O'Reilly Automotive (ORLY) 10-Q8 Nov 212021 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2021	Nov. 01, 2021
Document and Entity Information
Document type	10-Q
Document quarterly report	true
Document transition report	false
Amendment flag	false
Current fiscal year end date	--12-31
Document period end date	Sep. 30, 2021
Document fiscal year focus	2021
Document fiscal period focus	Q3
Entity registrant name	O Reilly Automotive Inc
Entity central index key	0000898173
Entity incorporation, state	MO
Entity file number	000-21318
Entity tax identification number	27-4358837
Entity address, address	233 South Patterson Avenue
Entity address, city	Springfield
Entity address, postal zip code	65802
Entity address, state	MO
City area code	417
Local phone number	862-6708
Title of 12(b) security	Common Stock
Trading symbol	ORLY
Security exchange name	NASDAQ
Entity current reporting status	Yes
Entity filer category	Large Accelerated Filer
Entity small business	false
Entity emerging growth company	false
Entity interactive data current	Yes
Entity shell company	false
Entity common stock, shares outstanding		67,378,396

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	[1]
Assets
Cash and cash equivalents	$ 449,302	$ 465,640
Accounts receivable, net	282,883	229,679
Amounts receivable from suppliers	110,882	100,615
Inventory	3,646,988	3,653,195
Other current assets	72,154	50,658
Total current assets	4,562,209	4,499,787
Property and equipment, at cost	6,874,639	6,559,911
Less: accumulated depreciation and amortization	2,672,954	2,464,993
Net property and equipment	4,201,685	4,094,918
Operating lease, right-of-use assets	2,011,115	1,995,127
Goodwill	878,872	881,030
Other assets, net	135,504	125,780
Total assets	11,789,385	11,596,642
Liabilities and shareholders' equity (deficit)
Accounts payable	4,608,549	4,184,662
Self-insurance reserves	122,551	109,199
Accrued payroll	89,095	88,875
Accrued benefits and withholdings	288,134	242,724
Income taxes payable	158,481	16,786
Current portion of operating lease liabilities	336,962	322,778
Other current liabilities	385,982	297,393
Total current liabilities	5,989,754	5,262,417
Long-term debt	3,826,073	4,123,217
Operating lease liabilities, less current portion	1,729,013	1,718,691
Deferred income taxes	172,807	155,899
Other liabilities	212,591	196,160
Shareholders' equity (deficit):
Common stock, $0.01 par value: Authorized shares - 245,000,000 Issued and outstanding shares - 67,684,615 as of September 30, 2021, and 71,123,109 as of December 31, 2020	677	711
Additional paid-in capital	1,296,358	1,280,841
Retained deficit	(1,430,060)	(1,139,139)
Accumulated other comprehensive loss	(7,828)	(2,155)
Total shareholders' (deficit) equity	(140,853)	140,258
Total liabilities and shareholders' equity (deficit)	$ 11,789,385	$ 11,596,642

[1]	The balance sheet at December 31, 2020, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Consolidated Balance Sheets
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	245,000,000	245,000,000
Common stock, shares issued	67,684,615	71,123,109
Common stock, shares outstanding	67,684,615	71,123,109

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Consolidated Statements of Income
Sales	$ 3,479,570	$ 3,207,638	$ 10,036,070	$ 8,775,720
Cost of goods sold, including warehouse and distribution expenses	1,661,330	1,527,170	4,750,657	4,162,166
Gross profit	1,818,240	1,680,468	5,285,413	4,613,554
Selling, general and administrative expenses	1,063,641	955,455	3,044,126	2,728,490
Operating income	754,599	725,013	2,241,287	1,885,064
Other income (expense):
Interest expense	(34,873)	(41,668)	(110,036)	(122,777)
Interest income	485	582	1,478	1,892
Other, net	318	2,479	4,961	2,297
Total other expense	(34,070)	(38,607)	(103,597)	(118,588)
Income before income taxes	720,529	686,406	2,137,690	1,766,476
Provision for income taxes	161,877	159,154	491,978	407,119
Net income	$ 558,652	$ 527,252	$ 1,645,712	$ 1,359,357
Earnings per share-basic:
Earnings per share	$ 8.14	$ 7.13	$ 23.67	$ 18.28
Weighted-average common shares outstanding - basic	68,608	73,916	69,529	74,377
Earnings per share-assuming dilution:
Earnings per share	$ 8.07	$ 7.07	$ 23.45	$ 18.12
Weighted-average common shares outstanding - assuming dilution	69,240	74,586	70,174	75,026

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Consolidated Statements of Comprehensive Income
Net income	$ 558,652	$ 527,252	$ 1,645,712	$ 1,359,357
Other comprehensive income (loss):
Foreign currency translation adjustments	(5,237)	5,076	(5,673)	(21,925)
Total other comprehensive (loss) income	(5,237)	5,076	(5,673)	(21,925)
Comprehensive income	$ 553,415	$ 532,328	$ 1,640,039	$ 1,337,432

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common stock [Member]	Additional paid-in capital [Member]	Retained earnings (deficit) [Member]	Accumulated other comprehensive income (loss) [Member]	Total
Balance at beginning of period at Dec. 31, 2019	$ 756	$ 1,280,760	$ (889,066)	$ 4,890	$ 397,340
Balance (in shares) at Dec. 31, 2019	75,619,000
Net income			1,359,357		1,359,357
Total other comprehensive income (loss)				(21,925)	(21,925)
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes		12,979			12,979
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares	36,000
Net issuance of common stock upon exercise of stock options	$ 3	39,503			39,506
Net issuance of common stock upon exercise of stock options, shares	251,000
Share-based compensation		15,968			15,968
Share repurchases, including fees	$ (26)	(45,511)	(1,048,463)		$ (1,094,000)
Share repurchases, including fees, shares	(2,634,000)				(2,634,000)
Balance at end of period at Sep. 30, 2020	$ 733	1,303,699	(578,172)	(17,035)	$ 709,225
Balance (in shares) at Sep. 30, 2020	73,272,000
Balance at beginning of period at Jun. 30, 2020	$ 741	1,289,976	(679,506)	(22,111)	589,100
Balance (in shares) at Jun. 30, 2020	74,098,000
Net income			527,252		527,252
Total other comprehensive income (loss)				5,076	5,076
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes		4,057			4,057
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares	9,000
Net issuance of common stock upon exercise of stock options	$ 1	21,522			21,523
Net issuance of common stock upon exercise of stock options, shares	130,000
Share-based compensation		5,190			5,190
Share repurchases, including fees	$ (9)	(17,046)	(425,918)		$ (442,973)
Share repurchases, including fees, shares	(965,000)				(965,000)
Balance at end of period at Sep. 30, 2020	$ 733	1,303,699	(578,172)	(17,035)	$ 709,225
Balance (in shares) at Sep. 30, 2020	73,272,000
Balance at beginning of period at Dec. 31, 2020	$ 711	1,280,841	(1,139,139)	(2,155)	$ 140,258	[1]
Balance (in shares) at Dec. 31, 2020	71,123,000				71,123,109
Net income			1,645,712		$ 1,645,712
Total other comprehensive income (loss)				(5,673)	(5,673)
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes	$ 1	14,152			14,153
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares	32,000
Net issuance of common stock upon exercise of stock options	$ 3	54,488			54,491
Net issuance of common stock upon exercise of stock options, shares	331,000
Share-based compensation		17,367			17,367
Share repurchases, including fees	$ (38)	(70,490)	(1,936,633)		$ (2,007,161)
Share repurchases, including fees, shares	(3,801,000)				(3,801,000)
Balance at end of period at Sep. 30, 2021	$ 677	1,296,358	(1,430,060)	(7,828)	$ (140,853)
Balance (in shares) at Sep. 30, 2021	67,685,000				67,684,615
Balance at beginning of period at Jun. 30, 2021	$ 691	1,295,363	(1,075,769)	(2,591)	$ 217,694
Balance (in shares) at Jun. 30, 2021	69,133,000
Net income			558,652		558,652
Total other comprehensive income (loss)				(5,237)	(5,237)
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes	$ 1	4,722			4,723
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares	10,000
Net issuance of common stock upon exercise of stock options	$ 1	20,718			20,719
Net issuance of common stock upon exercise of stock options, shares	125,000
Share-based compensation		5,568			5,568
Share repurchases, including fees	$ (16)	(30,013)	(912,943)		$ (942,972)
Share repurchases, including fees, shares	(1,583,000)				(1,583,000)
Balance at end of period at Sep. 30, 2021	$ 677	$ 1,296,358	$ (1,430,060)	$ (7,828)	$ (140,853)
Balance (in shares) at Sep. 30, 2021	67,685,000				67,684,615

