization of debt discount and issuance costs | 1,041 | 1,000 | |
Excess tax benefit from stock options exercised | -23,849 | -18,681 | |
Deferred income taxes | -12,686 | -80 | |
Share-based compensation programs | 12,137 | 11,174 | |
Other | 2,718 | 3,117 | |
Changes in operating assets and liabilities: | ' | ' | |
Accounts receivable | -28,422 | -56,681 | |
Inventory | -87,734 | -69,046 | |
Accounts payable | 245,761 | 129,747 | |
Income taxes payable | 39,412 | 23,823 | |
Other | 32,636 | -6,099 | |
Net cash provided by operating activities | 655,525 | 439,412 | |
Investing activities: | ' | ' | |
Purchases of property and equipment | -194,929 | -176,577 | |
Proceeds from sale of property and equipment | 789 | 678 | |
Payments received on notes receivable | 1,835 | 2,166 | |
Net cash used in investing activities | -192,305 | -173,733 | |
Financing activities: | ' | ' | |
Proceeds from the issuance of long-term debt | 0 | 299,976 | |
Payments of debt issuance costs | 0 | -1,879 | |
Principal payments on capital leases | -36 | -189 | |
Repurchases of common stock | -299,655 | -501,914 | |
Excess tax benefit from stock options exercised | 23,849 | 18,681 | |
Net proceeds from issuance of common stock | 34,735 | 37,448 | |
Net cash used in financing activities | -241,107 | -147,877 | |
Net increase in cash and cash equivalents | 222,113 | 117,802 | |
Cash and cash equivalents at beginning of the period | 231,318 | [1] | 248,128 |
Cash and cash equivalents at end of the period | 453,431 | 365,930 | |
Supplemental disclosures of cash flow information: | ' | ' | |
Income taxes paid | 189,944 | 170,100 | |
Interest paid, net of capitalized interest | $25,190 | $21,706 | |
[1] | The balance sheet at December 31, 2013, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Basis of presentation | ' |
NOTE 1 - BASIS OF PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements of O'Reilly Automotive, Inc. and its subsidiaries (the "Company" or "O'Reilly") have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2014, are not necessarily indicative of the results that may be expected for the year ended December 31, 2014. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ' | |||||||||||||||
Fair value measurements | ' | |||||||||||||||
NOTE 2 – FAIR VALUE MEASUREMENTS | ||||||||||||||||
The Company uses the fair value hierarchy, which prioritizes the inputs used to measure the fair value of certain of its financial instruments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company uses the income and market approaches to determine the fair value of its assets and liabilities. The three levels of the fair value hierarchy are set forth below: | ||||||||||||||||
• | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. | |||||||||||||||
• | Level 2 – Inputs other than quoted prices in active markets included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |||||||||||||||
• | Level 3 – Unobservable inputs for the asset or liability. | |||||||||||||||
Non-financial assets and liabilities measured at fair value on a nonrecurring basis: | ||||||||||||||||
Certain long-lived non-financial assets and liabilities may be required to be measured at fair value on a nonrecurring basis in certain circumstances, including when there is evidence of impairment. These non-financial assets and liabilities may include assets acquired in a business combination or property and equipment that are determined to be impaired. As of June 30, 2014, and December 31, 2013, the Company did not have any non-financial assets or liabilities that had been measured at fair value subsequent to initial recognition. | ||||||||||||||||
Fair value of financial instruments: | ||||||||||||||||
The carrying amounts of the Company’s senior notes are included in “Long-term debt, less current portion” on the accompanying Condensed Consolidated Balance Sheets as of June 30, 2014, and December 31, 2013. | ||||||||||||||||
The table below identifies the estimated fair value of the Company’s senior notes, using the market approach. The fair values as of June 30, 2014, and December 31, 2013, were determined by reference to quoted market prices of the same or similar instruments (Level 2) (in thousands): | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||
4.875% Senior Notes due 2021 | $ | 497,701 | $ | 548,605 | $ | 497,525 | $ | 524,434 | ||||||||
4.625% Senior Notes due 2021 | $ | 299,624 | $ | 324,387 | $ | 299,598 | $ | 310,141 | ||||||||
3.800% Senior Notes due 2022 | $ | 299,059 | $ | 306,063 | $ | 299,011 | $ | 290,453 | ||||||||
3.850% Senior Notes due 2023 | $ | 299,978 | $ | 306,593 | $ | 299,976 | $ | 289,362 | ||||||||
The accompanying Condensed Consolidated Balance Sheets include other financial instruments, including cash and cash equivalents, accounts receivable, amounts receivable from vendors and accounts payable. Due to the short-term nature of these financial instruments, the Company believes that the carrying values of these instruments approximate their fair values. |
LongTerm_Debt
Long-Term Debt | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term debt | ' | |||||||
NOTE 3 – LONG-TERM DEBT | ||||||||
The following table identifies the amounts included in "Current portion of long-term debt" and "Long-term debt, less current portion" on the accompanying Condensed Consolidated Balance Sheets as of June 30, 2014, and December 31, 2013 (in thousands): | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
Revolving Credit Facility | $ | — | $ | — | ||||
4.875% Senior Notes due 2021(1), effective interest rate of 4.968% | 497,701 | 497,525 | ||||||
4.625% Senior Notes due 2021(2), effective interest rate of 4.648% | 299,624 | 299,598 | ||||||
3.800% Senior Notes due 2022(3), effective interest rate of 3.845% | 299,059 | 299,011 | ||||||
3.850% Senior Notes due 2023(4), effective interest rate of 3.851% | 299,978 | 299,976 | ||||||
Capital leases | 62 | 98 | ||||||
Total debt and capital lease obligations | 1,396,424 | 1,396,208 | ||||||
Current portion of long-term debt | 62 | 67 | ||||||
Long-term debt, less current portion | $ | 1,396,362 | $ | 1,396,141 | ||||
