Tractor Supply (TSCO) 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 26, 2015	Oct. 24, 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		134,333,917
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 26, 2015

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 26, 2015	Dec. 27, 2014	Sep. 27, 2014
Current assets:
Cash and cash equivalents	$ 51,352	$ 51,134	$ 47,510
Inventories	1,414,562	1,115,450	1,295,824
Prepaid expenses and other current assets	64,822	66,444	49,936
Deferred income taxes	42,628	40,962	33,317
Total current assets	1,573,364	1,273,990	1,426,587
Property and equipment:
Land	86,197	79,571	73,424
Buildings and improvements	750,170	698,462	684,700
Furniture, fixtures and equipment	489,088	453,692	440,314
Computer software and hardware	172,443	154,818	158,480
Construction in progress	85,531	30,803	25,015
Property and equipment, gross	1,583,429	1,417,346	1,381,933
Accumulated depreciation and amortization	(774,772)	(696,346)	(675,132)
Property and equipment, net	808,657	721,000	706,801
Goodwill	10,258	10,258	10,258
Deferred income taxes	29,915	8,782	24,929
Other assets	18,392	20,541	20,123
Total assets	2,440,586	2,034,571	2,188,698
Current liabilities:
Accounts payable	527,143	370,823	483,042
Accrued employee compensation	27,449	37,056	19,530
Other accrued expenses	192,335	182,565	154,631
Current portion of capital lease obligations	540	213	125
Income taxes payable	18,255	12,436	19,014
Total current liabilities	765,722	603,093	676,342
Revolving credit loan	190,000	0	150,000
Capital lease obligations, less current maturities	10,746	4,957	3,048
Deferred rent	82,905	79,807	78,356
Other long-term liabilities	53,953	53,153	50,745
Total liabilities	1,103,326	741,010	958,491
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 September 26, 2015, December 27, 2014 and September 27, 2014; 168,830, 167,716 and 167,082 shares issued; 134,645, 136,382 and 136,615 shares outstanding at September 26, 2015, December 27, 2014 and September 27, 2014, respectively	1,351	1,342	1,337
Additional paid-in capital	576,175	510,997	483,804
Treasury stock – at cost, 34,185, 31,334 and 30,467 shares at September 26, 2015, December 27, 2014 and September 27, 2014, respectively	(1,381,041)	(1,137,085)	(1,082,970)
Retained earnings	2,140,775	1,918,307	1,828,036
Total stockholders’ equity	1,337,260	1,293,561	1,230,207
Total liabilities and stockholders’ equity	$ 2,440,586	$ 2,034,571	$ 2,188,698

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 26, 2015	Dec. 27, 2014	Sep. 27, 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)	168,830,000	167,716,000	167,082,000
Common stock, shares outstanding (in shares)	134,645,000	136,382,000	136,615,000
Preferred stock, shares issued (in shares)	$ 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)	34,185,000	31,334,000	30,467,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2015	Sep. 27, 2014	Sep. 26, 2015	Sep. 27, 2014
Income Statement [Abstract]
Net sales	$ 1,475,645	$ 1,359,950	$ 4,579,897	$ 4,127,461
Cost of merchandise sold	963,397	895,881	2,997,724	2,716,641
Gross profit	512,248	464,069	1,582,173	1,410,820
Selling, general and administrative expenses	342,891	312,669	1,014,209	914,528
Depreciation and amortization	30,149	29,387	90,744	84,521
Operating income	139,208	122,013	477,220	411,771
Interest expense, net	782	505	2,480	1,267
Income before income taxes	138,426	121,508	474,740	410,504
Income tax expense	51,114	44,905	176,057	151,681
Net income	$ 87,312	$ 76,603	$ 298,683	$ 258,823
Net income per share – basic	$ 0.64	$ 0.56	$ 2.20	$ 1.87
Net income per share – diluted	$ 0.64	$ 0.55	$ 2.18	$ 1.85
Weighted average shares outstanding:
Basic (in shares)	135,525	137,367	135,997	138,293
Diluted (in shares)	136,741	138,863	137,292	140,002
Dividend Amount Per Share	$ 0.20	$ 0.16	$ 0.56	$ 0.45

