Tractor Supply (TSCO) 10-Q 5 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 27, 2015	Jul. 25, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	TRACTOR SUPPLY CO /DE/
Entity Central Index Key	916,365
Current Fiscal Year End Date	--12-26
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		135,819,050
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 27, 2015

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 27, 2015	Dec. 27, 2014	Jun. 28, 2014
Current assets:
Cash and cash equivalents	$ 56,317	$ 51,134	$ 55,965
Inventories	1,293,146	1,115,450	1,154,585
Prepaid expenses and other current assets	62,039	66,444	48,120
Deferred income taxes	38,005	40,962	25,515
Total current assets	1,449,507	1,273,990	1,284,185
Property and equipment:
Land	84,391	79,571	75,843
Buildings and improvements	723,455	698,462	607,030
Furniture, fixtures and equipment	474,975	453,692	427,024
Computer software and hardware	166,684	154,818	156,674
Construction in progress	74,245	30,803	84,049
Property and equipment, gross	1,523,750	1,417,346	1,350,620
Accumulated depreciation and amortization	(754,847)	(696,346)	(657,233)
Property and equipment, net	768,903	721,000	693,387
Goodwill	10,258	10,258	10,258
Deferred income taxes	22,975	8,782	17,395
Other assets	19,627	20,541	20,303
Total assets	2,271,270	2,034,571	2,025,528
Current liabilities:
Accounts payable	452,669	370,823	390,170
Accrued employee compensation	28,910	37,056	21,158
Other accrued expenses	185,631	182,565	144,360
Current portion of capital lease obligations	441	213	125
Income taxes payable	77,950	12,436	73,174
Total current liabilities	745,601	603,093	628,987
Capital lease obligations, less current maturities	8,652	4,957	3,078
Deferred rent	81,446	79,807	77,864
Other long-term liabilities	52,124	53,153	49,674
Total liabilities	887,823	741,010	759,603
Stockholders’ equity:
Preferred stock, $1.00 par value; 40 shares authorized; no shares issued	0	0	0
Common stock, $0.008 par value; 400,000 shares authorized at June 27, 2015, December 27, 2014 and June 28, 2014; 168,638, 167,716 and 166,881 shares issued; 135,831, 136,382 and 137,989 shares outstanding at June 27, 2015, December 27, 2014 and June 28, 2014, respectively	1,349	1,342	1,335
Additional paid-in capital	563,096	510,997	476,742
Treasury stock – at cost, 32,807, 31,334 and 28,892 shares at June 27, 2015, December 27, 2014 and June 28, 2014, respectively	(1,261,625)	(1,137,085)	(985,585)
Retained earnings	2,080,627	1,918,307	1,773,433
Total stockholders’ equity	1,383,447	1,293,561	1,265,925
Total liabilities and stockholders’ equity	$ 2,271,270	$ 2,034,571	$ 2,025,528

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 27, 2015	Dec. 27, 2014	Jun. 28, 2014
Stockholders’ equity:
Common stock, par value (dollars per share)	$ 0.008	$ 0.008	$ 0.008
Common stock, shares authorized (in shares)	400,000,000	400,000,000	400,000,000
Common stock, shares issued (in shares)	168,638,000	167,716,000	166,881,000
Common stock, shares outstanding (in shares)	135,831,000	136,382,000	137,989,000
Preferred stock, par value (dollars per share)	$ 1	$ 1	$ 1
Preferred stock, shares authorized (in shares)	40,000	40,000	40,000
Preferred stock, shares issued (in shares)
Treasury stock, shares (in shares)	32,807,000	31,334,000	28,892,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Income Statement [Abstract]
Net sales	$ 1,772,900	$ 1,583,831	$ 3,104,252	$ 2,767,511
Cost of merchandise sold	1,147,580	1,033,299	2,034,327	1,820,760
Gross profit	625,320	550,532	1,069,925	946,751
Selling, general and administrative expenses	349,842	311,589	671,318	601,859
Depreciation and amortization	30,313	27,914	60,595	55,134
Operating income	245,165	211,029	338,012	289,758
Interest expense, net	832	308	1,698	762
Income before income taxes	244,333	210,721	336,314	288,996
Income tax expense	91,002	77,310	124,943	106,776
Net income	$ 153,331	$ 133,411	$ 211,371	$ 182,220
Net income per share, basic (in dollars per share)	$ 1.13	$ 0.96	$ 1.55	$ 1.31
Net income per share, diluted (in dollars per share)	$ 1.12	$ 0.95	$ 1.54	$ 1.30
Weighted average shares outstanding:
Basic (in shares)	136,120	138,394	136,233	138,756
Diluted (in shares)	137,400	140,110	137,567	140,571
Dividends declared per common share outstanding (in dollars per share)	$ 0.20	$ 0.16	$ 0.36	$ 0.29

