Tractor Supply (TSCO) 10-Q 6 Aug 20 2020 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 27, 2020	Jul. 25, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 27, 2020
Document Transition Report	false
Entity File Number	000-23314
Entity Registrant Name	TRACTOR SUPPLY CO /DE/
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3139732
Entity Address, Street Address	5401 Virginia Way
Entity Address, City	Brentwood
Entity Address, State	TN
Entity Address, Postal Zip Code	37027
City Area Code	615
Local Phone Number	440-4000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of each class	Common Stock, $0.008 par value
Trading Symbol	TSCO
Name of each exchange on which registered	NASDAQ
Entity Central Index Key	0000916365
Entity Common Stock, Shares Outstanding		116,223,704
Current Fiscal Year End Date	--12-26
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019	Jun. 29, 2019
Current assets:
Cash and cash equivalents	$ 1,206,366	$ 84,241	$ 104,018
Inventories	1,688,508	1,602,781	1,733,150
Prepaid expenses and other current assets	135,238	100,865	95,051
Income taxes receivable	0	0	5,589
Total current assets	3,030,112	1,787,887	1,937,808
Property and equipment, net	1,148,225	1,163,956	1,135,310
Operating lease right-of-use assets	2,268,623	2,188,802	2,091,439
Goodwill and other intangible assets	124,492	124,492	124,492
Deferred Tax Assets, Deferred Income	12,866	0	0
Other assets	26,757	24,131	23,670
Total assets	6,611,075	5,289,268	5,312,719
Current liabilities:
Accounts payable	1,003,697	643,036	681,529
Accrued employee compensation	77,419	39,755	26,932
Other accrued expenses	270,463	247,690	222,919
Current portion of long-term debt	380,000	30,000	22,500
Current portion of finance lease liabilities	4,319	4,036	3,717
Current portion of operating lease liabilities	287,326	277,099	264,707
Income taxes payable	133,830	5,984	49,082
Total current liabilities	2,157,054	1,247,600	1,271,386
Long-term debt	536,051	366,480	466,290
Finance lease liabilities, less current portion	32,093	30,389	27,394
Operating lease liabilities, less current portion	2,087,934	2,001,162	1,928,367
Deferred Income Tax Liabilities, Net	0	153	3,592
Other long-term liabilities	102,213	76,361	70,748
Total liabilities	4,915,345	3,722,145	3,767,777
Stockholders’ equity:
Preferred stock	0	0	0
Common stock	1,396	1,389	1,386
Additional paid-in capital	1,024,089	966,698	928,094
Treasury stock	(3,277,215)	(3,013,996)	(2,814,912)
Accumulated other comprehensive (loss)/income	(6,335)	199	882
Retained earnings	3,953,795	3,612,833	3,429,492
Total stockholders’ equity	1,695,730	1,567,123	1,544,942
Total liabilities and stockholders’ equity	$ 6,611,075	$ 5,289,268	$ 5,312,719
Preferred Stock, Par or Stated Value Per Share	$ 1	$ 1	$ 1
Preferred Stock, Shares Authorized	40,000	40,000	40,000
Preferred Stock, Shares Issued	0	0	0
Common Stock, Par or Stated Value Per Share	$ 0.008	$ 0.008	$ 0.008
Common Stock, Shares Authorized	400,000,000	400,000,000	400,000,000
Common Stock, Shares, Issued	174,476,000	173,608,000	173,238,000
Common Stock, Shares, Outstanding	116,180,000	118,165,000	119,723,000
Treasury Stock, Shares	58,296,000	55,443,000	53,515,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Income Statement [Abstract]
Net sales	$ 3,176,327	$ 2,353,782	$ 5,135,515	$ 4,176,002
Cost of merchandise sold	2,019,514	1,533,037	3,317,453	2,740,273
Gross profit	1,156,813	820,745	1,818,062	1,435,729
Depreciation and amortization	52,547	48,998	103,983	94,765
Selling, general and administrative expenses	656,520	484,190	1,153,795	949,999
Operating income	447,746	287,557	560,284	390,965
Interest expense, net	8,438	5,176	13,487	10,106
Income before income taxes	439,308	282,381	546,797	380,859
Income tax expense	100,630	63,171	124,342	84,817
Net income	$ 338,678	$ 219,210	$ 422,455	$ 296,042
Net income per share – basic	$ 2.92	$ 1.82	$ 3.63	$ 2.45
Net income per share – diluted	$ 2.90	$ 1.80	$ 3.61	$ 2.43
Weighted average shares outstanding:
Basic	115,912	120,371	116,325	120,791
Diluted	116,812	121,508	117,122	121,830
Dividends declared per common share outstanding	$ 0.35	$ 0.35	$ 0.70	$ 0.66

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 338,678	$ 219,210	$ 422,455	$ 296,042
Change in fair value of interest rate swaps, net of taxes	(1,284)	(2,185)	(6,534)	(3,649)
Total other comprehensive loss	(1,284)	(2,185)	(6,534)	(3,649)
Total comprehensive income	$ 337,394	$ 217,025	$ 415,921	$ 292,393