[1]	The balance sheet at December 31, 2020, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating activities:
Net income	$ 1,645,712	$ 1,359,357
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, equipment and intangibles	237,654	231,510
Amortization of debt discount and issuance costs	3,294	3,300
Deferred income taxes	18,053	32,249
Share-based compensation programs	18,544	17,062
Other	1,803	2,576
Changes in operating assets and liabilities:
Accounts receivable	(56,743)	(34,970)
Inventory	6,420	(76,239)
Accounts payable	424,710	481,431
Income taxes payable	141,273	123,581
Other	124,607	209,272
Net cash provided by operating activities	2,565,327	2,349,129
Investing activities:
Purchases of property and equipment	(340,687)	(363,425)
Proceeds from sale of property and equipment	6,643	11,690
Investment in tax credit equity investments	(1,795)	(95,292)
Other	(1,897)	(312)
Net cash used in investing activities	(337,736)	(447,339)
Financing activities:
Proceeds from borrowings on revolving credit facility	0	1,162,000
Payments on revolving credit facility	0	(1,423,000)
Proceeds from the issuance of long-term debt	0	997,515
Principal payments on long-term debt	(300,000)	0
Payment of debt issuance costs	(3,404)	(7,779)
Repurchases of common stock	(2,007,161)	(1,094,000)
Net proceeds from issuance of common stock	67,361	51,174
Other	(313)	(253)
Net cash used in financing activities	(2,243,517)	(314,343)
Effect of exchange rate changes on cash	(412)	(755)
Net (decrease) increase in cash and cash equivalents	(16,338)	1,586,692
Cash and cash equivalents at beginning of the period	465,640	40,406
Cash and cash equivalents at end of the period	449,302	1,627,098
Supplemental disclosures of cash flow information:
Income taxes paid	333,360	250,484
Interest paid, net of capitalized interest	$ 107,971	$ 118,397

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Sep. 30, 2021
Basis of Presentation
Basis of presentation	NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of O’Reilly Automotive, Inc. and its subsidiaries (the “Company” or “O’Reilly”) have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2021, are not necessarily indicative of the results that may be expected for the year ended December 31, 2021. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Principles of consolidation: The condensed 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.

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	9 Months Ended
VARIABLE INTEREST ENTITIES	Sep. 30, 2021
Variable Interest Entities
Variable interest entities	NOTE 2 – VARIABLE INTEREST ENTITIES The Company invests in certain tax credit funds that promote renewable energy. These investments generate a return primarily through the realization of federal tax credits and other tax benefits. The Company accounts for the tax attributes of its renewable energy investments using the deferral method. Under this method, realized investment tax credits and other tax benefits are recognized as a reduction of the renewable energy investments. The Company has determined its investment in these tax credit funds were investments in variable interest entities (“VIEs”). The Company analyzes any investments in VIEs at inception and again if certain triggering events are identified to determine if it is the primary beneficiary. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIEs’ economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. As of September 30, 2021, the Company had invested in four unconsolidated tax credit fund entities that were considered to be VIEs and concluded it was not the primary beneficiary of any of the entities, as it did not have the power to control the activities that most significantly impact the entities, and has therefore accounted for these investments using the equity method. The Company’s maximum exposure to losses associated with these VIEs is generally limited to its net investment, which was $20.0 million as of September 30, 2021, and was included in “Other assets, net” on the accompanying Condensed Consolidated Balance Sheets. During the nine months ended September 30, 2020, the Company recognized investment tax credits in the amount of $108.4 million, all of which were realized through reductions in cash income taxes paid and were reflected as a component of the change in Income taxes payable on the accompanying Condensed Consolidated Statements of Cash Flows for the respective period. During the nine months ended September 30, 2021, the Company entered into an agreement to make certain additional capital contributions to one of its tax credit funds, which promotes renewable energy through the development of solar energy farms, for the primary purpose of receiving renewable energy tax credits. Per the terms of the agreement, the Company is required to make capital contributions totaling approximately $170.0 million upon achievement of project milestones by the solar energy farms, the timing of which is variable and outside of the Company’s control.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
FAIR VALUE MEASUREMENTS	Sep. 30, 2021
Fair Value Measurements
Fair value measurements	NOTE 3 – FAIR VALUE MEASUREMENTS The Company uses the fair value hierarchy, which prioritizes the inputs used to measure the fair value of certain of its financial instruments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company uses the income and market approaches to determine the fair value of its assets and liabilities. The three levels of the fair value hierarchy are set forth below: ● Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. ● Level 2 – Inputs other than quoted prices in active markets included within Level 1 that are observable for the asset or liability, either directly or indirectly. ● Level 3 – Unobservable inputs for the asset or liability. Financial assets and liabilities measured at fair value on a recurring basis: The Company invests in various marketable securities with the intention of selling these securities to fulfill its future unsecured obligations under the Company’s nonqualified deferred compensation plan. See Note 11 for further information concerning the Company’s benefit plans. The Company’s marketable securities were accounted for as trading securities and the carrying amount of its marketable securities were included in “Other assets, net” on the accompanying Condensed Consolidated Balance Sheets as of September 30, 2021, and December 31, 2020. The Company recorded a decrease in fair value related to its marketable securities in the amount of $0.2 million and an increase in fair value related to its marketable securities in the amount of $1.9 million for the three months ended September 30, 2021 and 2020, respectively, which were included in “Other income (expense)” on the accompanying Condensed Consolidated Statements of Income. The Company recorded an increase in fair value related to its marketable securities in the amount of $3.8 million and $1.2 million for the nine months ended September 30, 2021 and 2020, respectively, which were included in “Other income (expense)” on the accompanying Condensed Consolidated Statements of Income. The tables below identify the estimated fair value of the Company’s marketable securities, determined by reference to quoted market prices (Level 1), as of September 30, 2021, and December 31, 2020 (in thousands): September 30, 2021 Quoted Priced in Active Markets Significant Other Significant for Identical Instruments Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Marketable securities $ 50,012 $ — $ — $ 50,012 December 31, 2020 Quoted Prices in Active Markets Significant Other Significant for Identical Instruments Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Marketable securities $ 40,411 $ — $ — $ 40,411 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 September 30, 2021, and December 31, 2020, 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 and unsecured revolving credit facility borrowings are included in “Long-term debt” on the accompanying Condensed Consolidated Balance Sheets as of September 30, 2021, and December 31, 2020. See Note 6 for further information concerning the Company’s senior notes and unsecured revolving credit facility. The table below identifies the estimated fair value of the Company’s senior notes, using the market approach. The fair value as of September 30, 2021, and December 31, 2020, was determined by reference to quoted market prices of the same or similar instruments (Level 2) (in thousands): September 30, 2021 December 31, 2020 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior Notes $ 3,826,073 $ 4,191,551 $ 4,123,217 $ 4,647,595 The carrying amount of the Company’s unsecured revolving credit facility approximates fair value (Level 2), as borrowings under the facility bear variable interest at current market rates. The accompanying Condensed 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.