(1) | Net of unamortized discount of $2.3 million as of June 30, 2014, and $2.5 million as of December 31, 2013. | |||||||
(2) | Net of unamortized discount of $0.4 million as of June 30, 2014, and $0.4 million as of December 31, 2013. | |||||||
(3) | Net of unamortized discount of $0.9 million as of June 30, 2014, and $1.0 million as of December 31, 2013. | |||||||
(4) | Net of unamortized discount of less than $0.1 million as of June 30, 2014, and December 31, 2013. | |||||||
Unsecured revolving credit facility: | ||||||||
In January of 2011, and as amended in September of 2011 and July of 2013, the Company entered into a credit agreement (the "Credit Agreement") for a five-year $600 million unsecured revolving credit facility (the "Revolving Credit Facility") arranged by Bank of America, N.A., which is scheduled to mature in July of 2018. The Credit Agreement includes a $200 million sub-limit for the issuance of letters of credit and a $75 million sub-limit for swing line borrowings under the Revolving Credit Facility. As described in the Credit Agreement governing the Revolving Credit Facility, the Company may, from time to time, subject to certain conditions, increase the aggregate commitments under the Revolving Credit Facility by up to $200 million. As of June 30, 2014, and December 31, 2013, the Company had outstanding letters of credit, primarily to support obligations related to workers’ compensation, general liability and other insurance policies, in the amount of $47.8 million and $51.7 million, respectively, reducing the aggregate availability under the Revolving Credit Facility by those amounts. As of June 30, 2014, and December 31, 2013, the Company had no outstanding borrowings under the Revolving Credit Facility. | ||||||||
Borrowings under the Revolving Credit Facility (other than swing line loans) bear interest, at the Company’s option, at the Base Rate or Eurodollar Rate (both as defined in the Credit Agreement) plus an applicable margin. Swing line loans made under the Revolving Credit Facility bear interest at the Base Rate plus the applicable margin for Base Rate loans. In addition, the Company pays a facility fee on the aggregate amount of the commitments in an amount equal to a percentage of such commitments. The interest rate margins and facility fee are based upon the better of the ratings assigned to the Company’s debt by Moody’s Investor Service, Inc. and Standard & Poor’s Rating Services, subject to limited exceptions. As of June 30, 2014, based upon the Company's credit ratings, its margin for Base Rate loans was 0.000%, its margin for Eurodollar Rate loans was 0.975% and its facility fee was 0.150%. | ||||||||
The Credit Agreement contains certain covenants, including limitations on indebtedness, a minimum consolidated fixed charge coverage ratio of 2.25 times through December 31, 2014, and 2.50 times thereafter through maturity, and a maximum consolidated leverage ratio of 3.00 times through maturity. The consolidated leverage ratio includes a calculation of adjusted debt to earnings before interest, taxes, depreciation, amortization, rent and stock-based compensation expense. Adjusted debt includes outstanding debt, outstanding stand-by letters of credit and similar instruments, six-times rent expense and excludes any premium or discount recorded in conjunction with the issuance of long-term debt. In the event that the Company should default on any covenant contained within the Credit Agreement, certain actions may be taken, including, but not limited to, possible termination of credit extensions, immediate payment of outstanding principal amounts plus accrued interest and other amounts payable under the Credit Agreement and litigation from lenders. As of June 30, 2014, the Company remained in compliance with all covenants under the Credit Agreement. | ||||||||
Senior notes: | ||||||||
The Company has issued $1.4 billion aggregate principal amount of unsecured senior notes due between 2021 and 2023 with United Missouri Bank, N.A. ("UMB") as trustee. Interest on the unsecured notes of 3.800% to 4.875% is payable biannually and is computed on the basis of a 360-day year. | ||||||||
The senior notes are guaranteed on a senior unsecured basis by each of the Company’s subsidiaries (“Subsidiary Guarantors”) that incurs or guarantees the Company’s obligations under the Company’s Revolving Credit Facility or certain other debt of the Company or any of the Subsidiary Guarantors. The guarantees are joint and several and full and unconditional, subject to certain customary automatic release provisions, including release of the subsidiary guarantor’s guarantee under the Company’s Credit Agreement and certain other debt, or, in certain circumstances, the sale or other disposition of a majority of the voting power of the capital interest in, or of all or substantially all of the property of, the subsidiary guarantor. Each of the Subsidiary Guarantors is 100% owned, directly or indirectly, by the Company and the Company has no independent assets or operations other than those of its subsidiaries. The only direct or indirect subsidiaries of the Company that would not be Subsidiary Guarantors would be minor subsidiaries. Neither the Company, nor any of its Subsidiary Guarantors, are subject to any material or significant restrictions on the Company’s ability to obtain funds from its subsidiaries by dividend or loan or to transfer assets from such subsidiaries, except as provided by applicable law. Each of the senior notes is subject to certain customary covenants, with which the Company complied as of June 30, 2014. |
Warranties
Warranties | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Product Warranties Disclosures [Abstract] | ' | |||
Warranties | ' | |||
NOTE 4 – WARRANTIES | ||||
