Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 23, 2017 | Jul. 15, 2016 | |
Document Information [Line Items] | |||
Entity Registrant Name | Advance Auto Parts Inc | ||
Entity Central Index Key | 1,158,449 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 73,761,599 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Public Float | $ 11,647,903,451 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 135,178 | $ 90,782 |
Receivables, net | 641,252 | 597,788 |
Inventories, net | 4,325,868 | 4,174,768 |
Other current assets | 70,466 | 77,408 |
Total current assets | 5,172,764 | 4,940,746 |
Property and equipment, net of accumulated depreciation | 1,446,340 | 1,434,577 |
Goodwill | 990,877 | 989,484 |
Intangible assets, net | 640,903 | 687,125 |
Other assets, net | 64,149 | 75,769 |
Assets, Total | 8,315,033 | 8,127,701 |
Current liabilities: | ||
Current portion of long-term debt | 306 | 598 |
Accounts payable | 3,086,177 | 3,203,922 |
Accrued expenses | 554,397 | 553,163 |
Other current liabilities | 35,166 | 39,794 |
Total current liabilities | 3,676,046 | 3,797,477 |
Long-term debt | 1,042,949 | 1,206,297 |
Deferred income taxes | 454,282 | 433,925 |
Other long-term liabilities | 225,564 | 229,354 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Preferred stock, nonvoting, $0.0001 par value | 0 | 0 |
Common stock, voting, $0.0001 par value | 8 | 7 |
Additional paid-in capital | 631,052 | 603,332 |
Treasury stock, at cost | (138,102) | (119,709) |
Accumulated other comprehensive income (loss) | (39,701) | (44,059) |
Retained earnings | 2,462,935 | 2,021,077 |
Total stockholders' equity | 2,916,192 | 2,460,648 |
Liabilities and Stockholders' Equity, Total | $ 8,315,033 | $ 8,127,701 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Accumulated Depreciation, Property and Equipment | $ 1,660,648 | $ 1,489,766 |
Preferred stock, non-voting, par value | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 10,000 | 10,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, voting, par value | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 200,000 | 200,000 |
Common Stock, Shares, Issued | 75,326 | 74,775 |
Common Stock, Shares, Outstanding | 73,749 | 73,314 |
Treasury Stock, Shares | 1,577 | 1,461 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Jan. 02, 2016 | Oct. 10, 2015 | Jul. 18, 2015 | Apr. 23, 2016 | Apr. 25, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Net sales | $ 2,082,891 | $ 2,248,855 | $ 2,256,155 | $ 2,033,545 | $ 2,295,203 | $ 2,370,037 | $ 2,979,778 | $ 3,038,233 | $ 9,567,679 | $ 9,737,018 | $ 9,843,861 |
Cost of sales, including purchasing and warehousing costs | 5,311,764 | 5,314,246 | 5,390,248 | ||||||||
Gross profit | 907,564 | 988,205 | 1,010,257 | 909,172 | 1,032,387 | 1,087,289 | 1,349,889 | 1,393,924 | 4,255,915 | 4,422,772 | 4,453,613 |
Selling, general and administrative expenses | 3,468,317 | 3,596,992 | 3,601,903 | ||||||||
Operating income | 787,598 | 825,780 | 851,710 | ||||||||
Other, net: | |||||||||||
Interest expense | (59,910) | (65,408) | (73,408) | ||||||||
Other income (expense), net | 11,147 | (7,484) | 3,092 | ||||||||
Total other, net | (48,763) | (72,892) | (70,316) | ||||||||
Income before provision for income taxes | 738,835 | 752,888 | 781,394 | ||||||||
Provision for income taxes | 279,213 | 279,490 | 287,569 | ||||||||
Net income | $ 62,365 | $ 113,844 | $ 124,600 | $ 54,819 | $ 120,469 | $ 149,998 | $ 158,813 | $ 148,112 | $ 459,622 | $ 473,398 | $ 493,825 |
Basic earnings per common share | $ 0.84 | $ 1.54 | $ 1.69 | $ 0.75 | $ 1.64 | $ 2.04 | $ 2.16 | $ 2.02 | $ 6.22 | $ 6.45 | $ 6.75 |
Diluted earnings per common share | $ 0.84 | $ 1.53 | $ 1.68 | $ 0.74 | $ 1.63 | $ 2.03 | $ 2.14 | $ 2 | 6.20 | 6.40 | 6.71 |
Dividends declared per common share | $ 0.24 | $ 0.24 | $ 0.24 | ||||||||
Weighted average common shares outstanding | 73,562 | 73,190 | 72,932 | ||||||||
Weighted average common shares outstanding - assuming dilution | 73,856 | 73,733 | 73,414 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Jan. 02, 2016 | Oct. 10, 2015 | Jul. 18, 2015 | Apr. 23, 2016 | Apr. 25, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Net income | $ 62,365 | $ 113,844 | $ 124,600 | $ 54,819 | $ 120,469 | $ 149,998 | $ 158,813 | $ 148,112 | $ 459,622 | $ 473,398 | $ 493,825 |
Changes in net unrecognized other postretirement benefit costs, net of tax | (534) | (445) | (752) | ||||||||
Currency translation adjustments | 4,892 | (31,277) | (15,268) | ||||||||
Total other comprehensive income (loss) | 4,358 | (31,722) | (16,020) | ||||||||
Comprehensive income | $ 463,980 | $ 441,676 | $ 477,805 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Changes in net unrecognized other postretirement benefit costs, tax | $ 346 | $ 289 | $ 483 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock, at cost [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance at Dec. 28, 2013 | $ 1,516,205 | $ 0 | $ 7 | $ 531,293 | $ (107,890) | $ 3,683 | $ 1,089,112 |
Balance (in shares) at Dec. 28, 2013 | 0 | 74,224 | 1,384 | ||||
Net income | 493,825 | 493,825 | |||||
Total other comprehensive income (loss) | (16,020) | (16,020) | |||||
Issuance of shares upon the exercise of stock options and stock appreciation rights | 1,874 | 1,874 | |||||
Issuance of shares upon the exercise of stock options and stock appreciation rights (in shares) | 162 | ||||||
Tax withholdings related to the exercise of stock appreciation rights | (7,102) | (7,102) | |||||
Tax benefit from share-based compensation, net | 10,471 | 10,471 | |||||
Restricted stock and restricted stock units vested | 0 | ||||||
Restricted stock and restricted stock units vested (in shares) | 68 | ||||||
Share-based compensation | 21,705 | 21,705 | |||||
Stock issued under employee stock purchase plan | 4,660 | 4,660 | |||||
Stock issued under employee stock purchase plan (in shares) | 39 | ||||||
Repurchase of common stock | (5,154) | $ (5,154) | |||||
Repurchase of common stock (in shares) | 35 | ||||||
Cash dividends declared | (17,596) | (17,596) | |||||
Other | 44 | 44 | |||||
Balance at Jan. 03, 2015 | 2,002,912 | $ 0 | $ 7 | 562,945 | $ (113,044) | (12,337) | 1,565,341 |
Balance (in shares) at Jan. 03, 2015 | 0 | 74,493 | 1,419 | ||||
Net income | 473,398 | 473,398 | |||||
Total other comprehensive income (loss) | (31,722) | (31,722) | |||||
Issuance of shares upon the exercise of stock options and stock appreciation rights | 0 | 0 | |||||
Issuance of shares upon the exercise of stock options and stock appreciation rights (in shares) | 138 | ||||||
Tax withholdings related to the exercise of stock appreciation rights | (13,112) | (13,112) | |||||
Tax benefit from share-based compensation, net | 12,989 | 12,989 | |||||
Restricted stock and restricted stock units vested | 0 | ||||||
Restricted stock and restricted stock units vested (in shares) | 109 | ||||||
Share-based compensation | 35,336 | 35,336 | |||||
Stock issued under employee stock purchase plan | 5,139 | 5,139 | |||||
Stock issued under employee stock purchase plan (in shares) | 35 | ||||||
Repurchase of common stock | (6,665) | $ (6,665) | |||||
Repurchase of common stock (in shares) | 42 | ||||||
Cash dividends declared | (17,662) | (17,662) | |||||
Other | 35 | 35 | |||||
Balance at Jan. 02, 2016 | $ 2,460,648 | $ 0 | $ 7 | 603,332 | $ (119,709) | (44,059) | 2,021,077 |
Balance (in shares) at Jan. 02, 2016 | 73,314 | 0 | 74,775 | 1,461 | |||
Net income | $ 459,622 | 459,622 | |||||
Total other comprehensive income (loss) | 4,358 | 4,358 | |||||
Issuance of shares upon the exercise of stock options and stock appreciation rights | 1 | $ 1 | |||||
Issuance of shares upon the exercise of stock options and stock appreciation rights (in shares) | 149 | ||||||
Tax withholdings related to the exercise of stock appreciation rights | (19,558) | (19,558) | |||||
Tax benefit from share-based compensation, net | 22,325 | 22,325 | |||||
Restricted stock and restricted stock units vested | 0 | ||||||
Restricted stock and restricted stock units vested (in shares) | 372 | ||||||
Share-based compensation | 20,422 | 20,422 | |||||
Stock issued under employee stock purchase plan | 4,369 | 4,369 | |||||
Stock issued under employee stock purchase plan (in shares) | 30 | ||||||
Repurchase of common stock | (18,393) | $ (18,393) | |||||
Repurchase of common stock (in shares) | 116 | ||||||
Cash dividends declared | (17,764) | (17,764) | |||||
Other | 162 | 162 | |||||
Balance at Dec. 31, 2016 | $ 2,916,192 | $ 0 | $ 8 | $ 631,052 | $ (138,102) | $ (39,701) | $ 2,462,935 |
Balance (in shares) at Dec. 31, 2016 | 73,749 | 0 | 75,326 | 1,577 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Statement of Stockholders' Equity (Parenthetical) [Abstract] | |||
Dividends declared per common share | $ 0.24 | $ 0.24 | $ 0.24 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 459,622 | $ 473,398 | $ 493,825 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 258,387 | 269,476 | 284,693 |
Share-based compensation | 20,452 | 36,929 | 21,705 |
Loss on property and equipment, net | 5,999 | 12,882 | 13,281 |
Other | (2,039) | 2,660 | 2,631 |
Provision (benefit) for deferred income taxes | 20,213 | (9,219) | 48,468 |
Excess tax benefit from share-based compensation | (22,429) | (13,002) | (10,487) |
Net Increase Decrease in Operating Capital, net of effect from acquisition of businesses | |||
Receivables, net | (41,642) | (21,476) | (48,209) |
Inventories, net | (144,603) | (244,096) | (227,657) |
Other assets | 14,421 | 7,423 | (63,482) |
Accounts payable | (119,325) | 119,164 | 216,412 |
Accrued expenses | 49,341 | 35,103 | (28,862) |
Other liabilities | 2,477 | 20,400 | 6,673 |
Net cash provided by operating activities | 500,874 | 689,642 | 708,991 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (259,559) | (234,747) | (228,446) |
Business acquisitions, net of cash acquired | (4,697) | (18,889) | (2,060,783) |
Proceeds from sales of property and equipment | 2,212 | 270 | 992 |
Net cash used in investing activities | (262,044) | (253,366) | (2,288,237) |
Cash flows from financing activities: | |||
(Decrease) increase in bank overdrafts | (5,573) | (2,922) | 16,219 |
Borrowings under credit facilities | 799,600 | 618,300 | 2,238,200 |
Payments on credit facilities | (959,600) | (1,041,700) | (1,654,800) |
Dividends paid | (17,738) | (17,649) | (17,580) |
Proceeds from the issuance of common stock, primarily for employee stock purchase plan | 4,532 | 5,174 | 6,578 |
Tax withholdings related to the exercise of stock appreciation rights | (19,558) | (13,112) | (7,102) |
Excess tax benefit from share-based compensation | 22,429 | 13,002 | 10,487 |
Repurchase of common stock | (18,393) | (6,665) | (5,154) |
Contingent consideration related to previous business acquisition | 0 | 0 | (10,047) |
Other | (390) | (380) | (890) |
Net cash (used in) provided by financing activities | (194,691) | (445,952) | 575,911 |
Effect of exchange rate changes on cash | 257 | (4,213) | (4,465) |
Net increase (decrease) in cash and cash equivalents | 44,396 | (13,889) | (1,007,800) |
Cash and cash equivalents, beginning of period | 90,782 | 104,671 | 1,112,471 |
Cash and cash equivalents, end of period | 135,178 | 90,782 | 104,671 |
Supplemental cash flow information: | |||
Interest paid | 55,457 | 62,371 | 71,109 |
Income tax payments | 225,327 | 254,408 | 268,624 |
Non-cash transactions: | |||
Accrued purchases of property and equipment | 21,176 | 44,038 | 28,877 |
Changes in other comprehensive income from post retirement benefits | (534) | (445) | (752) |
Declared but unpaid cash dividends | $ 4,424 | $ 4,398 | $ 4,384 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies: Organization and Description of Business Advance Auto Parts, Inc. (“Advance”) conducts all of its operations through its wholly owned subsidiary, Advance Stores Company, Incorporated (“Stores”), and its subsidiaries (collectively, the “Company”), all of which are 100% owned. As of December 31, 2016 , the Company's operations are comprised of 5,062 stores and 127 branches, which operate in the United States, Canada, Puerto Rico and the U.S. Virgin Islands primarily under the trade names “Advance Auto Parts,” "Carquest," "Autopart International" and "Worldpac." In addition, we served approximately 1,250 independently-owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos, the British Virgin Islands and the Pacific Islands as of December 31, 2016 . As further described in Note 3, Acquisitions, the "Carquest" and "Worldpac" brands were acquired on January 2, 2014 as part of the acquisition of General Parts International, Inc. ("GPI"). The Company serves both do-it-for-me, or Professional, and do-it-yourself, or DIY, customers and offers a broad selection of brand name, original equipment manufacturer ("OEM") and proprietary automotive replacement parts, accessories, and maintenance items primarily for domestic and imported cars and light trucks. The Company offers delivery service to its Professional customers’ places of business, including independent garages, service stations and auto dealers, utilizing a fleet of vehicles to deliver product from its 4,501 store and branch locations with delivery service. Accounting Period The Company’s fiscal year ends on the Saturday nearest the end of December. Fiscal years 2016 and 2015 each contained 52 weeks, while fiscal 2014 contained 53 weeks. The additional week of operations for fiscal 2014 was included in the Company's fourth quarter. All references herein for the years 2016 , 2015 and 2014 represent the fiscal years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. Principles of Consolidation The consolidated financial statements include the accounts of Advance and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Cash, Cash Equivalents and Bank Overdrafts Cash and cash equivalents consist of cash in banks and money market funds with original maturities of three months or less. Included in cash equivalents are credit card and debit card receivables from banks, which generally settle in less than four business days. Credit and debit card receivables included in Cash and cash equivalents as of December 31, 2016 and January 2, 2016 were $26,480 and $37,906 , respectively. Bank overdrafts consist of outstanding checks not yet presented to a bank for settlement, net of cash held in accounts with right of offset. Bank overdrafts of $13,124 and $18,584 are included in Other current liabilities as of December 31, 2016 and January 2, 2016 , respectively. Receivables Receivables, net consist primarily of receivables from Professional customers and vendors. The Company grants credit to certain Professional customers who meet the Company’s pre-established credit requirements. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s Professional customers to make required payments. The Company considers the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. Concentrations of credit risk with respect to these receivables are limited because the Company’s customer base consists of a large number of small customers, spreading the credit risk across a broad base. The Company also controls this credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures. The Company’s vendor receivables are established as it receives concessions from its vendors through a variety of programs and arrangements, including allowances for new stores and warranties and volume purchase rebates. Amounts receivable from vendors also include amounts due to the Company for changeover merchandise and product returns. The Company regularly reviews vendor receivables for collectibility and assesses the need for a reserve for uncollectible amounts based on an evaluation of the vendors’ financial positions and corresponding abilities to meet financial obligations. The Company’s allowance for doubtful accounts related to vendor receivables is not significant. Inventory Inventory amounts are stated at the lower of cost or market. The cost of the Company’s merchandise inventory is primarily determined using the last-in, first-out (“LIFO”) method. Under the LIFO method, the Company’s cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs relating to prices paid in 2016 and prior years. Vendor Incentives The Company receives incentives in the form of reductions to amounts owed to and/or payments from vendors related to volume rebates and other promotional considerations. Many of these incentives are under long-term agreements in excess of one year, while others are negotiated on an annual basis or less (short-term). Advertising allowances provided as a reimbursement of specific, incremental and identifiable costs incurred to promote a vendor’s products are included as an offset to selling, general and administrative expenses, or SG&A, when the cost is incurred. Volume rebates and allowances that do not meet the requirements for offsetting in SG&A are recorded initially as a reduction to inventory as they are earned based on inventory purchases and reduce cost of sales as the inventory is sold. Total deferred vendor incentives included as a reduction of Inventory was $211,072 and $210,674 as of December 31, 2016 and January 2, 2016 , respectively. Similarly, the Company recognizes other promotional incentives earned under long-term agreements not specifically related to volume of purchases as a reduction to cost of sales. However, these incentives are not deferred as a reduction of inventory and are recognized based on the cumulative net purchases as a percentage of total estimated net purchases over the life of the agreement. Short-term incentives (terms less than one year) are generally recognized as a reduction to cost of sales over the duration of any short-term agreements. Amounts received or receivable from vendors that are not yet earned are reflected as deferred revenue in the accompanying consolidated balance sheets. Management’s estimate of the portion of deferred revenue that will be realized within one year of the balance sheet date has been included in Other current liabilities in the accompanying consolidated balance sheets. Earned amounts that are receivable from vendors are included in Receivables and Other assets on the accompanying