Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 23, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Document type | 10-K | ||
Amendment flag | FALSE | ||
Document period end date | 31-Dec-14 | ||
Document fiscal year focus | 2014 | ||
Current fiscal year end date | -19 | ||
Document fiscal period focus | FY | ||
Entity registrant name | O REILLY AUTOMOTIVE INC | ||
Trading symbol | orly | ||
Entity central index key | 898173 | ||
Entity well-known seasoned issuer | Yes | ||
Entity voluntary filers | No | ||
Entity current reporting status | Yes | ||
Entity filer category | Large Accelerated Filer | ||
Entity common stock, shares outstanding | 101,648,745 | 104,656,509 | |
Entity public float | $16,064,770,732 | $12,733,033,768 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $250,560 | $231,318 |
Accounts receivable, less allowance for doubtful accounts $8,713 in 2014 and $6,661 in 2013 | 143,900 | 131,504 |
Amounts receivable from vendors | 69,311 | 66,619 |
Inventory | 2,554,789 | 2,375,047 |
Other current assets | 48,418 | 30,713 |
Total current assets | 3,066,978 | 2,835,201 |
Property and equipment, at cost | 3,993,509 | 3,606,837 |
Less: accumulated depreciation and amortization | 1,334,949 | 1,181,734 |
Net property and equipment | 2,658,560 | 2,425,103 |
Notes receivable, less current portion | 13,349 | 13,066 |
Goodwill | 756,384 | 756,225 |
Other assets, net | 45,030 | 37,613 |
Total assets | 6,540,301 | 6,067,208 |
Liabilities and shareholders' equity | ||
Accounts payable | 2,417,167 | 2,056,521 |
Self-insurance reserves | 64,882 | 57,700 |
Accrued payroll | 78,442 | 65,520 |
Accrued benefits and withholdings | 62,946 | 41,262 |
Deferred income taxes | 17,258 | 20,222 |
Other current liabilities | 189,836 | 181,718 |
Current portion of long-term debt | 25 | 67 |
Total current liabilities | 2,830,556 | 2,423,010 |
Long-term debt, less current portion | 1,396,615 | 1,396,141 |
Deferred income taxes | 85,164 | 80,713 |
Other liabilities | 209,548 | 201,023 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value: Authorized shares - 5,000,000 Issued and outstanding shares - none | 0 | 0 |
Common stock, $0.01 par value: Authorized shares - 245,000,000 Issued and outstanding shares - 101,602,935 as of December 31, 2014, and 105,939,766 as of December 31, 2013 | 1,016 | 1,059 |
Additional paid-in capital | 1,194,929 | 1,118,929 |
Retained earnings | 822,473 | 846,333 |
Total shareholders' equity | 2,018,418 | 1,966,321 |
Total liabilities and shareholders' equity | $6,540,301 | $6,067,208 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $8,713 | $6,661 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 245,000,000 | 245,000,000 |
Common stock, shares issued | 101,602,935 | 105,939,766 |
Common stock, shares outstanding | 101,602,935 | 105,939,766 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Sales | $7,216,081 | $6,649,237 | $6,182,184 |
Cost of goods sold, including warehouse and distribution expenses | 3,507,180 | 3,280,236 | 3,084,766 |
Gross profit | 3,708,901 | 3,369,001 | 3,097,418 |
Selling, general and administrative expenses | 2,438,527 | 2,265,516 | 2,120,025 |
Operating income | 1,270,374 | 1,103,485 | 977,393 |
Other income (expense): | |||
Interest expense | -53,290 | -49,074 | -40,200 |
Interest income | 2,301 | 1,992 | 2,441 |
Other, net | 2,797 | 2,539 | 1,887 |
Total other expense | -48,192 | -44,543 | -35,872 |
Income before income taxes | 1,222,182 | 1,058,942 | 941,521 |
Provision for income taxes | 444,000 | 388,650 | 355,775 |
Net income | $778,182 | $670,292 | $585,746 |
Earnings per share-basic: | |||
Earnings per share - basic | $7.46 | $6.14 | $4.83 |
Weighted-average common shares outstanding - basic | 104,262 | 109,244 | 121,182 |
Earnings per share-assuming dilution: | |||
Earnings per share - assuming dilution | $7.34 | $6.03 | $4.75 |
Weighted-average common shares outstanding - assuming dilution | 106,041 | 111,101 | 123,314 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] |
In Thousands, except Share data | ||||
Balance at Dec. 31, 2011 | $2,844,851 | $1,272 | $1,110,105 | $1,733,474 |
Balance (in shares) at Dec. 31, 2011 | 127,180,000 | |||
Net income | 585,746 | 585,746 | ||
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes | 9,553 | 1 | 9,552 | |
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares | 124,000 | |||
Net issuance of common stock upon exercise of stock options | 54,876 | 19 | 54,857 | |
Net issuance of common stock upon exercise of stock options, shares | 1,860,000 | |||
Excess tax benefit of stock options exercised | 38,572 | 38,572 | ||
Share based compensation | 19,996 | 19,996 | ||
Share repurchases, including fees | -1,445,287 | -162 | -149,172 | -1,295,953 |
Share repurchases, including fees, shares | -16,201,000 | |||
Balance at Dec. 31, 2012 | 2,108,307 | 1,130 | 1,083,910 | 1,023,267 |
Balance (in shares) at Dec. 31, 2012 | 112,963,000 | |||
Net income | 670,292 | 670,292 | ||
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes | 10,663 | 10,663 | ||
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares | 113,000 | |||
Net issuance of common stock upon exercise of stock options | 59,745 | 14 | 59,731 | |
Net issuance of common stock upon exercise of stock options, shares | 1,393,000 | |||
Excess tax benefit of stock options exercised | 30,811 | 30,811 | ||
Share based compensation | 19,531 | 19,531 | ||
Share repurchases, including fees | -933,028 | -85 | -85,717 | -847,226 |
Share repurchases, including fees, shares | -8,529,000 | -8,529,000 | ||
Balance at Dec. 31, 2013 | 1,966,321 | 1,059 | 1,118,929 | 846,333 |
Balance (in shares) at Dec. 31, 2013 | 105,939,766 | 105,940,000 | ||
Net income | 778,182 | 778,182 | ||
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes | 11,181 | 1 | 11,180 | |
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares | 86,000 | |||
Net issuance of common stock upon exercise of stock options | 59,594 | 13 | 59,581 | |
Net issuance of common stock upon exercise of stock options, shares | 1,320,000 | |||
Excess tax benefit of stock options exercised | 49,150 | 49,150 | ||
Share based compensation | 20,474 | 20,474 | ||
Share repurchases, including fees | -866,484 | -57 | -64,385 | -802,042 |
Share repurchases, including fees, shares | -5,743,000 | -5,743,000 | ||
Balance at Dec. 31, 2014 | $2,018,418 | $1,016 | $1,194,929 | $822,473 |
Balance (in shares) at Dec. 31, 2014 | 101,602,935 | 101,603,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income | $778,182 | $670,292 | $585,746 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property, equipment and intangibles | 194,205 | 183,180 | 177,106 |
Amortization of debt premium, discount and issuance costs | 2,086 | 2,054 | 1,788 |
Excess tax benefit from stock options exercised | -49,150 | -30,811 | -38,631 |
Deferred income taxes | 1,487 | 1,919 | 8,162 |
Share-based compensation programs | 23,095 | 21,722 | 22,026 |
Other | 5,592 | 7,405 | 7,464 |
Changes in operating assets and liabilities: | |||
Accounts receivable | -19,271 | -16,937 | 4,404 |
Inventory | -179,742 | -96,876 | -276,904 |
Accounts payable | 360,646 | 127,178 | 645,706 |
Income taxes payable | 32,158 | 24,777 | 71,346 |
Accrued payroll | 12,923 | 5,400 | 7,655 |
Accrued benefits and withholdings | 28,899 | 2,355 | 5,464 |
Other | -680 | 6,368 | 30,223 |
Net cash provided by operating activities | 1,190,430 | 908,026 | 1,251,555 |
Investing activities: | |||
Purchases of property and equipment | -429,987 | -395,881 | -300,719 |
Proceeds from sale of property and equipment | 2,880 | 1,731 | 3,044 |
Payments received on notes receivable | 3,705 | 5,396 | 4,157 |
Other | 0 | 0 | -23,889 |
Net cash used in investing activities | -423,402 | -388,754 | -317,407 |
Financing activities: | |||
Proceeds from the issuance of long-term debt | 0 | 299,976 | 298,881 |
Payment of debt issuance costs | 0 | -2,967 | -2,376 |
Principal payments on debt and capital leases | -72 | -224 | -935 |
Repurchases of common stock | -866,484 | -933,028 | -1,445,287 |
Excess tax benefit from stock options exercised | 49,150 | 30,811 | 38,631 |
Net proceeds from issuance of common stock | 69,620 | 69,350 | 63,514 |
Net cash used in financing activities | -747,786 | -536,082 | -1,047,572 |
Net increase (decrease) in cash and cash equivalents | 19,242 | -16,810 | -113,424 |
Cash and cash equivalents at beginning of year | 231,318 | 248,128 | 361,552 |
Cash and cash equivalents at end of year | 250,560 | 231,318 | 248,128 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 416,458 | 362,596 | 274,637 |
Interest paid, net of capitalized interest | $51,203 | $46,760 | $34,655 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Policy Text Block [Abstract] | ||||||||
Summary of significant accounting policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Nature of business: | ||||||||
O'Reilly Automotive, Inc. ("O'Reilly" or the "Company") is a specialty retailer and supplier of automotive aftermarket parts. The Company's stores carry an extensive product line, including new and remanufactured automotive hard parts, maintenance items and various automotive accessories. As of December 31, 2014, the Company owned and operated 4,366 stores in 43 states, servicing both the do-it-yourself ("DIY") customer and the professional service provider. The Company's robust distribution system provides stores with same-day or overnight access to an extensive inventory of hard-to-find items not typically stocked in the stores of other auto parts retailers. | ||||||||
Segment reporting: | ||||||||
The Company is managed and operated by a single management team reporting to the chief operating decision maker. O'Reilly stores have similar characteristics including the nature of the products and services, the type and class of customers and the methods used to distribute products and provide service to its customers and, as a whole, make up a single operating segment. The Company does not prepare discrete financial information with respect to product lines, types of customers or geographic locations and as such has one reportable segment. | ||||||||
Reclassification: | ||||||||
Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no effect on reported totals for assets, liabilities, shareholders' equity, cash flows or net income. | ||||||||
Principles of consolidation: | ||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. | ||||||||
Use of estimates: | ||||||||
The preparation of the consolidated financial statements, in conformity with United States generally accepted accounting principles ("GAAP"), requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. | ||||||||
Cash equivalents: | ||||||||
Cash equivalents include investments with maturities of 90 days or less on the date of purchase. | ||||||||
Accounts receivable: | ||||||||
The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company's customers to make required payments. The Company considers the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. Allowances for doubtful accounts are determined based on historical experience and an evaluation of the current composition of accounts receivable. Amounts due to the Company from its Team Members are included as a component of accounts receivable. These amounts consist primarily of purchases of merchandise on Team Member accounts. Accounts receivable due from Team Members was approximately $1.0 million as of December 31, 2014 and 2013. | ||||||||
The Company grants credit to certain customers who meet the Company's pre-established credit requirements. Concentrations of credit risk with respect to these receivables are limited because the Company's customer base consists of a large number of small customers, spreading the credit risk across a broad base. The Company also controls this credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures. Generally, the Company does not require security when credit is granted to customers. Credit losses are provided for in the Company's consolidated financial statements and have consistently been within management's expectations. | ||||||||
Amounts receivable from suppliers: | ||||||||
The Company receives concessions from its suppliers through a variety of programs and arrangements, including allowances for new stores and warranties, volume purchase rebates and co-operative advertising. Co-operative advertising allowances that are incremental to the Company's advertising program, specific to a product or event and identifiable for accounting purposes are reported as a reduction of advertising expense in the period in which the advertising occurred. All other supplier concessions are recognized as a reduction to the cost of sales. Amounts receivable from suppliers also includes amounts due to the Company for changeover merchandise and product returns. The Company regularly reviews supplier receivables for collectability and assesses the need for a reserve for uncollectable amounts based on an evaluation of the Company's suppliers' financial positions and corresponding abilities to meet financial obligations. Management does not believe there is a reasonable likelihood that the Company will be unable to collect the amounts receivable from suppliers and the Company did not record a reserve for uncollectable amounts from suppliers in the consolidated financial statements as of December 31, 2014 or 2013. | ||||||||
Inventory: | ||||||||
Inventory, which consists of automotive hard parts, maintenance items, accessories and tools, is stated at the lower of cost or market. Inventory also includes capitalized costs related to procurement, warehousing and distribution centers ("DCs"). Cost has been determined using the last-in, first-out ("LIFO") method, which more accurately matches costs with related revenues. Over time, as the Company's merchandise inventory purchases have increased, the Company negotiated improved acquisition costs from its suppliers and the corresponding price deflation exhausted the Company's LIFO reserve balance. The Company's policy is to not write up the value of its inventory in excess of its replacement cost, and accordingly, the Company's merchandise inventory has been effectively recorded at replacement cost since December 31, 2013. The replacement cost of inventory was $2.56 billion and $2.38 billion as of December 31, 2014 and 2013, respectively. LIFO costs exceeded replacement costs by $61.4 million and $21.6 million at December 31, 2014 and 2013, respectively. | ||||||||
Property and equipment: | ||||||||
Property and equipment are carried at cost. Depreciation is calculated using the straight-line method generally over the estimated useful lives of the assets. Leasehold improvements are amortized over the lesser of the lease term or the estimated economic life of the assets. The lease term includes renewal options determined by management at lease inception for which failure to execute renewal options would result in a substantial economic penalty to the Company. Maintenance and repairs are charged to expense as incurred. Upon retirement or sale, the cost and accumulated depreciation are eliminated and the gain or loss, if any, is recognized in the Company's Consolidated Statements of Income. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. | ||||||||
Notes receivable: | ||||||||
The Company had notes receivable from suppliers and other third parties amounting to $17.5 million and $17.2 million at December 31, 2014 and 2013, respectively. The notes receivable, which do not bear interest, are due in varying amounts through March 22, 2022. The Company regularly reviews its notes receivable for collectability and assesses the need for a reserve for uncollectable amounts based on an evaluation of the Company's borrowers' financial positions and corresponding abilities to meet financial obligations. Management does not believe there is a reasonable likelihood that the Company will be unable to collect the notes receivable and the Company did not record a reserve for uncollectable notes receivable in the consolidated financial statements as of December 31, 2014 or 2013. | ||||||||
Goodwill and other intangibles: | ||||||||
The accompanying Consolidated Balance Sheets at December 31, 2014 and 2013, include goodwill and other intangible assets recorded as the result of acquisitions. The Company reviews goodwill for impairment annually during the fourth quarter, or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values, rather than systematically amortizing goodwill against earnings. During 2014 and 2013, the goodwill impairment test included a quantitative assessment, which compared the fair value of the reporting unit to its carrying amount, including goodwill. The Company operates as a single reporting unit, and the Company determined that its fair value exceeded its carrying value, including goodwill, as of December 31, 2014 and 2013; as such, no goodwill impairment adjustment was required as of December 31, 2014 and 2013. Finite-lived intangibles are carried at cost. Amortization is calculated using the straight-line method, generally over the estimated useful lives of the intangibles. | ||||||||
Impairment of long-lived assets: | ||||||||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. When such an event occurs, the Company compares the sum of the undiscounted expected future cash flows of the asset (asset group) with the carrying amounts of the asset. If the undiscounted expected future cash flows are less than the carrying value of the assets, the Company measures the amount of impairment loss as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company has not historically recorded any material impairment to its long-lived assets and the Company did not record an impairment to its long-lived assets during the year ended December 31, 2014 or 2013. | ||||||||
Valuation of investments: | ||||||||
The Company has an unsecured obligation to pay, in the future, the value of deferred compensation and a Company match relating to employee participation in the Company’s nonqualified deferred compensation plan (the "Deferred Compensation Plan") (see Note 9). The future obligation is adjusted to reflect the performance, whether positive or negative, of selected investment measurement options, chosen by each participant. The Company invests in various marketable securities with the intention of selling these securities to fulfill its future obligations under the Deferred Compensation Plan. The investments in this plan were stated at fair value based on quoted market prices (see Note 2), were accounted for as trading securities and were included as a component of "Other assets, net" on the accompanying Consolidated Balance Sheets as of December 31, 2014. | ||||||||
Self-insurance reserves: | ||||||||
The Company uses a combination of insurance and self-insurance mechanisms to provide for potential liabilities for Team Member health care benefits, workers' compensation, vehicle liability, general liability and property loss. With the exception of certain Team Member health care benefit liabilities, employment related claims and litigation, certain commercial litigation and certain regulatory matters, the Company obtains third-party insurance coverage to limit its exposure. The Company estimates its self-insurance liabilities by considering a number of factors, including historical claims experience and trend-lines, projected medical and legal inflation, growth patterns and exposure forecasts. Certain of these liabilities were recorded at an estimate of their net present value, using a credit-adjusted discount rate. | ||||||||
The following table identifies the components of the Company's self-insurance reserves as of December 31, 2014 and 2013 (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Self-insurance reserves (undiscounted) | $ | 132,879 | $ | 126,715 | ||||
Self-insurance reserves (discounted) | 123,276 | 116,062 | ||||||
The current portion of the Company's discounted self-insurance reserves totaled $64.9 million and $57.7 million as of December 31, 2014 and 2013, respectively. The remainder was included within "Other liabilities" on the accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013. | ||||||||
