Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Jan. 25, 2014 | Jun. 28, 2013 | |
Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'TRACTOR SUPPLY CO /DE/ | ' | ' |
Entity Central Index Key | '0000916365 | ' | ' |
Current Fiscal Year End Date | '--12-28 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $7,000,000,000 |
Entity Common Stock, Shares Outstanding | ' | 139,559,289 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 28-Dec-13 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net sales | $5,164,784 | $4,664,120 | $4,232,743 |
Cost of merchandise sold | 3,411,175 | 3,098,066 | 2,825,871 |
Gross profit | 1,753,609 | 1,566,054 | 1,406,872 |
Selling, general and administrative expenses | 1,138,934 | 1,040,287 | 973,822 |
Depreciation and amortization | 100,025 | 88,975 | 80,347 |
Operating income | 514,650 | 436,792 | 352,703 |
Interest expense, net | 557 | 1,055 | 2,087 |
Income before income taxes | 514,093 | 435,737 | 350,616 |
Income tax expense | 185,859 | 159,280 | 127,876 |
Net income | $328,234 | $276,457 | $222,740 |
Net income per share - basic (in dollars per share) | $2.35 | $1.94 | $1.55 |
Net income per share - assuming dilution (in dollars per share) | $2.32 | $1.90 | $1.51 |
Weighted average shares outstanding: | ' | ' | ' |
Shares, basic (in shares) | 139,415 | 142,184 | 143,554 |
Shares, diluted (in shares) | 141,723 | 145,514 | 147,842 |
Dividends declared per common share outstanding (in dollars per share) | $0.49 | $0.36 | $0.22 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $142,743 | $138,630 |
Restricted cash | 0 | 8,400 |
Inventories | 979,308 | 908,116 |
Prepaid expenses and other current assets | 57,359 | 51,808 |
Deferred income taxes | 29,838 | 23,098 |
Total current assets | 1,209,248 | 1,130,052 |
Property and Equipment: | ' | ' |
Land | 73,350 | 61,522 |
Buildings and improvements | 581,938 | 511,188 |
Furniture, fixtures and equipment | 408,021 | 350,224 |
Computer software and hardware | 140,222 | 109,121 |
Construction in progress | 65,312 | 37,122 |
Property and equipment, gross | 1,268,843 | 1,069,177 |
Accumulated depreciation and amortization | -603,911 | -519,179 |
Property and equipment, net | 664,932 | 549,998 |
Goodwill | 10,258 | 10,258 |
Deferred income taxes | 92 | 0 |
Other assets | 18,861 | 16,500 |
Total assets | 1,903,391 | 1,706,808 |
Current liabilities: | ' | ' |
Accounts payable | 316,487 | 320,392 |
Accrued employee compensation | 50,573 | 48,400 |
Other accrued expenses | 155,615 | 148,316 |
Current portion of capital lease obligations | 42 | 38 |
Income taxes payable | 9,424 | 43,359 |
Total current liabilities | 532,141 | 560,505 |
Capital lease obligations, less current maturities | 1,200 | 1,242 |
Deferred income taxes | 0 | 1,477 |
Deferred rent | 76,930 | 76,236 |
Other long-term liabilities | 46,226 | 42,374 |
Total liabilities | 656,497 | 681,834 |
Stockholders' equity: | ' | ' |
Preferred stock | 0 | 0 |
Common stock | 1,331 | 1,307 |
Additional paid-in capital | 452,668 | 361,106 |
Treasury stock, at cost | -838,588 | -709,172 |
Retained earnings | 1,631,483 | 1,371,733 |
Total stockholders' equity | 1,246,894 | 1,024,974 |
Total liabilities and stockholders' equity | $1,903,391 | $1,706,808 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
Stockholders' Equity Attributable to Parent [Abstract] | ' | ' |
Preferred stock, authorized (in shares) | 40,000 | 40,000 |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, issued (in shares) | 166,324,000 | 163,390,000 |
Common stock, outstanding (in shares) | 139,654,000 | 139,007,000 |
Treasury stock, at cost (in shares) | 26,670,000 | 24,383,000 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings |
In Thousands, unless otherwise specified | |||||
Stockholders' equity at Dec. 25, 2010 | $933,242 | $1,261 | $234,653 | ($257,376) | $954,704 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Issuance of common stock under employee stock purchase plan | 2,337 | 1 | 2,336 | ' | ' |
Exercise of stock options and restricted stock units | 29,123 | 24 | 29,099 | ' | ' |
Stock compensation | 15,041 | ' | 15,041 | ' | ' |
Tax benefit of stock options exercised | 17,769 | ' | 17,769 | ' | ' |
Repurchases of shares to satisfy tax obligations | -1,115 | ' | -1,115 | ' | ' |
Repurchase of common stock | -179,997 | ' | ' | -179,997 | ' |
Dividends paid | -30,850 | ' | ' | ' | -30,850 |
Net income | 222,740 | ' | ' | ' | 222,740 |
Stockholders' equity at Dec. 31, 2011 | 1,008,290 | 1,286 | 297,783 | -437,373 | 1,146,594 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Issuance of common stock under employee stock purchase plan | 3,025 | 1 | 3,024 | ' | ' |
Exercise of stock options and restricted stock units | 23,552 | 20 | 23,532 | ' | ' |
Stock compensation | 17,641 | ' | 17,641 | ' | ' |
Tax benefit of stock options exercised | 25,947 | ' | 25,947 | ' | ' |
Repurchases of shares to satisfy tax obligations | -6,821 | ' | -6,821 | ' | ' |
Repurchase of common stock | -271,799 | ' | ' | -271,799 | ' |
Dividends paid | -51,318 | ' | ' | ' | -51,318 |
Net income | 276,457 | ' | ' | ' | 276,457 |
Stockholders' equity at Dec. 29, 2012 | 1,024,974 | 1,307 | 361,106 | -709,172 | 1,371,733 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Issuance of common stock under employee stock purchase plan | 3,596 | 1 | 3,595 | ' | ' |
Exercise of stock options and restricted stock units | 34,722 | 23 | 34,699 | ' | ' |
Stock compensation | 13,893 | ' | 13,893 | ' | ' |
Tax benefit of stock options exercised | 43,517 | ' | 43,517 | ' | ' |
Repurchases of shares to satisfy tax obligations | -4,142 | ' | -4,142 | ' | ' |
Repurchase of common stock | -129,416 | ' | ' | -129,416 | ' |
Dividends paid | -68,484 | ' | ' | ' | -68,484 |
Net income | 328,234 | ' | ' | ' | 328,234 |
Stockholders' equity at Dec. 28, 2013 | $1,246,894 | $1,331 | $452,668 | ($838,588) | $1,631,483 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Issuance of common stock under employee stock purchase plan (in shares) | 87 | 96 | 107 |
Exercise of stock options (in shares) | 2,681 | 2,133 | 2,888 |
Exercise of restricted stock units (in shares) | 166 | 360 | 136 |
Repurchase of common stock (in shares) | 2,287 | 6,112 | 6,151 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $328,234 | $276,457 | $222,740 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 100,025 | 88,975 | 80,347 |
Loss on disposition of property and equipment | 35 | 76 | 955 |
Stock compensation expense | 13,893 | 17,641 | 15,041 |
Excess tax benefit of stock options exercised | -43,517 | -25,836 | -17,435 |
Deferred income taxes | -8,309 | -26,581 | 1,856 |
Change in assets and liabilities | ' | ' | ' |
Inventories | -71,192 | -77,297 | -94,299 |
Prepaid expenses and other current assets | -5,551 | -80 | -17,783 |
Accounts payable | -3,905 | 53,983 | 19,021 |
Accrued employee compensation | 2,173 | 139 | 13,685 |
Other accrued expenses | 9,938 | 8,828 | 6,312 |
Income taxes payable | 9,582 | 57,321 | 21,040 |
Other | 2,275 | 4,676 | 2,664 |
Net cash provided by operating activities | 333,681 | 378,302 | 254,144 |
Cash flows from investing activities: | ' | ' | ' |
Capital expenditures | -218,200 | -152,924 | -166,156 |
Proceeds from sale of property and equipment | 477 | 379 | 752 |
Decrease (increase) in restricted cash | 8,400 | 13,470 | -21,870 |
Proceeds from sale of short-term investments | 0 | 0 | 15,913 |
Net cash used in investing activities | -209,323 | -139,075 | -171,361 |
Cash flows from financing activities: | ' | ' | ' |
Borrowings under revolving credit agreement | 185,000 | 0 | 0 |
Repayments under revolving credit agreement | -185,000 | 0 | 0 |
Excess tax benefit of stock options exercised | 43,517 | 25,836 | 17,435 |
Principal payments under capital lease obligations | -38 | -37 | -90 |
Repurchases of shares to satisfy tax obligations | -4,142 | -6,821 | -1,115 |
Repurchase of common stock | -129,416 | -271,799 | -179,997 |
Net proceeds from issuance of common stock | 38,318 | 26,577 | 31,460 |
Cash dividends paid to stockholders | -68,484 | -51,318 | -30,850 |
Net cash used in financing activities | -120,245 | -277,562 | -163,157 |
Net increase (decrease) in cash and cash equivalents | 4,113 | -38,335 | -80,374 |
Cash and cash equivalents at beginning of year | 138,630 | 176,965 | 257,339 |
Cash and cash equivalents at end of year | 142,743 | 138,630 | 176,965 |
Cash paid during the year for: | ' | ' | ' |
Interest | 780 | 1,219 | 614 |
Income taxes | 188,003 | 128,306 | 103,630 |
Non-cash accruals for construction in progress | $8,258 | $10,897 | $5,027 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Significant Accounting Policies | ' | ||||||||
Significant Accounting Policies: | |||||||||
Nature of Business | |||||||||
Tractor Supply Company (the “Company”) is the largest operator of retail farm and ranch stores in the United States. The Company is focused on supplying the lifestyle needs of recreational farmers and ranchers and those who enjoy the rural lifestyle, as well as tradesmen and small businesses. Stores are located in towns outlying major metropolitan markets and in rural communities. At December 28, 2013, the Company operated a total of 1,276 retail farm and ranch stores in 48 states and also offered a number of products online at TractorSupply.com. | |||||||||
Fiscal Year | |||||||||
The Company's fiscal year includes 52 or 53 weeks and ends on the last Saturday of the calendar year. The fiscal years ended December 28, 2013 and December 29, 2012 consisted of 52 weeks and the fiscal year ended December 31, 2011 consisted of 53 weeks. | |||||||||
Principles of Consolidation | |||||||||
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. | |||||||||
Presentation of Non-Cash Accruals | |||||||||
The presentation of non-cash accruals for construction in progress on the Consolidated Statements of Cash Flows was changed to conform to the presentation used in the current period. | |||||||||
Stock Split | |||||||||
On August 28, 2013, the Company's Board of Directors declared a two-for-one split of its outstanding shares of common stock to be effected in the form of a stock dividend. On September 26, 2013, stockholders of record at the close of business on September 18, 2013, received one additional share of common stock for each share owned by such stockholder. All share and per-share information in the Annual Report on Form 10-K has been retroactively restated to reflect the stock split. The total number of authorized common shares and the par value of each share was not changed by the split. | |||||||||
Management Estimates | |||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States inherently requires estimates and assumptions by management of the Company that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures. Actual results could differ from those estimates. | |||||||||
Significant estimates and assumptions by management primarily impact the following key financial statement areas: | |||||||||
Inventory Valuation | |||||||||
Inventory Impairment Risk | |||||||||
The Company identifies potentially excess and slow-moving inventory by evaluating turn rates, historical and expected future sales trends, age of merchandise, overall inventory levels, current cost of inventory and other benchmarks. The estimated inventory valuation reserve to recognize any impairment in value (i.e. an inability to realize the full carrying value) is based on the Company's aggregate assessment of these valuation indicators under prevailing market conditions and current merchandising strategies. The Company does not believe its merchandise inventories are subject to significant risk of obsolescence in the near term. However, changes in market conditions or consumer purchasing patterns could result in the need for additional reserves. | |||||||||
Shrinkage | |||||||||
The Company performs physical inventories at each store at least once a year, and the Company has established reserves for estimating inventory shrinkage between physical inventory counts. The reserve is established by assessing the chain-wide average shrinkage experience rate, applied to the related periods’ sales volumes. Such assessments are updated on a regular basis for the most recent individual store experiences. The estimated store inventory shrink rate is based on historical experience. The Company believes historical rates are a reasonably accurate reflection of future trends. | |||||||||
Vendor Funding | |||||||||
The Company receives funding from substantially all of its significant merchandise vendors, in support of its business initiatives, through a variety of programs and arrangements, including guaranteed vendor support funds ("vendor support") and volume-based rebate funds ("volume rebates"). The amounts received are subject to terms of vendor agreements, most of which are "evergreen", reflecting the on-going relationship with our significant merchandise vendors. Certain of the Company's agreements, primarily volume rebates, are renegotiated annually, based on expected annual purchases of the vendor’s product. Vendor funding is initially deferred as a reduction of the purchase price of inventory and then recognized as a reduction of cost of merchandise as the related inventory is sold. | |||||||||
During interim periods, the amount of vendor support is known and is debited to vendors systematically; however, volume rebates are estimated during interim periods based upon initial commitments and anticipated purchase levels with applicable vendors. The estimated purchase volume (and related vendor funding through volume rebates) is based on the Company's current knowledge of inventory levels, sales trends and expected customer demand, as well as planned new store openings and relocations. Although the Company believes it can reasonably estimate purchase volume and related volume rebates at interim periods, it is possible that actual year-end results could differ from previously estimated amounts. | |||||||||
Freight | |||||||||
The Company incurs various types of transportation and delivery costs in connection with inventory purchases and distribution. Such costs are included as a component of the overall cost of inventories (on an aggregate basis) and recognized as a component of cost of merchandise sold as the related inventory is sold. | |||||||||
Self-Insurance Reserves | |||||||||
The Company self-insures a significant portion of its employee medical insurance, workers’ compensation and general liability insurance plans. The Company has stop-loss insurance policies to protect it from individual losses over specified dollar values. The full extent of certain claims, especially workers’ compensation and general liability claims, may not become fully determined for several years. Therefore, the Company estimates potential obligations based upon historical data and experience, including actuarial calculations. Although the Company believes the reserves established for these obligations are reasonably estimated, any significant increase in the number of claims or costs associated with claims made under these plans could have a material adverse effect on the Company's financial results. At December 28, 2013, the Company had recorded net insurance reserves of $41.3 million compared to $37.4 million at December 29, 2012. | |||||||||
Sales Tax Audit Reserve | |||||||||
A portion of the Company's sales are to tax-exempt customers, predominantly agricultural-based. The Company obtains exemption information as a necessary part of each tax-exempt transaction. Many of the states in which the Company conducts business will perform audits to verify the Company's compliance with applicable sales tax laws. The business activities of the Company's customers and the intended use of the unique products sold by the Company create a challenging and complex compliance environment. These circumstances also create some risk that the Company could be challenged as to the accuracy of the Company's sales tax compliance. While the Company believes it appropriately enforces sales tax compliance with its customers and endeavors to fully comply with all applicable sales tax regulations, there can be no assurance that upon final completion of such audits, the Company will not have a significant liability for disallowed exemptions. | |||||||||