ALLOWANCE FOR DOUBTFUL ACCOUNTS

ALLOWANCE FOR DOUBTFUL ACCOUNTS	9 Months Ended
ALLOWANCE FOR DOUBTFUL ACCOUNTS	Sep. 30, 2021
Allowance for Doubtful Accounts
Allowance for doubtful accounts	NOTE 4 – ALLOWANCE FOR DOUBTFUL ACCOUNTS 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 expectations of future economic and industry trends, changes in customer payment terms and management’s expectations. Allowances for doubtful accounts are determined based on historical experience and an evaluation of the current composition of accounts receivable. The Company grants credit to certain professional service provider and jobber 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 relatively small customers, spreading the credit risk across a broad base regarded as a single class of financing receivable by the Company. 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 is granted to customers on a short-term basis, consisting primarily of daily, weekly or monthly accounts. Credit losses are provided for in the Company’s condensed consolidated financial statements and have consistently been within management’s expectations. The Company’s allowance for doubtful accounts are included in “Accounts receivable, net” on the accompanying Condensed Consolidated Balance Sheets as of September 30, 2021, and December 31, 2020. The following table identifies the changes in the Company’s allowance for doubtful accounts for the nine months ended September 30, 2021 (in thousands): Allowance for doubtful accounts, balance at December 31, 2020 $ 12,670 Reserve accruals 2,940 Uncollectable accounts written-off (3,669) Foreign currency translation (25) Allowance for doubtful accounts, balance at September 30, 2021 $ 11,916 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 include 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 aggregate amounts receivable from suppliers, and the Company did not record a reserve for uncollectable amounts from suppliers in the condensed consolidated financial statements as of September 30, 2021, and December 31, 2020.

LEASES

LEASES	9 Months Ended
LEASES	Sep. 30, 2021
Leases
Leases	NOTE 5 – LEASES The Company leases certain office space, retail stores, distribution centers and equipment under long-term, non-cancelable operating leases. The following table summarizes Total lease cost for the three and nine months ended September 30, 2021 and 2020, which were primarily included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating lease cost $ 87,601 $ 84,065 $ 262,183 $ 250,721 Short-term operating lease cost 1,803 1,617 5,397 4,342 Variable operating lease cost 22,436 20,630 67,025 61,739 Sublease income (1,177) (1,235) (3,560) (3,597) Total lease cost $ 110,663 $ 105,077 $ 331,045 $ 313,205 The following table summarizes other lease-related information for the nine months ended September 30, 2021 and 2020: For the Nine Months Ended September 30, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 256,282 $ 249,584 Right-of-use assets obtained in exchange for new operating lease liabilities 216,825 176,714

FINANCING

FINANCING	9 Months Ended
FINANCING	Sep. 30, 2021
Financing
Financing	NOTE 6 – FINANCING The following table identifies the amounts included in “Current portion of long-term debt” and “Long-term debt” on the accompanying Condensed Consolidated Balance Sheets as of September 30, 2021, and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 4.625% Senior Notes due 2021, effective interest rate of 4.643% $ — $ 300,000 3.800% Senior Notes due 2022, effective interest rate of 3.845% 300,000 300,000 3.850% Senior Notes due 2023, effective interest rate of 3.851% 300,000 300,000 3.550% Senior Notes due 2026, effective interest rate of 3.570% 500,000 500,000 3.600% Senior Notes due 2027, effective interest rate of 3.619% 750,000 750,000 4.350% Senior Notes due 2028, effective interest rate of 4.383% 500,000 500,000 3.900% Senior Notes due 2029, effective interest rate of 3.901% 500,000 500,000 4.200% Senior Notes due 2030, effective interest rate of 4.205% 500,000 500,000 1.750% Senior Notes due 2031, effective interest rate of 1.798% 500,000 500,000 Total principal amount of debt 3,850,000 4,150,000 Less: Unamortized discount and debt issuance costs 23,927 26,783 Total long-term debt $ 3,826,073 $ 4,123,217 Unsecured revolving credit facility: On June 15, 2021, the Company entered into a new credit agreement (the “Credit Agreement”). The Credit Agreement provides for a five-year $1.8 billion unsecured revolving credit facility (the “Revolving Credit Facility”) arranged by JPMorgan Chase Bank, N.A., which is scheduled to mature in June of 2026. 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 $900 million, provided that the aggregate amount of the commitments does not exceed $2.7 billion at any time. In conjunction with the closing of the Credit Agreement, the Company’s previous credit agreement, which was originally entered into on April 5, 2017, was terminated (the “Terminated Credit Agreement”), and all outstanding loans and commitments under the Terminated Credit Agreement were terminated and replaced by the loans and commitments under the Credit Agreement. As of September 30, 2021, and December 31, 2020, 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 $84.0 million and $66.4 million, respectively, reducing the aggregate availability under the credit agreements by those amounts. As of September 30, 2021, and December 31, 2020, the Company had no outstanding borrowings under its revolving credit facilities. Borrowings under the Revolving Credit Facility (other than swing line loans) bear interest, at the Company’s option, at either an Alternate Base Rate or an Adjusted LIBO Rate (both as defined in the Credit Agreement) plus an applicable margin. The Credit Agreement includes customary provisions to provide for the eventual replacement of LIBOR as a benchmark interest rate. Swing line loans made under the Revolving Credit Facility bear interest at an Alternate Base Rate plus the applicable margin for Alternate Base Rate loans. In addition, the Company pays a facility fee on the aggregate amount of the commitments under the Credit Agreement 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 September 30, 2021, based upon the Company’s current credit ratings, its margin for Alternate Base Rate loans was 0.000%, its margin for Eurodollar Revolving Loans was 0.900% and its facility fee was 0.100%. The Credit Agreement contains certain covenants, including limitations on subsidiary indebtedness, a minimum consolidated fixed charge coverage ratio of 2.50:1.00 and a maximum consolidated leverage ratio of 3.50:1.00. The consolidated fixed charge coverage ratio includes a calculation of earnings before interest, taxes, depreciation, amortization, rent and non-cash share-based compensation expense to fixed charges. Fixed charges include interest expense, capitalized interest and rent expense. 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, five-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 (subject to customary grace periods, cure rights and materiality thresholds) contained in 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 September 30, 2021, the Company remained in compliance with all covenants under the Credit Agreement. Senior notes: On June 15, 2021, the Company redeemed its $300 million aggregate principal amount of unsecured 4.625% Senior Notes due 2021 at a redemption price of $300 million, plus accrued and unpaid interest up to, but not including, the date of redemption. As of September 30, 2021, the Company has issued and outstanding a cumulative $3.9 billion aggregate principal amount of unsecured senior notes, which are due between 2022 and 2031, with UMB Bank, N.A. and U.S. Bank as trustees. Interest on the senior notes, ranging from 1.750% to 4.350%, is payable semi-annually and is computed on the basis of a 360-day year. The $300 million aggregate principle amount of unsecured 3.800% Senior Notes due 2022 were included in “Long-term debt” on the accompanying Consolidated Balance Sheet as of September 30, 2021, as the Company has the ability and intent to refinance these notes on a long-term basis. None of the Company’s subsidiaries is a guarantor under the senior notes. Each of the senior notes is subject to certain customary covenants, with which the Company complied as of September 30, 2021.

WARRANTIES

WARRANTIES	9 Months Ended
WARRANTIES	Sep. 30, 2021
Warranties
Warranties	NOTE 7 – WARRANTIES The Company provides warranties on certain merchandise it sells with warranty periods ranging from 30 days to limited lifetime warranties. The risk of loss arising from warranty claims is typically the obligation of the Company’s 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. The Company’s product warranty liabilities are included in “Other current liabilities” on the accompanying Condensed Consolidated Balance Sheets as of September 30, 2021, and December 31, 2020; the following table identifies the changes in the Company’s aggregate product warranty liabilities for the nine months ended September 30, 2021 (in thousands): Warranty liabilities, balance at December 31, 2020 $ 65,886 Warranty claims (94,451) Warranty accruals 104,054 Foreign currency translation (18) Warranty liabilities, balance at September 30, 2021 $ 75,471