Warranties: | ||||||||
The Company offers 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 suppliers. Certain suppliers 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 supplier 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, which are recorded as obligations at the time of sale, 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. See Note 7 for further information concerning the Company's aggregate product warranty liability. | ||||||||
Litigation reserves: | ||||||||
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 on pending litigation matters. Although the Company cannot ascertain the total amount of liability that it may incur from any of these matters, the Company does not currently believe that in the aggregate, taking into account applicable insurance coverage, these matters will have a material adverse effect on its consolidated financial position, results of operations or cash flows. In addition, O'Reilly was involved in resolving legacy governmental investigations and litigation commenced by the Department of Justice ("DOJ") and Securities and Exchange Commission ("SEC") against CSK Automotive Corporation ("CSK") and certain former CSK employees arising out of alleged conduct relating to periods prior to the Company's acquisition of CSK in 2008; as a result, O'Reilly incurred legal fees and costs related to potential indemnification obligations. See Note 11 for further information concerning these legal matters. | ||||||||
Share repurchases: | ||||||||
In January of 2011, the Company's Board of Directors approved a share repurchase program. Under the program, 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. All shares repurchased under the share repurchase program are retired and recorded under the par value method on the accompanying Consolidated Balance Sheets. See Note 8 for further information concerning the Company's share repurchase program. | ||||||||
Revenue recognition: | ||||||||
Over-the-counter retail sales are recorded when the customer takes possession of the merchandise. Sales to professional service provider customers, also referred to as "commercial sales," are recorded upon same-day delivery of the merchandise to the customer, generally at the customer's place of business. Wholesale sales to other retailers, also referred to as "jobber sales," are recorded upon shipment of the merchandise from a regional DC with same-day delivery to the jobber customer's location. Internet retail sales are recorded when the merchandise is shipped or when the merchandise is picked up in a store. All sales are recorded net of estimated returns allowances, discounts and taxes. | ||||||||
Cost of goods sold and selling, general and administrative expenses: | ||||||||
The following table illustrates the primary costs classified in each major expense category: | ||||||||
Cost of goods sold, including warehouse and distribution expenses | Selling, general and administrative expenses | |||||||
Total cost of merchandise sold, including: | Payroll and benefit costs for store and corporate Team Members | |||||||
Freight expenses associated with acquiring merchandise and with moving merchandise inventories from the Company's distribution centers to the stores | Occupancy costs of store and corporate facilities | |||||||
Defective merchandise and warranty costs | Depreciation and amortization related to store and corporate assets | |||||||
Supplier allowances and incentives, including: | Vehicle expenses for store delivery services | |||||||
Allowances that are not reimbursements for specific, incremental and identifiable costs | Self-insurance costs | |||||||
Cash discounts on payments to suppliers | Closed store expenses | |||||||
Costs associated with the Company's supply chain, including: | Other administrative costs, including: | |||||||
Payroll and benefit costs | Accounting, legal and other professional services | |||||||
Warehouse occupancy costs | Bad debt, banking and credit card fees | |||||||
Transportation costs | Supplies | |||||||
Depreciation | Travel | |||||||
Inventory shrinkage | Advertising costs | |||||||
Operating leases: | ||||||||
The Company recognizes rent expense on a straight-line basis over the lease terms of its stores, DCs and corporate offices. Generally, the lease term for stores and corporate offices is the base lease term and the lease term for DCs includes the base lease term plus certain renewal option periods for which renewal is reasonably assured and failure to exercise the renewal option would result in a significant economic penalty. The Company's policy is to amortize leasehold improvements associated with the Company's operating leases over the lesser of the lease term or the estimated economic life of those assets. | ||||||||
Advertising expenses: | ||||||||
Advertising expense consists primarily of expenses related to the Company's integrated marketing program, which includes television, radio, direct mail and newspaper distribution, in-store and online promotions, and sports and event sponsorships. The Company expenses advertising costs as incurred. The Company also participates in cooperative advertising arrangements with certain of its suppliers. Advertising expense, net of cooperative advertising allowances from suppliers that were incremental to the advertising program, specific to the product or event and identifiable for accounting purposes, included as a component of "Selling, general and administrative expenses" ("SG&A") on the accompanying Consolidated Statements of Income amounted to $79.0 million, $78.3 million and $74.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Share-based compensation and benefit plans: | ||||||||
The Company sponsors employee share-based benefit plans and employee and director share-based compensation plans. The Company recognizes compensation expense over the requisite service period for its share-based plans based on the fair value of the awards on the date of the grant, award or issuance. Share-based plans include stock option awards issued under the Company's employee incentive plans, director stock plan, stock issued through the Company's employee stock purchase plan and stock awarded to employees and directors through other compensation plans. See Note 9 for further information concerning these plans. | ||||||||
Pre-opening expenses: | ||||||||
Costs associated with the opening of new stores, which consist primarily of payroll and occupancy costs, are charged to SG&A as incurred. Costs associated with the opening of new distribution centers, which consist primarily of payroll and occupancy costs, are included as a component of "Cost of goods sold, including warehouse and distribution expenses" on the accompanying Consolidated Statements of Income as incurred. | ||||||||
Interest expense: | ||||||||
The Company capitalizes interest costs as a component of construction in progress, based on the weighted-average interest rates incurred on its long-term borrowings. Total interest costs capitalized for the years ended December 31, 2014, 2013 and 2012, were $11.5 million, $10.6 million and $6.1 million, respectively. | ||||||||
In conjunction with the issuance or amendment of long-term debt instruments, the Company incurs various costs including debt registration fees, accounting and legal fees and underwriter and book runner fees. These debt issuance costs have been deferred and are being amortized over the term of the corresponding debt issue and the amortization expense is included as a component of "Interest expense" in the accompanying Consolidated Statements of Income. Deferred debt issuance costs totaled $9.9 million and $11.5 million, net of accumulated amortization, as of December 31, 2014 and 2013, respectively, of which $1.6 million and $1.6 million were included within "Other current assets" on the accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013, with the remainder included within "Other assets, net" on the accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013. | ||||||||
The Company issued its long-term senior notes at a discount. The original issuance discount on the senior notes is recorded as a reduction of the principal amount due for the corresponding senior notes and is accreted over the term of the applicable senior note, with the accretion expense included as a component of “Interest expense” in the accompanying Consolidated Statements of Income. Original issuance discounts, net of accretion, totaled $3.4 million and $3.9 million as of December 31, 2014 and 2013, respectively. | ||||||||
See Note 5 for further information concerning debt issuance costs and original issuance discounts associated with the issuances of or amendments to long-term debt instruments. | ||||||||
Income taxes: | ||||||||
The Company accounts for income taxes using the liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on differences between the GAAP basis and tax basis of assets and liabilities using enacted tax rules and rates currently scheduled to be in effect for the year in which the differences are expected to reverse. Tax carry forwards are also recognized in deferred tax assets and liabilities under this method. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date. The Company would record a valuation allowance against deferred tax assets to the extent it is more likely than not the amount will not be realized, based upon evidence available at the time of the determination and any change in the valuation allowance is recorded in the period of a change in such determination. The Company did not establish a valuation allowance for deferred tax assets as of December 31, 2014 and 2013, as it was considered more likely than not that deferred tax assets were realizable through a combination of future taxable income, the realization of deferred tax liabilities and tax planning strategies. The Company regularly reviews its potential tax liabilities for tax years subject to audit. The amount of such liabilities is based on various factors, such as differing interpretations of tax regulations by the responsible tax authority, experience with previous tax audits and applicable tax law rulings. Changes in the Company's tax liability may occur in the future as its assessments change based on the progress of tax examinations in various jurisdictions and/or changes in tax regulations. In management's opinion, adequate provisions for income taxes have been made for all years presented. The estimates of the Company's potential tax liabilities contain uncertainties because management must use judgment to estimate the exposures associated with the Company's various tax positions and actual results could differ from estimates. | ||||||||
Earnings per share: | ||||||||
Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the fiscal period. Diluted earnings per share is calculated by dividing the weighted-average number of common shares outstanding plus, the common stock equivalents associated with the potential impact of dilutive stock options. Certain common stock equivalents that could potentially dilute basic earnings per share in the future were not included in the fully diluted computation because they would have been antidilutive. Generally, stock options are antidilutive and excluded from the earnings per share calculation when the exercise price exceeds the market price of the common shares. See Note 14 for further information concerning these common stock equivalents. | ||||||||
New accounting pronouncements: | ||||||||
In May of 2014, the Financial Accounting Standards Board ("FASB") 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. | ||||||||
In August of 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40)" ("ASU 2014-15"). ASU 2014-15 will require management to assess an entity's ability to continue as a going concern for each annual and interim reporting period and to provide related footnote disclosure in circumstances in which substantial doubt exists. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter, with early application permitted. The Company will apply this guidance beginning with its annual period ending December 31, 2016; the application of this guidance affects disclosure only and, therefore, it is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 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. | |||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||
The carrying amount of the Company's marketable securities is included in "Other assets, net" on the accompanying Consolidated Balance Sheets as of December 31, 2014 (see Note 9). The table below identifies the estimated fair value of the Company's marketable securities, determined by reference to quoted market prices (Level 1), as of December 31, 2014 (in thousands): | ||||||||||||||||
Quoted Prices in Active Markets for | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | |||||||||||||
Identical Instruments | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
Marketable securities | $ | 15,378 | $ | — | $ | — | $ | 15,378 | ||||||||
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 December 31, 2014 and 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 Consolidated Balance Sheets as of December 31, 2014 and 2013 (see Note 5). | ||||||||||||||||
The table below identifies the estimated fair value of the Company's senior notes, using the market approach. The fair values of the Company's senior notes as of December 31, 2014 and 2013, were determined by reference to quoted market prices of the same or similar instruments (Level 2): | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
(in thousands) | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||
4.875% Senior Notes due 2021 | $ | 497,876 | $ | 566,700 | $ | 497,525 | $ | 524,434 | ||||||||
4.625% Senior Notes due 2021 | 299,650 | 337,222 | 299,598 | 310,141 | ||||||||||||
3.800% Senior Notes due 2022 | 299,109 | 310,749 | 299,011 | 290,453 | ||||||||||||
3.850% Senior Notes due 2023 | 299,980 | 311,656 | $ | 299,976 | $ | 289,362 | ||||||||||
The accompanying Consolidated Balance Sheets include other financial instruments, including cash and cash equivalents, accounts receivable, amounts receivable from suppliers 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. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property and equipment | NOTE 3 – PROPERTY AND EQUIPMENT | |||||||||
The following table identifies the types of property and equipment included in the accompanying consolidated financial statements as of December 31, 2014 and 2013 (in thousands, except useful lives): | ||||||||||
Original Useful Lives | December 31, 2014 | December 31, 2013 | ||||||||
Land | $ | 527,471 | $ | 457,858 | ||||||
Buildings and building improvements | 15 – 39 years | 1,418,479 | 1,197,369 | |||||||
Leasehold improvements | 3 – 25 years | 523,550 | 483,578 | |||||||
Furniture, fixtures and equipment | 3 – 20 years | 1,052,846 | 960,928 | |||||||
Vehicles | 5 – 10 years | 279,874 | 251,505 | |||||||
Construction in progress | 191,289 | 255,599 | ||||||||
Total property and equipment | 3,993,509 | 3,606,837 | ||||||||
Less: accumulated depreciation and amortization | 1,334,949 | 1,181,734 | ||||||||
Net property and equipment | $ | 2,658,560 | $ | 2,425,103 | ||||||
The Company recorded depreciation and amortization expense related to property and equipment in the amounts of $193.4 million, $183.2 million and $176.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
The contractual terms of all original and amended vehicle capital lease agreements expired in the fourth quarter of 2013. The vehicles under these expired capital lease agreements were either disposed, purchased by the Company or remain under short-term monthly agreements with the original lessor. The gross value of capital lease assets included in the "Vehicles" amount of the above table was $7.0 million at December 31, 2013. As of December 31, 2013, the Company recorded accumulated amortization on these capital lease assets in the amounts of $7.0 million, all of which was included in "accumulated depreciation and amortization" in the above table. |
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and other intangibles | NOTE 4 – GOODWILL AND OTHER INTANGIBLES | |||||||||||||||||||||||
Goodwill: | ||||||||||||||||||||||||
Goodwill is reviewed for impairment annually during the fourth quarter, or more frequently if events or changes in business conditions indicate that impairment may exist. Goodwill is not amortizable for financial statement purposes. During the year ended December 31, 2014, the Company recorded an increase in goodwill of $0.2 million, resulting from adjustments to purchase price allocations related to small acquisitions. During the year ended December 31, 2013, the Company recorded a decrease in goodwill of $2.2 million, resulting from adjustments to purchase price allocations related to small acquisitions. The Company did not record any goodwill impairment during the years ended December 31, 2014 or 2013. | ||||||||||||||||||||||||
The following table identifies the changes in goodwill for the years ended December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 758,410 | ||||||||||||||||||||||
Activity | (2,185 | ) | ||||||||||||||||||||||
Balance at December 31, 2013 | 756,225 | |||||||||||||||||||||||
Activity | 159 | |||||||||||||||||||||||
Balance at December 31, 2014 | $ | 756,384 | ||||||||||||||||||||||
As of December 31, 2014 and 2013, other than goodwill, the Company did not have any other indefinite lived intangible assets. | ||||||||||||||||||||||||
Intangibles other than goodwill: | ||||||||||||||||||||||||
The following table identifies the components of the Company's amortizable intangibles as of December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||
Cost of Amortizable | Accumulated Amortization | Net Amortizable Intangibles | ||||||||||||||||||||||
Intangibles | (Expense) Benefit | |||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||||||||||
Favorable leases | $ | 49,780 | $ | 50,910 | $ | (35,145 | ) | $ | (32,463 | ) | $ | 14,635 | $ | 18,447 | ||||||||||
Non-compete agreements | 617 | 647 | (344 | ) | (428 | ) | 273 | 219 | ||||||||||||||||
Total amortizable intangible assets | $ | 50,397 | $ | 51,557 | $ | (35,489 | ) | $ | (32,891 | ) | $ | 14,908 | $ | 18,666 | ||||||||||
Unfavorable leases | $ | 49,200 | $ | 49,380 | $ | 40,263 | $ | 36,758 | $ | 8,937 | $ | 12,622 | ||||||||||||
The Company recorded favorable lease assets in conjunction with the acquisition of CSK; these favorable lease assets represent the values of operating leases acquired with favorable terms. These favorable leases had an estimated weighted-average remaining useful life of approximately 9.4 years as of December 31, 2014. For the years ended December 31, 2014, 2013 and 2012, the Company recorded amortization expense of $3.9 million, $4.0 million and $4.7 million, respectively, related to its amortizable intangible assets, which are included in "Other assets, net" on the accompanying Consolidated Balance Sheets. | ||||||||||||||||||||||||
The Company recorded unfavorable lease liabilities in conjunction with the acquisition of CSK; these unfavorable lease liabilities represent the values of operating leases acquired with unfavorable terms. These unfavorable leases had an estimated weighted-average remaining useful life of approximately 4.5 years as of December 31, 2014. For the years ended December 31, 2014, 2013 and 2012, the Company recognized an amortized benefit of $3.7 million, $4.5 million and $5.7 million, respectively, related to these unfavorable operating leases, which are included in "Other liabilities" on the accompanying Consolidated Balance Sheets. | ||||||||||||||||||||||||
The following table identifies the estimated amortization expense and benefit of the Company's intangibles for each of the next five years as of December 31, 2014 (in thousands): | ||||||||||||||||||||||||