The Company reviews past audit experience and assessments with applicable states to continually determine if it has potential exposure for non-compliance. Any estimated liability is based on an initial assessment of compliance risk and historical experience with each state. The Company continually reassesses the exposure based on historical audit results, changes in policies, preliminary and final assessments made by state sales tax auditors, and additional documentation that may be provided to reduce the assessment. The reserve for these tax audits can fluctuate depending on numerous factors, including the complexity of agricultural-based exemptions, the ambiguity in state tax regulations, the number of ongoing audits and the length of time required to settle with the state taxing authorities. | |||||||||
Tax Contingencies | |||||||||
The Company's income tax returns are periodically audited by U.S. federal and state tax authorities. These audits include questions regarding tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any time, multiple tax years are subject to audit by the various tax authorities. In evaluating the exposures associated with the Company's various tax filing positions, the Company records a liability for uncertain tax positions taken or expected to be taken in a tax return. A number of years may elapse before a particular matter, for which the Company has established a reserve, is audited and fully resolved or clarified. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company adjusts its tax contingencies reserve and income tax provision in the period in which actual results of a settlement with tax authorities differs from the established reserve, the statute of limitations expires for the relevant tax authority to examine the tax position or when more information becomes available. | |||||||||
The Company's tax contingencies reserve contains uncertainties because management is required to make assumptions and apply judgment to estimate the exposures associated with the Company's various filing positions and whether or not the minimum requirements for recognition of tax benefits have been met. | |||||||||
The effective income tax rate is also affected by changes in tax law, the tax jurisdiction of new stores or business ventures, the level of earnings and the results of tax audits. | |||||||||
Impairment of Long-Lived Assets | |||||||||
Long-lived assets other than goodwill and indefinite-lived intangible assets, which are separately tested for impairment, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. | |||||||||
When evaluating long-lived assets for potential impairment, the Company first compares the carrying value of the asset to the asset’s estimated undiscounted future cash flows. The evaluation for long-lived assets is performed at the lowest level of identifiable cash flows, which is generally the individual store level. The significant assumptions used to determine estimated undiscounted cash flows include cash inflows and outflows directly resulting from the use of those assets in operations, including margin on net sales, payroll and related items, occupancy costs, insurance allocations and other costs to operate a store. If the estimated future cash flows are less than the carrying value of the asset, the Company calculates an impairment loss. The impairment loss calculation compares the carrying value of the asset to the asset’s estimated fair value, which may be based on an estimated future cash flow model. The Company recognizes an impairment loss if the amount of the asset’s carrying value exceeds the asset’s estimated fair value. If the Company recognizes an impairment loss, the adjusted carrying amount of the asset becomes its new cost basis. For a depreciable long-lived asset, the new cost basis will be depreciated (amortized) over the remaining estimated useful life of that asset. | |||||||||
No significant impairment charges were recognized in fiscal 2013 and 2012. In fiscal 2011, the Company recognized impairment charges of $0.5 million related to the write-off of certain assets which were not expected to provide any future benefit to the Company and were determined to have no significant fair value. Impairment charges are included in selling, general and administrative (“SG&A”) expenses in the Consolidated Statements of Income. | |||||||||
Revenue Recognition and Sales Returns | |||||||||
The Company recognizes revenue at the time the customer takes possession of merchandise. If the Company receives payment before completion of its customer obligations (as per the Company's special order and layaway programs), the revenue is deferred until the customer takes possession of the merchandise and the sale is complete. | |||||||||
The Company is required to collect certain taxes and fees from customers on behalf of government agencies and remit such collections to the applicable governmental entity on a periodic basis. These taxes are collected from customers at the time of purchase, but are not included in net sales. The Company records a liability upon collection from the customer and relieves the liability when payments are remitted to the applicable governmental agency. | |||||||||
The Company estimates a liability for sales returns based on a rolling average of historical return trends, and the Company believes that its estimate for sales returns is an accurate reflection of future returns associated with past sales. However, as with any estimate, refund activity may vary from estimated amounts. At December 28, 2013, the Company had a liability of $3.1 million reserved for sales returns, compared to $3.0 million at December 29, 2012. | |||||||||
The Company recognizes revenue when a gift card or merchandise return card is redeemed by the customer and recognizes income when the likelihood of the gift card or merchandise return card being redeemed by the customer is remote (referred to as “breakage”). The gift cards and merchandise return card breakage rate is based upon historical redemption patterns and income is recognized for unredeemed gift cards and merchandise return cards in proportion to those historical redemption patterns. The Company recognized breakage income of $1.6 million, $1.2 million and $1.5 million in fiscal 2013, 2012 and 2011, respectively. | |||||||||
Cost of Merchandise Sold | |||||||||
Cost of merchandise sold includes the total cost of products sold; freight expenses associated with moving merchandise inventories from vendors to distribution centers, from distribution centers to retail stores, and from one distribution center to another; vendor support; damaged, junked or defective product; cash discounts from payments to merchandise vendors; and adjustments for shrinkage (physical inventory losses), lower of cost or market valuation, slow moving product and excess inventory quantities. | |||||||||
Selling, General and Administrative Expenses | |||||||||
SG&A expenses include payroll and benefit costs for retail, distribution center and corporate employees; occupancy costs of retail, distribution center and corporate facilities; advertising; tender costs, including bank charges and costs associated with credit and debit card interchange fees; outside service fees; and other administrative costs, such as computer maintenance, supplies, travel and lodging. | |||||||||
Advertising Costs | |||||||||
Advertising costs consist of expenses incurred in connection with newspaper circulars and customer-targeted direct mail, as well as limited television, radio and other promotions. Costs are expensed when incurred with the exception of television advertising and circular and direct mail promotions, which are expensed upon first showing. Advertising expenses for fiscal 2013, 2012 and 2011 were approximately $65.6 million, $62.6 million and $56.0 million, respectively. Prepaid advertising costs were approximately $0.3 million and $0.9 million at December 28, 2013 and December 29, 2012, respectively. | |||||||||
Warehousing and Distribution Center Costs | |||||||||
Costs incurred at the Company's distribution centers for receiving, warehousing and preparing product for delivery are expensed as incurred and are included in SG&A expenses in the Consolidated Statements of Income. Because the Company does not include these costs in cost of sales, the Company’s gross margin may not be comparable to other retailers that include these costs in the calculation of gross margin. Distribution center costs for fiscal 2013, 2012 and 2011 were approximately $111.3 million, $90.2 million and $76.8 million, respectively. | |||||||||
Pre-opening Costs | |||||||||
Non-capital expenditures incurred in connection with opening new stores, primarily payroll and rent, are expensed as incurred. Pre-opening costs were approximately $7.8 million, $7.1 million and $7.3 million in fiscal 2013, 2012 and 2011, respectively. | |||||||||
Share-Based Compensation | |||||||||
The Company has share-based compensation plans covering certain members of management and non-employee directors, which include incentive and non-qualified stock options and restricted stock units. In addition, the Company offers an employee stock purchase plan to most employees that work at least 20 hours per week. | |||||||||
The Company estimates the fair value of its stock option awards at the date of grant utilizing a Black-Scholes option pricing model. The Black-Scholes option valuation model was developed for use in estimating the fair value of short-term traded options that have no vesting restrictions and are fully transferable. However, key assumptions used in the Black-Scholes model are adjusted to incorporate the unique characteristics of the Company's stock option awards. Option pricing models and generally accepted valuation techniques require management to make subjective assumptions including expected stock price volatility, expected dividend yield, risk-free interest rate and expected life. The Company relies on a blended volatility approach, weighting historical volatility trends and implied volatility, to estimate future volatility assumptions. The risk-free interest rates used were actual U.S. Treasury Constant Maturity rates for bonds matching the expected term of the option on the date of grant. The expected life of the option on the date of grant was estimated based on the Company's historical experience for similar options. | |||||||||
In addition to the key assumptions used in the Black-Scholes model, the estimated forfeiture rate at the time of valuation (which is based on historical experience for similar options) is a critical assumption, as it reduces expense ratably over the vesting period. The Company adjusts this estimate periodically, based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate. | |||||||||
The fair value of the Company's restricted stock unit awards is the closing price of the Company's common stock the day preceding the grant date. | |||||||||
The Company believes its estimates are reasonable in the context of historical experience. Future results will depend on, among other matters, levels of share-based compensation granted in the future, actual forfeiture rates and the timing of option exercises. | |||||||||
Depreciation and Amortization | |||||||||
Depreciation includes expenses related to all retail, distribution center and corporate assets. Amortization includes expenses related to definite-lived intangible assets. | |||||||||
Income Taxes | |||||||||
The Company uses the asset and liability method to account for income taxes whereby deferred tax assets and liabilities are determined based on differences between the financial carrying amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates and laws that are anticipated to be in effect when temporary differences reverse or are settled. The effect of a tax rate change is recognized in the period in which the law is enacted in the provision for income taxes. The Company records a valuation allowance when it is more likely than not that a deferred tax asset will not be realized. | |||||||||
Net Income Per Share | |||||||||
Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average diluted shares outstanding. Dilutive shares are computed using the treasury stock method for stock options and restricted stock units. | |||||||||
Comprehensive Income | |||||||||
The Company’s comprehensive income is equal to net income in fiscal 2013, 2012 and 2011. | |||||||||
Cash and Cash Equivalents | |||||||||
Temporary cash investments, with a maturity of three months or less when purchased, are considered to be cash equivalents. The majority of payments due from banks for customer credit cards are classified as cash and cash equivalents, as they settle within 24-48 hours. | |||||||||
Sales generated through the Company's private label credit cards are not reflected as accounts receivable. Under an agreement with Citi Cards, a division of Citigroup (“Citigroup”), consumer and business credit is extended directly to customers by Citigroup. All credit program and related services are performed and controlled directly by Citigroup. Payments due from Citigroup are classified as cash and cash equivalents as they settle within 24-48 hours. | |||||||||
Restricted Cash | |||||||||
At December 28, 2013, the Company did not have any restricted cash. At December 29, 2012, the Company’s restricted cash consisted of $8.4 million in time deposits held as collateral for a letter of credit at a financial institution outside of the Senior Credit Facility for certain insurance policies. | |||||||||
Fair Value of Financial Instruments | |||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | |||||||||
The Company's financial instruments consist of cash and cash equivalents, restricted cash, short-term receivables, trade payables and long-term debt instruments. Due to their short-term nature, the carrying values of cash and cash equivalents, restricted cash, short-term receivables and trade payables approximate current fair value at each balance sheet date. The Company had no borrowings under the Senior Credit Facility at December 28, 2013 and December 29, 2012. | |||||||||
Inventories | |||||||||
Inventories are stated at the lower of cost, as determined by the average cost method, or market. Inventory cost consists of the direct cost of merchandise including freight. Inventories are net of shrinkage, obsolescence, other valuations and vendor allowances. | |||||||||
Property and Equipment | |||||||||
Property and equipment are carried at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. Improvements to leased premises are amortized using the straight-line method over the initial term of the lease or the useful life of the improvement, whichever is less. Leasehold improvements added late in the lease term are amortized over the term of the lease (including the first renewal option, if the renewal is reasonably assured) or the useful life of the improvement, whichever is less. The following estimated useful lives are generally applied: | |||||||||
Life | |||||||||
Buildings | 30 – 35 years | ||||||||
Leasehold and building improvements | 5 – 35 years | ||||||||
Furniture, fixtures and equipment | 5 – 10 years | ||||||||
Computer software and hardware | 3 – 5 years | ||||||||
The Company entered into agreements with various governmental entities in the states of Kentucky, Georgia and Tennessee to implement tax abatement plans related to its distribution center in Franklin, Kentucky (Simpson County), its distribution center in Macon, Georgia (Bibb County) and its new store support center in Brentwood, Tennessee (Williamson County). The tax abatement plans provide for reduction of real property taxes for specified time frames by legally transferring title to its real property in exchange for industrial revenue bonds. This property was then leased back to the Company. No cash was exchanged. | |||||||||
The lease payments are equal to the amount of the payments on the bonds. The tax abatement period extends through the term of the lease, which coincides with the maturity date of the bonds. At any time, the Company has the option to purchase the real property by paying off the bonds, plus $1. The terms and amounts authorized and drawn under each industrial revenue bond agreement are outlined as follows, as of December 28, 2013: | |||||||||
