Cover
Cover - shares | 3 Months Ended | |
Apr. 01, 2023 | Apr. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | true | |
Document Period End Date | Apr. 01, 2023 | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | 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 | |
Title of 12(b) Security | Common Stock, $0.008 par value | |
Trading Symbol | TSCO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 109,568,348 | |
Entity Central Index Key | 0000916365 | |
Current Fiscal Year End Date | --12-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 | Mar. 26, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 190,078 | $ 202,502 | $ 405,432 |
Inventories | 3,030,712 | 2,709,597 | 2,568,179 |
Prepaid expenses and other current assets | 235,510 | 245,676 | 185,634 |
Income taxes receivable | 2,621 | 0 | 9,030 |
Total current assets | 3,458,921 | 3,157,775 | 3,168,275 |
Property and equipment, net | 2,144,769 | 2,083,616 | 1,655,750 |
Operating lease right-of-use assets | 2,950,610 | 2,953,801 | 2,744,095 |
Goodwill and other intangible assets | 253,262 | 253,262 | 55,520 |
Other assets | 41,253 | 41,536 | 63,168 |
Total assets | 8,848,815 | 8,489,990 | 7,686,808 |
Current liabilities: | |||
Accounts payable | 1,526,540 | 1,398,288 | 1,341,645 |
Accrued employee compensation | 21,507 | 120,302 | 49,124 |
Other accrued expenses | 472,742 | 498,575 | 445,079 |
Current portion of long-term debt | 0 | 0 | 0 |
Current portion of finance lease liabilities | 2,818 | 3,179 | 4,042 |
Current portion of operating lease liabilities | 313,809 | 346,397 | 359,774 |
Income taxes payable | 12,284 | 9,471 | 0 |
Total current liabilities | 2,349,700 | 2,376,212 | 2,199,664 |
Long-term debt | 1,601,563 | 1,164,056 | 986,896 |
Finance lease liabilities, less current portion | 33,831 | 34,651 | 36,649 |
Operating lease liabilities, less current portion | 2,751,756 | 2,721,877 | 2,529,605 |
Deferred Income Tax Liabilities, Net | 76,450 | 30,775 | 37,487 |
Other long-term liabilities | 120,969 | 120,003 | 106,485 |
Total liabilities | 6,934,269 | 6,447,574 | 5,896,786 |
Stockholders’ equity: | |||
Preferred stock | 0 | 0 | 0 |
Common stock | 1,417 | 1,415 | 1,413 |
Additional paid-in capital | 1,262,775 | 1,261,283 | 1,204,294 |
Treasury stock | (5,053,077) | (4,855,909) | (4,452,026) |
Accumulated other comprehensive income | 9,438 | 11,275 | 7,338 |
Retained earnings | 5,693,993 | 5,624,352 | 5,029,003 |
Total stockholders’ equity | 1,914,546 | 2,042,416 | 1,790,022 |
Total liabilities and stockholders’ equity | $ 8,848,815 | $ 8,489,990 | $ 7,686,808 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Apr. 01, 2023 | Dec. 31, 2022 | Mar. 26, 2022 |
Statement of Financial Position [Abstract] | |||
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 | 177,151,000 | 176,876,000 | 176,679,000 |
Common Stock, Shares, Outstanding | 109,660,000 | 110,251,000 | 112,075,000 |
Treasury Stock, Common, Shares | 67,491,000 | 66,625,000 | 64,604,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 3,299,225 | $ 3,024,132 |
Cost of merchandise sold | 2,129,317 | 1,967,623 |
Gross profit | 1,169,908 | 1,056,509 |
Selling, general and administrative expenses | 828,235 | 734,577 |
Depreciation and amortization | 97,233 | 77,646 |
Operating income | 244,440 | 244,286 |
Interest expense, net | 12,680 | 7,069 |
Income before income taxes | 231,760 | 237,217 |
Income tax expense | 48,672 | 49,990 |
Net income | $ 183,088 | $ 187,227 |
Net income per share – basic | $ 1.66 | $ 1.66 |
Net income per share – diluted | $ 1.65 | $ 1.65 |
Weighted average shares outstanding: | ||
Basic | 110,045 | 112,531 |
Diluted | 110,781 | 113,504 |
Dividends declared per common share outstanding | $ 1.03 | $ 0.92 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 183,088 | $ 187,227 |
Change in fair value of interest rate swaps, net of taxes | (1,837) | 5,993 |
Total other comprehensive (loss) / income | (1,837) | 5,993 |
Total comprehensive income | $ 181,251 | $ 193,220 |
Weighted average number of shares outstanding, basic | 110,045 | 112,531 |
Earnings Per Share, Basic | $ 1.66 | $ 1.66 |
Antidilutive securities excluded from computation of earnings per share, amount | 200 | 100 |
Weighted average number of shares outstanding, diluted | 110,781 | 113,504 |
Net income per share, diluted (in dollars per share) | $ 1.65 | $ 1.65 |
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, Common | Accum. Other Comp. Income (Loss) | Retained Earnings |
Beginning balance, shares outstanding (in shares) at Dec. 25, 2021 | 113,125 | |||||
Beginning balance, Stockholders' equity at Dec. 25, 2021 | $ 2,002,665 | $ 1,411 | $ 1,210,512 | $ (4,155,846) | $ 1,345 | $ 4,945,243 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issuance under stock award plans & ESPP (in shares) | 308 | |||||
Common stock issuance under stock award plans & ESPP | 7,910 | $ 2 | 7,908 | |||
Share-based compensation | 12,316 | 12,316 | ||||
Repurchase of shares to satisfy tax obligations | (26,442) | (26,442) | ||||
Repurchase of common stock, shares (in shares) | (1,358) | |||||
Treasury Stock, Value, Acquired, Cost Method | (296,180) | (296,180) | ||||
Dividends paid | (103,467) | (103,467) | ||||
Change in fair value of interest rate swaps, net of taxes | 5,993 | 5,993 | ||||
Net income | 187,227 | 187,227 | ||||
Ending balance, shares outstanding (in shares) at Mar. 26, 2022 | 112,075 | |||||
Ending balance, Stockholders' equity at Mar. 26, 2022 | 1,790,022 | $ 1,413 | 1,204,294 | (4,452,026) | 7,338 | 5,029,003 |