SHARE REPURCHASE PROGRAM

SHARE REPURCHASE PROGRAM	9 Months Ended
SHARE REPURCHASE PROGRAM	Sep. 30, 2021
Share Repurchase Program
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 10, 2021, and May 27, 2021, the Company’s Board of Directors each time approved a resolution to increase the authorization amount under the share repurchase program by an additional $1.0 billion and $1.5 billion, respectively, resulting in a cumulative authorization amount of $17.3 billion. The additional authorizations are effective for three years, beginning on their respective announcement dates. 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 for the three and nine months ended September 30, 2021 and 2020 (in thousands, except per share data): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Shares repurchased 1,583 965 3,801 2,634 Average price per share $ 595.96 $ 458.70 $ 528.09 $ 415.28 Total investment $ 942,955 $ 442,962 $ 2,007,122 $ 1,093,973 As of September 30, 2021, the Company had $974.4 million remaining under its share repurchase authorization. Subsequent to the end of the third quarter and through November 8, 2021, the Company repurchased 0.4 million additional shares of its common stock under its share repurchase program, at an average price of $618.44, for a total investment of $246.9 million. The Company has repurchased a total of 85.2 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through November 8, 2021, at an average price of $193.88, for a total aggregate investment of $16.5 billion.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)	NOTE 9 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) includes adjustments for foreign currency translations. The tables below summarize activity for changes in accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020 (in thousands): Foreign Total Accumulated Other Currency (1) Comprehensive Loss Accumulated other comprehensive loss, balance at June 30, 2021 $ (2,591) $ (2,591) Change in accumulated other comprehensive loss (5,237) (5,237) Accumulated other comprehensive loss, balance at September 30, 2021 $ (7,828) $ (7,828) Foreign Total Accumulated Other Currency (1) Comprehensive Loss Accumulated other comprehensive loss, balance at December 31, 2020 $ (2,155) $ (2,155) Change in accumulated other comprehensive loss (5,673) (5,673) Accumulated other comprehensive loss, balance at September 30, 2021 $ (7,828) $ (7,828) Foreign Total Accumulated Other Currency (1) Comprehensive Loss Accumulated other comprehensive loss, balance at June 30, 2020 $ (22,111) $ (22,111) Change in accumulated other comprehensive income 5,076 5,076 Accumulated other comprehensive loss, balance at September 30, 2020 $ (17,035) $ (17,035) Foreign Total Accumulated Other Currency (1) Comprehensive Income (Loss) Accumulated other comprehensive income, balance at December 31, 2019 $ 4,890 $ 4,890 Change in accumulated other comprehensive loss (21,925) (21,925) Accumulated other comprehensive loss, balance at September 30, 2020 $ (17,035) $ (17,035) (1) Foreign currency translation is not shown net of additional U.S. tax, as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested.

REVENUE

REVENUE	9 Months Ended
REVENUE	Sep. 30, 2021
Revenue
Revenue	NOTE 10 – REVENUE The table below identifies the Company’s revenues disaggregated by major customer type for the three and nine months ended September 30, 2021 and 2020 (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Sales to do-it-yourself customers $ 1,992,778 $ 1,869,079 $ 5,773,345 $ 5,067,676 Sales to professional service provider customers 1,408,747 1,264,802 4,032,050 3,510,031 Other sales and sales adjustments 78,045 73,757 230,675 198,013 Total sales $ 3,479,570 $ 3,207,638 $ 10,036,070 $ 8,775,720 As of September 30, 2021, and December 31, 2020, the Company had recorded a deferred revenue liability of $4.5 million related to its loyalty program, which were included in “Other liabilities” on the accompanying Condensed Consolidated Balance Sheets. During the three months ended September 30, 2021 and 2020, the Company recognized $3.5 million and $3.8 million, respectively, of deferred revenue related to its loyalty program, which were included in “Sales” on the accompanying Condensed Consolidated Statements of Income. During the nine months ended September 30, 2021 and 2020, the Company recognized $10.7 million and $10.8 million, respectively, of deferred revenue related to its loyalty program, which were included in “Sales” on the accompanying Condensed Consolidated Statements of Income. See Note 7 for information concerning the expected costs associated with the Company’s assurance warranty obligations.

SHARE-BASED COMPENSATION AND BE

SHARE-BASED COMPENSATION AND BENEFIT PLANS	9 Months Ended
SHARE-BASED COMPENSATION AND BENEFIT PLANS	Sep. 30, 2021
Share-Based Compensation and Benefit Plans
Share-based compensation and benefit plans	NOTE 11 – 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, restricted stock awards and stock appreciation rights issued under the Company’s incentive plans and stock issued through the Company’s employee stock purchase plan. Stock options: The Company’s 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 10 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 evenly over the vesting period or minimum required service period. The table below identifies stock option activity under these plans during the nine months ended September 30, 2021 (in thousands, except per share data): Shares Weighted- Average (in thousands) Exercise Price Outstanding at December 31, 2020 1,500 $ 248.52 Granted 123 479.73 Exercised (331) 164.42 Forfeited or expired (21) 367.98 Outstanding at September 30, 2021 1,271 $ 290.85 Exercisable at September 30, 2021 856 $ 241.60 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 is expected to fluctuate, based on a historical trend. ● 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 nine months ended September 30, 2021 and 2020: September 30, 2021 2020 Risk free interest rate 0.81 % 0.90 % Expected life 6.0 Years 6.1 Years Expected volatility 30.0 % 26.1 % Expected dividend yield — % — % The following table summarizes activity related to stock options awarded by the Company for the three and nine months ended September 30, 2021 and 2020 (in thousands, except per share data): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Compensation expense for stock options awarded $ 4,736 $ 4,473 $ 15,103 $ 13,908 Income tax benefit from compensation expense related to stock options 1,169 1,123 3,727 3,492 The weighted-average grant-date fair value of options granted during the nine months ended September 30, 2021, was $144.99, compared to $106.13 for the nine months ended September 30, 2020. The remaining unrecognized compensation expense related to unvested stock option awards at September 30, 2021, was $33.3 million, and the weighted-average period of time over which this cost will be recognized is 2.5 years. Other share-based compensation plans: The Company sponsors other share-based compensation plans: an employee stock purchase plan and incentive plans that provide for the awarding of shares of restricted stock to certain key employees and directors. 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. 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, and compensation expense is recognized based on the discount between the fair value and the employee purchase price for the shares sold to employees. Restricted stock awarded under the incentive plans to certain key employees and directors vests after one-year or evenly over a three-year period and is held in escrow until such vesting has occurred. The fair value of shares awarded under the incentive plans is based on the closing market price of the Company’s common stock on the date of the award, and compensation expense is recorded evenly over the vesting period or the minimum required service period. The table below summarizes activity related to the Company’s other share-based compensation plans for the three and nine months ended September 30, 2021 and 2020 (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Compensation expense for shares issued under the ESPP $ 832 $ 717 $ 2,264 $ 2,060 Income tax benefit from compensation expense related to shares issued under the ESPP 205 180 559 517 Compensation expense for restricted shares awarded 401 392 1,177 1,094 Income tax benefit from compensation expense related to restricted awards $ 99 $ 99 $ 291 $ 275 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 completed one year 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 generally 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 nine months ended September 30, 2021 or 2020. The Company expensed matching contributions under the 401(k) Plan in the amount of $8.7 million and $8.0 million for the three months ended September 30, 2021 and 2020, respectively, which were primarily included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income. The Company expensed matching contributions under the 401(k) Plan in the amount of $24.6 million and $22.6 million for the nine months ended September 30, 2021 and 2020, respectively, which were primarily included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income. 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, which is then matched by the Company using the same formula as the 401(k) Plan. An employee generally 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 $50.0 million and $40.4 million as of September 30, 2021, and December 31, 2020, respectively, which was included in “Other liabilities” on the accompanying Condensed Consolidated Balance Sheets. The Company expensed matching contributions under the Deferred Compensation Plan in the amount of $0.1 million and less than $0.1 million for the three months ended September 30, 2021 and 2020, respectively, which were included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income. The Company expensed matching contributions under the Deferred Compensation Plan in the amount of $0.2 million for each of the nine months ended September 30, 2021 and 2020, which were included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income. Stock appreciation rights: The Company’s incentive plans provide for the granting of stock appreciation rights, which expire after 10 years and vest 25% per year, over four years, and are settled in cash. As of September 30, 2021, there were 9,811 stock appreciation rights outstanding, and during the nine months ended September 30, 2021, there were 1,662 stock appreciation rights granted. The liability for compensation to be paid for redeemed stock appreciation rights was $0.9 million and $0.3 million as of September 30, 2021, and December 31, 2020, respectively, which were included in “Other liabilities” on the Condensed Consolidated Balance Sheets. Compensation expense for stock appreciation rights was $0.2 million and $0.1 million for the three months ended September 30, 2021 and 2020, respectively, which were included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income. Compensation expense for stock appreciation rights was $0.6 million and $0.2 million for the nine months ended September 30, 2021 and 2020, respectively, which were included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
EARNINGS PER SHARE	Sep. 30, 2021
Earnings Per Share
Earnings per share	NOTE 12 – EARNINGS PER SHARE The following table illustrates the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2021 and 2020 (in thousands, except per share data): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Numerator (basic and diluted): Net income $ 558,652 $ 527,252 $ 1,645,712 $ 1,359,357 Denominator: Weighted-average common shares outstanding – basic 68,608 73,916 69,529 74,377 Effect of stock options (1) 632 670 645 649 Weighted-average common shares outstanding – assuming dilution 69,240 74,586 70,174 75,026 Earnings per share: Earnings per share-basic $ 8.14 $ 7.13 $ 23.67 $ 18.28 Earnings per share-assuming dilution $ 8.07 $ 7.07 $ 23.45 $ 18.12 Antidilutive potential common shares not included in the calculation of diluted earnings per share: Stock options (1) 133 153 48 327 Weighted-average exercise price per share of antidilutive stock options (1) $ 467.03 $ 409.07 $ 502.49 $ 384.43 (1) See Note 11 for further information concerning the terms of the Company’s share-based compensation plans. For the three and nine months ended September 30, 2021 and 2020, the computation of diluted earnings per share did not include certain securities. These securities represent underlying stock options not included in the computation of diluted earnings per share, because the inclusion of such equity awards would have been antidilutive. Subsequent to the end of the third quarter and through November 8, 2021, the Company repurchased 0.4 million additional shares of its common stock under its share repurchase program, at an average price of $618.44, for a total investment of 246.9 million.