consolidated balance sheets. Advertising Costs The Company expenses advertising costs as incurred. Advertising expense, net of qualifying vendor promotional funds, was $97,003 , $108,827 and $96,463 in 2016 , 2015 and 2014 , respectively. Vendor promotional funds, which reduced advertising expense, amounted to $29,308 and $17,530 and $21,814 in 2016 , 2015 and 2014 , respectively. Preopening Expenses Preopening expenses, which consist primarily of payroll and occupancy costs related to the opening of new stores, are expensed as incurred. Income Taxes The Company accounts for income taxes under the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under the asset and liability method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date. The Company recognizes tax benefits and/or tax liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as the Company must determine the probability of various possible outcomes. The Company reevaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. The reevaluations are based on many factors, including but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes of limitations and new federal or state audit activity. Any change in either the Company’s recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. The Company also follows guidance provided on other items relevant to the accounting for income taxes throughout the year, as applicable, including derecognition of benefits, classification, interest and penalties, accounting in interim periods, disclosure and transition. Self-Insurance The Company is self-insured for general and automobile liability, workers’ compensation and health care claims of its employees, or Team Members, while maintaining stop-loss coverage with third-party insurers to limit its total liability exposure. Expenses associated with these liabilities are calculated for (i) claims filed, (ii) claims incurred but not yet reported and (iii) projected future claims using actuarial methods followed in the insurance industry as well as the Company’s historical claims experience. The Company includes the current and long-term portions of its self-insurance reserves in Accrued expenses and Other long-term liabilities, respectively. The following table presents changes in the Company’s total self-insurance reserves: December 31, 2016 January 2, 2016 January 3, 2015 Self-insurance reserves, beginning of period $ 133,975 $ 137,033 $ 98,475 Additions to self-insurance reserves 163,693 160,232 159,752 Acquired reserves — — 41,673 Reserves utilized (157,045 ) (163,290 ) (162,867 ) Self-insurance reserves, end of period $ 140,623 $ 133,975 $ 137,033 Warranty Liabilities The warranty obligation on the majority of merchandise sold by the Company with a manufacturer's warranty is the responsibility of the Company’s vendors. However, the Company has an obligation to provide customers free replacement of certain merchandise or merchandise at a prorated cost if under a warranty and not covered by the manufacturer. Merchandise sold with warranty coverage by the Company primarily includes batteries, but may also include other parts such as brakes and shocks. The Company estimates its warranty obligation at the time of sale based on the historical return experience, sales level and cost of the respective product sold. To the extent vendors provide upfront allowances in lieu of accepting the obligation for warranty claims and the allowance is in excess of the related warranty expense, the excess is recorded as a reduction to cost of sales. Revenue Recognition The Company recognizes revenue at the time the sale is made, at which time the Company’s walk-in customers take immediate possession of the merchandise or same-day delivery is made to the Company’s Professional delivery customers, which include certain independently-owned store locations. For e-commerce sales, revenue is recognized either at the time of pick-up at one of the Company’s store locations or at the time of shipment depending on the customer’s order designation. Sales are recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. The Company estimates the reduction to sales and cost of sales for returns based on current sales levels and the Company’s historical return experience. The Company’s reserve for sales returns and allowances was not material as of December 31, 2016 and January 2, 2016 . Share-Based Payments The Company provides share-based compensation to its eligible Team Members and Board of Directors. The Company is required to exercise judgment and make estimates when determining the (i) fair value of each award granted and (ii) projected number of awards expected to vest. The Company calculates the fair value of all share-based awards at the date of grant and uses the straight-line method to amortize this fair value as compensation cost over the requisite service period. Derivative Instruments and Hedging Activities The Company’s accounting policy for derivative financial instruments is based on whether the instruments meet the criteria for designation as cash flow or fair value hedges. The criteria for designating a derivative as a hedge include the assessment of the instrument’s effectiveness in risk reduction, matching of the derivative instrument to its underlying transaction and the probability that the underlying transaction will occur. For derivatives with cash flow hedge designation, the Company would recognize the after-tax gain or loss from the effective portion of the hedge as a component of Accumulated other income (loss) and reclassify it into earnings in the same period or periods in which the hedged transaction affected earnings, and within the same income statement line item as the impact of the hedged transaction. For derivatives with fair value hedge accounting designation, the Company would recognize gains or losses from the change in the fair value of these derivatives, as well as the offsetting change in the fair value of the underlying hedged item, in earnings. Foreign Currency Translation The assets and liabilities of the Company's Canadian operations are translated into U.S. dollars at current exchange rates, and revenues, expenses and cash flows are translated at average exchange rates for the fiscal year. Resulting translation adjustments are reflected as a separate component in the Consolidated Statements of Comprehensive Income. Losses from foreign currency transactions, which are included in Other income, net, were $7,430 during 2015 . Gains and losses from foreign currency transactions were not significant in 2016 or 2014. Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) is a measure that reports all changes in equity resulting from transactions and other economic events during the period. The changes in accumulated other comprehensive income refer to revenues, expenses, gains, and losses that are included in other comprehensive income but excluded from net income. The Company’s Accumulated other comprehensive income (loss) is comprised of foreign currency translation gains (losses) and the net unrealized gain associated with the Company's postretirement benefit plan. Goodwill and Other Intangible Assets The Company records goodwill equal to the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. The Company tests goodwill and indefinite-lived intangible assets for impairment annually as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. These indicators would include a significant change in operating performance, the business climate, legal factors, competition, or a planned sale or disposition of a significant portion of the business, among other factors. The Company reviews finite-lived intangible assets for impairment in accordance with its policy for the valuation of long-lived assets. Valuation of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable and exceeds its fair value. When such an event occurs, the Company estimates the undiscounted future cash flows expected to result from the use of the long-lived asset (asset group) and its eventual disposition. These impairment evaluations involve estimates of asset useful lives and future cash flows. If the undiscounted expected future cash flows are less than the carrying amount of the asset and the carrying amount of the asset exceeds its fair value, an impairment loss is recognized. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on quoted market prices or other valuation techniques (e.g., discounted cash flow analysis). In 2016 , 2015 and 2014 , the Company recognized impairment losses of $2,759 and $11,017 and $11,819 , respectively, on various store and corporate assets. The remaining fair value of these assets was not significant. Earnings per Share The Company uses the two-class method to calculate earnings per share. Under the two-class method, unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share. Certain of the Company’s shares granted to Team Members in the form of restricted stock and restricted stock units are considered participating securities. Accordingly, earnings per share is computed by dividing net income attributable to the Company’s common shareholders by the weighted-average common shares outstanding during the period. The two-class method is an earnings allocation formula that determines income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Diluted income per common share reflects the more dilutive earnings per share amount calculated using the treasury stock method or the two-class method. Basic earnings per share of common stock has been computed based on the weighted-average number of common shares outstanding during the period, which is reduced by stock held in treasury and shares of nonvested restricted stock units. Diluted earnings per share is calculated by including the effect of dilutive securities. Diluted earnings per share of common stock reflects the weighted-average number of shares of common stock outstanding, outstanding deferred stock units and the impact of outstanding stock options and stock appreciation rights (collectively “share-based awards”). Share-based awards containing performance conditions are included in the dilution impact as those conditions are met. Lease Accounting The Company leases certain store locations, distribution centers, office spaces, equipment and vehicles. The total amount of minimum rent is expensed on a straight-line basis over the initial term of the lease unless external economic factors exist such that renewals are reasonably assured. In those instances, the renewal period would be included in the lease term for purposes of establishing an amortization period and determining if such lease qualified as a capital or operating lease. Differences between the calculated rent expense and cash payments are recorded as a liability within the Accrued expenses and Other long-term liabilities captions in the accompanying consolidated balance sheets, based on the terms of the lease. Deferred rent was $76,358 and $70,802 as of December 31, 2016 and January 2, 2016 , respectively. In addition to minimum fixed rental payments, some leases provide for contingent facility rentals. Contingent facility rentals are determined on the basis of a percentage of sales in excess of stipulated minimums for certain store facilities as defined in the individual lease agreements. Most of the leases provide that the Company pay taxes, maintenance, insurance and certain other expenses applicable to the leased premises. Management expects that in the normal course of business leases that expire will be renewed or replaced by other leases. Property and Equipment Property and equipment are stated at cost, or at fair value at acquisition if acquired through a business combination, less accumulated depreciation. Expenditures for maintenance and repairs are charged directly to expense when incurred; major improvements are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the account balances, with any gain or loss reflected in the consolidated statements of operations. Depreciation of land improvements, buildings, furniture, fixtures and equipment, and vehicles is provided over the estimated useful lives of the respective assets using the straight-line method. Depreciation of building and leasehold improvements is provided over the shorter of the original useful lives of the respective assets or the term of the lease using the straight-line method. Closed Facility Liabilities and Exit Activities The Company continually reviews the operating performance of its existing store locations and closes or relocates certain stores identified as underperforming. In addition, the Company is consolidating certain locations as part of its planned integration of GPI. Expenses accrued pertaining to closed facility exit activities are included in the Company’s closed facility liabilities, within Accrued expenses and Other long-term liabilities in the accompanying consolidated balance sheets, and recognized in SG&A in the accompanying consolidated statements of operations at the time the facilities actually close. Closed facility liabilities include the present value of the remaining lease obligations and management’s estimate of future costs of insurance, property tax and common area maintenance expenses (reduced by the present value of estimated revenues from subleases and lease buyouts). From time to time closed facility liability estimates require revisions, primarily due to changes in assumptions associated with revenue from subleases. The effect of accretion and changes in estimates for our closed facility liabilities are included in SG&A in the accompanying consolidated statements of operations at the time the changes in estimates are made. Employees receiving severance benefits as the result of a store closing or other restructuring activity are required to render service until they are terminated in order to receive benefits. The severance is recognized in SG&A in the accompanying consolidated statements of operations over the related service period. Other restructuring costs, including costs to relocate employees, are recognized in the period in which the liability is incurred. The Company also evaluates and determines if the results from the closure of store locations should be reported as discontinued operations based on the elimination of the operations and associated cash flows from the Company’s ongoing operations if the disposal represents a strategic shift that has (or will have) a major effect on the Company's operations and financial results. Cost of Sales and Selling, General and Administrative Expenses The following table identifies the primary costs classified in each major expense category: Cost of Sales SG&A • Total cost of merchandise sold including: • Payroll and benefit costs for store and corporate - Freight expenses associated with moving Team Members; merchandise inventories from our vendors to • Occupancy costs of store and corporate facilities; our distribution center, • Depreciation and amortization related to store and - Vendor incentives, and corporate assets; - Cash discounts on payments to vendors; • Advertising; • Inventory shrinkage; • Costs associated with our Professional delivery • Defective merchandise and warranty costs; program, including payroll and benefit costs, • Costs associated with operating our distribution and transportation expenses associated with moving network, including payroll and benefit costs, merchandise inventories from our stores and branches to occupancy costs and depreciation; and our customer locations; • Freight and other handling costs associated with • Self-insurance costs; moving merchandise inventories through our • Professional services; supply chain • Other administrative costs, such as credit card - From our distribution centers to our store and service fees, supplies, travel and lodging; branch locations and customers, and • Closed facility expense; - From certain of our larger stores which stock a • Impairment charges; and wider variety and greater supply of inventory (“HUB • GPI integration costs. stores”) to our stores after the customer has special-ordered the merchandise. Recently Adopted Accounting Pronouncements The Company adopted Accounting Standards Update ("ASU") 2015-03 "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" effective January 3, 2016, or the beginning of fiscal 2016. ASU 2015-03 simplifies the presentation of debt issuance costs by requiring such costs be presented as a deduction from the corresponding debt liability. Concurrently, the Company also adopted ASU 2015-15 "Interest - Imputed Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" which clarifies that entities may continue to defer and present debt issuance costs associated with a line-of-credit as an asset and subsequently amortize the deferred costs ratably over the term of the arrangement. The adoption of these ASU's have been retrospectively applied and resulted in a reclassification of $6,864 of debt issuance costs from Other assets, net to Long-term debt in the accompanying consolidated balance sheets as of January 2, 2016. The Company adopted ASU 2014-12 “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period" effective the beginning of fiscal 2016. The amendments in this ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The adoption of this standard did not impact the Company's consolidated financial statements as the Company's policies were already consistent with the new guidance. Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which required a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted after January 1, 2017. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" related to the classification of certain cash receipts and cash payments on the statement of cash flows. The pronouncement provides clarification guidance on eight specific cash flow presentation issues that have developed due to diversity in practice. The issues include, but are not limited to, debt prepayment or extinguishment costs, settlement of zero-coupon debt, proceeds from the settlement of insurance claims, and cash receipts from payments on beneficial interests in securitization transactions. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which requires businesses to present financial assets, measured at an amortized cost basis, at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis, such as trade receivables. The measurement of expected credit loss will be based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, and requires a modified retrospective adoption, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial condition, results of operations or cash flows. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" aimed at simplifying certain aspects of accounting for share-based payment transactions. The areas for simplification include the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard will be applied both prospectively and retrospectively depending on the provision. The Company will adopt ASU 2016-09 in the first quarter of fiscal 2017 and will record an immaterial cumulative effect adjustment to beginning retained earnings related to the Company's election to record forfeitures as they occur. The Company does not expect the provisions of the new guidance to have a material impact on its consolidated financial statements, except as it relates to the provision requiring the inclusion of excess tax benefits (deficits) as a component of income tax expense in the consolidated results of operations. This provision will be applied prospectively and the impact will be dependent on the volume of future exercise and vesting activity and changes in the Company's stock price. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." This ASU is a comprehensive new leases standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. It will require lessees to recognize lease assets and lease liabilities for all leases, including those leases previously classified as operating leases under current GAAP. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The ASU is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years; earlier adoption is permitted. In the financial statements in which the ASU is first applied, leases will be measured and recognized at the beginning of the earliest comparative period presented with an adjustment to equity. Practical expedients are available for election as a package and if applied consistently to all leases. From a balance sheet perspective, the Company expects adoption of the new standard to have a material effect on its Total assets and Total liabilities as a result of reco |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2016 | |