The Company provides warranties on certain merchandise it sells with warranty periods ranging from 30 days to limited lifetime warranties. The risk of loss arising from warranty claims is typically the obligation of the Company's vendors. Certain vendors provide upfront allowances to the Company in lieu of accepting the obligation for warranty claims. For this merchandise, when sold, the Company bears the risk of loss associated with the cost of warranty claims. Differences between vendor allowances received by the Company in lieu of warranty obligations and estimated warranty expense are recorded as an adjustment to cost of sales. Estimated warranty costs are based on the historical failure rate of each individual product line. The Company's historical experience has been that failure rates are relatively consistent over time and that the ultimate cost of warranty claims to the Company has been driven by volume of units sold as opposed to fluctuations in failure rates or the variation of the cost of individual claims. The Company's product warranty liabilities are included in “Other current liabilities” on the accompanying Condensed Consolidated Balance Sheets as of June 30, 2014, and December 31, 2013. | ||||
The following table identifies the changes in the Company’s aggregate product warranty liabilities for the six months ended June 30, 2014 (in thousands): | ||||
Balance at December 31, 2013 | $ | 33,386 | ||
Warranty claims | (25,057 | ) | ||
Warranty accruals | 27,691 | |||
Balance at June 30, 2014 | $ | 36,020 | ||
Share_Repurchase_Program
Share Repurchase Program | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Proceeds from (Repurchase of) Equity [Abstract] | ' | |||||||||||||||
Share repurchase program | ' | |||||||||||||||
NOTE 5 – SHARE REPURCHASE PROGRAM | ||||||||||||||||
Under the Company's share repurchase program, as approved by the Board of Directors, the Company may, from time to time, repurchase shares of its common stock, solely through open market purchases effected through a broker dealer at prevailing market prices, based on a variety of factors such as price, corporate trading policy requirements and overall market conditions. The Company and its Board of Directors may increase or otherwise modify, renew, suspend or terminate the share repurchase program at any time, without prior notice. As announced on February 5, 2014, the Company's Board of Directors approved a resolution to increase the cumulative authorization amount by an additional $500 million, raising the cumulative authorization under the share repurchase program to $4.0 billion. The additional $500 million authorization is effective for a three-year period, which began on February 5, 2014. | ||||||||||||||||
The following table identifies shares of the Company’s common stock that have been repurchased as part of the Company’s publicly announced share repurchase program (in thousands, except per share data): | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Shares repurchased | 1,873 | 2,546 | 2,022 | 5,013 | ||||||||||||
Average price per share | $ | 148.21 | $ | 107.61 | $ | 148.21 | $ | 100.1 | ||||||||
Total investment | $ | 277,561 | $ | 273,946 | $ | 299,625 | $ | 501,838 | ||||||||
As of June 30, 2014, the Company had $346.1 million remaining under its share repurchase program. Subsequent to the end of the second quarter and through August 8, 2014, the Company repurchased an additional 1.2 million shares of its common stock under its share repurchase program, at an average price of $151.00, for a total investment of $177.8 million. The Company has repurchased a total of 43.8 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through August 8, 2014, at an average price of $87.47, for a total aggregate investment of $3.8 billion. |
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Employee Benefits and Share-based Compensation [Abstract] | ' | |||||||||||||||
Share-based compensation | ' | |||||||||||||||
NOTE 6 – SHARE-BASED COMPENSATION | ||||||||||||||||
The Company recognizes share-based compensation expense based on the fair value of the grants, awards or shares at the time of the grant, award or issuance. Share-based compensation includes stock option awards issued under the Company’s employee incentive plans and director stock plan, restricted stock awarded under the Company’s employee incentive plans, performance incentive plan and director stock plan, stock issued through the Company’s employee stock purchase plan and stock awarded to employees through other benefit programs. | ||||||||||||||||
Stock options: | ||||||||||||||||
The Company’s stock-based incentive plans provide for the granting of stock options for the purchase of common stock of the Company to directors and certain key employees of the Company. Options are granted at an exercise price that is equal to the closing market price of the Company's common stock on the date of the grant. Director options granted under the plans expire after seven years and are fully vested after six months. Employee options granted under the plans expire after ten years and typically vest 25% per year, over four years. The Company records compensation expense for the grant date fair value of the option awards, adjusted for estimated forfeitures, evenly over the vesting period. | ||||||||||||||||
The table below identifies stock option activity under these plans during the six months ended June 30, 2014: | ||||||||||||||||
Shares | Weighted-Average | |||||||||||||||
(in thousands) | Exercise Price | |||||||||||||||
Outstanding at December 31, 2013 | 5,227 | $ | 54.11 | |||||||||||||
Granted | 261 | 140.78 | ||||||||||||||
Exercised | (683 | ) | 43.53 | |||||||||||||
Forfeited | (128 | ) | 81.65 | |||||||||||||
Outstanding at June 30, 2014 | 4,677 | $ | 59.75 | |||||||||||||
Exercisable at June 30, 2014 | 2,984 | $ | 40.86 | |||||||||||||
The fair value of each stock option award is estimated on the date of the grant using the Black-Scholes option pricing model. The Black-Scholes model requires the use of assumptions, including the risk free rate, expected life, expected volatility and expected dividend yield. | ||||||||||||||||
• | Risk-free interest rate – The United States Treasury rates in effect at the time the options are granted for the options’ expected life. | |||||||||||||||
• | ||||||||||||||||