LEGAL MATTERS

LEGAL MATTERS	9 Months Ended
LEGAL MATTERS	Sep. 30, 2021
Legal Matters
Legal matters	NOTE 13 – LEGAL MATTERS O’Reilly is currently involved in litigation incidental to the ordinary conduct of the Company’s business. The Company accrues 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 accrues 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 accruals, will have a material adverse effect on its consolidated financial position, results of operations or cash flows in a particular quarter or annual period.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Sep. 30, 2021
Recent Accounting Pronouncements
Recent accounting pronouncements	NOTE 14 – RECENT ACCOUNTING PRONOUNCEMENTS No recent accounting pronouncements or changes in accounting pronouncements have occurred since those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, that are of material significance, or have potential material significance, to the Company.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
BASIS OF PRESENTATION (Policies)	Sep. 30, 2021
Basis of Presentation.
Principles of consolidation, policy	Principles of consolidation: The condensed 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.

VARIABLE INTEREST ENTITIES (Pol

VARIABLE INTEREST ENTITIES (Policies)	9 Months Ended
VARIABLE INTEREST ENTITIES (Policies)	Sep. 30, 2021
Variable Interest Entities
Variable interest entities, policy	The Company invests in certain tax credit funds that promote renewable energy. These investments generate a return primarily through the realization of federal tax credits and other tax benefits. The Company accounts for the tax attributes of its renewable energy investments using the deferral method. Under this method, realized investment tax credits and other tax benefits are recognized as a reduction of the renewable energy investments. The Company has determined its investment in these tax credit funds were investments in variable interest entities (“VIEs”). The Company analyzes any investments in VIEs at inception and again if certain triggering events are identified to determine if it is the primary beneficiary. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIEs’ economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. As of September 30, 2021, the Company had invested in four unconsolidated tax credit fund entities that were considered to be VIEs and concluded it was not the primary beneficiary of any of the entities, as it did not have the power to control the activities that most significantly impact the entities, and has therefore accounted for these investments using the equity method. The Company’s maximum exposure to losses associated with these VIEs is generally limited to its net investment, which was $20.0 million as of September 30, 2021, and was included in “Other assets, net” on the accompanying Condensed Consolidated Balance Sheets. During the nine months ended September 30, 2020, the Company recognized investment tax credits in the amount of $108.4 million, all of which were realized through reductions in cash income taxes paid and were reflected as a component of the change in Income taxes payable on the accompanying Condensed Consolidated Statements of Cash Flows for the respective period. During the nine months ended September 30, 2021, the Company entered into an agreement to make certain additional capital contributions to one of its tax credit funds, which promotes renewable energy through the development of solar energy farms, for the primary purpose of receiving renewable energy tax credits. Per the terms of the agreement, the Company is required to make capital contributions totaling approximately $170.0 million upon achievement of project milestones by the solar energy farms, the timing of which is variable and outside of the Company’s control.

FAIR VALUE MEASUREMENTS (Polici

FAIR VALUE MEASUREMENTS (Policies)	9 Months Ended
FAIR VALUE MEASUREMENTS (Policies)	Sep. 30, 2021
Fair Value Measurements
Fair Value Measurements, policy	The Company uses the fair value hierarchy, which prioritizes the inputs used to measure the fair value of certain of its financial instruments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company uses the income and market approaches to determine the fair value of its assets and liabilities. 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.

ALLOWANCE FOR DOUBTFUL ACCOUN_2

ALLOWANCE FOR DOUBTFUL ACCOUNTS (Policies)	9 Months Ended
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Policies)	Sep. 30, 2021
Allowance for Doubtful Accounts
Allowances for doubtful accounts, policy	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 expectations of future economic and industry trends, changes in customer payment terms and management’s expectations. Allowances for doubtful accounts are determined based on historical experience and an evaluation of the current composition of accounts receivable. The Company grants credit to certain professional service provider and jobber 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 relatively small customers, spreading the credit risk across a broad base regarded as a single class of financing receivable by the Company. 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 is granted to customers on a short-term basis, consisting primarily of daily, weekly or monthly accounts. Credit losses are provided for in the Company’s condensed consolidated financial statements and have consistently been within management’s expectations.
Amounts receivable from suppliers, policy	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 include 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.

WARRANTIES (Policies)

WARRANTIES (Policies)	9 Months Ended
WARRANTIES (Policies)	Sep. 30, 2021
Warranties
Warranties, policy	The Company provides warranties on certain merchandise it sells with warranty periods ranging from 30 days to limited lifetime warranties. The risk of loss arising from warranty claims is typically the obligation of the Company’s 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.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Sep. 30, 2021
Fair Value Measurements
Valuation of marketable securities	September 30, 2021 Quoted Priced in Active Markets Significant Other Significant for Identical Instruments Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Marketable securities $ 50,012 $ — $ — $ 50,012 December 31, 2020 Quoted Prices in Active Markets Significant Other Significant for Identical Instruments Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Marketable securities $ 40,411 $ — $ — $ 40,411
Valuation of senior notes	September 30, 2021 December 31, 2020 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior Notes $ 3,826,073 $ 4,191,551 $ 4,123,217 $ 4,647,595

ALLOWANCE FOR DOUBTFUL ACCOUN_3

ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables)	9 Months Ended
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables)	Sep. 30, 2021
Allowance for Doubtful Accounts
Changes in allowance for doubtful accounts	Allowance for doubtful accounts, balance at December 31, 2020 $ 12,670 Reserve accruals 2,940 Uncollectable accounts written-off (3,669) Foreign currency translation (25) Allowance for doubtful accounts, balance at September 30, 2021 $ 11,916

LEASES (Tables)

LEASES (Tables)	9 Months Ended
LEASES (Tables)	Sep. 30, 2021
Leases
Summary of total lease cost	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating lease cost $ 87,601 $ 84,065 $ 262,183 $ 250,721 Short-term operating lease cost 1,803 1,617 5,397 4,342 Variable operating lease cost 22,436 20,630 67,025 61,739 Sublease income (1,177) (1,235) (3,560) (3,597) Total lease cost $ 110,663 $ 105,077 $ 331,045 $ 313,205
Other lease related information	For the Nine Months Ended September 30, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 256,282 $ 249,584 Right-of-use assets obtained in exchange for new operating lease liabilities 216,825 176,714