Amortization Expense | Amortization Benefit | Total Amortization (Expense) Benefit | ||||||||||||||||||||||
2015 | $ | (2,656 | ) | $ | 2,772 | $ | 116 | |||||||||||||||||
2016 | (2,301 | ) | 2,055 | (246 | ) | |||||||||||||||||||
2017 | (1,885 | ) | 1,493 | (392 | ) | |||||||||||||||||||
2018 | (1,422 | ) | 923 | (499 | ) | |||||||||||||||||||
2019 | (1,200 | ) | 712 | (488 | ) | |||||||||||||||||||
Total | $ | (9,464 | ) | $ | 7,955 | $ | (1,509 | ) | ||||||||||||||||
Financing
Financing | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Financing | NOTE 5 – FINANCING | |||||||
The following table identifies the balances of the Company's financing facilities as of December 31, 2014 and 2013 (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Revolving Credit Facility | $ | — | $ | — | ||||
4.875% Senior Notes due 2021 (1), effective interest rate of 4.966% | 497,876 | 497,525 | ||||||
4.625% Senior Notes due 2021 (2), effective interest rate of 4.648% | 299,650 | 299,598 | ||||||
3.800% Senior Notes due 2022 (3), effective interest rate of 3.845% | 299,109 | 299,011 | ||||||
3.850% Senior Notes due 2023 (4), effective interest rate of 3.851% | $ | 299,980 | $ | 299,976 | ||||
(1) | Net of unamortized discount of $2.1 million and $2.5 million as of December 31, 2014 and 2013, respectively. | |||||||
(2) | Net of unamortized discount of $0.4 million as of December 31, 2014 and 2013. | |||||||
(3) | Net of unamortized discount of $0.9 million and $1.0 million as of December 31, 2014 and 2013, respectively. | |||||||
(4) | Net of unamortized discount of less than $0.1 million as of December 31, 2014 and 2013. | |||||||
As of December 31, 2014, the Company had no principal maturities of its financing facilities scheduled within the next five years and $1.4 billion scheduled thereafter. | ||||||||
Unsecured revolving credit facility: | ||||||||
On January 14, 2011, the Company entered into a credit agreement, as amended by Amendment No. 1 dated as of September 9, 2011, and as further amended by Amendment No. 2 dated as of July 2, 2013 (the "Credit Agreement"). The Credit Agreement provides for a $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 December 31, 2014 and 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 $47.9 million and $51.7 million, respectively, reducing the aggregate availability under the Revolving Credit Facility by those amounts. As of December 31, 2014 and 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 Ratings Services ("S&P"), subject to limited exceptions. Based upon the Company's credit ratings at December 31, 2014, 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%. On January 26, 2015, S&P raised the Company's rating, which moved the Company's Revolving Credit Facility applicable rate to the tier one pricing level, thus reducing the facility fee and interest rate margins on borrowings on Eurodollar Rate loans. Based upon the Company's improved credit rating, its current margin for Base Rate loans is 0.000%, its margin for Eurodollar Rate loans is 0.875% and its facility fee is 0.125%. | ||||||||
The Credit Agreement contains certain covenants, including limitations on indebtedness, a minimum consolidated fixed charge coverage ratio of 2.25 times from March 31, 2013, 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 non-cash share-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 commitments, immediate payment of outstanding principal amounts plus accrued interest and other amounts payable under the Credit Agreement and litigation from lenders. As of December 31, 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. 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 obligations under the Company's Credit Agreement or under other credit facility or capital markets debt of the Company's or any of the Company's 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, is 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 December 31, 2014. |
Leasing
Leasing | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Leases [Abstract] | ||||||||||||||||
Leasing | NOTE 6 – LEASING | |||||||||||||||
The following table identifies the future minimum lease payments under all of the Company's operating and capital leases for each of the next five years and in the aggregate as of December 31, 2014 (in thousands): | ||||||||||||||||
Operating Leases | Capital Leases | |||||||||||||||
Related Parties | Non-Related Parties | Non-Related Parties | Total | |||||||||||||
2015 | $ | 4,621 | $ | 247,477 | $ | 25 | $ | 252,123 | ||||||||
2016 | 4,659 | 234,267 | — | 238,926 | ||||||||||||
2017 | 4,526 | 216,739 | — | 221,265 | ||||||||||||
2018 | 4,318 | 191,781 | — | 196,099 | ||||||||||||
2019 | 2,756 | 169,271 | — | 172,027 | ||||||||||||
Thereafter | 8,917 | 932,179 | — | 941,096 | ||||||||||||
Total | $ | 29,797 | $ | 1,991,714 | $ | 25 | $ | 2,021,536 | ||||||||
Capital lease agreements: | ||||||||||||||||
The Company assumed certain building capital leases in the acquisition of CSK. The only remaining building capital lease agreement will expire on April 30, 2015. The present value of future minimum lease payments under this building capital lease at December 31, 2014 and 2013, was less than $0.1 million and was classified as long-term debt in the accompanying Consolidated Balance Sheets. The Company did not acquire any additional buildings under capital leases during the years ended December 31, 2014 or 2013. | ||||||||||||||||
Operating lease commitments: | ||||||||||||||||
The Company leases certain office space, retail stores, property and equipment under long-term, non-cancelable operating leases. Most of these leases include renewal options and some include options to purchase, provisions for percentage rent based on sales and/or incremental step increase provisions. | ||||||||||||||||
The future minimum lease payments under the Company's operating leases, in the table above, do not include potential amounts for percentage rent or other operating lease related costs and have not been reduced by expected future minimum sublease income. Expected future minimum sublease income under non-cancelable subleases is approximately $15.3 million at December 31, 2014. | ||||||||||||||||
The following table summarizes the net rent expense amounts for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||
For the Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Minimum operating lease expense | $ | 254,565 | $ | 247,039 | $ | 234,113 | ||||||||||
Contingent rents | 759 | 701 | 744 | |||||||||||||
Other lease related occupancy costs | 11,688 | 11,257 | 10,043 | |||||||||||||
Total rent expense | 267,012 | 258,997 | 244,900 | |||||||||||||
Less: sublease income | 3,984 | 4,105 | 4,031 | |||||||||||||
Net rent expense | $ | 263,028 | $ | 254,892 | $ | 240,869 | ||||||||||
See Note 12 for further information on the Company's related party operating leases. |
Warranties
Warranties | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Product Warranties Disclosures [Abstract] | ||||||||
Warranties | NOTE 7 – WARRANTIES | |||||||
The Company's product warranty liabilities are included in "Other current liabilities" on the accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013. The following table identifies the changes in the Company's aggregate product warranty liabilities for the years ended December 31, 2014 and 2013 (in thousands): | ||||||||
2014 | 2013 | |||||||
Balance at January 1, | $ | 33,386 | $ | 28,001 | ||||
Warranty claims | (52,297 | ) | (50,859 | ) | ||||
Warranty accruals | 53,137 | 56,244 | ||||||
Balance at December 31, | $ | 34,226 | $ | 33,386 | ||||
Share_Repurchase_Program
Share Repurchase Program | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Proceeds from (Repurchase of) Equity [Abstract] | ||||||||
Share repurchase program | NOTE 8 – SHARE REPURCHASE PROGRAM | |||||||
In January of 2011, the Company's Board of Directors approved a share repurchase program. Under the program, 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, for a three-year period. 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, August 13, 2014, and February 4, 2015, the Company's Board of Directors each time approved a resolution to increase the authorization amount under the share repurchase program by an additional $500 million, resulting in a cumulative authorization amount of $5.0 billion. Each additional $500 million authorization is effective for a three-year period beginning on their respective announcement date. | ||||||||
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 Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Shares repurchased | 5,743 | 8,529 | ||||||
Average price per share | $ | 150.86 | $ | 109.38 | ||||
Total investment | $ | 866,398 | $ | 932,900 | ||||
As of December 31, 2014, the Company had $279.3 million remaining under its share repurchase program. Subsequent to the end of the year and through February 27, 2015, the Company repurchased an additional 0.1 million shares of our common stock under our share repurchase program, at an average price of $197.48, for a total investment of $27.8 million. The Company has repurchased a total of 46.5 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through February 27, 2015, at an average price of $91.38 for a total aggregate investment of $4.2 billion. As of February 27, 2015, the Company had approximately $751.5 million remaining under its share repurchase program. |
ShareBased_Compensation_and_Be
Share-Based Compensation and Benefit Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Employee Benefits and Share-based Compensation [Abstract] | |||||||||||||
Share-based employee compensation plans and other compensation and benefit plans | NOTE 9 – SHARE-BASED COMPENSATION AND BENEFIT PLANS | ||||||||||||
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. | |||||||||||||
The table below identifies the shares that have been authorized for issuance and the shares available for future issuance under the Company plans, as of December 31, 2014 (in thousands): | |||||||||||||
Plans | Total Shares Authorized for Issuance under the Plans | Shares Available for Future | |||||||||||
Issuance under the Plans | |||||||||||||
Employee Incentive Plans | 34,000 | 6,552 | |||||||||||
Director Stock Plan | 1,000 | 263 | |||||||||||
Performance Incentive Plan | 650 | 373 | |||||||||||
Employee Stock Purchase Plans | 4,250 | 824 | |||||||||||
Profit Sharing and Savings Plan | 4,200 | 349 | |||||||||||
Stock options: | |||||||||||||
The Company's employee incentive plans provide for the granting of stock options for the purchase of common stock of the Company to certain key employees of the Company. Employee stock 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. Employee stock 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 minimum required service period. | |||||||||||||
The table below identifies the employee stock option activity under these plans during the year ended December 31, 2014: | |||||||||||||
Shares | Weighted-Average Exercise Price | Average Remaining Contractual Terms | Aggregate | ||||||||||
(in thousands) | (in years) | Intrinsic Value | |||||||||||
(in thousands) | |||||||||||||
Outstanding at December 31, 2013 | 5,177 | $ | 54.28 | ||||||||||
Granted | 392 | 150.82 | |||||||||||
Exercised | (1,310 | ) | 45.26 | ||||||||||
Forfeited | (234 | ) | 85.25 | ||||||||||
Outstanding at December 31, 2014 | 4,025 | $ | 64.82 | 5.8 | $ | 514,443 | |||||||
Vested or expected to vest at December 31, 2014 | 3,879 | $ | 63.61 | 5.7 | $ | 500,413 | |||||||
Exercisable at December 31, 2014 | 2,617 | $ | 43.6 | 4.6 | $ | 389,953 | |||||||
The Company's director stock plan provides for the granting of stock options for the purchase of common stock of the Company to directors of the Company. Director stock 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 stock options granted under the plans expire after seven years and vest fully after six months. The Company records compensation expense for the grant date fair value of the option awards evenly over the vesting period. | |||||||||||||
The table below identifies the director stock option activity under this plan during the year ended December 31, 2014: | |||||||||||||
Shares | Weighted-Average Exercise Price | Average Remaining Contractual Terms | Aggregate | ||||||||||
(in thousands) | (in years) | Intrinsic Value | |||||||||||
(in thousands) | |||||||||||||
Outstanding at December 31, 2013 | 50 | $ | 37.37 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (10 | ) | 30.08 | ||||||||||
Forfeited | — | — | |||||||||||
Outstanding at December 31, 2014 | 40 | $ | 39.19 | 1.6 | $ | 6,137 | |||||||
Vested or expected to vest at December 31, 2014 | 40 | $ | 39.19 | 1.6 | $ | 6,137 | |||||||
Exercisable at December 31, 2014 | 40 | $ | 39.19 | 1.6 | $ | 6,137 | |||||||
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 grants awarded during the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk free interest rate | 1.6 | % | 0.96 | % | 0.59 | % | |||||||
Expected life | 5.3 | Years | 5 | Years | 3.9 | Years | |||||||
Expected volatility | 24.3 | % | 31 | % | 33.5 | % | |||||||
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 years ended December 31, 2014, 2013 and 2012: | |||||||||||||
For the Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Compensation expense for stock options awarded (in millions) | $ | 18.7 | $ | 17.8 | $ | 18.5 | |||||||
Income tax benefit from compensation expense related to stock options (in millions) | 6.9 | 6.8 | 7.1 | ||||||||||
Total intrinsic value of stock options exercised (in millions) | 147.2 | 95.8 | 113.6 | ||||||||||
Cash received from exercise of stock options (in millions) | 59.6 | 59.7 | 54.9 | ||||||||||
Weighted-average grant-date fair value of options awarded | $ | 38.18 | $ | 29.98 | $ | 23.57 | |||||||
Weighted-average remaining contractual life of exercisable options (in years) | 4.56 | 4.77 | 5.13 | ||||||||||
The remaining unrecognized compensation expense related to unvested stock option awards at December 31, 2014, was $28.3 million and the weighted-average period of time over which this cost will be recognized is 2.4 years. | |||||||||||||
Restricted stock: | |||||||||||||
The Company's performance incentive plan 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. Generally, unvested shares are forfeited when an employee ceases employment. The fair value of shares awarded under this plan is based on the closing market price of the Company's common stock on the date of award and compensation expense is recorded over the minimum required service period. | |||||||||||||
The table below identifies the employee restricted stock activity under this plan during the year ended December 31, 2014: | |||||||||||||
Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||
(in thousands) | |||||||||||||
Non-vested at December 31, 2013 | 20 | $ | 92.02 | ||||||||||
Granted during the period | 13 | 147.58 | |||||||||||
Vested during the period (1) | (16 | ) | 103.09 | ||||||||||
Forfeited during the period | (1 | ) | 121.85 | ||||||||||
Non-vested at December 31, 2014 | 16 | $ | 123.68 | ||||||||||
(1) | Includes 7 thousand shares withheld to cover employees' taxes upon vesting. | ||||||||||||
The Company's director stock plan provides for the award of shares of restricted stock that vest evenly over a three-year period and are held in escrow until such vesting has occurred. Unvested shares are forfeited when a director ceases their service on the Company's Board of Directors for reasons other than death or retirement. The fair value of shares awarded under this plan 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 identifies the director restricted stock activity under this plan during the year ended December 31, 2014: | |||||||||||||
Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||
(in thousands) | |||||||||||||
Non-vested at December 31, 2013 | 11 | $ | 94.18 | ||||||||||
Granted during the period | 3 | 146.05 | |||||||||||
Vested during the period | (6 | ) | 84.12 | ||||||||||
Forfeited during the period | — | — | |||||||||||
Non-vested at December 31, 2014 | 8 | $ | 124.44 | ||||||||||
The following table summarizes activity related to restricted stock awarded by the Company for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
For the Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Compensation expense for restricted shares awarded (in millions) | $ | 2.6 | $ | 2.2 | $ | 2 | |||||||
Income tax benefit from compensation expense related to restricted shares (in millions) | $ | 1 | $ | 0.8 | $ | 0.8 | |||||||
Total fair value of restricted shares at vest date (in millions) | $ | 3.7 | $ | 3.3 | $ | 2.7 | |||||||
Shares awarded under the plans (in thousands) | 16.4 | 21.2 | 23.7 | ||||||||||
Average grant-date fair value of shares awarded under the plans | $ | 147.23 | $ | 102.63 | $ | 90.1 | |||||||
The remaining unrecognized compensation expense related to unvested restricted share awards at December 31, 2014, was $2.0 million and the weighted-average period of time over which this cost will be recognized is 2.1 years. | |||||||||||||
Employee stock purchase plan: | |||||||||||||
The Company's employee stock purchase plan (the "ESPP") permits eligible employees to purchase shares of the Company's common stock at 85% of the fair market value. Employees may authorize the Company to withhold up to 5% of their annual salary to participate in the plan. The fair value of shares issued under the ESPP is based on the average of the high and low market prices of the Company's common stock during the offering periods. Compensation expense is recognized based on the discount between the grant-date fair value and the employee purchase price for the shares sold to employees. | |||||||||||||
The following table summarizes activity related to the Company's ESPP for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
For the Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Compensation expense for shares issued under the ESPP (in millions) | $ | 1.8 | $ | 1.7 | $ | 1.5 | |||||||
Income tax benefit from compensation expense for shares issued under the ESPP (in millions) | $ | 0.7 | $ | 0.6 | $ | 0.6 | |||||||
Shares issued under the ESPP (in thousands) | 77 | 100.6 | 114.6 | ||||||||||
Weighted-average price of shares issued under the ESPP | $ | 130.12 | $ | 95.51 | $ | 75.42 | |||||||
Profit sharing and savings plan: | |||||||||||||
The Company sponsors a contributory profit sharing and savings plan (the "401(k) Plan") that covers substantially all employees who are at least 21 years of age and have at least six months of service. The Company makes matching contributions equal to 100% of the first 2% of each employee's wages that are contributed and 25% of the next 4% of each employee's wages that are contributed. Beginning in 2014, an employee must be employed on December 31 to receive that year's Company matching contribution, with the matching contribution funded annually in the January following the year in which the matching contribution was earned. The Company may also make additional discretionary profit sharing contributions to the plan on an annual basis as determined by the Board of Directors. The Company did not make any discretionary contributions to the 401(k) Plan during the years ended December 31, 2014, 2013 or 2012. The Company expensed matching contributions under the 401(k) Plan in the amounts of $16.8 million, $16.5 million and $15.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Nonqualified deferred compensation plan: | |||||||||||||