• | Expected life - Represents the period of time that options granted are expected to be outstanding. The Company uses historical experience to estimate the expected life of options granted. | |||||||||||||||
• | Expected volatility – Measure of the amount by which the Company’s stock price has historically fluctuated. | |||||||||||||||
• | Expected dividend yield – The Company has not paid, nor does it have plans in the foreseeable future to pay, any dividends. | |||||||||||||||
The table below identifies the weighted-average assumptions used for stock options awarded during the six months ended June 30, 2014 and 2013: | ||||||||||||||||
For the Six Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Risk free interest rate | 1.65 | % | 0.85 | % | ||||||||||||
Expected life | 5.5 | Years | 5.2 | Years | ||||||||||||
Expected volatility | 25.2 | % | 32.3 | % | ||||||||||||
Expected dividend yield | — | % | — | % | ||||||||||||
The Company’s forfeiture rate is the estimated percentage of options awarded that are expected to be forfeited or canceled prior to becoming fully vested. The Company’s estimate is evaluated periodically and is based upon historical experience at the time of evaluation and reduces expense ratably over the vesting period or the minimum required service period. | ||||||||||||||||
The following table summarizes activity related to stock options awarded by the Company for the three and six months ended June 30, 2014 and 2013 (in thousands): | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Compensation expense for stock options awarded | $ | 5,710 | $ | 4,580 | $ | 9,794 | $ | 9,237 | ||||||||
Income tax benefit from compensation expense related to stock options | 2,113 | 1,747 | 3,625 | 3,524 | ||||||||||||
The weighted-average grant-date fair value of options granted during the six months ended June 30, 2014, was $37.63 compared to $29.54 for the six months ended June 30, 2013. The remaining unrecognized compensation expense related to unvested stock option awards at June 30, 2014, was $34.1 million and the weighted-average period of time over which this cost will be recognized is 2.5 years. | ||||||||||||||||
Other share-based compensation plans: | ||||||||||||||||
The Company sponsors other share-based compensation plans: an employee stock purchase plan (the “ESPP”), which permits all eligible employees to purchase shares of the Company’s common stock at 85% of the fair market value; a performance incentive plan, which provides for the award of shares of restricted stock to its corporate and senior management that vest evenly over a three-year period and are held in escrow until such vesting has occurred; and a director stock plan, which provides for the award of shares of restricted stock to the Company's independent directors that vest evenly over a three-year period and are held in escrow until such vesting has occurred. The fair value of shares awarded under these plans is based on the closing market price of the Company's common stock on the date of award, and compensation expense is recorded evenly over the vesting period. | ||||||||||||||||
The table below summarizes activity related to the Company’s other share-based compensation and benefit plans for the three and six months ended June 30, 2014 and 2013 (in thousands): | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Compensation expense for shares issued under the ESPP | $ | 443 | $ | 418 | $ | 881 | $ | 831 | ||||||||
Income tax benefit from compensation expense related to shares issued under the ESPP | 164 | 160 | 326 | 317 | ||||||||||||
Compensation expense for restricted shares awarded | 889 | 579 | 1,462 | 1,106 | ||||||||||||
Income tax benefit from compensation expense related to restricted awards | 329 | 221 | 541 | 422 | ||||||||||||
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings per share | ' | |||||||||||||||
NOTE 7 – EARNINGS PER SHARE | ||||||||||||||||
The following table reconciles the numerator and denominator used in the basic and diluted earnings per share calculations for the three and six months ended June 30, 2014 and 2013 (in thousands, except per share data): | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator (basic and diluted): | ||||||||||||||||
Net income | $ | 205,647 | $ | 177,127 | $ | 379,507 | $ | 331,456 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per share - weighted-average shares | 105,772 | 110,278 | 105,982 | 110,914 | ||||||||||||
Effect of stock options (1) | 1,784 | 1,801 | 1,835 | 1,822 | ||||||||||||
Denominator for diluted earnings per share - weighted-average shares | 107,556 | 112,079 | 107,817 | 112,736 | ||||||||||||
Earnings per share: | ||||||||||||||||
Earnings per share-basic | $ | 1.94 | $ | 1.61 | $ | 3.58 | $ | 2.99 | ||||||||
Earnings per share-assuming dilution | $ | 1.91 | $ | 1.58 | $ | 3.52 | $ | 2.94 | ||||||||
Antidilutive potential common shares not included in the calculation of diluted earnings per share: | ||||||||||||||||
Stock options (1) | 305 | 784 | 336 | 1,182 | ||||||||||||
Weighted-average exercise price per share of antidilutive stock options (1) | $ | 137.82 | $ | 96.38 | $ | 137.35 | $ | 93.57 | ||||||||
(1) | See Note 6 for further discussion on the terms of the Company's share-based compensation plans. | |||||||||||||||
For the three and six months ended June 30, 2014 and 2013, the computation of diluted earnings per share did not include certain securities. These securities represent underlying stock options not included in the computation of diluted earnings per share, because the inclusion of such equity awards would have been antidilutive. | ||||||||||||||||
Subsequent to the end of the second quarter and through August 8, 2014, the Company repurchased 1.2 million shares of its common stock, at an average price of $151.00, for a total investment of $177.8 million. |
Legal_Matters
Legal Matters | 6 Months Ended |
Jun. 30, 2014 | |
Loss Contingency [Abstract] | ' |
Legal matters | ' |
NOTE 8 – LEGAL MATTERS | |