Bond Term | Bond Authorized Amount (in millions) | Amount Drawn (in millions) | |||||||
Franklin, Kentucky Distribution Center | 30 years | $ | 54 | $ | 51.8 | ||||
Macon, Georgia Distribution Center | 15 years | $ | 58 | $ | 49 | ||||
Brentwood, Tennessee Store Support Center | 10 years | $ | 78 | $ | 50.9 | ||||
Due to the form of these transactions, the Company has not recorded the bonds or the lease obligation associated with the sale lease-back transaction. The original cost of the Company’s property and equipment is recorded on the balance sheet and is being depreciated over its estimated useful life. | |||||||||
Capitalized Software Costs | |||||||||
The Company capitalizes certain costs related to the acquisition and development of software and amortizes these costs using the straight-line method over the estimated useful life of the software, which is three to five years. Computer software consists primarily of third-party software purchased for internal use. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software’s functionality or extends its useful life. These costs are included in computer software and hardware in the accompanying Consolidated Balance Sheets. Certain software costs not meeting the criteria for capitalization are expensed as incurred. | |||||||||
Goodwill | |||||||||
All goodwill is associated with the Company as a whole. Goodwill is not amortized, but is evaluated for impairment annually and whenever events or changes in circumstances indicate the carrying value of the goodwill may not be recoverable. The Company completes its impairment evaluation by performing internal valuation analyses and considering other publicly available market information, as appropriate. | |||||||||
The test for goodwill impairment is a two step process. The first step of the goodwill impairment test, used to identify the potential for impairment, compares the fair value of a reporting unit with the carrying value of its net assets, including goodwill. If the fair value of the reporting unit is less than the carrying value of the reporting unit, the second step of the goodwill impairment test is performed to measure the amount of impairment loss to be recorded, if any. The second step, if required, would compare the implied fair value of goodwill with the current carrying amount of goodwill. If the implied fair value of goodwill is less than the carrying value, an impairment charge would be recorded as a charge to the Company's operations. | |||||||||
In the fourth quarter of fiscal 2013, the Company completed its annual impairment testing of goodwill and no impairment was identified. The Company determined that the fair value of the reporting unit (including goodwill) was in excess of the carrying value of the reporting unit and as such, the second step was not necessary. In reaching this conclusion, the fair value of the reporting unit was determined based on a market approach. Under the market approach, the fair value is based on observed market prices. | |||||||||
Store Closing Costs | |||||||||
The Company regularly evaluates the performance of its stores and periodically closes those that are under-performing. The Company records a liability for costs associated with an exit or disposal activity when the liability is incurred, usually in the period the store closes. Store closing costs were not significant to results of operations for any of the fiscal years presented. | |||||||||
Leases | |||||||||
Assets under capital leases are amortized in accordance with the Company's normal depreciation policy for owned assets or over the lease term, if shorter, and the related charge to operations is included in depreciation expense in the Consolidated Statements of Income. | |||||||||
Certain operating leases include rent increases during the initial lease term. For these leases, the Company recognizes the related rental expense on a straight-line basis over the term of the lease (which includes the pre-opening period of construction, renovation, fixturing and merchandise placement) and records the difference between the expense charged to operations and amounts paid as a deferred rent liability. | |||||||||
The Company occasionally receives reimbursements from landlords to be used towards improving the related store to be leased. Leasehold improvements are recorded at their gross costs including items reimbursed by landlords. Related reimbursements are deferred and amortized on a straight-line basis as a reduction of rent expense over the initial lease term. |
Share_Based_Compensation
Share Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||||||
Share-based compensation expense | ' | ||||||||||||||||
Share-Based Compensation: | |||||||||||||||||
Share-based compensation includes stock option and restricted stock unit awards and certain transactions under the Company's Employee Stock Purchase Plan (the “ESPP”). Share-based compensation expense is recognized based on grant date fair value of all stock option and restricted stock unit awards plus a discount on shares purchased by employees as a part of the ESPP. The discount under the ESPP represents the difference between the purchase date market value and the employee’s purchase price. | |||||||||||||||||
There were no significant modifications to the Company's share-based compensation plans during fiscal 2013. In connection with the 2013 stock split as discussed in Note 1, the number of shares of common stock that are reserved under the ESPP increased from 8.0 million to 16.0 million and the number of shares of common stock that are reserved under the 2009 Stock Incentive Plan increased from 6.2 million to 12.4 million. At December 28, 2013, the Company had approximately 6.5 million shares available for future equity awards under the Company’s 2009 Stock Incentive Plan. | |||||||||||||||||
Share-based compensation expense including changes in expense for modifications of awards was $13.9 million, $17.6 million and $15.0 million for fiscal 2013, 2012 and 2011, respectively. | |||||||||||||||||
Stock Options | |||||||||||||||||
Under the Company's 2009 Stock Incentive Plan, options may be granted to current or prospective officers or employees, non-employee directors and consultants. The per share exercise price of options granted shall not be less than the fair market value of the stock on the date of grant and such options will expire no later than ten years from the date of grant. Vesting of options commences at various anniversary dates following the dates of grant. | |||||||||||||||||
The fair value is separately estimated for each option grant. The fair value of each option is recognized as compensation expense ratably over the vesting period. The Company has estimated the fair value of all stock option awards as of the date of the grant by applying a Black-Scholes pricing valuation model. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. The ranges of key assumptions used in determining the fair value of options granted during fiscal 2013, 2012 and 2011, as well as a summary of the methodology applied to develop each assumption, are as follows: | |||||||||||||||||
Fiscal Year | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected price volatility | 30.7 – 35.4% | 37.1 – 38.5% | 38.0 – 38.7% | ||||||||||||||
Risk-free interest rate | 0.6 – 1.2% | 0.6 – 0.8% | 0.9 – 2.4% | ||||||||||||||
Weighted average expected lives (in years) | 4.7 | 4.7 | 4.7 – 5.6 | ||||||||||||||
Forfeiture rate | 7.00% | 7.00% | 5.5 – 7.6% | ||||||||||||||
Dividend yield | 0.80% | 0.70% | 0.8 – 1.0% | ||||||||||||||
Expected Price Volatility — This is a measure of the amount by which a price has fluctuated or is expected to fluctuate. Prior to 2012, the Company used actual historical changes in the market value of the stock to determine volatility. Beginning in 2012, the Company uses a blended volatility approach, weighting (i) actual historical changes in the market value of the stock at 75% and (ii) average implied volatility using tradable option data at 25%. To calculate historical changes in market value, the Company uses daily market value changes from the date of grant over a past period generally representative of the expected life of the options to determine volatility. To derive implied volatility, the Company relies on publicly traded options, with maturities of six months or greater. The Company believes this blended calculation of historical and expected price volatility provides the most relevant indicator of future volatility. An increase in the expected volatility will increase compensation expense. | |||||||||||||||||
Risk-Free Interest Rate — This is the U.S. Treasury Constant Maturity rate over a term equal to the expected life of the option. An increase in the risk-free interest rate will increase compensation expense. | |||||||||||||||||
Weighted Average Expected Lives — This is the period of time over which the options granted are expected to remain outstanding and is based on historical experience. Options granted generally have a maximum term of ten years. An increase in the expected life will increase compensation expense. | |||||||||||||||||
Forfeiture Rate — This is the estimated percentage of options granted that are expected to be forfeited or cancelled before becoming fully vested. This estimate is based on historical experience. An increase in the forfeiture rate will decrease compensation expense. | |||||||||||||||||
Dividend Yield —This is the estimated dividend yield for the weighted average expected life of the option granted. An increase in the dividend yield will decrease compensation expense. | |||||||||||||||||
The Company issues shares for options when exercised. A summary of stock option activity is as follows: | |||||||||||||||||
Options | Weighted | Weighted Average Fair Value | Weighted Average | Aggregate Intrinsic Value | |||||||||||||
Average Exercise | Remaining | (in thousands) | |||||||||||||||
Price | Contractual Term | ||||||||||||||||
Outstanding December 25, 2010 | 9,029,714 | $ | 10.76 | 6.7 | $ | 121,350 | |||||||||||
Granted | 1,093,310 | 26.09 | $ | 8.87 | |||||||||||||
Exercised | (2,888,014 | ) | 10.09 | ||||||||||||||
Canceled | (131,260 | ) | 16.65 | ||||||||||||||
Outstanding December 31, 2011 | 7,103,750 | $ | 13.29 | 6.5 | $ | 154,782 | |||||||||||
Granted | 1,146,504 | 42.79 | $ | 13.13 | |||||||||||||
Exercised | (2,132,896 | ) | 11.04 | ||||||||||||||
Canceled | (56,976 | ) | 30.39 | ||||||||||||||
Outstanding December 29, 2012 | 6,060,382 | $ | 19.48 | 6.6 | $ | 147,229 | |||||||||||
Granted | 1,027,251 | 51.87 | $ | 14.67 | |||||||||||||
Exercised | (2,681,225 | ) | 12.95 | ||||||||||||||
Canceled | (97,360 | ) | 43.27 | ||||||||||||||
Outstanding December 28, 2013 | 4,309,048 | $ | 30.72 | 7.1 | $ | 193,123 | |||||||||||
Exercisable at December 28, 2013 | 2,289,115 | $ | 18.51 | 5.9 | $ | 130,549 | |||||||||||
The aggregate intrinsic values in the table above represents the total difference between the Company's closing stock price at each year-end and the option exercise price, multiplied by the number of in-the-money options at each year-end. As of December 28, 2013, total unrecognized compensation expense related to non-vested stock options was approximately $15.2 million with a weighted average expense recognition period of 1.3 years. | |||||||||||||||||
There were no material modifications to options in fiscal 2013, 2012 or 2011. | |||||||||||||||||
Other information relative to option activity during fiscal 2013, 2012 and 2011 is as follows (in thousands): | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Total fair value of stock options vested | $ | 10,535 | $ | 8,826 | $ | 7,590 | |||||||||||
Total intrinsic value of stock options exercised | $ | 122,621 | $ | 71,879 | $ | 59,712 | |||||||||||
Restricted Stock Units | |||||||||||||||||
The Company issues shares for restricted stock unit awards once vesting occurs and related restrictions lapse. The units vest over a one to three-year term; some plan participants have elected to defer receipt of shares of common stock upon vesting of restricted stock units, and as a result, shares are not issued until a later date. The status of restricted stock units is presented below: | |||||||||||||||||
Restricted Stock Units | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||
Restricted at December 25, 2010 | 1,100,356 | $ | 10.31 | ||||||||||||||
Granted | 126,968 | 26.62 | |||||||||||||||
Exercised | (176,780 | ) | 10.41 | ||||||||||||||
Forfeited | — | — | |||||||||||||||
Restricted at December 31, 2011 | 1,050,544 | $ | 12.26 | ||||||||||||||
Granted | 80,034 | 43.55 | |||||||||||||||
Exercised | (527,184 | ) | 10.5 | ||||||||||||||
Forfeited | — | — | |||||||||||||||
Restricted at December 29, 2012 | 603,394 | $ | 18.76 | ||||||||||||||
Granted | 59,864 | 51.72 | |||||||||||||||
Exercised | (244,462 | ) | 14 | ||||||||||||||
Forfeited | (5,638 | ) | 36.24 | ||||||||||||||
Restricted at December 28, 2013 | 413,158 | $ | 26.12 | ||||||||||||||
Other information relative to restricted unit activity during fiscal 2013, 2012 and 2011 is as follows (in thousands): | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Total grant date fair value of restricted units vested and issued | $ | 3,422 | $ | 5,533 | $ | 1,840 | |||||||||||
Total intrinsic value of restricted units vested and issued | $ | 12,876 | $ | 21,694 | $ | 4,915 | |||||||||||
For the majority of restricted stock units granted, the number of shares issued on the date the restricted stock units vest is net of shares withheld by the Company for the minimum statutory tax withholding requirements, which the Company pays on behalf of its employees. The Company issued 165,519, 359,924, and 136,014 shares as a result of vested restricted stock units during fiscal 2013, 2012 and 2011, respectively. Although shares withheld are not issued, they are treated similar to common stock repurchases as they reduce the number of shares that would have been issued upon vesting. The amounts are net of 78,943, 167,260, and 40,766 shares withheld to satisfy $4.1 million, $6.8 million, and $1.1 million of employees’ tax obligations during fiscal 2013, 2012 and 2011, respectively. | |||||||||||||||||
There were no material modifications to restricted stock units in fiscal 2013, 2012 or 2011. | |||||||||||||||||
As of December 28, 2013, total unrecognized compensation expense related to non-vested restricted stock units was approximately $2.8 million with a weighted average expense recognition period of 1.7 years. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
The ESPP provides Company employees the opportunity to purchase, through payroll deductions, shares of common stock at a 15% discount. Pursuant to the terms of the ESPP, the Company issued 86,555, 95,836 and 106,666 shares of common stock during fiscal 2013, 2012 and 2011, respectively. The total cost related to the ESPP, including the compensation expense calculations, was approximately $0.9 million, $0.8 million and $0.6 million in fiscal 2013, 2012 and 2011, respectively. There are a maximum of 16.0 million shares of common stock that are reserved under the ESPP. At December 28, 2013, there were approximately 12.3 million remaining shares of common stock reserved for future issuance under the ESPP. |
Credit_Agreement
Credit Agreement | 12 Months Ended |
Dec. 28, 2013 | |
Debt Disclosure [Abstract] | ' |
Credit Agreement | ' |
Senior Credit Facility: | |
The Senior Credit Facility provides for borrowings of up to $250 million (with a sublimit of $20 million for swingline loans). The Senior Credit Facility has an Increase Option for $150 million (subject to additional lender group commitments). This agreement is unsecured and matures in October 2016, with proceeds available to be used for working capital, capital expenditures, dividends, share repurchases and other matters. | |