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) Statement - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accum. Other Comp. Income/(Loss)	Retained Earnings
Beginning balance, shares outstanding (in shares) at Dec. 29, 2018		121,828
Beginning balance, Stockholders' equity at Dec. 29, 2018	$ 1,561,820	$ 1,375	$ 823,413	$ (2,480,677)	$ 3,814	$ 3,213,895
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issuance under stock award plans & ESPP (in shares)		570
Common stock issuance under stock award plans & ESPP	34,732	$ 5	34,727
Share-based compensation	9,624		9,624
Repurchase of shares to satisfy tax obligations	(3,026)		(3,026)
Repurchase of common stock, shares (in shares)		(1,724)
Repurchase of common stock	(155,319)			(155,319)
Dividends paid	(37,623)					(37,623)
Change in fair value of interest rate swaps, net of taxes	(1,464)				(1,464)
Net income	76,832					76,832
Ending balance, shares outstanding (in shares) at Mar. 30, 2019		120,674
Ending balance, Stockholders' equity at Mar. 30, 2019	$ 1,485,576	$ 1,380	864,738	(2,635,996)	$ 3,067	$ 3,252,387
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative adjustment as a result of ASU 2017-12 adoption	—				717	(717)
Beginning balance, shares outstanding (in shares) at Dec. 29, 2018		121,828
Beginning balance, Stockholders' equity at Dec. 29, 2018	$ 1,561,820	$ 1,375	823,413	(2,480,677)	$ 3,814	$ 3,213,895
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of shares to satisfy tax obligations	(3,139)
Repurchase of common stock	(334,235)
Dividends paid	(79,728)
Change in fair value of interest rate swaps, net of taxes	(3,649)
Net income	296,042
Ending balance, shares outstanding (in shares) at Jun. 29, 2019		119,723
Ending balance, Stockholders' equity at Jun. 29, 2019	$ 1,544,942	$ 1,386	928,094	(2,814,912)	882	3,429,492
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative adjustment as a result of ASU 2017-12 adoption	2,084,880
Beginning balance, shares outstanding (in shares) at Dec. 29, 2018		121,828
Beginning balance, Stockholders' equity at Dec. 29, 2018	$ 1,561,820	$ 1,375	823,413	(2,480,677)	3,814	3,213,895
Ending balance, shares outstanding (in shares) at Dec. 28, 2019		118,165
Ending balance, Stockholders' equity at Dec. 28, 2019	1,567,123	$ 1,389	966,698	(3,013,996)	199	3,612,833
Beginning balance, shares outstanding (in shares) at Mar. 30, 2019		120,674
Beginning balance, Stockholders' equity at Mar. 30, 2019	1,485,576	$ 1,380	864,738	(2,635,996)	3,067	3,252,387
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issuance under stock award plans & ESPP (in shares)		781
Common stock issuance under stock award plans & ESPP	54,699	$ 6	54,693
Share-based compensation	8,776		8,776
Repurchase of shares to satisfy tax obligations			(113)
Repurchase of common stock, shares (in shares)		(1,732)
Repurchase of common stock	(178,916)			(178,916)
Dividends paid	(42,105)					(42,105)
Change in fair value of interest rate swaps, net of taxes	(2,185)				(2,185)
Net income	219,210					219,210
Ending balance, shares outstanding (in shares) at Jun. 29, 2019		119,723
Ending balance, Stockholders' equity at Jun. 29, 2019	1,544,942	$ 1,386	928,094	(2,814,912)	882	3,429,492
Beginning balance, shares outstanding (in shares) at Dec. 28, 2019		118,165
Beginning balance, Stockholders' equity at Dec. 28, 2019	1,567,123	$ 1,389	966,698	(3,013,996)	199	3,612,833
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issuance under stock award plans & ESPP (in shares)		280
Common stock issuance under stock award plans & ESPP	10,603	$ 2	10,601
Share-based compensation	6,945		6,945
Repurchase of shares to satisfy tax obligations	(5,407)		(5,407)
Repurchase of common stock, shares (in shares)		(2,853)
Repurchase of common stock	(263,219)			(263,219)
Dividends paid	(40,849)					(40,849)
Change in fair value of interest rate swaps, net of taxes	(5,250)				(5,250)
Net income	83,777					83,777
Ending balance, shares outstanding (in shares) at Mar. 28, 2020		115,592
Ending balance, Stockholders' equity at Mar. 28, 2020	1,353,723	$ 1,391	978,837	(3,277,215)	(5,051)	3,655,761
Beginning balance, shares outstanding (in shares) at Dec. 28, 2019		118,165
Beginning balance, Stockholders' equity at Dec. 28, 2019	1,567,123	$ 1,389	966,698	(3,013,996)	199	3,612,833
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of shares to satisfy tax obligations	(7,391)
Repurchase of common stock	(263,219)
Dividends paid	(81,493)
Change in fair value of interest rate swaps, net of taxes	(6,534)
Net income	422,455
Ending balance, shares outstanding (in shares) at Jun. 27, 2020		116,180
Ending balance, Stockholders' equity at Jun. 27, 2020	$ 1,695,730	$ 1,396	1,024,089	(3,277,215)	(6,335)	3,953,795
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative adjustment as a result of ASU 2017-12 adoption	—
Beginning balance, shares outstanding (in shares) at Mar. 28, 2020		115,592
Beginning balance, Stockholders' equity at Mar. 28, 2020	$ 1,353,723	$ 1,391	978,837	(3,277,215)	(5,051)	3,655,761
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issuance under stock award plans & ESPP (in shares)		588
Common stock issuance under stock award plans & ESPP	39,737	$ 5	39,732
Share-based compensation	7,504		7,504
Repurchase of shares to satisfy tax obligations	(1,984)		(1,984)
Repurchase of common stock, shares (in shares)		0
Repurchase of common stock	0			0
Dividends paid	(40,644)					(40,644)
Change in fair value of interest rate swaps, net of taxes	(1,284)				(1,284)
Net income	338,678					338,678
Ending balance, shares outstanding (in shares) at Jun. 27, 2020		116,180
Ending balance, Stockholders' equity at Jun. 27, 2020	$ 1,695,730	$ 1,396	$ 1,024,089	$ (3,277,215)	$ (6,335)	$ 3,953,795

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
Cash flows from operating activities:
Net income	$ 422,455	$ 296,042
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	103,983	94,765
Gain on disposition of property and equipment	(342)	(309)
Share-based compensation expense	14,449	18,400
Deferred income taxes	(13,019)	10,199
Change in assets and liabilities:
Inventories	(85,727)	(143,608)
Prepaid expenses and other current assets	(34,373)	19,396
Accounts payable	360,661	61,548
Accrued employee compensation	37,664	(27,114)
Other accrued expenses	24,908	(21,856)
Income taxes	127,846	45,836
Other	34,633	(4,425)
Net cash provided by operating activities	993,138	348,874
Cash flows from investing activities:
Capital expenditures	(86,624)	(83,540)
Proceeds from sale of property and equipment	646	611
Net cash used in investing activities	(85,978)	(82,929)
Cash flows from financing activities:
Borrowings under debt facilities	1,159,000	567,000
Repayments under debt facilities	(639,000)	(485,750)
Payments of Debt Issuance Costs	1,237	0
Principal payments under finance lease liabilities	(2,035)	(1,805)
Repurchase of shares to satisfy tax obligations	(7,391)	(3,139)
Repurchase of common stock	(263,219)	(334,235)
Net proceeds from issuance of common stock	50,340	89,431
Cash dividends paid to stockholders	(81,493)	(79,728)
Net cash provided by/(used in) financing activities	214,965	(248,226)
Net change in cash and cash equivalents	1,122,125	17,719
Cash and cash equivalents at beginning of period	84,241	86,299
Cash and cash equivalents at end of period	1,206,366	104,018
Cash paid during the period for:
Interest	10,587	10,006
Income taxes	6,825	27,196
Supplemental disclosures of non-cash activities:
Non-cash accruals for construction in progress	5,789	15,360
Increase of operating lease assets and liabilities from new or modified leases	219,105	133,044
Increase of finance lease assets and liabilities from new or modified leases	$ 4,022	$ 0
Operating lease assets and liabilities recognized upon adoption of ASC 842	—	2,084,880

General

General	6 Months Ended
	Jun. 27, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	General: Nature of Business Founded in 1938, Tractor Supply Company (the “Company” or “we” or “our” or “us”) is the largest rural lifestyle retailer in the United States (“U.S.”). The Company is focused on supplying the needs of recreational farmers, ranchers, and all those who enjoy living the rural lifestyle (which we refer to as the “ Out Here ” lifestyle), as well as tradesmen and small businesses. Stores are located primarily in towns outlying major metropolitan markets and in rural communities. The Company also owns and operates Petsense, LLC (“Petsense”), a small-box pet specialty supply retailer focused on meeting the needs of pet owners, primarily in small and mid-sized communities, and offering a variety of pet products and services. At June 27, 2020, the Company operated a total of 2,061 retail stores in 49 states (1,881 Tractor Supply and Del’s retail stores and 180 Petsense retail stores) and also offered an expanded assortment of products online at TractorSupply.com and Petsense.com . 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 (“SEC”). 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 28, 2019. The results of operations for our interim periods are not necessarily indicative of results for the full fiscal year. The COVID-19 pandemic has created significant public health concerns as well as economic disruption, uncertainty, and volatility which may negatively affect our business operations. As a result, if the pandemic persists or worsens, our accounting estimates and assumptions could be impacted in subsequent interim reports and upon final determination at year-end, and it is reasonably possible such changes could be significant (although the potential effects cannot be estimated at this time).