O’Reilly is currently involved in litigation incidental to the ordinary conduct of the Company’s business. The Company records reserves for litigation losses in instances where a material adverse outcome is probable and the Company is able to reasonably estimate the probable loss. The Company reserves for an estimate of material legal costs to be incurred in pending litigation matters. Although the Company cannot ascertain the amount of liability that it may incur from any of these matters, it does not currently believe that, in the aggregate, these matters, taking into account applicable insurance and reserves, will have a material adverse effect on its consolidated financial position, results of operations or cash flows in a particular quarter or annual period. | |
In addition, O’Reilly was involved in resolving governmental investigations that were being conducted against CSK Auto Corporation ("CSK") and CSK’s former officers and other litigation, prior to its acquisition by O’Reilly in 2008, as described below. | |
As previously reported, the governmental investigations of CSK regarding its legacy pre-acquisition accounting practices have concluded. All criminal charges against former employees of CSK related to its legacy pre-acquisition accounting practices, as well as the civil litigation filed against CSK’s former Chief Executive Officer by the Securities and Exchange Commission (the "SEC"), have concluded. | |
Under Delaware law, the charter documents of the CSK entities, and certain indemnification agreements, CSK may have certain indemnification obligations. As a result of the CSK acquisition, O’Reilly has incurred legal fees and costs related to these potential indemnification obligations arising from the litigation commenced by the Department of Justice and SEC against CSK’s former employees. Whether those legal fees and costs are covered by CSK’s insurance is subject to uncertainty, and, given its complexity and scope, the final outcome cannot be predicted at this time. O’Reilly has a remaining reserve, with respect to the indemnification obligations of $13.4 million at June 30, 2014, which relates to the payment of those legal fees and costs already incurred. It is possible that in a particular quarter or annual period the Company’s results of operations and cash flows could be materially affected by resolution of such matter, depending, in part, upon the results of operations or cash flows for such period. However, at this time, management believes that the ultimate outcome of this matter, after consideration of applicable reserves, should not have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2014 | |
Text Block [Abstract] | ' |
Recent accounting pronouncements | ' |
NOTE 9 - RECENT ACCOUNTING PRONOUNCEMENTS | |
In May of 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"). Under ASU 2014-09, an entity is required to follow a five-step process to determine the amount of revenue to recognize when promised goods or services are transferred to customers. ASU 2014-09 offers specific accounting guidance for costs to obtain or fulfill a contract with a customer. In addition, an entity is required to disclose sufficient information to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including periods within that reporting period, and can be adopted either retrospectively or as a cumulative effect adjustment at the date of adoption, with early adoption not permitted. The Company will adopt this guidance beginning with its first quarter ending March 31, 2017; the Company is in the process of evaluating the potential future impact, if any, of ASU 2014-09 on its consolidated financial position, results of operations and cash flows. |
Fair_Value_Measurements_Polici
Fair Value Measurements (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ' |
Fair value of financial instruments, policy | ' |
The Company uses the fair value hierarchy, which prioritizes the inputs used to measure the fair value of certain of its financial instruments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company uses the income and market approaches to determine the fair value of its assets and liabilities. |
Warranties_Policies
Warranties (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Product Warranties Disclosures [Abstract] | ' |
Warranties, policy | ' |
The Company provides warranties on certain merchandise it sells with warranty periods ranging from 30 days to limited lifetime warranties. The risk of loss arising from warranty claims is typically the obligation of the Company's vendors. Certain vendors provide upfront allowances to the Company in lieu of accepting the obligation for warranty claims. For this merchandise, when sold, the Company bears the risk of loss associated with the cost of warranty claims. Differences between vendor allowances received by the Company in lieu of warranty obligations and estimated warranty expense are recorded as an adjustment to cost of sales. Estimated warranty costs are based on the historical failure rate of each individual product line. The Company's historical experience has been that failure rates are relatively consistent over time and that the ultimate cost of warranty claims to the Company has been driven by volume of units sold as opposed to fluctuations in failure rates or the variation of the cost of individual claims. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ' | |||||||||||||||
Valuation of senior notes | ' | |||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||
4.875% Senior Notes due 2021 | $ | 497,701 | $ | 548,605 | $ | 497,525 | $ | 524,434 | ||||||||
4.625% Senior Notes due 2021 | $ | 299,624 | $ | 324,387 | $ | 299,598 | $ | 310,141 | ||||||||
3.800% Senior Notes due 2022 | $ | 299,059 | $ | 306,063 | $ | 299,011 | $ | 290,453 | ||||||||
3.850% Senior Notes due 2023 | $ | 299,978 | $ | 306,593 | $ | 299,976 | $ | 289,362 | ||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Statement [Line Items] | ' | |||||||
Outstanding long-term debt and capital lease obligations | ' | |||||||
30-Jun-14 | 31-Dec-13 | |||||||
Revolving Credit Facility | $ | — | $ | — | ||||
4.875% Senior Notes due 2021(1), effective interest rate of 4.968% | 497,701 | 497,525 | ||||||
4.625% Senior Notes due 2021(2), effective interest rate of 4.648% | 299,624 | 299,598 | ||||||