Inventory, Net [Abstract] | |
Inventories, net | Inventories, net: Merchandise Inventory The Company used the LIFO method of accounting for approximately 89% of inventories at both December 31, 2016 and January 2, 2016 . Under LIFO, the Company’s cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs for inventories purchased in 2016 and prior years. As a result of utilizing LIFO, the Company recorded a reduction to cost of sales of $40,711 and $42,295 in 2016 and 2015 , respectively, and an increase to cost of sales of $8,930 in 2014 . Historically, the Company’s overall costs to acquire inventory for the same or similar products have generally decreased as the Company has been able to leverage its continued growth and execution of merchandise strategies. The increase in cost of sales for 2014 was the result of an increase in supply chain costs. Product Cores The remaining inventories are comprised of product cores, the non-consumable portion of certain parts and batteries and the inventory of certain subsidiaries, which are valued under the first-in, first-out (“FIFO”) method. Product cores are included as part of the Company’s merchandise costs and are either passed on to the customer or returned to the vendor. Because product cores are not subject to frequent cost changes like the Company’s other merchandise inventory, there is no material difference when applying either the LIFO or FIFO valuation method. Inventory Overhead Costs Purchasing and warehousing costs included in inventory as of December 31, 2016 and January 2, 2016 , were $395,240 and $359,829 , respectively. Inventory Balance and Inventory Reserves Inventory balances at the end of 2016 and 2015 were as follows: December 31, January 2, Inventories at FIFO, net $ 4,120,030 $ 4,009,641 Adjustments to state inventories at LIFO 205,838 165,127 Inventories at LIFO, net $ 4,325,868 $ 4,174,768 Inventory quantities are tracked through a perpetual inventory system. The Company completes physical inventories and other targeted inventory counts in its store locations to ensure the accuracy of the perpetual inventory quantities of merchandise and core inventory. In its distribution centers and branches, the Company uses a cycle counting program to ensure the accuracy of the perpetual inventory quantities of merchandise and product core inventory. Reserves for estimated shrink are established based on the results of physical inventories conducted by the Company and other targeted inventory counts in its stores, results from recent cycle counts in its distribution facilities and historical and current loss trends. The Company also establishes reserves for potentially excess and obsolete inventories based on (i) current inventory levels, (ii) the historical analysis of product sales and (iii) current market conditions. The Company has return rights with many of its vendors and the majority of excess inventory is returned to its vendors for full credit. In certain situations, the Company establishes reserves when less than full credit is expected from a vendor or when liquidating product will result in retail prices below recorded costs. The following table presents changes in the Company’s inventory reserves for years ended December 31, 2016 , January 2, 2016 and January 3, 2015 : December 31, January 2, January 3, Inventory reserves, beginning of period $ 70,383 $ 49,439 $ 37,523 Additions to inventory reserves 118,710 97,226 92,773 Reserves utilized (98,458 ) (76,282 ) (80,857 ) Inventory reserves, end of period $ 90,635 $ 70,383 $ 49,439 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions: General Parts International, Inc. On January 2, 2014 , the Company acquired GPI in an all-cash transaction. GPI, formerly a privately-held company, was a leading distributor and supplier of original equipment and aftermarket replacement products for Professional markets operating under the Carquest and Worldpac brands. As of the acquisition date, GPI operated 1,233 Carquest stores and 103 Worldpac branches located in 45 states and Canada and serviced approximately 1,400 independently-owned Carquest branded stores. The acquisition of GPI allowed the Company to expand its geographic presence, Professional capabilities and overall scale to better serve customers. The Company acquired all of GPI's assets and liabilities as a result of the transaction. Under the terms of the agreement, the Company acquired all of the outstanding stock of GPI for a purchase price of $2,080,804 (subject to adjustment for certain closing items) consisting of $1,307,991 in cash to GPI's shareholders, the repayment of $694,301 of GPI debt and $78,512 in make-whole fees and transaction-related expenses paid by the Company on GPI's behalf. The Company funded the purchase price with cash on-hand, $700,000 from a term loan and $306,046 from a revolving credit facility. Refer to Note 7, Long-Term Debt , for a more detailed description of this debt. The Company recognized no acquisition-related costs during Fiscal 2014 or Fiscal 2015, as all of these costs were recognized during Fiscal 2013. The Company has included the financial results of GPI in its consolidated financial statements commencing January 2, 2014 . GPI contributed sales of $3,040,493 and net income of $58,535 during 2014. The net income reflects amortization related to the acquired intangible assets and integration expenses. The Company placed $200,881 of the total purchase price in escrow to secure indemnification obligations of the sellers relating to the accuracy of representations and warranties and the satisfaction of covenants. Approximately half of the escrow funds were disbursed to the Sellers in July 2015 and the remaining amount was distributed in January 2017, after deducting for any claims indemnified from escrow or pending as of such release. According to the agreement, the Company was indemnified, in addition to other things, for the escrow term of three years, against losses incurred relating to taxes owed by GPI for periods prior to June 30, 2013. Other The Company acquired 7 , 23 and 9 stores through multiple cash transactions during 2016 , 2015 and 2014 , respectively. The aggregate cost of the store acquisitions during 2016 , 2015 and 2014 was $4,697 , $18,889 and $5,155 , respectively, the value of which was primarily attributed to inventory, accounts receivable and goodwill. The fair value of assets and liabilities assumed are included in the balance sheets as of December 31, 2016 and January 2, 2016 . Proforma financial information is not provided based on materiality. The results of these stores are not material to the Company's consolidated financial statements. |
Exit Activities and Impairment
Exit Activities and Impairment | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Exit Activities and Impairment | Exit Activities and Impairment: Integration of Carquest stores The Company approved plans in June 2014 to begin consolidating its Carquest stores acquired with GPI on January 2, 2014 as part of a multi-year integration plan. As of December 31, 2016 , 333 Carquest stores acquired with GPI had been consolidated into existing Advance Auto Parts stores and 282 stores had been converted to the Advance Auto Parts format. In addition, as of December 31, 2016 the Company had completed the consolidation and conversion of stores that were acquired with B.W.P. Distributors, Inc. ("BWP") on December 31, 2012 (which also operated under the Carquest trade name). During 2016, a total of 156 Carquest stores were consolidated and 123 stores were converted. During 2015, a total of 84 Carquest stores were consolidated and 180 stores were converted. As of December 31, 2016 , the Company had 608 stores acquired with GPI still operating under the Carquest name. The Company incurred $18,900 , $7,286 and $7,888 of exit costs related to the consolidations and conversions during 2016, 2015 and 2014, respectively, primarily related to closed store lease obligations. Office Consolidations In June 2014, the Company approved plans to relocate operations from its Minneapolis, Minnesota and Campbell, California offices to other existing offices of the Company, including its offices in Newark, California, Roanoke, Virginia and Raleigh, North Carolina, and to close its Minneapolis and Campbell offices. The Company also relocated various functions between its existing offices in Roanoke and Raleigh. The relocations and office closings were substantially complete by the end of 2015. The Company incurred restructuring costs of approximately $22,100 under these plans through the end of 2015. Substantially all of these costs were cash expenditures. During 2015 and 2014, the Company recognized $3,869 and $6,731 , respectively, of severance/outplacement benefits under these restructuring plans and other severance related to the acquisition of GPI. During 2015 and 2014, the Company recognized $4,419 and $7,053 , respectively, of relocation costs associated with these plans. Other Exit Activities In the second half of 2015, the Company closed 80 underperforming Advance Auto Parts, Carquest and Autopart International ("AI") stores and eliminated certain positions at its corporate offices. The majority of the corporate office eliminations were effective during the third quarter of fiscal 2015. The Company recognized $6,909 of severance costs related to the elimination of corporate office positions during 2015. The Company also incurred restructuring costs of $21,984 related to the 80 store closures in 2015, primarily consisting of closed facility lease obligations. In 2015, the Company completed its plan approved in August 2014 to consolidate and convert its 40 AI stores located in Florida into Advance Auto Parts stores. During 2015, the Company incurred $2,700 of exit costs, consisting primarily of closed facility lease obligations, associated with this plan. Total Restructuring Liabilities A summary of the Company’s restructuring liabilities, which are recorded in accrued expenses (current portion) and long-term liabilities (long-term portion) in the accompanying consolidated balance sheets, are presented in the following table: Closed Facility Lease Obligations Severance Relocation and Other Exit Costs Total Balance, January 2, 2016 $ 42,490 $ 6,255 $ 351 $ 49,096 Reserves established 23,252 988 238 24,478 Change in estimates (3,073 ) (410 ) — (3,483 ) Cash payments (18,404 ) (5,874 ) (589 ) (24,867 ) Balance, December 31, 2016 $ 44,265 $ 959 $ — $ 45,224 Balance, January 3, 2015 $ 19,270 $ 5,804 $ 1,816 $ 26,890 Reserves established 34,699 13,351 4,419 52,469 Change in estimates (205 ) (2,009 ) — (2,214 ) Cash payments (11,274 ) (10,891 ) (5,884 ) (28,049 ) Balance, January 2, 2016 $ 42,490 $ 6,255 $ 351 $ 49,096 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: Goodwill The following table reflects the carrying amount of goodwill and the changes in goodwill carrying amounts. December 31, January 2, (52 weeks ended) (52 weeks ended) Goodwill, beginning of period $ 989,484 $ 995,426 Acquisitions — 1,995 Changes in foreign currency exchange rates 1,393 (7,937 ) Goodwill, end of period $ 990,877 $ 989,484 During 2015, the Company added $1,995 of goodwill associated with the acquisition of 23 stores. Intangible Assets Other Than Goodwill Amortization expense was $48,020 , $53,056 and $56,499 for 2016 , 2015 and 2014 , respectively. The gross carrying amounts and accumulated amortization of acquired intangible assets as of December 31, 2016 and January 2, 2016 are comprised of the following: December 31, 2016 January 2, 2016 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Customer relationships $ 349,615 $ (89,420 ) $ 260,195 $ 358,655 $ (70,367 ) $ 288,288 Acquired technology — — — 8,850 (8,850 ) — Favorable leases 48,693 (24,864 ) 23,829 56,040 (23,984 ) 32,056 Non-compete and other 54,130 (32,708 ) 21,422 57,430 (25,368 ) 32,062 452,438 (146,992 ) 305,446 480,975 (128,569 ) 352,406 Unamortized intangible assets: Brands, trademark and tradenames 335,457 — 335,457 334,719 — 334,719 Total intangible assets $ 787,895 $ (146,992 ) $ 640,903 $ 815,694 $ (128,569 ) $ 687,125 During 2016, the Company retired $29,342 of fully amortized intangible assets, impacting both the gross carrying amount and accumulated amortization by this amount. Future Amortization Expense The table below shows expected amortization expense for the next five years and thereafter for acquired intangible assets recorded as of December 31, 2016 : Fiscal Year Amount 2017 $ 45,738 2018 42,795 2019 32,380 2020 31,728 2021 31,066 Thereafter 121,739 |
Receivables, net
Receivables, net | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net: Receivables consist of the following: December 31, January 2, Trade $ 407,301 $ 379,832 Vendor 239,770 229,496 Other 23,345 14,218 Total receivables 670,416 623,546 Less: Allowance for doubtful accounts (29,164 ) (25,758 ) Receivables, net $ 641,252 $ 597,788 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt: Long-term debt consists of the following: December 31, 2016 January 2, 2016 Revolving facility at variable interest rates (2.05% at January 2, 2016) due December 5, 2018 $ — $ 80,000 Term loan at variable interest rates (1.69% at January 2, 2016) — 80,000 5.75% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $1,994 and $2,577 at December 31, 2016 and January 2, 2016, respectively) due May 1, 2020 298,006 297,423 4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $1,384 and $1,660 at December 31, 2016 and January 2, 2016, respectively) due January 15, 2022 298,616 298,340 4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $3,673 and $4,179 at December 31, 2016 and January 2, 2016) due December 1, 2023 446,327 445,821 Other 306 5,311 1,043,255 1,206,895 Less: Current portion of long-term debt (306 ) (598 ) Long-term debt, excluding current portion $ 1,042,949 $ 1,206,297 Adoption of new accounting pronouncement The Company adopted ASU 2015-3 and ASU 2015-15 effective the beginning of fiscal 2016. ASU 2015-3 simplifies the presentation of debt issuance costs by requiring such costs be presented as a deduction from the corresponding debt liability. ASU 2015-15 clarifies that entities may continue to defer and present debt issuance costs associated with a line-of-credit as an asset and subsequently amortize the deferred costs ratably over the term of the arrangement. The adoption of these ASU's has been retrospectively applied and resulted in a reclassification of $6,864 of debt issuance costs from Other assets, net to Long-term debt as of January 2, 2016. Bank Debt As of December 31, 2016 the Company had a credit agreement (the "2013 Credit Agreement") which provided a $1,000,000 unsecured revolving credit facility with Advance Stores, as Borrower, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent. The revolving credit facility also provided for the issuance of letters of credit with a sub-limit of $300,000 and swingline loans in an amount not to exceed $50,000 . The 2013 credit agreement also provided a $700,000 unsecured term loan which was repaid in full as of December 31, 2016 . The Company could request, subject to agreement by one or more lenders, that the total revolving commitment be increased by an amount not to exceed $250,000 by those respective lenders (up to a total commitment of $1,250,000 ) during the term of the 2013 Credit Agreement. Voluntary prepayments and voluntary reductions of the revolving balance were permitted in whole or in part, at the Company’s option, in minimum principal amounts as specified in the 2013 Credit Agreement. Under the terms of the 2013 Credit Agreement, the revolving credit facility terminates in December 2018. Subsequent to December 31, 2016, the