At December 28, 2013 and December 29, 2012, there were no outstanding borrowings under the Senior Credit Facility. There were $38.2 million and $51.4 million outstanding letters of credit under the Senior Credit Facility as of December 28, 2013 and December 29, 2012, respectively. Borrowings bear interest at either the bank’s base rate (3.25% at December 28, 2013) or the London Inter-Bank Offer Rate (“LIBOR”) (0.16% at December 28, 2013) plus an additional amount ranging from 0.40% to 1.00% per annum (0.50% at December 28, 2013), adjusted quarterly based on our leverage ratio. The Company is also required to pay, quarterly in arrears, a commitment fee for unused capacity ranging from 0.08% to 0.20% per annum (0.10% at December 28, 2013), adjusted quarterly based on the Company's leverage ratio. There are no compensating balance requirements associated with the Senior Credit Facility. | |
The Senior Credit Facility requires quarterly compliance with respect to two material covenants: a fixed charge coverage ratio and a leverage ratio. The fixed charge coverage ratio compares earnings before interest, taxes, depreciation, amortization, stock compensation and rent expense (“consolidated EBITDAR”) to the sum of interest paid and rental expense (excluding any straight-line rent adjustments). The leverage ratio compares total debt plus rental expense (excluding any straight-line rent adjustments) multiplied by a factor of six to consolidated EBITDAR. The Senior Credit Facility also contains certain other restrictions regarding additional indebtedness, capital expenditures, business operations, guarantees, investments, mergers, consolidations and sales of assets, transactions with subsidiaries or affiliates, and liens. The Company was in compliance with all covenants at December 28, 2013. |
Leases
Leases | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Leases [Abstract] | ' | |||||||
Leases | ' | |||||||
Leases: | ||||||||
The Company leases the majority of its retail store locations, its current office space, one distribution center, transportation equipment and other equipment under various non-cancellable operating leases. The leases have varying terms and expire at various dates through 2030. Store leases typically have initial terms of between 10 and 15 years, with two to four optional renewal periods of five years each. Some leases require the payment of contingent rent that is based upon store sales above agreed-upon sales levels for the year. The sales levels vary for each store and are established in the lease agreements. Generally, most of the leases also require that the Company pays associated taxes, insurance and maintenance costs. | ||||||||
Total rent expense for fiscal 2013, 2012 and 2011 was approximately $216.8 million, $200.1 million and $186.8 million, respectively. Total contingent rent expense for fiscal 2013, 2012 and 2011 was insignificant. | ||||||||
Future minimum payments, by year and in the aggregate, under leases with initial or remaining terms of one year or more consist of the following (in thousands): | ||||||||
Capital | Operating | |||||||
Leases | Leases | |||||||
2014 | $ | 146 | $ | 220,389 | ||||
2015 | 146 | 212,472 | ||||||
2016 | 146 | 202,076 | ||||||
2017 | 146 | 189,953 | ||||||
2018 | 146 | 179,350 | ||||||
Thereafter | 1,488 | 851,078 | ||||||
Total minimum lease payments | 2,218 | $ | 1,855,318 | |||||
Amount representing interest | (976 | ) | ||||||
Present value of minimum lease payments | 1,242 | |||||||
Less: current portion | (42 | ) | ||||||
Long-term capital lease obligations | $ | 1,200 | ||||||
Assets under capital leases were as follows (in thousands): | ||||||||
2013 | 2012 | |||||||
Building and improvements | $ | 1,581 | $ | 1,581 | ||||
Computer software and hardware | — | 804 | ||||||
Less: accumulated depreciation and amortization | (782 | ) | (1,534 | ) | ||||
$ | 799 | $ | 851 | |||||
Capital_Stock
Capital Stock | 12 Months Ended | ||||||
Dec. 28, 2013 | |||||||
Equity [Abstract] | ' | ||||||
Capital Stock | ' | ||||||
Capital Stock and Dividends: | |||||||
Capital Stock | |||||||
The authorized capital stock of the Company consists of common stock and preferred stock. The Company is authorized to issue 200 million shares of common stock. The Company is also authorized to issue 40,000 shares of Preferred Stock, with such designations, rights and preferences as may be determined from time to time by the Board of Directors. | |||||||
Dividends | |||||||
During fiscal 2013 and 2012, the Company's Board of Directors declared the following cash dividends: | |||||||
Date Declared | Dividend Amount | Stockholders of Record Date | Date Paid | ||||
Per Share (a) | |||||||
October 30, 2013 | $0.13 | November 18, 2013 | December 3, 2013 | ||||
July 31, 2013 | $0.13 | August 19, 2013 | September 4, 2013 | ||||
May 1, 2013 | $0.13 | May 20, 2013 | June 4, 2013 | ||||
February 6, 2013 | $0.10 | February 25, 2013 | March 12, 2013 | ||||
October 31, 2012 | $0.10 | November 19, 2012 | December 4, 2012 | ||||
August 1, 2012 | $0.10 | August 20, 2012 | September 5, 2012 | ||||
May 2, 2012 | $0.10 | May 21, 2012 | June 5, 2012 | ||||
February 8, 2012 | $0.06 | February 27, 2012 | March 13, 2012 | ||||
(a) All dividend amounts except the October 30, 2013 dividend amount have been split adjusted. | |||||||
On February 5, 2014, the Company's Board of Directors declared a quarterly cash dividend of $0.13 per share of the Company’s common stock. The dividend will be paid on March 11, 2014 to stockholders of record as of the close of business on February 24, 2014. |
Treasury_Stock
Treasury Stock | 12 Months Ended |
Dec. 28, 2013 | |
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | ' |
Treasury Stock | ' |
Treasury Stock: | |
The Company’s Board of Directors has authorized common stock repurchases under the share repurchase program up to $1.0 billion, exclusive of any fees, commissions, or other expenses related to such repurchases, through April 2015. The repurchases may be made from time to time on the open market or in privately negotiated transactions. The timing and amount of any shares repurchased under the program will depend on a variety of factors, including price, corporate and regulatory requirements, capital availability, and other market conditions. Repurchased shares are accounted for at cost and will be held in treasury for future issuance. The program may be limited or terminated at any time without prior notice. | |
The Company repurchased 2.3 million, 6.1 million and 6.2 million shares of common stock under the share repurchase program at a total cost of $129.4 million, $271.8 million and $180.0 million in fiscal 2013, 2012 and 2011, respectively. As of December 28, 2013, the Company had remaining authorization under the share repurchase program of $161.8 million, exclusive of any fees, commissions, or other expenses. |
Net_Income_Per_Share
Net Income Per Share | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Net Income Per Share | ' | ||||||||||
Net Income Per Share: | |||||||||||
Net income per share is calculated as follows (in thousands, except per share amounts): | |||||||||||
2013 | |||||||||||
(52 weeks) | |||||||||||
Net | Shares | Per Share | |||||||||
Income | Amount | ||||||||||
Basic net income per share: | |||||||||||
Net income | $ | 328,234 | 139,415 | $ | 2.35 | ||||||
Diluted net income per share: | |||||||||||
Dilutive stock options and restricted stock units outstanding | — | 2,308 | (0.03 | ) | |||||||
Net income | $ | 328,234 | 141,723 | $ | 2.32 | ||||||
2012 | |||||||||||
(52 weeks) | |||||||||||
Net | Shares | Per Share | |||||||||
Income | Amount | ||||||||||
Basic net income per share: | |||||||||||
Net income | $ | 276,457 | 142,184 | $ | 1.94 | ||||||
Diluted net income per share: | |||||||||||
Dilutive stock options and restricted stock units outstanding | — | 3,330 | (0.04 | ) | |||||||
Net income | $ | 276,457 | 145,514 | $ | 1.9 | ||||||
2011 | |||||||||||
(53 weeks) | |||||||||||
Net | Shares | Per Share | |||||||||
Income | Amount | ||||||||||
Basic net income per share: | |||||||||||
Net income | $ | 222,740 | 143,554 | $ | 1.55 | ||||||
Diluted net income per share: | |||||||||||
Dilutive stock options and restricted stock units outstanding | — | 4,288 | (0.04 | ) | |||||||
Net income | $ | 222,740 | 147,842 | $ | 1.51 | ||||||
Anti-dilutive stock options excluded from the above calculations totaled approximately 0.6 million, 1.0 million and 0.6 million in fiscal 2013, 2012 and 2011, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes: | ||||||||||||
The provision for income taxes consists of the following (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current tax expense: | ||||||||||||
Federal | $ | 175,039 | $ | 165,519 | $ | 112,142 | ||||||
State | 19,129 | 20,342 | 13,878 | |||||||||
Total current | 194,168 | 185,861 | 126,020 | |||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | (5,341 | ) | (20,857 | ) | 3,220 | |||||||
State | (2,968 | ) | (5,724 | ) | (1,364 | ) | ||||||
Total deferred | (8,309 | ) | (26,581 | ) | 1,856 | |||||||
Total provision | $ | 185,859 | $ | 159,280 | $ | 127,876 | ||||||
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. Significant components of the deferred tax assets and liabilities are as follows (in thousands): | ||||||||||||
2013 | 2012 | |||||||||||
Current tax assets: | ||||||||||||
Inventory valuation | $ | 12,133 | $ | 11,981 | ||||||||
Accrued employee benefit costs | 23,184 | 27,636 | ||||||||||
Accrued sales taxes | 1,905 | 3,564 | ||||||||||
Other | 10,388 | 8,439 | ||||||||||
47,610 | 51,620 | |||||||||||
Current tax liabilities: | ||||||||||||
Inventory basis difference | (14,470 | ) | (26,182 | ) | ||||||||
Prepaid expenses | (2,100 | ) | (1,541 | ) | ||||||||
Other | (1,202 | ) | (799 | ) | ||||||||
(17,772 | ) | (28,522 | ) | |||||||||
Net current tax asset | $ | 29,838 | $ | 23,098 | ||||||||
Non-current tax assets: | ||||||||||||
Capital lease obligation basis difference | $ | 987 | $ | 1,001 | ||||||||
Rent expenses in excess of cash payments required | 25,229 | 25,263 | ||||||||||
Deferred compensation | 16,394 | 17,970 | ||||||||||
Workers compensation insurance | 5,734 | — | ||||||||||
Other | 6,923 | 4,574 | ||||||||||
Valuation allowance | — | (862 | ) | |||||||||
55,267 | 47,946 | |||||||||||
Non-current tax liabilities: | ||||||||||||
Depreciation | (51,547 | ) | (47,219 | ) | ||||||||
Capital lease assets basis difference | (489 | ) | (511 | ) | ||||||||
Other | (3,139 | ) | (1,693 | ) | ||||||||
(55,175 | ) | (49,423 | ) | |||||||||
Net non-current tax asset (liability) | $ | 92 | $ | (1,477 | ) | |||||||
Net deferred tax asset | $ | 29,930 | $ | 21,621 | ||||||||
The Company has evaluated the need for a valuation allowance for all or a portion of the deferred tax assets. The Company believes that all of the deferred tax assets will more likely than not be realized through future earnings. The Company had state tax credit carryforwards of $2.3 million and $2.6 million as of December 28, 2013 and December 29, 2012, respectively, with varying dates of expiration between 2014 and 2024. The Company provided no valuation allowance as of December 28, 2013 and a $0.9 million valuation allowance as of December 29, 2012 for state tax credit carryforwards, due to the uncertainty of utilizing these credits before their expiration dates. A reconciliation of the provision for income taxes to the amounts computed at the federal statutory rate is as follows (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Tax provision at statutory rate | $ | 179,933 | $ | 152,508 | $ | 122,715 | ||||||
Tax effect of: | ||||||||||||
State income taxes, net of federal tax benefits | 10,505 | 9,502 | 8,134 | |||||||||
Permanent differences | (4,579 | ) | (2,730 | ) | (2,973 | ) | ||||||
$ | 185,859 | $ | 159,280 | $ | 127,876 | |||||||
The Company and its affiliates file income tax returns in the U.S. and various state and local jurisdictions. With few exceptions, the Company is no longer subject to federal, state and local income tax examinations by tax authorities for years before 2009. The IRS commenced an examination of the Company’s federal tax returns for 2006 and 2007 which was completed in February 2011, and no IRS adjustments were proposed. In 2012, the IRS commenced an audit of the 2010 federal tax return. As of December 28, 2013, the audit was not finalized. Various states have completed an examination of our income tax returns for 2009 through 2011 with minimal adjustments. | ||||||||||||
The total amount of unrecognized tax benefits that, if recognized, would decrease the effective tax rate, is $1.6 million at December 28, 2013. In addition, the Company recognizes current interest and penalties accrued related to these uncertain tax positions as interest expense, and the amount is not material to the Consolidated Statements of Income. The Company estimates the overall decrease in unrecognized tax benefits in the next twelve months will range between $0.1 million and $0.3 million. A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (exclusive of interest and penalties) is as follows (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance at beginning of year | $ | 5,898 | $ | 5,774 | $ | 4,801 | ||||||
Additions based on tax positions related to the current year | 741 | 1,358 | 1,611 | |||||||||
Additions for tax positions of prior years | — | — | — | |||||||||
Reductions for tax positions of prior years | (3,937 | ) | (1,234 | ) | (638 | ) | ||||||
Reductions due to audit results | (220 | ) | — | — | ||||||||
Balance at end of year | $ | 2,482 | $ | 5,898 | $ | 5,774 | ||||||
Retirement_Benefit_Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 28, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Retirement Benefit Plans | ' |
Retirement Benefit Plans: | |
The Company has a defined contribution benefit plan, the Tractor Supply Company 401(k) Retirement Savings Plan (the “Plan”), which provides retirement benefits for eligible employees. The Company matches (in cash) 100% of the employee’s elective contributions up to 3% of eligible compensation plus 50% of the employee’s elective contributions from 3% to 6% of eligible compensation. In no event shall the total Company match made on behalf of the employee exceed 4.5% of the employee’s eligible compensation. All current contributions are immediately vested. Company contributions to the Plan during fiscal 2013, 2012 and 2011, were approximately $4.9 million, $4.4 million and $4.3 million, respectively. | |
The Company offers, through a deferred compensation program, the opportunity for certain qualifying employees to elect to defer a portion of their annual base salary and/or their annual incentive bonus. Under the deferred compensation program, a percentage of the participants' salary deferral is matched by the Company, limited to a maximum annual matching contribution of $4,500. The Company’s contributions, including accrued interest, were $0.5 million, $0.4 million and $0.4 million in each of the fiscal years 2013, 2012 and 2011, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies: | |
Construction and Real Estate Commitments | |
At December 28, 2013, the Company had commitments related to construction projects for new stores totaling approximately $6.0 million and commitments related to the construction of its new store support center in Brentwood, Tennessee of approximately $22.0 million. | |
Litigation | |
The Company responded to a Request for Information from the United States Environmental Protection Agency (“EPA”) in the first quarter of fiscal 2009 relating to certain recreational vehicles and non-road spark ignition engines sold by the Company. In the first quarter of fiscal 2011, the Environmental Enforcement Section of the Department of Justice (“DOJ”), on behalf of the EPA, informed the Company that it believed the Company had violated the Clean Air Act by importing or causing the importation of certain engines that were noncompliant, and that unless the DOJ and the Company were able to reach a settlement, the DOJ was prepared to commence a civil action. The engines were purchased by the Company pursuant to agreements with vendors under which the vendors represented that their products complied with all applicable laws and regulations and under which the vendors agreed to indemnify the Company for any liabilities or costs relating to, among other matters, the noncompliance or alleged noncompliance of their products. The Company notified these vendors of the EPA's position and has worked with these vendors to provide additional information to the DOJ and EPA regarding the alleged violations. As a result of this process, the Company believes it has provided evidence that many of the products identified by the DOJ and EPA in early 2011 were, in fact, in compliance with the Clean Air Act and that most of the remaining issues relate to products purchased from one vendor. The vendor of these products and the Company are engaged in settlement discussions with the DOJ and EPA that would call for the payment of a civil penalty by and certain injunctive relief against the Company. The Company does not expect the resolution of this matters to have a material adverse effect on its financial condition, results of operations or cash flows. The Company does not believe it is reasonably possible that a loss in excess of the amount accrued will be incurred. | |