Beginning balance, shares outstanding (in shares) at Dec. 31, 2022 | 110,251 | |||||
Beginning balance, Stockholders' equity at Dec. 31, 2022 | 2,042,416 | $ 1,415 | 1,261,283 | (4,855,909) | 11,275 | 5,624,352 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issuance under stock award plans & ESPP (in shares) | 275 | |||||
Common stock issuance under stock award plans & ESPP | 8,623 | $ 2 | 8,621 | |||
Share-based compensation | 14,514 | 14,514 | ||||
Repurchase of shares to satisfy tax obligations | (21,643) | (21,643) | ||||
Repurchase of common stock, shares (in shares) | (866) | |||||
Treasury Stock, Value, Acquired, Cost Method | (197,168) | (197,168) | ||||
Dividends paid | (113,447) | (113,447) | ||||
Change in fair value of interest rate swaps, net of taxes | (1,837) | (1,837) | ||||
Net income | 183,088 | 183,088 | ||||
Ending balance, shares outstanding (in shares) at Apr. 01, 2023 | 109,660 | |||||
Ending balance, Stockholders' equity at Apr. 01, 2023 | $ 1,914,546 | $ 1,417 | $ 1,262,775 | $ (5,053,077) | $ 9,438 | $ 5,693,993 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 183,088 | $ 187,227 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 97,233 | 77,646 |
(Gain)/loss on disposition of property and equipment | (139) | 326 |
Share-based compensation expense | 14,514 | 12,316 |
Deferred income taxes | 45,675 | 39,924 |
Change in assets and liabilities: | ||
Inventories | (321,115) | (376,987) |
Prepaid expenses and other current assets | 10,166 | (21,516) |
Accounts payable | 128,252 | 186,015 |
Accrued employee compensation | (98,796) | (60,494) |
Other accrued expenses | (39,243) | (28,463) |
Income taxes | 191 | 8,070 |
Other | (272) | 35,002 |
Net cash provided by operating activities | 19,554 | 59,066 |
Cash flows from investing activities: | ||
Capital expenditures | (157,943) | (112,387) |
Proceeds from sale of property and equipment | 259 | 99 |
Net cash used in investing activities | (157,684) | (112,288) |
Cash flows from financing activities: | ||
Borrowings under debt facilities | 747,000 | 0 |
Repayments under debt facilities | (310,000) | 0 |
Principal payments under finance lease liabilities | (1,631) | (1,197) |
Repurchase of shares to satisfy tax obligations | (21,643) | (26,442) |
Repurchase of common stock | (183,196) | (296,180) |
Net proceeds from issuance of common stock | 8,623 | 7,910 |
Cash dividends paid to stockholders | (113,447) | (103,467) |
Net cash provided by/(used in) financing activities | 125,706 | (419,376) |
Net decrease in cash and cash equivalents | (12,424) | (472,598) |
Cash and cash equivalents at beginning of period | 202,502 | 878,030 |
Cash and cash equivalents at end of period | 190,078 | 405,432 |
Cash paid during the period for: | ||
Interest | 9,274 | 4,404 |
Income taxes | 1,955 | 3,897 |
Supplemental disclosures of non-cash activities: | ||
Non-cash accruals for property and equipment | 45,178 | 23,538 |
Increase of operating lease assets and liabilities from new or modified leases | 84,740 | 37,694 |
Increase of finance lease assets and liabilities from new or modified leases | $ 450 | $ 5,143 |
General
General | 3 Months Ended |
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General: Nature of Business Founded in 1938, Tractor Supply Company (the “Company,” “Tractor Supply,” “we,” “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). The Company's stores are located primarily in towns outlying major metropolitan markets and in rural communities. The Company also owns and operates Petsense, LLC ("Petsense by Tractor Supply"), 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. On October 12, 2022, the Company completed the acquisition of Orscheln Farm and Home, LLC (“Orscheln” or “Orscheln Farm and Home”) and will convert the 81 acquired Orscheln stores to Tractor Supply stores by the end of fiscal 2023. At April 1, 2023, the Company operated a total of 2,353 retail stores in 49 states (2,164 Tractor Supply and Orscheln retail stores and 189 Petsense by Tractor Supply retail stores) and also offered an expanded assortment of products through the Tractor Supply mobile application and 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 (the “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 31, 2022. The results of operations for our interim periods are not necessarily indicative of results for the full fiscal year. Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standard Board issued Accounting Standards Update (“ASU”) 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations”. The ASU requires disclosure about an entity’s use of supplier finance programs, including the key terms of the program, amount of obligations outstanding at the end of the reporting period, and a rollforward of activity within the program during the period. The Company adopted this ASU in fiscal 2023, except for the disclosure of rollforward activity, which is effective on a prospective basis beginning in fiscal 2024. Supplier Finance Program accounts payable |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Apr. 01, 2023 | |