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014
Cash flows from operating activities:
Net income	$ 211,371	$ 182,220
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	60,595	55,134
Gain on disposition of property and equipment	(15)	(68)
Share-based compensation expense	9,835	8,118
Excess tax benefit of stock options exercised	(12,900)	(4,171)
Deferred income taxes	(11,236)	(12,980)
Change in assets and liabilities:
Inventories	(177,696)	(175,277)
Prepaid expenses and other current assets	4,405	9,239
Accounts payable	81,846	73,683
Accrued employee compensation	(8,146)	(29,415)
Other accrued expenses	(4,533)	(10,742)
Income taxes payable	78,414	67,921
Other	1,475	2,842
Net cash provided by operating activities	233,415	166,504
Cash flows from investing activities:
Capital expenditures	(97,014)	(82,114)
Proceeds from sale of property and equipment	301	166
Net cash used in investing activities	(96,713)	(81,948)
Cash flows from financing activities:
Borrowings under revolving credit agreement	180,000	110,000
Repayments under revolving credit agreement	(180,000)	(110,000)
Excess tax benefit of stock options exercised	12,900	4,171
Principal payments under capital lease obligations	(199)	(27)
Repurchase of shares to satisfy tax obligations	(1,095)	(1,211)
Repurchase of common stock	(124,540)	(146,997)
Net proceeds from issuance of common stock	30,466	13,000
Cash dividends paid to stockholders	(49,051)	(40,270)
Net cash used in financing activities	(131,519)	(171,334)
Net change in cash and cash equivalents	5,183	(86,778)
Cash and cash equivalents at beginning of period	51,134	142,743
Cash and cash equivalents at end of period	56,317	55,965
Cash paid during the period for:
Interest	694	360
Income taxes	57,367	51,306
Supplemental disclosures of non-cash activities:
Property acquired through capital lease	4,122	1,988
Non-cash accruals for construction in progress	$ 22,442	$ 7,745

General

General	6 Months Ended
	Jun. 27, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	General: Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 27, 2014 . The results of operations for our interim periods are not necessarily indicative of results for the full fiscal year. Nature of Business Tractor Supply Company (the “Company”) is the largest operator of rural lifestyle retail stores in the United States. The Company is focused on supplying the 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 June 27, 2015 , the Company operated a total of 1,438 retail stores in 49 states and also offered a number of products online at TractorSupply.com .

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 27, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	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, short-term receivables, trade payables and long-term debt instruments. Due to their short-term nature, the carrying values of cash and cash equivalents, 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 (as defined in Note 5) at June 27, 2015 , December 27, 2014 , or June 28, 2014 , respectively.