Company completed the refinancing of its revolving credit facility as described further below. As of December 31, 2016 , the Company had no outstanding borrowings under the revolver. As of December 31, 2016 , the Company had letters of credit outstanding of $100,719 , which reduced the availability under the revolver to $899,281 . The letters of credit have a term of one year or less and primarily serve as collateral for the Company’s self-insurance policies. The interest rate on borrowings under the revolving credit facility was based, at the Company’s option, on adjusted LIBOR, plus a margin, or an alternate base rate, plus a margin. A facility fee was charged on the total amount of the revolving credit facility, payable in arrears. The facility fee rate as of December 31, 2016 was 0.15% per annum. Under the terms of the 2013 Credit Agreement, the interest rate and facility fee were subject to change based on the Company’s credit rating. The 2013 Credit Agreement contained customary covenants restricting the ability of: (a) subsidiaries of Advance Stores to, among other things, create, incur or assume additional debt: (b) Advance Stores and its subsidiaries to, among other things, (i) incur liens, (ii) make loans and investments, (iii) guarantee obligations, and (iv) change the nature of its business conducted by itself and its subsidiaries; (c) Advance, Advance Stores and their subsidiaries to, among other things (i) engage in certain mergers, acquisitions, asset sales and liquidations, (ii) enter into certain hedging arrangements, (iii) enter into restrictive agreements limiting its ability to incur liens on any of its property or assets, pay distributions, repay loans, or guarantee indebtedness of its subsidiaries and (iv) engage in sale-leaseback transactions; and (d) Advance, among other things, to change its holding company status. Advance and Advance Stores were required to comply with financial covenants with respect to a maximum leverage ratio and a minimum consolidated coverage ratio. The 2013 Credit Agreement also provided for customary events of default, including non-payment defaults, covenant defaults and cross-defaults to Advance Stores’ other material indebtedness. The Company was in compliance with its covenants with respect to the 2013 Credit Agreement as of December 31, 2016 . Senior Unsecured Notes The Company's 4.50% senior unsecured notes were issued in December 2013 at 99.69% of the principal amount of $450,000 and are due December 1, 2023 (the “2023 Notes”). The 2023 Notes bear interest at a rate of 4.50% per year payable semi-annually in arrears on June 1 and December 1 of each year. The Company's 4.50% senior unsecured notes were issued in January 2012 at 99.968% of the principal amount of $300,000 and are due January 15, 2022 (the “2022 Notes”). The 2022 Notes bear interest at a rate of 4.50% per year payable semi-annually in arrears on January 15 and July 15 of each year. The Company's 5.75% senior unsecured notes were issued in April 2010 at 99.587% of the principal amount of $300,000 and are due May 1, 2020 (the “2020 Notes” or collectively with the 2023 Notes and the 2022 Notes, “the Notes”). The 2020 Notes bear interest at a rate of 5.75% per year payable semi-annually in arrears on May 1 and November 1 of each year. Advance served as the issuer of the Notes with certain of Advance’s domestic subsidiaries currently serving as subsidiary guarantors. The terms of the Notes are governed by an indenture (as amended, supplemented, waived or otherwise modified, the “Indenture”) among the Company, the subsidiary guarantors from time to time party thereto and Wells Fargo Bank, National Association, as Trustee. The Company may redeem some or all of the Notes at any time or from time to time, at the redemption price described in the Indenture. In addition, in the event of a Change of Control Triggering Event (as defined in the Indenture for the Notes), the Company will be required to offer to repurchase the Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase date. The Notes are currently fully and unconditionally guaranteed, jointly and severally, on an unsubordinated and unsecured basis by each of the subsidiary guarantors. The Company will be permitted to release guarantees without the consent of holders of the Notes under the circumstances described in the Indenture: (i) upon the release of the guarantee of the Company’s other debt that resulted in the affected subsidiary becoming a guarantor of this debt; (ii) upon the sale or other disposition of all or substantially all of the stock or assets of the subsidiary guarantor; or (iii) upon the Company’s exercise of its legal or covenant defeasance option. The Indenture contains customary provisions for events of default including for: (i) failure to pay principal or interest when due and payable; (ii) failure to comply with covenants or agreements in the Indenture or the Notes and failure to cure or obtain a waiver of such default upon notice; (iii) a default under any debt for money borrowed by the Company or any of its subsidiaries that results in acceleration of the maturity of such debt, or failure to pay any such debt within any applicable grace period after final stated maturity, in an aggregate amount greater than $25,000 without such debt having been discharged or acceleration having been rescinded or annulled within 10 days after receipt by the Company of notice of the default by the Trustee or holders of not less than 25% in aggregate principal amount of the Notes then outstanding; and (iv) events of bankruptcy, insolvency or reorganization affecting the Company and certain of its subsidiaries. In the case of an event of default, the principal amount of the Notes plus accrued and unpaid interest may be accelerated. The Indenture also contains covenants limiting the ability of the Company and its subsidiaries to incur debt secured by liens and to enter into sale and lease-back transactions. Future Payments As of December 31, 2016 , the aggregate future annual maturities of long-term debt instruments are as follows: Fiscal Year Amount 2017 $ 306 2018 — 2019 — 2020 300,000 2021 — Thereafter 750,000 $ 1,050,306 Debt Guarantees The Company is a guarantor of loans made by banks to various independently-owned Carquest branded stores that are customers of the Company ("Independents") totaling $26,332 as of December 31, 2016 . The Company has concluded that some of these guarantees meet the definition of a variable interest in a variable interest entity. However, the Company does not have the power to direct the activities that most significantly affect the economic performance of the Independents and therefore is not the primary beneficiary of these stores. Upon entering into a relationship with certain Independents, the Company guaranteed the debt of those stores to aid in the procurement of business loans. These loans are collateralized by security agreements on merchandise inventory and other assets of the borrowers. The approximate value of the inventory collateralized in these agreements is $70,074 as of December 31, 2016 . The Company believes that the likelihood of performance under these guarantees is remote, and any fair value attributable to these guarantees would be very minimal. Subsequent Event On January 31, 2017, the Company entered into a new credit agreement which provides a $1,000,000 unsecured revolving credit facility (the “2017 Credit Agreement”) with Advance Stores, as Borrower, the lenders party thereto, and Bank of America, N.A., as the administrative agent. This new revolver under the 2017 Credit Agreement replaced the revolver under the 2013 Credit Agreement. The new revolver provides for the issuance of letters of credit with a sublimit of $200,000 . The Company may request that the total revolving commitment be increased by an amount not exceeding $250,000 during the term of the 2017 Credit Agreement. Voluntary prepayments and voluntary reductions of the revolving loan balance, if any, are permitted in whole or in part, at the Company’s option, in minimum principal amounts as specified in the 2017 Credit Agreement. The interest rates on outstanding amounts, if any, on the revolving facility under the 2017 Credit Agreement will be based, at the Company’s option, on an adjusted LIBOR, plus a margin, or an alternate base rate, plus a margin. After an initial interest period, the Company may elect to convert a particular borrowing to a different type. The initial margins per annum for the revolving loan are, 1.10% for the adjusted LIBOR and 0.10% for alternate base rate borrowings. A facility fee of 0.15% per annum will be charged on the total revolving facility commitment, payable quarterly in arrears. Under the terms of the 2017 Credit Agreement, the interest rate spread, facility fee and commitment fee will be based on the Company’s credit rating. The revolving facility terminates in January 2022; however, the Company may request one or two one-year extensions of the termination date prior to the first or second anniversary of the Closing Date. The 2017 Credit Agreement contains customary covenants restricting the ability of: (a) Advance Stores and its subsidiaries to, among other things, (i) create, incur or assume additional debt (only with respect to subsidiaries of Advance Stores), (ii) incur liens, (iii) guarantee obligations, and (iv) change the nature of its business conducted by itself and its subsidiaries; (b) the Company, Advance Stores and their subsidiaries to, among other things (i) enter into certain hedging arrangements, (ii) enter into restrictive agreements limiting their ability to incur liens on any of their property or assets, pay distributions, repay loans, or guarantee indebtedness of their subsidiaries; and (c) the Company, among other things, to change the holding company status of the Company. Advance Stores is required to comply with financial covenants with respect to a maximum leverage ratio and a minimum coverage ratio. The 2017 Credit Agreement also provides for customary events of default, including non-payment defaults, covenant defaults and cross-defaults of Advance Stores’ other material indebtedness. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements: The Company’s financial assets and liabilities measured at fair value are grouped in three levels. The levels prioritize the inputs used to measure the fair value of these assets or liabilities. These levels are: • Level 1 – Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement date. • Level 2 – Inputs other than quoted prices that are observable for assets and liabilities at the measurement date, either directly or indirectly. These inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are less active, and inputs other than quoted prices that are observable for the asset or liability or corroborated by other observable market data. • Level 3 – Unobservable inputs for assets or liabilities that are not able to be corroborated by observable market data and reflect the use of a reporting entity’s own assumptions. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The fair value hierarchy requires the use of observable market data when available. In instances where inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been categorized based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company had no significant assets or liabilities that were measured at fair value on a recurring basis during 2016 or 2015 . Non-Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). During 2016 and 2015 , the Company recorded impairment charges of $2,759 and $11,017 , respectively, on various store and corporate assets. The remaining fair value of these assets following impairment was not significant. Fair Value of Financial Assets and Liabilities The carrying amount of the Company’s cash and cash equivalents, accounts receivable, bank overdrafts, accounts payable, accrued expenses and the current portion of long term debt approximate their fair values due to the relatively short term nature of these instruments. The fair value of the Company’s senior unsecured notes was determined using Level 2 inputs based on quoted market prices, and the Company believes that the carrying value of its other long-term debt and certain long-term liabilities approximate fair value. The carrying value and fair value of the Company's long-term debt as of December 31, 2016 and January 2, 2016 , respectively, are as follows: December 31, January 2, Carrying Value $ 1,042,949 $ 1,206,297 Fair Value $ 1,118,000 $ 1,262,000 The adoption of ASU 2015-3 resulted in a reclassification of $6,864 of debt issuance costs from Other assets, net to Long-term debt decreasing the carrying value as of January 2, 2016. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment: Property and equipment consists of the following: Original December 31, January 2, Land and land improvements 0 - 10 years $ 444,262 $ 441,048 Buildings 30 - 40 years 471,740 468,237 Building and leasehold improvements 3 - 30 years 451,979 418,352 Furniture, fixtures and equipment 3 - 20 years 1,583,096 1,464,791 Vehicles 2 - 13 years 35,133 25,060 Construction in progress 120,778 106,855 3,106,988 2,924,343 Less - Accumulated depreciation (1,660,648 ) (1,489,766 ) Property and equipment, net $ 1,446,340 $ 1,434,577 Depreciation expense was $215,981 , $223,728 and $235,040 for 2016 , 2015 and 2014 , respectively. The Company capitalized $13,035 , $13,529 and $11,436 incurred for the development of internal use computer software during 2016 , 2015 and 2014 , respectively. These costs are included in the furniture, fixtures and equipment category above and are depreciated on the straight-line method over three to ten years . |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses: Accrued expenses consist of the following: December 31, January 2, Payroll and related benefits $ 97,496 $ 99,072 Taxes payable 121,860 96,098 Self-insurance reserves 58,743 57,829 Warranty reserves 47,243 44,479 Capital expenditures 21,176 44,038 Other 207,879 211,647 Total accrued expenses $ 554,397 $ 553,163 The following table presents changes in the Company’s warranty reserves: December 31, January 2, January 3, Warranty reserves, beginning of period $ 44,479 $ 47,972 $ 39,512 Reserves acquired with GPI — — 4,490 Additions to warranty reserves 46,903 44,367 52,306 Reserves utilized (44,139 ) (47,860 ) (48,336 ) Warranty reserves, end of period $ 47,243 $ 44,479 $ 47,972 |
Stock Repurchases
Stock Repurchases | 12 Months Ended |
Dec. 31, 2016 | |
Stock Repurchases: [Abstract] | |
Stock Repurchases | Stock Repurchases: The Company’s stock repurchase program allows it to repurchase its common stock on the open market or in privately negotiated transactions from time to time in accordance with the requirements of the SEC. The Company’s $500,000 stock repurchase program in place as of December 31, 2016 was authorized by its Board of Directors on May 14, 2012. During 2016 and 2015 , the Company repurchased no shares of its common stock under its stock repurchase program. The Company had $415,092 remaining under its stock repurchase program as of December 31, 2016 . The Company repurchased 116 shares of its common stock at an aggregate cost of $18,393 , or an average price of $158.84 per share, in connection with the net settlement of shares issued as a result of the vesting of restricted stock and restricted stock units during 2016 . The Company repurchased 42 shares of its common stock at an aggregate cost of $6,665 , or an average price of $156.98 per share, in connection with the net settlement of shares issued as a result of the vesting of restricted stock and restricted stock units during 2015 . |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share: Certain of the Company’s shares granted to Team Members in the form of restricted stock and restricted stock units are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. For 2016 , 2015 and 2014 , earnings of $1,945 , $1,653 and $1,555 , respectively, were allocated to the participating securities for the purpose of computing earnings per share. Diluted earnings per share are calculated by including the effect of dilutive securities. Share-based awards to purchase approximately 19 , 1 and 13 shares of common stock that had an exercise price in excess of the average market price of the common stock during 2016 , 2015 and 2014 , respectively, were not included in the calculation of diluted earnings per share because they were anti-dilutive. The following table illustrates the computation of basic and diluted earnings per share for 2016 , 2015 and 2014 , respectively: 2016 2015 2014 Numerator Net income applicable to common shares $ 459,622 $ 473,398 $ 493,825 Participating securities’ share in earnings (1,945 ) (1,653 ) (1,555 ) Net income applicable to common shares $ 457,677 $ 471,745 $ 492,270 Denominator Basic weighted average common shares 73,562 73,190 72,932 Dilutive impact of share-based awards 294 543 482 Diluted weighted average common shares 73,856 73,733 73,414 Basic earnings per common share Net income applicable to common stockholders $ 6.22 $ 6.45 $ 6.75 Diluted earnings per common share Net income applicable to common stockholders $ 6.20 $ 6.40 $ 6.71 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: Provision for Income Taxes Provision for income taxes for 2016 , 2015 and 2014 consists of the following: Current Deferred Total 2016 Federal $ 209,499 $ 17,989 $ 227,488 State 29,345 1,366 30,711 Foreign 20,156 858 21,014 $ 259,000 $ 20,213 $ 279,213 2015 Federal $ 242,801 $ (6,564 ) $ 236,237 State 33,023 (1,797 ) 31,226 Foreign 12,885 (858 ) 12,027 $ 288,709 $ (9,219 ) $ 279,490 2014 Federal $ 204,743 $ 45,389 $ 250,132 State 19,359 4,830 24,189 Foreign 14,999 (1,751 ) 13,248 $ 239,101 $ 48,468 $ 287,569 The provision for income taxes differed from the amount computed by applying the federal statutory income tax rate due to: December 31, 2016 January 2, 2016 January 3, 2015 Income before provision for income taxes at statutory U.S. federal income tax rate (35%) $ 258,592 $ 263,511 $ 273,488 State income taxes, net of federal income tax benefit 19,962 20,297 15,723 Other, net 