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 credit card 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 credit card receivables, and trade payables approximate current fair value at each balance sheet date. As described in further detail in Note 6 to the Condensed Consolidated Financial Statements, the Company had $1.62 billion, $1.18 billion and $1.00 billion in borrowings under its debt facilities at April 1, 2023, December 31, 2022 and March 26, 2022, respectively. The fair value of the Company's $150 million 3.70% Senior Notes due 2029 (the "3.70% Senior Notes") and the borrowings under the Company's revolving credit facility (the "Revolving Credit Facility") were determined based on market interest rates (Level 2 inputs). The carrying value of borrowings in the 3.70% Senior Notes and the Revolving Credit Facility approximate fair value for each period reported. The fair value of the Company's $650 million 1.75% Senior Notes due 2030 (the "1.75% Senior Notes") is determined based on quoted prices in active markets, which are considered Level 1 inputs. The carrying value and the fair value of the 1.75% Senior Notes, net of discounts, were as follows (in thousands): April 1, 2023 December 31, 2022 March 26, 2022 Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value 1.75% Senior Notes $ 639,564 $ 517,543 $ 639,220 $ 500,065 $ 638,188 $ 551,129 The Company's interest rate swap is carried at fair value, which is determined based on the present value of expected future cash flows using forward rate curves, which is considered a Level 2 input. 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, net of related income taxes, and reclassified into earnings in the same income statement line and period in which the hedged transactions affect earnings. The fair value of the interest rate swap, excluding accrued interest, was as follows (in thousands): Fair Value Measurements at April 1, 2023 December 31, 2022 March 26, 2022 Interest rate swap assets (Level 2) $ 12,678 $ 15,146 $ 9,868 |
Share Based Compensation
Share Based Compensation | 3 Months Ended |
Apr. 01, 2023 | |
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 transactions under the Company's Employee Stock Purchase Plan (the “ESPP”). Share-based compensation expense is recognized based on grant date fair value of all stock options, restricted stock units, and performance-based restricted share units. Share-based compensation expense is also recognized for the value of the 15% discount on shares purchased by employees as a part of the ESPP. The discount under the ESPP represents the difference between the market value on the first day of the purchase period or the market value on the purchase date, whichever is lower, and the employee’s purchase price. There were no significant modifications to the Company’s share-based compensation plans during the fiscal three months ended April 1, 2023. Share-based compensation expense was $14.5 million and $12.3 million for the first quarter of fiscal 2023 and 2022, respectively. Stock Options The following table summarizes information concerning stock option grants during the first three months of fiscal 2023: Fiscal Three Months Ended April 1, 2023 Stock options granted 119,678 Weighted average exercise price $ 232.73 Weighted average grant date fair value per option $ 60.91 As of April 1, 2023, total unrecognized compensation expense related to non-vested stock options was approximately $13.2 million with a remaining weighted average expense recognition period of 2.3 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 three months of fiscal 2023: Fiscal Three Months Ended April 1, 2023 Restricted Stock Unit Activity Awards granted 194,189 Weighted average grant date fair value per share $ 224.69 Performance-Based Restricted Share Unit Activity Awards granted (a) 52,330 Weighted average grant date fair value per share - awards granted $ 237.80 Performance adjustment (b) 50,411 Weighted average grant date fair value per share - performance adjustment $ 85.82 (a) Assumes 100% target level achievement of the relative performance targets. (b) Shares adjusted for performance-based restricted share unit awards settled during the first three months of fiscal 2023 based on actual achievement of performance targets In the first three months of fiscal 2023, the Company granted performance-based restricted share unit 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 and also include a relative total shareholder return modifier. 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-based restricted share unit awards, which may be higher or lower than the target, will be determined by the level of achievement of the performance goals and the relative total shareholder return modifier. If the performance targets are achieved, the units will be issued based on the achievement level, inclusive of the relative total shareholder return modifier, and the grant date fair value and will cliff vest in full on the third anniversary of the date of the grant, subject to continued employment. As of April 1, 2023, total unrecognized compensation expense related to non-vested restricted stock units and non-vested performance-based restricted share units was approximately $103.2 million with a remaining weighted average expense recognition period of 2.3 years. |
Business Combinations and Asset
Business Combinations and Asset Acquisitions | 3 Months Ended |