FINANCING (Tables)

FINANCING (Tables)	9 Months Ended
FINANCING (Tables)	Sep. 30, 2021
Financing
Outstanding financing facilities	September 30, 2021 December 31, 2020 4.625% Senior Notes due 2021, effective interest rate of 4.643% $ — $ 300,000 3.800% Senior Notes due 2022, effective interest rate of 3.845% 300,000 300,000 3.850% Senior Notes due 2023, effective interest rate of 3.851% 300,000 300,000 3.550% Senior Notes due 2026, effective interest rate of 3.570% 500,000 500,000 3.600% Senior Notes due 2027, effective interest rate of 3.619% 750,000 750,000 4.350% Senior Notes due 2028, effective interest rate of 4.383% 500,000 500,000 3.900% Senior Notes due 2029, effective interest rate of 3.901% 500,000 500,000 4.200% Senior Notes due 2030, effective interest rate of 4.205% 500,000 500,000 1.750% Senior Notes due 2031, effective interest rate of 1.798% 500,000 500,000 Total principal amount of debt 3,850,000 4,150,000 Less: Unamortized discount and debt issuance costs 23,927 26,783 Total long-term debt $ 3,826,073 $ 4,123,217

WARRANTIES (Tables)

WARRANTIES (Tables)	9 Months Ended
WARRANTIES (Tables)	Sep. 30, 2021
Warranties
Changes in product warranty liabilities	Warranty liabilities, balance at December 31, 2020 $ 65,886 Warranty claims (94,451) Warranty accruals 104,054 Foreign currency translation (18) Warranty liabilities, balance at September 30, 2021 $ 75,471

SHARE REPURCHASE PROGRAM (Table

SHARE REPURCHASE PROGRAM (Tables)	9 Months Ended
SHARE REPURCHASE PROGRAM (Tables)	Sep. 30, 2021
Share Repurchase Program
Schedule of shares repurchased	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Shares repurchased 1,583 965 3,801 2,634 Average price per share $ 595.96 $ 458.70 $ 528.09 $ 415.28 Total investment $ 942,955 $ 442,962 $ 2,007,122 $ 1,093,973

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss)
Summary of activity for changes in accumulated other comprehensive income (loss)	Foreign Total Accumulated Other Currency (1) Comprehensive Loss Accumulated other comprehensive loss, balance at June 30, 2021 $ (2,591) $ (2,591) Change in accumulated other comprehensive loss (5,237) (5,237) Accumulated other comprehensive loss, balance at September 30, 2021 $ (7,828) $ (7,828) Foreign Total Accumulated Other Currency (1) Comprehensive Loss Accumulated other comprehensive loss, balance at December 31, 2020 $ (2,155) $ (2,155) Change in accumulated other comprehensive loss (5,673) (5,673) Accumulated other comprehensive loss, balance at September 30, 2021 $ (7,828) $ (7,828) Foreign Total Accumulated Other Currency (1) Comprehensive Loss Accumulated other comprehensive loss, balance at June 30, 2020 $ (22,111) $ (22,111) Change in accumulated other comprehensive income 5,076 5,076 Accumulated other comprehensive loss, balance at September 30, 2020 $ (17,035) $ (17,035) Foreign Total Accumulated Other Currency (1) Comprehensive Income (Loss) Accumulated other comprehensive income, balance at December 31, 2019 $ 4,890 $ 4,890 Change in accumulated other comprehensive loss (21,925) (21,925) Accumulated other comprehensive loss, balance at September 30, 2020 $ (17,035) $ (17,035) (1) Foreign currency translation is not shown net of additional U.S. tax, as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested.

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
REVENUE (Tables)	Sep. 30, 2021
Revenue
Disaggregation of revenue	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Sales to do-it-yourself customers $ 1,992,778 $ 1,869,079 $ 5,773,345 $ 5,067,676 Sales to professional service provider customers 1,408,747 1,264,802 4,032,050 3,510,031 Other sales and sales adjustments 78,045 73,757 230,675 198,013 Total sales $ 3,479,570 $ 3,207,638 $ 10,036,070 $ 8,775,720

SHARE-BASED COMPENSATION AND _2

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Tables)	9 Months Ended
SHARE-BASED COMPENSATION AND BENEFIT PLANS (Tables)	Sep. 30, 2021
Employee stock option [Member]
Share-Based Compensation and Benefit Plans
Summary of stock options	Shares Weighted- Average (in thousands) Exercise Price Outstanding at December 31, 2020 1,500 $ 248.52 Granted 123 479.73 Exercised (331) 164.42 Forfeited or expired (21) 367.98 Outstanding at September 30, 2021 1,271 $ 290.85 Exercisable at September 30, 2021 856 $ 241.60
Black-Scholes option pricing model	September 30, 2021 2020 Risk free interest rate 0.81 % 0.90 % Expected life 6.0 Years 6.1 Years Expected volatility 30.0 % 26.1 % Expected dividend yield — % — %
Summary of activity of share-based compensation and benefit plans	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Compensation expense for stock options awarded $ 4,736 $ 4,473 $ 15,103 $ 13,908 Income tax benefit from compensation expense related to stock options 1,169 1,123 3,727 3,492
Restricted stock [Member]
Share-Based Compensation and Benefit Plans
Summary of activity of share-based compensation and benefit plans	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Compensation expense for shares issued under the ESPP $ 832 $ 717 $ 2,264 $ 2,060 Income tax benefit from compensation expense related to shares issued under the ESPP 205 180 559 517 Compensation expense for restricted shares awarded 401 392 1,177 1,094 Income tax benefit from compensation expense related to restricted awards $ 99 $ 99 $ 291 $ 275

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
EARNINGS PER SHARE (Tables)	Sep. 30, 2021
Earnings Per Share
Computation of basic and diluted earnings per share	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Numerator (basic and diluted): Net income $ 558,652 $ 527,252 $ 1,645,712 $ 1,359,357 Denominator: Weighted-average common shares outstanding – basic 68,608 73,916 69,529 74,377 Effect of stock options (1) 632 670 645 649 Weighted-average common shares outstanding – assuming dilution 69,240 74,586 70,174 75,026 Earnings per share: Earnings per share-basic $ 8.14 $ 7.13 $ 23.67 $ 18.28 Earnings per share-assuming dilution $ 8.07 $ 7.07 $ 23.45 $ 18.12 Antidilutive potential common shares not included in the calculation of diluted earnings per share: Stock options (1) 133 153 48 327 Weighted-average exercise price per share of antidilutive stock options (1) $ 467.03 $ 409.07 $ 502.49 $ 384.43 (1) See Note 11 for further information concerning the terms of the Company’s share-based compensation plans.

VARIABLE INTEREST ENTITIES (Nar

VARIABLE INTEREST ENTITIES (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021USD ($)entity	Sep. 30, 2020USD ($)
Variable Interest Entities
Number of unconsolidated tax credit fund entities that were considered to be Variable Interest Entities \| entity	4
Equity method investment in VIEs, net	$ 20
Investment tax credit amount		$ 108.4
Capital contributions	$ 170

FAIR VALUE MEASUREMENTS (Narrat

FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Fair Value Measurements
(Decrease) increase in fair value of marketable securities	$ (0.2)	$ 1.9	$ 3.8	$ 1.2
Non-financial assets and liabilities measured at fair value on a nonrecurring basis	$ 0		$ 0		$ 0

FAIR VALUE MEASUREMENTS (Fair V

FAIR VALUE MEASUREMENTS (Fair Value of Marketable Securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value Measurements
Estimated fair value of marketable securities	$ 50,012	$ 40,411
Fair value, inputs, Level 1 [Member]
Fair Value Measurements
Estimated fair value of marketable securities	$ 50,012	$ 40,411

FAIR VALUE MEASUREMENTS (Fair_2

FAIR VALUE MEASUREMENTS (Fair Value of Senior Notes) (Details) - Fair value, inputs, Level 2 [Member] - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value Measurements
Carrying amount of senior notes	$ 3,826,073	$ 4,123,217
Estimated fair value of senior notes	$ 4,191,551	$ 4,647,595