659 (4,318 ) (1,642 ) $ 279,213 $ 279,490 $ 287,569 Deferred Income Tax Assets (Liabilities) Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and for income tax reporting purposes. Net deferred income tax balances are comprised of the following: December 31, January 2, Deferred income tax assets $ 164,858 $ 171,571 Valuation allowance (2,437 ) (2,861 ) Deferred income tax liabilities (616,703 ) (602,635 ) Net deferred income tax liabilities $ (454,282 ) $ (433,925 ) As of December 31, 2016 , the Company had no deferred income tax assets related to federal net operating losses ("NOL"). As of January 2, 2016 , the Company had deferred income tax assets of $386 related to federal NOLs of $1,103 . As of December 31, 2016 and January 2, 2016 the Company had deferred income tax assets of $5,093 and $5,521 related to state NOLs of $153,011 and $145,809 , respectively. These NOLs may be used to reduce future taxable income and expire periodically through Fiscal 2036. Due to uncertainties related to the realization of certain deferred tax assets for NOLs in certain jurisdictions, the Company recorded a valuation allowance of $2,437 and $2,861 as of December 31, 2016 and January 2, 2016 , respectively. The amount of deferred income tax assets realizable, however, could change in the future if projections of future taxable income change. As of December 31, 2016 and January 2, 2016 , the Company had cumulative net deferred income tax liabilities of $454,282 and $433,925 , respectively. The Company has not recorded deferred taxes when earnings from foreign operations are considered to be indefinitely invested outside of the U.S. These accumulated net earnings relate to certain ongoing operations for multiple years and were approximately $130 and $114 as of December 31, 2016 and January 2, 2016 , respectively. It is not practicable to determine the income tax liability that would be payable if such earnings were repatriated. Temporary differences which give rise to significant deferred income tax assets (liabilities) are as follows: December 31, January 2, Deferred income tax assets (liabilities): Property and equipment $ (168,906 ) $ (171,378 ) Inventory valuation differences (222,301 ) (190,756 ) Accrued expenses not currently deductible for tax 63,992 67,725 Share-based compensation 11,752 20,902 Accrued medical and workers compensation 46,116 44,152 Net operating loss carryforwards 5,093 5,907 Straight-line rent 31,631 26,626 Intangible assets (225,496 ) (240,501 ) Other, net 3,837 3,398 Total deferred income tax assets (liabilities) $ (454,282 ) $ (433,925 ) Unrecognized Tax Benefits The following table lists each category and summarizes the activity of the Company’s gross unrecognized tax benefits for the fiscal years ended December 31, 2016 , January 2, 2016 and January 3, 2015 : December 31, January 2, January 3, Unrecognized tax benefits, beginning of period $ 13,841 $ 14,033 $ 18,458 Increases related to prior period tax positions 8,274 412 — Decreases related to prior period tax positions (1,600 ) (2,120 ) (4,841 ) Increases related to current period tax positions 2,105 3,137 4,329 Settlements (6,894 ) (582 ) (2,345 ) Expiration of statute of limitations (1,780 ) (1,039 ) (1,568 ) Unrecognized tax benefits, end of period $ 13,946 $ 13,841 $ 14,033 As of December 31, 2016 , January 2, 2016 and January 3, 2015 , the entire amount of unrecognized tax benefits, if recognized, would reduce the Company’s annual effective tax rate. The Company provides for potential interest and penalties associated with uncertain tax positions as a part of income tax expense. During 2016 , the Company recorded potential interest and penalties of $1,947 related to uncertain tax positions. During 2015 , the Company recorded potential interest and penalties of $149 related to uncertain tax positions. During 2014 , the Company recognized a benefit from potential interest and penalties of $3,684 . As of December 31, 2016 , the Company had recorded a liability for potential interest and penalties of $2,658 and $155 , respectively. As of January 2, 2016 , the Company had recorded a liability for potential interest and penalties of $1,815 and $134 , respectively. The Company has not provided for any penalties associated with tax contingencies unless considered probable of assessment. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. During the next 12 months, it is possible the Company could conclude on approximately $3,000 to $5,000 of the contingencies associated with unrecognized tax uncertainties due mainly to the conclusion of audits and the expiration of statutes of limitations. The majority of these resolutions would be achieved through the completion of current income tax examinations. The Company files a U.S. federal income tax return and income tax returns in various states and foreign jurisdictions. The U.S. Internal Revenue Service has completed exams of the U.S. federal income tax returns for years 2012 and prior. With few exceptions, the Company is no longer subject to state and local or non-U.S. income tax examinations by tax authorities for years before 2012. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments: Initial terms for facility leases are typically 10 to 15 years, with renewal options at five year intervals, and may include rent escalation clauses. As of December 31, 2016 , future minimum lease payments due under non-cancelable operating leases with lease terms extending through the year 2059 are as follows: Fiscal Year Amount 2017 $ 472,723 2018 444,775 2019 406,671 2020 358,497 2021 296,651 Thereafter 1,181,760 $ 3,161,077 The Company anticipates its future minimum lease payments will be partially off-set by future minimum sub-lease income. As of December 31, 2016 future minimum sub-lease income to be received under non-cancelable operating leases is $18,789 . Net Rent Expense Net rent expense for 2016 , 2015 and 2014 was as follows: December 31, 2016 January 2, 2016 January 3, 2015 Minimum facility rentals $ 473,156 $ 471,061 $ 463,345 Contingency facility rentals 440 303 488 Equipment rentals 13,165 11,632 8,230 Vehicle rentals 60,983 61,147 53,300 547,744 544,143 525,363 Less: Sub-lease income (7,379 ) (7,569 ) (9,966 ) $ 540,365 $ 536,574 $ 515,397 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies: In the case of all known contingencies, the Company accrues for an obligation, including estimated legal costs, when it is probable and the amount is reasonably estimable. As facts concerning contingencies become known to the Company, the Company reassesses its position with respect to accrued liabilities and other potential exposures. Estimates that are particularly sensitive to future change include legal matters, which are subject to change as events evolve and as additional information becomes available during the administrative and litigation process. The Company’s Western Auto subsidiary, together with other defendants including, but not limited to, automobile manufacturers, automotive parts manufacturers and other retailers, has been named as a defendant in lawsuits alleging injury as a result of exposure to asbestos-containing products. The Company and some of its other subsidiaries also have been named as a defendant in many asbestos-related lawsuits. The automotive products at issue in these lawsuits are primarily brake parts. The plaintiffs have alleged that these products contained asbestos and were manufactured, distributed and/or sold by the various defendants. Many of the cases pending against the Company or its subsidiaries are in the early stages of litigation. The damages claimed against the defendants in some of these proceedings are substantial. Additionally, many of the suppliers and manufacturers of asbestos and asbestos-containing products have dissolved or declared bankruptcy, which will limit plaintiffs’ ability to recover monetary damages from those entities. Although the Company and its subsidiaries diligently defend against these claims, the Company may enter into discussions regarding settlement of these and other lawsuits, and may enter into settlement agreements, if it believes settlement is in the best interests of the Company’s shareholders. The Company believes that many of these claims are at least partially covered by insurance. Based on discovery to date, the Company does not believe the cases currently pending will have a material adverse effect on the Company’s operating results, financial position or liquidity. However, if the Company and/or a subsidiary were to incur an adverse verdict in one or more of these claims and was ordered to pay substantial damages that were not covered by insurance, these claims could have a material adverse effect on its operating results, financial position and liquidity. Historically, our asbestos claims have been inconsistent in fact patterns alleged and number and have been immaterial. Furthermore, the outcome of such legal matters is uncertain and the Company's liability, if any, could vary widely. As a result, we are unable to estimate a possible range of loss with respect to unasserted asbestos claims that may be filed against the Company or any subsidiary in the future. If the number of claims filed against the Company or any of its subsidiaries alleging injury as a result of exposure to asbestos-containing products increases substantially, the costs associated with concluding these claims, including damages resulting from any adverse verdicts, could have a material adverse effect on its operating results, financial position or liquidity in future periods. The Company is involved in various types of legal proceedings related to employment or arising from claims of discrimination as a result of claims by current and former Team Members or others. The damages claimed against the Company in some of these proceedings are substantial. Because of the uncertainty of the outcome of such legal matters and because the Company’s liability, if any, could vary widely, including the size of any damages awarded if plaintiffs are successful in litigation or any negotiated settlement, the Company cannot reasonably estimate the possible loss or range of loss which may arise. The Company is also involved in various other claims and legal proceedings arising in the normal course of business. Although the final outcome of these legal matters cannot be determined, based on the facts presently known, it is management’s opinion that the final outcome of such claims and lawsuits will not have a material adverse effect on the Company’s financial position, results of operations or liquidity. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |
Benefit Plans | Benefit Plans: 401(k) Plan The Company maintains a defined contribution benefit plan, which covers substantially all Team Members after one year of service and who have attained the age of 21. The plan allows for Team Member salary deferrals, which are matched at the Company’s discretion. During 2014, GPI also maintained its existing defined contribution plan which allowed for GPI Team Member salary deferrals and discretionary fixed and profit sharing contributions by the Company. The GPI plan was merged into the Advance Auto Parts plan at the beginning of fiscal 2015. Company contributions to these plans were $13,925 , $14,626 and $15,208 in 2016 , 2015 and 2014 , respectively. Deferred Compensation The Company maintains a non-qualified deferred compensation plan for certain Team Members. This plan provides for a minimum and maximum deferral percentage of the Team Member’s base salary and bonus, as determined by the Retirement Plan Committee. The Company establishes and maintains a deferred compensation liability for this plan. As of December 31, 2016 and January 2, 2016 , these liabilities were $17,309 and $17,472 , respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation: Overview The Company grants share-based compensation awards to its Team Members and members of its Board of Directors as provided for under the Company’s 2014 Long-Term Incentive Plan, or 2014 LTIP, which was approved by the Company's shareholders on May 14, 2014. Prior to May 14, 2014, the Company granted share-based compensation awards under the 2004 Long-Term Incentive Plan, which expired following the approval of the 2014 LTIP. The Company currently grants share-based compensation in the form of stock appreciation rights (“SARs”), restricted stock units ("RSUs") and deferred stock units (“DSUs”). All remaining shares of restricted stock, which were granted prior to the transition to RSUs in 2012, vested during 2015 . At December 31, 2016 , there were 5,045 shares of common stock available for future issuance under the 2014 Plan based on management’s current estimate of the probable vesting outcome for performance-based awards. The Company issues new shares of common stock upon exercise of stock options and SARs. Shares forfeited and shares withheld for payment of taxes due become available for reissuance and are included in availability. Availability also includes shares which became available for reissuance in connection with the exercise of SARs. General Terms of Awards The Company’s grants generally include both a time-based service portion and a performance-based portion, which collectively represent the target award. In 2016 , the Company moved its annual stock award date from December of the current year to March of the following year. Awards granted during 2016 primarily consisted of an off-cycle award to the Company's new CEO hired in April 2016 and a broad-based incentive award to store and field team members. Time-Vested Awards The Company's outstanding time-vested awards consist of SARs and RSUs. The SARs generally vest over a three-year period in equal annual installments beginning on the first anniversary of the grant date. The SARs granted are non-qualified, terminate on the seventh anniversary of the grant date and contain no post-vesting restrictions other than normal trading black-out periods prescribed by the Company’s corporate governance policies. The RSUs generally vest over a three-year period in equal annual installments beginning on the first anniversary of the grant date. During the vesting period, holders of RSUs are entitled to receive dividend equivalents, but are not entitled to voting rights. Performance-Based Awards The Company's outstanding performance-based awards consist of SARs and RSUs. Performance awards generally may vest following a three-year period subject to the Company’s achievement of certain financial goals as specified in the grant agreements. Depending on the Company’s results during the three-year performance period, the actual number of awards vesting at the end of the period generally ranges from 0% to 200% of the performance award. The performance RSUs generally do not have dividend equivalent rights and do not have voting rights until the shares are earned and issued following the applicable performance period. During 2016, the Company also granted broad-based incentive awards to store and field team members that will vest over a one-year service period based on the achievement of performance goals during 2016. Share-Based Compensation Expense & Cash Flows Total share-based compensation expense and cash received included in the Company’s consolidated statements of operations and consolidated statements of cash flows, including the related income tax benefits, for 2016 , 2015 and 2014 are as follows: 2016 2015 2014 Share-based compensation expense $ 20,452 $ 36,929 $ 21,705 Deferred income tax benefit 7,530 13,596 8,013 Proceeds from the issuance of common stock, primarily for employee stock purchase plan 4,532 5,174 6,578 Tax withholdings related to the exercise of stock appreciation rights (19,558 ) (13,112 ) (7,102 ) Excess tax benefit from share-based compensation 22,429 13,002 10,487 As of December 31, 2016 , there was $37,166 of unrecognized compensation expense related to all share-based awards that was expected to be recognized over a weighted average period of 1.6 years . Expense related to the issuance of share-based compensation is included in SG&A in the accompanying consolidated statements of operations. Expense is recognized net of forfeitures, which are estimated based on historical experience. The Company modified selected awards for certain terminated employees during 2015 , such that the employees would vest in awards that would have otherwise been forfeited. Incremental expense recognized during 2015 associated with these modifications was $6,633 . Four of these modified awards were cash settled in March 2016 and therefore were accounted for as liability awards. The value of the liability awards was insignificant as of January 2, 2016. The fair value of each SAR granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: Black-Scholes Option Valuation Assumptions 2016 2015 2014 Risk-free interest rate (1) 1.2 % 1.3 % 1.2 % Expected dividend yield 0.2 % 0.1 % 0.2 % Expected stock price volatility (2) 27.7 % 27.3 % 27 % Expected life of awards (in months) (3) 55 44 49 (1) The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate having term consistent with the expected life of the award. (2) Expected volatility is determined using a blend of historical and implied volatility. (3) The expected life of the Company's awards represents the estimated period of time until exercise and is based on historical experience of previously granted awards. Time-Based Share Awards Stock Options The Company had no outstanding stock options during 2016 or 2015 . The aggregate intrinsic value, defined as the amount by which the market price of the stock on the date of exercise exceeded the exercise price, of stock options exercised in 2014 was $3,747 . Stock Appreciation Rights The following table summarizes the time-vested SARs activity for 2016 : Number of Awards Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 2, 2016 561 $ 67.51 Granted 69 160.94 Exercised (353 ) 65.17 Forfeited (2 ) 56.93 Outstanding at December 31, 2016 275 $ 93.89 3.15 $ 20,713 Vested and expected to vest 253 $ 87.84 2.87 $ 20,526 Outstanding and exercisable 207 $ 71.57 2.11 $ 20,150 The weighted average fair value of