Apr. 01, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisition of Orscheln Farm and Home, LLC and Related DivestituresOn October 12, 2022, the Company completed its acquisition of Orscheln, which expands the Company's footprint in the Midwest part of the United States. Pursuant to the agreement governing the acquisition, the Company acquired 100% of the equity interest in Orscheln, inclusive of 166 Orscheln stores, the Orscheln corporate headquarters, and the Orscheln distribution center, for an all-cash purchase price of $397.7 million, exclusive of cash acquired. The acquisition was financed with cash-on-hand and Revolving Credit Facility borrowings under the 2022 Senior Credit Facility (as defined below). In order to obtain regulatory approval for the Orscheln acquisition, the Federal Trade Commission required the Company to divest of 85 stores, which were sold to two buyers, Bomgaars Supply, Inc. (“Bomgaars”) (73 stores) and Buchheit Enterprises, Inc. (12 stores), on October 12, 2022, concurrently with the closing of the acquisition. Net proceeds from the store divestitures were $69.4 million. In addition, the Company has agreed to sell the Orscheln corporate headquarters and distribution center to Bomgaars for $10 million within 15 months after the closing of the acquisition. The purchase consideration and preliminary estimated fair value of Orscheln’s net assets acquired on October 12, 2022 are shown below and remain subject to revisions as additional information is obtained about the facts and circumstances that existed at the valuation date. The assets and liabilities of the 85 divested stores, along with the Orscheln corporate headquarters and the Orscheln distribution center, are shown as held for sale in the fair value of assets acquired and liabilities assumed. (in thousands) Amounts Recognized as of Acquisition Date Measurement Period Adjustments Amounts Recognized as of April 1, 2023 Fair value of assets acquired Cash and cash equivalents $ 6,935 $ — $ 6,935 Accounts receivable 277 — 277 Inventories 168,663 — 168,663 Prepaid expenses and other current assets 7,222 — 7,222 Property and equipment 13,328 — 13,328 Lease right of use assets 82,755 — 82,755 Deferred income taxes 18,481 — 18,481 Assets held for sale 173,554 — 173,554 Other assets 160 — 160 Less: liabilities assumed Accounts payable 80,323 — 80,323 Accrued liabilities 20,291 — 20,291 Short-term lease liabilities 5,986 — 5,986 Long-term lease liabilities 70,626 — 70,626 Liabilities held for sale 94,190 — 94,190 Goodwill 197,742 — 197,742 Total fair value of considerations transferred $ 397,700 $ — $ 397,700 The resulting goodwill of $197.7 million is deductible for income tax purposes and represents the expected synergies from combining the operations of Orscheln with Tractor Supply stores and the expanded footprint that Orscheln brings in the Midwest part of the United States. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Apr. 01, 2023 | |
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 April 1, 2023 March 26, 2022 Income Shares Per Share Income Shares Per Share Basic net income per share: $ 183,088 110,045 $ 1.66 $ 187,227 112,531 $ 1.66 Dilutive effect of share-based awards — 736 (0.01) — 973 (0.01) Diluted net income per share: $ 183,088 110,781 $ 1.65 $ 187,227 113,504 $ 1.65 |
Debt
Debt | 3 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt: The following table summarizes the Company’s outstanding debt as of the dates indicated (in millions): April 1, December 31, March 26, 1.75% Senior Notes $ 650.0 $ 650.0 $ 650.0 3.70% Senior Notes (a) 150.0 150.0 150.0 Senior credit facilities: November 2020 Term Loan — — 200.0 Revolving Credit Facility (b) 815.0 378.0 — Total outstanding borrowings 1,615.0 1,178.0 1,000.0 Less: unamortized debt discounts and issuance costs (13.4) (13.9) (13.1) Total debt 1,601.6 1,164.1 986.9 Less: current portion of long-term debt — — — Long-term debt $ 1,601.6 $ 1,164.1 $ 986.9 Outstanding letters of credit $ 58.4 $ 52.6 $ 52.8 (a) Also referred to herein as the “Note Purchase Facility,” referring to the Note Purchase and Private Shelf Agreement dated as of August 14, 2017 by and among the Company, PGIM, Inc. and the noteholders party thereto, as amended through November 2, 2022, under which the notes were purchased. (b) Outstanding balances as of April 1, 2023 and December 31, 2022 represent amounts drawn under the credit facility (the “2022 Senior Credit Facility”) entered into on September 30, 2022. Borrowings under the Company's Revolving Credit Facility bore interest either at the bank’s base rate (8.000% at April 1, 2023) plus an additional amount ranging from 0.000% to 0.250% (0.000% at April 1, 2023) or at adjusted Secured Overnight Financing Rate (4.802% at April 1, 2023) plus an additional amount ranging from 0.750% to 1.250% (1.000% at April 1, 2023), adjusted based on the Company's public credit ratings. The Company was also required to pay, quarterly in arrears, a commitment fee related to unused capacity on the Revolving Credit Facility ranging from 0.080% to 0.150% per annum (0.100% at April 1, 2023), adjusted based on the Company's public credit ratings. The Company has entered into an interest rate swap agreement in order to hedge its exposure to variable rate interest payments associated with its debt. The interest rate swap agreement will mature on March 18, 2025, and the notional amount of the agreement is fixed at $200.0 million. Covenants and Default Provisions of the Debt Agreements As of April 1, 2023, the 2022 Senior Credit Facility and the Note Purchase Facility (collectively, the “Debt Agreements”) required 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 was required to be greater than or equal to 2.00 to 1.00 as of the last day of each fiscal quarter. The leverage ratio compares total funded debt to consolidated EBITDAR. The leverage ratio was required to be less than or equal to 4.00 to 1.00 as of the last day of each fiscal quarter. The Debt Agreements also contain certain other restrictions regarding additional subsidiary