Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 22, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Document type | 10-K | ||
Amendment flag | false | ||
Document period end date | Dec. 31, 2015 | ||
Document fiscal year focus | 2,015 | ||
Current fiscal year end date | --12-31 | ||
Document fiscal period focus | FY | ||
Entity registrant name | O REILLY AUTOMOTIVE INC | ||
Trading symbol | orly | ||
Entity central index key | 898,173 | ||
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 | 97,189,417 | ||
Entity public float | $ 18,290,893,288 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | [1] |
Assets | |||
Cash and cash equivalents | $ 116,301 | $ 250,560 | |
Accounts receivable, less allowance for doubtful accounts $9,637 in 2015 and $8,713 in 2014 | 161,078 | 143,900 | |
Amounts receivable from suppliers | 72,609 | 69,311 | |
Inventory | 2,631,015 | 2,554,789 | |
Other current assets | 29,023 | 46,820 | |
Total current assets | 3,010,026 | 3,065,380 | |
Property and equipment, at cost | 4,372,250 | 3,993,509 | |
Less: accumulated depreciation and amortization | 1,510,694 | 1,334,949 | |
Net property and equipment | 2,861,556 | 2,658,560 | |
Notes receivable, less current portion | 13,219 | 13,349 | |
Goodwill | 757,142 | 756,384 | |
Other assets, net | 34,741 | 38,410 | |
Total assets | 6,676,684 | 6,532,083 | |
Liabilities and shareholders' equity | |||
Accounts payable | 2,608,231 | 2,417,167 | |
Self-insurance reserves | 72,741 | 64,882 | |
Accrued payroll | 59,101 | 78,442 | |
Accrued benefits and withholdings | 72,203 | 62,946 | |
Income taxes payable | 1,444 | 0 | |
Other current liabilities | 232,678 | 189,836 | |
Current portion of long-term debt | 0 | 25 | |
Total current liabilities | 3,046,398 | 2,813,298 | |
Long-term debt, less current portion | 1,390,018 | 1,388,397 | |
Deferred income taxes | 79,772 | 102,422 | |
Other liabilities | 199,182 | 209,548 | |
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 - 97,737,171 as of December 31, 2015, and 101,602,935 as of December 31, 2014 | 977 | 1,016 | |
Additional paid-in capital | 1,281,497 | 1,194,929 | |
Retained earnings | 678,840 | 822,473 | |
Total shareholders' equity | 1,961,314 | 2,018,418 | |
Total liabilities and shareholders' equity | $ 6,676,684 | $ 6,532,083 | |
[1] | Certain prior period amounts have been reclassified to conform to current period presentation. See Note 1 "Summary of Significant Accounting Policies" to the Consolidated Financial Statements for more information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 9,637 | $ 8,713 |
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 | 97,737,171 | 101,602,935 |
Common stock, shares outstanding | 97,737,171 | 101,602,935 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Sales | $ 7,966,674 | $ 7,216,081 | $ 6,649,237 |
Cost of goods sold, including warehouse and distribution expenses | 3,804,031 | 3,507,180 | 3,280,236 |
Gross profit | 4,162,643 | 3,708,901 | 3,369,001 |
Selling, general and administrative expenses | 2,648,622 | 2,438,527 | 2,265,516 |
Operating income | 1,514,021 | 1,270,374 | 1,103,485 |
Other income (expense): | |||
Interest expense | (57,129) | (53,290) | (49,074) |
Interest income | 2,340 | 2,301 | 1,992 |
Other, net | 1,134 | 2,797 | 2,539 |
Total other expense | (53,655) | (48,192) | (44,543) |
Income before income taxes | 1,460,366 | 1,222,182 | 1,058,942 |
Provision for income taxes | 529,150 | 444,000 | 388,650 |
Net income | $ 931,216 | $ 778,182 | $ 670,292 |
Earnings per share-basic: | |||
Earnings per share - basic | $ 9.32 | $ 7.46 | $ 6.14 |
Weighted-average common shares outstanding - basic | 99,965 | 104,262 | 109,244 |
Earnings per share-assuming dilution: | |||
Earnings per share - assuming dilution | $ 9.17 | $ 7.34 | $ 6.03 |
Weighted-average common shares outstanding - assuming dilution | 101,514 | 106,041 | 111,101 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | |
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 | $ 0 | 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 from share-based compensation | 30,811 | 30,811 | |||
Share based compensation | 19,531 | 19,531 | |||
Share repurchases, including fees | (933,028) | $ (85) | (85,717) | (847,226) | |
Share repurchases, shares | (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 | 105,940,000 | ||||
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 from share-based compensation | 49,150 | 49,150 | |||
Share based compensation | 20,474 | 20,474 | |||
Share repurchases, including fees | $ (866,484) | $ (57) | (64,385) | (802,042) | |
Share repurchases, shares | (5,743,000) | (5,743,000) | |||
Balance at Dec. 31, 2014 | $ 2,018,418 | [1] | $ 1,016 | 1,194,929 | 822,473 |
Balance (in shares) at Dec. 31, 2014 | 101,602,935 | 101,603,000 | |||
Net income | $ 931,216 | 931,216 | |||
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes | 11,630 | 11,630 | |||
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares | 59,000 | ||||
Net issuance of common stock upon exercise of stock options | 52,911 | $ 10 | 52,901 | ||
Net issuance of common stock upon exercise of stock options, shares | 976,000 | ||||
Excess tax benefit from share-based compensation | 63,078 | 63,078 | |||
Share based compensation | 20,274 | 20,274 | |||
Share repurchases, including fees | $ (1,136,213) | $ (49) | (61,315) | (1,074,849) | |
Share repurchases, shares | (4,901,000) | (4,901,000) | |||
Balance at Dec. 31, 2015 | $ 1,961,314 | $ 977 | $ 1,281,497 | $ 678,840 | |
Balance (in shares) at Dec. 31, 2015 | 97,737,171 | 97,737,000 | |||
[1] | Certain prior period amounts have been reclassified to conform to current period presentation. See Note 1 "Summary of Significant Accounting Policies" to the Consolidated Financial Statements for more information. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Operating activities: | |||||
Net income | $ 931,216 | $ 778,182 | $ 670,292 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization of property, equipment and intangibles | 210,256 | 194,205 | 183,180 | ||
Amortization of debt discount and issuance costs | 2,106 | 2,086 | 2,054 | ||
Excess tax benefit from share-based compensation | (63,078) | (49,150) | (30,811) | ||
Deferred income taxes | (22,650) | 1,487 | 1,919 | ||
Share-based compensation programs | 21,899 | 23,095 | 21,722 | ||
Other | 6,839 | 5,592 | 7,405 | ||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (23,858) | (19,271) | (16,937) | ||
Inventory | (76,226) | (179,742) | (96,876) | ||
Accounts payable | 191,064 | 360,646 | 127,178 | ||
Income taxes payable | 81,617 | 32,158 | 24,777 | ||
Accrued payroll | (19,341) | 12,923 | 5,400 | ||
Accrued benefits and withholdings | 17,970 | 28,899 | 2,355 | ||
Other | 23,662 | (680) | 6,368 | ||
Net cash provided by operating activities | 1,281,476 | 1,190,430 | 908,026 | ||
Investing activities: | |||||
Purchases of property and equipment | (414,020) | (429,987) | (395,881) | ||
Proceeds from sale of property and equipment | 2,758 | 2,880 | 1,731 | ||
Payments received on notes receivable | 4,074 | 3,705 | 5,396 | ||
Net cash used in investing activities | (407,188) | (423,402) | (388,754) | ||
Financing activities: | |||||
Proceeds from the issuance of long-term debt | 0 | 0 | 299,976 | ||
Payment of debt issuance costs | 0 | 0 | (2,967) | ||
Principal payments on capital leases | (25) | (72) | (224) | ||
Repurchases of common stock | (1,136,213) | (866,484) | (933,028) | ||
Excess tax benefit from share-based compensation | 63,078 | 49,150 | 30,811 | ||
Net proceeds from issuance of common stock | 64,613 | 69,620 | 69,350 | ||
Net cash used in financing activities | (1,008,547) | (747,786) | (536,082) | ||
Net (decrease) increase in cash and cash equivalents | (134,259) | 19,242 | (16,810) | ||
Cash and cash equivalents at beginning of the year | 250,560 | [1] | 231,318 | 248,128 | |
Cash and cash equivalents at end of the year | 116,301 | 250,560 | [1] | 231,318 | |
Supplemental disclosures of cash flow information: | |||||
Income taxes paid | 485,824 | 416,458 | 362,596 | ||
Interest paid, net of capitalized interest | $ 55,061 | $ 51,203 | $ 46,760 | ||
[1] | Certain prior period amounts have been reclassified to conform to current period presentation. See Note 1 "Summary of Significant Accounting Policies" to the Consolidated Financial Statements for more information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , the Company owned and operated 4,571 stores in 44 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 an effect on previously reported totals for assets and liabilities but had no effect on reported totals for 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 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 $1.1 million and $1.0 million as of December 31, 2015 and 2014 , respectively. 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, 2015 or 2014 . 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 $2.63 billion and $2.56 billion as of December 31, 2015 and 2014 , respectively. LIFO costs exceeded replacement costs by $85.9 million and $61.4 million at December 31, 2015 and 2014 , respectively. Fair value of financial instruments: 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. See Note 2 for further information concerning the Company's financial and non-financial assets and liabilities measured at fair value on a recurring and non-recurring basis. 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 $17.3 million and $17.5 million at December 31, 2015 and 2014 , respectively. The notes receivable, which do not bear interest, are due in varying amounts through March 2023 . 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, 2015 or 2014 . Goodwill and other intangibles: The accompanying Consolidated Balance Sheets at December 31, 2015 and 2014 , 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 2015 and 2014 , 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, 2015 and 2014 ; as such, no goodwill impairment adjustment was required as of December 31, 2015 and 2014 . Finite-lived intangibles are carried at cost and 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 charges to its long-lived assets and the Company did not record a material impairment charge to its long-lived assets during the year ended December 31, 2015 or 2014 . 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 for further information concerning the Company's benefit plans. 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, 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, 2015 and 2014 . See Note 2 for further information concerning the fair value measurements of the Company's marketable securities. 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, 2015 and 2014 (in thousands): December 31, 2015 2014 Self-insurance reserves (undiscounted) $ 141,173 $ 132,879 Self-insurance reserves (discounted) 131,990 123,276 The current portion of the Company's discounted self-insurance reserves totaled $72.7 million and $64.9 million as of December 31, 2015 and 2014 , respectively. The remainder was included within "Other liabilities" on the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014 . 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 liabilities. 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 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. See Note 14 for further information concerning the Company's litigation reserves. 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. The Company maintains a retail loyalty program named O'Reilly O'Rewards, designed to build brand recognition. The program allows a retail customer to enroll at no charge, does not impose a membership fee and provides members with the ability to earn loyalty points by making qualifying purchases at the Company's stores. Upon reaching established thresholds, the members are automatically issued coupons, which expire 90 days after issuance, have no cash value and may be redeemed for most items in the Company's stores with a total purchase price equal to or greater than the value of the coupon. Points accrued in a member's account, which have not been awarded to the member with a coupon, expire 12 months after the date in which they were earned. The Company records a deferred revenue liability, based on a breakage adjusted estimated redemption rate, and a corresponding reduction in revenue in periods when loyalty points are earned by members. The Company recognizes revenue and a corresponding reduction to the deferred revenue liability in periods when loyalty program issued coupons are redeemed by members. As of December 31, 2015 , the Company had recorded a deferred revenue liability of $7.2 million related to its loyalty program, which was included as a component of "Other liabilities" in the accompanying Consolidated Balance Sheets, and during the year ended December 31, 2015 , the Company recognized $11.2 million of deferred revenue related to its loyalty program. As of December 31, 2014 , the Company recorded a deferred revenue liability of $4.3 million related to its loyalty program, which was included as a component of "Other liabilities" in the accompanying Consolidated Balance Sheets, and during the year ended December 31, 2014 , the Company recognized $5.6 million of deferred revenue related to its loyalty program. 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 $79.3 million , $79.0 million and $78.3 million for the years ended December 31, 2015 , 2014 and 2013 , 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 and director stock plan, stock issued through the Company's employee stock purchase plan and restricted stock awarded to employees and directors through other compensation plans. See Note 9 for further information concerning the Company's share-based compensation and 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, 2015 , 2014 and 2013 , were $7.4 million , $11.5 million and $10.6 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. Debt issuance costs related to the Company's long-term senior notes are recorded as a reduction of the principal amount of the corresponding senior notes. Debt issuance costs related to the Company's unsecured revolving credit facility are recorded as an asset. 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 $8.3 million and $9.9 million , net of accumulated amortization, as of December 31, 2015 and 2014 , respectively, of which $1.2 million and $1.7 million were included within "Other assets, net" as of December 31, 2015 and 2014 , respectively, with the remainder included within "Long-term debt, less current portion" on the accompanying Consolidated Balance Sheets. 