The Company sponsors a nonqualified deferred compensation plan (the "Deferred Compensation Plan") for highly compensated employees whose contributions to the 401(k) Plan are limited due to the application of the annual limitations under the Internal Revenue Code. The Deferred Compensation Plan provides these employees with the opportunity to defer the full 6% of compensation, including salary and incentive based compensation that would have been covered under the 401(k) Plan, which are then matched by the Company using the same formula as the 401(k) Plan. Beginning in 2014, an employee must be employed on December 31 to receive that year's Company matching contribution, with the matching contribution funded annually in the January following the year in which the matching contribution was earned. In the event of bankruptcy, the assets of this plan are available to satisfy the claims of general creditors. The Company has an unsecured obligation to pay, in the future, the value of the deferred compensation and Company match adjusted to reflect the performance, whether positive or negative, of selected investment measurement options chosen by each participant during the deferral period. The liability for compensation deferred under the Deferred Compensation Plan was $15.4 million as of December 31, 2014, and was included within "Other liabilities" on the Consolidated Balance Sheet. The Company expensed matching contributions under the Deferred Compensation Plan in the amounts of $0.2 million, $0.2 million and $0.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | NOTE 10 – COMMITMENTS |
Construction commitments: | |
As of December 31, 2014, the Company had construction commitments in the amount of $65.9 million. | |
Letter of credit commitments: | |
As of December 31, 2014, the Company had outstanding letters of credit, primarily to satisfy workers' compensation, general liability and other insurance policies, in the amount of $47.9 million (see Note 5). | |
Debt financing commitments: | |
The Company's senior notes are redeemable in whole, at any time, or in part, from time to time, at the Company's option upon not less than 30 nor more than 60 days' notice at a redemption price, plus any accrued and unpaid interest to, but not including the redemption date, equal to the greater of (i) 100% of the principal amount thereof or (ii) the sum of the present value of the remaining scheduled payments of principal and interest thereon discounted to the redemption date on a semiannual basis at the applicable Treasury Yield plus basis points identified in the indentures governing the notes. In addition, if at any time the Company undergoes a Change of Control Triggering Event (as defined in the indentures governing the notes), the holders may require the Company to repurchase all or a portion of their senior notes at a price equal to 101% of the principal amount of the notes being repurchased, plus accrued and unpaid interest, if any, to but not including the repurchase date (see Note 5). | |
Self-insurance reserves: | |
The Company uses a combination of insurance and self-insurance mechanisms to provide for the potential liabilities for Team Member health care benefits, workers' compensation, vehicle liability, general liability and property loss. With the exception of certain Team Member health care benefit liabilities, employment related claims and litigation, certain commercial litigation and certain regulatory matters, the Company obtains third-party insurance coverage to limit its exposure to this obligation. |
Legal_Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2014 | |
Loss Contingency [Abstract] | |
Legal matters | NOTE 11 – 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. | |
The Company received a subpoena from the District Attorney of the County of Alameda, along with other environmental prosecutorial offices in the state of California, seeking documents and information related to the handling, storage and disposal of hazardous waste. Management has an ongoing and open dialogue with these agencies regarding this matter and is cooperating fully with the request; however, at this time a prediction of the ultimate outcome of these efforts cannot be determined. | |
In addition, O'Reilly was involved in resolving governmental investigations that were being conducted against CSK and CSK's former officers and other litigation, prior to its acquisition by O'Reilly, as described below. As previously reported all governmental investigations and litigation related to these CSK legacy issues, both civil and criminal, have concluded. However, 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 $11.6 million at December 31, 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. |
Related_Parties
Related Parties | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transaction | |
Related parties | NOTE 12 – RELATED PARTIES |
The Company leases certain land and buildings related to 77 of its O'Reilly Auto Parts stores and one of its bulk facilities under fifteen- or twenty-year operating lease agreements with entities in which certain of the Company's affiliated directors, members of an affiliated director's immediate family or certain of the Company's executive officers, are affiliated. Generally, these lease agreements provide for renewal options for an additional five years at the option of the Company and the lease agreements are periodically modified to further extend the lease term for specific stores under the agreements. Lease payments under these operating leases totaled $4.6 million, $4.4 million and $4.4 million during the years ended December 31, 2014, 2013 and 2012, respectively. The Company believes that the lease agreements with the affiliated entities are on terms comparable to those obtainable from third parties. See Note 6 for further information on the Company's operating leases. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deferred Income Taxes and Tax Credits [Abstract] | ||||||||||||
Income taxes | NOTE 13 – INCOME TAXES | |||||||||||
Deferred income tax assets and liabilities: | ||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and also include the tax effect of carryforwards. | ||||||||||||
The following table identifies significant components of the Company's deferred tax assets and liabilities as of December 31, 2014 and 2013 (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Current: | ||||||||||||
Allowance for doubtful accounts | $ | 2,357 | $ | 1,997 | ||||||||
Tax credits | 3,250 | 1,636 | ||||||||||
Other accruals | 67,468 | 61,100 | ||||||||||
Total current deferred tax assets | 73,075 | 64,733 | ||||||||||
Noncurrent: | ||||||||||||
Tax credits | 11,475 | 5,333 | ||||||||||
Net operating losses | 746 | 1,180 | ||||||||||
Other accruals | 63,968 | 59,176 | ||||||||||
Other | 16,468 | 16,181 | ||||||||||
Total noncurrent deferred tax assets | 92,657 | 81,870 | ||||||||||
Total deferred tax assets | 165,732 | 146,603 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Current: | ||||||||||||
Inventories | 90,333 | 84,955 | ||||||||||
Total current deferred tax liabilities | 90,333 | 84,955 | ||||||||||
Noncurrent: | ||||||||||||
Property and equipment | 139,604 | 131,851 | ||||||||||
Other | 38,217 | 30,732 | ||||||||||
Total noncurrent deferred tax liabilities | 177,821 | 162,583 | ||||||||||
Total deferred tax liabilities | 268,154 | 247,538 | ||||||||||
Net deferred tax liabilities | $ | (102,422 | ) | $ | (100,935 | ) | ||||||
The following table reconciles the above net deferred tax assets (liabilities) as presented on the accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013 (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets - current | $ | 73,075 | $ | 64,733 | ||||||||
Deferred tax liabilities - current | (90,333 | ) | (84,955 | ) | ||||||||
Deferred tax liabilities - current | (17,258 | ) | (20,222 | ) | ||||||||
Deferred tax assets - noncurrent | 92,657 | 81,870 | ||||||||||
Deferred tax liabilities - noncurrent | (177,821 | ) | (162,583 | ) | ||||||||
Deferred tax liabilities - noncurrent | (85,164 | ) | (80,713 | ) | ||||||||
Net deferred tax liabilities | $ | (102,422 | ) | $ | (100,935 | ) | ||||||
Provision for income taxes: | ||||||||||||
The following table reconciles the “Provision for income taxes" included in the accompanying Consolidated Statements of Income for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||
Current | Deferred | Total | ||||||||||
2014 | ||||||||||||
Federal | $ | 399,271 | $ | 5,987 | $ | 405,258 | ||||||
State | 43,242 | (4,500 | ) | 38,742 | ||||||||
$ | 442,513 | $ | 1,487 | $ | 444,000 | |||||||
2013 | ||||||||||||
Federal | $ | 348,303 | $ | 847 | $ | 349,150 | ||||||
State | 38,428 | 1,072 | 39,500 | |||||||||
$ | 386,731 | $ | 1,919 | $ | 388,650 | |||||||
2012 | ||||||||||||
Federal | $ | 311,631 | $ | 10,030 | $ | 321,661 | ||||||
State | 35,982 | (1,868 | ) | 34,114 | ||||||||
$ | 347,613 | $ | 8,162 | $ | 355,775 | |||||||
The following table outlines the reconciliation of the “Provision for income taxes" amounts included in the accompanying Consolidated Statements of Income to the amounts computed at the federal statutory rate for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal income taxes at statutory rate | $ | 427,764 | $ | 370,632 | $ | 329,532 | ||||||
State income taxes, net of federal tax benefit | 25,320 | 26,802 | 22,426 | |||||||||
Other items, net | (9,084 | ) | (8,784 | ) | 3,817 | |||||||
Total provision for income taxes | $ | 444,000 | $ | 388,650 | $ | 355,775 | ||||||
The excess tax benefit associated with the exercise of non-qualified stock options has been included within “Additional paid-in capital" on the accompanying consolidated financial statements. | ||||||||||||
As of December 31, 2014, the Company had tax credit carryforwards available for state tax purposes, net of federal impact, of $14.7 million. As of December 31, 2014, the Company had net operating loss carryforwards available for state purposes of $19.7 million. The Company's state net operating loss carryforwards generally expire in years ranging from 2022 to 2028, and the Company's tax credits generally expire in 2024. | ||||||||||||
CSK had net operating losses in various years dating back to the tax year 1993. For CSK, the statute of limitation for a particular tax year for examination by the IRS is three years subsequent to the last year in which the loss carryover is finally used. The IRS completed an examination of the CSK consolidated federal tax return for the fiscal years ended January 30, 2005, January 29, 2006, February 4, 2007 and February 2, 2008. The statute of limitation for a particular tax year for examination by various states is generally three to four years subsequent to the last year in which the loss carryover is finally used. | ||||||||||||
Unrecognized tax benefits: | ||||||||||||
The following table summarizes the changes in the gross amount of unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance as of January 1, | $ | 50,459 | $ | 51,004 | $ | 45,800 | ||||||
Additions based on tax positions related to the current year | 4,665 | 7,046 | 8,100 | |||||||||
Additions based on tax positions related to prior years | — | — | 1,301 | |||||||||
Payments related to items settled with taxing authorities | (300 | ) | (1,056 | ) | (451 | ) | ||||||
Reductions due to the lapse of statute of limitations and settlements | (5,226 | ) | (6,535 | ) | (3,746 | ) | ||||||
Balance as of December 31, | $ | 49,598 | $ | 50,459 | $ | 51,004 | ||||||
For the years ended December 31, 2014, 2013 and 2012, the Company recorded a reserve for unrecognized tax benefits (including interest and penalties) of $58.4 million, $58.6 million and $59.3 million, respectively. All of the unrecognized tax benefits recorded as of December 31, 2014, would affect the Company's effective tax rate if recognized, generally net of the federal tax effect of approximately $16.8 million. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of the years ended December 31, 2014, 2013 and 2012, the Company had accrued approximately $8.8 million, $8.1 million and $8.3 million, respectively, of interest and penalties related to uncertain tax positions before the benefit of the deduction for interest on state and federal returns. During the years ended December 31, 2014, 2013 and 2012, the Company recorded tax expense related to an increase in its liability for interest and penalties of $2.8 million, $2.1 million and $2.6 million, respectively. Although unrecognized tax benefits for individual tax positions may increase or decrease during 2015, the Company expects a reduction of $17.0 million of unrecognized tax benefits during the one-year period subsequent to December 31, 2014, resulting from settlement or expiration of the statute of limitations. | ||||||||||||
The Company's United States federal income tax returns for tax years 2012 and beyond remain subject to examination by the Internal Revenue Service (“IRS"). The IRS concluded an examination of the O'Reilly consolidated 2011 federal income tax return in the second quarter of 2014. The statute of limitations for the Company's federal income tax returns for tax years 2010 and prior expired on September 15, 2014. The statute of limitations for the Company's U.S. federal income tax return for 2011 will expire on September 15, 2015, unless otherwise extended. The IRS is currently conducting an examination of the Company's consolidated returns for the tax year 2012 and 2013. The Company's state income tax returns remain subject to examination by various state authorities for tax years ranging from 2003 through 2013. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings per share | NOTE 14 – EARNINGS PER SHARE | |||||||||||
The following table reconciles the numerator and denominator used in the basic and diluted earnings per share calculations for the years ended December 31, 2014, 2013 and 2012 (in thousands, except per share data): | ||||||||||||
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator (basic and diluted): | ||||||||||||
Net income | $ | 778,182 | $ | 670,292 | $ | 585,746 | ||||||
Denominator: | ||||||||||||
Denominator for basic earnings per share - weighted-average shares | 104,262 | 109,244 | 121,182 | |||||||||
Effect of stock options (1) | 1,779 | 1,857 | 2,132 | |||||||||
Denominator for diluted earnings per share - weighted-average shares | 106,041 | 111,101 | 123,314 | |||||||||
Earnings per share: | ||||||||||||
Earnings per share-basic | $ | 7.46 | $ | 6.14 | $ | 4.83 | ||||||
Earnings per share-assuming dilution | $ | 7.34 | $ | 6.03 | $ | 4.75 | ||||||
Antidilutive potential common shares not included in the calculation of diluted earnings per share: | ||||||||||||
Stock options (1) | 363 | 498 | 1,816 | |||||||||
Weighted-average exercise price per share of antidilutive stock options (1) | $ | 151.65 | $ | 103.8 | $ | 87.88 | ||||||
(1) | See Note 9 for further discussion on the terms of the Company's share-based compensation plans. | |||||||||||
Subsequent to the end of the year and through February 27, 2015, the Company repurchased 0.1 million shares of its common stock, at an average price of $197.48, for a total investment of $27.8 million. |
Quarterly_Results_Unaudited
Quarterly Results (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Quarterly results (unaudited) | NOTE 15 – QUARTERLY RESULTS (Unaudited) | |||||||||||||||
The following table sets forth certain quarterly unaudited operating data for the fiscal years ended December 31, 2014 and 2013. The unaudited quarterly information includes all adjustments, which the Company considers necessary for a fair presentation of the information shown: | ||||||||||||||||
Fiscal 2014 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Sales | $ | 1,727,943 | $ | 1,847,088 | $ | 1,876,872 | $ | 1,764,178 | ||||||||
Gross profit | 877,716 | 950,877 | 968,201 | 912,107 | ||||||||||||
Operating income | 287,120 | 336,474 | 343,768 | 303,012 | ||||||||||||
Net income | 173,860 | 205,647 | 216,997 | 181,678 | ||||||||||||
Earnings per share – basic (1) | $ | 1.64 | $ | 1.94 | $ | 2.1 | $ | 1.79 | ||||||||
Earnings per share – assuming dilution (1) | $ | 1.61 | $ | 1.91 | $ | 2.06 | $ | 1.76 | ||||||||
Fiscal 2013 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Sales | $ | 1,585,009 | $ | 1,714,969 | $ | 1,728,025 | $ | 1,621,234 | ||||||||
Gross profit | 798,663 | 871,875 | 879,163 | 819,300 | ||||||||||||
Operating income | 251,084 | 296,261 | 300,380 | 255,760 | ||||||||||||
Net income | 154,329 | 177,127 | 186,489 | 152,347 | ||||||||||||
Earnings per share – basic (1) | $ | 1.38 | $ | 1.61 | $ | 1.72 | $ | 1.43 | ||||||||
Earnings per share – assuming dilution (1) | $ | 1.36 | $ | 1.58 | $ | 1.69 | $ | 1.4 | ||||||||
(1) | Earnings per share amounts are computed independently for each quarter and annual period. The quarterly earnings per share amounts may not sum to equal the full-year earnings per share. | |||||||||||||||
The unaudited operating data presented above should be read in conjunction with the Company's consolidated financial statements and related notes, and the other financial information included therein. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||
Schedule II - valuation and qualifying accounts | O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES | |||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Description | Balance at | Additions - Charged to | Additions - Charged to | Deductions - | Balance at | |||||||||||||||||
Beginning of Period | Costs and Expenses | Other Accounts - Describe | Describe | End of Period | ||||||||||||||||||
Sales and returns allowances: | ||||||||||||||||||||||
For the year ended December 31, 2014 | $ | 6,500 | $ | 355 | $ | — | $ | — | $ | 6,855 | ||||||||||||
For the year ended December 31, 2013 | 7,326 | (826 | ) | — | — | 6,500 | ||||||||||||||||
For the year ended December 31, 2012 | 6,406 | 920 | — | — | 7,326 | |||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||||
For the year ended December 31, 2014 | $ | 6,661 | $ | 8,919 | $ | — | $ | 6,867 | (1) | $ | 8,713 | |||||||||||
For the year ended December 31, 2013 | 6,447 | 8,499 | — | 8,285 | (1) | 6,661 | ||||||||||||||||
For the year ended December 31, 2012 | 6,403 | 8,043 | — | 7,999 | (1) | 6,447 | ||||||||||||||||
(1) | Uncollectable accounts written off. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Policy Text Block [Abstract] | |||
Nature of business | Nature of business: | ||
O'Reilly Automotive, Inc. ("O'Reilly" or the "Company") is a specialty retailer and supplier of automotive aftermarket parts. The Company's stores carry an extensive product line, including new and remanufactured automotive hard parts, maintenance items and various automotive accessories. As of December 31, 2014, the Company owned and operated 4,366 stores in 43 states, servicing both the do-it-yourself ("DIY") customer and the professional service provider. The Company's robust distribution system provides stores with same-day or overnight access to an extensive inventory of hard-to-find items not typically stocked in the stores of other auto parts retailers. | |||
Segment reporting | Segment reporting: | ||
The Company is managed and operated by a single management team reporting to the chief operating decision maker. O'Reilly stores have similar characteristics including the nature of the products and services, the type and class of customers and the methods used to distribute products and provide service to its customers and, as a whole, make up a single operating segment. The Company does not prepare discrete financial information with respect to product lines, types of customers or geographic locations and as such has one reportable segment. | |||
Reclassification | Reclassification: | ||
Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no effect on reported totals for assets, liabilities, shareholders' equity, cash flows or net income. | |||
Principles of consolidation | Principles of consolidation: | ||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. | |||
Use of estimates | Use of estimates: | ||
The preparation of the consolidated financial statements, in conformity with United States generally accepted accounting principles ("GAAP"), requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. | |||
Cash equivalents | Cash equivalents: | ||
Cash equivalents include investments with maturities of 90 days or less on the date of purchase. | |||
Accounts receivable | Accounts receivable: | ||