indebtedness, business operations, subsidiary guarantees, mergers, consolidations and sales of assets, transactions with subsidiaries or affiliates, and liens. As of April 1, 2023, 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, amounts outstanding under the Debt Agreements could become due and payable. In addition, under the Note Purchase Facility, upon an event of default or change of control, a whole payment may become due and payable. The Note Purchase Facility also requires that, in the event the Company amends its 2022 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 Facility or that are similar to those contained in the Note Purchase Facility but which contain percentages, amounts, formulas, or grace periods that are more restrictive than those set forth in the Note Purchase Facility or are otherwise more beneficial to the lenders thereunder, the Note Purchase Facility shall be automatically amended to include such additional or amended covenants and/or default provisions. |
Capital Stock and Dividends
Capital Stock and Dividends | 3 Months Ended |
Apr. 01, 2023 | |
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 three months of fiscal 2023 and fiscal 2022, the Company's Board of Directors declared the following cash dividends: Date Declared Dividend Amount Record Date Date Paid February 8, 2023 $ 1.03 February 27, 2023 March 14, 2023 January 26, 2022 $ 0.92 February 21, 2022 March 8, 2022 |
Treasury Stock
Treasury Stock | 3 Months Ended |
Apr. 01, 2023 | |
Equity [Abstract] | |
Treasury Stock | Treasury Stock: The Company’s Board of Directors has authorized common stock repurchases under a share repurchase program which was announced in February 2007. The total authorized amount of the program, which has been increased from time to time, is currently $6.50 billion, exclusive of any fees, commissions, or other expenses related to such repurchases. The share repurchase program does not have an expiration date. 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, temporarily paused, or terminated at any time without prior notice. As of April 1, 2023, the Company had remaining authorization under the share repurchase program of $1.45 billion, exclusive of any fees, commissions, or other expenses. 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 months ended April 1, 2023 and March 26, 2022, respectively (in thousands, except per share amounts): Fiscal Three Months Ended April 1, March 26, Total number of shares repurchased 866 1,358 Average price paid per share $ 227.67 $ 218.07 Total cost of share repurchases $ 197,168 $ 296,180 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes:The Company’s effective income tax rate was 21.0% in the first quarter of fiscal 2023 compared to 21.1% in the first quarter of fiscal 2022. The decrease in the effective income tax rate in the first quarter of fiscal 2023 compared to the first quarter of fiscal 2022 was driven primarily by a decrease in state income taxes. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: Construction and Real Estate Commitments As of April 1, 2023, the Company had contractual commitments of approximately $53.0 million related to the construction and onboarding of new distribution centers. Letters of Credit At April 1, 2023, the Company had $58.4 million in outstanding letters of credit under the 2022 Senior Credit Facility. Litigation In March 2023, U.S. Customs and Border Protection (“U.S. Customs”) sent the Company a notice that proposed to classify certain of our imports from China as subject to anti-dumping and countervailing (“AD/CV”) duties. We have responded to U.S. Customs outlining the reasons for our position that these imports are not subject to AD/CV duties. The Company currently expects this matter will be resolved without material adverse effect on its consolidated financial position, results of operations or cash flows. However, this matter is subject to inherent uncertainties and management’s view of this matter may change in the future. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Apr. 01, 2023 | |
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 of our major product categories during the fiscal three months ended April 1, 2023 and March 26, 2022: Fiscal Three Months Ended Product Category April 1, March 26, Livestock and Pet 57 % 53 % Hardware, Tools and Truck 17 19 Seasonal, Gift and Toy Products 17 17 Clothing and Footwear 6 8 Agriculture 3 3 Total 100 % 100 % |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Long-Term Debt Instruments | The carrying value and the fair value of the 1.75% Senior Notes, net of discounts, were as follows (in thousands): April 1, 2023 December 31, 2022 March 26, 2022 Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value 1.75% Senior Notes $ 639,564 $ 517,543 $ 639,220 $ 500,065 $ 638,188 $ 551,129 |
Schedule of Derivative Instruments | The fair value of the interest rate swap, excluding accrued interest, was as follows (in thousands): Fair Value Measurements at April 1, 2023 December 31, 2022 March 26, 2022 Interest rate swap assets (Level 2) $ 12,678 $ 15,146 $ 9,868 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Options | The following table summarizes information concerning stock option grants during the first three months of fiscal 2023: Fiscal Three Months Ended April 1, 2023 Stock options granted 119,678 Weighted average exercise price $ 232.73 Weighted average grant date fair value per option $ 60.91 |