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 $2.9 million and $3.4 million as of December 31, 2015 and 2014 , respectively. See Note 5 for further information concerning debt issuance costs and original issuance discounts associated with the Company's issuances of 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, 2015 and 2014 , 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 13 for further information concerning the Company's common stock equivalents. New accounting pronouncements: In May of 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standard Update ("ASU") 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. In August of 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" ("ASU 2015-14"), to defer the effective date of ASU 2014-09 by one year. Originally, for public companies, ASU 2014-09 was effective for annual reporting periods beginning after December 15, 2016, including periods within that reporting period, and could be adopted either retrospectively or as a cumulative effect adjustment at the date of adoption, with early adoption not permitted. For public companies, ASU 2015-14 changes ASU 2014-09 to be effective for annual reporting periods beginning after December 15, 2017, including periods within that reporting period, and can be adopted retrospectively or as a cumulative effective adjustment at the date of adoption, with early adoption allowed, but not before ASU 2014-09's original effective date of December 15, 2016. The Company will adopt this guidance beginning with its first quarter ending March 31, 2018. 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, and which method of adoption is most appropriate for the Company. In January of 2015, the FASB issued ASU No. 2015-01, "Extraordinary and Unusual Items (Subtopic 225-20)" ("ASU 2015-01"). ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items; such that, an entity will no longer need to assess whether a particular event or transaction event is extraordinary. ASU 2015-01 is effective for annual reporting periods beginning after December 15, 2015, including periods within that reporting period, and early adoption is permitted. The Company will adopt this guidance beginning with its first quarter ending March 31, 2016. The application of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In April of 2015, the FASB issued ASU No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30)" ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August of 2015, the FASB issued ASU 2015-15, "Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to St aff Announcement at June 18, 2015, EITF Meeting" ("ASU 2015-15"), to update ASU 2015-03 to reflect an SEC clarification. ASU 2015-15 allows an entity, in the case of a line-of-credit arrangement, to either follow ASU 2015-03 or defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratable over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including periods within that reporting period, requires retrospective application, and early adoption is permitted. The Company early-adopted ASU 2015-03 and ASU 2015-15 as of December 31, 2015, and applied the requirements of the updates retrospectively. With the adoption of ASU 2015-15, the Company opted to defer and present debt issuance costs related to its unsecured revolving credit facility as an asset and subsequently amortize the deferred debt issuance costs ratable over the term of the unsecured revolving credit facility. The adoption of ASU 2015-03 resulted in the reclassification of $7.1 million and $8.2 million of unamortized debt issuance costs related to the Company's senior notes from "Other current assets" or "Other assets, net" to "Long-term debt, less current portion" within the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Fair value measurements | NOTE 2 – FAIR VALUE MEASUREMENTS 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, 2015 and 2014 . The Company recorded a decrease in fair value related to its marketable securities in the amount of $0.2 million , which was included in "Other income (expense)" on the accompanying Consolidated Statements of Income, for the year ended December 31, 2015 . The tables below identify the estimated fair value of the Company's marketable securities (designated as trading securities), using the market approach. The fair values as of December 31, 2015 and 2014 , were determined by reference to quoted market prices (Level 1) (in thousands): December 31, 2015 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Marketable securities $ 16,895 $ — $ — $ 16,895 December 31, 2014 Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total 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, 2015 and 2014 , 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, 2015 and 2014 (see Note 5). The table below identifies the estimated fair value of the Company's senior notes, using the market approach. The fair values as of December 31, 2015 and 2014 , were determined by reference to quoted market prices of the same or similar instruments (Level 2) (in thousands): December 31, 2015 December 31, 2014 Carrying Amount Estimated Fair Value Carrying Amount (1) Estimated Fair Value $500 million, 4.875% Senior Notes due 2021 $ 495,951 $ 542,078 $ 495,144 $ 566,700 $300 million, 4.625% Senior Notes due 2021 298,396 319,620 298,113 337,222 $300 million, 3.800% Senior Notes due 2022 297,535 303,595 297,215 310,749 $300 million, 3.850% Senior Notes due 2023 $ 298,136 $ 302,468 $ 297,925 $ 311,656 (1) Prior period amounts have been reclassified to conform to current period presentation, due to the Company's adoption of new accounting standards during the fourth quarter ended December 31, 2015, see Note 1 for further information. 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, 2015 | |
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 Balance Sheets as of December 31, 2015 and 2014 (in thousands, except useful lives): Original Useful Lives December 31, 2015 December 31, 2014 Land $ 590,244 $ 527,471 Buildings and building improvements 15 – 39 years 1,603,389 1,418,479 Leasehold improvements 3 – 25 years 554,198 523,550 Furniture, fixtures and equipment 3 – 20 years 1,108,127 1,052,846 Vehicles 5 – 10 years 313,401 279,874 Construction in progress 202,891 191,289 Total property and equipment 4,372,250 3,993,509 Less: accumulated depreciation and amortization 1,510,694 1,334,949 Net property and equipment $ 2,861,556 $ 2,658,560 The Company recorded depreciation and amortization expense related to property and equipment in the amounts of $203.4 million , $193.4 million and $183.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 , the Company recorded an increase in goodwill of $0.8 million and $0.2 million , respectively, resulting from small acquisitions. The Company did not record any goodwill impairment during the years ended December 31, 2015 or 2014 . The following table identifies the changes in goodwill for the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Goodwill, balance at January 1, $ 756,384 $ 756,225 Change in goodwill 758 159 Goodwill, balance at December 31, $ 757,142 $ 756,384 As of December 31, 2015 and 2014 , 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, 2015 and 2014 (in thousands): Cost of Amortizable Accumulated Amortization (Expense) Benefit Net Amortizable Intangibles December 31, December 31, December 31, December 31, December 31, December 31, Amortizable intangible assets: Favorable leases $ 32,070 $ 49,780 $ (19,991 ) $ (35,145 ) $ 12,079 $ 14,635 Non-compete agreements 732 617 (409 ) (344 ) 323 273 Total amortizable intangible assets $ 32,802 $ 50,397 $ (20,400 ) $ (35,489 ) $ 12,402 $ 14,908 Unfavorable leases $ 28,580 $ 49,200 $ 22,415 $ 40,263 $ 6,165 $ 8,937 The Company recorded favorable lease assets in conjunction with the acquisition of CSK Auto Corporation ("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 9.1 years as of December 31, 2015 . For the years ended December 31, 2015 , 2014 and 2013 , the Company recorded amortization expense of $2.7 million , $3.9 million and $4.0 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 4.1 years as of December 31, 2015 . For the years ended December 31, 2015 , 2014 and 2013 , the Company recognized an amortized benefit of $2.8 million , $3.7 million and $4.5 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, 2015 (in thousands): December 31, 2015 Amortization Expense Amortization Benefit Total Amortization Expense 2016 $ (2,336 ) $ 2,055 $ (281 ) 2017 (1,920 ) 1,493 (427 ) 2018 (1,457 ) 923 (534 ) 2019 (1,235 ) 712 (523 ) 2020 (1,054 ) 541 (513 ) Total $ (8,002 ) $ 5,724 $ (2,278 ) |
Financing
Financing | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Financing | NOTE 5 – FINANCING The following table identifies the amounts of the Company's financing facilities, which were included in "Long-term debt, less current portion" on the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 (1) Revolving Credit Facility $ — $ — $500 million, 4.875% Senior Notes due 2021 (2) , effective interest rate of 4.963% 495,951 495,144 $300 million, 4.625% Senior Notes due 2021 (3) , effective interest rate of 4.647% 298,396 298,113 $300 million, 3.800% Senior Notes due 2022 (4) , effective interest rate of 3.845% 297,535 297,215 $300 million, 3.850% Senior Notes due 2023 (5) , effective interest rate of 3.851% $ 298,136 $ 297,925 (1) Prior period amounts have been reclassified to conform to current period presentation, due to the Company's adoption of new accounting standards during the fourth quarter ended December 31, 2015, see Note 1 for further information. (2) Net of unamortized discount of $1.8 million and $2.1 million as of December 31, 2015 and 2014 , respectively, and debt issuance costs of $2.3 million and $2.7 million as of December 31, 2015 and 2014 , respectively. (3) Net of unamortized discount of $0.3 million and $0.4 million as of December 31, 2015 and 2014 , respectively, and debt issuance costs of $1.3 million and $1.5 million as of December 31, 2015 and 2014 , respectively. (4) Net of unamortized discount of $0.8 million and $0.9 million as of December 31, 2015 and 2014 , respectively, and debt issuance costs of $1.7 million and $1.9 million as of December 31, 2015 and 2014 , respectively. (5) Net of unamortized discount of less than $0.1 million as of December 31, 2015 and 2014 , and debt issuance costs of $1.8 million and $2.1 million as of December 31, 2015 and 2014 , respectively. As of December 31, 2015 , 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, and as further amended by Amendment No. 3 dated as of June 18, 2015 (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 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, 2015 and 2014 , the Company had outstanding letters of credit, primarily to support obligations related to workers' compensation, general liability and other insurance policies, in the amounts of $37.5 million and $47.9 million , respectively, reducing the aggregate availability under the Revolving Credit Facility by those amounts. As of December 31, 2015 and 2014 , 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, subject to limited exceptions. As of December 31, 2015 , based upon the Company's credit ratings, its margin for Base Rate loans was 0.000% , its margin for Eurodollar Rate loans was 0.875% and its facility fee was 0.125% . The Credit Agreement contains certain covenants, including limitations on indebtedness, a minimum consolidated fixed charge coverage ratio of 2.50 times, and a maximum consolidated leverage ratio of 3.00 times. 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, 2015, 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 January 2021 and June 2023 with United Missouri Bank, N.A. as trustee. Interest on the senior notes, ranging from 3.800% to 4.875%, is payable semi-annually 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, 2015. |
Leasing
Leasing | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leasing | NOTE 6 – LEASING The following table identifies the future minimum lease payments under all of the Company's operating leases for each of the next five years and in the aggregate as of December 31, 2015 (in thousands): December 31, 2015 Related Parties Non-Related Parties Total 2016 $ 4,659 $ 255,156 $ 259,815 2017 4,527 246,114 250,641 2018 4,318 228,799 233,117 2019 2,823 207,827 210,650 2020 2,039 185,969 188,008 Thereafter 7,152 983,141 990,293 Total $ 25,518 $ 2,107,006 $ 2,132,524 See Note 11 for further information concerning the Company's related party operating leases. Capital lease agreements: The Company assumed certain building capital leases in the acquisition of CSK. The only remaining building capital lease agreement expired on April 30, 2015. The present value of future minimum lease payments under this building capital lease at December 31, 2014, was less than $0.1 million and was classified as "Current portion of 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, 2015 or 2014 . 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 $18.8 million at December 31, 2015 . The following table summarizes the net rent expense amounts for the years ended December 31, 2015 , 2014 and 2013 (in thousands): For the Year Ended 2015 2014 2013 Minimum operating lease expense $ 263,479 $ 254,565 $ 247,039 Contingent rents 947 759 701 Other lease related occupancy costs 12,852 11,688 11,257 Total rent expense 277,278 267,012 258,997 Less: sublease income 4,019 3,984 4,105 Net rent expense $ 273,259 $ 263,028 $ 254,892 |
Warranties
Warranties | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 . The following table identifies the changes in the Company's aggregate product warranty liabilities for the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Warranty liabilities, balance at January 1, $ 34,226 $ 33,386 Warranty claims (61,819 ) (52,297 ) Warranty accruals 62,816 53,137 Warranty liabilities, balance at December 31, $ 35,223 $ 34,226 |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2015 | |