General Details

General Details	Jun. 27, 2020storestate
Nature of business [Abstract]
Number of states in which rural lifestyle retail stores are operated by the company | state	49
Parent Company [Member]
Nature of business [Abstract]
Number of rural lifestyle retail stores operated by the company	2,061
TSCO stores [Domain]
Nature of business [Abstract]
Number of rural lifestyle retail stores operated by the company	1,881
Petsense stores [Domain]
Nature of business [Abstract]
Number of rural lifestyle retail stores operated by the company	180

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 27, 2020
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, debt instruments, and interest rate swaps.  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. As described in further detail in Note 5 to the Condensed Consolidated Financial Statements, the Company had $917.5 million, $397.5 million, and $490.0 million in borrowings under its debt facilities at June 27, 2020, December 28, 2019, and June 29, 2019, respectively. Based on market interest rates (Level 2 inputs), the carrying value of borrowings in our debt facilities approximates fair value for each period reported. The fair value of the Company’s interest rate swaps is determined based on the present value of expected future cash flows using forward rate curves (a Level 2 input). As described in further detail in Note 6 to the Condensed Consolidated Financial Statements, the fair value of the interest rate swaps, excluding accrued interest, was a net liability of $8.5 million at June 27, 2020 and a net asset of $0.3 million and $0.9 million at December 28, 2019 and June 29, 2019, respectively.

Share Based Compensation

Share Based Compensation	6 Months Ended
	Jun. 27, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]
Share Based Compensation	Share-Based Compensation: Share-based compensation includes stock options, restricted stock units, performance-based restricted share units, 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 stock options, restricted stock units, and performance-based restricted share units plus a 15% 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 the fiscal six months ended June 27, 2020. For the second quarter of fiscal 2020 and 2019, share-based compensation expense was $7.5 million and $8.8 million, respectively, and $14.4 million and $18.4 million for the first six months of fiscal 2020 and 2019, respectively. Stock Options The following table summarizes information concerning stock option grants during the first six months of fiscal 2020: Fiscal Six Months Ended June 27, 2020 Stock options granted 417,025 Weighted average exercise price $ 91.21 Weighted average grant date fair value per option $ 18.57 As of June 27, 2020, total unrecognized compensation expense related to non-vested stock options was approximately $11.2 million with a remaining weighted average expense recognition period of 2.2 years. Restricted Stock Units and Performance-Based Restricted Share Units The following table summarizes information concerning restricted stock unit and performance-based restricted share unit grants during the first six months of fiscal 2020: Fiscal Six Months Ended June 27, 2020 Restricted stock units granted 305,029 Performance-based restricted share units granted (a) 80,057 Weighted average grant date fair value per share $ 91.98 (a) Assumes 100% target level achievement of the relative performance targets. In fiscal 2020, the Company granted awards that are subject to the achievement of specified performance goals. The performance metrics for the units are growth in net sales and growth in earnings per diluted share. The number of performance-based restricted share units presented in the foregoing table represent the shares that can be achieved at the performance metric target value. The actual number of shares that will be issued under the performance share awards, which may be higher or lower than the target, will be determined by the level of achievement of the performance goals. If the performance targets are achieved, the units will be issued based on the achievement level and the grant date fair value and will cliff vest in full on the third anniversary of the date of the grant. As of June 27, 2020, total unrecognized compensation expense related to non-vested restricted stock units and non-vested performance-based restricted share units was approximately $45.1 million with a remaining weighted average expense recognition period of 2.2 years.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 27, 2020
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 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 during the period. Dilutive shares are computed using the treasury stock method for share-based awards. Performance-based restricted share units are included in diluted shares only if the related performance conditions are considered satisfied as of the end of the reporting period. Net income per share is calculated as follows (in thousands, except per share amounts): Fiscal Three Months Ended Fiscal Three Months Ended June 27, 2020 June 29, 2019 Income Shares Per Share Income Shares Per Share Basic net income per share: $ 338,678 115,912 $ 2.92 $ 219,210 120,371 $ 1.82 Dilutive effect of share-based awards — 900 (0.02) — 1,137 (0.02) Diluted net income per share: $ 338,678 116,812 $ 2.90 $ 219,210 121,508 $ 1.80 Fiscal Six Months Ended Fiscal Six Months Ended June 27, 2020 June 29, 2019 Income Shares Per Share Income Shares Per Share Basic net income per share: $ 422,455 116,325 $ 3.63 $ 296,042 120,791 $ 2.45 Dilutive effect of share-based awards — 797 (0.02) — 1,039 (0.02) Diluted net income per share: $ 422,455 117,122 $ 3.61 $ 296,042 121,830 $ 2.43 Anti-dilutive stock awards excluded from the above calculations totaled approximately 0.5 million and 0.3 million shares for the fiscal three months ended June 27, 2020 and June 29, 2019, respectively, and 0.6 million and 0.3 million shares for the fiscal six months ended June 27, 2020 and June 29, 2019, respectively.