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 three months of fiscal 2023: Fiscal Three Months Ended April 1, 2023 Restricted Stock Unit Activity Awards granted 194,189 Weighted average grant date fair value per share $ 224.69 Performance-Based Restricted Share Unit Activity Awards granted (a) 52,330 Weighted average grant date fair value per share - awards granted $ 237.80 Performance adjustment (b) 50,411 Weighted average grant date fair value per share - performance adjustment $ 85.82 (a) Assumes 100% target level achievement of the relative performance targets. (b) Shares adjusted for performance-based restricted share unit awards settled during the first three months of fiscal 2023 based on actual achievement of performance targets |
Business Combinations and Ass_2
Business Combinations and Asset Acquisitions (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | (in thousands) Amounts Recognized as of Acquisition Date Measurement Period Adjustments Amounts Recognized as of April 1, 2023 Fair value of assets acquired Cash and cash equivalents $ 6,935 $ — $ 6,935 Accounts receivable 277 — 277 Inventories 168,663 — 168,663 Prepaid expenses and other current assets 7,222 — 7,222 Property and equipment 13,328 — 13,328 Lease right of use assets 82,755 — 82,755 Deferred income taxes 18,481 — 18,481 Assets held for sale 173,554 — 173,554 Other assets 160 — 160 Less: liabilities assumed Accounts payable 80,323 — 80,323 Accrued liabilities 20,291 — 20,291 Short-term lease liabilities 5,986 — 5,986 Long-term lease liabilities 70,626 — 70,626 Liabilities held for sale 94,190 — 94,190 Goodwill 197,742 — 197,742 Total fair value of considerations transferred $ 397,700 $ — $ 397,700 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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 April 1, 2023 March 26, 2022 Income Shares Per Share Income Shares Per Share Basic net income per share: $ 183,088 110,045 $ 1.66 $ 187,227 112,531 $ 1.66 Dilutive effect of share-based awards — 736 (0.01) — 973 (0.01) Diluted net income per share: $ 183,088 110,781 $ 1.65 $ 187,227 113,504 $ 1.65 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the Company’s outstanding debt as of the dates indicated (in millions): April 1, December 31, March 26, 1.75% Senior Notes $ 650.0 $ 650.0 $ 650.0 3.70% Senior Notes (a) 150.0 150.0 150.0 Senior credit facilities: November 2020 Term Loan — — 200.0 Revolving Credit Facility (b) 815.0 378.0 — Total outstanding borrowings 1,615.0 1,178.0 1,000.0 Less: unamortized debt discounts and issuance costs (13.4) (13.9) (13.1) Total debt 1,601.6 1,164.1 986.9 Less: current portion of long-term debt — — — Long-term debt $ 1,601.6 $ 1,164.1 $ 986.9 Outstanding letters of credit $ 58.4 $ 52.6 $ 52.8 (a) Also referred to herein as the “Note Purchase Facility,” referring to the Note Purchase and Private Shelf Agreement dated as of August 14, 2017 by and among the Company, PGIM, Inc. and the noteholders party thereto, as amended through November 2, 2022, under which the notes were purchased. (b) Outstanding balances as of April 1, 2023 and December 31, 2022 represent amounts drawn under the credit facility (the “2022 Senior Credit Facility”) entered into on September 30, 2022. |
Capital Stock and Dividends (Ta
Capital Stock and Dividends (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Equity [Abstract] | |
Schedule of Dividends Payable | During the first three months of fiscal 2023 and fiscal 2022, the Company's Board of Directors declared the following cash dividends: Date Declared Dividend Amount Record Date Date Paid February 8, 2023 $ 1.03 February 27, 2023 March 14, 2023 January 26, 2022 $ 0.92 February 21, 2022 March 8, 2022 |
Treasury Stock Treasury Stock (
Treasury Stock Treasury Stock (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Equity [Abstract] | |
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 months ended April 1, 2023 and March 26, 2022, respectively (in thousands, except per share amounts): Fiscal Three Months Ended April 1, March 26, Total number of shares repurchased 866 1,358 Average price paid per share $ 227.67 $ 218.07 Total cost of share repurchases $ 197,168 $ 296,180 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Major Product Category | The following table indicates the percentage of net sales represented by each of our major product categories during the fiscal three months ended April 1, 2023 and March 26, 2022: Fiscal Three Months Ended Product Category April 1, March 26, Livestock and Pet 57 % 53 % Hardware, Tools and Truck 17 19 Seasonal, Gift and Toy Products 17 17 Clothing and Footwear 6 8 Agriculture 3 3 Total 100 % 100 % |
General (Details)
General (Details) $ in Millions | Apr. 01, 2023 USD ($) store state | Dec. 31, 2022 USD ($) | Mar. 26, 2022 USD ($) |
Nature of business [Abstract] | |||
Supplier Finance Program, Obligation | $ | $ 30.8 | $ 24.2 | $ 32.2 |
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Accounts Payable, Current | Accounts Payable, Current | Accounts Payable, Current |
Parent Company [Member] | |||
Nature of business [Abstract] | |||
Number of rural lifestyle retail stores operated by the company | 2,353 | ||
Number of states in which rural lifestyle retail stores are operated by the company | state | 49 | ||
TSCO stores [Member] | |||
Nature of business [Abstract] | |||
Number of rural lifestyle retail stores operated by the company | 2,164 | ||
Petsense stores [Member] | |||
Nature of business [Abstract] | |||