Share Based Compensation

Share Based Compensation	6 Months Ended
	Jun. 27, 2015
Share-based Compensation [Abstract]
Share Based Compensation	Share-Based Compensation: Share-based compensation includes stock option and restricted stock unit awards and certain transactions under our Employee Stock Purchase Plan (the “ESPP”). Share-based compensation expense is recognized based on grant date fair value of all options and restricted stock unit awards plus a discount on shares purchased by employees as a part of the ESPP. There were no significant modifications to the Company’s share-based compensation plans during the fiscal six months ended June 27, 2015 . For the second quarters of fiscal 2015 and 2014 , share-based compensation expense was $4.8 million and $4.2 million , respectively and $9.8 million and $8.1 million for the first six months of fiscal 2015 and 2014 , respectively. Stock Options The following summarizes information concerning stock option grants during the first six months of fiscal 2015 and 2014 : Fiscal six months ended June 27, June 28, Stock options granted 1,025,356 1,117,089 Weighted average exercise price $ 83.23 $ 63.89 Weighted average fair value per option $ 19.43 $ 15.33 As of June 27, 2015 , total unrecognized compensation expense related to non-vested stock options was approximately $27.8 million with a remaining weighted average expense recognition period of 1.5 years. Restricted Stock Units The following summarizes information concerning restricted stock unit grants during the first six months of fiscal 2015 and 2014 : Fiscal six months ended June 27, June 28, Restricted stock units granted 50,473 56,650 Weighted average fair value per share $ 84.02 $ 64.52 As of June 27, 2015 , total unrecognized compensation expense related to non-vested restricted stock units was approximately $8.3 million with a remaining weighted average expense recognition period of 2.4 years.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 27, 2015
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share: The Company presents both basic and diluted net income per share on the face of the unaudited condensed consolidated statements of income. 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. Net income per share is calculated as follows (in thousands, except per share amounts): Fiscal three months ended June 27, 2015 Fiscal three months ended June 28, 2014 Income Shares Per Share Amount Income Shares Per Share Amount Basic net income per share: Net income $ 153,331 136,120 $ 1.13 $ 133,411 138,394 $ 0.96 Diluted net income per share: Dilutive stock options and restricted stock units outstanding — 1,280 (0.01 ) — 1,716 (0.01 ) Net income $ 153,331 137,400 $ 1.12 $ 133,411 140,110 $ 0.95 Fiscal six months ended June 27, 2015 Fiscal six months ended June 28, 2014 Income Shares Per Share Income Shares Per Share Basic net income per share: Net income $ 211,371 136,233 $ 1.55 $ 182,220 138,756 $ 1.31 Diluted net income per share: Dilutive stock options and restricted stock units outstanding — 1,334 (0.01 ) — 1,815 (0.01 ) Net income $ 211,371 137,567 $ 1.54 $ 182,220 140,571 $ 1.30 Anti-dilutive stock options excluded from the above calculations totaled approximately 1.0 million and 1.4 million shares for the three months ended June 27, 2015 and June 28, 2014 , respectively, and 0.8 million and 0.9 million shares for the six months ended June 27, 2015 and June 28, 2014 , respectively.

Senior Credit Facility

Senior Credit Facility	6 Months Ended
	Jun. 27, 2015
Debt Disclosure [Abstract]
Senior Credit Facility	Senior Credit Facility: The Company has entered into a Credit Agreement, dated as of October 24, 2011, as amended on May 16, 2014, with certain lenders and Bank of America, N.A., as administrative agent for the lenders (the “Senior Credit Facility”). The Senior Credit Facility provides for borrowings up to $400 million (with a sublimit of $30 million for swingline loans). 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. The Company had no outstanding borrowings under the Senior Credit Facility at June 27, 2015 , December 27, 2014 , or June 28, 2014 . There were $57.4 million , $40.7 million , and $70.9 million outstanding letters of credit under the Senior Credit Facility as of June 27, 2015 , December 27, 2014 , and June 28, 2014 , respectively. Borrowings bear interest at either the bank’s base rate ( 3.25% at June 27, 2015 ) or the London Inter-Bank Offer Rate (“LIBOR”) ( 0.19% at June 27, 2015 ) plus an additional amount ranging from 0.40% to 1.00% per annum ( 0.40% at June 27, 2015 ), 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 ( 0.08% at June 27, 2015 ), adjusted quarterly based on the Company’s leverage ratio. The agreement requires quarterly compliance with respect to fixed charge coverage and leverage ratios. As of June 27, 2015 , the Company was in compliance with all debt covenants.

Treasury Stock

Treasury Stock	6 Months Ended
	Jun. 27, 2015
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 a share repurchase program of up to $2 billion , exclusive of any fees, commissions, or other expenses related to such repurchases, through December 2017 . 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 0.9 million and 1.0 million shares of common stock under the share repurchase program for a total cost of $76.6 million and $62.5 million during the second quarters of fiscal 2015 and fiscal 2014 , respectively. During the first six months of 2015 and 2014 , the Company repurchased 1.5 million and 2.2 million shares under the share repurchase program for a total cost of $124.5 million and $147.0 million , respectively. As of June 27, 2015 , the Company had remaining authorization under the share repurchase program of $738.8 million , exclusive of any fees, commissions, or other expenses.