ALLOWANCE FOR DOUBTFUL ACCOUN_4

ALLOWANCE FOR DOUBTFUL ACCOUNTS (Changes in Allowance for Doubtful Accounts) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)
Allowance for Doubtful Accounts
Allowance for doubtful accounts, balance at December 31, 2020	$ 12,670
Reserve accruals	2,940
Uncollectable accounts written-off	(3,669)
Foreign currency translation	(25)
Allowance for doubtful accounts, balance at September 30, 2021	$ 11,916

LEASES (Summary of Total Lease

LEASES (Summary of Total Lease Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leases
Operating lease cost	$ 87,601	$ 84,065	$ 262,183	$ 250,721
Short-term operating lease cost	1,803	1,617	5,397	4,342
Variable operating lease cost	22,436	20,630	67,025	61,739
Sublease income	(1,177)	(1,235)	(3,560)	(3,597)
Total lease cost	$ 110,663	$ 105,077	$ 331,045	$ 313,205

LEASES (Supplemental Cash Flow

LEASES (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Leases
Cash paid for amounts included in the measurement of operating lease liabilities, operating cash flows from operating leases	$ 256,282	$ 249,584
Right-of-use asset obtained in exchange for new operating lease liability	$ 216,825	$ 176,714

FINANCING (Unsecured Revolving

FINANCING (Unsecured Revolving Credit Facility) (Narrative) (Details) - Line of credit facility [Member] - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Financing
Unsecured revolving credit facility	$ 0	$ 0
Unsecured debt [Member]
Financing
Credit agreement inception date	Jun. 15, 2021
Number of years in credit facility, term	5 years
Current maximum borrowing capacity under credit facility	$ 1,800
Maximum aggregate increase to credit facility allowable	900
Maximum aggregate capacity of credit facility allowable	2,700
Letters of credit	$ 84	$ 66.4
Line of credit facility fee percentage	0.10%
Minimum debt instrument consolidated fixed charge coverage ratio covenant	2.50
Maximum debt instrument consolidated leverage ratio covenant	3.50
Unsecured debt [Member] \| Spread over Alternate Base rate [Member]
Financing
Line of credit current interest rate	0.00%
Unsecured debt [Member] \| Spread over Eurodollar Revolving rate [Member]
Financing
Line of credit current interest rate	0.90%
Unsecured debt [Member] \| Letter of credit [Member]
Financing
Line of credit facility sublimit	$ 200
Unsecured debt [Member] \| Swing line revolver [Member]
Financing
Line of credit facility sublimit	$ 75

FINANCING (Senior Notes) (Narra

FINANCING (Senior Notes) (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)Dentity	Jun. 15, 2021USD ($)	Dec. 31, 2020USD ($)
Financing
Face amount of senior notes	$ 3,850,000		$ 4,150,000
Senior notes [Member]
Financing
Face amount of senior notes	$ 3,900,000
Number of days in annual interest calculation period \| D	360
Number of guarantors under the senior notes \| entity	0
Minimum [Member] \| Senior notes [Member]
Financing
Interest rate of senior notes	1.75%
Maximum [Member] \| Senior notes [Member]
Financing
Interest rate of senior notes	4.35%
3.800% Senior Notes due 2022 [Member] \| Senior notes [Member]
Financing
Face amount of senior notes	$ 300,000		$ 300,000
Interest rate of senior notes	3.80%		3.80%
4.625% Senior Notes due 2021 [Member] \| Senior notes [Member]
Financing
Face amount of senior notes		$ 300,000	$ 300,000
Interest rate of senior notes		4.625%	4.625%
Debt redemption price		$ 300,000

FINANCING (Outstanding Financin

FINANCING (Outstanding Financing Facilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 15, 2021	Dec. 31, 2020
Financing
Senior notes, principal amount	$ 3,850,000		$ 4,150,000
Less: Unamortized discount and debt issuance costs	23,927		26,783
Total long-term debt	3,826,073		4,123,217	[1]
Senior notes [Member]
Financing
Senior notes, principal amount	3,900,000
Senior notes [Member] \| 4.625% Senior Notes due 2021 [Member]
Financing
Senior notes, principal amount		$ 300,000	$ 300,000
Interest rate of senior notes		4.625%	4.625%
Senior notes, effective interest rate			4.643%
Senior notes [Member] \| 3.800% Senior Notes due 2022 [Member]
Financing
Senior notes, principal amount	$ 300,000		$ 300,000
Interest rate of senior notes	3.80%		3.80%
Senior notes, effective interest rate	3.845%		3.845%
Senior notes [Member] \| 3.850% Senior Notes due 2023 [Member]
Financing
Senior notes, principal amount	$ 300,000		$ 300,000
Interest rate of senior notes	3.85%		3.85%
Senior notes, effective interest rate	3.851%		3.851%
Senior notes [Member] \| 3.550% Senior Notes due 2026 [Member]
Financing
Senior notes, principal amount	$ 500,000		$ 500,000
Interest rate of senior notes	3.55%		3.55%
Senior notes, effective interest rate	3.57%		3.57%
Senior notes [Member] \| 3.600% Senior Notes due 2027 [Member]
Financing
Senior notes, principal amount	$ 750,000		$ 750,000
Interest rate of senior notes	3.60%		3.60%
Senior notes, effective interest rate	3.619%		3.619%
Senior notes [Member] \| 4.350% Senior Notes due 2028 [Member]
Financing
Senior notes, principal amount	$ 500,000		$ 500,000
Interest rate of senior notes	4.35%		4.35%
Senior notes, effective interest rate	4.383%		4.383%
Senior notes [Member] \| 3.900% Senior Notes due 2029 [Member]
Financing
Senior notes, principal amount	$ 500,000		$ 500,000
Interest rate of senior notes	3.90%		3.90%
Senior notes, effective interest rate	3.901%		3.901%
Senior notes [Member] \| 4.200% Senior Notes due 2030 [Member]
Financing
Senior notes, principal amount	$ 500,000		$ 500,000
Interest rate of senior notes	4.20%		4.20%
Senior notes, effective interest rate	4.205%		4.205%
Senior notes [Member] \| 1.750% Senior Notes due 2031 [Member]
Financing
Senior notes, principal amount	$ 500,000		$ 500,000
Interest rate of senior notes	1.75%		1.75%
Senior notes, effective interest rate	1.798%		1.798%

[1]	The balance sheet at December 31, 2020, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.

WARRANTIES (Product Warranty Li

WARRANTIES (Product Warranty Liabilities) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)
Warranties
Warranty liabilities, balance at December 31, 2020	$ 65,886
Warranty claims	(94,451)
Warranty accruals	104,054
Foreign currency translation	(18)
Warranty liabilities, balance at September 30, 2021	$ 75,471

SHARE REPURCHASE PROGRAM (Narra

SHARE REPURCHASE PROGRAM (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	May 27, 2021	Feb. 10, 2021	Nov. 08, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Nov. 08, 2021
Share Repurchase Program
Increase in authorized amount	$ 1,500,000	$ 1,000,000
Cumulative authorized amount	$ 17,300,000
Authorization effective period	3 years	3 years
Remaining balance under share repurchase program				$ 974,400,000		$ 974,400,000
Common stock repurchased, shares				1,583	965	3,801	2,634
Common stock repurchased, average price per share				$ 595.96	$ 458.70	$ 528.09	$ 415.28
Common stock repurchased, value				$ 942,955	$ 442,962	$ 2,007,122	$ 1,093,973
Subsequent event [Member]
Share Repurchase Program
Common stock repurchased, shares			400					85,200
Common stock repurchased, average price per share			$ 618.44					$ 193.88
Common stock repurchased, value			$ 246,900					$ 16,500,000

SHARE REPURCHASE PROGRAM (Sched

SHARE REPURCHASE PROGRAM (Schedule of Shares Repurchased) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share Repurchase Program
Shares repurchased	1,583	965	3,801	2,634
Average price per share	$ 595.96	$ 458.70	$ 528.09	$ 415.28
Total investment	$ 942,955	$ 442,962	$ 2,007,122	$ 1,093,973

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021		Sep. 30, 2020
Balance at beginning of period	$ 217,694	$ 589,100	$ 140,258	[1]	$ 397,340
Change in accumulated other comprehensive income (loss)	(5,237)	5,076	(5,673)		(21,925)
Balance at end of period	(140,853)	709,225	(140,853)		709,225
Accumulated other comprehensive income (loss) [Member]
Balance at beginning of period	(2,591)	(22,111)	(2,155)		4,890
Change in accumulated other comprehensive income (loss)	(5,237)	5,076	(5,673)		(21,925)
Balance at end of period	(7,828)	(17,035)	(7,828)		(17,035)
Foreign currency [Member]
Balance at beginning of period	(2,591)	(22,111)	(2,155)		4,890
Change in accumulated other comprehensive income (loss)	(5,237)	5,076	(5,673)		(21,925)
Balance at end of period	$ (7,828)	$ (17,035)	$ (7,828)		$ (17,035)

[1]	The balance sheet at December 31, 2020, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.