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. The Company's 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 4, 2015, May 29, 2015, and February 10, 2016, 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 , $500 million and $750 million , respectively, resulting in a cumulative authorization amount of $6.3 billion . Each additional authorization is effective for a three -year period, beginning on its 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 2015 2014 Shares repurchased 4,901 5,743 Average price per share $ 231.81 $ 150.86 Total investment $ 1,136,139 $ 866,398 As of December 31, 2015 , the Company had $143.2 million remaining under its share repurchase program. Subsequent to the end of the year and through February 26, 2016 , the Company repurchased an additional 0.8 million shares of its common stock under its share repurchase program, at an average price of $247.61 , for a total investment of $201.6 million . The Company has repurchased a total of 52.1 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through February 26, 2016 , at an average price of $106.76 , for a total aggregate investment of $5.6 billion . |
Share-Based Compensation and Be
Share-Based Compensation and Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based 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, 2015 (in thousands): December 31, 2015 Plans Total Shares Authorized for Issuance under the Plans Shares Available for Future Issuance under the Plans Employee Incentive Plans 34,000 6,334 Director Stock Plan 1,000 263 Performance Incentive Plan 650 383 Employee Stock Purchase Plans 4,250 764 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, 2015 : Shares (in thousands) Weighted-Average Exercise Price Average Remaining Contractual Terms Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2014 4,025 $ 64.82 Granted 317 211.64 Exercised (953 ) 54.71 Forfeited (98 ) 93.65 Outstanding at December 31, 2015 3,291 $ 81.04 5.3 Years $ 567,333 Vested or expected to vest at December 31, 2015 3,216 $ 79.75 5.3 Years $ 558,536 Exercisable at December 31, 2015 2,308 $ 52.54 4.2 Years $ 463,671 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, 2015 : Shares Weighted-Average Exercise Price Average Remaining Contractual Terms Aggregate Intrinsic Value Outstanding at December 31, 2014 40 $ 39.19 Granted — — Exercised (23 ) 34.80 Forfeited — — Outstanding at December 31, 2015 17 $ 45.13 1.1 Years $ 3,541 Vested or expected to vest at December 31, 2015 17 $ 45.13 1.1 Years $ 3,541 Exercisable at December 31, 2015 17 $ 45.13 1.1 Years $ 3,541 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, 2015 , 2014 and 2013 : December 31, 2015 2014 2013 Risk free interest rate 1.52 % 1.60 % 0.96 % Expected life 5.7 Years 5.3 Years 5.0 Years Expected volatility 22.3 % 24.3 % 31.0 % 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, 2015 , 2014 and 2013 : For the Year Ended 2015 2014 2013 Compensation expense for stock options awarded (in thousands) $ 18,209 $ 18,705 $ 17,836 Income tax benefit from compensation expense related to stock options (in thousands) 6,811 6,923 6,804 Total intrinsic value of stock options exercised (in thousands) 169,248 147,236 95,812 Cash received from exercise of stock options (in thousands) 105,822 59,594 59,745 Weighted-average grant-date fair value of options awarded $ 51.56 $ 38.18 $ 29.98 Weighted-average remaining contractual life of exercisable options 4.2 Years 4.6 Years 4.8 Years The remaining unrecognized compensation expense related to unvested stock option awards at December 31, 2015 , was $24.2 million and the weighted-average period of time over which this cost will be recognized is 2.5 years . Restricted stock: The Company's performance incentive plans provide 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 these plans is based on the closing market price of the Company's common stock on the date of award and compensation expense is recorded over the minimum required service period. The table below identifies the employee restricted stock activity under these plans during the year ended December 31, 2015 (in thousands, except per share data): Shares Weighted-Average Grant-Date Fair Value Non-vested at December 31, 2014 16 $ 123.68 Granted during the period 2 192.65 Vested during the period (1) (10 ) 87.59 Forfeited during the period (1 ) 129.93 Non-vested at December 31, 2015 7 $ 128.27 (1) Includes four thousand shares withheld to cover employees' taxes upon vesting. The Company's director stock plan provides for the award of shares of restricted stock to the directors of the Company 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, 2015 (in thousands, except per share data): Shares Weighted-Average Grant-Date Fair Value Non-vested at December 31, 2014 8 $ 124.44 Granted during the period 3 217.38 Vested during the period (4 ) 117.31 Forfeited during the period — — Non-vested at December 31, 2015 7 $ 167.73 The following table summarizes activity related to restricted stock awarded by the Company for the years ended December 31, 2015 , 2014 and 2013 (in thousands, except per share data): For the Year Ended 2015 2014 2013 Compensation expense for restricted shares awarded $ 1,625 $ 2,621 $ 2,191 Income tax benefit from compensation expense related to restricted shares $ 610 $ 970 $ 836 Total fair value of restricted shares at vest date $ 3,284 $ 3,749 $ 3,294 Shares awarded under the plans 4 16 22 Weighted-average grant-date fair value of shares awarded under the plans $ 208.56 $ 147.23 $ 102.63 The remaining unrecognized compensation expense related to unvested restricted share awards at December 31, 2015 , was $1.2 million and the weighted-average period of time over which this cost will be recognized is 2.2 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, 2015 , 2014 and 2013 (in thousands, except per share data): For the Year Ended 2015 2014 2013 Compensation expense for shares issued under the ESPP $ 2,065 $ 1,769 $ 1,695 Income tax benefit from compensation expense for shares issued under the ESPP $ 773 $ 655 $ 647 Shares issued under the ESPP 60 77 101 Weighted-average price of shares issued under the ESPP $ 195.04 $ 130.12 $ 95.51 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. An employee must be employed on December 31 to receive that year's Company matching contribution, with the matching contribution funded annually at the beginning of the subsequent year 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, 2015 , 2014 or 2013 . The Company expensed matching contributions under the 401(k) Plan in the amounts of $18.5 million , $16.8 million and $16.5 million for the years ended December 31, 2015 , 2014 and 2013 , 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 matched compensation, including salary and incentive based compensation that was precluded under the Company's 401(k) Plan due to the annual limitations, which is then matched by the Company using the same formula as the 401(k) Plan. An employee must be employed on December 31 to receive that year's Company matching contribution, with the matching contribution funded annually at the beginning of the subsequent year 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 $16.9 million and $15.4 million as of December 31, 2015 and 2014 , respectively, and was included within "Other liabilities" on the Consolidated Balance Sheets. The Company expensed matching contributions under the Deferred Compensation Plan in the amounts of $0.1 million , $0.2 million and $0.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | NOTE 10 – COMMITMENTS Construction commitments: As of December 31, 2015 , the Company had construction commitments in the amount of $62.6 million . Letter of credit commitments: As of December 31, 2015 , the Company had outstanding letters of credit, primarily to satisfy workers' compensation, general liability and other insurance policies, in the amount of $37.5 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, 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. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related parties | NOTE 11 – RELATED PARTIES The Company leases certain land and buildings related to 75 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, or members of an affiliated director's immediate family, and an executive officer of the Company 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 $4.5 million , $4.6 million and $4.4 million during the years ended December 31, 2015 , 2014 and 2013 , 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 concerning the Company's operating leases. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | NOTE 12 – 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 net deferred tax liabilities as presented on the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Deferred tax assets: Allowance for doubtful accounts $ 2,492 $ 2,357 Tax credits 11,747 14,725 Other accruals 151,635 131,436 Net operating losses 337 746 Other 19,051 16,468 Total deferred tax assets 185,262 165,732 Deferred tax liabilities: Inventories 82,313 90,333 Property and equipment 141,930 139,604 Other 40,791 38,217 Total deferred tax liabilities 265,034 268,154 Net deferred tax liabilities $ (79,772 ) $ (102,422 ) Provision for income taxes: The following tables reconcile the “Provision for income taxes" included in the accompanying Consolidated Statements of Income for the years ended December 31, 2015 , 2014 and 2013 (in thousands): For the Year Ended Current Deferred Total Federal income tax expense (benefit) $ 504,558 $ (21,973 ) $ 482,585 State income tax expense (benefit) 47,242 (677 ) 46,565 Net income tax expense (benefit) $ 551,800 $ (22,650 ) $ 529,150 For the Year Ended Current Deferred Total Federal income tax expense $ 399,271 $ 5,987 $ 405,258 State income tax expense (benefit) 43,242 (4,500 ) 38,742 Net income tax expense $ 442,513 $ 1,487 $ 444,000 For the Year Ended Current Deferred Total Federal income tax expense $ 348,303 $ 847 $ 349,150 State income tax expense 38,428 1,072 39,500 Net income tax expense $ 386,731 $ 1,919 $ 388,650 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, 2015 , 2014 and 2013 (in thousands): For the Year Ended 2015 2014 2013 Federal income taxes at statutory rate $ 511,128 $ 427,764 $ 370,632 State income taxes, net of federal tax benefit 32,137 25,320 26,802 Other items, net (14,115 ) (9,084 ) (8,784 ) Total provision for income taxes $ 529,150 $ 444,000 $ 388,650 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, 2015 , the Company had tax credit carryforwards available for state tax purposes, net of federal impact, in the amount of $11.7 million . As of December 31, 2015 , the Company had net operating loss carryforwards available for state purposes in the amount of $12.5 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, 2015 , 2014 and 2013 (in thousands): 2015 2014 2013 Unrealized tax benefit, balance at January 1, $ 49,598 $ 50,459 $ 51,004 Additions based on tax positions related to the current year 5,405 4,665 7,046 Additions based on tax positions related to prior years 995 — — Payments related to items settled with taxing authorities (4,012 ) (300 ) (1,056 ) Reductions due to the lapse of statute of limitations and settlements (15,058 ) (5,226 ) (6,535 ) Unrealized tax benefit, balance at December 31, $ 36,928 $ 49,598 $ 50,459 For the years ended December 31, 2015 , 2014 and 2013 , the Company recorded a reserve for unrecognized tax benefits, including interest and penalties, in the amounts of $43.6 million , $58.4 million and $58.6 million , respectively. All of the unrecognized tax benefits recorded as of December 31, 2015 , 2014 and 2013 , respectively, would affect the Company's effective tax rate if recognized, generally net of the federal tax effect of approximately $14.9 million . The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of the years ended December 31, 2015 , 2014 and 2013 , the Company had accrued approximately $6.7 million , $8.8 million and $8.1 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, 2015 , 2014 and 2013 , the Company recorded tax expense related to an increase in its liability for interest and penalties in the amounts of $2.8 million , $2.8 million and $2.1 million , respectively. Although unrecognized tax benefits for individual tax positions may increase or decrease during 2016 , the Company expects a reduction of $10.2 million of unrecognized tax benefits during the one-year period subsequent to December 31, 2015 , resulting from settlement or expiration of the statute of limitations. The Company's United States federal income tax returns for tax years 2014 and beyond remain subject to examination by the Internal Revenue Service ("IRS"). The IRS concluded an examination of the O'Reilly consolidated 2012 and 2013 federal income tax returns in the second quarter of 2015. The statute of limitations for the Company's federal income tax returns for tax years 2011 and prior expired on September 15, 2015. The statute of limitations for the Company's U.S. federal income tax return for 2012 will expire on September 15, 2016, unless otherwise extended. The IRS is currently conducting an examination of the Company's consolidated returns. The Company's state income tax returns remain subject to examination by various state authorities for tax years ranging from 2004 through 2014. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per share | NOTE 13 – EARNINGS PER SHARE The following table illustrates the computation of basic and diluted earnings per share for the years ended December 31, 2015 , 2014 and 2013 (in thousands, except per share data): For the Year Ended 2015 2014 2013 Numerator (basic and diluted): Net income $ 931,216 $ 778,182 $ 670,292 Denominator: Weighted-average common shares outstanding – basic 99,965 104,262 109,244 Effect of stock options (1) 1,549 1,779 1,857 Weighted-average common shares outstanding – assuming dilution 101,514 106,041 111,101 Earnings per share: Earnings per share-basic $ 9.32 $ 7.46 $ 6.14 Earnings per share-assuming dilution $ 9.17 $ 7.34 $ 6.03 Antidilutive potential common shares not included in the calculation of diluted earnings per share: Stock options (1) 245 363 498 Weighted-average exercise price per share of antidilutive stock options (1) $ 216.29 $ 151.65 $ 103.80 (1) See Note 9 for further information concerning the terms of the Company's share-based compensation plans. Subsequent to the end of the year and through February 26, 2016 , the Company repurchased 0.8 million shares of its common stock, at an average price of $247.61 , for a total investment of $201.6 million . |
Legal Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2015 | |
Loss Contingency [Abstract] | |