Capital Stock and Dividends

Capital Stock and Dividends	6 Months Ended
	Jun. 27, 2015
Equity [Abstract]
Capital Stock and Dividends	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 400 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 the first six months of fiscal 2015 and 2014 , the Board of Directors declared the following cash dividends: Date Declared Dividend Amount Per Share Stockholders of Record Date Date Paid May 4, 2015 $ 0.20 May 18, 2015 June 2, 2015 February 4, 2015 $ 0.16 February 23, 2015 March 10, 2015 April 30, 2014 $ 0.16 May 19, 2014 June 3, 2014 February 5, 2014 $ 0.13 February 24, 2014 March 11, 2014 It is the present intention of the Board of Directors to continue to pay a quarterly cash dividend; however, the declaration and payment of future dividends will be determined by the Board of Directors in its sole discretion and will depend upon the earnings, financial condition, and capital needs of the Company, along with other factors which the Board of Directors deems relevant. On August 3, 2015 , the Company’s Board of Directors declared a quarterly cash dividend of $0.20 per share of the Company’s common stock. The dividend will be paid on September 1, 2015 to stockholders of record as of the close of business on August 17, 2015 .

Income Taxes

Income Taxes	6 Months Ended
	Jun. 27, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes: The Company’s effective income tax rate increased to 37.2% in the second quarter of fiscal 2015 compared to 36.7% for the second quarter of fiscal 2014 . For the first six months of fiscal 2015 , our effective income tax rate increased to 37.2% compared to 36.9% for the first six months of fiscal 2014 . The increase in the effective income tax rate was due principally to the availability of state tax incentives in the prior year.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 27, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies: Construction and Real Estate Commitments At June 27, 2015 , the Company had contractual commitments related to the construction of its new distribution center in Casa Grande, Arizona of approximately $13.3 million and the development of two smaller cross-dock facilities (“mixing centers”) in Texas for approximately $3.0 million . Letters of Credit At June 27, 2015 , there were $57.4 million outstanding letters of credit under the Senior Credit Facility. 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 matter 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	6 Months Ended
	Jun. 27, 2015
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting: The Company has one reportable segment which is the retail sale of products that support the rural lifestyle. 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 the fiscal three and six months ended June 27, 2015 and June 28, 2014 : Fiscal three months ended Fiscal six months ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Product Category: Livestock and Pet 41 % 41 % 44 % 45 % Seasonal, Gift and Toy Products 25 24 22 21 Hardware, Tools and Truck 22 22 22 22 Agriculture 7 7 5 5 Clothing and Footwear 5 6 7 7 Total 100 % 100 % 100 % 100 %

New Accounting Pronouncements N

New Accounting Pronouncements New Accounting Pronouncements	6 Months Ended
	Jun. 27, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. On July 9, 2015, the FASB approved a one-year deferral of ASU 2014-09. As a result of the deferral, the amendments in ASU 2014-09 are effective for reporting periods beginning after December 15, 2017. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Management is currently assessing the impact the adoption of ASU 2014-09 will have on our Condensed Consolidated Financial Statements and related disclosures, including which transition method it will adopt.

General (Policies)

General (Policies)	6 Months Ended
	Jun. 27, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation, Policy	Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 27, 2014 . The results of operations for our interim periods are not necessarily indicative of results for the full fiscal year.

Share Based Compensation (Table

Share Based Compensation (Tables)	6 Months Ended
	Jun. 27, 2015
Share-based Compensation [Abstract]
Share-based Compensation	The following summarizes information concerning stock option grants during the first six months of fiscal 2015 and 2014 : Fiscal six months ended June 27, June 28, Stock options granted 1,025,356 1,117,089 Weighted average exercise price $ 83.23 $ 63.89 Weighted average fair value per option $ 19.43 $ 15.33
Restricted Stock Units	The following summarizes information concerning restricted stock unit grants during the first six months of fiscal 2015 and 2014 : Fiscal six months ended June 27, June 28, Restricted stock units granted 50,473 56,650 Weighted average fair value per share $ 84.02 $ 64.52