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Cash flows from operating activities:
Net income	$ 298,683	$ 258,823
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	90,744	84,521
Loss on disposition of property and equipment	115	249
Share-based compensation expense	14,837	12,114
Excess tax benefit of stock options exercised	(16,994)	(7,333)
Deferred income taxes	(22,799)	(28,316)
Change in assets and liabilities:
Inventories	(299,112)	(316,516)
Prepaid expenses and other current assets	1,622	7,423
Accounts payable	156,320	166,555
Accrued employee compensation	(9,607)	(31,043)
Other accrued expenses	882	(379)
Income taxes payable	22,813	16,923
Other	5,950	4,543
Net cash provided by operating activities	243,454	167,564
Cash flows from investing activities:
Capital expenditures	(163,468)	(125,425)
Proceeds from sale of property and equipment	371	309
Net cash used in investing activities	(163,097)	(125,116)
Cash flows from financing activities:
Borrowings under revolving credit agreement	525,000	260,000
Repayments under revolving credit agreement	(335,000)	(110,000)
Excess tax benefit of stock options exercised	16,994	7,333
Principal payments under capital lease obligations	(318)	(57)
Repurchase of shares to satisfy tax obligations	(2,998)	(4,766)
Repurchase of common stock	(243,956)	(244,382)
Net proceeds from issuance of common stock	36,354	16,461
Cash dividends paid to stockholders	(76,215)	(62,270)
Net cash used in financing activities	(80,139)	(137,681)
Net change in cash and cash equivalents	218	(95,233)
Cash and cash equivalents at beginning of period	51,134	142,743
Cash and cash equivalents at end of period	51,352	47,510
Cash paid during the period for:
Interest	1,694	546
Income taxes	175,485	162,073
Supplemental disclosures of non-cash activities:
Property and equipment acquired through capital lease	6,434	1,988
Non-cash accruals for construction in progress	$ 23,731	$ 7,654

General

General	9 Months Ended
	Sep. 26, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	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 September 26, 2015 , the Company operated a total of 1,465 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	9 Months Ended
	Sep. 26, 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 $190.0 million in borrowings under the Senior Credit Facility (as defined in Note 5) at September 26, 2015 , no borrowings at December 27, 2014 , and $150.0 million at September 27, 2014 . Based on current market interest rates, the carrying value of our borrowings under the Senior Credit Facility approximates fair value.