Legal matters | NOTE 14 – LEGAL MATTERS As previously reported, 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. The Company expects the District Attorney will seek injunctive and monetary relief. 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 although the Company has accrued all amounts that it believes to be probable and reasonably estimable and does not believe that the ultimate resolution of this matter will have a material adverse effect on its consolidated financial position, results of operations or cash flows. As previously reported, on June 18, 2015, a jury in Greene County, Missouri returned an unfavorable verdict in a litigated contract dispute in the matter Meridian Creative Alliance vs. O'Reilly Automotive Stores, Inc. et. al. in the amount of $12.5 million . The Company strongly believes that the verdict was unjust and unsupported by the law and the underlying facts and, further, that there are several potential bases for reversal on appeal. The Company is vigorously challenging the verdict in the Court of Appeals. As of December 31, 2015 , the Company had reserved $18.8 million with respect to this matter. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly results (unaudited) | NOTE 15 – QUARTERLY RESULTS (Unaudited) The following tables set forth certain quarterly unaudited operating data for the fiscal years ended December 31, 2015 and 2014 . The unaudited quarterly information includes all adjustments, which the Company considers necessary for a fair presentation of the information shown (in thousands, except per share data): Fiscal 2015 First Second Third Fourth Sales $ 1,901,903 $ 2,035,518 $ 2,080,201 $ 1,949,052 Gross profit 986,959 1,058,791 1,089,254 1,027,639 Operating income 350,373 385,768 415,260 362,620 Net income 212,864 233,508 266,268 218,576 Earnings per share – basic (1) $ 2.09 $ 2.32 $ 2.68 $ 2.22 Earnings per share – assuming dilution (1) $ 2.06 $ 2.29 $ 2.64 $ 2.19 Fiscal 2014 First Second Third Fourth 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 $ 2.10 $ 1.79 Earnings per share – assuming dilution (1) $ 1.61 $ 1.91 $ 2.06 $ 1.76 (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 amount. 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 Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
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 Beginning of Period Additions - Charged to Costs and Expenses Additions - Charged to Other Accounts - Describe Deductions - Describe Balance at End of Period Sales and returns allowances: For the year ended December 31, 2015 $ 6,855 $ 1,123 $ — $ — $ 7,978 For the year ended December 31, 2014 6,500 355 — — 6,855 For the year ended December 31, 2013 $ 7,326 $ (826 ) $ — $ — $ 6,500 Allowance for doubtful accounts: For the year ended December 31, 2015 $ 8,713 $ 7,119 $ — $ 6,195 (1) $ 9,637 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 (1) Uncollectable accounts written off. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of significant accounting policies | |
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, 2015 , the Company owned and operated 4,571 stores in 44 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 an effect on previously reported totals for assets and liabilities but had no effect on reported totals for 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 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 $1.1 million and $1.0 million as of December 31, 2015 and 2014 , respectively. 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 | 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, 2015 or 2014 . |
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 $2.63 billion and $2.56 billion as of December 31, 2015 and 2014 , respectively. LIFO costs exceeded replacement costs by $85.9 million and $61.4 million at December 31, 2015 and 2014 , respectively. |
Fair value of financial instruments | Fair value of financial instruments: 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. |
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 $17.3 million and $17.5 million at December 31, 2015 and 2014 , respectively. The notes receivable, which do not bear interest, are due in varying amounts through March 2023 . 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, 2015 or 2014 . |
Goodwill and other intangibles | Goodwill and other intangibles: The accompanying Consolidated Balance Sheets at December 31, 2015 and 2014 , 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 2015 and 2014 , 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, 2015 and 2014 ; as such, no goodwill impairment adjustment was required as of December 31, 2015 and 2014 . Finite-lived intangibles are carried at cost and 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 charges to its long-lived assets and the Company did not record a material impairment charge to its long-lived assets during the year ended December 31, 2015 or 2014 . |
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 for further information concerning the Company's benefit plans. 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, 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, 2015 and 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 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. |
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. The Company maintains a retail loyalty program named O'Reilly O'Rewards, designed to build brand recognition. The program allows a retail customer to enroll at no charge, does not impose a membership fee and provides members with the ability to earn loyalty points by making qualifying purchases at the Company's stores. Upon reaching established thresholds, the members are automatically issued coupons, which expire 90 days after issuance, have no cash value and may be redeemed for most items in the Company's stores with a total purchase price equal to or greater than the value of the coupon. Points accrued in a member's account, which have not been awarded to the member with a coupon, expire 12 months after the date in which they were earned. The Company records a deferred revenue liability, based on a breakage adjusted estimated redemption rate, and a corresponding reduction in revenue in periods when loyalty points are earned by members. The Company recognizes revenue and a corresponding reduction to the deferred revenue liability in periods when loyalty program issued coupons are redeemed by members. As of December 31, 2015 , the Company had recorded a deferred revenue liability of $7.2 million related to its loyalty program, which was included as a component of "Other liabilities" in the accompanying Consolidated Balance Sheets, and during the year ended December 31, 2015 , the Company recognized $11.2 million of deferred revenue related to its loyalty program. As of December 31, 2014 , the Company recorded a deferred revenue liability of $4.3 million related to its loyalty program, which was included as a component of "Other liabilities" in the accompanying Consolidated Balance Sheets, and during the year ended December 31, 2014 , the Company recognized $5.6 million of deferred revenue related to its loyalty program. |
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 $79.3 million , $79.0 million and $78.3 million for the years ended December 31, 2015 , 2014 and 2013 , 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 and director stock plan, stock issued through the Company's employee stock purchase plan and restricted 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, 2015 , 2014 and 2013 , were $7.4 million , $11.5 million and $10.6 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. Debt issuance costs related to the Company's long-term senior notes are recorded as a reduction of the principal amount of the corresponding senior notes. Debt issuance costs related to the Company's unsecured revolving credit facility are recorded as an asset. 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 $8.3 million and $9.9 million , net of accumulated amortization, as of December 31, 2015 and 2014 , respectively, of which $1.2 million and $1.7 million were included within "Other assets, net" as of December 31, 2015 and 2014 , respectively, with the remainder included within "Long-term debt, less current portion" on the accompanying Consolidated Balance Sheets. 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 $2.9 million and $3.4 million as of December 31, 2015 and 2014 , 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, 2015 and 2014 , 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 (the "FASB") issued Accounting Standard Update ("ASU") 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. In August of 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" ("ASU 2015-14"), to defer the effective date of ASU 2014-09 by one year. Originally, for public companies, ASU 2014-09 was effective for annual reporting periods beginning after December 15, 2016, including periods within that reporting period, and could be adopted either retrospectively or as a cumulative effect adjustment at the date of adoption, with early adoption not permitted. For public companies, ASU 2015-14 changes ASU 2014-09 to be effective for annual reporting periods beginning after December 15, 2017, including periods within that reporting period, and can be adopted retrospectively or as a cumulative effective adjustment at the date of adoption, with early adoption allowed, but not before ASU 2014-09's original effective date of December 15, 2016. The Company will adopt this guidance beginning with its first quarter ending March 31, 2018. 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, and which method of adoption is most appropriate for the Company. In January of 2015, the FASB issued ASU No. 2015-01, "Extraordinary and Unusual Items (Subtopic 225-20)" ("ASU 2015-01"). ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items; such that, an entity will no longer need to assess whether a particular event or transaction event is extraordinary. ASU 2015-01 is effective for annual reporting periods beginning after December 15, 2015, including periods within that reporting period, and early adoption is permitted. The Company will adopt this guidance beginning with its first quarter ending March 31, 2016. The application of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In April of 2015, the FASB issued ASU No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30)" ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August of 2015, the FASB issued ASU 2015-15, "Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to St aff Announcement at June 18, 2015, EITF Meeting" ("ASU 2015-15"), to update ASU 2015-03 to reflect an SEC clarification. ASU 2015-15 allows an entity, in the case of a line-of-credit arrangement, to either follow ASU 2015-03 or defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratable over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including periods within that reporting period, requires retrospective application, and early adoption is permitted. The Company early-adopted ASU 2015-03 and ASU 2015-15 as of December 31, 2015, and applied the requirements of the updates retrospectively. With the adoption of ASU 2015-15, the Company opted to defer and present debt issuance costs related to its unsecured revolving credit facility as an asset and subsequently amortize the deferred debt issuance costs ratable over the term of the unsecured revolving credit facility. The adoption of ASU 2015-03 resulted in the reclassification of $7.1 million and $8.2 million of unamortized debt issuance costs related to the Company's senior notes from "Other current assets" or "Other assets, net" to "Long-term debt, less current portion" within the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014, respectively. The adoption of ASU 2015-15 resulted in the reclassification of $0.5 million of unamortized debt issuance costs related to the Company's unsecured revolving credit facility from "Other current assets" to "Other assets, net" within the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014. Other than these reclassifications, the adoption of ASU 2015-03 and ASU 2015-15 did not have an impact on the Company's consolidated financial condition, results of operations or cash flows. In November of 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"). ASU 2015-17 simplifies the presentation of deferred income taxes and requires that deferred tax liabilities and assets be classified as noncurrent in the balance sheet. ASU 2015-17 is effective for annual reporting periods beginning after December 15, 2016, including periods within that reporting period, allows for prospective or retrospective application, and early adoption is permitted. The Company early-adopted ASU 2015-17 as of December 31, 2015, and applied the requirements of the update retrospectively. The adoption of ASU 2015-17 resulted in the reclassification of $7.4 million and $17.3 million of deferred income tax liabilities from the current liability "Deferred income taxes" to other long-term liabilities "Deferred income taxes" within the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014, respectively. Other than this reclassification, the adoption of ASU 2015-17 did not have an impact on the Company's consolidated financial condition, results of operations or cash flows. In February of 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company will adopt this guidance beginning with its first quarter ending March 31, 2019. The Company is in the process of evaluating the future impact of ASU 2016-02 on its consolidated financial position, results of operations and cash flows. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Policy Text Block [Abstract] | |
Components of self-insurance reserves | December 31, 2015 2014 Self-insurance reserves (undiscounted) $ 141,173 $ 132,879 Self-insurance reserves (discounted) 131,990 123,276 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Valuation of marketable securities | December 31, 2015 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Marketable securities $ 16,895 $ — $ — $ 16,895 December 31, 2014 Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Marketable securities $ 15,378 $ — $ — $ 15,378 |