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 27, 2015
Earnings Per Share [Abstract]
Net Income Per Share	Net income per share is calculated as follows (in thousands, except per share amounts): Fiscal three months ended June 27, 2015 Fiscal three months ended June 28, 2014 Income Shares Per Share Amount Income Shares Per Share Amount Basic net income per share: Net income $ 153,331 136,120 $ 1.13 $ 133,411 138,394 $ 0.96 Diluted net income per share: Dilutive stock options and restricted stock units outstanding — 1,280 (0.01 ) — 1,716 (0.01 ) Net income $ 153,331 137,400 $ 1.12 $ 133,411 140,110 $ 0.95 Fiscal six months ended June 27, 2015 Fiscal six months ended June 28, 2014 Income Shares Per Share Income Shares Per Share Basic net income per share: Net income $ 211,371 136,233 $ 1.55 $ 182,220 138,756 $ 1.31 Diluted net income per share: Dilutive stock options and restricted stock units outstanding — 1,334 (0.01 ) — 1,815 (0.01 ) Net income $ 211,371 137,567 $ 1.54 $ 182,220 140,571 $ 1.30

Capital Stock and Dividends (Ta

Capital Stock and Dividends (Tables)	6 Months Ended
	Jun. 27, 2015
Equity [Abstract]
Schedule of Dividends Payable	During the first six months of fiscal 2015 and 2014 , the Board of Directors declared the following cash dividends: Date Declared Dividend Amount Per Share Stockholders of Record Date Date Paid May 4, 2015 $ 0.20 May 18, 2015 June 2, 2015 February 4, 2015 $ 0.16 February 23, 2015 March 10, 2015 April 30, 2014 $ 0.16 May 19, 2014 June 3, 2014 February 5, 2014 $ 0.13 February 24, 2014 March 11, 2014

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 27, 2015
Segment Reporting [Abstract]
Segment Reporting	The following chart indicates the percentage of sales represented by each major product category during the fiscal three and six months ended June 27, 2015 and June 28, 2014 : Fiscal three months ended Fiscal six months ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Product Category: Livestock and Pet 41 % 41 % 44 % 45 % Seasonal, Gift and Toy Products 25 24 22 21 Hardware, Tools and Truck 22 22 22 22 Agriculture 7 7 5 5 Clothing and Footwear 5 6 7 7 Total 100 % 100 % 100 % 100 %

General (Details)

General (Details) - Jun. 27, 2015	storestate
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of stores | store	1,438
Number of states in which entity operates	49

Fair Value of Financial Instr23

Fair Value of Financial Instruments (Details) - USD ($)	Jun. 27, 2015	Dec. 27, 2014	Jun. 28, 2014
Fair Value Disclosures [Abstract]
Senior credit facility amount outstanding	$ 0	$ 0	$ 0

Share Based Compensation (Detai

Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 4,800	$ 4,200	$ 9,835	$ 8,118
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted			1,025,356	1,117,089
Weighted average exercise price			$ 83.23	$ 63.89
Weighted average fair value per option			$ 19.43	$ 15.33
Total unrecognized compensation expense	27,800		$ 27,800
Remaining weighted average expense recognition period			1 year 6 months
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted			50,473	56,650
Weighted average fair value per option			$ 84.02	$ 64.52
Total unrecognized compensation expense	$ 8,300		$ 8,300
Remaining weighted average expense recognition period			2 years 4 months 24 days

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Basic net income per share:
Net income	$ 153,331	$ 133,411	$ 211,371	$ 182,220
Weighted average number of shares outstanding, basic	136,120	138,394	136,233	138,756
Net income per share, basic (in dollars per share)	$ 1.13	$ 0.96	$ 1.55	$ 1.31
Diluted net income per share:
Dilutive stock options and restricted stock units outstanding, income	$ 0	$ 0	$ 0	$ 0
Dilutive stock options and restricted stock units outstanding, per share (in shares)	1,280	1,716	1,334	1,815
Dilutive stock options and restricted stock units outstanding, per share (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.01)
Net income	$ 153,331	$ 133,411	$ 211,371	$ 182,220
Weighted average number of shares outstanding, diluted	137,400	140,110	137,567	140,571
Net income per share, diluted (in dollars per share)	$ 1.12	$ 0.95	$ 1.54	$ 1.30
Antidilutive securities excluded from computation of earnings per share, amount	1,000	1,400	800	900