The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company's customers to make required payments. The Company considers the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. Allowances for doubtful accounts are determined based on historical experience and an evaluation of the current composition of accounts receivable. Amounts due to the Company from its Team Members are included as a component of accounts receivable. These amounts consist primarily of purchases of merchandise on Team Member accounts. Accounts receivable due from Team Members was approximately $1.0 million as of December 31, 2014 and 2013. | |||
The Company grants credit to certain customers who meet the Company's pre-established credit requirements. Concentrations of credit risk with respect to these receivables are limited because the Company's customer base consists of a large number of small customers, spreading the credit risk across a broad base. The Company also controls this credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures. Generally, the Company does not require security when credit is granted to customers. Credit losses are provided for in the Company's consolidated financial statements and have consistently been within management's expectations. | |||
Amounts receivable from vendors | Amounts receivable from suppliers: | ||
The Company receives concessions from its suppliers through a variety of programs and arrangements, including allowances for new stores and warranties, volume purchase rebates and co-operative advertising. Co-operative advertising allowances that are incremental to the Company's advertising program, specific to a product or event and identifiable for accounting purposes are reported as a reduction of advertising expense in the period in which the advertising occurred. All other supplier concessions are recognized as a reduction to the cost of sales. Amounts receivable from suppliers also includes amounts due to the Company for changeover merchandise and product returns. The Company regularly reviews supplier receivables for collectability and assesses the need for a reserve for uncollectable amounts based on an evaluation of the Company's suppliers' financial positions and corresponding abilities to meet financial obligations. Management does not believe there is a reasonable likelihood that the Company will be unable to collect the amounts receivable from suppliers and the Company did not record a reserve for uncollectable amounts from suppliers in the consolidated financial statements as of December 31, 2014 or 2013. | |||
Inventory | Inventory: | ||
Inventory, which consists of automotive hard parts, maintenance items, accessories and tools, is stated at the lower of cost or market. Inventory also includes capitalized costs related to procurement, warehousing and distribution centers ("DCs"). Cost has been determined using the last-in, first-out ("LIFO") method, which more accurately matches costs with related revenues. Over time, as the Company's merchandise inventory purchases have increased, the Company negotiated improved acquisition costs from its suppliers and the corresponding price deflation exhausted the Company's LIFO reserve balance. The Company's policy is to not write up the value of its inventory in excess of its replacement cost, and accordingly, the Company's merchandise inventory has been effectively recorded at replacement cost since December 31, 2013. The replacement cost of inventory was $2.56 billion and $2.38 billion as of December 31, 2014 and 2013, respectively. LIFO costs exceeded replacement costs by $61.4 million and $21.6 million at December 31, 2014 and 2013, respectively. | |||
Property and equipment | Property and equipment: | ||
Property and equipment are carried at cost. Depreciation is calculated using the straight-line method generally over the estimated useful lives of the assets. Leasehold improvements are amortized over the lesser of the lease term or the estimated economic life of the assets. The lease term includes renewal options determined by management at lease inception for which failure to execute renewal options would result in a substantial economic penalty to the Company. Maintenance and repairs are charged to expense as incurred. Upon retirement or sale, the cost and accumulated depreciation are eliminated and the gain or loss, if any, is recognized in the Company's Consolidated Statements of Income. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. | |||
Notes receivable | Notes receivable: | ||
The Company had notes receivable from suppliers and other third parties amounting to $17.5 million and $17.2 million at December 31, 2014 and 2013, respectively. The notes receivable, which do not bear interest, are due in varying amounts through March 22, 2022. The Company regularly reviews its notes receivable for collectability and assesses the need for a reserve for uncollectable amounts based on an evaluation of the Company's borrowers' financial positions and corresponding abilities to meet financial obligations. Management does not believe there is a reasonable likelihood that the Company will be unable to collect the notes receivable and the Company did not record a reserve for uncollectable notes receivable in the consolidated financial statements as of December 31, 2014 or 2013. | |||
Goodwill and other intangibles | Goodwill and other intangibles: | ||
The accompanying Consolidated Balance Sheets at December 31, 2014 and 2013, include goodwill and other intangible assets recorded as the result of acquisitions. The Company reviews goodwill for impairment annually during the fourth quarter, or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values, rather than systematically amortizing goodwill against earnings. During 2014 and 2013, the goodwill impairment test included a quantitative assessment, which compared the fair value of the reporting unit to its carrying amount, including goodwill. The Company operates as a single reporting unit, and the Company determined that its fair value exceeded its carrying value, including goodwill, as of December 31, 2014 and 2013; as such, no goodwill impairment adjustment was required as of December 31, 2014 and 2013. Finite-lived intangibles are carried at cost. Amortization is calculated using the straight-line method, generally over the estimated useful lives of the intangibles. | |||
Impairment of long-lived assets | Impairment of long-lived assets: | ||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. When such an event occurs, the Company compares the sum of the undiscounted expected future cash flows of the asset (asset group) with the carrying amounts of the asset. If the undiscounted expected future cash flows are less than the carrying value of the assets, the Company measures the amount of impairment loss as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company has not historically recorded any material impairment to its long-lived assets and the Company did not record an impairment to its long-lived assets during the year ended December 31, 2014 or 2013. | |||
Valuation of investments | Valuation of investments: | ||
The Company has an unsecured obligation to pay, in the future, the value of deferred compensation and a Company match relating to employee participation in the Company’s nonqualified deferred compensation plan (the "Deferred Compensation Plan") (see Note 9). The future obligation is adjusted to reflect the performance, whether positive or negative, of selected investment measurement options, chosen by each participant. The Company invests in various marketable securities with the intention of selling these securities to fulfill its future obligations under the Deferred Compensation Plan. The investments in this plan were stated at fair value based on quoted market prices (see Note 2), were accounted for as trading securities and were included as a component of "Other assets, net" on the accompanying Consolidated Balance Sheets as of December 31, 2014. | |||
Self-insurance reserves | Self-insurance reserves: | ||
The Company uses a combination of insurance and self-insurance mechanisms to provide for potential liabilities for Team Member health care benefits, workers' compensation, vehicle liability, general liability and property loss. With the exception of certain Team Member health care benefit liabilities, employment related claims and litigation, certain commercial litigation and certain regulatory matters, the Company obtains third-party insurance coverage to limit its exposure. The Company estimates its self-insurance liabilities by considering a number of factors, including historical claims experience and trend-lines, projected medical and legal inflation, growth patterns and exposure forecasts. | |||
Warranties | Warranties: | ||
The Company offers 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 suppliers. Certain suppliers 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 supplier 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, which are recorded as obligations at the time of sale, 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. | |||
Litigation reserves | Litigation reserves: | ||
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 on pending litigation matters. Although the Company cannot ascertain the total amount of liability that it may incur from any of these matters, the Company does not currently believe that in the aggregate, taking into account applicable insurance coverage, these matters will have a material adverse effect on its consolidated financial position, results of operations or cash flows. In addition, O'Reilly was involved in resolving legacy governmental investigations and litigation commenced by the Department of Justice ("DOJ") and Securities and Exchange Commission ("SEC") against CSK Automotive Corporation ("CSK") and certain former CSK employees arising out of alleged conduct relating to periods prior to the Company's acquisition of CSK in 2008; as a result, O'Reilly incurred legal fees and costs related to potential indemnification obligations. | |||
Share repurchases | Share repurchases: | ||
In January of 2011, the Company's Board of Directors approved a share repurchase program. Under the program, 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. All shares repurchased under the share repurchase program are retired and recorded under the par value method on the accompanying Consolidated Balance Sheets. | |||
Revenue recognition | Revenue recognition: | ||
Over-the-counter retail sales are recorded when the customer takes possession of the merchandise. Sales to professional service provider customers, also referred to as "commercial sales," are recorded upon same-day delivery of the merchandise to the customer, generally at the customer's place of business. Wholesale sales to other retailers, also referred to as "jobber sales," are recorded upon shipment of the merchandise from a regional DC with same-day delivery to the jobber customer's location. Internet retail sales are recorded when the merchandise is shipped or when the merchandise is picked up in a store. All sales are recorded net of estimated returns allowances, discounts and taxes. | |||
Cost of goods sold and selling, general and administrative expenses | Cost of goods sold and selling, general and administrative expenses: | ||
The following table illustrates the primary costs classified in each major expense category: | |||
Cost of goods sold, including warehouse and distribution expenses | Selling, general and administrative expenses | ||
Total cost of merchandise sold, including: | Payroll and benefit costs for store and corporate Team Members | ||
Freight expenses associated with acquiring merchandise and with moving merchandise inventories from the Company's distribution centers to the stores | Occupancy costs of store and corporate facilities | ||
Defective merchandise and warranty costs | Depreciation and amortization related to store and corporate assets | ||
Supplier allowances and incentives, including: | Vehicle expenses for store delivery services | ||
Allowances that are not reimbursements for specific, incremental and identifiable costs | Self-insurance costs | ||
Cash discounts on payments to suppliers | Closed store expenses | ||
Costs associated with the Company's supply chain, including: | Other administrative costs, including: | ||
Payroll and benefit costs | Accounting, legal and other professional services | ||
Warehouse occupancy costs | Bad debt, banking and credit card fees | ||
Transportation costs | Supplies | ||
Depreciation | Travel | ||
Inventory shrinkage | Advertising costs | ||
Operating leases | Operating leases: | ||
The Company recognizes rent expense on a straight-line basis over the lease terms of its stores, DCs and corporate offices. Generally, the lease term for stores and corporate offices is the base lease term and the lease term for DCs includes the base lease term plus certain renewal option periods for which renewal is reasonably assured and failure to exercise the renewal option would result in a significant economic penalty. The Company's policy is to amortize leasehold improvements associated with the Company's operating leases over the lesser of the lease term or the estimated economic life of those assets. | |||
Advertising expenses | Advertising expenses: | ||
Advertising expense consists primarily of expenses related to the Company's integrated marketing program, which includes television, radio, direct mail and newspaper distribution, in-store and online promotions, and sports and event sponsorships. The Company expenses advertising costs as incurred. The Company also participates in cooperative advertising arrangements with certain of its suppliers. Advertising expense, net of cooperative advertising allowances from suppliers that were incremental to the advertising program, specific to the product or event and identifiable for accounting purposes, included as a component of "Selling, general and administrative expenses" ("SG&A") on the accompanying Consolidated Statements of Income amounted to $79.0 million, $78.3 million and $74.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||
Share-based compensation and benefit plans | Share-based compensation and benefit plans: | ||
The Company sponsors employee share-based benefit plans and employee and director share-based compensation plans. The Company recognizes compensation expense over the requisite service period for its share-based plans based on the fair value of the awards on the date of the grant, award or issuance. Share-based plans include stock option awards issued under the Company's employee incentive plans, director stock plan, stock issued through the Company's employee stock purchase plan and stock awarded to employees and directors through other compensation plans. | |||
Pre-opening expenses | Pre-opening expenses: | ||
Costs associated with the opening of new stores, which consist primarily of payroll and occupancy costs, are charged to SG&A as incurred. Costs associated with the opening of new distribution centers, which consist primarily of payroll and occupancy costs, are included as a component of "Cost of goods sold, including warehouse and distribution expenses" on the accompanying Consolidated Statements of Income as incurred. | |||
Interest expense | Interest expense: | ||
The Company capitalizes interest costs as a component of construction in progress, based on the weighted-average interest rates incurred on its long-term borrowings. Total interest costs capitalized for the years ended December 31, 2014, 2013 and 2012, were $11.5 million, $10.6 million and $6.1 million, respectively. | |||
In conjunction with the issuance or amendment of long-term debt instruments, the Company incurs various costs including debt registration fees, accounting and legal fees and underwriter and book runner fees. These debt issuance costs have been deferred and are being amortized over the term of the corresponding debt issue and the amortization expense is included as a component of "Interest expense" in the accompanying Consolidated Statements of Income. Deferred debt issuance costs totaled $9.9 million and $11.5 million, net of accumulated amortization, as of December 31, 2014 and 2013, respectively, of which $1.6 million and $1.6 million were included within "Other current assets" on the accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013, with the remainder included within "Other assets, net" on the accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013. | |||
The Company issued its long-term senior notes at a discount. The original issuance discount on the senior notes is recorded as a reduction of the principal amount due for the corresponding senior notes and is accreted over the term of the applicable senior note, with the accretion expense included as a component of “Interest expense” in the accompanying Consolidated Statements of Income. Original issuance discounts, net of accretion, totaled $3.4 million and $3.9 million as of December 31, 2014 and 2013, respectively. | |||
Income taxes | Income taxes: | ||
The Company accounts for income taxes using the liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on differences between the GAAP basis and tax basis of assets and liabilities using enacted tax rules and rates currently scheduled to be in effect for the year in which the differences are expected to reverse. Tax carry forwards are also recognized in deferred tax assets and liabilities under this method. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date. The Company would record a valuation allowance against deferred tax assets to the extent it is more likely than not the amount will not be realized, based upon evidence available at the time of the determination and any change in the valuation allowance is recorded in the period of a change in such determination. The Company did not establish a valuation allowance for deferred tax assets as of December 31, 2014 and 2013, as it was considered more likely than not that deferred tax assets were realizable through a combination of future taxable income, the realization of deferred tax liabilities and tax planning strategies. The Company regularly reviews its potential tax liabilities for tax years subject to audit. The amount of such liabilities is based on various factors, such as differing interpretations of tax regulations by the responsible tax authority, experience with previous tax audits and applicable tax law rulings. Changes in the Company's tax liability may occur in the future as its assessments change based on the progress of tax examinations in various jurisdictions and/or changes in tax regulations. In management's opinion, adequate provisions for income taxes have been made for all years presented. The estimates of the Company's potential tax liabilities contain uncertainties because management must use judgment to estimate the exposures associated with the Company's various tax positions and actual results could differ from estimates. | |||
Earnings per share | Earnings per share: | ||
Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the fiscal period. Diluted earnings per share is calculated by dividing the weighted-average number of common shares outstanding plus, the common stock equivalents associated with the potential impact of dilutive stock options. Certain common stock equivalents that could potentially dilute basic earnings per share in the future were not included in the fully diluted computation because they would have been antidilutive. Generally, stock options are antidilutive and excluded from the earnings per share calculation when the exercise price exceeds the market price of the common shares. | |||
New accounting pronouncements | New accounting pronouncements: | ||
In May of 2014, the Financial Accounting Standards Board ("FASB") 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. | |||