Debt

Debt	6 Months Ended
	Jun. 27, 2020
Debt Disclosure [Abstract]
Debt	Debt: The following table summarizes the Company’s outstanding debt as of the dates indicated (in millions): June 27, December 28, June 29, Senior Notes $ 150.0 $ 150.0 $ 150.0 Senior Credit Facility: February 2016 Term Loan 135.0 145.0 150.0 June 2017 Term Loan 82.5 87.5 90.0 March 2020 Term Loan 200.0 — — April 2020 Term Loan 350.0 — — Revolving credit loans — 15.0 100.0 Total outstanding borrowings 917.5 397.5 490.0 Less: unamortized debt issuance costs (1.4) (1.0) (1.2) Total debt 916.1 396.5 488.8 Less: current portion of long-term debt (380.0) (30.0) (22.5) Long-term debt $ 536.1 $ 366.5 $ 466.3 Outstanding letters of credit $ 52.4 $ 32.0 $ 37.3 Senior Notes On August 14, 2017, the Company entered into a note purchase and private shelf agreement (the “Note Purchase Agreement”), pursuant to which the Company agreed to sell $150 million aggregate principal amount of senior unsecured notes due August 14, 2029 (the “2029 Notes”) in a private placement. The 2029 Notes bear interest at 3.70% per annum with interest payable semi-annually in arrears on each annual and semi-annual anniversary of the issuance date. The obligations under the Note Purchase Agreement are unsecured, but guaranteed by each of the Company’s material subsidiaries. The Company may from time to time issue and sell additional senior unsecured notes (the “Shelf Notes”) pursuant to the Note Purchase Agreement, in an aggregate principal amount of up to $150 million. The Shelf Notes will have a maturity date of no more than 12 years after the date of original issuance and may be issued through August 14, 2020, unless earlier terminated in accordance with the terms of the Note Purchase Agreement. Pursuant to the Note Purchase Agreement, the 2029 Notes and any Shelf Notes (collectively, the “Notes”) are redeemable by the Company, in whole at any time or in part from time to time, at 100% of the principal amount of the Notes being redeemed, together with accrued and unpaid interest thereon and a make whole amount calculated by discounting all remaining scheduled payments on the Notes by the yield on the U.S. Treasury security with a maturity equal to the remaining average life of the Notes plus 0.50%. Senior Credit Facility On February 19, 2016, the Company entered into a senior credit facility (the “2016 Senior Credit Facility”), as amended from time to time, which provides borrowing capacity under term loan agreements as well as a revolving credit facility. Proceeds from the 2016 Senior Credit Facility may be used for working capital, capital expenditures, dividends, share repurchases, and other matters. There are no compensating balance requirements associated with the 2016 Senior Credit Facility. The 2016 Senior Credit Facility contains a $500 million revolving credit facility (the “Revolver”) with a sublimit of $50 million for swingline loans. This agreement is unsecured and matures on February 19, 2022. Borrowings under the Revolver bear interest either at the bank’s base rate (3.250% at June 27, 2020) or at the London Inter-Bank Offer Rate (“LIBOR”) (0.178% at June 27, 2020) plus an additional amount ranging from 0.500% to 1.125% per annum (0.750% at June 27, 2020), 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 0.075% to 0.200% per annum (0.125% at June 27, 2020), adjusted quarterly based on the Company’s leverage ratio. On February 19, 2016, at the inception of the 2016 Senior Credit Facility, the Company entered into a $200 million term loan (the “February 2016 Term Loan”). This agreement is unsecured and matures on February 19, 2022. The February 2016 Term Loan of $200 million requires quarterly payments totaling $10 million per year in years one and two and $20 million per year in years three through the maturity date, with the remaining balance due in full on the maturity date of February 19, 2022. Borrowings under the February 2016 Term Loan bear interest either at the bank’s base rate (3.250% at June 27, 2020) or at LIBOR (0.178% at June 27, 2020) plus an additional amount ranging from 0.500% to 1.125% per annum (0.750% at June 27, 2020), adjusted quarterly based on our leverage ratio. On June 15, 2017, pursuant to an accordion feature available under the 2016 Senior Credit Facility, the Company entered into an incremental term loan agreement (the “June 2017 Term Loan”) which increased the term loan capacity under the 2016 Senior Credit Facility by $100 million. This agreement is unsecured and matures on June 15, 2022. The June 2017 Term Loan of $100 million requires quarterly payments totaling $5 million per year in years one and two and $10 million per year in years three through the maturity date, with the remaining balance due in full on the maturity date of June 15, 2022. Borrowings under the June 2017 Term Loan bear interest either at the bank’s base rate (3.250% at June 27, 2020) or at LIBOR (0.178% at June 27, 2020) plus an additional 1.000% per annum. On March 12, 2020, pursuant to an accordion feature available under the 2016 Senior Credit Facility, the Company entered into an incremental term loan agreement (the “March 2020 Term Loan”) which increased the term loan capacity under the 2016 Senior Credit Facility by $200 million. This agreement is unsecured and matures with the amount due in full on March 16, 2022. Borrowings under the March 2020 Term Loan bear interest either at the bank’s base rate (3.250% at June 27, 2020) or at LIBOR (0.178% at June 27, 2020) plus an additional 0.750% per annum. On April 22, 2020, the Company entered into a second amendment to the 2016 Senior Credit Facility (the “Second Amendment”) to, among other things, increase the option to increase the aggregate principal amount of Revolving Loan Commitments and Incremental Term Loans (as defined in the 2016 Senior Credit Facility) up to an amount not to exceed $650 million. Simultaneously with the Second Amendment, the Company entered into an incremental term loan agreement (the “April 2020 Term Loan”) in the amount of $350 million, which is in addition to the 2016 Senior Credit Facility’s existing term loan and revolving credit facility. This agreement is unsecured and matures with the amount due in full on April 21, 2021. Borrowings under the April 2020 Term Loan bear interest either at the bank’s base rate (3.250% at June 27, 2020) plus an additional amount ranging from 0.250% to 1.500% per annum (0.750% at June 27, 2020) or at LIBOR (0.178% at June 27, 2020), with a floor of 0.750%, plus an additional amount ranging from 1.250% to 2.500% per annum (1.750% at June 27, 2020), adjusted quarterly based on our leverage ratio. As further described in Note 6 to the Condensed Consolidated Financial Statements, the Company has entered into interest rate swap agreements in order to hedge our exposure to variable rate interest payments associated with each of the term loans under the 2016 Senior Credit Facility other than the April 2020 Term Loan. Covenants and Default Provisions of the Debt Agreements The 2016 Senior Credit Facility and the Note Purchase Agreement (collectively, the “Debt Agreements”) require quarterly compliance with respect to two material covenants: a fixed charge coverage ratio and a leverage ratio. Both ratios are calculated on a trailing twelve-month basis at the end of each fiscal quarter. The fixed charge coverage ratio compares earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent expense (“consolidated EBITDAR”) to the sum of interest paid and rental expense (excluding any straight-line rent adjustments). The fixed charge coverage ratio shall be greater than or equal to 2.00 to 1.0 as of the last day of each fiscal quarter. The leverage ratio compares rental expense (excluding any straight-line rent adjustments) multiplied by a factor of six plus total debt to consolidated EBITDAR. The leverage ratio shall be less than or equal to 4.00 to 1.0 as of the last day of each fiscal quarter. The Debt Agreements also contain certain other restrictions regarding additional indebtedness, capital expenditures, business operations, guarantees, investments, mergers, consolidations and sales of assets, prepayment of debts, transactions with subsidiaries or affiliates, and liens. As of June 27, 2020, the Company was in compliance with all debt covenants. The Debt Agreements contain customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other material indebtedness, certain events of bankruptcy and insolvency, material judgments, certain ERISA events, and invalidity of loan documents. Upon certain changes of control, payment under the Debt Agreements could become due and payable. In addition, under the Note Purchase Agreement, upon an event of default or change of control, the make whole payment described above may become due and payable. The Note Purchase Agreement also requires that, in the event the Company amends its 2016 Senior Credit Facility, or any subsequent credit facility of $100 million or greater, such that it contains covenant or default provisions that are not provided in the Note Purchase Agreement or that are similar to those contained in the Note Purchase Agreement but which contain percentages, amounts, formulas or grace periods that are more restrictive than those set forth in the Note Purchase Agreement or are otherwise more beneficial to the lenders thereunder, the Note Purchase Agreement shall be automatically amended to include such additional or amended covenants and/or default provisions.