REVENUE (Narrative) (Details)

REVENUE (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
REVENUE (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue
Revenue recognized	$ 3,479,570	$ 3,207,638	$ 10,036,070	$ 8,775,720
Loyalty program [Member]
Revenue
Deferred revenue liability	4,500		4,500
Revenue recognized	$ 3,500	$ 3,800	$ 10,700	$ 10,800

REVENUE (Disaggregation of Reve

REVENUE (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue
Sales	$ 3,479,570	$ 3,207,638	$ 10,036,070	$ 8,775,720
DIY customer [Member]
Disaggregation of Revenue
Sales	1,992,778	1,869,079	5,773,345	5,067,676
Professional service provider customer [Member]
Disaggregation of Revenue
Sales	1,408,747	1,264,802	4,032,050	3,510,031
Other customers and sales adjustments [Member]
Disaggregation of Revenue
Sales	$ 78,045	$ 73,757	$ 230,675	$ 198,013

SHARE-BASED COMPENSATION AND _3

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Stock Option) (Narrative) (Details) - Stock option [Member] - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Share-Based Compensation and Benefit Plans
Weighted-average grant date fair value of options awarded	$ 144.99	$ 106.13
Remaining unrecognized compensation expense	$ 33.3
Weighted-average period for cost recognition	2 years 6 months
Employee stock option [Member]
Share-Based Compensation and Benefit Plans
Options expiration period	10 years
Vesting period	4 years
Option vesting rate per year	25.00%

SHARE-BASED COMPENSATION AND _4

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Other Share-Based Compensation) (Narrative) (Details) - Employee stock purchase plan [Member]	9 Months Ended
	Sep. 30, 2021
Share-Based Compensation and Benefit Plans
Employee stock purchase plan stock purchase percentage	85.00%
Restricted stock [Member] \| Minimum [Member]
Share-Based Compensation and Benefit Plans
Vesting period	1 year
Restricted stock [Member] \| Maximum [Member]
Share-Based Compensation and Benefit Plans
Vesting period	3 years

SHARE-BASED COMPENSATION AND _5

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Profit Sharing and Savings Plan) (Narrative) (Detail) - Profit sharing and savings plan [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-Based Compensation and Benefit Plans
Profit sharing and savings plan, employer discretionary contribution			$ 0	$ 0
Profit sharing and savings plan, cost recognized	$ 8,700	$ 8,000	$ 24,600	$ 22,600
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 _6

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Nonqualified Deferred Compensation Plan) (Narrative) (Details) - Nonqualified Deferred Compensation Plan [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Share-Based Compensation and Benefit Plans
Deferred compensation plan obligation	$ 50		$ 50		$ 40.4
Deferred compensation plan cost recognized	$ 0.1	$ 0.1	$ 0.2	$ 0.2

SHARE-BASED COMPENSATION AND _7

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Stock Appreciation Rights) (Narrative) (Details) - Stock appreciation rights (SARs) [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Share-Based Compensation and Benefit Plans
Stock appreciation rights expiration period			10 years
Stock appreciation rights vesting rate per year			25.00%
Vesting period			4 years
Stock appreciation rights outstanding	9,811		9,811
Stock appreciation rights granted during the period, units			1,662
Liability for compensation to be paid for redeemed stock appreciation rights	$ 0.9		$ 0.9		$ 0.3
Compensation expense for share-based compensation	$ 0.2	$ 0.1	$ 0.6	$ 0.2

SHARE-BASED COMPENSATION AND _8

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Summary of Stock Options) (Details) - Employee stock option [Member] - $ / shares shares in Thousands	9 Months Ended
	Sep. 30, 2021
Share-Based Compensation and Benefit Plans
Outstanding at December 31, 2020, shares	1,500
Outstanding at December 31, 2020, weighted-average exercise price	$ 248.52
Granted, shares	123
Granted, weighted-average exercise price	$ 479.73
Exercised, shares	(331)
Exercised, weighted-average exercise price	$ 164.42
Forfeited or expired, shares	(21)
Forfeited or expired, weighted-average exercise price	$ 367.98
Outstanding at September 30, 2021, shares	1,271
Outstanding at September 30, 2021, weighted-average exercise price	$ 290.85
Exercisable at September 30, 2021, shares	856
Exercisable at September 30, 2021, weighted-average exercise price	$ 241.60

SHARE-BASED COMPENSATION AND _9

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Black-Scholes Option Pricing Model) (Details) - Employee stock option [Member]	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Share-Based Compensation and Benefit Plans
Risk-free interest rate	0.81%	0.90%
Expected life	6 years	6 years 1 month 6 days
Expected volatility	30.00%	26.10%
Expected dividend yield	0.00%	0.00%

SHARE-BASED COMPENSATION AND_10

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Stock Option Activity) (Details) - Employee stock option [Member] - Stock option [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-Based Compensation and Benefit Plans
Compensation expense for share-based compensation	$ 4,736	$ 4,473	$ 15,103	$ 13,908
Income tax benefit from compensation expense for share-based compensation	$ 1,169	$ 1,123	$ 3,727	$ 3,492

SHARE-BASED COMPENSATION AND_11

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Other Share-Based Compensation Activity) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Employee stock purchase plan [Member]
Share-Based Compensation and Benefit Plans
Compensation expense for share-based compensation	$ 832	$ 717	$ 2,264	$ 2,060
Income tax benefit from compensation expense for share-based compensation	205	180	559	517
Restricted stock [Member]
Share-Based Compensation and Benefit Plans
Compensation expense for share-based compensation	401	392	1,177	1,094
Income tax benefit from compensation expense for share-based compensation	$ 99	$ 99	$ 291	$ 275

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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator (basic and diluted):
Net income	$ 558,652	$ 527,252	$ 1,645,712	$ 1,359,357
Denominator:
Denominator for basic earnings per share - weighted-average shares	68,608	73,916	69,529	74,377
Effect of stock options	632	670	645	649
Denominator for diluted earnings per share - weighted-average shares and assumed conversion	69,240	74,586	70,174	75,026
Earnings per share - basic	$ 8.14	$ 7.13	$ 23.67	$ 18.28
Earnings per share - assuming dilution	$ 8.07	$ 7.07	$ 23.45	$ 18.12
Antidilutive stock options	133	153	48	327
Weighted-average exercise price per share of antidilutive stock options	$ 467.03	$ 409.07	$ 502.49	$ 384.43

EARNINGS PER SHARE (Computati_2

EARNINGS PER SHARE (Computation of Basic and Diluted Earnings Per Share) (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		130 Months Ended
	Nov. 08, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Nov. 08, 2021
Earnings Per Share
Shares repurchased		1,583	965	3,801	2,634
Common stock repurchased, average price per share		$ 595.96	$ 458.70	$ 528.09	$ 415.28
Common stock repurchased, value		$ 942,955	$ 442,962	$ 2,007,122	$ 1,093,973
Subsequent event [Member]
Earnings Per Share
Shares repurchased	400					85,200
Common stock repurchased, average price per share	$ 618.44					$ 193.88
Common stock repurchased, value	$ 246,900					$ 16,500,000