In August of 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40)" ("ASU 2014-15"). ASU 2014-15 will require management to assess an entity's ability to continue as a going concern for each annual and interim reporting period and to provide related footnote disclosure in circumstances in which substantial doubt exists. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter, with early application permitted. The Company will apply this guidance beginning with its annual period ending December 31, 2016; the application of this guidance affects disclosure only and, therefore, it is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Policy Text Block [Abstract] | ||||||||
Components of self-insurance reserves | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Self-insurance reserves (undiscounted) | $ | 132,879 | $ | 126,715 | ||||
Self-insurance reserves (discounted) | 123,276 | 116,062 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||||||||||||||||
Valuation of marketable securities | ||||||||||||||||
Quoted Prices in Active Markets for | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | |||||||||||||
Identical Instruments | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
Marketable securities | $ | 15,378 | $ | — | $ | — | $ | 15,378 | ||||||||
Valuation of senior notes | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
(in thousands) | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||
4.875% Senior Notes due 2021 | $ | 497,876 | $ | 566,700 | $ | 497,525 | $ | 524,434 | ||||||||
4.625% Senior Notes due 2021 | 299,650 | 337,222 | 299,598 | 310,141 | ||||||||||||
3.800% Senior Notes due 2022 | 299,109 | 310,749 | 299,011 | 290,453 | ||||||||||||
3.850% Senior Notes due 2023 | 299,980 | 311,656 | $ | 299,976 | $ | 289,362 | ||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property and equipment, including original useful lives | ||||||||||
Original Useful Lives | December 31, 2014 | December 31, 2013 | ||||||||
Land | $ | 527,471 | $ | 457,858 | ||||||
Buildings and building improvements | 15 – 39 years | 1,418,479 | 1,197,369 | |||||||
Leasehold improvements | 3 – 25 years | 523,550 | 483,578 | |||||||
Furniture, fixtures and equipment | 3 – 20 years | 1,052,846 | 960,928 | |||||||
Vehicles | 5 – 10 years | 279,874 | 251,505 | |||||||
Construction in progress | 191,289 | 255,599 | ||||||||
Total property and equipment | 3,993,509 | 3,606,837 | ||||||||
Less: accumulated depreciation and amortization | 1,334,949 | 1,181,734 | ||||||||
Net property and equipment | $ | 2,658,560 | $ | 2,425,103 | ||||||
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Change in goodwill | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 758,410 | ||||||||||||||||||||||
Activity | (2,185 | ) | ||||||||||||||||||||||
Balance at December 31, 2013 | 756,225 | |||||||||||||||||||||||
Activity | 159 | |||||||||||||||||||||||
Balance at December 31, 2014 | $ | 756,384 | ||||||||||||||||||||||
Amortizable intangibles | ||||||||||||||||||||||||
Cost of Amortizable | Accumulated Amortization | Net Amortizable Intangibles | ||||||||||||||||||||||
Intangibles | (Expense) Benefit | |||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||||||||||
Favorable leases | $ | 49,780 | $ | 50,910 | $ | (35,145 | ) | $ | (32,463 | ) | $ | 14,635 | $ | 18,447 | ||||||||||
Non-compete agreements | 617 | 647 | (344 | ) | (428 | ) | 273 | 219 | ||||||||||||||||
Total amortizable intangible assets | $ | 50,397 | $ | 51,557 | $ | (35,489 | ) | $ | (32,891 | ) | $ | 14,908 | $ | 18,666 | ||||||||||
Unfavorable leases | $ | 49,200 | $ | 49,380 | $ | 40,263 | $ | 36,758 | $ | 8,937 | $ | 12,622 | ||||||||||||
Estimated net amortization of intangibles | ||||||||||||||||||||||||
Amortization Expense | Amortization Benefit | Total Amortization (Expense) Benefit | ||||||||||||||||||||||
2015 | $ | (2,656 | ) | $ | 2,772 | $ | 116 | |||||||||||||||||
2016 | (2,301 | ) | 2,055 | (246 | ) | |||||||||||||||||||
2017 | (1,885 | ) | 1,493 | (392 | ) | |||||||||||||||||||
2018 | (1,422 | ) | 923 | (499 | ) | |||||||||||||||||||
2019 | (1,200 | ) | 712 | (488 | ) | |||||||||||||||||||
Total | $ | (9,464 | ) | $ | 7,955 | $ | (1,509 | ) | ||||||||||||||||
Financing_Tables
Financing (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Outstanding financing facilities | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Revolving Credit Facility | $ | — | $ | — | ||||
4.875% Senior Notes due 2021 (1), effective interest rate of 4.966% | 497,876 | 497,525 | ||||||
4.625% Senior Notes due 2021 (2), effective interest rate of 4.648% | 299,650 | 299,598 | ||||||
3.800% Senior Notes due 2022 (3), effective interest rate of 3.845% | 299,109 | 299,011 | ||||||
3.850% Senior Notes due 2023 (4), effective interest rate of 3.851% | $ | 299,980 | $ | 299,976 | ||||
(1) | Net of unamortized discount of $2.1 million and $2.5 million as of December 31, 2014 and 2013, respectively. | |||||||
(2) | Net of unamortized discount of $0.4 million as of December 31, 2014 and 2013. | |||||||
(3) | Net of unamortized discount of $0.9 million and $1.0 million as of December 31, 2014 and 2013, respectively. | |||||||
(4) | Net of unamortized discount of less than $0.1 million as of December 31, 2014 and 2013. |
Leasing_Tables
Leasing (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Leases [Abstract] | ||||||||||||||||
Future minimum lease payments for operating leases and capital leases | ||||||||||||||||
Operating Leases | Capital Leases | |||||||||||||||
Related Parties | Non-Related Parties | Non-Related Parties | Total | |||||||||||||
2015 | $ | 4,621 | $ | 247,477 | $ | 25 | $ | 252,123 | ||||||||
2016 | 4,659 | 234,267 | — | 238,926 | ||||||||||||
2017 | 4,526 | 216,739 | — | 221,265 | ||||||||||||
2018 | 4,318 | 191,781 | — | 196,099 | ||||||||||||
2019 | 2,756 | 169,271 | — | 172,027 | ||||||||||||
Thereafter | 8,917 | 932,179 | — | 941,096 | ||||||||||||
Total | $ | 29,797 | $ | 1,991,714 | $ | 25 | $ | 2,021,536 | ||||||||
Schedule of net rent expense | ||||||||||||||||
For the Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Minimum operating lease expense | $ | 254,565 | $ | 247,039 | $ | 234,113 | ||||||||||
Contingent rents | 759 | 701 | 744 | |||||||||||||
Other lease related occupancy costs | 11,688 | 11,257 | 10,043 | |||||||||||||
Total rent expense | 267,012 | 258,997 | 244,900 | |||||||||||||
Less: sublease income | 3,984 | 4,105 | 4,031 | |||||||||||||
Net rent expense | $ | 263,028 | $ | 254,892 | $ | 240,869 | ||||||||||
Warranties_Tables
Warranties (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Product Warranties Disclosures [Abstract] | ||||||||
Product warranty liabilities | ||||||||
2014 | 2013 | |||||||
Balance at January 1, | $ | 33,386 | $ | 28,001 | ||||
Warranty claims | (52,297 | ) | (50,859 | ) | ||||
Warranty accruals | 53,137 | 56,244 | ||||||
Balance at December 31, | $ | 34,226 | $ | 33,386 | ||||
Share_Repurchase_Program_Table
Share Repurchase Program (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Proceeds from (Repurchase of) Equity [Abstract] | ||||||||
Schedule of shares repurchased | ||||||||
For the Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Shares repurchased | 5,743 | 8,529 | ||||||
Average price per share | $ | 150.86 | $ | 109.38 | ||||
Total investment | $ | 866,398 | $ | 932,900 | ||||
ShareBased_Compensation_and_Be1
Share-Based Compensation and Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of shares authorized and available for future issuance under compensation and benefit plans | |||||||||||||
Plans | Total Shares Authorized for Issuance under the Plans | Shares Available for Future | |||||||||||
Issuance under the Plans | |||||||||||||
Employee Incentive Plans | 34,000 | 6,552 | |||||||||||
Director Stock Plan | 1,000 | 263 | |||||||||||
Performance Incentive Plan | 650 | 373 | |||||||||||
Employee Stock Purchase Plans | 4,250 | 824 | |||||||||||
Profit Sharing and Savings Plan | 4,200 | 349 | |||||||||||
Restricted Stock [Member] | |||||||||||||
Summary of activity of share-based employee compensation plans and other compensation and benefit plans | |||||||||||||
For the Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Compensation expense for restricted shares awarded (in millions) | $ | 2.6 | $ | 2.2 | $ | 2 | |||||||
Income tax benefit from compensation expense related to restricted shares (in millions) | $ | 1 | $ | 0.8 | $ | 0.8 | |||||||
Total fair value of restricted shares at vest date (in millions) | $ | 3.7 | $ | 3.3 | $ | 2.7 | |||||||
Shares awarded under the plans (in thousands) | 16.4 | 21.2 | 23.7 | ||||||||||
Average grant-date fair value of shares awarded under the plans | $ | 147.23 | $ | 102.63 | $ | 90.1 | |||||||
Director [Member] | |||||||||||||
Summary of stock options | |||||||||||||
Shares | Weighted-Average Exercise Price | Average Remaining Contractual Terms | Aggregate | ||||||||||
(in thousands) | (in years) | Intrinsic Value | |||||||||||
(in thousands) | |||||||||||||
Outstanding at December 31, 2013 | 50 | $ | 37.37 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (10 | ) | 30.08 | ||||||||||
Forfeited | — | — | |||||||||||
Outstanding at December 31, 2014 | 40 | $ | 39.19 | 1.6 | $ | 6,137 | |||||||
Vested or expected to vest at December 31, 2014 | 40 | $ | 39.19 | 1.6 | $ | 6,137 | |||||||
Exercisable at December 31, 2014 | 40 | $ | 39.19 | 1.6 | $ | 6,137 | |||||||
Director [Member] | Restricted Stock [Member] | |||||||||||||
Summary of restricted stock | |||||||||||||
Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||
(in thousands) | |||||||||||||
Non-vested at December 31, 2013 | 11 | $ | 94.18 | ||||||||||
Granted during the period | 3 | 146.05 | |||||||||||
Vested during the period | (6 | ) | 84.12 | ||||||||||
Forfeited during the period | — | — | |||||||||||
Non-vested at December 31, 2014 | 8 | $ | 124.44 | ||||||||||
Employee Stock [Member] | |||||||||||||
Summary of stock options | |||||||||||||
Shares | Weighted-Average Exercise Price | Average Remaining Contractual Terms | Aggregate | ||||||||||
(in thousands) | (in years) | Intrinsic Value | |||||||||||
(in thousands) | |||||||||||||
Outstanding at December 31, 2013 | 5,177 | $ | 54.28 | ||||||||||
Granted | 392 | 150.82 | |||||||||||
Exercised | (1,310 | ) | 45.26 | ||||||||||
Forfeited | (234 | ) | 85.25 | ||||||||||
Outstanding at December 31, 2014 | 4,025 | $ | 64.82 | 5.8 | $ | 514,443 | |||||||
Vested or expected to vest at December 31, 2014 | 3,879 | $ | 63.61 | 5.7 | $ | 500,413 | |||||||
Exercisable at December 31, 2014 | 2,617 | $ | 43.6 | 4.6 | $ | 389,953 | |||||||
Employee Stock [Member] | Restricted Stock [Member] | |||||||||||||
Summary of restricted stock | |||||||||||||
Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||
(in thousands) | |||||||||||||
Non-vested at December 31, 2013 | 20 | $ | 92.02 | ||||||||||
Granted during the period | 13 | 147.58 | |||||||||||
Vested during the period (1) | (16 | ) | 103.09 | ||||||||||
Forfeited during the period | (1 | ) | 121.85 | ||||||||||
Non-vested at December 31, 2014 | 16 | $ | 123.68 | ||||||||||
(1) | Includes 7 thousand shares withheld to cover employees' taxes upon vesting. | ||||||||||||
Stock Option [Member] | |||||||||||||
Black-Scholes option pricing model | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk free interest rate | 1.6 | % | 0.96 | % | 0.59 | % | |||||||
Expected life | 5.3 | Years | 5 | Years | 3.9 | Years | |||||||
Expected volatility | 24.3 | % | 31 | % | 33.5 | % | |||||||
Expected dividend yield | — | % | — | % | — | % | |||||||
Summary of activity of share-based employee compensation plans and other compensation and benefit plans | |||||||||||||
For the Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Compensation expense for stock options awarded (in millions) | $ | 18.7 | $ | 17.8 | $ | 18.5 | |||||||
Income tax benefit from compensation expense related to stock options (in millions) | 6.9 | 6.8 | 7.1 | ||||||||||
Total intrinsic value of stock options exercised (in millions) | 147.2 | 95.8 | 113.6 | ||||||||||
Cash received from exercise of stock options (in millions) | 59.6 | 59.7 | 54.9 | ||||||||||
Weighted-average grant-date fair value of options awarded | $ | 38.18 | $ | 29.98 | $ | 23.57 | |||||||
Weighted-average remaining contractual life of exercisable options (in years) | 4.56 | 4.77 | 5.13 | ||||||||||
Employee Stock Purchase Plan [Member] | |||||||||||||
Summary of activity of share-based employee compensation plans and other compensation and benefit plans | |||||||||||||
For the Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Compensation expense for shares issued under the ESPP (in millions) | $ | 1.8 | $ | 1.7 | $ | 1.5 | |||||||
Income tax benefit from compensation expense for shares issued under the ESPP (in millions) | $ | 0.7 | $ | 0.6 | $ | 0.6 | |||||||
Shares issued under the ESPP (in thousands) | 77 | 100.6 | 114.6 | ||||||||||
Weighted-average price of shares issued under the ESPP | $ | 130.12 | $ | 95.51 | $ | 75.42 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deferred Income Taxes and Tax Credits [Abstract] | ||||||||||||
Schedule of deferred tax assets and liabilities | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Current: | ||||||||||||
Allowance for doubtful accounts | $ | 2,357 | $ | 1,997 | ||||||||
Tax credits | 3,250 | 1,636 | ||||||||||
Other accruals | 67,468 | 61,100 | ||||||||||
Total current deferred tax assets | 73,075 | 64,733 | ||||||||||
Noncurrent: | ||||||||||||
Tax credits | 11,475 | 5,333 | ||||||||||
Net operating losses | 746 | 1,180 | ||||||||||
Other accruals | 63,968 | 59,176 | ||||||||||
Other | 16,468 | 16,181 | ||||||||||
Total noncurrent deferred tax assets | 92,657 | 81,870 | ||||||||||
Total deferred tax assets | 165,732 | 146,603 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Current: | ||||||||||||
Inventories | 90,333 | 84,955 | ||||||||||
Total current deferred tax liabilities | 90,333 | 84,955 | ||||||||||
Noncurrent: | ||||||||||||
Property and equipment | 139,604 | 131,851 | ||||||||||
Other | 38,217 | 30,732 | ||||||||||
Total noncurrent deferred tax liabilities | 177,821 | 162,583 | ||||||||||
Total deferred tax liabilities | 268,154 | 247,538 | ||||||||||
Net deferred tax liabilities | $ | (102,422 | ) | $ | (100,935 | ) | ||||||
Reconciliation of net deferred tax assets (liabilities) | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets - current | $ | 73,075 | $ | 64,733 | ||||||||
Deferred tax liabilities - current | (90,333 | ) | (84,955 | ) | ||||||||
Deferred tax liabilities - current | (17,258 | ) | (20,222 | ) | ||||||||
Deferred tax assets - noncurrent | 92,657 | 81,870 | ||||||||||
Deferred tax liabilities - noncurrent | (177,821 | ) | (162,583 | ) | ||||||||
Deferred tax liabilities - noncurrent | (85,164 | ) | (80,713 | ) | ||||||||
Net deferred tax liabilities | $ | (102,422 | ) | $ | (100,935 | ) | ||||||
Schedule of components of the provision for income taxes | ||||||||||||
Current | Deferred | Total | ||||||||||
2014 | ||||||||||||
Federal | $ | 399,271 | $ | 5,987 | $ | 405,258 | ||||||
State | 43,242 | (4,500 | ) | 38,742 | ||||||||
$ | 442,513 | $ | 1,487 | $ | 444,000 | |||||||
2013 | ||||||||||||
Federal | $ | 348,303 | $ | 847 | $ | 349,150 | ||||||
State | 38,428 | 1,072 | 39,500 | |||||||||
$ | 386,731 | $ | 1,919 | $ | 388,650 | |||||||
2012 | ||||||||||||
Federal | $ | 311,631 | $ | 10,030 | $ | 321,661 | ||||||
State | 35,982 | (1,868 | ) | 34,114 | ||||||||
$ | 347,613 | $ | 8,162 | $ | 355,775 | |||||||
Reconciliation of the provision for income taxes to the amounts computed at the federal statutory rate | ||||||||||||
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal income taxes at statutory rate | $ | 427,764 | $ | 370,632 | $ | 329,532 | ||||||
State income taxes, net of federal tax benefit | 25,320 | 26,802 | 22,426 | |||||||||
Other items, net | (9,084 | ) | (8,784 | ) | 3,817 | |||||||
Total provision for income taxes | $ | 444,000 | $ | 388,650 | $ | 355,775 | ||||||
Summary of changes in gross amount of unrecognized tax benefits, excluding interest and penalties | ||||||||||||
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance as of January 1, | $ | 50,459 | $ | 51,004 | $ | 45,800 | ||||||
Additions based on tax positions related to the current year | 4,665 | 7,046 | 8,100 | |||||||||
Additions based on tax positions related to prior years | — | — | 1,301 | |||||||||
Payments related to items settled with taxing authorities | (300 | ) | (1,056 | ) | (451 | ) | ||||||
Reductions due to the lapse of statute of limitations and settlements | (5,226 | ) | (6,535 | ) | (3,746 | ) | ||||||
Balance as of December 31, | $ | 49,598 | $ | 50,459 | $ | 51,004 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Computation of basic and diluted earnings per share | ||||||||||||
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator (basic and diluted): | ||||||||||||
Net income | $ | 778,182 | $ | 670,292 | $ | 585,746 | ||||||
Denominator: | ||||||||||||
Denominator for basic earnings per share - weighted-average shares | 104,262 | 109,244 | 121,182 | |||||||||
Effect of stock options (1) | 1,779 | 1,857 | 2,132 | |||||||||
Denominator for diluted earnings per share - weighted-average shares | 106,041 | 111,101 | 123,314 | |||||||||
Earnings per share: | ||||||||||||
Earnings per share-basic | $ | 7.46 | $ | 6.14 | $ | 4.83 | ||||||
Earnings per share-assuming dilution | $ | 7.34 | $ | 6.03 | $ | 4.75 | ||||||
Antidilutive potential common shares not included in the calculation of diluted earnings per share: | ||||||||||||
Stock options (1) | 363 | 498 | 1,816 | |||||||||
Weighted-average exercise price per share of antidilutive stock options (1) | $ | 151.65 | $ | 103.8 | $ | 87.88 | ||||||
(1) | See Note 9 for further discussion on the terms of the Company's share-based compensation plans. |
Quarterly_Results_Unaudited_Ta
Quarterly Results (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Quarterly unaudited operating data | ||||||||||||||||
Fiscal 2014 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Sales | $ | 1,727,943 | $ | 1,847,088 | $ | 1,876,872 | $ | 1,764,178 | ||||||||
Gross profit | 877,716 | 950,877 | 968,201 | 912,107 | ||||||||||||
Operating income | 287,120 | 336,474 | 343,768 | 303,012 | ||||||||||||
Net income | 173,860 | 205,647 | 216,997 | 181,678 | ||||||||||||
Earnings per share – basic (1) | $ | 1.64 | $ | 1.94 | $ | 2.1 | $ | 1.79 | ||||||||
Earnings per share – assuming dilution (1) | $ | 1.61 | $ | 1.91 | $ | 2.06 | $ | 1.76 | ||||||||
Fiscal 2013 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Sales | $ | 1,585,009 | $ | 1,714,969 | $ | 1,728,025 | $ | 1,621,234 | ||||||||
Gross profit | 798,663 | 871,875 | 879,163 | 819,300 | ||||||||||||
Operating income | 251,084 | 296,261 | 300,380 | 255,760 | ||||||||||||
Net income | 154,329 | 177,127 | 186,489 | 152,347 | ||||||||||||
Earnings per share – basic (1) | $ | 1.38 | $ | 1.61 | $ | 1.72 | $ | 1.43 | ||||||||
Earnings per share – assuming dilution (1) | $ | 1.36 | $ | 1.58 | $ | 1.69 | $ | 1.4 | ||||||||
(1) | Earnings per share amounts are computed independently for each quarter and annual period. The quarterly earnings per share amounts may not sum to equal the full-year earnings per share. |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||
Valuation and qualifying accounts table | ||||||||||||||||||||||
Description | Balance at | Additions - Charged to | Additions - Charged to | Deductions - | Balance at | |||||||||||||||||
Beginning of Period | Costs and Expenses | Other Accounts - Describe | Describe | End of Period | ||||||||||||||||||
Sales and returns allowances: | ||||||||||||||||||||||
For the year ended December 31, 2014 | $ | 6,500 | $ | 355 | $ | — | $ | — | $ | 6,855 | ||||||||||||
For the year ended December 31, 2013 | 7,326 | (826 | ) | — | — | 6,500 | ||||||||||||||||
For the year ended December 31, 2012 | 6,406 | 920 | — | — | 7,326 | |||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||||
For the year ended December 31, 2014 | $ | 6,661 | $ | 8,919 | $ | — | $ | 6,867 | (1) | $ | 8,713 | |||||||||||
For the year ended December 31, 2013 | 6,447 | 8,499 | — | 8,285 | (1) | 6,661 | ||||||||||||||||