Number of rural lifestyle retail stores operated by the company | 189 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Mar. 26, 2022 |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Unsecured Debt | $ 1,615 | $ 1,178 | $ 1,000 |
Notes Payable to Banks | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Long-term Debt | 150 | 150 | 150 |
Bonds | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Long-term Debt | $ 650 | $ 650 | $ 650 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 | Mar. 26, 2022 |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Senior Notes | $ 639,564 | $ 639,220 | $ 638,188 |
Bonds | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Long-term Debt, Fair Value | $ 517,543 | $ 500,065 | $ 551,129 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Interest Rate Swaps (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 | Mar. 26, 2022 |
Fair Value Disclosures [Abstract] | |||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | $ 12,678 | $ 15,146 | $ 9,868 |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock purchase program discount percentage | 15% | |
Share-based compensation plan modifications | no | |
Share-based Payment Arrangement, Noncash Expense | $ 14,514 | $ 12,316 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted | 119,678 | |
Weighted average exercise price | $ 232.73 | |
Weighted average fair value per option | $ 60.91 | |
Total unrecognized compensation expense | $ 13,200 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 3 months 18 days | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted | 194,189 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted | 52,330 | |
Performance Shares [Member] | Share-Based Payment Arrangement, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted | 50,411 | |
Restricted Stock Units and Performance-Based Restricted Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation expense | $ 103,200 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 3 months 18 days | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value per share | $ 224.69 | |
Performance-Based Restricted Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value per share | 237.80 | |
Performance-Based Restricted Share Units | Share-Based Payment Arrangement, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value per share | $ 85.82 |
Business Combinations and Ass_3
Business Combinations and Asset Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Oct. 12, 2022 | Apr. 01, 2023 |
Orscheln Farm and Home, LLC | ||
Business Acquisition [Line Items] | ||
Business Combination, Consideration Transferred | $ 397,700 | |
Goodwill | $ 197,742 | |
Orscheln Stores | ||
Business Acquisition [Line Items] | ||
Disposal Group, Including Discontinued Operation, Consideration | 69,400 | |
Orscheln Distribution Center and Headquarters | ||
Business Acquisition [Line Items] | ||
Disposal Group, Including Discontinued Operation, Consideration | $ 10,000 |
Business Combinations and Ass_4
Business Combinations and Asset Acquisitions (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 12, 2022 |
Business Acquisition [Line Items] | ||
Cash and cash equivalents | $ 6,935 | |
Accounts receivable | 277 | |
Inventories | 168,663 | |
Prepaid expenses and other current assets | 7,222 | |
Property and equipment | 13,328 | |
Lease right of use assets | 82,755 | |
Deferred income taxes | 18,481 | |
Assets held for sale | 173,554 | |
Other assets | 160 | |
Accounts payable | 80,323 | |
Accrued liabilities | 20,291 | |
Short-term lease liabilities | 5,986 | |
Long-term lease liabilities | 70,626 | |
Liabilities held for sale | 94,190 | |
Total fair value of considerations transferred | 397,700 | |
Previously Reported | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | $ 6,935 | |
Accounts receivable | 277 | |
Inventories | 168,663 | |
Prepaid expenses and other current assets | 7,222 | |
Property and equipment | 13,328 | |
Lease right of use assets | 82,755 | |
Deferred income taxes | 18,481 | |
Assets held for sale | 173,554 | |
Other assets | 160 | |
Accounts payable | 80,323 | |
Accrued liabilities | 20,291 | |
Short-term lease liabilities | 5,986 | |
Long-term lease liabilities | 70,626 | |
Liabilities held for sale | 94,190 | |
Total fair value of considerations transferred | 397,700 | |
Revision of Prior Period, Adjustment | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 0 | |
Accounts receivable | 0 | |
Inventories | 0 | |
Prepaid expenses and other current assets | 0 | |
Property and equipment | 0 | |
Lease right of use assets | 0 | |
Deferred income taxes | 0 | |
Assets held for sale | 0 | |
Other assets | 0 | |
Accounts payable | 0 | |
Accrued liabilities | 0 | |
Short-term lease liabilities | 0 | |
Long-term lease liabilities | 0 | |
Liabilities held for sale | 0 | |
Total fair value of considerations transferred | 0 | |
Orscheln Farm and Home, LLC | ||
Business Acquisition [Line Items] | ||
Goodwill | 197,742 | |
Orscheln Farm and Home, LLC | Previously Reported | ||
Business Acquisition [Line Items] | ||
Goodwill | $ 197,742 | |
Orscheln Farm and Home, LLC | Revision of Prior Period, Adjustment | ||
Business Acquisition [Line Items] | ||
Goodwill | $ 0 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive stock options and restricted stock units outstanding, income | $ 0 | $ 0 |
Dilutive stock options and restricted stock units outstanding, per share (in shares) | 736 | 973 |
Dilutive stock options and restricted stock units outstanding , per share | $ 0.01 | $ 0.01 |
Net income | $ 183,088 | $ 187,227 |
Antidilutive securities excluded from computation of earnings per share, amount | 200 | 100 |