The Company is also involved in various litigation matters arising in the ordinary course of business. The Company believes that any estimated loss related to such matters has been adequately provided in accrued liabilities to the extent probable and reasonably estimable. Accordingly, the Company currently expects these matters will be resolved without material adverse effect on its consolidated financial position, results of operations or cash flows. |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting | ' | ||||||||
Segment Reporting: | |||||||||
The Company has one reportable segment which is the retail sale of farm and ranch products. The Company manages the business on the basis of one operating segment. The following chart indicates the percentage of sales represented by each major product category during fiscal 2013, 2012, and 2011: | |||||||||
Percent of Sales | |||||||||
Product Category: | 2013 | 2012 | 2011 | ||||||
Livestock and Pet | 43 | % | 42 | % | 40 | % | |||
Hardware, Tools and Truck | 23 | 23 | 23 | ||||||
Seasonal, Gift and Toy Products | 20 | 20 | 21 | ||||||
Clothing and Footwear | 9 | 9 | 10 | ||||||
Agriculture | 5 | 6 | 6 | ||||||
Total | 100 | % | 100 | % | 100 | % |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Nature of Business | ' | ||||||||
Nature of Business | |||||||||
Tractor Supply Company (the “Company”) is the largest operator of retail farm and ranch stores in the United States. The Company is focused on supplying the lifestyle needs of recreational farmers and ranchers and those who enjoy the rural lifestyle, as well as tradesmen and small businesses. Stores are located in towns outlying major metropolitan markets and in rural communities. At December 28, 2013, the Company operated a total of 1,276 retail farm and ranch stores in 48 states and also offered a number of products online at TractorSupply.com. | |||||||||
Fiscal Year | ' | ||||||||
Fiscal Year | |||||||||
The Company's fiscal year includes 52 or 53 weeks and ends on the last Saturday of the calendar year. The fiscal years ended December 28, 2013 and December 29, 2012 consisted of 52 weeks and the fiscal year ended December 31, 2011 consisted of 53 weeks. | |||||||||
Principles of Consolidation | ' | ||||||||
Principles of Consolidation | |||||||||
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. | |||||||||
Presentation of Non Cash Accruals | ' | ||||||||
Presentation of Non-Cash Accruals | |||||||||
The presentation of non-cash accruals for construction in progress on the Consolidated Statements of Cash Flows was changed to conform to the presentation used in the current period. | |||||||||
Stock Split | ' | ||||||||
Stock Split | |||||||||
On August 28, 2013, the Company's Board of Directors declared a two-for-one split of its outstanding shares of common stock to be effected in the form of a stock dividend. On September 26, 2013, stockholders of record at the close of business on September 18, 2013, received one additional share of common stock for each share owned by such stockholder. All share and per-share information in the Annual Report on Form 10-K has been retroactively restated to reflect the stock split. The total number of authorized common shares and the par value of each share was not changed by the split. | |||||||||
Management Estimates | ' | ||||||||
Management Estimates | |||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States inherently requires estimates and assumptions by management of the Company that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures. Actual results could differ from those estimates. | |||||||||
Inventory Impairment Risk | ' | ||||||||
Inventory Impairment Risk | |||||||||
The Company identifies potentially excess and slow-moving inventory by evaluating turn rates, historical and expected future sales trends, age of merchandise, overall inventory levels, current cost of inventory and other benchmarks. The estimated inventory valuation reserve to recognize any impairment in value (i.e. an inability to realize the full carrying value) is based on the Company's aggregate assessment of these valuation indicators under prevailing market conditions and current merchandising strategies. The Company does not believe its merchandise inventories are subject to significant risk of obsolescence in the near term. However, changes in market conditions or consumer purchasing patterns could result in the need for additional reserves. | |||||||||
Shrinkage | ' | ||||||||
Shrinkage | |||||||||
The Company performs physical inventories at each store at least once a year, and the Company has established reserves for estimating inventory shrinkage between physical inventory counts. The reserve is established by assessing the chain-wide average shrinkage experience rate, applied to the related periods’ sales volumes. Such assessments are updated on a regular basis for the most recent individual store experiences. The estimated store inventory shrink rate is based on historical experience. The Company believes historical rates are a reasonably accurate reflection of future trends. | |||||||||
Vendor Funding | ' | ||||||||
Vendor Funding | |||||||||
The Company receives funding from substantially all of its significant merchandise vendors, in support of its business initiatives, through a variety of programs and arrangements, including guaranteed vendor support funds ("vendor support") and volume-based rebate funds ("volume rebates"). The amounts received are subject to terms of vendor agreements, most of which are "evergreen", reflecting the on-going relationship with our significant merchandise vendors. Certain of the Company's agreements, primarily volume rebates, are renegotiated annually, based on expected annual purchases of the vendor’s product. Vendor funding is initially deferred as a reduction of the purchase price of inventory and then recognized as a reduction of cost of merchandise as the related inventory is sold. | |||||||||
During interim periods, the amount of vendor support is known and is debited to vendors systematically; however, volume rebates are estimated during interim periods based upon initial commitments and anticipated purchase levels with applicable vendors. The estimated purchase volume (and related vendor funding through volume rebates) is based on the Company's current knowledge of inventory levels, sales trends and expected customer demand, as well as planned new store openings and relocations. Although the Company believes it can reasonably estimate purchase volume and related volume rebates at interim periods, it is possible that actual year-end results could differ from previously estimated amounts. | |||||||||
Freight | ' | ||||||||
Freight | |||||||||
The Company incurs various types of transportation and delivery costs in connection with inventory purchases and distribution. Such costs are included as a component of the overall cost of inventories (on an aggregate basis) and recognized as a component of cost of merchandise sold as the related inventory is sold. | |||||||||
Self-Insurance Reserves | ' | ||||||||
Self-Insurance Reserves | |||||||||
The Company self-insures a significant portion of its employee medical insurance, workers’ compensation and general liability insurance plans. The Company has stop-loss insurance policies to protect it from individual losses over specified dollar values. The full extent of certain claims, especially workers’ compensation and general liability claims, may not become fully determined for several years. Therefore, the Company estimates potential obligations based upon historical data and experience, including actuarial calculations. Although the Company believes the reserves established for these obligations are reasonably estimated, any significant increase in the number of claims or costs associated with claims made under these plans could have a material adverse effect on the Company's financial results. | |||||||||
Sales Tax Audit Reserve | ' | ||||||||
Sales Tax Audit Reserve | |||||||||
A portion of the Company's sales are to tax-exempt customers, predominantly agricultural-based. The Company obtains exemption information as a necessary part of each tax-exempt transaction. Many of the states in which the Company conducts business will perform audits to verify the Company's compliance with applicable sales tax laws. The business activities of the Company's customers and the intended use of the unique products sold by the Company create a challenging and complex compliance environment. These circumstances also create some risk that the Company could be challenged as to the accuracy of the Company's sales tax compliance. While the Company believes it appropriately enforces sales tax compliance with its customers and endeavors to fully comply with all applicable sales tax regulations, there can be no assurance that upon final completion of such audits, the Company will not have a significant liability for disallowed exemptions. | |||||||||
The Company reviews past audit experience and assessments with applicable states to continually determine if it has potential exposure for non-compliance. Any estimated liability is based on an initial assessment of compliance risk and historical experience with each state. The Company continually reassesses the exposure based on historical audit results, changes in policies, preliminary and final assessments made by state sales tax auditors, and additional documentation that may be provided to reduce the assessment. The reserve for these tax audits can fluctuate depending on numerous factors, including the complexity of agricultural-based exemptions, the ambiguity in state tax regulations, the number of ongoing audits and the length of time required to settle with the state taxing authorities. | |||||||||
Tax Contingencies | ' | ||||||||
Tax Contingencies | |||||||||
The Company's income tax returns are periodically audited by U.S. federal and state tax authorities. These audits include questions regarding tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any time, multiple tax years are subject to audit by the various tax authorities. In evaluating the exposures associated with the Company's various tax filing positions, the Company records a liability for uncertain tax positions taken or expected to be taken in a tax return. A number of years may elapse before a particular matter, for which the Company has established a reserve, is audited and fully resolved or clarified. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company adjusts its tax contingencies reserve and income tax provision in the period in which actual results of a settlement with tax authorities differs from the established reserve, the statute of limitations expires for the relevant tax authority to examine the tax position or when more information becomes available. | |||||||||
The Company's tax contingencies reserve contains uncertainties because management is required to make assumptions and apply judgment to estimate the exposures associated with the Company's various filing positions and whether or not the minimum requirements for recognition of tax benefits have been met. | |||||||||
The effective income tax rate is also affected by changes in tax law, the tax jurisdiction of new stores or business ventures, the level of earnings and the results of tax audits. | |||||||||
Impairment of Long-Lived Assets | ' | ||||||||
Impairment of Long-Lived Assets | |||||||||
Long-lived assets other than goodwill and indefinite-lived intangible assets, which are separately tested for impairment, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. | |||||||||
When evaluating long-lived assets for potential impairment, the Company first compares the carrying value of the asset to the asset’s estimated undiscounted future cash flows. The evaluation for long-lived assets is performed at the lowest level of identifiable cash flows, which is generally the individual store level. The significant assumptions used to determine estimated undiscounted cash flows include cash inflows and outflows directly resulting from the use of those assets in operations, including margin on net sales, payroll and related items, occupancy costs, insurance allocations and other costs to operate a store. If the estimated future cash flows are less than the carrying value of the asset, the Company calculates an impairment loss. The impairment loss calculation compares the carrying value of the asset to the asset’s estimated fair value, which may be based on an estimated future cash flow model. The Company recognizes an impairment loss if the amount of the asset’s carrying value exceeds the asset’s estimated fair value. If the Company recognizes an impairment loss, the adjusted carrying amount of the asset becomes its new cost basis. For a depreciable long-lived asset, the new cost basis will be depreciated (amortized) over the remaining estimated useful life of that asset. | |||||||||
Impairment charges are included in selling, general and administrative (“SG&A”) expenses in the Consolidated Statements of Income. | |||||||||
Revenue Recognition | ' | ||||||||
The Company recognizes revenue at the time the customer takes possession of merchandise. If the Company receives payment before completion of its customer obligations (as per the Company's special order and layaway programs), the revenue is deferred until the customer takes possession of the merchandise and the sale is complete. | |||||||||
Sales Taxes | ' | ||||||||
The Company is required to collect certain taxes and fees from customers on behalf of government agencies and remit such collections to the applicable governmental entity on a periodic basis. These taxes are collected from customers at the time of purchase, but are not included in net sales. The Company records a liability upon collection from the customer and relieves the liability when payments are remitted to the applicable governmental agency. | |||||||||
Revenue Recognition Sales Returns | ' | ||||||||
The Company estimates a liability for sales returns based on a rolling average of historical return trends, and the Company believes that its estimate for sales returns is an accurate reflection of future returns associated with past sales. However, as with any estimate, refund activity may vary from estimated amounts. | |||||||||
Revenue Recognition Gift Cards | ' | ||||||||
The Company recognizes revenue when a gift card or merchandise return card is redeemed by the customer and recognizes income when the likelihood of the gift card or merchandise return card being redeemed by the customer is remote (referred to as “breakage”). The gift cards and merchandise return card breakage rate is based upon historical redemption patterns and income is recognized for unredeemed gift cards and merchandise return cards in proportion to those historical redemption patterns. | |||||||||
Cost of Merchandise Sold | ' | ||||||||
Cost of Merchandise Sold | |||||||||
Cost of merchandise sold includes the total cost of products sold; freight expenses associated with moving merchandise inventories from vendors to distribution centers, from distribution centers to retail stores, and from one distribution center to another; vendor support; damaged, junked or defective product; cash discounts from payments to merchandise vendors; and adjustments for shrinkage (physical inventory losses), lower of cost or market valuation, slow moving product and excess inventory quantities. | |||||||||
Selling, General and Administrative Expenses | ' | ||||||||