Interest Rate Swaps

Interest Rate Swaps	6 Months Ended
	Jun. 27, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest Rate Swaps	Interest Rate Swaps: The Company entered into an interest rate swap agreement which became effective on March 31, 2016, with a maturity date of February 19, 2021. The notional amount of this swap agreement began at $197.5 million (the principal amount of the February 2016 Term Loan borrowings as of March 31, 2016) and will amortize at the same time and in the same amount as the February 2016 Term Loan borrowings, as described in Note 5 to the Condensed Consolidated Financial Statements, up to the maturity date of the interest rate swap agreement on February 19, 2021. As of June 27, 2020, the notional amount of the interest rate swap was $135.0 million. The Company entered into a second interest rate swap agreement which became effective on June 30, 2017, with a maturity date of June 15, 2022. The notional amount of this swap agreement began at $100 million (the principal amount of the June 2017 Term Loan borrowings as of June 30, 2017) and will amortize at the same time and in the same amount as the June 2017 Term Loan borrowings, as described in Note 5 to the Condensed Consolidated Financial Statements. As of June 27, 2020, the notional amount of the interest rate swap was $82.5 million. The Company entered into a third interest rate swap agreement which became effective on March 18, 2020, with a maturity date of March 18, 2025. The notional amount of this swap agreement is fixed at $200 million. The Company’s interest rate swap agreements are executed for risk management and are not held for trading purposes. The objective of the interest rate swap agreements is to mitigate interest rate risk associated with future changes in interest rates. To accomplish this objective, the interest rate swap agreements are intended to hedge the variable cash flows associated with the variable rate term loan borrowings under the 2016 Senior Credit Facility. The interest rate swap agreements entitle the Company to receive, at specified intervals, a variable rate of interest based on LIBOR in exchange for the payment of a fixed rate of interest throughout the life of the agreement, without exchange of the underlying notional amount. The Company has designated its interest rate swap agreements as cash flow hedges and accounts for the underlying activity in accordance with hedge accounting. The interest rate swaps are presented within the Condensed Consolidated Balance Sheets at fair value. In accordance with hedge accounting, the gains and losses on interest rate swaps that are designated and qualify as cash flow hedges are recorded as a component of Other Comprehensive Income (“OCI”), net of related income taxes, and reclassified into earnings in the same income statement line and period during which the hedged transactions affect earnings. As of June 27, 2020, amounts to be reclassified from Accumulated Other Comprehensive Income (“AOCI”) into interest during the next twelve months are not expected to be material. No significant amounts were excluded from the assessment of cash flow hedge effectiveness as of June 27, 2020. The assets and liabilities measured at fair value related to the Company’s interest rate swaps, excluding accrued interest, were as follows (in thousands): Derivatives Designated as Cash Flow Hedges Balance Sheet Location June 27, December 28, June 29, Interest rate swaps (short-term portion) Other current assets $ — $ 558 $ 1,052 Interest rate swaps (long-term portion) Other assets — 91 276 Total derivative assets $ — $ 649 $ 1,328 Interest rate swaps (short-term portion) Other accrued expenses $ 3,112 $ 90 $ — Interest rate swaps (long-term portion) Other long-term liabilities 5,403 292 389 Total derivative liabilities $ 8,515 $ 382 $ 389 The offset to the interest rate swap asset or liability is recorded as a component of equity, net of deferred taxes, in AOCI, and will be reclassified into earnings over the term of the underlying debt as interest payments are made. The following table summarizes the changes in AOCI, net of tax, related to the Company’s interest rate swaps (in thousands): June 27, December 28, June 29, Beginning fiscal year AOCI balance $ 199 $ 3,814 $ 3,814 Current fiscal period loss recognized in OCI (6,534) (4,332) (3,649) Cumulative adjustment as a result of ASU 2017-12 adoption — 717 717 Other comprehensive loss, net of tax (6,534) (3,615) (2,932) Ending fiscal period AOCI balance $ (6,335) $ 199 $ 882 Cash flows related to the interest rate swaps are included in operating activities on the Condensed Consolidated Statements of Cash Flows. The following table summarizes the impact of pre-tax gains and losses derived from the Company’s interest rate swaps (in thousands): Fiscal Three Months Ended Fiscal Six Months Ended Financial Statement Location June 27, June 29, June 27, June 29, Amount of losses recognized in OCI during the period Other comprehensive loss $ (1,726) $ (2,937) $ (8,782) $ (4,884) The following table summarizes the impact of taxes affecting AOCI as a result of the Company’s interest rate swaps (in thousands): Fiscal Three Months Ended Fiscal Six Months Ended June 27, June 29, 2019 June 27, June 29, Income tax benefit of interest rate swaps on AOCI $ (442) $ (752) $ (2,248) $ (1,235) Credit-risk-related contingent features In accordance with the underlying interest rate swap agreements, the Company could be declared in default on its interest rate swap obligations if repayment of the underlying indebtedness (i.e., the Company’s term loans) is accelerated by the lender due to the Company's default on such indebtedness.

Capital Stock and Dividends

Capital Stock and Dividends	6 Months Ended
	Jun. 27, 2020
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 thousand shares of preferred stock, with such designations, rights and preferences as may be determined from time to time by the Company's Board of Directors. Dividends During the first six months of fiscal 2020 and 2019, the Company's Board of Directors declared the following cash dividends: Date Declared Dividend Amount Record Date Date Paid May 6, 2020 $ 0.35 May 26, 2020 June 9, 2020 February 5, 2020 $ 0.35 February 24, 2020 March 10, 2020 May 8, 2019 $ 0.35 May 28, 2019 June 11, 2019 February 6, 2019 $ 0.31 February 25, 2019 March 12, 2019 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 any other factors that the Board of Directors deems relevant.

Treasury Stock

Treasury Stock	6 Months Ended
	Jun. 27, 2020
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 up to $4.5 billion, exclusive of any fees, commissions, or other expenses related to such repurchases. 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. As of June 27, 2020, the Company had remaining authorization under the share repurchase program of $1.22 billion, exclusive of any fees, commissions, or other expenses. The Company has suspended the share repurchase program effective March 12, 2020, in order to strengthen its liquidity and preserve cash while navigating the COVID-19 pandemic. The following table provides the number of shares repurchased, average price paid per share, and total amount paid for share repurchases during the fiscal three and six months ended June 27, 2020 and June 29, 2019, respectively (in thousands, except per share amounts): Fiscal Three Months Ended Fiscal Six Months Ended June 27, June 29, June 27, June 29, Total number of shares repurchased — 1,732 2,853 3,456 Average price paid per share $ — $ 103.27 $ 92.28 $ 96.69 Total cash paid for share repurchases $ — $ 178,916 $ 263,219 $ 334,235

Income Taxes

Income Taxes	6 Months Ended
	Jun. 27, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes: The Company’s effective income tax rate increased to 22.9% in the second quarter of fiscal 2020 compared to 22.4% in the second quarter of fiscal 2019. The effective income tax rate was 22.7% in the first six months of fiscal 2020 compared to 22.3% in the first six months of fiscal 2019. The primary driver for the increase in the Company’s effective income tax rate was attributable to a reduction in the tax benefit associated with share-based compensation. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in the U.S. on March 27, 2020. We do not anticipate that the enactment of this legislation will significantly impact our full year effective tax rate in fiscal 2020.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 27, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies: Construction and Real Estate Commitments At June 27, 2020, there were no material commitments related to real estate or construction projects extending greater than twelve months. Letters of Credit At June 27, 2020, there were $52.4 million of outstanding letters of credit under the 2016 Senior Credit Facility. Litigation

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 27, 2020
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 following table indicates the percentage of net sales represented by each major product category during the fiscal three and six months ended June 27, 2020 and June 29, 2019: Fiscal Three Months Ended Fiscal Six Months Ended Product Category: June 27, June 29, June 27, June 29, Livestock and Pet 43 % 45 % 47 % 48 % Seasonal, Gift and Toy Products 26 24 22 21 Hardware, Tools and Truck 21 21 21 21 Clothing and Footwear 5 5 5 6 Agriculture 5 5 5 4 Total 100 % 100 % 100 % 100 %