time-vested SARs granted during 2016 was $43.64 per share. No time-vested SARs were granted in 2015 or 2014 . The aggregate intrinsic value reflected in the table above and in the table below for performance-based SARs is based on the Company’s closing stock price of $169.12 as of the last trading day of Fiscal 2016 . The aggregate intrinsic value of SARs exercised during 2016 , 2015 and 2014 was $31,450 , $26,060 and $18,975 , respectively. Restricted Stock Units and Restricted Stock The following table summarizes the RSU activity for the fiscal year ended December 31, 2016 : Number of Awards Weighted-Average Grant Date Fair Value Nonvested at January 2, 2016 270 $ 142.65 Granted 88 155.51 Vested (119 ) 135.87 Forfeited (28 ) 144.27 Nonvested at December 31, 2016 211 $ 151.70 The fair value of each RSU and restricted stock award is determined based on the market price of the Company’s common stock on the date of grant. The weighted average fair value of RSUs granted during 2016 , 2015 and 2014 was $155.51 , $153.61 and $139.43 per share, respectively. The total grant date fair value of RSUs and restricted shares vested during 2016 , 2015 and 2014 was $16,089 , $15,268 and $8,293 , respectively. Performance-Based Awards The number of performance-based awards outstanding is reflected in the following tables based on the number of awards that the Company believed were probable of vesting at December 31, 2016 . Performance-based SARs and performance-based RSU's granted during 2016 are presented as grants in the table at their respective target levels. The change in units based on performance represents the change in the number granted awards expected to vest based on the Company's updated probability assessment as of December 31, 2016 . Compensation expense for performance-based awards of $802 , $14,659 , and $6,161 in 2016 , 2015 and 2014 , respectively, was determined based on management’s estimate of the probable vesting outcome. Performance-Based SARs The following table summarizes the performance-based SARs activity for 2016 : Number of Awards Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 2, 2016 753 $ 118.89 Granted 88 157.15 Change in units based on performance (588 ) 142.01 Exercised (123 ) 68.07 Forfeited (16 ) 112.96 Outstanding at December 31, 2016 114 $ 86.95 2.89 $ 9,355 Vested and expected to vest 113 $ 86.82 2.89 $ 9,323 Outstanding and exercisable 77 $ 75.28 2.76 $ 7,266 The weighted average fair value of performance-based SARs granted during 2016 , 2015 and 2014 was $36.78 , $43.38 and $32.41 per share, respectively. The aggregate intrinsic value of performance-based SARs exercised during 2016 , 2015 and 2014 was $11,556 , $8,475 and $3,814 , respectively. As of December 31, 2016 , the maximum potential payout under the Company’s currently outstanding performance-based SARs was 1,295 units. Performance-Based Restricted Stock Units The following table summarizes the performance-based RSUs activity for 2016 : Number of Awards Weighted-Average Grant Date Fair Value Nonvested at January 2, 2016 183 $ 81.81 Granted 427 163.76 Change in units based on performance (288 ) 166.23 Vested (171 ) 78.93 Forfeited (13 ) 81.81 Nonvested at December 31, 2016 138 $ 162.71 The fair value of each performance-based RSU is determined based on the market price of the Company’s common stock on the date of grant. The weighted average fair value of performance-based RSUs granted during 2016 and 2014 was $163.76 and $123.32 per share, respectively. No performance-based RSUs were granted in 2015 . The total grant date fair value of performance-based restricted stock vested during 2016 , 2015 and 2014 was $13,512 , $1,763 and $142 , respectively. As of December 31, 2016 , the maximum potential payout under the Company’s currently outstanding performance-based RSUs was 287 shares. Deferred Stock Units The Company grants share-based awards annually to its Board of Directors in connection with its annual meeting of stockholders. These awards are granted in the form of DSUs as provided for in the Advance Auto Parts, Inc. Deferred Stock Unit Plan for Non-Employee Directors and Selected Executives, or the DSU Plan. Each DSU is equivalent to one share of common stock of the Company and will be distributed in common shares after the director’s service on the Board ends. DSUs granted in 2016 vest over a one year service period, while DSUs granted in 2015 and 2014 were fully vested on the grant date. Additionally, the DSU Plan provides for the deferral of compensation earned in the form of (i) an annual retainer for directors, and (ii) wages for certain highly compensated Team Members of the Company. These DSUs are settled in common stock with the participants at a future date, or over a specified time period, as elected by the participants in accordance with the DSU Plan. The Company granted 9 DSUs in 2016 . The weighted average fair value of DSUs granted during 2016 , 2015 and 2014 was $146.30 , $156.83 , and $122.80 , respectively. The DSUs are awarded at a price equal to the market price of the Company’s underlying stock on the date of the grant. For 2016 , 2015 and 2014 , respectively, the Company recognized $896 , $2,071 , and $862 of share-based compensation expense for these DSU grants. Employee Stock Purchase Plan The Company also offers an employee stock purchase plan (ESPP). Under the ESPP, eligible Team Members may elect salary deferrals to purchase the Company’s common stock at a discount of 10% from its fair market value on the date of purchase. There are annual limitations on the amounts a Team Member may elect of either $25 per Team Member or 10% of compensation, whichever is less. Team Members acquired 30 , 35 and 39 shares under the ESPP in 2016 , 2015 and 2014 , respectively. As of December 31, 2016 , there were 1,034 shares available to be issued under the ESPP. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income Loss | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss): Comprehensive income is computed as net earnings plus certain other items that are recorded directly to stockholders’ equity during the accounting period. In addition to net earnings, comprehensive income also includes unrealized gains and losses on postretirement plan benefits, net of tax and foreign currency translation gains (losses). Accumulated other comprehensive income (loss), net of tax, for 2016 , 2015 and 2014 consisted of the following: Unrealized Gain (Loss) Currency Translation Accumulated Balance, December 28, 2013 $ 3,683 $ — $ 3,683 Fiscal 2014 activity (752 ) (15,268 ) (16,020 ) Balance, January 3, 2015 $ 2,931 $ (15,268 ) $ (12,337 ) Fiscal 2015 activity (445 ) (31,277 ) (31,722 ) Balance, January 2, 2016 $ 2,486 $ (46,545 ) $ (44,059 ) Fiscal 2016 activity (534 ) 4,892 4,358 Balance, December 31, 2016 $ 1,952 $ (41,653 ) $ (39,701 ) |
Segment and Related Information
Segment and Related Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Related Information | Segment and Related Information: As of December 31, 2016 , the Company's operations are comprised of 5,062 stores and 127 branches, which operate in the United States, Canada, Puerto Rico and the U.S. Virgin Islands primarily under the trade names “Advance Auto Parts,” "Carquest," "Autopart International" and "Worldpac." These locations offer a broad selection of brand name, OEM and proprietary automotive replacement parts, accessories, and maintenance items primarily for domestic and imported cars and light trucks. While the mix of Professional and DIY customers varies among the four store brands, all of the locations serve customers through similar distribution channels. The Company is implementing a multi-year plan to fully integrate the Carquest company-operated stores and overall operations into Advance Auto Parts and to eventually integrate the availability of all of the Company's product offerings throughout the entire chain. The Company's Advance Auto Parts operations are currently comprised of three geographic divisions which include the operations of the stores operating under the Advance Auto Parts, Carquest and Autopart International trade names. Each of the Advance Auto Parts geographic divisions, in addition to Worldpac, are individually considered operating segments which are aggregated into one reportable segment. Effective in the second quarter of 2016, the Company realigned its five geographic areas which included the operations of the stores operating under the Advance Auto Parts, Carquest and Autopart International trade names into three geographic divisions. As a result of this realignment the Company has reduced its number of operating segments from six to four. Included in the Company's overall store operations are sales generated from its e-commerce platforms. The Company's e-commerce platforms, primarily consisting of its online websites and Professional ordering platforms, are part of its integrated operating approach of serving its Professional and DIY customers. The Company's online websites allow its DIY customers to pick up merchandise at a conveniently located store location or have their purchases shipped directly to them. The majority of the Company's online DIY sales are picked up at store locations. Through the Company's online ordering platforms, Professional customers can conveniently place orders with a designated store location for delivery to their places of business or pick-up. The following table summarizes financial information for each of the Company’s product groups for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. Certain prior period amounts have been reclassified to conform to current product category classifications. 2016 2015 2014 Percentage of Sales, by Product Group Parts and Batteries 66 % 66 % 66 % Accessories and Chemicals 19 % 19 % 19 % Engine Maintenance 14 % 14 % 14 % Other 1 % 1 % 1 % Total 100 % 100 % 100 % |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements: Certain 100% wholly-owned domestic subsidiaries of Advance, including its Material Subsidiaries (as defined in the 2013 Credit Agreement), serve as guarantors of Advance's senior unsecured notes ("Guarantor Subsidiaries"). The subsidiary guarantees related to Advance's senior unsecured notes are full and unconditional and joint and several, and there are no restrictions on the ability of Advance to obtain funds from its Guarantor Subsidiaries. Certain of Advance's wholly-owned subsidiaries, including all of its foreign subsidiaries, do not serve as guarantors of Advance's senior unsecured notes ("Non-Guarantor Subsidiaries"). The Non-Guarantor Subsidiaries do not qualify as minor as defined by SEC regulations. Accordingly, the Company presents below the condensed consolidating financial information for the Guarantor Subsidiaries and Non-Guarantor Subsidiaries. Investments in subsidiaries of the Company are required to be presented under the equity method, even though all such subsidiaries meet the requirements to be consolidated under GAAP. Set forth below are condensed consolidating financial statements presenting the financial position, results of operations, and cash flows of (i) Advance, (ii) the Guarantor Subsidiaries, (iii) the Non-Guarantor Subsidiaries, and (iv) the eliminations necessary to arrive at consolidated information for the Company. The statement of operations eliminations relate primarily to the sale of inventory from a Non-Guarantor Subsidiary to a Guarantor Subsidiary. The balance sheet eliminations relate primarily to the elimination of intercompany receivables and payables and subsidiary investment accounts. The following tables present condensed consolidating balance sheets as of December 31, 2016 and January 2, 2016 and condensed consolidating statements of operations, comprehensive income and cash flows for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , and should be read in conjunction with the consolidated financial statements herein. Condensed Consolidating Balance Sheets As of December 31, 2016 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 22 $ 78,543 $ 56,635 $ (22 ) $ 135,178 Receivables, net — 619,229 22,023 — 641,252 Inventories, net — 4,126,465 199,403 — 4,325,868 Other current assets — 69,385 1,153 (72 ) 70,466 Total current assets 22 4,893,622 279,214 (94 ) 5,172,764 Property and equipment, net of accumulated depreciation 128 1,436,459 9,753 — 1,446,340 Goodwill — 943,359 47,518 — 990,877 Intangible assets, net — 595,596 45,307 — 640,903 Other assets, net 4,634 63,376 773 (4,634 ) 64,149 Investment in subsidiaries 3,008,856 375,420 — (3,384,276 ) — Intercompany note receivable 1,048,424 — — (1,048,424 ) — Due from intercompany, net — — 316,109 (316,109 ) — $ 4,062,064 $ 8,307,832 $ 698,674 $ (4,753,537 ) $ 8,315,033 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ — $ 306 $ — $ — $ 306 Accounts payable — 2,813,937 272,240 — 3,086,177 Accrued expenses 1,505 526,652 26,312 (72 ) 554,397 Other current liabilities — 32,202 2,986 (22 ) 35,166 Total current liabilities 1,505 3,373,097 301,538 (94 ) 3,676,046 Long-term debt 1,042,949 — — — 1,042,949 Deferred income taxes — 439,283 19,633 (4,634 ) 454,282 Other long-term liabilities — 223,481 2,083 — 225,564 Intercompany note payable — 1,048,424 — (1,048,424 ) — Due to intercompany, net 101,418 214,691 — (316,109 ) — Commitments and contingencies Stockholders' equity 2,916,192 3,008,856 375,420 (3,384,276 ) 2,916,192 $ 4,062,064 $ 8,307,832 $ 698,674 $ (4,753,537 ) $ 8,315,033 Condensed Consolidating Balance Sheets As of January 2, 2016 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 8 $ 63,458 $ 27,324 $ (8 ) $ 90,782 Receivables, net — 568,106 29,682 — 597,788 Inventories, net — 4,009,335 165,433 — 4,174,768 Other current assets 178 78,904 1,376 (3,050 ) 77,408 Total current assets 186 4,719,803 223,815 (3,058 ) 4,940,746 Property and equipment, net of accumulated depreciation 154 1,425,319 9,104 — 1,434,577 Goodwill — 943,319 46,165 — 989,484 Intangible assets, net — 640,583 46,542 — 687,125 Other assets, net 9,500 75,025 745 (9,501 ) 75,769 Investment in subsidiaries 2,523,076 302,495 — (2,825,571 ) — Intercompany note receivable 1,048,161 — — (1,048,161 ) — Due from intercompany, net — — 325,077 (325,077 ) — $ 3,581,077 $ 8,106,544 $ 651,448 $ (4,211,368 ) $ 8,127,701 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ — $ 598 $ — $ — $ 598 Accounts payable 103 2,903,287 300,532 — 3,203,922 Accrued expenses 2,378 529,076 24,759 (3,050 ) 553,163 Other current liabilities — 36,270 3,532 (8 ) 39,794 Total current liabilities 2,481 3,469,231 328,823 (3,058 ) 3,797,477 Long-term debt 1,041,584 164,713 — — 1,206,297 Deferred income taxes — 425,094 18,332 (9,501 ) 433,925 Other long-term liabilities — 227,556 1,798 — 229,354 Intercompany note payable — 1,048,161 — (1,048,161 ) — Due to intercompany, net 76,364 248,713 — (325,077 ) — Commitments and contingencies Stockholders' equity 2,460,648 2,523,076 302,495 (2,825,571 ) 2,460,648 $ 3,581,077 $ 8,106,544 $ 651,448 $ (4,211,368 ) $ 8,127,701 Condensed Consolidating Statements of Operations For Fiscal 2016 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,254,477 $ 556,747 $ (243,545 ) $ 9,567,679 Cost of sales, including purchasing and warehousing costs — 5,171,953 383,356 (243,545 ) 5,311,764 Gross profit — 4,082,524 173,391 — 4,255,915 Selling, general and administrative expenses 28,695 3,402,323 92,287 (54,988 ) 3,468,317 Operating (loss) income (28,695 ) 680,201 81,104 54,988 787,598 Other, net: Interest (expense) income (52,081 ) (7,897 ) 68 — (59,910 ) Other income (expense), net 81,683 (19,558 ) 4,010 (54,988 ) 11,147 Total other, net 29,602 (27,455 ) 4,078 (54,988 ) (48,763 ) Income before provision for income taxes 907 652,746 85,182 — 738,835 Provision for income taxes 1,588 260,155 17,470 — 279,213 (Loss) income before equity in earnings of subsidiaries (681 ) 392,591 67,712 — 459,622 Equity in earnings of subsidiaries 460,303 67,712 — (528,015 ) — Net income $ 459,622 $ 460,303 $ 67,712 $ (528,015 ) $ 459,622 Condensed Consolidating Statements of Operations For Fiscal 2015 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,432,116 $ 593,606 $ (288,704 ) $ 9,737,018 Cost of sales, including purchasing and warehousing costs — 5,172,938 430,012 (288,704 ) 5,314,246 Gross profit — 4,259,178 163,594 — 4,422,772 Selling, general and administrative expenses 24,186 3,536,697 93,852 (57,743 ) 3,596,992 Operating (loss) income (24,186 ) 722,481 69,742 57,743 825,780 Other, net: Interest (expense) income (52,210 ) (13,378 ) 180 — (65,408 ) Other income (expense), net 76,987 (19,699 ) (7,029 ) (57,743 ) (7,484 ) Total other, net 24,777 (33,077 ) (6,849 ) (57,743 ) (72,892 ) Income before provision for income taxes 591 689,404 62,893 — 752,888 Provision for income taxes 1,220 268,571 9,699 — 279,490 (Loss) income before equity in earnings of subsidiaries (629 ) 420,833 53,194 — 473,398 Equity in earnings of subsidiaries 474,027 53,194 — (527,221 ) — Net income $ 473,398 $ 474,027 $ 53,194 $ (527,221 ) $ 473,398 Condensed Consolidating Statements of Operations For Fiscal 2014 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,530,953 $ 527,595 $ (214,687 ) $ 9,843,861 Cost of sales, including purchasing and warehousing costs — 5,231,421 373,514 (214,687 ) 5,390,248 Gross profit — 4,299,532 154,081 — 4,453,613 Selling, general and administrative expenses 14,504 3,541,370 102,370 (56,341 ) 3,601,903 Operating (loss) income (14,504 ) 758,162 51,711 56,341 851,710 Other, net: Interest expense (52,946 ) (20,334 ) (128 ) — (73,408 ) Other income (expense), net 67,470 (9,140 ) 1,103 (56,341 ) 3,092 Total other, net 14,524 (29,474 ) 975 (56,341 ) (70,316 ) Income before provision for income taxes 20 728,688 52,686 — 781,394 Provision for income taxes 296 277,769 9,504 — 287,569 (Loss) income before equity in earnings of subsidiaries (276 ) 450,919 43,182 — 493,825 Equity in earnings of subsidiaries 494,101 43,182 — (537,283 ) — Net income $ 493,825 $ 494,101 $ 43,182 $ (537,283 ) $ 493,825 Condensed Consolidating Statements of Comprehensive Income For Fiscal 2016 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 459,622 $ 460,303 $ 67,712 $ (528,015 ) $ 459,622 Other comprehensive income: Changes in