Earnings Per Share, Basic [Abstract] | ||
Net income | $ 183,088 | $ 187,227 |
Weighted average number of shares outstanding, basic | 110,045 | 112,531 |
Net income per share – basic | $ 1.66 | $ 1.66 |
Earnings Per Share, Diluted [Abstract] | ||
Dilutive stock options and restricted stock units outstanding, income | $ 0 | $ 0 |
Dilutive stock options and restricted stock units outstanding, per share (in shares) | 736 | 973 |
Dilutive stock options and restricted stock units outstanding, per share (in dollars per share) | $ (0.01) | $ (0.01) |
Net income | $ 183,088 | $ 187,227 |
Weighted average number of shares outstanding, diluted | 110,781 | 113,504 |
Net income per share, diluted (in dollars per share) | $ 1.65 | $ 1.65 |
Antidilutive securities excluded from computation of earnings per share, amount | 200 | 100 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 | Mar. 26, 2022 |
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 1,615,000 | $ 1,178,000 | $ 1,000,000 |
Unamortized Debt Issuance Costs | (13,400) | (13,900) | (13,100) |
Unsecured debt, net of debt issuance costs | 1,601,600 | 1,164,100 | 986,900 |
Unsecured Debt, Current | 0 | 0 | 0 |
Letters of Credit Outstanding, Amount | 58,400 | 52,600 | 52,800 |
Long-term debt | 1,601,563 | 1,164,056 | 986,896 |
2022 Senior Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Month-end Outstanding Amount | 815,000 | 378,000 | |
2016 Senior Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Month-end Outstanding Amount | 0 | ||
Bonds | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 650,000 | 650,000 | 650,000 |
Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 150,000 | 150,000 | 150,000 |
November 2020 Term Loan | |||
Debt Instrument [Line Items] | |||
Notional Amount, Current | $ 0 | $ 0 | $ 200,000 |
Debt (Details)
Debt (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0% |
Debt Instrument, Basis Spread on Variable Rate, Minimum | 0.75% |
Debt Instrument, Basis Spread on Variable Rate LIBOR Plus, Maximum | 1.25% |
Debt Instrument, Basis Spread on Variable Rate LIBOR Plus | 1% |
Debt Instrument, Basis Spread on Variable Rate Revolver | 0.10% |
Amount of incremental credit facility which will result in modification of debt covenants | 100 million |
Interest Rate Swap | |
Debt Instrument [Line Items] | |
Interest Rate Swap, Beginning Notional Amount | $ 200 |
Number of Financial Covenants [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Covenant Description | two |
Fixed Charge Coverage Ratio Minimum Requirement [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Covenant Description | 2.00 |
Leverage Ratio Maximum Requirement [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Covenant Description | 4.00 |
Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0% |
Commitment fee for unused capacity | 0.08% |
Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0.25% |
Commitment fee for unused capacity | 0.15% |
Base Rate | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Interest Rate at Period End | 8% |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | 2022 Senior Credit Facility | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Interest Rate at Period End | 4.802% |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) - $ / shares | 3 Months Ended | ||||
Feb. 08, 2023 | Jan. 26, 2022 | Apr. 01, 2023 | Mar. 26, 2022 | Dec. 31, 2022 | |
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 | ||
Dividends declared per common share outstanding | $ 1.03 | $ 0.92 | $ 1.03 | $ 0.92 |
Capital Stock and Dividends (De
Capital Stock and Dividends (Details) - $ / shares | 3 Months Ended | |||
Feb. 08, 2023 | Jan. 26, 2022 | Apr. 01, 2023 | Mar. 26, 2022 | |
Equity [Abstract] | ||||
Common Stock, Dividends, Per Share, Declared | $ 1.03 | $ 0.92 | $ 1.03 | $ 0.92 |
Treasury Stock - Narrative (Det
Treasury Stock - Narrative (Details) $ in Millions | Apr. 01, 2023 USD ($) |
Equity [Abstract] | |
Remaining authorization under the share repurchase program | $ 1,450 |
Stock Repurchase Program, Authorized Amount | $ 6,500 |
Treasury Stock (Details)
Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Equity [Abstract] | ||
Total number of shares repurchased | 866 | 1,358 |
Average price paid per share | $ 227.67 | $ 218.07 |
Stock Repurchased During Period, Value | $ 197,168 | $ 296,180 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 21% | 21.10% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Mar. 26, 2022 |
Commitments and Contingencies Disclosure [Abstract] | |||
Contractual Obligation | $ 53 | ||
Letters of Credit Outstanding, Amount | $ 58.4 | $ 52.6 | $ 52.8 |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Livestock and Pet | ||
Revenue from External Customer [Line Items] | ||
Percentage of sales | 57% | 53% |
Hardware, Tools and Truck | ||
Revenue from External Customer [Line Items] | ||
Percentage of sales | 17% | 19% |
Seasonal, Gift and Toy Products | ||
Revenue from External Customer [Line Items] | ||
Percentage of sales | 17% | 17% |
Clothing and Footwear | ||
Revenue from External Customer [Line Items] | ||
Percentage of sales | 6% | 8% |
Agriculture | ||
Revenue from External Customer [Line Items] | ||
Percentage of sales | 3% | 3% |
Total | ||
Revenue from External Customer [Line Items] | ||
Percentage of sales | 100% | 100% |
Segment Reporting Number of Rep
Segment Reporting Number of Reportable Segments (Details) | 3 Months Ended |
Apr. 01, 2023 segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 1 |