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Jun. 27, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncements Recently Adopted and Not Yet Adopted	New Accounting Pronouncements: New Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses. The new guidance applies to financial assets measured at amortized cost basis, including receivables that result from revenue transactions and held-to-maturity debt securities. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption was permitted for fiscal years beginning after December 15, 2018. The Company adopted this guidance in the first quarter of fiscal 2020. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement,” which amends the disclosure requirements for fair value measurements by removing, modifying and adding certain disclosures. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. The Company adopted this guidance in the first quarter of fiscal 2020. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This update clarifies the accounting treatment for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. The amendments may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted this guidance on a prospective basis in the first quarter of fiscal 2020. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements and related disclosures. New Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This guidance is in response to accounting concerns regarding contract modifications and hedge accounting because of impending rate reform associated with structural risks of interbank offered rates (IBORs), and, particularly, the risk of cessation of LIBOR related to regulators in several jurisdictions around the world having undertaken reference rate reform initiatives to identify alternative reference rates. The guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The adoption of this guidance is effective for all entities as of March 12, 2020 through December 31,

Accounting Changes and Error Co

Accounting Changes and Error Corrections (Policies)	6 Months Ended
	Jun. 27, 2020
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements Recently Adopted and Not Yet Adopted	New Accounting Pronouncements: New Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses. The new guidance applies to financial assets measured at amortized cost basis, including receivables that result from revenue transactions and held-to-maturity debt securities. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption was permitted for fiscal years beginning after December 15, 2018. The Company adopted this guidance in the first quarter of fiscal 2020. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement,” which amends the disclosure requirements for fair value measurements by removing, modifying and adding certain disclosures. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. The Company adopted this guidance in the first quarter of fiscal 2020. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This update clarifies the accounting treatment for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. The amendments may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted this guidance on a prospective basis in the first quarter of fiscal 2020. The adoption of this guidance did not have a material impact on our Condensed Consolidated Financial Statements and related disclosures. New Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This guidance is in response to accounting concerns regarding contract modifications and hedge accounting because of impending rate reform associated with structural risks of interbank offered rates (IBORs), and, particularly, the risk of cessation of LIBOR related to regulators in several jurisdictions around the world having undertaken reference rate reform initiatives to identify alternative reference rates. The guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The adoption of this guidance is effective for all entities as of March 12, 2020 through December 31,

Share Based Compensation (Table

Share Based Compensation (Tables)	6 Months Ended
	Jun. 27, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]
Stock Options	The following table summarizes information concerning stock option grants during the first six months of fiscal 2020: Fiscal Six Months Ended June 27, 2020 Stock options granted 417,025 Weighted average exercise price $ 91.21 Weighted average grant date fair value per option $ 18.57
Restricted Stock Units and Performance-Based Restricted Share Units	The following table summarizes information concerning restricted stock unit and performance-based restricted share unit grants during the first six months of fiscal 2020: Fiscal Six Months Ended June 27, 2020 Restricted stock units granted 305,029 Performance-based restricted share units granted (a) 80,057 Weighted average grant date fair value per share $ 91.98 (a) Assumes 100% target level achievement of the relative performance targets.

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 27, 2020
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 Fiscal Three Months Ended June 27, 2020 June 29, 2019 Income Shares Per Share Income Shares Per Share Basic net income per share: $ 338,678 115,912 $ 2.92 $ 219,210 120,371 $ 1.82 Dilutive effect of share-based awards — 900 (0.02) — 1,137 (0.02) Diluted net income per share: $ 338,678 116,812 $ 2.90 $ 219,210 121,508 $ 1.80

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 27, 2020
Debt Disclosure [Abstract]
Schedule of Outstanding Debt	The following table summarizes the Company’s outstanding debt as of the dates indicated (in millions): June 27, December 28, June 29, Senior Notes $ 150.0 $ 150.0 $ 150.0 Senior Credit Facility: February 2016 Term Loan 135.0 145.0 150.0 June 2017 Term Loan 82.5 87.5 90.0 March 2020 Term Loan 200.0 — — April 2020 Term Loan 350.0 — — Revolving credit loans — 15.0 100.0 Total outstanding borrowings 917.5 397.5 490.0 Less: unamortized debt issuance costs (1.4) (1.0) (1.2) Total debt 916.1 396.5 488.8 Less: current portion of long-term debt (380.0) (30.0) (22.5) Long-term debt $ 536.1 $ 366.5 $ 466.3 Outstanding letters of credit $ 52.4 $ 32.0 $ 37.3

Interest Rate Swaps (Tables)

Interest Rate Swaps (Tables)	6 Months Ended
	Jun. 27, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Assets/Liabilities at Fair Value, Excluding Accrued Interest	The assets and liabilities measured at fair value related to the Company’s interest rate swaps, excluding accrued interest, were as follows (in thousands): Derivatives Designated as Cash Flow Hedges Balance Sheet Location June 27, December 28, June 29, Interest rate swaps (short-term portion) Other current assets $ — $ 558 $ 1,052 Interest rate swaps (long-term portion) Other assets — 91 276 Total derivative assets $ — $ 649 $ 1,328 Interest rate swaps (short-term portion) Other accrued expenses $ 3,112 $ 90 $ — Interest rate swaps (long-term portion) Other long-term liabilities 5,403 292 389 Total derivative liabilities $ 8,515 $ 382 $ 389
Derivative Instruments, Gain (Loss)	The following table summarizes the changes in AOCI, net of tax, related to the Company’s interest rate swaps (in thousands): June 27, December 28, June 29, Beginning fiscal year AOCI balance $ 199 $ 3,814 $ 3,814 Current fiscal period loss recognized in OCI (6,534) (4,332) (3,649) Cumulative adjustment as a result of ASU 2017-12 adoption — 717 717 Other comprehensive loss, net of tax (6,534) (3,615) (2,932) Ending fiscal period AOCI balance $ (6,335) $ 199 $ 882
Derivative Instruments, Gain (Loss), pre-tax	The following table summarizes the impact of pre-tax gains and losses derived from the Company’s interest rate swaps (in thousands): Fiscal Three Months Ended Fiscal Six Months Ended Financial Statement Location June 27, June 29, June 27, June 29, Amount of losses recognized in OCI during the period Other comprehensive loss $ (1,726) $ (2,937) $ (8,782) $ (4,884)
Derivative Instruments, Gain (Loss), tax impact	The following table summarizes the impact of taxes affecting AOCI as a result of the Company’s interest rate swaps (in thousands): Fiscal Three Months Ended Fiscal Six Months Ended June 27, June 29, 2019 June 27, June 29, Income tax benefit of interest rate swaps on AOCI $ (442) $ (752) $ (2,248) $ (1,235)

Capital Stock and Dividends (Ta

Capital Stock and Dividends (Tables)	6 Months Ended
	Jun. 27, 2020
Equity [Abstract]
Schedule of Dividends Payable	During the first six months of fiscal 2020 and 2019, the Company's Board of Directors declared the following cash dividends: Date Declared Dividend Amount Record Date Date Paid May 6, 2020 $ 0.35 May 26, 2020 June 9, 2020 February 5, 2020 $ 0.35 February 24, 2020 March 10, 2020 May 8, 2019 $ 0.35 May 28, 2019 June 11, 2019 February 6, 2019 $ 0.31 February 25, 2019 March 12, 2019

Treasury Stock Treasury Stock (

Treasury Stock Treasury Stock (Tables)	6 Months Ended
	Jun. 27, 2020
Equity, Class of Treasury Stock [Line Items]
Class of Treasury Stock, Shares Repurchased	The following table provides the number of shares repurchased, average price paid per share, and total amount paid for share repurchases during the fiscal three and six months ended June 27, 2020 and June 29, 2019, respectively (in thousands, except per share amounts): Fiscal Three Months Ended Fiscal Six Months Ended June 27, June 29, June 27, June 29, Total number of shares repurchased — 1,732 2,853 3,456 Average price paid per share $ — $ 103.27 $ 92.28 $ 96.69 Total cash paid for share repurchases $ — $ 178,916 $ 263,219 $ 334,235