Share Based Compensation

Share Based Compensation	9 Months Ended
	Sep. 26, 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 nine months ended September 26, 2015 . For the third quarters of fiscal 2015 and 2014 , share-based compensation expense was $5.0 million and $4.0 million , respectively and $14.8 million and $12.1 million for the first nine months of fiscal 2015 and 2014 , respectively. Stock Options The following summarizes information concerning stock option grants during the first nine months of fiscal 2015 and 2014 : Fiscal nine months ended September 26, September 27, Stock options granted 1,049,291 1,142,719 Weighted average exercise price $ 83.44 $ 63.88 Weighted average fair value per option $ 19.47 $ 15.32 As of September 26, 2015 , total unrecognized compensation expense related to non-vested stock options was approximately $24.1 million with a remaining weighted average expense recognition period of 1.4 years. Restricted Stock Units The following summarizes information concerning restricted stock unit grants during the first nine months of fiscal 2015 and 2014 : Fiscal nine months ended September 26, September 27, Restricted stock units granted 53,228 57,452 Weighted average fair value per share $ 84.46 $ 64.51 As of September 26, 2015 , total unrecognized compensation expense related to non-vested restricted stock units was approximately $7.4 million with a remaining weighted average expense recognition period of 2.3 years.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 26, 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 September 26, 2015 Fiscal three months ended September 27, 2014 Income Shares Per Share Amount Income Shares Per Share Amount Basic net income per share: $ 87,312 135,525 $ 0.64 $ 76,603 137,367 $ 0.56 Dilutive stock options and restricted stock units outstanding — 1,216 — — 1,496 (0.01 ) Diluted net income per share: $ 87,312 136,741 $ 0.64 $ 76,603 138,863 $ 0.55 Fiscal nine months ended September 26, 2015 Fiscal nine months ended September 27, 2014 Income Shares Per Share Income Shares Per Share Basic net income per share: $ 298,683 135,997 $ 2.20 $ 258,823 138,293 $ 1.87 Dilutive stock options and restricted stock units outstanding — 1,295 (0.02 ) — 1,709 (0.02 ) Diluted net income per share: $ 298,683 137,292 $ 2.18 $ 258,823 140,002 $ 1.85 Anti-dilutive stock options excluded from the above calculations totaled approximately 0.7 million and 1.4 million shares for the three months ended September 26, 2015 and September 27, 2014 , respectively, and 0.9 million and 1.1 million shares for the nine months ended September 26, 2015 and September 27, 2014 , respectively.

Senior Credit Facility

Senior Credit Facility	9 Months Ended
	Sep. 26, 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. Under the Senior Credit Facility, the Company had $190.0 million outstanding at September 26, 2015 , no outstanding borrowings at December 27, 2014 , and $150.0 million outstanding at September 27, 2014 . There were $42.8 million , $40.7 million , and $41.1 million outstanding letters of credit under the Senior Credit Facility as of September 26, 2015 , December 27, 2014 , and September 27, 2014 , respectively. Borrowings bear interest at either the bank’s base rate ( 3.25% at September 26, 2015 ) or the London Inter-Bank Offer Rate (“LIBOR”) ( 0.19% at September 26, 2015 ) plus an additional amount ranging from 0.40% to 1.00% per annum ( 0.50% at September 26, 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 ( 0.10% at September 26, 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 September 26, 2015 , the Company was in compliance with all debt covenants.

Treasury Stock

Treasury Stock	9 Months Ended
	Sep. 26, 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 1.4 million and 1.6 million shares of common stock under the share repurchase program for a total cost of $119.4 million and $97.4 million during the third quarters of fiscal 2015 and fiscal 2014 , respectively. During the first nine months of 2015 and 2014 , the Company repurchased 2.9 million and 3.8 million shares under the share repurchase program for a total cost of $244.0 million and $244.4 million , respectively. As of September 26, 2015 , the Company had remaining authorization under the share repurchase program of $619.4 million , exclusive of any fees, commissions, or other expenses.

Capital Stock and Dividends

Capital Stock and Dividends	9 Months Ended
	Sep. 26, 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 nine months of fiscal 2015 and 2014 , the Board of Directors declared the following cash dividends: Date Declared Dividend Amount Per Share Record Date Date Paid August 3, 2015 $ 0.20 August 17, 2015 September 1, 2015 May 4, 2015 $ 0.20 May 18, 2015 June 2, 2015 February 4, 2015 $ 0.16 February 23, 2015 March 10, 2015 July 30, 2014 $ 0.16 August 18, 2014 September 3, 2014 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 November 2, 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 December 1, 2015 to stockholders of record as of the close of business on November 16, 2015 .