Valuation of senior notes | December 31, 2015 December 31, 2014 Carrying Amount Estimated Fair Value Carrying Amount (1) Estimated Fair Value $500 million, 4.875% Senior Notes due 2021 $ 495,951 $ 542,078 $ 495,144 $ 566,700 $300 million, 4.625% Senior Notes due 2021 298,396 319,620 298,113 337,222 $300 million, 3.800% Senior Notes due 2022 297,535 303,595 297,215 310,749 $300 million, 3.850% Senior Notes due 2023 $ 298,136 $ 302,468 $ 297,925 $ 311,656 (1) Prior period amounts have been reclassified to conform to current period presentation, due to the Company's adoption of new accounting standards during the fourth quarter ended December 31, 2015, see Note 1 for further information. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, including original useful lives | Original Useful Lives December 31, 2015 December 31, 2014 Land $ 590,244 $ 527,471 Buildings and building improvements 15 – 39 years 1,603,389 1,418,479 Leasehold improvements 3 – 25 years 554,198 523,550 Furniture, fixtures and equipment 3 – 20 years 1,108,127 1,052,846 Vehicles 5 – 10 years 313,401 279,874 Construction in progress 202,891 191,289 Total property and equipment 4,372,250 3,993,509 Less: accumulated depreciation and amortization 1,510,694 1,334,949 Net property and equipment $ 2,861,556 $ 2,658,560 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in goodwill | 2015 2014 Goodwill, balance at January 1, $ 756,384 $ 756,225 Change in goodwill 758 159 Goodwill, balance at December 31, $ 757,142 $ 756,384 |
Amortizable intangibles | Cost of Amortizable Accumulated Amortization (Expense) Benefit Net Amortizable Intangibles December 31, December 31, December 31, December 31, December 31, December 31, Amortizable intangible assets: Favorable leases $ 32,070 $ 49,780 $ (19,991 ) $ (35,145 ) $ 12,079 $ 14,635 Non-compete agreements 732 617 (409 ) (344 ) 323 273 Total amortizable intangible assets $ 32,802 $ 50,397 $ (20,400 ) $ (35,489 ) $ 12,402 $ 14,908 Unfavorable leases $ 28,580 $ 49,200 $ 22,415 $ 40,263 $ 6,165 $ 8,937 |
Estimated net amortization of intangibles | December 31, 2015 Amortization Expense Amortization Benefit Total Amortization Expense 2016 $ (2,336 ) $ 2,055 $ (281 ) 2017 (1,920 ) 1,493 (427 ) 2018 (1,457 ) 923 (534 ) 2019 (1,235 ) 712 (523 ) 2020 (1,054 ) 541 (513 ) Total $ (8,002 ) $ 5,724 $ (2,278 ) |
Financing (Tables)
Financing (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Outstanding financing facilities | December 31, 2015 2014 (1) Revolving Credit Facility $ — $ — $500 million, 4.875% Senior Notes due 2021 (2) , effective interest rate of 4.963% 495,951 495,144 $300 million, 4.625% Senior Notes due 2021 (3) , effective interest rate of 4.647% 298,396 298,113 $300 million, 3.800% Senior Notes due 2022 (4) , effective interest rate of 3.845% 297,535 297,215 $300 million, 3.850% Senior Notes due 2023 (5) , effective interest rate of 3.851% $ 298,136 $ 297,925 (1) Prior period amounts have been reclassified to conform to current period presentation, due to the Company's adoption of new accounting standards during the fourth quarter ended December 31, 2015, see Note 1 for further information. (2) Net of unamortized discount of $1.8 million and $2.1 million as of December 31, 2015 and 2014 , respectively, and debt issuance costs of $2.3 million and $2.7 million as of December 31, 2015 and 2014 , respectively. (3) Net of unamortized discount of $0.3 million and $0.4 million as of December 31, 2015 and 2014 , respectively, and debt issuance costs of $1.3 million and $1.5 million as of December 31, 2015 and 2014 , respectively. (4) Net of unamortized discount of $0.8 million and $0.9 million as of December 31, 2015 and 2014 , respectively, and debt issuance costs of $1.7 million and $1.9 million as of December 31, 2015 and 2014 , respectively. (5) Net of unamortized discount of less than $0.1 million as of December 31, 2015 and 2014 , and debt issuance costs of $1.8 million and $2.1 million as of December 31, 2015 and 2014 , respectively. |
Leasing (Tables)
Leasing (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future minimum lease payments for operating leases | December 31, 2015 Related Parties Non-Related Parties Total 2016 $ 4,659 $ 255,156 $ 259,815 2017 4,527 246,114 250,641 2018 4,318 228,799 233,117 2019 2,823 207,827 210,650 2020 2,039 185,969 188,008 Thereafter 7,152 983,141 990,293 Total $ 25,518 $ 2,107,006 $ 2,132,524 |
Schedule of net rent expense | For the Year Ended 2015 2014 2013 Minimum operating lease expense $ 263,479 $ 254,565 $ 247,039 Contingent rents 947 759 701 Other lease related occupancy costs 12,852 11,688 11,257 Total rent expense 277,278 267,012 258,997 Less: sublease income 4,019 3,984 4,105 Net rent expense $ 273,259 $ 263,028 $ 254,892 |
Warranties (Tables)
Warranties (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Product warranty liabilities | 2015 2014 Warranty liabilities, balance at January 1, $ 34,226 $ 33,386 Warranty claims (61,819 ) (52,297 ) Warranty accruals 62,816 53,137 Warranty liabilities, balance at December 31, $ 35,223 $ 34,226 |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Proceeds from (Repurchase of) Equity [Abstract] | |
Schedule of shares repurchased | For the Year Ended 2015 2014 Shares repurchased 4,901 5,743 Average price per share $ 231.81 $ 150.86 Total investment $ 1,136,139 $ 866,398 |
Share-Based Compensation and 32
Share-Based Compensation and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-Based Compensation and Benefit Plans | |
Summary of shares authorized and available for future issuance under compensation and benefit plans | December 31, 2015 Plans Total Shares Authorized for Issuance under the Plans Shares Available for Future Issuance under the Plans Employee Incentive Plans 34,000 6,334 Director Stock Plan 1,000 263 Performance Incentive Plan 650 383 Employee Stock Purchase Plans 4,250 764 Profit Sharing and Savings Plan 4,200 349 |
Restricted stock [Member] | |
Share-Based Compensation and Benefit Plans | |
Summary of activity of share-based compensation and benefit plans | For the Year Ended 2015 2014 2013 Compensation expense for restricted shares awarded $ 1,625 $ 2,621 $ 2,191 Income tax benefit from compensation expense related to restricted shares $ 610 $ 970 $ 836 Total fair value of restricted shares at vest date $ 3,284 $ 3,749 $ 3,294 Shares awarded under the plans 4 16 22 Weighted-average grant-date fair value of shares awarded under the plans $ 208.56 $ 147.23 $ 102.63 |
Employee stock purchase plan [Member] | |
Share-Based Compensation and Benefit Plans | |
Summary of ESPP plan activity | For the Year Ended 2015 2014 2013 Compensation expense for shares issued under the ESPP $ 2,065 $ 1,769 $ 1,695 Income tax benefit from compensation expense for shares issued under the ESPP $ 773 $ 655 $ 647 Shares issued under the ESPP 60 77 101 Weighted-average price of shares issued under the ESPP $ 195.04 $ 130.12 $ 95.51 |
Employee [Member] | Restricted stock [Member] | |
Share-Based Compensation and Benefit Plans | |
Summary of restricted stock | Shares Weighted-Average Grant-Date Fair Value Non-vested at December 31, 2014 16 $ 123.68 Granted during the period 2 192.65 Vested during the period (1) (10 ) 87.59 Forfeited during the period (1 ) 129.93 Non-vested at December 31, 2015 7 $ 128.27 (1) Includes four thousand shares withheld to cover employees' taxes upon vesting. |
Director [Member] | Restricted stock [Member] | |
Share-Based Compensation and Benefit Plans | |
Summary of restricted stock | Shares Weighted-Average Grant-Date Fair Value Non-vested at December 31, 2014 8 $ 124.44 Granted during the period 3 217.38 Vested during the period (4 ) 117.31 Forfeited during the period — — Non-vested at December 31, 2015 7 $ 167.73 |
Stock option [Member] | |
Share-Based Compensation and Benefit Plans | |
Black-Scholes option pricing model | December 31, 2015 2014 2013 Risk free interest rate 1.52 % 1.60 % 0.96 % Expected life 5.7 Years 5.3 Years 5.0 Years Expected volatility 22.3 % 24.3 % 31.0 % Expected dividend yield — % — % — % |
Summary of activity of share-based compensation and benefit plans | For the Year Ended 2015 2014 2013 Compensation expense for stock options awarded (in thousands) $ 18,209 $ 18,705 $ 17,836 Income tax benefit from compensation expense related to stock options (in thousands) 6,811 6,923 6,804 Total intrinsic value of stock options exercised (in thousands) 169,248 147,236 95,812 Cash received from exercise of stock options (in thousands) 105,822 59,594 59,745 Weighted-average grant-date fair value of options awarded $ 51.56 $ 38.18 $ 29.98 Weighted-average remaining contractual life of exercisable options 4.2 Years 4.6 Years 4.8 Years |
Stock option [Member] | Employee stock option [Member] | |
Share-Based Compensation and Benefit Plans | |
Summary of stock options | Shares (in thousands) Weighted-Average Exercise Price Average Remaining Contractual Terms Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2014 4,025 $ 64.82 Granted 317 211.64 Exercised (953 ) 54.71 Forfeited (98 ) 93.65 Outstanding at December 31, 2015 3,291 $ 81.04 5.3 Years $ 567,333 Vested or expected to vest at December 31, 2015 3,216 $ 79.75 5.3 Years $ 558,536 Exercisable at December 31, 2015 2,308 $ 52.54 4.2 Years $ 463,671 |
Stock option [Member] | Director [Member] | |
Share-Based Compensation and Benefit Plans | |
Summary of stock options | Shares Weighted-Average Exercise Price Average Remaining Contractual Terms Aggregate Intrinsic Value Outstanding at December 31, 2014 40 $ 39.19 Granted — — Exercised (23 ) 34.80 Forfeited — — Outstanding at December 31, 2015 17 $ 45.13 1.1 Years $ 3,541 Vested or expected to vest at December 31, 2015 17 $ 45.13 1.1 Years $ 3,541 Exercisable at December 31, 2015 17 $ 45.13 1.1 Years $ 3,541 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | December 31, 2015 2014 Deferred tax assets: Allowance for doubtful accounts $ 2,492 $ 2,357 Tax credits 11,747 14,725 Other accruals 151,635 131,436 Net operating losses 337 746 Other 19,051 16,468 Total deferred tax assets 185,262 165,732 Deferred tax liabilities: Inventories 82,313 90,333 Property and equipment 141,930 139,604 Other 40,791 38,217 Total deferred tax liabilities 265,034 268,154 Net deferred tax liabilities $ (79,772 ) $ (102,422 ) |
Schedule of components of the provision for income taxes | For the Year Ended Current Deferred Total Federal income tax expense (benefit) $ 504,558 $ (21,973 ) $ 482,585 State income tax expense (benefit) 47,242 (677 ) 46,565 Net income tax expense (benefit) $ 551,800 $ (22,650 ) $ 529,150 For the Year Ended Current Deferred Total Federal income tax expense $ 399,271 $ 5,987 $ 405,258 State income tax expense (benefit) 43,242 (4,500 ) 38,742 Net income tax expense $ 442,513 $ 1,487 $ 444,000 For the Year Ended Current Deferred Total Federal income tax expense $ 348,303 $ 847 $ 349,150 State income tax expense 38,428 1,072 39,500 Net income tax expense $ 386,731 $ 1,919 $ 388,650 |
Reconciliation of the provision for income taxes to the amounts computed at the federal statutory rate | For the Year Ended 2015 2014 2013 Federal income taxes at statutory rate $ 511,128 $ 427,764 $ 370,632 State income taxes, net of federal tax benefit 32,137 25,320 26,802 Other items, net (14,115 ) (9,084 ) (8,784 ) Total provision for income taxes $ 529,150 $ 444,000 $ 388,650 |
Summary of changes in gross amount of unrecognized tax benefits, excluding interest and penalties | 2015 2014 2013 Unrealized tax benefit, balance at January 1, $ 49,598 $ 50,459 $ 51,004 Additions based on tax positions related to the current year 5,405 4,665 7,046 Additions based on tax positions related to prior years 995 — — Payments related to items settled with taxing authorities (4,012 ) (300 ) (1,056 ) Reductions due to the lapse of statute of limitations and settlements (15,058 ) (5,226 ) (6,535 ) Unrealized tax benefit, balance at December 31, $ 36,928 $ 49,598 $ 50,459 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | For the Year Ended 2015 2014 2013 Numerator (basic and diluted): Net income $ 931,216 $ 778,182 $ 670,292 Denominator: Weighted-average common shares outstanding – basic 99,965 104,262 109,244 Effect of stock options (1) 1,549 1,779 1,857 Weighted-average common shares outstanding – assuming dilution 101,514 106,041 111,101 Earnings per share: Earnings per share-basic $ 9.32 $ 7.46 $ 6.14 Earnings per share-assuming dilution $ 9.17 $ 7.34 $ 6.03 Antidilutive potential common shares not included in the calculation of diluted earnings per share: Stock options (1) 245 363 498 Weighted-average exercise price per share of antidilutive stock options (1) $ 216.29 $ 151.65 $ 103.80 (1) See Note 9 for further information concerning the terms of the Company's share-based compensation plans. |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly operating data (unaudited) | Fiscal 2015 First Second Third Fourth Sales $ 1,901,903 $ 2,035,518 $ 2,080,201 $ 1,949,052 Gross profit 986,959 1,058,791 1,089,254 1,027,639 Operating income 350,373 385,768 415,260 362,620 Net income 212,864 233,508 266,268 218,576 Earnings per share – basic (1) $ 2.09 $ 2.32 $ 2.68 $ 2.22 Earnings per share – assuming dilution (1) $ 2.06 $ 2.29 $ 2.64 $ 2.19 Fiscal 2014 First Second Third Fourth 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 $ 2.10 $ 1.79 Earnings per share – assuming dilution (1) $ 1.61 $ 1.91 $ 2.06 $ 1.76 (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 amount. |
Schedule II - Valuation and Q36
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and qualifying accounts | Description Balance at Beginning of Period Additions - Charged to Costs and Expenses Additions - Charged to Other Accounts - Describe Deductions - Describe Balance at End of Period Sales and returns allowances: For the year ended December 31, 2015 $ 6,855 $ 1,123 $ — $ — $ 7,978 For the year ended December 31, 2014 6,500 355 — — 6,855 For the year ended December 31, 2013 $ 7,326 $ (826 ) $ — $ — $ 6,500 Allowance for doubtful accounts: For the year ended December 31, 2015 $ 8,713 $ 7,119 $ — $ 6,195 (1) $ 9,637 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 (1) Uncollectable accounts written off. |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)storesstatesRate | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Summary of significant accounting policies | ||||
Number of stores | stores | 4,571 | |||
Number of states in which the Company operates | states | 44 | |||
Accounts receivable due from employees to the Company | $ 1,100 | $ 1,000 | ||
Allowance for doubtful supplier receivables | 0 | 0 | ||
Replacement cost of inventory | 2,630,000 | 2,560,000 | ||
LIFO inventory value in excess of replacement cost of inventory | 85,900 | 61,400 | ||