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 27, 2020
Segment Reporting [Abstract]
Major Product Category	The following table indicates the percentage of net sales represented by each major product category during the fiscal three and six months ended June 27, 2020 and June 29, 2019: Fiscal Three Months Ended Fiscal Six Months Ended Product Category: June 27, June 29, June 27, June 29, Livestock and Pet 43 % 45 % 47 % 48 % Seasonal, Gift and Toy Products 26 24 22 21 Hardware, Tools and Truck 21 21 21 21 Clothing and Footwear 5 5 5 6 Agriculture 5 5 5 4 Total 100 % 100 % 100 % 100 %

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 27, 2020	Dec. 28, 2019	Jun. 29, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unsecured Debt	$ 917.5	$ 397.5	$ 490
Derivative, Fair Value, Net	$ (8.5)	$ 0.3	$ 0.9

Share Based Compensation (Detai

Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock purchase program discount percentage	15.00%		15.00%
Share-based compensation plan modifications			no
Share-based Payment Arrangement, Noncash Expense	$ 7,500	$ 8,800	$ 14,449	$ 18,400
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted			417,025
Weighted average exercise price			$ 91.21
Weighted average fair value per option			$ 18.57
Total unrecognized compensation expense	11,200		$ 11,200
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition			2 years 2 months 12 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted			305,029
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted			80,057
Restricted Stock Units and Performance-Based Restricted Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value per share			$ 91.98
Total unrecognized compensation expense	$ 45,100		$ 45,100
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition			2 years 2 months 12 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, 2020	Mar. 28, 2020	Jun. 29, 2019	Mar. 30, 2019	Jun. 27, 2020	Jun. 29, 2019
Earnings Per Share, Basic [Abstract]
Net income	$ 338,678	$ 83,777	$ 219,210	$ 76,832	$ 422,455	$ 296,042
Weighted average number of shares outstanding, basic	115,912		120,371		116,325	120,791
Net income per share – basic	$ 2.92		$ 1.82		$ 3.63	$ 2.45
Earnings Per Share, Diluted [Abstract]
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)	900		1,137		797	1,039
Dilutive stock options and restricted stock units outstanding, per share (in dollars per share)	$ (0.02)		$ (0.02)		$ (0.02)	$ (0.02)
Net income	$ 338,678	$ 83,777	$ 219,210	$ 76,832	$ 422,455	$ 296,042
Weighted average number of shares outstanding, diluted	116,812		121,508		117,122	121,830
Net income per share, diluted (in dollars per share)	$ 2.90		$ 1.80		$ 3.61	$ 2.43
Antidilutive securities excluded from computation of earnings per share, amount	500		300		600	300

Senior Notes (Details)

Senior Notes (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 27, 2020	Dec. 28, 2019	Jun. 29, 2019	Aug. 14, 2017
Debt Instrument [Line Items]
Senior Notes	$ 150	$ 150	$ 150	$ 150
Senior Notes, Maturity Date	Aug. 14, 2029
Senior Notes, Interest Rate	3.70%
Shelf Note - Amount	$ 150
Shelf Notes - Maximum Maturity Date Range - in years	12 years
Shelf Notes - Maximum Issuance Date	August 14, 2020
Debt Instrument, Percentage of Principal Amount Redeemable	100.00%
Shelf Notes - Additional Interest Rate	Notes plus 0.50%

Senior Credit Facility - Credit

Senior Credit Facility - Credit Agreement (Details) - USD ($)	Mar. 12, 2020	Sep. 28, 2019	Jun. 15, 2017	Feb. 19, 2016	Jun. 27, 2020	Mar. 28, 2020	Jun. 29, 2019	Jun. 27, 2020	Dec. 28, 2019
Line of Credit Facility [Line Items]
Unsecured Debt					$ 917,500,000		$ 490,000,000	$ 917,500,000	$ 397,500,000
Unamortized Debt Issuance Costs					(1,400,000)		(1,200,000)	(1,400,000)	(1,000,000)
Unsecured debt, net of debt issuance costs					916,100,000		488,800,000	916,100,000	396,500,000
Unsecured Debt, Current					(380,000,000)		(22,500,000)	(380,000,000)	(30,000,000)
Long-term Debt, Excluding Current Maturities					536,051,000		466,290,000	536,051,000	366,480,000
Letters of Credit Outstanding, Amount					$ 52,400,000		37,300,000	$ 52,400,000	32,000,000
Senior credit facility, maximum borrowing capacity				$ 500,000,000
Swingline Loan, Maximum Borrowing Capacity				50,000,000
Debt instrument, basis spread on variable rate					0.75%
Commitment fee for unused capacity		0.125%
Debt Instrument, Interest Rate, Stated Percentage - June 2017 Term Loan					1.00%			1.00%
Compensating Balance, Amount					$ 0			$ 0
Debt Instrument, Covenant Compliance		all
Amount of incremental credit facility which will result in modification of debt covenants					$100 million or greater
Base Rate
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate at Period End					3.25%			3.25%
London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate at Period End					0.178%			0.178%
April 2020 Term Loan
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate at Period End					1.75%			1.75%
Minimum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate					0.50%
Commitment fee for unused capacity					0.075%
Maximum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate					1.125%
Commitment fee for unused capacity					0.20%
April 2020 Term Loan Maximum [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate					1.50%
April 2020 Term Loan Additional Minimum [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate					1.25%
April 2020 Term Loan Additional Maximum [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate					2.50%
April 2020 Term Loan Minimum [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate					0.25%
February 2016 Term Loan
Line of Credit Facility [Line Items]
Notional Amount, Current					$ 135,000,000		150,000,000	$ 135,000,000	145,000,000
Term Loan, Maximum Borrowing Capacity				$ 200,000,000
Due in years one and two February 2016 Term Loan [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Amount of Periodic Payment								10,000,000
Due in years three through Maturity February 2016 Term Loan [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Amount of Periodic Payment								20,000,000
June 2017 Term Loan
Line of Credit Facility [Line Items]
Notional Amount, Current					82,500,000		90,000,000	82,500,000	87,500,000
Term Loan, Maximum Borrowing Capacity			$ 100,000,000
Due in years one and two June 2017 Term Loan [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Amount of Periodic Payment					5,000,000
Due in years three through five June 2017 Term Loan [Member] [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Amount of Periodic Payment					10,000,000
Term Loan (Member) [Member]
Line of Credit Facility [Line Items]
Notional Amount, Current					$ 200,000,000		0	200,000,000	0
Term Loan, Maximum Borrowing Capacity	$ 200,000,000
Debt instrument, basis spread on variable rate					0.75%
April 2020 Term Loan
Line of Credit Facility [Line Items]
Notional Amount, Current					$ 350,000,000		0	$ 350,000,000	$ 0
Term Loan, Maximum Borrowing Capacity	$ 350,000,000
Debt instrument, basis spread on variable rate					0.75%
Amount of incremental credit facility which will result in modification of debt covenants								650 million
Number of Financial Covenants [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Covenant Description					two material covenants
2016 Senior Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Month-end Outstanding Amount					$ 0	$ 15,000,000	$ 100,000,000
Fixed Charge Coverage Ratio Minimum Requirement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Covenant Description					2.00 to 1.0
Leverage Ratio Maximum Requirement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Covenant Description					4.00 to 1.0