Income Taxes

Income Taxes	9 Months Ended
	Sep. 26, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes: The Company’s effective income tax rate decreased to 36.9% in the third quarter of fiscal 2015 compared to 37.0% for the third quarter of fiscal 2014 . For the first nine months of fiscal 2015 , our effective income tax rate increased to 37.1% compared to 36.9% for the first nine 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	9 Months Ended
	Sep. 26, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies: Construction and Real Estate Commitments At September 26, 2015 , the Company had contractual commitments related to the construction of its new distribution center in Casa Grande, Arizona of approximately $6.3 million . Letters of Credit At September 26, 2015 , there were $42.8 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 the vendors under which the vendors represented that their products complied with all the 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 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 and its vendors 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 related to products purchased from one vendor. The vendor of these products and the Company engaged in settlement discussions with the DOJ and EPA that resulted in the execution by the Company of a settlement agreement. The settlement agreement requires the Company to pay a civil penalty, most of which will be indemnified by the vendor. In addition, the Company will implement a formal compliance program designed to ensure all small engine products purchased by the Company for resale comply with the Clean Air Act. The Company also will sponsor an emissions offset program that will result in the replacement of 22 older wood-burning stoves with EPA certified stoves. The settlement amount did not differ materially from the amount accrued. The cost of the settlement and the compliance and emission offset program will not have a material effect on our financial condition, results of operations or cash flows. The settlement agreement and other documents relating to the matter were filed on September 30, 2015 with the U.S. District Court in Washington, D.C. The settlement is subject to approval by the court. 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 financial condition, results of operations or cash flows.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 26, 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 nine months ended September 26, 2015 and September 27, 2014 : Fiscal three months ended Fiscal nine months ended September 26, 2015 September 27, 2014 September 26, 2015 September 27, 2014 Product Category: Livestock and Pet 46 % 45 % 45 % 45 % Hardware, Tools and Truck 23 23 22 22 Seasonal, Gift and Toy Products 19 19 21 20 Clothing and Footwear 6 7 7 7 Agriculture 6 6 5 6 Total 100 % 100 % 100 % 100 %

New Accounting Pronouncements N

New Accounting Pronouncements New Accounting Pronouncements	9 Months Ended
	Sep. 26, 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. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” which implemented 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 Consolidated Financial Statements and related disclosures, including which transition method it will adopt. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory" (“ASU 2015-11”). This update requires an entity that determines the cost of inventory by methods other than last-in, first-out and the retail inventory method to measure inventory at the lower of cost and net realizable value. ASU 2015-11 requires prospective application and is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years, with early adoption permitted. The Company does not expect that the adoption of this guidance will have a material impact on our Consolidated Financial Statements and related disclosures.

General (Policies)

General (Policies)	9 Months Ended
	Sep. 26, 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)	9 Months Ended
	Sep. 26, 2015
Share-based Compensation [Abstract]
Share-based Compensation	The following summarizes information concerning stock option grants during the first nine months of fiscal 2015 and 2014 : Fiscal nine months ended September 26, September 27, Stock options granted 1,049,291 1,142,719 Weighted average exercise price $ 83.44 $ 63.88 Weighted average fair value per option $ 19.47 $ 15.32
Restricted Stock Units	The following summarizes information concerning restricted stock unit grants during the first nine months of fiscal 2015 and 2014 : Fiscal nine months ended September 26, September 27, Restricted stock units granted 53,228 57,452 Weighted average fair value per share $ 84.46 $ 64.51

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 26, 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 September 26, 2015 Fiscal three months ended September 27, 2014 Income Shares Per Share Amount Income Shares Per Share Amount Basic net income per share: $ 87,312 135,525 $ 0.64 $ 76,603 137,367 $ 0.56 Dilutive stock options and restricted stock units outstanding — 1,216 — — 1,496 (0.01 ) Diluted net income per share: $ 87,312 136,741 $ 0.64 $ 76,603 138,863 $ 0.55 Fiscal nine months ended September 26, 2015 Fiscal nine months ended September 27, 2014 Income Shares Per Share Income Shares Per Share Basic net income per share: $ 298,683 135,997 $ 2.20 $ 258,823 138,293 $ 1.87 Dilutive stock options and restricted stock units outstanding — 1,295 (0.02 ) — 1,709 (0.02 ) Diluted net income per share: $ 298,683 137,292 $ 2.18 $ 258,823 140,002 $ 1.85