3.800% Senior Notes due 2022(3), effective interest rate of 3.845% | 299,059 | 299,011 | ||||||
3.850% Senior Notes due 2023(4), effective interest rate of 3.851% | 299,978 | 299,976 | ||||||
Capital leases | 62 | 98 | ||||||
Total debt and capital lease obligations | 1,396,424 | 1,396,208 | ||||||
Current portion of long-term debt | 62 | 67 | ||||||
Long-term debt, less current portion | $ | 1,396,362 | $ | 1,396,141 | ||||
(1) | Net of unamortized discount of $2.3 million as of June 30, 2014, and $2.5 million as of December 31, 2013. | |||||||
(2) | Net of unamortized discount of $0.4 million as of June 30, 2014, and $0.4 million as of December 31, 2013. | |||||||
(3) | Net of unamortized discount of $0.9 million as of June 30, 2014, and $1.0 million as of December 31, 2013. | |||||||
(4) | Net of unamortized discount of less than $0.1 million as of June 30, 2014, and December 31, 2013. |
Warranties_Tables
Warranties (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Product Warranties Disclosures [Abstract] | ' | |||
Product warranty liabilities | ' | |||
Balance at December 31, 2013 | $ | 33,386 | ||
Warranty claims | (25,057 | ) | ||
Warranty accruals | 27,691 | |||
Balance at June 30, 2014 | $ | 36,020 | ||
Share_Repurchase_Program_Table
Share Repurchase Program (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Proceeds from (Repurchase of) Equity [Abstract] | ' | |||||||||||||||
Schedule of shares repurchased | ' | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Shares repurchased | 1,873 | 2,546 | 2,022 | 5,013 | ||||||||||||
Average price per share | $ | 148.21 | $ | 107.61 | $ | 148.21 | $ | 100.1 | ||||||||
Total investment | $ | 277,561 | $ | 273,946 | $ | 299,625 | $ | 501,838 | ||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Stock Option [Member] | ' | |||||||||||||||
Summary of stock options | ' | |||||||||||||||
Shares | Weighted-Average | |||||||||||||||
(in thousands) | Exercise Price | |||||||||||||||
Outstanding at December 31, 2013 | 5,227 | $ | 54.11 | |||||||||||||
Granted | 261 | 140.78 | ||||||||||||||
Exercised | (683 | ) | 43.53 | |||||||||||||
Forfeited | (128 | ) | 81.65 | |||||||||||||
Outstanding at June 30, 2014 | 4,677 | $ | 59.75 | |||||||||||||
Exercisable at June 30, 2014 | 2,984 | $ | 40.86 | |||||||||||||
Black-Scholes option pricing model | ' | |||||||||||||||
For the Six Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Risk free interest rate | 1.65 | % | 0.85 | % | ||||||||||||
Expected life | 5.5 | Years | 5.2 | Years | ||||||||||||
Expected volatility | 25.2 | % | 32.3 | % | ||||||||||||
Expected dividend yield | — | % | — | % | ||||||||||||
Summary of activity of share-based compensation | ' | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Compensation expense for stock options awarded | $ | 5,710 | $ | 4,580 | $ | 9,794 | $ | 9,237 | ||||||||
Income tax benefit from compensation expense related to stock options | 2,113 | 1,747 | 3,625 | 3,524 | ||||||||||||
Restricted Stock [Member] | Employee Stock Purchase Plan [Member] | ' | |||||||||||||||
Summary of activity of share-based compensation | ' | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Compensation expense for shares issued under the ESPP | $ | 443 | $ | 418 | $ | 881 | $ | 831 | ||||||||
Income tax benefit from compensation expense related to shares issued under the ESPP | 164 | 160 | 326 | 317 | ||||||||||||
Compensation expense for restricted shares awarded | 889 | 579 | 1,462 | 1,106 | ||||||||||||
Income tax benefit from compensation expense related to restricted awards | 329 | 221 | 541 | 422 | ||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation of basic and diluted earnings per share | ' | |||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator (basic and diluted): | ||||||||||||||||
Net income | $ | 205,647 | $ | 177,127 | $ | 379,507 | $ | 331,456 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per share - weighted-average shares | 105,772 | 110,278 | 105,982 | 110,914 | ||||||||||||
Effect of stock options (1) | 1,784 | 1,801 | 1,835 | 1,822 | ||||||||||||
Denominator for diluted earnings per share - weighted-average shares | 107,556 | 112,079 | 107,817 | 112,736 | ||||||||||||
Earnings per share: | ||||||||||||||||
Earnings per share-basic | $ | 1.94 | $ | 1.61 | $ | 3.58 | $ | 2.99 | ||||||||
Earnings per share-assuming dilution | $ | 1.91 | $ | 1.58 | $ | 3.52 | $ | 2.94 | ||||||||
Antidilutive potential common shares not included in the calculation of diluted earnings per share: | ||||||||||||||||
Stock options (1) | 305 | 784 | 336 | 1,182 | ||||||||||||
Weighted-average exercise price per share of antidilutive stock options (1) | $ | 137.82 | $ | 96.38 | $ | 137.35 | $ | 93.57 | ||||||||
(1) | See Note 6 for further discussion on the terms of the Company's share-based compensation plans. |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ' | ' |
Non-financial assets and liabilities measured at fair value on a nonrecurring basis | $0 | $0 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value of Senior Notes) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Senior Notes due 2021 at 4.875% [Member] | ' | ' |
Carrying amount of senior notes | $497,701 | $497,525 |
Estimated fair value of senior notes | 548,605 | 524,434 |
Senior Notes due 2021 at 4.625% [Member] | ' | ' |
Carrying amount of senior notes | 299,624 | 299,598 |
Estimated fair value of senior notes | 324,387 | 310,141 |
Senior Notes due 2022 at 3.800% [Member] | ' | ' |
Carrying amount of senior notes | 299,059 | 299,011 |
Estimated fair value of senior notes | 306,063 | 290,453 |
Senior Notes due 2023 at 3.850% [Member] | ' | ' |
Carrying amount of senior notes | 299,978 | 299,976 |
Estimated fair value of senior notes | $306,593 | $289,362 |
LongTerm_Debt_Unsecured_Revolv
Long-Term Debt (Unsecured Revolving Credit Facility) (Details) (Unsecured debt [Member], Line of credit facility [Member], USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Rate | ||
Credit agreement inception date | 14-Jan-11 | ' |
Number of years in credit facility term | '5 years | ' |