Selling, General and Administrative Expenses | |||||||||
SG&A expenses include payroll and benefit costs for retail, distribution center and corporate employees; occupancy costs of retail, distribution center and corporate facilities; advertising; tender costs, including bank charges and costs associated with credit and debit card interchange fees; outside service fees; and other administrative costs, such as computer maintenance, supplies, travel and lodging. | |||||||||
Advertising Costs | ' | ||||||||
Advertising Costs | |||||||||
Advertising costs consist of expenses incurred in connection with newspaper circulars and customer-targeted direct mail, as well as limited television, radio and other promotions. Costs are expensed when incurred with the exception of television advertising and circular and direct mail promotions, which are expensed upon first showing. | |||||||||
Warehousing and Distribution Costs | ' | ||||||||
Warehousing and Distribution Center Costs | |||||||||
Costs incurred at the Company's distribution centers for receiving, warehousing and preparing product for delivery are expensed as incurred and are included in SG&A expenses in the Consolidated Statements of Income. Because the Company does not include these costs in cost of sales, the Company’s gross margin may not be comparable to other retailers that include these costs in the calculation of gross margin. | |||||||||
Pre-opening Costs | ' | ||||||||
Pre-opening Costs | |||||||||
Non-capital expenditures incurred in connection with opening new stores, primarily payroll and rent, are expensed as incurred. | |||||||||
Share-based Compensation | ' | ||||||||
Share-Based Compensation | |||||||||
The Company has share-based compensation plans covering certain members of management and non-employee directors, which include incentive and non-qualified stock options and restricted stock units. In addition, the Company offers an employee stock purchase plan to most employees that work at least 20 hours per week. | |||||||||
The Company estimates the fair value of its stock option awards at the date of grant utilizing a Black-Scholes option pricing model. The Black-Scholes option valuation model was developed for use in estimating the fair value of short-term traded options that have no vesting restrictions and are fully transferable. However, key assumptions used in the Black-Scholes model are adjusted to incorporate the unique characteristics of the Company's stock option awards. Option pricing models and generally accepted valuation techniques require management to make subjective assumptions including expected stock price volatility, expected dividend yield, risk-free interest rate and expected life. The Company relies on a blended volatility approach, weighting historical volatility trends and implied volatility, to estimate future volatility assumptions. The risk-free interest rates used were actual U.S. Treasury Constant Maturity rates for bonds matching the expected term of the option on the date of grant. The expected life of the option on the date of grant was estimated based on the Company's historical experience for similar options. | |||||||||
In addition to the key assumptions used in the Black-Scholes model, the estimated forfeiture rate at the time of valuation (which is based on historical experience for similar options) is a critical assumption, as it reduces expense ratably over the vesting period. The Company adjusts this estimate periodically, based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate. | |||||||||
The fair value of the Company's restricted stock unit awards is the closing price of the Company's common stock the day preceding the grant date. | |||||||||
The Company believes its estimates are reasonable in the context of historical experience. Future results will depend on, among other matters, levels of share-based compensation granted in the future, actual forfeiture rates and the timing of option exercises. | |||||||||
Depreciation and Amortization | ' | ||||||||
Depreciation and Amortization | |||||||||
Depreciation includes expenses related to all retail, distribution center and corporate assets. Amortization includes expenses related to definite-lived intangible assets. | |||||||||
Income Tax | ' | ||||||||
Income Taxes | |||||||||
The Company uses the asset and liability method to account for income taxes whereby deferred tax assets and liabilities are determined based on differences between the financial carrying amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates and laws that are anticipated to be in effect when temporary differences reverse or are settled. The effect of a tax rate change is recognized in the period in which the law is enacted in the provision for income taxes. The Company records a valuation allowance when it is more likely than not that a deferred tax asset will not be realized. | |||||||||
Net Income Per Share | ' | ||||||||
Net Income Per Share | |||||||||
Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average diluted shares outstanding. Dilutive shares are computed using the treasury stock method for stock options and restricted stock units. | |||||||||
Comprehensive Income | ' | ||||||||
Comprehensive Income | |||||||||
The Company’s comprehensive income is equal to net income in fiscal 2013, 2012 and 2011. | |||||||||
Cash and Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents | |||||||||
Temporary cash investments, with a maturity of three months or less when purchased, are considered to be cash equivalents. The majority of payments due from banks for customer credit cards are classified as cash and cash equivalents, as they settle within 24-48 hours. | |||||||||
Sales generated through the Company's private label credit cards are not reflected as accounts receivable. Under an agreement with Citi Cards, a division of Citigroup (“Citigroup”), consumer and business credit is extended directly to customers by Citigroup. All credit program and related services are performed and controlled directly by Citigroup. Payments due from Citigroup are classified as cash and cash equivalents as they settle within 24-48 hours | |||||||||
Restricted Cash | ' | ||||||||
Restricted Cash | |||||||||
At December 28, 2013, the Company did not have any restricted cash. At December 29, 2012, the Company’s restricted cash consisted of $8.4 million in time deposits held as collateral for a letter of credit at a financial institution outside of the Senior Credit Facility for certain insurance policies. | |||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories are stated at the lower of cost, as determined by the average cost method, or market. Inventory cost consists of the direct cost of merchandise including freight. Inventories are net of shrinkage, obsolescence, other valuations and vendor allowances. | |||||||||
Fair Value of Financial Instruments | ' | ||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | |||||||||
The Company's financial instruments consist of cash and cash equivalents, restricted cash, short-term receivables, trade payables and long-term debt instruments. Due to their short-term nature, the carrying values of cash and cash equivalents, restricted cash, short-term receivables and trade payables approximate current fair value at each balance sheet date. | |||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
Property and equipment are carried at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. Improvements to leased premises are amortized using the straight-line method over the initial term of the lease or the useful life of the improvement, whichever is less. Leasehold improvements added late in the lease term are amortized over the term of the lease (including the first renewal option, if the renewal is reasonably assured) or the useful life of the improvement, whichever is less. The following estimated useful lives are generally applied: | |||||||||
Life | |||||||||
Buildings | 30 – 35 years | ||||||||
Leasehold and building improvements | 5 – 35 years | ||||||||
Furniture, fixtures and equipment | 5 – 10 years | ||||||||
Computer software and hardware | 3 – 5 years | ||||||||
The Company entered into agreements with various governmental entities in the states of Kentucky, Georgia and Tennessee to implement tax abatement plans related to its distribution center in Franklin, Kentucky (Simpson County), its distribution center in Macon, Georgia (Bibb County) and its new store support center in Brentwood, Tennessee (Williamson County). The tax abatement plans provide for reduction of real property taxes for specified time frames by legally transferring title to its real property in exchange for industrial revenue bonds. This property was then leased back to the Company. No cash was exchanged. | |||||||||
The lease payments are equal to the amount of the payments on the bonds. The tax abatement period extends through the term of the lease, which coincides with the maturity date of the bonds. At any time, the Company has the option to purchase the real property by paying off the bonds, plus $1. The terms and amounts authorized and drawn under each industrial revenue bond agreement are outlined as follows, as of December 28, 2013: | |||||||||
Bond Term | Bond Authorized Amount (in millions) | Amount Drawn (in millions) | |||||||
Franklin, Kentucky Distribution Center | 30 years | $ | 54 | $ | 51.8 | ||||
Macon, Georgia Distribution Center | 15 years | $ | 58 | $ | 49 | ||||
Brentwood, Tennessee Store Support Center | 10 years | $ | 78 | $ | 50.9 | ||||
Due to the form of these transactions, the Company has not recorded the bonds or the lease obligation associated with the sale lease-back transaction. The original cost of the Company’s property and equipment is recorded on the balance sheet and is being depreciated over its estimated useful life. | |||||||||
Capitalized Software Costs | ' | ||||||||
Capitalized Software Costs | |||||||||
The Company capitalizes certain costs related to the acquisition and development of software and amortizes these costs using the straight-line method over the estimated useful life of the software, which is three to five years. Computer software consists primarily of third-party software purchased for internal use. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software’s functionality or extends its useful life. These costs are included in computer software and hardware in the accompanying Consolidated Balance Sheets. Certain software costs not meeting the criteria for capitalization are expensed as incurred. | |||||||||
Goodwill | ' | ||||||||
Goodwill | |||||||||
All goodwill is associated with the Company as a whole. Goodwill is not amortized, but is evaluated for impairment annually and whenever events or changes in circumstances indicate the carrying value of the goodwill may not be recoverable. The Company completes its impairment evaluation by performing internal valuation analyses and considering other publicly available market information, as appropriate. | |||||||||
The test for goodwill impairment is a two step process. The first step of the goodwill impairment test, used to identify the potential for impairment, compares the fair value of a reporting unit with the carrying value of its net assets, including goodwill. If the fair value of the reporting unit is less than the carrying value of the reporting unit, the second step of the goodwill impairment test is performed to measure the amount of impairment loss to be recorded, if any. The second step, if required, would compare the implied fair value of goodwill with the current carrying amount of goodwill. If the implied fair value of goodwill is less than the carrying value, an impairment charge would be recorded as a charge to the Company's operations. | |||||||||
In the fourth quarter of fiscal 2013, the Company completed its annual impairment testing of goodwill and no impairment was identified. The Company determined that the fair value of the reporting unit (including goodwill) was in excess of the carrying value of the reporting unit and as such, the second step was not necessary. In reaching this conclusion, the fair value of the reporting unit was determined based on a market approach. Under the market approach, the fair value is based on observed market prices. | |||||||||
Store Closing Costs | ' | ||||||||
Store Closing Costs | |||||||||
The Company regularly evaluates the performance of its stores and periodically closes those that are under-performing. The Company records a liability for costs associated with an exit or disposal activity when the liability is incurred, usually in the period the store closes. Store closing costs were not significant to results of operations for any of the fiscal years presented. | |||||||||
Leases | ' | ||||||||
Leases | |||||||||
Assets under capital leases are amortized in accordance with the Company's normal depreciation policy for owned assets or over the lease term, if shorter, and the related charge to operations is included in depreciation expense in the Consolidated Statements of Income. | |||||||||
Certain operating leases include rent increases during the initial lease term. For these leases, the Company recognizes the related rental expense on a straight-line basis over the term of the lease (which includes the pre-opening period of construction, renovation, fixturing and merchandise placement) and records the difference between the expense charged to operations and amounts paid as a deferred rent liability. | |||||||||
The Company occasionally receives reimbursements from landlords to be used towards improving the related store to be leased. Leasehold improvements are recorded at their gross costs including items reimbursed by landlords. Related reimbursements are deferred and amortized on a straight-line basis as a reduction of rent expense over the initial lease term. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Estimated useful lives of property, plant and equipment | ' | ||||||||
The following estimated useful lives are generally applied: | |||||||||
Life | |||||||||
Buildings | 30 – 35 years | ||||||||
Leasehold and building improvements | 5 – 35 years | ||||||||
Furniture, fixtures and equipment | 5 – 10 years | ||||||||
Computer software and hardware | 3 – 5 years | ||||||||
Industrial Revenue Bonds | ' | ||||||||
The terms and amounts authorized and drawn under each industrial revenue bond agreement are outlined as follows, as of December 28, 2013: | |||||||||
Bond Term | Bond Authorized Amount (in millions) | Amount Drawn (in millions) | |||||||
Franklin, Kentucky Distribution Center | 30 years | $ | 54 | $ | 51.8 | ||||
Macon, Georgia Distribution Center | 15 years | $ | 58 | $ | 49 | ||||
Brentwood, Tennessee Store Support Center | 10 years | $ | 78 | $ | 50.9 | ||||
Share_Based_Compensation_Table
Share Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||||||
Key assumptions in fair value determination | ' | ||||||||||||||||
The ranges of key assumptions used in determining the fair value of options granted during fiscal 2013, 2012 and 2011, as well as a summary of the methodology applied to develop each assumption, are as follows: | |||||||||||||||||
Fiscal Year | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected price volatility | 30.7 – 35.4% | 37.1 – 38.5% | 38.0 – 38.7% | ||||||||||||||
Risk-free interest rate | 0.6 – 1.2% | 0.6 – 0.8% | 0.9 – 2.4% | ||||||||||||||
Weighted average expected lives (in years) | 4.7 | 4.7 | 4.7 – 5.6 | ||||||||||||||
Forfeiture rate | 7.00% | 7.00% | 5.5 – 7.6% | ||||||||||||||
Dividend yield | 0.80% | 0.70% | 0.8 – 1.0% | ||||||||||||||
Summary of stock option activity | ' | ||||||||||||||||
A summary of stock option activity is as follows: | |||||||||||||||||
Options | Weighted | Weighted Average Fair Value | Weighted Average | Aggregate Intrinsic Value | |||||||||||||
Average Exercise | Remaining | (in thousands) | |||||||||||||||
Price | Contractual Term | ||||||||||||||||
Outstanding December 25, 2010 | 9,029,714 | $ | 10.76 | 6.7 | $ | 121,350 | |||||||||||
Granted | 1,093,310 | 26.09 | $ | 8.87 | |||||||||||||
Exercised | (2,888,014 | ) | 10.09 | ||||||||||||||
Canceled | (131,260 | ) | 16.65 | ||||||||||||||
Outstanding December 31, 2011 | 7,103,750 | $ | 13.29 | 6.5 | $ | 154,782 | |||||||||||