Capital Stock and Dividends (Ta

Capital Stock and Dividends (Tables)	9 Months Ended
	Sep. 26, 2015
Equity [Abstract]
Schedule of Dividends Payable	During the first nine months of fiscal 2015 and 2014 , the Board of Directors declared the following cash dividends: Date Declared Dividend Amount Per Share Record Date Date Paid August 3, 2015 $ 0.20 August 17, 2015 September 1, 2015 May 4, 2015 $ 0.20 May 18, 2015 June 2, 2015 February 4, 2015 $ 0.16 February 23, 2015 March 10, 2015 July 30, 2014 $ 0.16 August 18, 2014 September 3, 2014 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)	9 Months Ended
	Sep. 26, 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 nine months ended September 26, 2015 and September 27, 2014 : Fiscal three months ended Fiscal nine months ended September 26, 2015 September 27, 2014 September 26, 2015 September 27, 2014 Product Category: Livestock and Pet 46 % 45 % 45 % 45 % Hardware, Tools and Truck 23 23 22 22 Seasonal, Gift and Toy Products 19 19 21 20 Clothing and Footwear 6 7 7 7 Agriculture 6 6 5 6 Total 100 % 100 % 100 % 100 %

General (Details)

General (Details)	Sep. 26, 2015storestate
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of stores	1,465
Number of states in which entity operates | state	49

Fair Value of Financial Instr23

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 26, 2015	Dec. 27, 2014	Sep. 27, 2014
Fair Value Disclosures [Abstract]
Revolving credit loan	$ 190,000	$ 0	$ 150,000

Share Based Compensation (Detai

Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 26, 2015	Sep. 26, 2015	Sep. 27, 2014	Sep. 26, 2015	Sep. 27, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 5,000	$ 4,000	$ 14,837	$ 12,114
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted				1,049,291	1,142,719
Weighted average exercise price				$ 83.44	$ 63.88
Weighted average fair value per option				$ 19.47	$ 15.32
Total unrecognized compensation expense	$ 24,100	24,100		$ 24,100
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 5 months
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted				53,228	57,452
Weighted average fair value per option				$ 84.46	$ 64.51
Total unrecognized compensation expense	$ 7,400	$ 7,400		$ 7,400
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 3 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		9 Months Ended
	Sep. 26, 2015	Sep. 27, 2014	Sep. 26, 2015	Sep. 27, 2014
Basic net income per share:
Net income	$ 87,312	$ 76,603	$ 298,683	$ 258,823
Weighted average number of shares outstanding, basic	135,525	137,367	135,997	138,293
Net income per share – basic	$ 0.64	$ 0.56	$ 2.20	$ 1.87
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)	1,216	1,496	1,295	1,709
Dilutive stock options and restricted stock units outstanding, per share (in dollars per share)	$ 0	$ (0.01)	$ (0.02)	$ (0.02)
Net income	$ 87,312	$ 76,603	$ 298,683	$ 258,823
Weighted average number of shares outstanding, diluted	136,741	138,863	137,292	140,002
Net income per share, diluted (in dollars per share)	$ 0.64	$ 0.55	$ 2.18	$ 1.85
Antidilutive securities excluded from computation of earnings per share, amount	700	1,400	900	1,100