Current maximum borrowing capacity under credit facility | $600,000,000 | ' |
Line of credit facility expiration date | 2-Jul-18 | ' |
Maximum aggregate increase to credit facility | 200,000,000 | ' |
Letters of credit | 47,800,000 | 51,700,000 |
Outstanding borrowings under credit facility | 0 | 0 |
Line of credit facility fee percentage | 0.15% | ' |
Covenant description for debt instrument | 'The Credit Agreement contains certain covenants, including limitations on indebtedness, a minimum consolidated fixed charge coverage ratio of 2.25 times through December 31, 2014, and 2.50 times thereafter through maturity, and a maximum consolidated leverage ratio of 3.00 times through maturity. The consolidated leverage ratio includes a calculation of adjusted debt to earnings before interest, taxes, depreciation, amortization, rent and stock-based compensation expense. Adjusted debt includes outstanding debt, outstanding stand-by letters of credit and similar instruments, six-times rent expense and excludes any premium or discount recorded in conjunction with the issuance of long-term debt. In the event that the Company should default on any covenant contained within the Credit Agreement, certain actions may be taken, including, but not limited to, possible termination of credit extensions, immediate payment of outstanding principal amounts plus accrued interest and other amounts payable under the Credit Agreement and litigation from lenders. | ' |
Line of credit facility covenant compliance | 'As of June 30, 2014, the Company remained in compliance with all covenants under the Credit Agreement. | ' |
Amendment one [Member] | ' | ' |
Credit agreement amendment date | 9-Sep-11 | ' |
Amendment two [Member] | ' | ' |
Credit agreement amendment date | 2-Jul-13 | ' |
Letter of credit [Member] | ' | ' |
Line of credit facility sublimit | 200,000,000 | ' |
Swing line revolver [Member] | ' | ' |
Line of credit facility sublimit | $75,000,000 | ' |
Euro Dollar rate [Member] | ' | ' |
Line of credit current interest rate | 0.98% | ' |
Base rate [Member] | ' | ' |
Line of credit current interest rate | 0.00% | ' |
Through December 2014 [Member] | ' | ' |
Minimum debt instrument consolidated fixed charge coverage ratio covenant | 2.25% | ' |
Through maturity [Member] | ' | ' |
Minimum debt instrument consolidated fixed charge coverage ratio covenant | 2.50% | ' |
Maximum debt instrument consolidated leverage ratio covenant | 3.00% | ' |
LongTerm_Debt_Senior_Notes_Det
Long-Term Debt (Senior Notes) (Details) (USD $) | 6 Months Ended |
In Billions, unless otherwise specified | Jun. 30, 2014 |
D | |
Rate | |
Aggregate principle of unsecured senior notes | $1.40 |
Interest rate of notes, minimum | 3.80% |
Interest rate of notes, maximum | 4.88% |
Number of days in annual interest calculation period | 360 |
Debt instrument covenant description | 'Each of the senior notes is subject to certain customary covenants, with which the Company complied as of June 30, 2014. |
LongTerm_Debt_Outstanding_Long
Long-Term Debt (Outstanding Long-Term Debt) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Revolving Credit Facility | $0 | $0 | |
Capital leases | 62 | 98 | |
Total debt and capital lease obligation | 1,396,424 | 1,396,208 | |
Current portion of long-term debt | 62 | 67 | [1] |
Long-term debt, less current portion | 1,396,362 | 1,396,141 | [1] |
Senior Notes due 2021 at 4.875% [Member] | ' | ' | |
Senior notes | 497,701 | 497,525 | |
Senior notes, unamortized discount | 2,300 | 2,500 | |
Effective interest rate | 4.97% | ' | |
Senior Notes due 2021 at 4.625% [Member] | ' | ' | |
Senior notes | 299,624 | 299,598 | |
Senior notes, unamortized discount | 400 | 400 | |
Effective interest rate | 4.65% | ' | |
Senior Notes due 2022 at 3.800% [Member] | ' | ' | |
Senior notes | 299,059 | 299,011 | |
Senior notes, unamortized discount | 900 | 1,000 | |
Effective interest rate | 3.85% | ' | |
Senior Notes due 2023 at 3.850% [Member] | ' | ' | |
Senior notes | 299,978 | 299,976 | |
Senior notes, unamortized discount | $22 | $23 | |
Effective interest rate | 3.85% | ' | |
[1] | The balance sheet at December 31, 2013, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Warranties_Product_Warranty_Li
Warranties (Product Warranty Liabilities) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Product Warranties Disclosures [Abstract] | ' |
Balance at December 31, 2013 | $33,386 |
Warranty claims | -25,057 |
Warranty accruals | 27,691 |
Balance at June 30, 2014 | $36,020 |
Share_Repurchase_Program_Narra
Share Repurchase Program (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 43 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Feb. 05, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 08, 2014 | Aug. 08, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | ||||||
Share repurchase program | ' | ' | ' | ' | ' | ' | ' |
Increase in authorized amount | $500,000,000 | ' | ' | ' | ' | ' | ' |
Cumulative authorized amount | 4,000,000,000 | ' | ' | ' | ' | ' | ' |
Authorization effective period | '3 years | ' | ' | ' | ' | ' | ' |
Remaining balance under share repurchase program | ' | 346,100,000 | ' | 346,100,000 | ' | ' | ' |
Common stock repurchased, shares | ' | 1,873 | 2,546 | 2,022 | 5,013 | 1,200 | 43,800 |
Common stock repurchased, average price per share | ' | $148.21 | $107.61 | $148.21 | $100.10 | $151 | $87.47 |
Common stock repurchased, value | ' | $277,561,000 | $273,946,000 | $299,625,000 | $501,838,000 | $177,800,000 | $3,800,000,000 |
Share_Repurchase_Program_Sched
Share Repurchase Program (Schedule Of Shares Repurchased) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Proceeds from (Repurchase of) Equity [Abstract] | ' | ' | ' | ' |
Shares repurchased | 1,873 | 2,546 | 2,022 | 5,013 |
Average price per share | $148.21 | $107.61 | $148.21 | $100.10 |
Total investment | $277,561 | $273,946 | $299,625 | $501,838 |
ShareBased_Compensation_Stock_