Senior Credit Facility - Credit

Senior Credit Facility - Credit Agreement (Details) - USD ($)	Jun. 27, 2015	Jun. 27, 2015	Jun. 27, 2015	Dec. 27, 2014	Jun. 28, 2014
Line of Credit Facility [Line Items]
Senior credit facility, maximum borrowing capacity	$ 400,000,000	$ 400,000,000	$ 400,000,000
Swing loan maximum borrowing capacity	30,000,000	30,000,000	$ 30,000,000
Line of credit facility, expiration date			Oct. 31, 2016
Long-term Line of Credit	0	0	$ 0	$ 0	$ 0
Letters of credit under senior credit facility amount outstanding	$ 57,400,000	$ 57,400,000	$ 57,400,000	$ 40,700,000	$ 70,900,000
Bank's base rate	3.25%	3.25%	3.25%
London inter-bank offer rate	0.19%	0.19%	0.19%
Debt instrument, basis spread on variable rate	0.40%
Commitment fee for unused capacity		0.08%
Base Rate
Line of Credit Facility [Line Items]
Line of credit facility, interest rate description		bank’s base rate 3.25%
London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Line of credit facility, interest rate description		LIBOR plus 0.19%
Minimum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate			0.40%
Commitment fee for unused capacity			0.08%
Maximum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate			1.00%
Commitment fee for unused capacity			0.20%

Treasury Stock (Details)

Treasury Stock (Details) - USD ($) shares in Millions	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract]
Board-approved share repurchase program of common stock	$ 2,000,000,000		$ 2,000,000,000
Stock repurchase period			December 2,017
Repurchased shares under the share repurchase program	0.9	1	1.5	2.2
Cost of share repurchased under the share repurchase program	$ 76,600,000	$ 62,500,000	$ 124,540,000	$ 146,997,000
Remaining authorization under the share repurchase program	$ 738,800,000		$ 738,800,000

Capital Stock - Narrative (Deta

Capital Stock - Narrative (Details) - shares	Jun. 27, 2015	Dec. 27, 2014	Jun. 28, 2014
Equity [Abstract]
Common stock, shares authorized (in shares)	400,000,000	400,000,000	400,000,000
Preferred stock, shares authorized (in shares)	40,000	40,000	40,000

Capital Stock and Dividends (De

Capital Stock and Dividends (Details) - $ / shares	Aug. 03, 2015	May. 04, 2015	Feb. 04, 2015	Apr. 30, 2014	Feb. 05, 2014	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Subsequent Event [Line Items]
Dividends declared per common share outstanding (in dollars per share)		$ 0.20	$ 0.16	$ 0.16	$ 0.13	$ 0.20	$ 0.16	$ 0.36	$ 0.29
Subsequent Event
Subsequent Event [Line Items]
Dividends declared per common share outstanding (in dollars per share)	$ 0.20

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Income Tax Disclosure [Abstract]
Effective income tax rate	37.20%	36.70%	37.20%	36.90%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	6 Months Ended
	Jun. 27, 2015USD ($)vendor	Dec. 27, 2014USD ($)	Jun. 28, 2014USD ($)
Letters of Credit
Letters of credit outstanding, amount	$ 57.4	$ 40.7	$ 70.9
Information about Litigation Matters
Number of vendors company purchased engines | vendor	1
DC Construction Project
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase obligation, due in next twelve months	$ 13.3
DC Mixing Center Project
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase obligation, due in next twelve months	$ 3

Segment Reporting (Details)

Segment Reporting (Details) - segment	Jun. 27, 2015	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Revenue from External Customer [Line Items]
Number of operating segments	1
Average percentage of sales (in hundredths)		100.00%	100.00%	100.00%	100.00%
Livestock and Pet
Revenue from External Customer [Line Items]
Average percentage of sales (in hundredths)		41.00%	41.00%	44.00%	45.00%
Seasonal, Gift and Toy Products
Revenue from External Customer [Line Items]
Average percentage of sales (in hundredths)		25.00%	24.00%	22.00%	21.00%
Hardware, Tools and Truck
Revenue from External Customer [Line Items]
Average percentage of sales (in hundredths)		22.00%	22.00%	22.00%	22.00%
Agriculture
Revenue from External Customer [Line Items]
Average percentage of sales (in hundredths)		7.00%	7.00%	5.00%	5.00%
Clothing and Footwear
Revenue from External Customer [Line Items]
Average percentage of sales (in hundredths)		5.00%	6.00%	7.00%	7.00%

Segment Reporting Number of Rep

Segment Reporting Number of Reportable Segments (Details)	Jun. 27, 2015segment
Segment Reporting [Abstract]
Number of Reportable Segments	1