Interest Rate Swaps (Details)

Interest Rate Swaps (Details) - USD ($) $ in Thousands	Mar. 18, 2020	Jun. 30, 2017	Mar. 31, 2016	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019	Dec. 28, 2019	Dec. 29, 2018
Derivative [Line Items]
Other Comprehensive Income (Loss), Net of Tax				$ (1,284)	$ (2,185)	$ (6,534)	$ (3,649)
Total Derivative Asset				0	1,328	0	1,328	$ 649
Total Derivative Liability				8,515	389	8,515	389	382
February 2016 Term Loan
Derivative [Line Items]
Notional Amount, Current				135,000	150,000	135,000	150,000	145,000
June 2017 Term Loan
Derivative [Line Items]
Notional Amount, Current				82,500	90,000	82,500	90,000	87,500
Beginning Balance [Member]
Derivative [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax								199	$ 3,814
Other Comprehensive Income (Loss) [Member]
Derivative [Line Items]
Change in fair value of interest rate swaps, net of taxes						(6,534)	(3,649)	(4,332)
Other Comprehensive Income (Loss), Net of Tax [Member]
Derivative [Line Items]
Other Comprehensive Income (Loss), Net of Tax						(6,534)	(2,932)	(3,615)
AOCI Ending Balance [Member]
Derivative [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax				$ (6,335)	882	(6,335)	882	199
February 2016 Term Loan
Derivative [Line Items]
Interest Rate Swap Inception Date			Mar. 31, 2016
Interest Rate Swap Maturity Date				Feb. 19, 2021
Interest Rate Swap, Beginning Notional Amount			$ 197,500
June 2017 Term Loan
Derivative [Line Items]
Interest Rate Swap Inception Date		Jun. 30, 2017
Interest Rate Swap Maturity Date				Jun. 15, 2022
Interest Rate Swap, Beginning Notional Amount		$ 100,000
Interest Rate Swap Asset Portion
Derivative [Line Items]
Derivative Asset, Current				$ 0	1,052	0	1,052	558
Derivative Asset, Noncurrent				0	276	0	276	91
Interest Rate Swap Liability Portion
Derivative [Line Items]
Derivative Liability, Current				3,112	0	3,112	0	90
Derivative Liability, Noncurrent				$ 5,403	$ 389	5,403	$ 389	$ 292
Term Loan (Member) [Member]
Derivative [Line Items]
Interest Rate Swap Inception Date	Mar. 18, 2020
Interest Rate Swap Maturity Date				Mar. 18, 2025
Interest Rate Swap, Beginning Notional Amount				$ 200,000		$ 200,000

Interest Rate Swaps Schedule of

Interest Rate Swaps Schedule of Changes in AOCI Net of Tax (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Mar. 30, 2019	Jun. 27, 2020	Jun. 29, 2019	Dec. 28, 2019	Dec. 29, 2018
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cumulative adjustment as a result of ASU 2017-12 adoption			—	—	2,084,880
Cumulative adjustment as a result of ASU 2017-12 adoption			—	—	2,084,880
Other Comprehensive Income (Loss), Net of Tax	$ (1,284)	$ (2,185)		$ (6,534)	$ (3,649)
Beginning Balance [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax						$ 199	$ 3,814
Accounting Standards Update 2017-12 [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cumulative adjustment as a result of ASU 2017-12 adoption				—	717	717
Cumulative adjustment as a result of ASU 2017-12 adoption				—	717	717

Interest Rate Swaps Current Per

Interest Rate Swaps Current Period OCI Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	$ (1,726)	$ (2,937)	$ (8,782)	$ (4,884)

Interest Rate Swaps Tax Impact

Interest Rate Swaps Tax Impact of Derivative Liability on Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax	$ (442)	$ (752)	$ (2,248)	$ (1,235)

Interest Rate Swaps Effective D

Interest Rate Swaps Effective Date of Interest Rate Swap Agreement (Details)	Jun. 30, 2017	Mar. 31, 2016
February 2016 Term Loan
Derivative [Line Items]
Interest Rate Swap Inception Date		Mar. 31, 2016
June 2017 Term Loan
Derivative [Line Items]
Interest Rate Swap Inception Date	Jun. 30, 2017

Capital Stock - Narrative (Deta

Capital Stock - Narrative (Details) - shares	Jun. 27, 2020	Dec. 28, 2019	Jun. 29, 2019
Equity [Abstract]
Common Stock, Shares Authorized	400,000,000	400,000,000	400,000,000
Preferred Stock, Shares Authorized	40,000	40,000	40,000

Capital Stock and Dividends (De

Capital Stock and Dividends (Details) - $ / shares	Aug. 05, 2020	May 06, 2020	Feb. 05, 2020	May 08, 2019	Feb. 06, 2019	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Dividends
Common Stock, Dividends, Per Share, Declared		$ 0.35	$ 0.35	$ 0.35	$ 0.31	$ 0.35	$ 0.35	$ 0.70	$ 0.66
Subsequent Event
Dividends
Common Stock, Dividends, Per Share, Declared	$ 0.40

Treasury Stock (Details)

Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 27, 2020	Mar. 28, 2020	Jun. 29, 2019	Mar. 30, 2019	Jun. 27, 2020	Jun. 29, 2019
Equity, Class of Treasury Stock [Line Items]
Board-approved share repurchase program of common stock	$ 4,500,000				$ 4,500,000
Remaining authorization under the share repurchase program	$ 1,220,000				$ 1,220,000
Total number of shares repurchased	0		1,732		2,853	3,456
Average price paid per share	$ 0		$ 103.27		$ 92.28	$ 96.69
Total cash paid for share repurchases	$ 0	$ 263,219	$ 178,916	$ 155,319	$ 263,219	$ 334,235

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Income Tax Disclosure [Abstract]
Effective income tax rate	22.90%	22.40%	22.70%	22.30%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Jun. 27, 2020	Dec. 28, 2019	Jun. 29, 2019
Commitments and Contingencies Disclosure [Abstract]
Purchase Obligation, Due Second Year	$ 0
Letters of Credit Outstanding, Amount	$ 52.4	$ 32	$ 37.3

Segment Reporting (Details)

Segment Reporting (Details)	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Livestock and Pet
Revenue from External Customer [Line Items]
Percentage of sales	43.00%	45.00%	47.00%	48.00%
Hardware, Tools and Truck [Member]
Revenue from External Customer [Line Items]
Percentage of sales	21.00%	21.00%	21.00%	21.00%
Seasonal, Gift and Toy Products [Member]
Revenue from External Customer [Line Items]
Percentage of sales	26.00%	24.00%	22.00%	21.00%
Clothing and Footwear
Revenue from External Customer [Line Items]
Percentage of sales	5.00%	5.00%	5.00%	6.00%
Agriculture
Revenue from External Customer [Line Items]
Percentage of sales	5.00%	5.00%	5.00%	4.00%
Total
Revenue from External Customer [Line Items]
Percentage of sales	100.00%	100.00%	100.00%	100.00%

Segment Reporting Number of Rep

Segment Reporting Number of Reportable Segments (Details)	3 Months Ended
	Jun. 27, 2020segment
Segment Reporting [Abstract]
Number of Reportable Segments	1