For the year ended December 31, 2012 | 6,403 | 8,043 | — | 7,999 | (1) | 6,447 | ||||||||||||||||
(1) | Uncollectable accounts written off. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Rate | |||
states | |||
stores | |||
Policy Text Block [Abstract] | |||
Number of stores | 4,366 | ||
Number of states in which entity operates | 43 | ||
Accounts receivable due from employees to the Company | $1,000,000 | $1,000,000 | |
Allowance for doubtful supplier receivables | 0 | 0 | |
Replacement cost of inventory | 2,560,000,000 | 2,380,000,000 | |
LIFO inventory value in excess of replacement cost of inventory | 61,400,000 | 21,600,000 | |
Notes receivable from suppliers and other third parties | 17,500,000 | 17,200,000 | |
Reserve for uncollectable notes receivables | 0 | 0 | |
Note receivable interest rate | 0.00% | ||
Goodwill impairment | 0 | 0 | |
Impairment of long-lived assets | 0 | 0 | |
Self-insurance reserves, current | 64,882,000 | 57,700,000 | |
Advertising expense, net | 79,000,000 | 78,300,000 | 74,800,000 |
Total interest costs capitalized | 11,500,000 | 10,600,000 | 6,100,000 |
Deferred debt issuance costs, net of amortization | 9,900,000 | 11,500,000 | |
Deferred debt issuance costs, net of amortization, included in "Other current assets" | 1,600,000 | 1,600,000 | |
Original issuance discounts, net of accretion | 3,400,000 | 3,900,000 | |
Valuation allowance for deferred tax assets | $0 | $0 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Components of Self-Insurance Reserves) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Policy Text Block [Abstract] | ||
Self-insurance reserves (undiscounted) | $132,879 | $126,715 |
Self-insurance reserves (discounted) | $123,276 | $116,062 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Dec. 31, 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 Measurements (Fair Value of Marketable Securities) (Details) (USD $) | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of marketable securities | $15,378,000 |
Fair value, inputs, Level 1 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of marketable securities | 15,378,000 |
Fair value, inputs, Level 2 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of marketable securities | 0 |
Fair value, inputs, Level 3 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of marketable securities | $0 |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements (Fair Value of Senior Notes) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Senior Notes due 2021 at 4.875% [Member] | ||
Carrying amount of senior notes | $497,876 | $497,525 |
Estimated fair value of senior notes | 566,700 | 524,434 |
Senior Notes due 2021 at 4.625% [Member] | ||
Carrying amount of senior notes | 299,650 | 299,598 |
Estimated fair value of senior notes | 337,222 | 310,141 |
Senior Notes due 2022 at 3.800% [Member] | ||
Carrying amount of senior notes | 299,109 | 299,011 |
Estimated fair value of senior notes | 310,749 | 290,453 |
Senior Notes due 2023 at 3.850% [Member] | ||
Carrying amount of senior notes | 299,980 | 299,976 |
Estimated fair value of senior notes | $311,656 | $289,362 |
Property_and_Equipment_Narrati
Property and Equipment (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property and Equipment | |||
Depreciation and amortization expense | $194,205,000 | $183,180,000 | $177,106,000 |
Vehicles [Member] | |||
Property and Equipment | |||
Gross value of capital lease assets | 7,000,000 | ||
Accumulated amortization on capital lease assets | 7,000,000 | ||
Property and equipment [Member] | |||
Property and Equipment | |||
Depreciation and amortization expense | $193,400,000 | $183,200,000 | $176,700,000 |
Property_and_Equipment_Propert
Property and Equipment (Property and Equipment, Including Original Useful Lives) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property and Equipment | ||
Property and equipment | 3,993,509 | $3,606,837 |
Less: accumulated depreciation and amortization | 1,334,949 | 1,181,734 |
Net property and equipment | 2,658,560 | 2,425,103 |
Land [Member] | ||
Property and Equipment | ||
Property and equipment | 527,471 | 457,858 |
Buildings and building improvements [Member] | ||
Property and Equipment | ||
Property and equipment | 1,418,479 | 1,197,369 |
Buildings and building improvements [Member] | Minimum [Member] | ||
Property and Equipment | ||
Property, plant and equipment, useful lives, in years | 15 years | |
Buildings and building improvements [Member] | Maximum [Member] | ||
Property and Equipment | ||
Property, plant and equipment, useful lives, in years | 39 years | |
Leasehold improvements [Member] | ||
Property and Equipment | ||
Property and equipment | 523,550 | 483,578 |
Leasehold improvements [Member] | Minimum [Member] | ||
Property and Equipment | ||
Property, plant and equipment, useful lives, in years | 3 years | |
Leasehold improvements [Member] | Maximum [Member] | ||
Property and Equipment | ||
Property, plant and equipment, useful lives, in years | 25 years | |
Furniture, fixtures and equipment [Member] | ||
Property and Equipment | ||
Property and equipment | 1,052,846 | 960,928 |
Furniture, fixtures and equipment [Member] | Minimum [Member] | ||
Property and Equipment | ||
Property, plant and equipment, useful lives, in years | 3 years | |
Furniture, fixtures and equipment [Member] | Maximum [Member] | ||
Property and Equipment | ||
Property, plant and equipment, useful lives, in years | 20 years | |
Vehicles [Member] | ||
Property and Equipment | ||
Property and equipment | 279,874 | 251,505 |
Vehicles [Member] | Minimum [Member] | ||
Property and Equipment | ||
Property, plant and equipment, useful lives, in years | 5 years | |
Vehicles [Member] | Maximum [Member] | ||
Property and Equipment | ||
Property, plant and equipment, useful lives, in years | 10 years | |
Construction in progress [Member] | ||
Property and Equipment | ||
Property and equipment | 191,289 | $255,599 |
Goodwill_and_Other_Intangibles2
Goodwill and Other Intangibles (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Increase (decrease) in goodwill | $159,000 | ($2,185,000) | |
Goodwill impairment | 0 | 0 | |
Indefinite-lived intangible assets, other than goodwill | 0 | 0 | |
Amortization expense of amortizable intangible assets | 3,900,000 | 4,000,000 | 4,700,000 |
Favorable leases [Member] | |||
Weighted-average remaining useful life of favorable leases, in years | 9 years 4 months 8 days | ||
Unfavorable leases [Member] | |||
Weighted-average remaining useful life of unfavorable leases, in years | 4 years 6 months 11 days | ||
Amortization benefit of unfavorable operating leases | $3,700,000 | $4,500,000 | $5,700,000 |
Goodwill_and_Other_Intangibles3
Goodwill and Other Intangibles (Changes in Net Goodwill) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $756,225 | $758,410 |
Activity | 159 | -2,185 |
Ending balance | $756,384 | $756,225 |
Goodwill_and_Other_Intangibles4
Goodwill and Other Intangibles (Amortizable Intangibles) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortizable intangible assets, cost | $50,397 | $51,557 |
Amortizable intangible assets, accumulated amortization expense | -35,489 | -32,891 |
Net amortizable intangible assets | 14,908 | 18,666 |
Favorable leases [Member] | ||
Amortizable intangible assets, cost | 49,780 | 50,910 |
Amortizable intangible assets, accumulated amortization expense | -35,145 | -32,463 |
Net amortizable intangible assets | 14,635 | 18,447 |
Noncompete Agreements [Member] | ||
Amortizable intangible assets, cost | 617 | 647 |
Amortizable intangible assets, accumulated amortization expense | -344 | -428 |
Net amortizable intangible assets | 273 | 219 |
Unfavorable leases [Member] | ||
Amortizable intangibles, cost | 49,200 | 49,380 |
Amortizable intangibles, accumulated amortization benefit | 40,263 | 36,758 |
Net amortizable intangibles | $8,937 | $12,622 |
Goodwill_and_Other_Intangibles5
Goodwill and Other Intangibles (Estimated Amortization of Intangibles) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 amortization expense | ($2,656) |
2016 amortization expense | -2,301 |
2017 amortization expense | -1,885 |
2018 amortization expense | -1,422 |
2019 amortization expense | -1,200 |
Total amortization expense | -9,464 |
2015 amortization benefit | 2,772 |
2016 amortization benefit | 2,055 |
2017 amortization benefit | 1,493 |
2018 amortization benefit | 923 |
2019 amortization benefit | 712 |
Total amortization benefit | 7,955 |
2015 amortization, net | 116 |
2016 amortization, net | -246 |
2017 amortization, net | -392 |
2018 amortization, net | -499 |
2019 amortization, net | -488 |
Total amortization, net | ($1,509) |
Financing_Financing_Principal_
Financing Financing (Principal Maturities of Financing Facilities) (Narrative) (Details) (USD $) | Dec. 31, 2014 |
In Billions, unless otherwise specified | |
Maturities of Long-term Debt [Abstract] | |
Principal maturities of financing facilities scheduled within 2015 | $0 |
Principal maturities of financing facilities scheduled within 2016 | 0 |
Principal maturities of financing facilities scheduled within 2017 | 0 |
Principal maturities of financing facilities scheduled within 2018 | 0 |
Principal maturities of financing facilities scheduled within 2019 | 0 |
Principal maturities of financing facilities scheduled thereafter | $1.40 |
Financing_Unsecured_Revolving_
Financing (Unsecured Revolving Credit Facility) (Narrative) (Details) (Unsecured debt [Member], Line of credit facility [Member], USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Jan. 26, 2015 | Dec. 31, 2013 | |
Rate | Rate | ||
Credit agreement inception date | 14-Jan-11 | ||
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 | 47,900,000 | 51,700,000 | |
Outstanding borrowings under credit facility | 0 | 0 | |
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 from March 31, 2013, 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 non-cash share-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 commitments, 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 fee percentage | 0.15% | ||
Line of credit facility covenant compliance | As of December 31, 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 | ||
Spread over Eurodollar rate [Member] | |||
Line of credit current interest rate | 0.98% | ||
Spread over 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 | 2.5 | ||
Maximum debt instrument consolidated leverage ratio covenant | 3 | ||
Subsequent Event [Member] | |||
Line of credit facility fee percentage | 0.13% | ||
Subsequent Event [Member] | Spread over Eurodollar rate [Member] | |||
Line of credit current interest rate | 0.88% | ||
Subsequent Event [Member] | Spread over Base rate [Member] | |||
Line of credit current interest rate | 0.00% |
Financing_Senior_Notes_Narrati
Financing (Senior Notes) (Narrative) (Details) (USD $) | 12 Months Ended |
In Billions, unless otherwise specified | Dec. 31, 2014 |
D | |
Rate | |
Debt Disclosure [Abstract] | |
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 December 31, 2014. |
Financing_Outstanding_Financin
Financing (Outstanding Financing Facilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Revolving Credit Facility | $0 | $0 |
Senior notes, unamortized discount | 3,400,000 | 3,900,000 |
Senior Notes due 2021 at 4.875% [Member] | ||
Senior notes | 497,876,000 | 497,525,000 |
Senior notes, unamortized discount | 2,100,000 | 2,500,000 |
Effective interest rate | 4.97% | |
Senior Notes due 2021 at 4.625% [Member] | ||
Senior notes | 299,650,000 | 299,598,000 |
Senior notes, unamortized discount | 400,000 | 400,000 |
Effective interest rate | 4.65% | |
Senior Notes due 2022 at 3.800% [Member] | ||
Senior notes | 299,109,000 | 299,011,000 |
Senior notes, unamortized discount | 900,000 | 1,000,000 |
Effective interest rate | 3.85% | |
Senior Notes due 2023 at 3.850% [Member] | ||
Senior notes | 299,980,000 | 299,976,000 |
Senior notes, unamortized discount | $100,000 | $100,000 |
Effective interest rate | 3.85% |
Leasing_Narrative_Details
Leasing (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating lease [Member] | ||
Description of lessee leasing arrangements | The Company leases certain office space, retail stores, property and equipment under long-term, non-cancelable operating leases. Most of these leases include renewal options and some include options to purchase, provisions for percentage rent based on sales and/or incremental step increase provisions. | |
Future minimum sublease income under non-cancelable subleases | $15.30 | |
Capital lease [Member] | Buildings [Member] | ||
Description of lessee leasing arrangements | The Company assumed certain building capital leases in the acquisition of CSK. The only remaining building capital lease agreement will expire on AprilB 30, 2015. | |
Present value of future minimum capital lease payments, classified as long-term debt | 0.1 | 0.1 |
Additional acquired capital leases | $0 | $0 |
Leasing_Future_Minimum_Lease_P
Leasing (Future Minimum Lease Payments for Operating and Capital Leases) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Related parties [Member] | Operating lease expense [Member] | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2015 | $4,621 |
2016 | 4,659 |
2017 | 4,526 |
2018 | 4,318 |
2019 | 2,756 |
Thereafter | 8,917 |
Total | 29,797 |
Non-related parties [Member] | Capital lease expense [Member] | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2015 | 25 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
Thereafter | 0 |
Total | 25 |
Non-related parties [Member] | Operating lease expense [Member] | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2015 | 247,477 |
2016 | 234,267 |
2017 | 216,739 |
2018 | 191,781 |
2019 | 169,271 |
Thereafter | 932,179 |
Total | 1,991,714 |
Lease Agreements [Member] | |
2015 | 252,123 |
2016 | 238,926 |
2017 | 221,265 |
2018 | 196,099 |
2019 | 172,027 |
Thereafter | 941,096 |
Total | $2,021,536 |
Leasing_Net_Rent_Expense_Detai
Leasing (Net Rent Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Leases, Rent Expense, Net [Abstract] | |||
Minimum operating lease expense | $254,565 | $247,039 | $234,113 |
Contingent rents | 759 | 701 | 744 |
Other lease related occupancy costs | 11,688 | 11,257 | 10,043 |
Total rent expense | 267,012 | 258,997 | 244,900 |
Less: sublease income | 3,984 | 4,105 | 4,031 |
Net rent expense | $263,028 | $254,892 | $240,869 |
Warranties_Product_Warranty_Li
Warranties (Product Warranty Liabilities) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Product Warranties Disclosures [Abstract] | ||
Balance at January 1, | $33,386 | $28,001 |
Warranty claims | -52,297 | -50,859 |
Warranty accruals | 53,137 | 56,244 |
Balance at December 31, | $34,226 | $33,386 |
Share_Repurchase_Program_Narra
Share Repurchase Program (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 2 Months Ended | 50 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Aug. 13, 2014 | Feb. 05, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 04, 2015 | Feb. 27, 2015 | Feb. 27, 2015 |
Proceeds from (Repurchase of) Equity | |||||||
Increase in authorized amount | $500,000,000 | $500,000,000 | |||||
Authorization effective period | 3 years | 3 years | |||||
Common stock repurchased, shares | 5,743 | 8,529 | |||||
Common stock repurchased, average price per share | $150.86 | $109.38 | |||||
Common stock repurchased, value | 866,398,000 | 932,900,000 | |||||
Remaining balance under share repurchase program | 279,300,000 | ||||||
Subsequent Event [Member] | |||||||
Proceeds from (Repurchase of) Equity | |||||||
Increase in authorized amount | 500,000,000 | ||||||
Cumulative authorized amount | 5,000,000,000 | ||||||
Authorization effective period | 3 years | ||||||
Common stock repurchased, shares | 100 | 46,500 | |||||
Common stock repurchased, average price per share | $197.48 | $91.38 | |||||
Common stock repurchased, value | 27,800,000 | 4,200,000,000 | |||||
Remaining balance under share repurchase program | $751,500,000 | $751,500,000 |
Share_Repurchase_Program_Sched
Share Repurchase Program (Schedule Of Shares Repurchased) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Proceeds from (Repurchase of) Equity [Abstract] | ||
Shares repurchased | 5,743 | 8,529 |
Average price per share | $150.86 | $109.38 |
Total investment | $866,398 | $932,900 |
ShareBased_Compensation_and_Be2
Share-Based Compensation and Benefit Plans (Stock Option) (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Rate | |
Employee Stock Option [Member] | |
Vesting of options, description | The Company's employee incentive plans provide for the granting of stock options for the purchase of common stock of the Company to certain key employees of the Company. Employee stock 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. |
Options expiration date, years | 10 years |
Options vesting period | 4 years |
Option vesting rate per year | 25.00% |
Stock Option [Member] | |
Remaining unrecognized compensation expense | 28.3 |
Weighted-average period for cost recognition, years | 2 years 4 months 10 days |
Stock Option [Member] | Director [Member] | |
Vesting of options, description | The Company's director stock plan provides for the granting of stock options for the purchase of common stock of the Company to directors of the Company. Director stock 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. |
Options expiration date, years | 7 years |
Options vesting period | 6 months |
ShareBased_Compensation_and_Be3
Share-Based Compensation and Benefit Plans (Restricted Stock) (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 |
Employee Stock [Member] | |
Restricted stock awards plan description | The Company's performance incentive plan 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. Generally, unvested shares are forfeited when an employee ceases employment. The fair value of shares awarded under this plan is based on the closing market price of the Company's common stock on the date of award and compensation expense is recorded over the minimum required service period. |
Director [Member] | |
Restricted stock awards plan description | The Company's director stock plan provides for the award of shares of restricted stock that vest evenly over a three-year period and are held in escrow until such vesting has occurred. Unvested shares are forfeited when a director ceases their service on the Company's Board of Directors for reasons other than death or retirement. The fair value of shares awarded under this plan 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. |
Restricted Stock [Member] | |
Remaining unrecognized compensation expense | 2 |
Weighted-average period for cost recognition, years | 2 years 1 month 2 days |
Shares withheld to cover employees' taxes upon vesting | 7 |
ShareBased_Compensation_and_Be4
Share-Based Compensation and Benefit Plans (Employee Stock Purchase Plan) (Narrative) (Details) (Employee Stock Purchase Plan [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Rate | |
Employee Stock Purchase Plan [Member] | |
Employee stock purchase plan stock purchase percentage | 85.00% |
Other employee benefit plan descriptions | The Company's employee stock purchase plan (the "ESPP") permits eligible employees to purchase shares of the Company's common stock at 85% of the fair market value. Employees may authorize the Company to withhold up to 5% of their annual salary to participate in the plan. |
ShareBased_Compensation_and_Be5
Share-Based Compensation and Benefit Plans (Profit Sharing and Savings Plan) (Narrative) (Detail) (Profit Sharing and Savings Plan [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Profit Sharing and Savings Plan [Member] | |||
Other employee benefit plan descriptions | The Company sponsors a contributory profit sharing and savings plan (the "401(k) Plan") that covers substantially all employees who are at least 21 years of age and have at least six months of service. The Company makes matching contributions equal to 100% of the first 2% of each employee's wages that are contributed and 25% of the next 4% of each employee's wages that are contributed. | ||