Granted | 1,146,504 | 42.79 | $ | 13.13 | |||||||||||||
Exercised | (2,132,896 | ) | 11.04 | ||||||||||||||
Canceled | (56,976 | ) | 30.39 | ||||||||||||||
Outstanding December 29, 2012 | 6,060,382 | $ | 19.48 | 6.6 | $ | 147,229 | |||||||||||
Granted | 1,027,251 | 51.87 | $ | 14.67 | |||||||||||||
Exercised | (2,681,225 | ) | 12.95 | ||||||||||||||
Canceled | (97,360 | ) | 43.27 | ||||||||||||||
Outstanding December 28, 2013 | 4,309,048 | $ | 30.72 | 7.1 | $ | 193,123 | |||||||||||
Exercisable at December 28, 2013 | 2,289,115 | $ | 18.51 | 5.9 | $ | 130,549 | |||||||||||
Other information relative to option activity | ' | ||||||||||||||||
Other information relative to option activity during fiscal 2013, 2012 and 2011 is as follows (in thousands): | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Total fair value of stock options vested | $ | 10,535 | $ | 8,826 | $ | 7,590 | |||||||||||
Total intrinsic value of stock options exercised | $ | 122,621 | $ | 71,879 | $ | 59,712 | |||||||||||
Restricted stock units activity | ' | ||||||||||||||||
The status of restricted stock units is presented below: | |||||||||||||||||
Restricted Stock Units | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||
Restricted at December 25, 2010 | 1,100,356 | $ | 10.31 | ||||||||||||||
Granted | 126,968 | 26.62 | |||||||||||||||
Exercised | (176,780 | ) | 10.41 | ||||||||||||||
Forfeited | — | — | |||||||||||||||
Restricted at December 31, 2011 | 1,050,544 | $ | 12.26 | ||||||||||||||
Granted | 80,034 | 43.55 | |||||||||||||||
Exercised | (527,184 | ) | 10.5 | ||||||||||||||
Forfeited | — | — | |||||||||||||||
Restricted at December 29, 2012 | 603,394 | $ | 18.76 | ||||||||||||||
Granted | 59,864 | 51.72 | |||||||||||||||
Exercised | (244,462 | ) | 14 | ||||||||||||||
Forfeited | (5,638 | ) | 36.24 | ||||||||||||||
Restricted at December 28, 2013 | 413,158 | $ | 26.12 | ||||||||||||||
Other information relative to restricted unit activity | ' | ||||||||||||||||
Other information relative to restricted unit activity during fiscal 2013, 2012 and 2011 is as follows (in thousands): | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Total grant date fair value of restricted units vested and issued | $ | 3,422 | $ | 5,533 | $ | 1,840 | |||||||||||
Total intrinsic value of restricted units vested and issued | $ | 12,876 | $ | 21,694 | $ | 4,915 | |||||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Leases [Abstract] | ' | |||||||
Future minimum payments due | ' | |||||||
Future minimum payments, by year and in the aggregate, under leases with initial or remaining terms of one year or more consist of the following (in thousands): | ||||||||
Capital | Operating | |||||||
Leases | Leases | |||||||
2014 | $ | 146 | $ | 220,389 | ||||
2015 | 146 | 212,472 | ||||||
2016 | 146 | 202,076 | ||||||
2017 | 146 | 189,953 | ||||||
2018 | 146 | 179,350 | ||||||
Thereafter | 1,488 | 851,078 | ||||||
Total minimum lease payments | 2,218 | $ | 1,855,318 | |||||
Amount representing interest | (976 | ) | ||||||
Present value of minimum lease payments | 1,242 | |||||||
Less: current portion | (42 | ) | ||||||
Long-term capital lease obligations | $ | 1,200 | ||||||
Assets under capital leases | ' | |||||||
Assets under capital leases were as follows (in thousands): | ||||||||
2013 | 2012 | |||||||
Building and improvements | $ | 1,581 | $ | 1,581 | ||||
Computer software and hardware | — | 804 | ||||||
Less: accumulated depreciation and amortization | (782 | ) | (1,534 | ) | ||||
$ | 799 | $ | 851 | |||||
Capital_Stock_and_Dividends_Di
Capital Stock and Dividends Dividends (Tables) | 12 Months Ended | ||||||
Dec. 28, 2013 | |||||||
Dividends [Abstract] | ' | ||||||
Schedule of Dividends Payable | ' | ||||||
During fiscal 2013 and 2012, the Company's Board of Directors declared the following cash dividends: | |||||||
Date Declared | Dividend Amount | Stockholders of Record Date | Date Paid | ||||
Per Share (a) | |||||||
October 30, 2013 | $0.13 | November 18, 2013 | December 3, 2013 | ||||
July 31, 2013 | $0.13 | August 19, 2013 | September 4, 2013 | ||||
May 1, 2013 | $0.13 | May 20, 2013 | June 4, 2013 | ||||
February 6, 2013 | $0.10 | February 25, 2013 | March 12, 2013 | ||||
October 31, 2012 | $0.10 | November 19, 2012 | December 4, 2012 | ||||
August 1, 2012 | $0.10 | August 20, 2012 | September 5, 2012 | ||||
May 2, 2012 | $0.10 | May 21, 2012 | June 5, 2012 | ||||
February 8, 2012 | $0.06 | February 27, 2012 | March 13, 2012 |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Net income per share calculation | ' | ||||||||||
Net income per share is calculated as follows (in thousands, except per share amounts): | |||||||||||
2013 | |||||||||||
(52 weeks) | |||||||||||
Net | Shares | Per Share | |||||||||
Income | Amount | ||||||||||
Basic net income per share: | |||||||||||
Net income | $ | 328,234 | 139,415 | $ | 2.35 | ||||||
Diluted net income per share: | |||||||||||
Dilutive stock options and restricted stock units outstanding | — | 2,308 | (0.03 | ) | |||||||
Net income | $ | 328,234 | 141,723 | $ | 2.32 | ||||||
2012 | |||||||||||
(52 weeks) | |||||||||||
Net | Shares | Per Share | |||||||||
Income | Amount | ||||||||||
Basic net income per share: | |||||||||||
Net income | $ | 276,457 | 142,184 | $ | 1.94 | ||||||
Diluted net income per share: | |||||||||||
Dilutive stock options and restricted stock units outstanding | — | 3,330 | (0.04 | ) | |||||||
Net income | $ | 276,457 | 145,514 | $ | 1.9 | ||||||
2011 | |||||||||||
(53 weeks) | |||||||||||
Net | Shares | Per Share | |||||||||
Income | Amount | ||||||||||
Basic net income per share: | |||||||||||
Net income | $ | 222,740 | 143,554 | $ | 1.55 | ||||||
Diluted net income per share: | |||||||||||
Dilutive stock options and restricted stock units outstanding | — | 4,288 | (0.04 | ) | |||||||
Net income | $ | 222,740 | 147,842 | $ | 1.51 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Provision for income taxes | ' | |||||||||||
The provision for income taxes consists of the following (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current tax expense: | ||||||||||||
Federal | $ | 175,039 | $ | 165,519 | $ | 112,142 | ||||||
State | 19,129 | 20,342 | 13,878 | |||||||||
Total current | 194,168 | 185,861 | 126,020 | |||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | (5,341 | ) | (20,857 | ) | 3,220 | |||||||
State | (2,968 | ) | (5,724 | ) | (1,364 | ) | ||||||
Total deferred | (8,309 | ) | (26,581 | ) | 1,856 | |||||||
Total provision | $ | 185,859 | $ | 159,280 | $ | 127,876 | ||||||
Deferred 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. Significant components of the deferred tax assets and liabilities are as follows (in thousands): | ||||||||||||
2013 | 2012 | |||||||||||
Current tax assets: | ||||||||||||
Inventory valuation | $ | 12,133 | $ | 11,981 | ||||||||
Accrued employee benefit costs | 23,184 | 27,636 | ||||||||||
Accrued sales taxes | 1,905 | 3,564 | ||||||||||
Other | 10,388 | 8,439 | ||||||||||
47,610 | 51,620 | |||||||||||
Current tax liabilities: | ||||||||||||
Inventory basis difference | (14,470 | ) | (26,182 | ) | ||||||||
Prepaid expenses | (2,100 | ) | (1,541 | ) | ||||||||
Other | (1,202 | ) | (799 | ) | ||||||||
(17,772 | ) | (28,522 | ) | |||||||||
Net current tax asset | $ | 29,838 | $ | 23,098 | ||||||||
Non-current tax assets: | ||||||||||||
Capital lease obligation basis difference | $ | 987 | $ | 1,001 | ||||||||
Rent expenses in excess of cash payments required | 25,229 | 25,263 | ||||||||||
Deferred compensation | 16,394 | 17,970 | ||||||||||
Workers compensation insurance | 5,734 | — | ||||||||||
Other | 6,923 | 4,574 | ||||||||||
Valuation allowance | — | (862 | ) | |||||||||
55,267 | 47,946 | |||||||||||
Non-current tax liabilities: | ||||||||||||
Depreciation | (51,547 | ) | (47,219 | ) | ||||||||
Capital lease assets basis difference | (489 | ) | (511 | ) | ||||||||
Other | (3,139 | ) | (1,693 | ) | ||||||||
(55,175 | ) | (49,423 | ) | |||||||||
Net non-current tax asset (liability) | $ | 92 | $ | (1,477 | ) | |||||||
Net deferred tax asset | $ | 29,930 | $ | 21,621 | ||||||||
Reconciliation of the provision for income taxes to the amounts computed at the federal statutory rate | ' | |||||||||||
A reconciliation of the provision for income taxes to the amounts computed at the federal statutory rate is as follows (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Tax provision at statutory rate | $ | 179,933 | $ | 152,508 | $ | 122,715 | ||||||
Tax effect of: | ||||||||||||
State income taxes, net of federal tax benefits | 10,505 | 9,502 | 8,134 | |||||||||
Permanent differences | (4,579 | ) | (2,730 | ) | (2,973 | ) | ||||||
$ | 185,859 | $ | 159,280 | $ | 127,876 | |||||||
Reconciliation of gross unrecognized tax benefits | ' | |||||||||||
A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (exclusive of interest and penalties) is as follows (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance at beginning of year | $ | 5,898 | $ | 5,774 | $ | 4,801 | ||||||
Additions based on tax positions related to the current year | 741 | 1,358 | 1,611 | |||||||||
Additions for tax positions of prior years | — | — | — | |||||||||
Reductions for tax positions of prior years | (3,937 | ) | (1,234 | ) | (638 | ) | ||||||
Reductions due to audit results | (220 | ) | — | — | ||||||||
Balance at end of year | $ | 2,482 | $ | 5,898 | $ | 5,774 | ||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Average percentage of sales by product categories (in hundredths) | ' | ||||||||
The following chart indicates the percentage of sales represented by each major product category during fiscal 2013, 2012, and 2011: | |||||||||
Percent of Sales | |||||||||
Product Category: | 2013 | 2012 | 2011 | ||||||
Livestock and Pet | 43 | % | 42 | % | 40 | % | |||
Hardware, Tools and Truck | 23 | 23 | 23 | ||||||
Seasonal, Gift and Toy Products | 20 | 20 | 21 | ||||||
Clothing and Footwear | 9 | 9 | 10 | ||||||
Agriculture | 5 | 6 | 6 | ||||||
Total | 100 | % | 100 | % | 100 | % |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Nature of business [Abstract] | ' | ' | ' | ' |
Number of retail farm and ranch stores operated by the company | ' | 1,276 | ' | ' |
Number of states in which retail ranch stores are operated by the company | ' | 48 | ' | ' |
Stock split [Abstract] | ' | ' | ' | ' |
Stock Split, conversion ratio | 2 | ' | ' | ' |
Revenue recognition and sales returns [Abstract] | ' | ' | ' | ' |
Reserve for sales returns | ' | $3,100,000 | $3,000,000 | ' |
Gift card revenue | ' | 1,600,000 | 1,200,000 | 1,500,000 |
Self insurance reserves [Abstract] | ' | ' | ' | ' |
Self-insurance reserves | ' | 41,300,000 | 37,400,000 | ' |
Preopening costs [Abstract] | ' | ' | ' | ' |
Preopening costs | ' | 7,800,000 | 7,100,000 | 7,300,000 |
Share-based Compensation [Abstract] | ' | ' | ' | ' |
Award requisite service period | ' | '20 hours | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' | ' | ' |
Minimum processing time for payments due from banks for customer credit card transactions | ' | '24 | ' | ' |
Maximum processing time for payments due from banks for customer credit card transactions | ' | '48 | ' | ' |
Warehousing and distribution costs [Abstract] | ' | ' | ' | ' |
Distribution center costs | ' | 111,300,000 | 90,200,000 | 76,800,000 |
Advertising costs [Abstract] | ' | ' | ' | ' |
Prepaid advertising costs | ' | 300,000 | 900,000 | ' |
Advertising expenses | ' | 65,600,000 | 62,600,000 | 56,000,000 |
Impairment of long-lived assets [Abstract] | ' | ' | ' | ' |
Impairment charges | ' | 0 | 0 | 500,000 |
Restricted cash [Abstract] | ' | ' | ' | ' |
Restricted Cash | ' | 0 | 8,400,000 | ' |
Fair value disclosures [Abstract] | ' | ' | ' | ' |
Senior Credit Facility amount outstanding | ' | 0 | 0 | ' |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Cost of option to purchase the real property | ' | 1 | ' | ' |
Franklin, KY DC | ' | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Industrial Revenue Bond, Maturity Date | ' | '30 years | ' | ' |
Net Bond Proceeds Issued | ' | 51,800,000 | ' | ' |
Maximum Principal Amount of Bond Authorized | ' | 54,000,000 | ' | ' |
Macon, GA DC | ' | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Industrial Revenue Bond, Maturity Date | ' | '15 years | ' | ' |
Net Bond Proceeds Issued | ' | 49,000,000 | ' | ' |
Maximum Principal Amount of Bond Authorized | ' | 58,000,000 | ' | ' |
Brentwood, TN SSC | ' | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Industrial Revenue Bond, Maturity Date | ' | '10 years | ' | ' |
Net Bond Proceeds Issued | ' | 50,900,000 | ' | ' |
Maximum Principal Amount of Bond Authorized | ' | $78,000,000 | ' | ' |
Building | Minimum | ' | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | '30 years | ' | ' |
Building | Maximum | ' | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | '35 years | ' | ' |
Leaseholds and Building Improvements | Minimum | ' | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | '5 years | ' | ' |
Leaseholds and Building Improvements | Maximum | ' | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | '35 years | ' | ' |
Furniture, fixtures and equipment | Minimum | ' | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | '5 years | ' | ' |
Furniture, fixtures and equipment | Maximum | ' | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | '10 years | ' | ' |
Computer software and hardware | Minimum | ' | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | '3 years | ' | ' |
Computer software and hardware | Maximum | ' | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | '5 years | ' | ' |
Share_Based_Compensation_Detai
Share Based Compensation (Details) (USD $) | 12 Months Ended | |||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 25, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Shares issued as a result of vested restricted stock units (in shares) | 166,000 | 360,000 | 136,000 | ' |
Share-based compensation | $13,893,000 | $17,641,000 | $15,041,000 | ' |
Maximum number of shares available for grant as stock options or other awards (in shares) | 12,400,000 | 6,200,000 | ' | ' |
Number of shares available for future equity awards (in shares) | 6,500,000 | ' | ' | ' |
Shares of common stock issued for employee stock purchase plan (in shares) | 87,000 | 96,000 | 107,000 | ' |
Shares of common stock reserved for future issuance under the ESPP (in shares) | 16,000,000 | 8,000,000 | ' | ' |
Stock option activity [Roll Forward] | ' | ' | ' | ' |
Exercised (in shares) | -2,681,000 | -2,133,000 | -2,888,000 | ' |
Stock options, additional disclosures [Abstract] | ' | ' | ' | ' |
Weighted average fair value, Granted (in dollars per share) | $14.67 | $13.13 | $8.87 | ' |
Weighted average remaining contractual term, Outstanding, beginning of period (in years) | '7 years 1 month 6 days | '6 years 7 months 6 days | '6 years 6 months | '6 years 8 months 12 days |
Weighted average remaining contractual term, Outstanding, end of period (in years) | '7 years 1 month 6 days | '6 years 7 months 6 days | '6 years 6 months | '6 years 8 months 12 days |
Weighted average remaining contractual rerm, Exercisable at end of period (in years) | '5 years 10 months 24 days | ' | ' | ' |
Aggregate intrinsic value, Outstanding, beginning of period | 147,229,000 | 154,782,000 | 121,350,000 | ' |
Aggregate intrinsic value, Outstanding, end of period | 193,123,000 | 147,229,000 | 154,782,000 | 121,350,000 |
Aggregate intrinsic value, Exercisable at end of period | 130,549,000 | ' | ' | ' |
Restricted stock units, additional disclosures [Abstract] | ' | ' | ' | ' |
Blended volatility weighting percentage for historical | 75.00% | ' | ' | ' |
Blended volatility weighting percentage for implied | 25.00% | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Shares issued as a result of vested restricted stock units (in shares) | 165,519 | 359,924 | 136,014 | ' |
Shares withheld to satisfy tax obligations (in shares) | 78,943 | 167,260 | 40,766 | ' |
Tax obligations related to restricted stock units | 4,100,000 | 6,800,000 | 1,100,000 | ' |
Restricted stock units [Roll Forward] | ' | ' | ' | ' |
Restricted, beginning of period (in shares) | 603,394 | 1,050,544 | 1,100,356 | ' |
Granted (in shares) | 59,864 | 80,034 | 126,968 | ' |
Exercised (in shares) | -244,462 | -527,184 | -176,780 | ' |