Notes receivable from suppliers and other third parties | 17,300 | 17,500 | ||
Reserve for uncollectable notes receivables | $ 0 | 0 | ||
Note receivable interest rate | Rate | 0.00% | |||
Goodwill impairment | $ 0 | 0 | ||
Impairment of long-lived assets | 0 | 0 | ||
Self-insurance reserves, current | 72,741 | 64,882 | [1] | |
Advertising expense, net | 79,300 | 79,000 | $ 78,300 | |
Total interest costs capitalized | 7,400 | 11,500 | $ 10,600 | |
Deferred debt issuance costs, net of amortization | 8,300 | 9,900 | ||
Deferred debt issuance costs, net of amortization, noncurrent | 1,200 | 1,700 | ||
Original issuance discounts, net of accretion | 2,900 | 3,400 | ||
Valuation allowance for deferred tax assets | 0 | 0 | ||
Deferred income tax liabilities | 79,772 | 102,422 | ||
Balance Sheet reclassification [Member] | ||||
Summary of significant accounting policies | ||||
Unamortized debt issuance costs, senior notes | 7,100 | 8,200 | ||
Deferred income tax liabilities | 7,400 | 17,300 | ||
Line of credit facility [Member] | Balance Sheet reclassification [Member] | ||||
Summary of significant accounting policies | ||||
Deferred debt issuance costs, net of amortization | 500 | 500 | ||
Loyalty program [Member] | ||||
Summary of significant accounting policies | ||||
Deferred revenue, loyalty program | 7,200 | 4,300 | ||
Deferred revenue recognized, loyalty program | $ 11,200 | $ 5,600 | ||
[1] | Certain prior period amounts have been reclassified to conform to current period presentation. See Note 1 "Summary of Significant Accounting Policies" to the Consolidated Financial Statements for more information. |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Components of Self-Insurance Reserves) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Policy Text Block [Abstract] | ||
Self-insurance reserves (undiscounted) | $ 141,173 | $ 132,879 |
Self-insurance reserves (discounted) | $ 131,990 | $ 123,276 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Decrease in fair value of marketable securities | $ 200 | |
Non-financial assets and liabilities measured at fair value on a nonrecurring basis | $ 0 | $ 0 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Marketable Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Measurements | ||
Estimated fair value of marketable securities | $ 16,895 | $ 15,378 |
Fair value, inputs, Level 1 [Member] | ||
Fair Value Measurements | ||
Estimated fair value of marketable securities | 16,895 | 15,378 |
Fair value, inputs, Level 2 [Member] | ||
Fair Value Measurements | ||
Estimated fair value of marketable securities | 0 | 0 |
Fair value, inputs, Level 3 [Member] | ||
Fair Value Measurements | ||
Estimated fair value of marketable securities | $ 0 | $ 0 |
Fair Value Measurements (Fair41
Fair Value Measurements (Fair Value of Senior Notes) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
$500 million, 4.875% Senior Notes due 2021 [Member] | |||
Fair Value Measurements | |||
Carrying amount of senior notes | $ 495,951 | $ 495,144 | [1] |
$500 million, 4.875% Senior Notes due 2021 [Member] | Fair value, inputs, Level 2 [Member] | |||
Fair Value Measurements | |||
Estimated fair value of senior notes | 542,078 | 566,700 | |
$300 million, 4.625% Senior Notes due 2021 [Member] | |||
Fair Value Measurements | |||
Carrying amount of senior notes | 298,396 | 298,113 | [1] |
$300 million, 4.625% Senior Notes due 2021 [Member] | Fair value, inputs, Level 2 [Member] | |||
Fair Value Measurements | |||
Estimated fair value of senior notes | 319,620 | 337,222 | |
$300 million, 3.800% Senior Notes due 2022 [Member] | |||
Fair Value Measurements | |||
Carrying amount of senior notes | 297,535 | 297,215 | [1] |
$300 million, 3.800% Senior Notes due 2022 [Member] | Fair value, inputs, Level 2 [Member] | |||
Fair Value Measurements | |||
Estimated fair value of senior notes | 303,595 | 310,749 | |
$300 million, 3.850% Senior Notes due 2023 [Member] | |||
Fair Value Measurements | |||
Carrying amount of senior notes | 298,136 | 297,925 | [1] |
$300 million, 3.850% Senior Notes due 2023 [Member] | Fair value, inputs, Level 2 [Member] | |||
Fair Value Measurements | |||
Estimated fair value of senior notes | $ 302,468 | $ 311,656 | |
[1] | Prior period amounts have been reclassified to conform to current period presentation, due to the Company's adoption of new accounting standards during the fourth quarter ended December 31, 2015, see Note 1 for further information. |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property and Equipment | |||
Depreciation and amortization expense | $ 210,256 | $ 194,205 | $ 183,180 |
Property and equipment [Member] | |||
Property and Equipment | |||
Depreciation and amortization expense | $ 203,400 | $ 193,400 | $ 183,200 |
Property and Equipment (Propert
Property and Equipment (Property and Equipment, Including Original Useful Lives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Property and Equipment | |||
Property and equipment | $ 4,372,250 | $ 3,993,509 | [1] |
Less: accumulated depreciation and amortization | 1,510,694 | 1,334,949 | [1] |
Net property and equipment | 2,861,556 | 2,658,560 | [1] |
Land [Member] | |||
Property and Equipment | |||
Property and equipment | 590,244 | 527,471 | |
Buildings and building improvements [Member] | |||
Property and Equipment | |||
Property and equipment | $ 1,603,389 | 1,418,479 | |
Buildings and building improvements [Member] | Minimum [Member] | |||
Property and Equipment | |||
Property, plant and equipment, useful lives | 15 years | ||
Buildings and building improvements [Member] | Maximum [Member] | |||
Property and Equipment | |||
Property, plant and equipment, useful lives | 39 years | ||
Leasehold improvements [Member] | |||
Property and Equipment | |||
Property and equipment | $ 554,198 | 523,550 | |
Leasehold improvements [Member] | Minimum [Member] | |||
Property and Equipment | |||
Property, plant and equipment, useful lives | 3 years | ||
Leasehold improvements [Member] | Maximum [Member] | |||
Property and Equipment | |||
Property, plant and equipment, useful lives | 25 years | ||
Furniture, fixtures and equipment [Member] | |||
Property and Equipment | |||
Property and equipment | $ 1,108,127 | 1,052,846 | |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |||
Property and Equipment | |||
Property, plant and equipment, useful lives | 3 years | ||
Furniture, fixtures and equipment [Member] | Maximum [Member] | |||
Property and Equipment | |||
Property, plant and equipment, useful lives | 20 years | ||
Vehicles [Member] | |||
Property and Equipment | |||
Property and equipment | $ 313,401 | 279,874 | |
Vehicles [Member] | Minimum [Member] | |||
Property and Equipment | |||
Property, plant and equipment, useful lives | 5 years | ||
Vehicles [Member] | Maximum [Member] | |||
Property and Equipment | |||
Property, plant and equipment, useful lives | 10 years | ||
Construction in Progress [Member] | |||
Property and Equipment | |||
Property and equipment | $ 202,891 | $ 191,289 | |
[1] | Certain prior period amounts have been reclassified to conform to current period presentation. See Note 1 "Summary of Significant Accounting Policies" to the Consolidated Financial Statements for more information. |
Goodwill and Other Intangible44
Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Other Intangibles | |||
Goodwill increase | $ 758 | $ 159 | |
Goodwill impairment | 0 | 0 | |
Indefinite-lived intangible assets, other than goodwill | 0 | 0 | |
Amortization expense of amortizable intangible assets | $ 2,700 | 3,900 | $ 4,000 |
Favorable Leases [Member] | |||
Goodwill and Other Intangibles | |||
Weighted-average remaining useful life of favorable leases | 9 years 1 month 18 days | ||
Unfavorable Leases [Member] | |||
Goodwill and Other Intangibles | |||
Weighted-average remaining useful life of unfavorable leases | 4 years 1 month 23 days | ||
Amortization benefit of unfavorable operating leases | $ 2,800 | $ 3,700 | $ 4,500 |
Goodwill and Other Intangible45
Goodwill and Other Intangibles (Changes in Net Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill, beginning balance | $ 756,384 | [1] | $ 756,225 | |
Change in goodwill | 758 | 159 | ||
Goodwill, ending balance | $ 757,142 | $ 756,384 | [1] | |
[1] | Certain prior period amounts have been reclassified to conform to current period presentation. See Note 1 "Summary of Significant Accounting Policies" to the Consolidated Financial Statements for more information. |
Goodwill and Other Intangible46
Goodwill and Other Intangibles (Amortizable Intangibles) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortizable Intangibles | ||
Amortizable intangible assets, cost | $ 32,802 | $ 50,397 |
Amortizable intangible assets, accumulated amortization expense | (20,400) | (35,489) |
Net amortizable intangible assets | 12,402 | 14,908 |
Favorable Leases [Member] | ||
Amortizable Intangibles | ||
Amortizable intangible assets, cost | 32,070 | 49,780 |
Amortizable intangible assets, accumulated amortization expense | (19,991) | (35,145) |
Net amortizable intangible assets | 12,079 | 14,635 |
Noncompete Agreements [Member] | ||
Amortizable Intangibles | ||
Amortizable intangible assets, cost | 732 | 617 |
Amortizable intangible assets, accumulated amortization expense | (409) | (344) |
Net amortizable intangible assets | 323 | 273 |
Unfavorable Leases [Member] | ||
Amortizable Intangibles | ||
Amortizable intangibles, cost | 28,580 | 49,200 |
Amortizable intangibles, accumulated amortization benefit | 22,415 | 40,263 |
Net amortizable intangibles | $ 6,165 | $ 8,937 |
Goodwill and Other Intangible47
Goodwill and Other Intangibles (Estimated Amortization of Intangibles) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2016 amortization expense | $ (2,336) |
2017 amortization expense | (1,920) |
2018 amortization expense | (1,457) |
2019 amortization expense | (1,235) |
2020 amortization expense | (1,054) |
Total amortization expense | (8,002) |
2016 amortization benefit | 2,055 |
2017 amortization benefit | 1,493 |
2018 amortization benefit | 923 |
2019 amortization benefit | 712 |
2020 amortization benefit | 541 |
Total amortization benefit | 5,724 |
2016 amortization, net | (281) |
2017 amortization, net | (427) |
2018 amortization, net | (534) |
2019 amortization, net | (523) |
2020 amortization, net | (513) |
Total amortization, net | $ (2,278) |
Financing Financing (Principal
Financing Financing (Principal Maturities of Financing Facilities) (Narrative) (Details) $ in Billions | Dec. 31, 2015USD ($) |
Maturities of Long-term Debt [Abstract] | |
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 within 2020 | 0 |
Principal maturities of financing facilities scheduled thereafter | $ 1.4 |
Financing (Unsecured Revolving
Financing (Unsecured Revolving Credit Facility) (Narrative) (Details) - Line of credit facility [Member] - Unsecured debt [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Unsecured Revolving Credit Facility | ||
Credit agreement description | 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, and as further amended by Amendment No. 3 dated as of June 18, 2015 (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 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. | |
Credit agreement inception date | Jan. 14, 2011 | |
Current maximum borrowing capacity under credit facility | $ 600 | |
Line of credit facility expiration date | Jul. 2, 2018 | |
Maximum aggregate increase to credit facility allowable | $ 200 | |
Letters of credit | 37.5 | $ 47.9 |
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 2.50 times, and a maximum consolidated leverage ratio of 3.00 times. 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 | 0.125% | |
Line of credit facility covenant compliance | As of December 31, 2015, the Company remained in compliance with all covenants under the Credit Agreement. | |
Spread over Base rate [Member] | ||
Unsecured Revolving Credit Facility | ||
Line of credit current interest rate | 0.00% | |
Spread over Eurodollar rate [Member] | ||
Unsecured Revolving Credit Facility | ||
Line of credit current interest rate | 0.875% | |
Through maturity [Member] | ||
Unsecured Revolving Credit Facility | ||
Minimum debt instrument consolidated fixed charge coverage ratio covenant | 250.00% | |
Maximum debt instrument consolidated leverage ratio covenant | 300.00% | |
Amendment one [Member] | ||
Unsecured Revolving Credit Facility | ||
Credit agreement amendment date | Sep. 9, 2011 | |
Amendment two [Member] | ||
Unsecured Revolving Credit Facility | ||
Credit agreement amendment date | Jul. 2, 2013 | |
Amendment three [Member] | ||
Unsecured Revolving Credit Facility | ||
Credit agreement amendment date | Jun. 18, 2015 | |
Letter of credit [Member] | ||
Unsecured Revolving Credit Facility | ||
Line of credit facility sublimit | $ 200 | |
Swing line revolver [Member] | ||
Unsecured Revolving Credit Facility | ||
Line of credit facility sublimit | $ 75 |
Financing (Senior Notes) (Narra
Financing (Senior Notes) (Narrative) (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2015USD ($)dRate | |
Debt Disclosure [Abstract] | |
Unsecured senior notes description | The Company has issued $1.4 billion aggregate principal amount of unsecured senior notes due between January 2021 and June 2023 with United Missouri Bank, N.A. as trustee. Interest on the senior notes, ranging from 3.800% to 4.875%, is payable semi-annually and is computed on the basis of a 360-day year. |
Aggregate principle of unsecured senior notes | $ | $ 1.4 |
Maturity date range, minimum | Jan. 14, 2021 |
Maturity date range, maximum | Jun. 20, 2023 |
Interest rate of notes, minimum | 3.80% |
Interest rate of notes, maximum | 4.875% |
Number of days in annual interest calculation period | d | 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, 2015. |
Financing (Outstanding Financin
Financing (Outstanding Financing Facilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing | |||
Revolving Credit Facility | $ 0 | $ 0 | |
Senior notes, unamortized discount | 2,900 | 3,400 | |
$500 million, 4.875% Senior Notes due 2021 [Member] | |||
Financing | |||
Senior notes | 495,951 | 495,144 | [1] |
Senior notes, unamortized discount | 1,800 | 2,100 | |
Senior notes, unamortized debt issuance costs | $ 2,300 | 2,700 | |
Senior notes, effective interest rate | 4.963% | ||
$300 million, 4.625% Senior Notes due 2021 [Member] | |||
Financing | |||
Senior notes | $ 298,396 | 298,113 | [1] |
Senior notes, unamortized discount | 300 | 400 | |
