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 |