net unrecognized other postretirement benefit costs — (534 ) — — (534 ) Currency translation — — 4,892 — 4,892 Equity in other comprehensive income of subsidiaries 4,358 4,892 — (9,250 ) — Other comprehensive income 4,358 4,358 4,892 (9,250 ) 4,358 Comprehensive income $ 463,980 $ 464,661 $ 72,604 $ (537,265 ) $ 463,980 Condensed Consolidating Statements of Comprehensive Income For Fiscal 2015 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 473,398 $ 474,027 $ 53,194 $ (527,221 ) $ 473,398 Other comprehensive loss: Changes in net unrecognized other postretirement benefit costs — (445 ) — — (445 ) Currency translation adjustments — — (31,277 ) — (31,277 ) Equity in other comprehensive loss of subsidiaries (31,722 ) (31,277 ) — 62,999 — Other comprehensive loss (31,722 ) (31,722 ) (31,277 ) 62,999 (31,722 ) Comprehensive income $ 441,676 $ 442,305 $ 21,917 $ (464,222 ) $ 441,676 Condensed Consolidating Statements of Comprehensive Income For Fiscal 2014 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 493,825 $ 494,101 $ 43,182 $ (537,283 ) $ 493,825 Other comprehensive loss: Changes in net unrecognized other postretirement benefit costs — (752 ) — — (752 ) Currency translation adjustments — — (15,268 ) — (15,268 ) Equity in other comprehensive loss of subsidiaries (16,020 ) (15,268 ) — 31,288 — Other comprehensive loss (16,020 ) (16,020 ) (15,268 ) 31,288 (16,020 ) Comprehensive income $ 477,805 $ 478,081 $ 27,914 $ (505,995 ) $ 477,805 Condensed Consolidating Statements of Cash Flows For Fiscal 2016 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 14 $ 468,751 $ 32,109 $ — $ 500,874 Cash flows from investing activities: Purchases of property and equipment — (257,159 ) (2,400 ) — (259,559 ) Business acquisitions, net of cash acquired — (4,697 ) — — (4,697 ) Proceeds from sales of property and equipment — 2,210 2 — 2,212 Net cash used in investing activities — (259,646 ) (2,398 ) — (262,044 ) Cash flows from financing activities: Increase in bank overdrafts — (4,902 ) (657 ) (14 ) (5,573 ) Borrowings under credit facilities — 799,600 — — 799,600 Payments on credit facilities — (959,600 ) — — (959,600 ) Dividends paid — (17,738 ) — — (17,738 ) Proceeds from the issuance of common stock, primarily exercise of stock options — 4,532 — — 4,532 Tax withholdings related to the exercise of stock appreciation rights — (19,558 ) — — (19,558 ) Excess tax benefit from share-based compensation — 22,429 — — 22,429 Repurchase of common stock — (18,393 ) — — (18,393 ) Other — (390 ) — — (390 ) Net cash used in financing activities — (194,020 ) (657 ) (14 ) (194,691 ) Effect of exchange rate changes on cash — — 257 — 257 Net increase in cash and cash equivalents 14 15,085 29,311 (14 ) 44,396 Cash and cash equivalents , beginning of period 8 63,458 27,324 (8 ) 90,782 Cash and cash equivalents , end of period $ 22 $ 78,543 $ 56,635 $ (22 ) $ 135,178 Condensed Consolidating Statements of Cash Flows For Fiscal 2015 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash (used in) provided by operating activities $ (1 ) $ 696,580 $ (6,937 ) $ — $ 689,642 Cash flows from investing activities: Purchases of property and equipment — (232,591 ) (2,156 ) — (234,747 ) Business acquisitions, net of cash acquired — (18,583 ) (306 ) — (18,889 ) Proceeds from sales of property and equipment — 266 4 — 270 Net cash used in investing activities — (250,908 ) (2,458 ) — (253,366 ) Cash flows from financing activities: Increase in bank overdrafts — (4,529 ) 1,606 1 (2,922 ) Borrowings under credit facilities — 618,300 — — 618,300 Payments on credit facilities — (1,041,700 ) — — (1,041,700 ) Dividends paid — (17,649 ) — — (17,649 ) Proceeds from the issuance of common stock, primarily for employee stock purchase plan — 5,174 — — 5,174 Tax withholdings related to the exercise of stock appreciation rights — (13,112 ) — — (13,112 ) Excess tax benefit from share-based compensation — 13,002 — — 13,002 Repurchase of common stock — (6,665 ) — — (6,665 ) Other — (380 ) — — (380 ) Net cash (used in) provided by financing activities — (447,559 ) 1,606 1 (445,952 ) Effect of exchange rate changes on cash — — (4,213 ) — (4,213 ) Net decrease in cash and cash equivalents (1 ) (1,887 ) (12,002 ) 1 (13,889 ) Cash and cash equivalents , beginning of period 9 65,345 39,326 (9 ) 104,671 Cash and cash equivalents , end of period $ 8 $ 63,458 $ 27,324 $ (8 ) $ 90,782 Condensed Consolidating Statements of Cash Flows For Fiscal 2014 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 666,566 $ 42,425 $ — $ 708,991 Cash flows from investing activities: Purchases of property and equipment — (224,894 ) (3,552 ) — (228,446 ) Business acquisitions, net of cash acquired — (2,059,987 ) (796 ) — (2,060,783 ) Proceeds from sales of property and equipment — 974 18 — 992 Net cash used in investing activities — (2,283,907 ) (4,330 ) — (2,288,237 ) Cash flows from financing activities: Increase in bank overdrafts — 16,228 — (9 ) 16,219 Borrowings under credit facilities — 2,238,200 — — 2,238,200 Payments on credit facilities — (1,654,800 ) — — (1,654,800 ) Dividends paid — (17,580 ) — — (17,580 ) Proceeds from the issuance of common stock, primarily for employee stock purchase plan — 6,578 — — 6,578 Tax withholdings related to the exercise of stock appreciation rights — (7,102 ) — — (7,102 ) Excess tax benefit from share-based compensation — 10,487 — — 10,487 Repurchase of common stock — (5,154 ) — — (5,154 ) Contingent consideration related to previous business acquisition — (10,047 ) — — (10,047 ) Other — (890 ) — — (890 ) Net cash provided by financing activities — 575,920 — (9 ) 575,911 Effect of exchange rate changes on cash — — (4,465 ) — (4,465 ) Net (decrease) increase in cash and cash equivalents — (1,041,421 ) 33,630 (9 ) (1,007,800 ) Cash and cash equivalents , beginning of period 9 1,106,766 5,696 — 1,112,471 Cash and cash equivalents , end of period $ 9 $ 65,345 $ 39,326 $ (9 ) $ 104,671 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (unaudited): The following table summarizes quarterly financial data for Fiscal 2016 and 2015 : 2016 First Second Third Fourth (16 weeks) (12 weeks) (12 weeks) (12 weeks) Net sales $ 2,979,778 $ 2,256,155 $ 2,248,855 $ 2,082,891 Gross profit 1,349,889 1,010,257 988,205 907,564 Net income 158,813 124,600 113,844 62,365 Basic earnings per common share 2.16 1.69 1.54 0.84 Diluted earnings per common share 2.14 1.68 1.53 0.84 2015 First Second Third Fourth (16 weeks) (12 weeks) (12 weeks) (12 weeks) Net sales $ 3,038,233 $ 2,370,037 $ 2,295,203 $ 2,033,545 Gross profit 1,393,924 1,087,289 1,032,387 909,172 Net income 148,112 149,998 120,469 54,819 Basic earnings per common share 2.02 2.04 1.64 0.75 Diluted earnings per common share 2.00 2.03 1.63 0.74 Note: Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not be equal to the per share amount for the year. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | ADVANCE AUTO PARTS, INC. SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (in thousands) Allowance for doubtful accounts receivable: Balance at Beginning of Period Charges to Expenses Deductions Balance at End of Period January 3, 2015 $ 13,295 $ 17,182 $ (14,325 ) (1) $ 16,152 January 2, 2016 16,152 22,067 (12,461 ) (1) 25,758 December 31, 2016 25,758 24,597 (21,191 ) (1) 29,164 (1) Accounts written off during the period. These amounts did not impact the Company’s statement of operations for any year presented. Note : Other valuation and qualifying accounts have not been reported in this schedule because they are either not applicable or because the information has been included elsewhere in this report . |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | Organization and Description of Business Advance Auto Parts, Inc. (“Advance”) conducts all of its operations through its wholly owned subsidiary, Advance Stores Company, Incorporated (“Stores”), and its subsidiaries (collectively, the “Company”), all of which are 100% owned. As of December 31, 2016 , the Company's operations are comprised of 5,062 stores and 127 branches, which operate in the United States, Canada, Puerto Rico and the U.S. Virgin Islands primarily under the trade names “Advance Auto Parts,” "Carquest," "Autopart International" and "Worldpac." In addition, we served approximately 1,250 independently-owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos, the British Virgin Islands and the Pacific Islands as of December 31, 2016 . As further described in Note 3, Acquisitions, the "Carquest" and "Worldpac" brands were acquired on January 2, 2014 as part of the acquisition of General Parts International, Inc. ("GPI"). The Company serves both do-it-for-me, or Professional, and do-it-yourself, or DIY, customers and offers a broad selection of brand name, original equipment manufacturer ("OEM") and proprietary automotive replacement parts, accessories, and maintenance items primarily for domestic and imported cars and light trucks. The Company offers delivery service to its Professional customers’ places of business, including independent garages, service stations and auto dealers, utilizing a fleet of vehicles to deliver product from its 4,501 store and branch locations with delivery service. |
Accounting Period | Accounting Period The Company’s fiscal year ends on the Saturday nearest the end of December. Fiscal years 2016 and 2015 each contained 52 weeks, while fiscal 2014 contained 53 weeks. The additional week of operations for fiscal 2014 was included in the Company's fourth quarter. All references herein for the years 2016 , 2015 and 2014 represent the fiscal years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Advance and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Cash, Cash Equivalents and Bank Overdrafts | Cash, Cash Equivalents and Bank Overdrafts Cash and cash equivalents consist of cash in banks and money market funds with original maturities of three months or less. Included in cash equivalents are credit card and debit card receivables from banks, which generally settle in less than four business days. Credit and debit card receivables included in Cash and cash equivalents as of December 31, 2016 and January 2, 2016 were $26,480 and $37,906 , respectively. Bank overdrafts consist of outstanding checks not yet presented to a bank for settlement, net of cash held in accounts with right of offset. Bank overdrafts of $13,124 and $18,584 are included in Other current liabilities as of December 31, 2016 and January 2, 2016 , respectively. |
Receivables | Receivables Receivables, net consist primarily of receivables from Professional customers and vendors. The Company grants credit to certain Professional customers who meet the Company’s pre-established credit requirements. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s Professional customers to make required payments. The Company considers the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. Concentrations of credit risk with respect to these receivables are limited because the Company’s customer base consists of a large number of small customers, spreading the credit risk across a broad base. The Company also controls this credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures. The Company’s vendor receivables are established as it receives concessions from its vendors through a variety of programs and arrangements, including allowances for new stores and warranties and volume purchase rebates. Amounts receivable from vendors also include amounts due to the Company for changeover merchandise and product returns. The Company regularly reviews vendor receivables for collectibility and assesses the need for a reserve for uncollectible amounts based on an evaluation of the vendors’ financial positions and corresponding abilities to meet financial obligations. The Company’s allowance for doubtful accounts related to vendor receivables is not significant. |
Inventory | Inventory Inventory amounts are stated at the lower of cost or market. The cost of the Company’s merchandise inventory is primarily determined using the last-in, first-out (“LIFO”) method. Under the LIFO method, the Company’s cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs relating to prices paid in 2016 and prior years. |
Vendor Incentives | Vendor Incentives The Company receives incentives in the form of reductions to amounts owed to and/or payments from vendors related to volume rebates and other promotional considerations. Many of these incentives are under long-term agreements in excess of one year, while others are negotiated on an annual basis or less (short-term). Advertising allowances provided as a reimbursement of specific, incremental and identifiable costs incurred to promote a vendor’s products are included as an offset to selling, general and administrative expenses, or SG&A, when the cost is incurred. Volume rebates and allowances that do not meet the requirements for offsetting in SG&A are recorded initially as a reduction to inventory as they are earned based on inventory purchases and reduce cost of sales as the inventory is sold. Total deferred vendor incentives included as a reduction of Inventory was $211,072 and $210,674 as of December 31, 2016 and January 2, 2016 , respectively. Similarly, the Company recognizes other promotional incentives earned under long-term agreements not specifically related to volume of purchases as a reduction to cost of sales. However, these incentives are not deferred as a reduction of inventory and are recognized based on the cumulative net purchases as a percentage of total estimated net purchases over the life of the agreement. Short-term incentives (terms less than one year) are generally recognized as a reduction to cost of sales over the duration of any short-term agreements. Amounts received or receivable from vendors that are not yet earned are reflected as deferred revenue in the accompanying consolidated balance sheets. Management’s estimate of the portion of deferred revenue that will be realized within one year of the balance sheet date has been included in Other current liabilities in the accompanying consolidated balance sheets. Earned amounts that are receivable from vendors are included in Receivables and Other assets on the accompanying consolidated balance sheets. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. Advertising expense, net of qualifying vendor promotional funds, was $97,003 , $108,827 and $96,463 in 2016 , 2015 and 2014 , respectively. Vendor promotional funds, which reduced advertising expense, amounted to $29,308 and $17,530 and $21,814 in 2016 , 2015 and 2014 , respectively. |
Preopening Expenses | Preopening Expenses Preopening expenses, which consist primarily of payroll and occupancy costs related to the opening of new stores, are expensed as incurred. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under the asset and liability method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date. The Company recognizes tax benefits and/or tax liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as the Company must determine the probability of various possible outcomes. The Company reevaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. The reevaluations are based on many factors, including but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes of limitations and new federal or state audit activity. Any change in either the Company’s recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. The Company also follows guidance provided on other items relevant to the accounting for income taxes throughout the year, as applicable, including derecognition of benefits, classification, interest and penalties, accounting in interim periods, disclosure and transition. |
Self-Insurance | Self-Insurance The Company is self-insured for general and automobile liability, workers’ compensation and health care claims of its employees, or Team Members, while maintaining stop-loss coverage with third-party insurers to limit its total liability exposure. Expenses associated with these liabilities are calculated for (i) claims filed, (ii) claims incurred but not yet reported and (iii) projected future claims using actuarial methods followed in the insurance industry as well as the Company’s historical claims experience. The Company includes the current and long-term portions of its self-insurance reserves in Accrued expenses and Other long-term liabilities, respectively. |
Warranty Liabilities | Warranty Liabilities The warranty obligation on the majority of merchandise sold by the Company with a manufacturer's warranty is the responsibility of the Company’s vendors. However, the Company has an obligation to provide customers free replacement of certain merchandise or merchandise at a prorated cost if under a warranty and not covered by the manufacturer. Merchandise sold with warranty coverage by the Company primarily includes batteries, but may also include other parts such as brakes and shocks. The Company estimates its warranty obligation at the time of sale based on the historical return experience, sales level and cost of the respective product sold. To the extent vendors provide upfront allowances in lieu of accepting the obligation for warranty claims and the allowance is in excess of the related warranty expense, the excess is recorded as a reduction to cost of sales. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue at the time the sale is made, at which time the Company’s walk-in customers take immediate possession of the merchandise or same-day delivery is made to the Company’s Professional delivery customers, which include certain independently-owned store locations. For e-commerce sales, revenue is recognized either at the time of pick-up at one of the Company’s store locations or at the time of shipment depending on the customer’s order designation. Sales are recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. The Company estimates the reduction to sales and cost of sales for returns based on current sales levels and the Company’s historical return experience. The Company’s reserve for sales returns and allowances was not material as of December 31, 2016 and January 2, 2016 . |