Senior notes, unamortized debt issuance costs | $ 1,300 | 1,500 | |
Senior notes, effective interest rate | 4.647% | ||
$300 million, 3.800% Senior Notes due 2022 [Member] | |||
Financing | |||
Senior notes | $ 297,535 | 297,215 | [1] |
Senior notes, unamortized discount | 800 | 900 | |
Senior notes, unamortized debt issuance costs | $ 1,700 | 1,900 | |
Senior notes, effective interest rate | 3.845% | ||
$300 million, 3.850% Senior Notes due 2023 [Member] | |||
Financing | |||
Senior notes | $ 298,136 | 297,925 | [1] |
Senior notes, unamortized discount | 100 | 100 | |
Senior notes, unamortized debt issuance costs | $ 1,800 | $ 2,100 | |
Senior notes, effective interest rate | 3.851% | ||
[1] | Prior period amounts have been reclassified to conform to current period presentation, due to the Company's adoption of new accounting standards during the fourth quarter ended December 31, 2015, see Note 1 for further information. |
Leasing (Narrative) (Details)
Leasing (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating lease [Member] | ||
Leases | ||
Description of lessee leasing arrangements, 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. | |
Future minimum sublease income under non-cancelable subleases | $ 18.8 | |
Capital lease [Member] | Buildings [Member] | ||
Leases | ||
Description of lessee leasing arrangements, capital lease agreements | The Company assumed certain building capital leases in the acquisition of CSK. The only remaining building capital lease agreement expired on April 30, 2015. | |
Present value of future minimum capital lease payments, classified as long-term debt | $ 0.1 | |
Additional acquired capital leases | $ 0 | $ 0 |
Leasing (Future Minimum Lease P
Leasing (Future Minimum Lease Payments for Operating Leases) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases | |
Minimum lease payment within 2016 | $ 259,815 |
Minimum lease payment within 2017 | 250,641 |
Minimum lease payment within 2018 | 233,117 |
Minimum lease payment within 2019 | 210,650 |
Minimum lease payment within 2020 | 188,008 |
Minimum lease payment thereafter | 990,293 |
Total minimum lease payment | 2,132,524 |
Related parties [Member] | |
Operating Leases | |
Minimum lease payment within 2016 | 4,659 |
Minimum lease payment within 2017 | 4,527 |
Minimum lease payment within 2018 | 4,318 |
Minimum lease payment within 2019 | 2,823 |
Minimum lease payment within 2020 | 2,039 |
Minimum lease payment thereafter | 7,152 |
Total minimum lease payment | 25,518 |
Non-related parties [Member] | |
Operating Leases | |
Minimum lease payment within 2016 | 255,156 |
Minimum lease payment within 2017 | 246,114 |
Minimum lease payment within 2018 | 228,799 |
Minimum lease payment within 2019 | 207,827 |
Minimum lease payment within 2020 | 185,969 |
Minimum lease payment thereafter | 983,141 |
Total minimum lease payment | $ 2,107,006 |
Leasing (Net Rent Expense) (Det
Leasing (Net Rent Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leases, Rent Expense, Net [Abstract] | |||
Minimum operating lease expense | $ 263,479 | $ 254,565 | $ 247,039 |
Contingent rents | 947 | 759 | 701 |
Other lease related occupancy costs | 12,852 | 11,688 | 11,257 |
Total rent expense | 277,278 | 267,012 | 258,997 |
Less: sublease income | 4,019 | 3,984 | 4,105 |
Net rent expense | $ 273,259 | $ 263,028 | $ 254,892 |
Warranties (Product Warranty Li
Warranties (Product Warranty Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Product Warranties Disclosures [Abstract] | ||
Warranty liabilities, beginning balance | $ 34,226 | $ 33,386 |
Warranty claims | (61,819) | (52,297) |
Warranty accruals | 62,816 | 53,137 |
Warranty liabilities, ending balance | $ 35,223 | $ 34,226 |
Share Repurchase Program (Narra
Share Repurchase Program (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Feb. 10, 2016 | May. 29, 2015 | Feb. 04, 2015 | Feb. 26, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 26, 2016 |
Share Repurchase Program | |||||||
Increase in authorized amount | $ 500,000 | $ 500,000 | |||||
Authorization effective period | 3 years | 3 years | |||||
Remaining balance under share repurchase program | $ 143,200 | ||||||
Common stock repurchased, shares | 4,901 | 5,743 | |||||
Common stock repurchased, average price per share | $ 231.81 | $ 150.86 | |||||
Common stock repurchased, value | $ 1,136,139 | $ 866,398 | |||||
Subsequent event [Member] | |||||||
Share Repurchase Program | |||||||
Increase in authorized amount | $ 750,000 | ||||||
Cumulative authorized amount | $ 6,300,000 | ||||||
Authorization effective period | 3 years | ||||||
Common stock repurchased, shares | 800 | 52,100 | |||||
Common stock repurchased, average price per share | $ 247.61 | $ 106.76 | |||||
Common stock repurchased, value | $ 201,600 | $ 5,600,000 |
Share Repurchase Program (Sched
Share Repurchase Program (Schedule Of Shares Repurchased) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Proceeds from (Repurchase of) Equity [Abstract] | ||
Shares repurchased | 4,901 | 5,743 |
Average price per share | $ 231.81 | $ 150.86 |
Total investment | $ 1,136,139 | $ 866,398 |
Share-Based Compensation and 58
Share-Based Compensation and Benefit Plans (Stock Option) (Narrative) (Details) - Stock option [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)Rate | |
Share-Based Compensation and Benefit Plans | |
Remaining unrecognized compensation expense | $ | $ 24.2 |
Weighted-average period for cost recognition | 2 years 6 months 12 days |
Employee stock option [Member] | |
Share-Based Compensation and Benefit Plans | |
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 | 10 years |
Options vesting period | 4 years |
Option vesting rate per year | Rate | 25.00% |
Director [Member] | |
Share-Based Compensation and Benefit Plans | |
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 | 7 years |
Options vesting period | 6 months |
Share-Based Compensation and 59
Share-Based Compensation and Benefit Plans (Restricted Stock) (Narrative) (Details) - Restricted stock [Member] shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
Share-Based Compensation and Benefit Plans | |
Remaining unrecognized compensation expense | $ | $ 1.2 |
Weighted-average period for cost recognition | 2 years 2 months 10 days |
Shares withheld to cover employees' taxes upon vesting | shares | 4 |
Employee [Member] | |
Share-Based Compensation and Benefit Plans | |
Restricted stock awards plan description | The Company's performance incentive plans provide 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 these plans is based on the closing market price of the Company's common stock on the date of award and compensation expense is recorded over the minimum required service period. |
Director [Member] | |
Share-Based Compensation and Benefit Plans | |
Restricted stock awards plan description | The Company's director stock plan provides for the award of shares of restricted stock to the directors of the Company 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. |
Share-Based Compensation and 60
Share-Based Compensation and Benefit Plans (Employee Stock Purchase Plan) (Narrative) (Details) - Employee stock purchase plan [Member] | 12 Months Ended |
Dec. 31, 2015Rate | |
Share-Based Compensation and Benefit Plans | |
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. |
Employee stock purchase plan stock purchase percentage | 85.00% |
Share-Based Compensation and 61
Share-Based Compensation and Benefit Plans (Profit Sharing and Savings Plan) (Narrative) (Detail) - Profit sharing and savings plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-Based Compensation and Benefit Plans | |||
Profit sharing and savings plan, description | 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, employer discretionary contribution | $ 0 | $ 0 | $ 0 |
Profit sharing and savings plan, cost recognized | $ 18.5 | $ 16.8 | $ 16.5 |
Employee's first 2% of contributed wages [Member] | |||
Share-Based Compensation and Benefit Plans | |||
Profit sharing and savings plan, Company match | 100.00% | ||
Employee's next 4% of contributed wages [Member] | |||
Share-Based Compensation and Benefit Plans | |||
Profit sharing and savings plan, Company match | 25.00% |
Share-Based Compensation and 62
Share-Based Compensation and Benefit Plans (Nonqualified Deferred Compensation Plan) (Narrative) (Details) - Nonqualified Deferred Compensation Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-Based Compensation and Benefit Plans | |||
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 matched compensation, including salary and incentive based compensation that was precluded under the Company's 401(k) Plan due to the annual limitations, which is then matched by the Company using the same formula as the 401(k) Plan. | ||
Deferred compensation plan obligation | $ 16.9 | $ 15.4 | |
Deferred compensation plan cost recognized | $ 0.1 | $ 0.2 | $ 0.2 |
Share-Based Compensation and 63
Share-Based Compensation and Benefit Plans (Summary of Shares Authorized and Available for Future Issuance Under Benefit and Compensation Plans) (Details) shares in Thousands | Dec. 31, 2015shares |
Profit sharing and savings plan [Member] | |
Share-Based Compensation and Benefit Plans | |
Shares authorized for issuance under compensation and benefit plans | 4,200 |
Shares available for future issuance under compensation and benefit plans | 349 |
Employee stock purchase plan [Member] | |
Share-Based Compensation and Benefit Plans | |
Shares authorized for issuance under compensation and benefit plans | 4,250 |
Shares available for future issuance under compensation and benefit plans | 764 |
Performance shares [Member] | Restricted stock [Member] | |
Share-Based Compensation and Benefit Plans | |
Shares authorized for issuance under compensation and benefit plans | 650 |
Shares available for future issuance under compensation and benefit plans | 383 |
Stock option [Member] | Employee stock option [Member] | |
Share-Based Compensation and Benefit Plans | |
Shares authorized for issuance under compensation and benefit plans | 34,000 |
Shares available for future issuance under compensation and benefit plans | 6,334 |
Stock option [Member] | Director [Member] | |
Share-Based Compensation and Benefit Plans | |
Shares authorized for issuance under compensation and benefit plans | 1,000 |
Shares available for future issuance under compensation and benefit plans | 263 |
Share-Based Compensation and 64
Share-Based Compensation and Benefit Plans (Summary Of Stock Options) (Details) - Stock option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-Based Compensation and Benefit Plans | |||
Exercisable at the end of the year, average remaining contractual term | 4 years 2 months 5 days | 4 years 6 months 21 days | 4 years 9 months 9 days |
Employee stock option [Member] | |||
Share-Based Compensation and Benefit Plans | |||
Outstanding beginning balance, shares | 4,025 | ||
Outstanding at the beginning of the year, weighted-average exercise price | $ 64.82 | ||
Granted, shares | 317 | ||
Granted, weighted-average exercise price | $ 211.64 | ||
Exercised, shares | (953) | ||
Exercised, weighted-average exercise price | $ 54.71 | ||
Forfeited, shares | (98) | ||
Forfeited, weighted-average exercise price | $ 93.65 | ||
Outstanding ending balance, shares | 3,291 | 4,025 | |
Outstanding at the end of the year, weighted-average exercise price | $ 81.04 | $ 64.82 | |
Outstanding at the end of the year, average remaining contractual term | 5 years 4 months 3 days | ||
Outstanding at the end of the year, aggregate intrinsic value | $ 567,333 | ||
Vested or expected to vest at the end of the year, shares | 3,216 | ||
Vested or expected to vest at the end of the year, weighted-average exercise price | $ 79.75 | ||
Vested or expected to vest at the end of the year, average remaining contractual term | 5 years 3 months 13 days | ||
Vested or expected to vest at the end of the year, aggregate intrinsic value | $ 558,536 | ||
Exercisable at the end of the year, shares | 2,308 | ||
Exercisable at the end of the year, weighted-average exercise price | $ 52.54 | ||
Exercisable at the end of the year, average remaining contractual term | 4 years 2 months 13 days | ||
Exercisable at the end of the year, aggregate intrinsic value | $ 463,671 | ||
Director [Member] | |||
Share-Based Compensation and Benefit Plans | |||
Outstanding beginning balance, shares | 40 | ||
Outstanding at the beginning of the year, weighted-average exercise price | $ 39.19 | ||
Granted, shares | 0 | ||
Granted, weighted-average exercise price | $ 0 | ||
Exercised, shares | (23) | ||
Exercised, weighted-average exercise price | $ 34.80 | ||
Forfeited, shares | 0 | ||
Forfeited, weighted-average exercise price | $ 0 | ||
Outstanding ending balance, shares | 17 | 40 | |
Outstanding at the end of the year, weighted-average exercise price | $ 45.13 | $ 39.19 | |
Outstanding at the end of the year, average remaining contractual term | 1 year 19 days | ||
Outstanding at the end of the year, aggregate intrinsic value | $ 3,541 | ||
Vested or expected to vest at the end of the year, shares | 17 | ||
Vested or expected to vest at the end of the year, weighted-average exercise price | $ 45.13 | ||
Vested or expected to vest at the end of the year, average remaining contractual term | 1 year 19 days | ||
Vested or expected to vest at the end of the year, aggregate intrinsic value | $ 3,541 | ||
Exercisable at the end of the year, shares | 17 | ||
Exercisable at the end of the year, weighted-average exercise price | $ 45.13 | ||
Exercisable at the end of the year, average remaining contractual term | 1 year 19 days | ||
Exercisable at the end of the year, aggregate intrinsic value | $ 3,541 |
Share-Based Compensation and 65
Share-Based Compensation and Benefit Plans (Black-Scholes Option Pricing Model) (Details) - Stock option [Member] | 12 Months Ended | ||
Dec. 31, 2015Rate | Dec. 31, 2014Rate | Dec. 31, 2013Rate | |
Share-Based Compensation and Benefit Plans | |||
Risk-free interest rate | 1.52% | 1.60% | 0.96% |
Expected life | 5 years 8 months 11 days | 5 years 3 months 29 days | 5 years |
Expected volatility | 22.30% | 24.30% | 31.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Share-Based Compensation and 66
Share-Based Compensation and Benefit Plans (Stock Option Activity) (Details) - Stock option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-Based Compensation and Benefit Plans | |||
Compensation expense for share-based compensation | $ 18,209 | $ 18,705 | $ 17,836 |