Forfeited (in shares) | -5,638 | 0 | 0 | ' |
Restricted, end of period (in shares) | 413,158 | 603,394 | 1,050,544 | ' |
Restricted stock units, additional disclosures [Abstract] | ' | ' | ' | ' |
Weighted average grant date fair value, Restricted, beginning of period (in dollars per share) | $18.76 | $12.26 | $10.31 | ' |
Weighted average grant date fair value, Granted (in dollars per share) | $51.72 | $43.55 | $26.62 | ' |
Weighted average grant date fair value, Exercised (in dollars per share) | $14 | $10.50 | $10.41 | ' |
Weighted average grant date fair value, Forfeited (in dollars per share) | $36.24 | $0 | $0 | ' |
Weighted average grant date fair value, Restricted, end of period (in dollars per share) | $26.12 | $18.76 | $12.26 | ' |
Total grant date fair value of restricted units vested and exercised | 3,422,000 | 5,533,000 | 1,840,000 | ' |
Total intrinsic value of restricted units vested and exercised | 12,876,000 | 21,694,000 | 4,915,000 | ' |
Total unrecognized compensation | 2,800,000 | ' | ' | ' |
Remaining weighted average expense recognition period (in years) | '1 year 8 months 12 days | ' | ' | ' |
Employee Stock Option [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected price volatility, minimum (in hundredths) | 30.70% | 37.10% | 38.00% | ' |
Expected price volatility, maximum (in hundredths) | 35.40% | 38.50% | 38.70% | ' |
Risk-free interest rate, minimum (in hundredths) | 0.60% | 0.60% | 0.90% | ' |
Risk-free interest rate, maximum (in hundredths) | 1.20% | 0.80% | 2.40% | ' |
Forfeiture rate, minimum (in hundredths) | 7.00% | 7.00% | 5.50% | ' |
Forfeiture rate, maximum (in hundredths) | 7.00% | 7.00% | 7.60% | ' |
Dividend yield, minimum (in hundredths) | 0.80% | 0.70% | 0.80% | ' |
Dividend yield, maximum (in hundredths) | 0.80% | 0.70% | 1.00% | ' |
Stock option expiration date (in years) | '10 | '10 | '10 | ' |
Stock option activity [Roll Forward] | ' | ' | ' | ' |
Outstanding, beginning of period (in shares) | 6,060,382 | 7,103,750 | 9,029,714 | ' |
Granted (in shares) | 1,027,251 | 1,146,504 | 1,093,310 | ' |
Exercised (in shares) | -2,681,225 | -2,132,896 | -2,888,014 | ' |
Canceled (in shares) | -97,360 | -56,976 | -131,260 | ' |
Outstanding, end of period (in shares) | 4,309,048 | 6,060,382 | 7,103,750 | ' |
Exercisable, end of period (in shares) | 2,289,115 | ' | ' | ' |
Stock options, additional disclosures [Abstract] | ' | ' | ' | ' |
Weighted average exercise price, Outstanding, beginning of period (in dollars per share) | $19.48 | $13.29 | $10.76 | ' |
Weighted average exercise price, Granted (in dollars per share) | $51.87 | $42.79 | $26.09 | ' |
Weighted average exercise price, Exercised (in dollars per share) | $12.95 | $11.04 | $10.09 | ' |
Weighted average exercise price, Cancelled (in dollars per share) | $43.27 | $30.39 | $16.65 | ' |
Weighted average exercise price, Outstanding, end of period (in dollars per share) | $30.72 | $19.48 | $13.29 | ' |
Weighted average exercise price, Exercisable, end of period (in dollars per share) | $18.51 | ' | ' | ' |
Total fair value of stock options vested | 10,535,000 | 8,826,000 | 7,590,000 | ' |
Total intrinsic value of stock options exercised | 122,621,000 | 71,879,000 | 59,712,000 | ' |
Restricted stock units, additional disclosures [Abstract] | ' | ' | ' | ' |
Total unrecognized compensation | 15,200,000 | ' | ' | ' |
Remaining weighted average expense recognition period (in years) | '1 year 3 months 18 days | ' | ' | ' |
Employee Stock Option [Member] | Minimum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average expected lives (in years) | '4 years 8 months 24 days | '4 years 8 months 24 days | '4 years 8 months 24 days | ' |
Employee Stock Option [Member] | Maximum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average expected lives (in years) | '4 years 8 months 24 days | '4 years 8 months 24 days | '5 years 7 months 24 days | ' |
Employee Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation | $900,000 | $800,000 | $600,000 | ' |
Discount rate of employee stock purchase plan (in hundredths) | 15.00% | ' | ' | ' |
Shares of common stock issued for employee stock purchase plan (in shares) | 86,555 | 95,836 | 106,666 | ' |
Shares of common stock reserved for future issuance under the ESPP (in shares) | 12,300,000 | ' | ' | ' |
Credit_Agreement_Details
Credit Agreement (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 |
Letters of Credit [Member] | Letters of Credit [Member] | Swing Line Loans [Member] | ||
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Senior credit facility borrowings | $250 | ' | ' | ' |
Borrowing Capacity | ' | ' | ' | 20 |
Credit agreement increased option | 150 | ' | ' | ' |
Line of credit facility, maturity date | 31-Oct-16 | ' | ' | ' |
Letters of credit outstanding | ' | $38.20 | $51.40 | ' |
Bank's base rate (in hundredths) | 3.25% | ' | ' | ' |
London Inter-Bank Offer Rate (in hundredths) | 0.16% | ' | ' | ' |
Percentage of additional interest, minimum (in hundredths) | 0.40% | ' | ' | ' |
Percentage of additional interest, maximum (in hundredths) | 1.00% | ' | ' | ' |
Percentage of additional interest, actual (in hundredths) | 0.50% | ' | ' | ' |
Commitment fee for unused capacity, minimum (in hundredths) | 0.08% | ' | ' | ' |
Commitment fee for unused capacity, maximum (in hundredths) | 0.20% | ' | ' | ' |
Line of credit unused capacity fee percentage (in hundredths) | 0.10% | ' | ' | ' |
Number of material covenants requiring quarterly compliance | 2 | ' | ' | ' |
Credit agreement covenant terms | 'The fixed charge coverage ratio compares earnings before interest, taxes, depreciation, amortization, stock compensation and rent expense (bconsolidated EBITDARb) to the sum of interest paid and rental expense (excluding any straight-line rent adjustments).B B The leverage ratio compares total debt plus rental expense (excluding any straight-line rent adjustments) multiplied by a factor of six to consolidated EBITDAR.B B The Senior Credit Facility also contains certain other restrictions regarding additional indebtedness, capital expenditures, business operations, guarantees, investments, mergers, consolidations and sales of assets, transactions with subsidiaries or affiliates, and liens. | ' | ' | ' |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Leases [Abstract] | ' | ' | ' |
Operating and capital lease expiration date | '2030 | ' | ' |
Store leases periods, minimum (in years) | '10 years | ' | ' |
Store leases periods, maximum (in years) | '15 years | ' | ' |
Store leases optional renewal periods, minimum | 2 | ' | ' |
Store leases optional renewal periods, maximum | 4 | ' | ' |
Store leases optional renewal periods (in years) | '5 | ' | ' |
Operating Leases, Rent Expense, Net | $216,800,000 | $200,100,000 | $186,800,000 |
Aggregate capital leases future minimum payments due [Abstract] | ' | ' | ' |
2014 | 146,000 | ' | ' |
2015 | 146,000 | ' | ' |
2016 | 146,000 | ' | ' |
2017 | 146,000 | ' | ' |
2018 | 146,000 | ' | ' |
Thereafter | 1,488,000 | ' | ' |
Total minimum payments due | 2,218,000 | ' | ' |
Amount representing interest | -976,000 | ' | ' |
Present value of minimum lease payments | 1,242,000 | ' | ' |
Less: current portion | -42,000 | -38,000 | ' |
Long-term capital lease obligations | 1,200,000 | 1,242,000 | ' |
Aggregate operating lease future minimum payments due [Abstract] | ' | ' | ' |
2014 | 220,389,000 | ' | ' |
2015 | 212,472,000 | ' | ' |
2016 | 202,076,000 | ' | ' |
2017 | 189,953,000 | ' | ' |
2018 | 179,350,000 | ' | ' |
Thereafter | 851,078,000 | ' | ' |
Total minimum lease payments | 1,855,318,000 | ' | ' |
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | ' | ' | ' |
Less: accumulated depreciation and amortization | -782,000 | -1,534,000 | ' |
Capital leased assets, Net | 799,000 | 851,000 | ' |
Building improvements [Member] | ' | ' | ' |
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | ' | ' | ' |
Capital Leased Assets, Gross | 1,581,000 | 1,581,000 | ' |
Computer software and hardware [Member] | ' | ' | ' |
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | ' | ' | ' |
Capital Leased Assets, Gross | $0 | $804,000 | ' |
Capital_Stock_Details
Capital Stock (Details) | Dec. 28, 2013 | Dec. 29, 2012 |
Equity [Abstract] | ' | ' |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, shares authorized, (in shares) | 40,000 | 40,000 |
Capital_Stock_and_Dividends_Di1
Capital Stock and Dividends Dividends (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date to be Paid | 11-Mar-14 | 3-Dec-13 | 4-Sep-13 | 4-Jun-13 | 12-Mar-13 | 4-Dec-12 | 5-Sep-12 | 5-Jun-12 | 13-Mar-12 | ' | ' | ' |
Dividends Payable, Date of Record | 24-Feb-14 | 18-Nov-13 | 19-Aug-13 | 20-May-13 | 25-Feb-13 | 19-Nov-12 | 20-Aug-12 | 21-May-12 | 27-Feb-12 | ' | ' | ' |
Dividends Payable, Date Declared | 5-Feb-14 | 30-Oct-13 | 31-Jul-13 | 1-May-13 | 6-Feb-13 | 31-Oct-12 | 1-Aug-12 | 2-May-12 | 8-Feb-12 | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | $0.13 | $0.13 | $0.13 | $0.13 | $0.10 | $0.10 | $0.10 | $0.10 | $0.06 | $0.49 | $0.36 | $0.22 |
Treasury_Stock_Details
Treasury Stock (Details) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | ' | ' | ' |
Repurchased shares under the share repurchase program (in shares) | 2.3 | 6.1 | 6.2 |
Payments for Repurchase of Common Stock | ($129,416,000) | ($271,799,000) | ($179,997,000) |
Remaining authorization under the share repurchase program | 161,800,000 | ' | ' |
Total amount of stock authorized under the repurchase program | $1,000,000,000 | ' | ' |
Stock repurchase period | 'April 2015 | ' | ' |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Basic net income per share [Abstract] | ' | ' | ' |
Net income, basic | $328,234 | $276,457 | $222,740 |
Shares, basic | 139,415,000 | 142,184,000 | 143,554,000 |
Per share amount, basic (in dollars per share) | $2.35 | $1.94 | $1.55 |
Dilutive stock options and restricted stock units outstanding, income | $0 | $0 | $0 |
Dilutive stock options and restricted stock units outstanding, shares | 2,308,000 | 3,330,000 | 4,288,000 |
Dilutive stock options and restricted stock units outstanding, per share (in dollars per share) | ($0.03) | ($0.04) | ($0.04) |
Diluted net income per share [Abstract] | ' | ' | ' |
Shares, diluted | 141,723,000 | 145,514,000 | 147,842,000 |
Diluted net income per share (in dollars per share) | $2.32 | $1.90 | $1.51 |
Anitdilutive securities excluded from computation of earnings per share | 600,000 | 1,000,000 | 600,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Tax Credit Carryforward, Amount | $2,300,000 | $2,600,000 | ' |
Current tax expense | ' | ' | ' |
Federal | 175,039,000 | 165,519,000 | 112,142,000 |
State | 19,129,000 | 20,342,000 | 13,878,000 |
Total current | 194,168,000 | 185,861,000 | 126,020,000 |
Deferred tax expense (benefit) | ' | ' | ' |
Deferred Federal Income Tax Expense (Benefit) | -5,341,000 | -20,857,000 | 3,220,000 |
Deferred State and Local Income Tax Expense (Benefit) | -2,968,000 | -5,724,000 | -1,364,000 |
Total deferred taxes | -8,309,000 | -26,581,000 | 1,856,000 |
Total provision | 185,859,000 | 159,280,000 | 127,876,000 |
Current tax assets | ' | ' | ' |
Inventory valuation | 12,133,000 | 11,981,000 | ' |
Accrued employee benefit costs | 23,184,000 | 27,636,000 | ' |
Accrued sales taxes | 1,905,000 | 3,564,000 | ' |
Other | 10,388,000 | 8,439,000 | ' |
Total current deferred tax assets | 47,610,000 | 51,620,000 | ' |
Current tax liabilities | ' | ' | ' |
Inventory basis difference | -14,470,000 | -26,182,000 | ' |
Prepaid Expenses | -2,100,000 | -1,541,000 | ' |
Other | -1,202,000 | -799,000 | ' |
Total current deferred tax liability | -17,772,000 | -28,522,000 | ' |
Net current tax asset | 29,838,000 | 23,098,000 | ' |
Non-current tax assets | ' | ' | ' |
Deferred tax assets leasing arrangements | 987,000 | 1,001,000 | ' |
Rent expenses in excess of cash payments required | 25,229,000 | 25,263,000 | ' |
Deferred compensation | 16,394,000 | 17,970,000 | ' |
Workers compensation insurance | 5,734,000 | 0 | ' |
Other | 6,923,000 | 4,574,000 | ' |
Valuation allowance | 0 | -862,000 | ' |
Total non current deferred tax asset | 55,267,000 | 47,946,000 | ' |
Non-current tax liabilities | ' | ' | ' |
Depreciation | -51,547,000 | -47,219,000 | ' |
Capital lease assets basis difference | -489,000 | -511,000 | ' |
Other | -3,139,000 | -1,693,000 | ' |
Total non current deferred tax liabilities | -55,175,000 | -49,423,000 | ' |
Deferred tax liability net noncurrent | 0 | -1,477,000 | ' |
Deferred tax assets net noncurrent | 92,000 | 0 | ' |
Net deferred tax asset | 29,930,000 | 21,621,000 | ' |
Provision for income tax reconciliation to amounts computed at the federal statutory rate | ' | ' | ' |
Tax provision at statutory rate | 179,933,000 | 152,508,000 | 122,715,000 |
State income taxes, net of federal tax benefits | 10,505,000 | 9,502,000 | 8,134,000 |
Permanent differences | -4,579,000 | -2,730,000 | -2,973,000 |
Total provision | 185,859,000 | 159,280,000 | 127,876,000 |
Unrecognized tax benefits that would Impact effective tax rate | 1,600,000 | ' | ' |
Reconciliation of gross unrecognized tax benefits [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 5,898,000 | 5,774,000 | 4,801,000 |
Additions based on tax positions related to the current period | 741,000 | 1,358,000 | 1,611,000 |
Additions for tax positions of prior periods | 0 | 0 | 0 |
Reductions for tax positions of prior periods | -3,937,000 | -1,234,000 | -638,000 |
Reductions due to audit results | -220,000 | 0 | 0 |
Balance at end of period | 2,482,000 | 5,898,000 | 5,774,000 |
Overall decrease in unrecognized tax benefits, minimum | 100,000 | ' | ' |
Overall decrease in unrecognized tax benefits, maximum | $300,000 | ' | ' |
Retirement_Benefit_Plans_Detai
Retirement Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Schedule Defined Contribution Benefit Plan [Line Items] | ' | ' | ' |
Percentage match by company applicable to first 3 percent of employee's contribution | 100.00% | ' | ' |
Percentage match by company applicable to next 3 percent of employee's contribution | 50.00% | ' | ' |
Maximum percentage of employee's eligible compensation eligible for 100% match (in hundredths) | 3.00% | ' | ' |
Maximum percentage of employee's compensation eligible for 50% match | 6.00% | ' | ' |
Company maximum match as a percentage of eligible compensation (in hundredths) | 4.50% | ' | ' |
Defined Contribution Plan, Cost Recognized | $4.90 | $4.40 | $4.30 |
Retirement_Benefit_Plans_Retir
Retirement Benefit Plans Retirement Benefit Plans Deferred Compensation (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Schedule of Deferred Compensation [Line Items] | ' | ' | ' |
Company's maximum match under employee deferred compensation program | $4,500 | ' | ' |
Deferred Compensation Arrangement with Individual, Employer Contribution | $500,000 | $400,000 | $400,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 28, 2013 |
Construction Commitments | ' |
Number of vendors, EPA Compliance Issue | 1 |
New Store Construction Projects [Member] | ' |
Construction Commitments | ' |
Construction projects for new stores | 6 |
SSC Construction Commitments [Member] | ' |
Construction Commitments | ' |
Property and construction commitments | 22 |
Segment_Reporting_Details
Segment Reporting (Details) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Segment Reporting [Abstract] | ' | ' | ' |
Segment Reporting, Additional Information about Entity's Reportable Segments | '1 | '1 | '1 |
Revenue from External Customer [Line Items] | ' | ' | ' |
Average percent of sales (in hundredths) | 100.00% | 100.00% | 100.00% |
Livestock and Pet [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Average percent of sales (in hundredths) | 43.00% | 42.00% | 40.00% |
Hardware, Tools and Truck [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Average percent of sales (in hundredths) | 23.00% | 23.00% | 23.00% |
Seasonal, Gift and Toy Products [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Average percent of sales (in hundredths) | 20.00% | 20.00% | 21.00% |
Clothing and Footware [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Average percent of sales (in hundredths) | 9.00% | 9.00% | 10.00% |
Agriculture [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Average percent of sales (in hundredths) | 5.00% | 6.00% | 6.00% |