Senior Credit Facility - Credit

Senior Credit Facility - Credit Agreement (Details) - USD ($)	Sep. 26, 2015	Sep. 26, 2015	Sep. 26, 2015	Dec. 27, 2014	Sep. 27, 2014
Line of Credit Facility [Line Items]
Line of credit facility, expiration date			Oct. 31, 2016
Revolving credit loan	$ 190,000,000	$ 190,000,000	$ 190,000,000	$ 0	$ 150,000,000
Letters of Credit Outstanding, Amount	$ 42,800,000	$ 42,800,000	$ 42,800,000	$ 40,700,000	$ 41,100,000
Debt instrument, basis spread on variable rate	0.50%
Commitment fee for unused capacity	0.10%
Base Rate
Line of Credit Facility [Line Items]
Line of credit facility, interest rate description	0.0325	bank’s base rate 3.25%
London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Line of credit facility, interest rate description	.0019	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%
Senior credit facility [Member]
Line of Credit Facility [Line Items]
Senior credit facility, maximum borrowing capacity	$ 400,000,000	$ 400,000,000	$ 400,000,000
Swingline loan [Member]
Line of Credit Facility [Line Items]
Swing loan maximum borrowing capacity	$ 30,000,000	$ 30,000,000	$ 30,000,000

Treasury Stock (Details)

Treasury Stock (Details) - USD ($) shares in Millions	3 Months Ended		9 Months Ended
	Sep. 26, 2015	Sep. 27, 2014	Sep. 26, 2015	Sep. 27, 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 Program Expiration Date			Dec. 31, 2017
Repurchased shares under the share repurchase program	1.4	1.6	2.9	3.8
Cost of share repurchased under the share repurchase program	$ 119,400,000	$ 97,400,000	$ 243,956,000	$ 244,382,000
Remaining authorization under the share repurchase program	$ 619,400,000		$ 619,400,000

Capital Stock - Narrative (Deta

Capital Stock - Narrative (Details) - shares	Sep. 26, 2015	Dec. 27, 2014	Sep. 27, 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	Nov. 02, 2015	Aug. 03, 2015	May. 04, 2015	Feb. 04, 2015	Jul. 30, 2014	Apr. 30, 2014	Feb. 05, 2014	Sep. 26, 2015	Sep. 27, 2014	Sep. 26, 2015	Sep. 27, 2014
Subsequent Event [Line Items]
Dividend Amount Per Share		$ 0.20	$ 0.20	$ 0.16	$ 0.16	$ 0.16	$ 0.13	$ 0.20	$ 0.16	$ 0.56	$ 0.45
Subsequent Event
Subsequent Event [Line Items]
Dividend Amount Per Share	$ 0.20

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 26, 2015	Sep. 27, 2014	Sep. 26, 2015	Sep. 27, 2014
Income Tax Disclosure [Abstract]
Effective income tax rate	36.90%	37.00%	37.10%	36.90%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	9 Months Ended
	Sep. 26, 2015USD ($)vendor	Dec. 27, 2014USD ($)	Sep. 27, 2014USD ($)
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Letters of Credit Outstanding, Amount	$ 42.8	$ 40.7	$ 41.1
Information about Litigation Matters
Number of vendors company purchased engines | vendor	1
Number of wood burning stoves	22
DC Construction Project
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase Obligation, Due in Next Twelve Months	$ 6.3

Segment Reporting (Details)

Segment Reporting (Details) - segment	Sep. 26, 2015	Sep. 26, 2015	Sep. 27, 2014	Sep. 26, 2015	Sep. 27, 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)		46.00%	45.00%	45.00%	45.00%
Hardware, Tools and Truck
Revenue from External Customer [Line Items]
Average percentage of sales (in hundredths)		23.00%	23.00%	22.00%	22.00%
Seasonal, Gift and Toy Products
Revenue from External Customer [Line Items]
Average percentage of sales (in hundredths)		19.00%	19.00%	21.00%	20.00%
Clothing and Footwear
Revenue from External Customer [Line Items]
Average percentage of sales (in hundredths)		6.00%	7.00%	7.00%	7.00%
Agriculture
Revenue from External Customer [Line Items]
Average percentage of sales (in hundredths)		6.00%	6.00%	5.00%	6.00%

Segment Reporting Number of Rep

Segment Reporting Number of Reportable Segments (Details)	Sep. 26, 2015segment
Segment Reporting [Abstract]
Number of Reportable Segments	1