Income tax benefit from compensation expense for share-based compensation | 6,811 | 6,923 | 6,804 |
Total intrinsic value of options exercised | 169,248 | 147,236 | 95,812 |
Cash received from the exercise of stock options | $ 105,822 | $ 59,594 | $ 59,745 |
Weighted-average grant date fair value of options awarded | $ 51.56 | $ 38.18 | $ 29.98 |
Weighted-average remaining contractual life of options currently exercisable | 4 years 2 months 5 days | 4 years 6 months 21 days | 4 years 9 months 9 days |
Share-Based Compensation and 67
Share-Based Compensation and Benefit Plans (Summary of Restricted Stock) (Details) - Restricted stock [Member] - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-Based Compensation and Benefit Plans | ||||
Restricted stock granted during period, weighted-average grant date fair value | $ 208.56 | $ 147.23 | $ 102.63 | |
Employee [Member] | ||||
Share-Based Compensation and Benefit Plans | ||||
Non-vested restricted stock at beginning of the year, weighted-average grant date fair value | 123.68 | |||
Restricted stock granted during period, weighted-average grant date fair value | 192.65 | |||
Restricted stock vested during the period, weighted-average grant date fair value | [1] | 87.59 | ||
Restricted stock forfeited during the period, weighted-average grant date fair value | 129.93 | |||
Non-vested restricted stock at the end of the year, weighted-average grant date fair value | $ 128.27 | $ 123.68 | ||
Employee [Member] | Performance shares [Member] | ||||
Share-Based Compensation and Benefit Plans | ||||
Non-vested restricted stock beginning balance, shares | 16 | |||
Restricted stock granted during the period, shares | 2 | |||
Restricted stock vested during the period, shares | [1] | (10) | ||
Restricted stock forfeited during the period, shares | (1) | |||
Non-vested restricted stock ending balance, shares | 7 | 16 | ||
Director [Member] | ||||
Share-Based Compensation and Benefit Plans | ||||
Non-vested restricted stock at beginning of the year, weighted-average grant date fair value | $ 124.44 | |||
Restricted stock granted during period, weighted-average grant date fair value | 217.38 | |||
Restricted stock vested during the period, weighted-average grant date fair value | 117.31 | |||
Restricted stock forfeited during the period, weighted-average grant date fair value | 0 | |||
Non-vested restricted stock at the end of the year, weighted-average grant date fair value | $ 167.73 | $ 124.44 | ||
Director [Member] | Performance shares [Member] | ||||
Share-Based Compensation and Benefit Plans | ||||
Non-vested restricted stock beginning balance, shares | 8 | |||
Restricted stock granted during the period, shares | 3 | |||
Restricted stock vested during the period, shares | (4) | |||
Restricted stock forfeited during the period, shares | 0 | |||
Non-vested restricted stock ending balance, shares | 7 | 8 | ||
[1] | Includes four thousand shares withheld to cover employees' taxes upon vesting. |
Share-Based Compensation and 68
Share-Based Compensation and Benefit Plans (Restricted Stock Activity) (Details) - Restricted stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-Based Compensation and Benefit Plans | |||
Compensation expense for share-based compensation | $ 1,625 | $ 2,621 | $ 2,191 |
Income tax benefit from compensation expense for share-based compensation | 610 | 970 | 836 |
Total fair value of shares vested, at vest date | $ 3,284 | $ 3,749 | $ 3,294 |
Weighted-average grant-date fair value of shares issued during the period in compensation and benefit plans other than stock options | $ 208.56 | $ 147.23 | $ 102.63 |
Performance shares [Member] | |||
Share-Based Compensation and Benefit Plans | |||
Shares awarded or issued under employee benefit plans, shares | 4 | 16 | 22 |
Share-Based Compensation and 69
Share-Based Compensation and Benefit Plans (Employee Stock Purchase Plan Activity) (Details) - Employee stock purchase plan [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-Based Compensation and Benefit Plans | |||
Compensation expense for shares issued under the ESPP | $ 2,065 | $ 1,769 | $ 1,695 |
Income tax benefit from compensation expense for shares issued under the ESPP | $ 773 | $ 655 | $ 647 |
Shares awarded or issued under employee benefit plans, shares | 60 | 77 | 101 |
Weighted-average grant-date fair value of shares issued during the period in compensation and benefit plans other than stock options | $ 195.04 | $ 130.12 | $ 95.51 |
Commitments (Commitments) (Narr
Commitments (Commitments) (Narrative) (Details) $ in Millions | Dec. 31, 2015USD ($)dRate | Dec. 31, 2014USD ($) |
Commitments | ||
Debt instrument minimum number of days callable | d | 30 | |
Debt instrument maximum number of days callable | d | 60 | |
Percentage principal amount of debt that can be redeemed by the Company | Rate | 100.00% | |
Percentage principal amount of debt redeemable upon change in control | Rate | 101.00% | |
Unsecured debt [Member] | Line of credit facility [Member] | ||
Commitments | ||
Letters of credit | $ | $ 37.5 | $ 47.9 |
Construction [Member] | ||
Commitments | ||
Construction commitments | $ | $ 62.6 |
Related Parties (Narrative) (De
Related Parties (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)storesbulk_facilities | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Related Parties | |||
Number of stores | 4,571 | ||
Related parties [Member] | |||
Related Parties | |||
Number of stores | 75 | ||
Number of bulk facilities | bulk_facilities | 1 | ||
Lease payments under related party operating leases | $ | $ 4.5 | $ 4.6 | $ 4.4 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Narrative) (Details) - State and local jurisdiction [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Taxes | |
Tax credit carryforwards available for state tax purposes, net of federal impact | $ 11.7 |
Net operating loss carryforwards available for state tax purposes | $ 12.5 |
Tax credit carryforwards available for state tax purposes, expiration year | 2,024 |
Earliest tax year [Member] | |
Income Taxes | |
Operating loss carryforwards available for state tax purposes, expiration year | 2,022 |
Latest tax year [Member] | |
Income Taxes | |
Operating loss carryforwards available for state tax purposes, expiration year | 2,028 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | |||
Reserve for unrecognized tax benefits, including interest and penalties | $ 43.6 | $ 58.4 | $ 58.6 |
Amounts that would affect the effective tax rate if recognized | 43.6 | 58.4 | 58.6 |
Federal tax effect for unrecognized tax benefits | 14.9 | ||
Accrual of interest and penalties related to uncertain tax positions | 6.7 | 8.8 | 8.1 |
Tax expense related to an increase in liabilities for interest and penalties | 2.8 | $ 2.8 | $ 2.1 |
Reduction of unrecognized tax benefits due to lapse of statute of limitations and settlements over the next twelve months | $ 10.2 | ||
Other information pertaining to income taxes | The Company's United States federal income tax returns for tax years 2014 and beyond remain subject to examination by the Internal Revenue Service ("IRS"). The IRS concluded an examination of the O'Reilly consolidated 2012 and 2013 federal income tax returns in the second quarter of 2015. The statute of limitations for the Company's federal income tax returns for tax years 2011 and prior expired on September 15, 2015. The statute of limitations for the Company's U.S. federal income tax return for 2012 will expire on September 15, 2016, unless otherwise extended. The IRS is currently conducting an examination of the Company's consolidated returns. The Company's state income tax returns remain subject to examination by various state authorities for tax years ranging from 2004 through 2014. | ||
Open tax year | 2,014 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 2,492 | $ 2,357 |
Tax credits | 11,747 | 14,725 |
Other accruals | 151,635 | 131,436 |
Net operating losses | 337 | 746 |
Other | 19,051 | 16,468 |
Total deferred tax assets | 185,262 | 165,732 |
Deferred tax liabilities: | ||
Inventories | 82,313 | 90,333 |
Property and equipment | 141,930 | 139,604 |
Other | 40,791 | 38,217 |
Total deferred tax liabilities | 265,034 | 268,154 |
Net deferred tax liabilities | $ (79,772) | $ (102,422) |
Income Taxes (Schedule of Com75
Income Taxes (Schedule of Components of the Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Expense (Benefit), Continuing Operations, by Jurisdiction [Abstract] | |||
Federal income tax expense, current | $ 504,558 | $ 399,271 | $ 348,303 |
Federal income tax expense (benefit), deferred | (21,973) | 5,987 | 847 |
Federal income tax expense, total | 482,585 | 405,258 | 349,150 |
State income tax expense, current | 47,242 | 43,242 | 38,428 |
State income tax expense (benefit), deferred | (677) | (4,500) | 1,072 |
State income tax expense, total | 46,565 | 38,742 | 39,500 |
Current income tax expense | 551,800 | 442,513 | 386,731 |
Deferred income tax expense (benefit) | (22,650) | 1,487 | 1,919 |
Provision for income taxes | $ 529,150 | $ 444,000 | $ 388,650 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Provision for Income Taxes to the Amounts Computed at the Federal Statutory Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal income taxes at statutory rate | $ 511,128 | $ 427,764 | $ 370,632 |
State income taxes, net of federal tax benefit | 32,137 | 25,320 | 26,802 |
Other items, net | (14,115) | (9,084) | (8,784) |
Provision for income taxes | $ 529,150 | $ 444,000 | $ 388,650 |
Income Taxes (Summary of Change
Income Taxes (Summary of Changes in Gross Amount of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Uncertainties [Abstract] | |||
Unrealized tax benefit, beginning balance | $ 49,598 | $ 50,459 | $ 51,004 |
Additions based on tax positions related to the current year | 5,405 | 4,665 | 7,046 |
Additions based on tax positions related to prior years | 995 | 0 | 0 |
Payments related to items settled with taxing authorities | (4,012) | (300) | (1,056) |
Reduction due to lapse of statute of limitations and settlements | (15,058) | (5,226) | (6,535) |
Unrealized tax benefit, ending balance | $ 36,928 | $ 49,598 | $ 50,459 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 2 Months Ended | 12 Months Ended | 62 Months Ended | |
Feb. 26, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 26, 2016 | |
Earnings Per Share | ||||
Common stock repurchased, shares | 4,901 | 5,743 | ||
Common stock repurchased, average price per share | $ 231.81 | $ 150.86 | ||
Common stock repurchased, value | $ 1,136,139 | $ 866,398 | ||
Subsequent event [Member] | ||||
Earnings Per Share | ||||
Common stock repurchased, shares | 800 | 52,100 | ||
Common stock repurchased, average price per share | $ 247.61 | $ 106.76 | ||
Common stock repurchased, value | $ 201,600 | $ 5,600,000 |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||
Numerator (basic and diluted): | ||||||||||||||||||||
Net income | $ 218,576 | $ 266,268 | $ 233,508 | $ 212,864 | $ 181,678 | $ 216,997 | $ 205,647 | $ 173,860 | $ 931,216 | $ 778,182 | $ 670,292 | |||||||||
Denominator: | ||||||||||||||||||||
Denominator for basic earnings per share - weighted-average shares | 99,965 | 104,262 | 109,244 | |||||||||||||||||
Effect of stock options | [1] | 1,549 | 1,779 | 1,857 | ||||||||||||||||
Denominator for diluted earnings per share - weighted-average shares and assumed conversion | 101,514 | 106,041 | 111,101 | |||||||||||||||||
Earnings per share - basic | $ 2.22 | [2] | $ 2.68 | [2] | $ 2.32 | [2] | $ 2.09 | [2] | $ 1.79 | [2] | $ 2.10 | [2] | $ 1.94 | [2] | $ 1.64 | [2] | $ 9.32 | $ 7.46 | $ 6.14 | |
Earnings per share - assuming dilution | $ 2.19 | [2] | $ 2.64 | [2] | $ 2.29 | [2] | $ 2.06 | [2] | $ 1.76 | [2] | $ 2.06 | [2] | $ 1.91 | [2] | $ 1.61 | [2] | $ 9.17 | $ 7.34 | $ 6.03 | |
Antidilutive stock options | [1] | 245 | 363 | 498 | ||||||||||||||||
Weighted-average exercise price | [1] | $ 216.29 | $ 151.65 | $ 103.80 | ||||||||||||||||
[1] | See Note 9 for further information concerning 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 amount. |
Legal Matters (Narrative) (Deta
Legal Matters (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Loss Contingency [Abstract] | |
Name of plaintiff | Meridian Creative Alliance |
Awarded to plaintiff | $ 12.5 |
Loss contingency accrual, provision | $ 18.8 |
Quarterly Results (unaudited)81
Quarterly Results (unaudited) (Unaudited Operating Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||
Sales | $ 1,949,052 | $ 2,080,201 | $ 2,035,518 | $ 1,901,903 | $ 1,764,178 | $ 1,876,872 | $ 1,847,088 | $ 1,727,943 | $ 7,966,674 | $ 7,216,081 | $ 6,649,237 | ||||||||
Gross profit | 1,027,639 | 1,089,254 | 1,058,791 | 986,959 | 912,107 | 968,201 | 950,877 | 877,716 | 4,162,643 | 3,708,901 | 3,369,001 | ||||||||
Operating income | 362,620 | 415,260 | 385,768 | 350,373 | 303,012 | 343,768 | 336,474 | 287,120 | 1,514,021 | 1,270,374 | 1,103,485 | ||||||||
Net income | $ 218,576 | $ 266,268 | $ 233,508 | $ 212,864 | $ 181,678 | $ 216,997 | $ 205,647 | $ 173,860 | $ 931,216 | $ 778,182 | $ 670,292 | ||||||||
Earnings per share - basic | $ 2.22 | [1] | $ 2.68 | [1] | $ 2.32 | [1] | $ 2.09 | [1] | $ 1.79 | [1] | $ 2.10 | [1] | $ 1.94 | [1] | $ 1.64 | [1] | $ 9.32 | $ 7.46 | $ 6.14 |
Earnings per share - assuming dilution | $ 2.19 | [1] | $ 2.64 | [1] | $ 2.29 | [1] | $ 2.06 | [1] | $ 1.76 | [1] | $ 2.06 | [1] | $ 1.91 | [1] | $ 1.61 | [1] | $ 9.17 | $ 7.34 | $ 6.03 |
[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 amount. |
Schedule II - Valuation and Q82
Schedule II - Valuation and Qualifying Accounts (Valuation and Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Sales returns and allowances [Member] | ||||
Valuation and Qualifying Accounts | ||||
Balance at beginning of period | $ 6,855 | $ 6,500 | $ 7,326 | |
Additions - charged to costs and expenses | 1,123 | 355 | (826) | |
Additions - charged to other accounts - describe | 0 | 0 | 0 | |
Deductions - describe | 0 | 0 | 0 | |
Balance at end of period | 7,978 | 6,855 | 6,500 | |
Allowance for doubtful accounts [Member] | ||||
Valuation and Qualifying Accounts | ||||
Balance at beginning of period | 8,713 | 6,661 | 6,447 | |
Additions - charged to costs and expenses | 7,119 | 8,919 | 8,499 | |
Additions - charged to other accounts - describe | 0 | 0 | 0 | |
Deductions - describe | [1] | 6,195 | 6,867 | 8,285 |
Balance at end of period | $ 9,637 | $ 8,713 | $ 6,661 | |
[1] | Uncollectable accounts written off. |