Profit sharing and savings plan cost recognized | $16.80 | $16.50 | $15.60 |
Profit sharing and savings plan employer discretionary contribution | $0 | $0 | $0 |
ShareBased_Compensation_and_Be6
Share-Based Compensation and Benefit Plans Share-Based Compensation and Benefit Plans (Nonqualified Deferred Compensation Plan) (Narrative) (Details) (Deferred Compensation Plan [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Compensation Plan [Member] | |||
Deferred compensation plan description | The Company sponsors a nonqualified deferred compensation plan (the "Deferred Compensation Plan") for highly compensated employees whose contributions to the 401(k) Plan are limited due to the application of the annual limitations under the Internal Revenue Code. The Deferred Compensation Plan provides these employees with the opportunity to defer the full 6% of compensation, including salary and incentive based compensation that would have been covered under the 401(k) Plan, which are then matched by the Company using the same formula as the 401(k) Plan. | ||
Deferred compensation plan obligation | $15.40 | ||
Deferred compensation plan cost recognized | $0.20 | $0.20 | $0.10 |
ShareBased_Compensation_and_Be7
Share-Based Compensation and Benefit Plans (Summary of Shares Authorized and Available for Future Issuance Under Benefit and Compensation Plans) (Details) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Profit Sharing and Savings Plan [Member] | |
Shares authorized for issuance under compensation and benefit plans | 4,200 |
Shares available for future issuance under compensation and benefit plans | 349 |
Restricted Stock [Member] | |
Shares authorized for issuance under compensation and benefit plans | 650 |
Shares available for future issuance under compensation and benefit plans | 373 |
Director [Member] | |
Shares authorized for issuance under compensation and benefit plans | 1,000 |
Shares available for future issuance under compensation and benefit plans | 263 |
Employee Stock Option [Member] | |
Shares authorized for issuance under compensation and benefit plans | 34,000 |
Shares available for future issuance under compensation and benefit plans | 6,552 |
Employee Stock Purchase Plan [Member] | |
Shares authorized for issuance under compensation and benefit plans | 4,250 |
Shares available for future issuance under compensation and benefit plans | 824 |
ShareBased_Compensation_and_Be8
Share-Based Compensation and Benefit Plans (Summary Of Stock Options) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Stock Option [Member] | |||
Outstanding at December 31, 2013 shares | 5,177 | ||
Outstanding at December 31, 2013 weighted-average exercise price | 54.28 | ||
Granted, shares | 392 | ||
Granted, weighted-average exercise price | 150.82 | ||
Exercised, shares | -1,310 | ||
Exercised, weighted-average exercise price | 45.26 | ||
Forfeited, shares | -234 | ||
Forfeited, weighted-average exercise price | 85.25 | ||
Outstanding at December 31, 2014 shares | 4,025 | ||
Outstanding at December 31, 2014 weighted-average exercise price | 64.82 | ||
Outstanding at December 31, 2014, average remaining contractual term | 5 years 9 months 10 days | ||
Outstanding at December 31, 2014, aggregate intrinsic value | 514,443 | ||
Vested or expected to vest at December 31, 2014, shares | 3,879 | ||
Vested or expected to vest at December 31, 2014, weighted-average exercise price | 63.61 | ||
Vested or expected to vest at December 31, 2014, average remaining contractual term | 5 years 8 months 13 days | ||
Vested or expected to vest at December 31, 2014, aggregate intrinsic value | 500,413 | ||
Exercisable at December 31, 2014, shares | 2,617 | ||
Exercisable at December 31, 2014, weighted-average exercise price | 43.6 | ||
Exercisable at December 31, 2014, average remaining contractual term | 4 years 7 months 7 days | ||
Exercisable at December 31, 2014, aggregate intrinsic value | 389,953 | ||
Stock Option [Member] | |||
Exercisable at December 31, 2014, average remaining contractual term | 4 years 6 months 21 days | 4 years 9 months 9 days | 5 years 1 month 16 days |
Director [Member] | |||
Outstanding at December 31, 2013 shares | 50 | ||
Outstanding at December 31, 2013 weighted-average exercise price | 37.37 | ||
Granted, shares | 0 | ||
Granted, weighted-average exercise price | 0 | ||
Exercised, shares | -10 | ||
Exercised, weighted-average exercise price | 30.08 | ||
Forfeited, shares | 0 | ||
Forfeited, weighted-average exercise price | 0 | ||
Outstanding at December 31, 2014 shares | 40 | ||
Outstanding at December 31, 2014 weighted-average exercise price | 39.19 | ||
Outstanding at December 31, 2014, average remaining contractual term | 1 year 7 months 20 days | ||
Outstanding at December 31, 2014, aggregate intrinsic value | 6,137 | ||
Vested or expected to vest at December 31, 2014, shares | 40 | ||
Vested or expected to vest at December 31, 2014, weighted-average exercise price | 39.19 | ||
Vested or expected to vest at December 31, 2014, average remaining contractual term | 1 year 7 months 20 days | ||
Vested or expected to vest at December 31, 2014, aggregate intrinsic value | 6,137 | ||
Exercisable at December 31, 2014, shares | 40 | ||
Exercisable at December 31, 2014, weighted-average exercise price | 39.19 | ||
Exercisable at December 31, 2014, average remaining contractual term | 1 year 7 months 20 days | ||
Exercisable at December 31, 2014, aggregate intrinsic value | 6,137 |
ShareBased_Compensation_and_Be9
Share-Based Compensation and Benefit Plans (Black-Scholes Option Pricing Model) (Details) (Stock Option [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Rate | Rate | Rate | |
Stock Option [Member] | |||
Risk-free interest rate | 1.60% | 0.96% | 0.59% |
Expected life | 5 years 3 months 29 days | 5 years 0 months 0 days | 3 years 10 months 24 days |
Expected volatility | 24.30% | 31.00% | 33.50% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Recovered_Sheet1
Share-Based Compensation and Benefit Plans (Stock Option Activity) (Details) (Stock Option [Member], USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Option [Member] | |||
Compensation expense for benefit plans | $18.70 | $17.80 | $18.50 |
Income tax benefit from compensation expense for benefit plans | 6.9 | 6.8 | 7.1 |
Total intrinsic value of options exercised | 147.2 | 95.8 | 113.6 |
Cash received from the exercise of stock options | $59.60 | $59.70 | $54.90 |
Weighted-average grant date fair value of options awarded | $38.18 | $29.98 | $23.57 |
Weighted-average remaining contractual life of options currently exercisable, years | 4 years 6 months 21 days | 4 years 9 months 9 days | 5 years 1 month 16 days |
Recovered_Sheet2
Share-Based Compensation and Benefit Plans (Summary of Restricted Stock) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock [Member] | ||||
Non-vested restricted stock at December 31, 2013 shares | 20 | |||
Non-vested restricted stock at December 31, 2013 weighted-average grant date fair value | $92.02 | |||
Restricted stock granted during the period, shares | 13 | |||
Restricted stock granted during period, weighted-average grant date fair value | $147.58 | |||
Restricted stock vested during the period, shares | -16 | [1] | ||
Restricted stock vested during the period, weighted-average grant date fair value | $103.09 | [1] | ||
Restricted stock forfeited during the period, shares | -1 | |||
Restricted stock forfeited during the period, weighted-average grant date fair value | $121.85 | |||
Non-vested restricted stock at December 31, 2014 shares | 16 | |||
Non-vested restricted stock at December 31, 2014 weighted-average grant date fair value | $123.68 | |||
Restricted Stock [Member] | ||||
Restricted stock granted during period, weighted-average grant date fair value | $147.23 | $102.63 | $90.10 | |
Restricted Stock [Member] | Director [Member] | ||||
Non-vested restricted stock at December 31, 2013 shares | 11 | |||
Non-vested restricted stock at December 31, 2013 weighted-average grant date fair value | $94.18 | |||
Restricted stock granted during the period, shares | 3 | |||
Restricted stock granted during period, weighted-average grant date fair value | $146.05 | |||
Restricted stock vested during the period, shares | -6 | |||
Restricted stock vested during the period, weighted-average grant date fair value | $84.12 | |||
Restricted stock forfeited during the period, shares | 0 | |||
Restricted stock forfeited during the period, weighted-average grant date fair value | $0 | |||
Non-vested restricted stock at December 31, 2014 shares | 8 | |||
Non-vested restricted stock at December 31, 2014 weighted-average grant date fair value | $124.44 | |||
[1] | Includes 7 thousand shares withheld to cover employees' taxes upon vesting. |
Recovered_Sheet3
Share-Based Compensation and Benefit Plans (Restricted Stock Activity) (Details) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock [Member] | |||
Compensation expense for benefit plans | $2.60 | $2.20 | $2 |
Income tax benefit from compensation expense for benefit plans | 1 | 0.8 | 0.8 |
Total fair value of shares vested (at vest date) | $3.70 | $3.30 | $2.70 |
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares | 16,400 | 21,200 | 23,700 |
Average grant-date fair value of shares issued during the period in compensation and benefit plans other than stock options | $147.23 | $102.63 | $90.10 |
Recovered_Sheet4
Share-Based Compensation and Benefit Plans (Employee Stock Purchase Plan Activity) (Details) (Employee Stock Purchase Plan [Member], USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Stock Purchase Plan [Member] | |||
Compensation expense for benefit plans | $1.80 | $1.70 | $1.50 |
Income tax benefit from compensation expense for benefit plans | $0.70 | $0.60 | $0.60 |
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares | 77,000 | 100,600 | 114,600 |
Average grant-date fair value of shares issued during the period in compensation and benefit plans other than stock options | $130.12 | $95.51 | $75.42 |
Commitments_Commitments_Narrat
Commitments (Commitments) (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Commitments | ||
Debt instrument minimum number of days callable | 30 | |
Debt instrument maximum number of days callable | 60 | |
Percentage principal amount of debt that can be redeemed by the Company | 100.00% | |
Percentage principal amount of debt redeemable upon change in control | 101.00% | |
Construction [Member] | ||
Commitments | ||
Construction commitments | $65.90 | |
Unsecured debt [Member] | Line of credit facility [Member] | ||
Commitments | ||
Letters of credit | $47.90 | $51.70 |
Legal_Matters_Narrative_Detail
Legal Matters (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Loss Contingency [Abstract] | |
Legacy CSK DOJ indemnity litigation reserve | $11.60 |
Related_Parties_Narrative_Deta
Related Parties (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
bulk_facilities | |||
stores | |||
Related Party Transaction | |||
Number of stores | 4,366 | ||
Related parties [Member] | |||
Related Party Transaction | |||
Number of stores | 77 | ||
Number of bulk facilities | 1 | ||
Lease payments under related party operating leases | $4.60 | $4.40 | $4.40 |
Income_Taxes_Provision_for_Inc
Income Taxes (Provision for Income Taxes) (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Minimum [Member] | |
State operating loss carryforwards, expiration year | 31-Dec-22 |
Maximum [Member] | |
State operating loss carryforwards, expiration year | 31-Dec-28 |
State and local jurisdiction [Member] | |
Tax credit carryforwards available for state tax purposes, net of federal impact | 14.7 |
Net operating loss carryforwards available for state purposes | 19.7 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits) (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ||||
Reserve for unrecognized tax benefits (including interest and penalties) | $58,400,000 | $58,600,000 | $59,300,000 | |
Amounts that would affect the effective tax rate if recognized | 58,400,000 | 58,600,000 | 59,300,000 | |
Federal tax effect for unrecognized tax benefits | 16,800,000 | |||
Accrual of interest and penalties related to uncertain tax positions | 8,800,000 | 8,100,000 | 8,300,000 | |
Tax expense related to an increase in liabilities for interest and penalties | 2,800,000 | 2,100,000 | 2,600,000 | |
Reduction due to lapse of statute of limitations and settlements (with 2015 estimate) | ($17,000,000) | ($5,226,000) | ($6,535,000) | ($3,746,000) |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current deferred tax assets: | ||
Allowance for doubtful accounts | $2,357 | $1,997 |
Tax credits | 3,250 | 1,636 |
Other accruals | 67,468 | 61,100 |
Total current deferred tax assets | 73,075 | 64,733 |
Noncurrent deferred tax assets: | ||
Tax credits | 11,475 | 5,333 |
Net operating losses | 746 | 1,180 |
Other accruals | 63,968 | 59,176 |
Other | 16,468 | 16,181 |
Total noncurrent deferred tax assets | 92,657 | 81,870 |
Total deferred tax assets | 165,732 | 146,603 |
Current deferred tax liabilities: | ||
Inventories | 90,333 | 84,955 |
Total current deferred tax liabilities | 90,333 | 84,955 |
Noncurrent deferred tax liabilities: | ||
Property and equipment | 139,604 | 131,851 |
Other | 38,217 | 30,732 |
Total noncurrent deferred tax liabilities | 177,821 | 162,583 |
Total deferred tax liabilities | 268,154 | 247,538 |
Net deferred tax liabilities | ($102,422) | ($100,935) |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Net Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Income Taxes and Tax Credits [Abstract] | ||
Deferred tax assets - current | $73,075 | $64,733 |
Deferred tax liabilities - current | -90,333 | -84,955 |
Deferred tax liabilities - current | -17,258 | -20,222 |
Deferred tax assets - noncurrent | 92,657 | 81,870 |
Deferred tax liabilities - noncurrent | -177,821 | -162,583 |
Deferred tax liabilities - noncurrent | -85,164 | -80,713 |
Net deferred tax liabilities | ($102,422) | ($100,935) |
Income_Taxes_Reconciliation_of1
Income Taxes (Reconciliation of the Provision for Income Taxes to the Amounts Computed at the Federal Statutory Rate) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Income Taxes and Tax Credits [Abstract] | |||
Federal, current | $399,271 | $348,303 | $311,631 |
Federal, deferred | 5,987 | 847 | 10,030 |
Federal, total | 405,258 | 349,150 | 321,661 |
State, current | 43,242 | 38,428 | 35,982 |
State, deferred | -4,500 | 1,072 | -1,868 |
State, total | 38,742 | 39,500 | 34,114 |
Current income tax expense (benefit) | 442,513 | 386,731 | 347,613 |
Deferred income tax expense (benefit) | 1,487 | 1,919 | 8,162 |
Provision for income taxes | $444,000 | $388,650 | $355,775 |
Income_Taxes_Schedule_of_Compo1
Income Taxes (Schedule of Components of the Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal income taxes at statutory rate | $427,764 | $370,632 | $329,532 |
State income taxes, net of federal tax benefit | 25,320 | 26,802 | 22,426 |
Other items, net | -9,084 | -8,784 | 3,817 |
Provision for income taxes | $444,000 | $388,650 | $355,775 |
Income_Taxes_Summary_of_Change
Income Taxes (Summary of Changes in Gross Amount of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ||||
Balance as of January 1, | $49,598 | $50,459 | $51,004 | $45,800 |
Additions based on tax positions related to the current year | 4,665 | 7,046 | 8,100 | |
Additions based on tax positions related to prior years | 0 | 0 | 1,301 | |
Payments related to items settled with taxing authorities | -300 | -1,056 | -451 | |
Reduction due to lapse of statute of limitations and settlements (with 2015 estimate) | -17,000 | -5,226 | -6,535 | -3,746 |
Balance as of December 31, | $49,598 | $50,459 | $51,004 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (USD $) | 12 Months Ended | 2 Months Ended | 50 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 27, 2015 | Feb. 27, 2015 |
Proceeds from (Repurchase of) Equity | ||||
Common stock repurchased, shares | 5,743 | 8,529 | ||
Common stock repurchased, average price per share | $150.86 | $109.38 | ||
Common stock repurchased, value | $866,398 | $932,900 | ||
Subsequent Event [Member] | ||||
Proceeds from (Repurchase of) Equity | ||||
Common stock repurchased, shares | 100 | 46,500 | ||
Common stock repurchased, average price per share | $197.48 | $91.38 | ||
Common stock repurchased, value | $27,800 | $4,200,000 |
Earnings_Per_Share_Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Numerator (basic and diluted): | ||||||||||||||||||||||
Net income | $181,678 | $216,997 | $205,647 | $173,860 | $152,347 | $186,489 | $177,127 | $154,329 | $778,182 | $670,292 | $585,746 | |||||||||||
Denominator: | ||||||||||||||||||||||
Denominator for basic earnings per share - weighted-average shares | 104,262 | 109,244 | 121,182 | |||||||||||||||||||
Effect of stock options | 1,779 | [1] | 1,857 | [1] | 2,132 | [1] | ||||||||||||||||
Denominator for diluted earnings per share - weighted-average shares and assumed conversion | 106,041 | 111,101 | 123,314 | |||||||||||||||||||
Earnings per share - basic | $1.79 | [2] | $2.10 | [2] | $1.94 | [2] | $1.64 | [2] | $1.43 | [2] | $1.72 | [2] | $1.61 | [2] | $1.38 | [2] | $7.46 | $6.14 | $4.83 | |||
Earnings per share - assuming dilution | $1.76 | [2] | $2.06 | [2] | $1.91 | [2] | $1.61 | [2] | $1.40 | [2] | $1.69 | [2] | $1.58 | [2] | $1.36 | [2] | $7.34 | $6.03 | $4.75 | |||
Antidilutive stock options | 363 | [1] | 498 | [1] | 1,816 | [1] | ||||||||||||||||
Weighted-average exercise price | $151.65 | [1] | $103.80 | [1] | $87.88 | [1] | ||||||||||||||||
[1] | See Note 9 for further discussion on the terms of the Company's share-based compensation plans. | |||||||||||||||||||||
[2] | Earnings per share amounts are computed independently for each quarter and annual period. The quarterly earnings per share amounts may not sum to equal the full-year earnings per share. |
Quarterly_Results_unaudited_Un
Quarterly Results (unaudited) (Unaudited Operating Data) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||
Sales | $1,764,178 | $1,876,872 | $1,847,088 | $1,727,943 | $1,621,234 | $1,728,025 | $1,714,969 | $1,585,009 | $7,216,081 | $6,649,237 | $6,182,184 | ||||||||
Gross profit | 912,107 | 968,201 | 950,877 | 877,716 | 819,300 | 879,163 | 871,875 | 798,663 | 3,708,901 | 3,369,001 | 3,097,418 | ||||||||
Operating income | 303,012 | 343,768 | 336,474 | 287,120 | 255,760 | 300,380 | 296,261 | 251,084 | 1,270,374 | 1,103,485 | 977,393 | ||||||||
Net income | $181,678 | $216,997 | $205,647 | $173,860 | $152,347 | $186,489 | $177,127 | $154,329 | $778,182 | $670,292 | $585,746 | ||||||||
Earnings per share - basic | $1.79 | [1] | $2.10 | [1] | $1.94 | [1] | $1.64 | [1] | $1.43 | [1] | $1.72 | [1] | $1.61 | [1] | $1.38 | [1] | $7.46 | $6.14 | $4.83 |
Earnings per share - assuming dilution | $1.76 | [1] | $2.06 | [1] | $1.91 | [1] | $1.61 | [1] | $1.40 | [1] | $1.69 | [1] | $1.58 | [1] | $1.36 | [1] | $7.34 | $6.03 | $4.75 |
[1] | Earnings per share amounts are computed independently for each quarter and annual period. The quarterly earnings per share amounts may not sum to equal the full-year earnings per share. |
Schedule_II_Valuation_and_Qual2
Schedule II - Valuation and Qualifying Accounts (Valuation and Qualifying Accounts) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Sales returns and allowances [Member] | ||||||
Balance at beginning of period | $6,500 | $7,326 | $6,406 | |||
Additions - charged to costs and expenses | 355 | -826 | 920 | |||
Additions - charged to other accounts - describe | 0 | 0 | 0 | |||
Deductions - describe | 0 | 0 | 0 | |||
Balance at end of period | 6,855 | 6,500 | 7,326 | |||
Allowance for doubtful accounts [Member] | ||||||
Balance at beginning of period | 6,661 | 6,447 | 6,403 | |||
Additions - charged to costs and expenses | 8,919 | 8,499 | 8,043 | |||
Additions - charged to other accounts - describe | 0 | 0 | 0 | |||
Deductions - describe | 6,867 | [1] | 8,285 | [1] | 7,999 | [1] |
Balance at end of period | $8,713 | $6,661 | $6,447 | |||
[1] | Uncollectable accounts written off. |