Share-Based Compensation (Stock Option Narrative) (Details) (Stock Option [Member], USD $) | 6 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Vesting of options, description | 'The Companybs stock-based incentive plans provide for the granting of stock options for the purchase of common stock of the Company to directors and certain key employees of the Company. Options are granted at an exercise price that is equal to the closing market price of the Company's common stock on the date of the grant. Director options granted under the plans expire after seven years and are fully vested after six months. Employee options granted under the plans expire after ten years and typically vest 25% per year, over four years. The Company records compensation expense for the grant date fair value of the option awards, adjusted for estimated forfeitures, evenly over the vesting period. | ' |
Weighted-average grant date fair value of options awarded | $37.63 | $29.54 |
Remaining unrecognized compensation expense | $34.10 | ' |
Weighted-average period for cost recognition | '2 years 5 months 13 days | ' |
Director [Member] | ' | ' |
Options expiration date | '7 years | ' |
Vesting period | '6 months | ' |
Employee Stock Option [Member] | ' | ' |
Options expiration date | '10 years | ' |
Vesting period | '4 years | ' |
Option vesting rate per year | 25.00% | ' |
ShareBased_Compensation_Other_
Share-Based Compensation (Other Share-Based Compensation) (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Rate | |
Employee Stock Purchase Plan [Member] | ' |
Other employee benefit plan descriptions | 'an employee stock purchase plan (the bESPPb), which permits all eligible employees to purchase shares of the Companybs common stock at 85% of the fair market value |
Employee stock purchase plan stock purchase percentage | 85.00% |
Restricted Stock [Member] | ' |
Other employee benefit plan descriptions | 'a performance incentive plan, which provides for the award of shares of restricted stock to its corporate and senior management that vest evenly over a three-year period and are held in escrow until such vesting has occurred; and a director stock plan, which provides for the award of shares of restricted stock to the Company's independent directors that vest evenly over a three-year period and are held in escrow until such vesting has occurred. The fair value of shares awarded under these plans is based on the closing market price of the Company's common stock on the date of award, and compensation expense is recorded evenly over the vesting period |
Vesting period | '3 years |
ShareBased_Compensation_Summar
Share-Based Compensation (Summary Of Stock Options) (Details) (Stock Option [Member], USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Stock Option [Member] | ' |
Outstanding at December 31, 2013, shares | 5,227 |
Outstanding at December 31, 2013, weighted-average exercise price | $54.11 |
Granted, shares | 261 |
Granted, weighted-average exercise price | $140.78 |
Exercised, shares | -683 |
Exercised, weighted-average exercise price | $43.53 |
Forfeited, shares | -128 |
Forfeited, weighted-average exercise price | $81.65 |
Outstanding at June 30, 2014, shares | 4,677 |
Outstanding at June 30, 2014, weighted-average exercise price | $59.75 |
Exercisable at June 30, 2014, shares | 2,984 |
Exercisable at June 30, 2014, weighted-average exercise price | $40.86 |
ShareBased_Compensation_BlackS
Share-Based Compensation (Black-Scholes Option Pricing Model) (Details) (Stock Option [Member]) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Rate | Rate | |
Stock Option [Member] | ' | ' |
Risk-free interest rate | 1.65% | 0.85% |
Expected life | '5 years 6 months 8 days | '5 years 2 months 12 days |
Expected volatility | 25.20% | 32.30% |
Expected dividend yield | 0.00% | 0.00% |
ShareBased_Compensation_Stock_1
Share-Based Compensation (Stock Option Activity) (Details) (Stock Option [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Stock Option [Member] | ' | ' | ' | ' |
Compensation expense for benefit plans | $5,710 | $4,580 | $9,794 | $9,237 |
Income tax benefit from compensation expense for benefit plans | $2,113 | $1,747 | $3,625 | $3,524 |
ShareBased_Compensation_Other_1
Share-Based Compensation (Other Share-Based Compensation Activity) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' |
Compensation expense for benefit plans | $443 | $418 | $881 | $831 |
Income tax benefit from compensation expense for benefit plans | 164 | 160 | 326 | 317 |
Restricted Stock [Member] | ' | ' | ' | ' |
Compensation expense for benefit plans | 889 | 579 | 1,462 | 1,106 |
Income tax benefit from compensation expense for benefit plans | $329 | $221 | $541 | $422 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 43 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 08, 2014 | Aug. 08, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock repurchased, shares | 1,873 | 2,546 | 2,022 | 5,013 | 1,200 | 43,800 |
Common stock repurchased, average price per share | $148.21 | $107.61 | $148.21 | $100.10 | $151 | $87.47 |
Common stock repurchased, value | $277,561 | $273,946 | $299,625 | $501,838 | $177,800 | $3,800,000 |
Earnings_Per_Share_Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Numerator (basic and diluted): | ' | ' | ' | ' | ||||
Net income | $205,647 | $177,127 | $379,507 | $331,456 | ||||
Denominator: | ' | ' | ' | ' | ||||
Denominator for basic earnings per share - weighted-average shares | 105,772 | 110,278 | 105,982 | 110,914 | ||||
Effect of stock options | 1,784 | [1] | 1,801 | [1] | 1,835 | [1] | 1,822 | [1] |
Denominator for diluted earnings per share - weighted-average shares | 107,556 | 112,079 | 107,817 | 112,736 | ||||
Earnings per share - basic | $1.94 | $1.61 | $3.58 | $2.99 | ||||
Earnings per share - assuming dilution | $1.91 | $1.58 | $3.52 | $2.94 | ||||
Antidilutive stock options | 305 | [1] | 784 | [1] | 336 | [1] | 1,182 | [1] |
Weighted-average exercise price | $137.82 | [1] | $96.38 | [1] | $137.35 | [1] | $93.57 | [1] |
[1] | See Note 6 for further discussion on the terms of the Company's share-based compensation plans. |
Legal_Matters_Details
Legal Matters (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Loss Contingency [Abstract] | ' |
Legacy CSK DOJ indemnity litigation reserve | $13.40 |