Share-Based Payments | Share-Based Payments The Company provides share-based compensation to its eligible Team Members and Board of Directors. The Company is required to exercise judgment and make estimates when determining the (i) fair value of each award granted and (ii) projected number of awards expected to vest. The Company calculates the fair value of all share-based awards at the date of grant and uses the straight-line method to amortize this fair value as compensation cost over the requisite service period. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company’s accounting policy for derivative financial instruments is based on whether the instruments meet the criteria for designation as cash flow or fair value hedges. The criteria for designating a derivative as a hedge include the assessment of the instrument’s effectiveness in risk reduction, matching of the derivative instrument to its underlying transaction and the probability that the underlying transaction will occur. For derivatives with cash flow hedge designation, the Company would recognize the after-tax gain or loss from the effective portion of the hedge as a component of Accumulated other income (loss) and reclassify it into earnings in the same period or periods in which the hedged transaction affected earnings, and within the same income statement line item as the impact of the hedged transaction. For derivatives with fair value hedge accounting designation, the Company would recognize gains or losses from the change in the fair value of these derivatives, as well as the offsetting change in the fair value of the underlying hedged item, in earnings. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of the Company's Canadian operations are translated into U.S. dollars at current exchange rates, and revenues, expenses and cash flows are translated at average exchange rates for the fiscal year. Resulting translation adjustments are reflected as a separate component in the Consolidated Statements of Comprehensive Income. Losses from foreign currency transactions, which are included in Other income, net, were $7,430 during 2015 . Gains and losses from foreign currency transactions were not significant in 2016 or 2014. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) is a measure that reports all changes in equity resulting from transactions and other economic events during the period. The changes in accumulated other comprehensive income refer to revenues, expenses, gains, and losses that are included in other comprehensive income but excluded from net income. The Company’s Accumulated other comprehensive income (loss) is comprised of foreign currency translation gains (losses) and the net unrealized gain associated with the Company's postretirement benefit plan. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company records goodwill equal to the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. The Company tests goodwill and indefinite-lived intangible assets for impairment annually as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. These indicators would include a significant change in operating performance, the business climate, legal factors, competition, or a planned sale or disposition of a significant portion of the business, among other factors. The Company reviews finite-lived intangible assets for impairment in accordance with its policy for the valuation of long-lived assets. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable and exceeds its fair value. When such an event occurs, the Company estimates the undiscounted future cash flows expected to result from the use of the long-lived asset (asset group) and its eventual disposition. These impairment evaluations involve estimates of asset useful lives and future cash flows. If the undiscounted expected future cash flows are less than the carrying amount of the asset and the carrying amount of the asset exceeds its fair value, an impairment loss is recognized. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on quoted market prices or other valuation techniques (e.g., discounted cash flow analysis). |
Earnings per Share | Earnings per Share The Company uses the two-class method to calculate earnings per share. Under the two-class method, unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share. Certain of the Company’s shares granted to Team Members in the form of restricted stock and restricted stock units are considered participating securities. Accordingly, earnings per share is computed by dividing net income attributable to the Company’s common shareholders by the weighted-average common shares outstanding during the period. The two-class method is an earnings allocation formula that determines income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Diluted income per common share reflects the more dilutive earnings per share amount calculated using the treasury stock method or the two-class method. Basic earnings per share of common stock has been computed based on the weighted-average number of common shares outstanding during the period, which is reduced by stock held in treasury and shares of nonvested restricted stock units. Diluted earnings per share is calculated by including the effect of dilutive securities. Diluted earnings per share of common stock reflects the weighted-average number of shares of common stock outstanding, outstanding deferred stock units and the impact of outstanding stock options and stock appreciation rights (collectively “share-based awards”). Share-based awards containing performance conditions are included in the dilution impact as those conditions are met. |
Lease Accounting | Lease Accounting The Company leases certain store locations, distribution centers, office spaces, equipment and vehicles. The total amount of minimum rent is expensed on a straight-line basis over the initial term of the lease unless external economic factors exist such that renewals are reasonably assured. In those instances, the renewal period would be included in the lease term for purposes of establishing an amortization period and determining if such lease qualified as a capital or operating lease. Differences between the calculated rent expense and cash payments are recorded as a liability within the Accrued expenses and Other long-term liabilities captions in the accompanying consolidated balance sheets, based on the terms of the lease. Deferred rent was $76,358 and $70,802 as of December 31, 2016 and January 2, 2016 , respectively. In addition to minimum fixed rental payments, some leases provide for contingent facility rentals. Contingent facility rentals are determined on the basis of a percentage of sales in excess of stipulated minimums for certain store facilities as defined in the individual lease agreements. Most of the leases provide that the Company pay taxes, maintenance, insurance and certain other expenses applicable to the leased premises. Management expects that in the normal course of business leases that expire will be renewed or replaced by other leases. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, or at fair value at acquisition if acquired through a business combination, less accumulated depreciation. Expenditures for maintenance and repairs are charged directly to expense when incurred; major improvements are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the account balances, with any gain or loss reflected in the consolidated statements of operations. Depreciation of land improvements, buildings, furniture, fixtures and equipment, and vehicles is provided over the estimated useful lives of the respective assets using the straight-line method. Depreciation of building and leasehold improvements is provided over the shorter of the original useful lives of the respective assets or the term of the lease using the straight-line method. |
Closed Facility Liabilities and Exit Activities | Closed Facility Liabilities and Exit Activities The Company continually reviews the operating performance of its existing store locations and closes or relocates certain stores identified as underperforming. In addition, the Company is consolidating certain locations as part of its planned integration of GPI. Expenses accrued pertaining to closed facility exit activities are included in the Company’s closed facility liabilities, within Accrued expenses and Other long-term liabilities in the accompanying consolidated balance sheets, and recognized in SG&A in the accompanying consolidated statements of operations at the time the facilities actually close. Closed facility liabilities include the present value of the remaining lease obligations and management’s estimate of future costs of insurance, property tax and common area maintenance expenses (reduced by the present value of estimated revenues from subleases and lease buyouts). From time to time closed facility liability estimates require revisions, primarily due to changes in assumptions associated with revenue from subleases. The effect of accretion and changes in estimates for our closed facility liabilities are included in SG&A in the accompanying consolidated statements of operations at the time the changes in estimates are made. Employees receiving severance benefits as the result of a store closing or other restructuring activity are required to render service until they are terminated in order to receive benefits. The severance is recognized in SG&A in the accompanying consolidated statements of operations over the related service period. Other restructuring costs, including costs to relocate employees, are recognized in the period in which the liability is incurred. The Company also evaluates and determines if the results from the closure of store locations should be reported as discontinued operations based on the elimination of the operations and associated cash flows from the Company’s ongoing operations if the disposal represents a strategic shift that has (or will have) a major effect on the Company's operations and financial results. |
Cost of Sales and Selling, General and Administrative Expenses | Cost of Sales and Selling, General and Administrative Expenses The following table identifies the primary costs classified in each major expense category: Cost of Sales • Total cost of merchandise sold including: - Freight expenses associated with moving merchandise inventories from our vendors to our distribution center, - Vendor incentives, and - Cash discounts on payments to vendors; • Inventory shrinkage; • Defective merchandise and warranty costs; • Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs and depreciation; and • Freight and other handling costs associated with moving merchandise inventories through our supply chain - From our distribution centers to our store and branch locations and customers, and - From certain of our larger stores which stock a wider variety and greater supply of inventory (“HUB stores”) to our stores after the customer has special-ordered the merchandise. |
Selling, General and Administrative Expenses | Cost of Sales and Selling, General and Administrative Expenses The following table identifies the primary costs classified in each major expense category: SG&A • Payroll and benefit costs for store and corporate Team Members; • Occupancy costs of store and corporate facilities; • Depreciation and amortization related to store and corporate assets; • Advertising; • Costs associated with our Professional delivery program, including payroll and benefit costs, and transportation expenses associated with moving merchandise inventories from our stores and branches to our customer locations; • Self-insurance costs; • Professional services; • Other administrative costs, such as credit card service fees, supplies, travel and lodging; • Closed facility expense; • Impairment charges; and • GPI integration costs. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company adopted Accounting Standards Update ("ASU") 2015-03 "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" effective January 3, 2016, or the beginning of fiscal 2016. ASU 2015-03 simplifies the presentation of debt issuance costs by requiring such costs be presented as a deduction from the corresponding debt liability. Concurrently, the Company also adopted ASU 2015-15 "Interest - Imputed Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" which clarifies that entities may continue to defer and present debt issuance costs associated with a line-of-credit as an asset and subsequently amortize the deferred costs ratably over the term of the arrangement. The adoption of these ASU's have been retrospectively applied and resulted in a reclassification of $6,864 of debt issuance costs from Other assets, net to Long-term debt in the accompanying consolidated balance sheets as of January 2, 2016. The Company adopted ASU 2014-12 “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period" effective the beginning of fiscal 2016. The amendments in this ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The adoption of this standard did not impact the Company's consolidated financial statements as the Company's policies were already consistent with the new guidance. Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which required a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted after January 1, 2017. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" related to the classification of certain cash receipts and cash payments on the statement of cash flows. The pronouncement provides clarification guidance on eight specific cash flow presentation issues that have developed due to diversity in practice. The issues include, but are not limited to, debt prepayment or extinguishment costs, settlement of zero-coupon debt, proceeds from the settlement of insurance claims, and cash receipts from payments on beneficial interests in securitization transactions. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which requires businesses to present financial assets, measured at an amortized cost basis, at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis, such as trade receivables. The measurement of expected credit loss will be based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, and requires a modified retrospective adoption, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial condition, results of operations or cash flows. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" aimed at simplifying certain aspects of accounting for share-based payment transactions. The areas for simplification include the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard will be applied both prospectively and retrospectively depending on the provision. The Company will adopt ASU 2016-09 in the first quarter of fiscal 2017 and will record an immaterial cumulative effect adjustment to beginning retained earnings related to the Company's election to record forfeitures as they occur. The Company does not expect the provisions of the new guidance to have a material impact on its consolidated financial statements, except as it relates to the provision requiring the inclusion of excess tax benefits (deficits) as a component of income tax expense in the consolidated results of operations. This provision will be applied prospectively and the impact will be dependent on the volume of future exercise and vesting activity and changes in the Company's stock price. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." This ASU is a comprehensive new leases standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. It will require lessees to recognize lease assets and lease liabilities for all leases, including those leases previously classified as operating leases under current GAAP. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The ASU is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years; earlier adoption is permitted. In the financial statements in which the ASU is first applied, leases will be measured and recognized at the beginning of the earliest comparative period presented with an adjustment to equity. Practical expedients are available for election as a package and if applied consistently to all leases. From a balance sheet perspective, the Company expects adoption of the new standard to have a material effect on its Total assets and Total liabilities as a result of recording the required right of use asset and associated lease liability. However, the Company has not completed its analysis and is unable to quantify the impact at this time. At this time the Company does not expect adoption of ASU 2016-02 to have a material impact on its consolidated statements of operations as the majority of its leases will remain operating in nature. As such, the expense recognition will be similar to previously required straight-line expense treatment. The Company is also in the process of identifying changes to its business processes, systems and controls to support adoption of the new standard in fiscal 2019. In January 2016, the FASB issued ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." Although the ASU retains many of the current requirements for financial instruments, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. The ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017; earlier adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In July 2015, the FASB issued ASU 2015-11 "Inventory (Topic 330): Simplifying the Measurement of Inventory." ASU 2015-11 requires entities to measure most inventory at the lower of cost or net recognizable value, simplifying the current requirement that inventories be measured at the lower of cost or market. The ASU will not apply to inventories that are measured using the last-in, first-out method or retail inventory method. The guidance will be effective prospectively for annual periods, and interim periods within those annual periods, that begin after December 15, 2016; earlier adoption is permitted. As the majority of the Company's inventory is accounted for under the last-in, first-out method, the adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)." This ASU, along with subsequent ASU's issued to clarify certain provisions of ASU 2014-09, is a comprehensive new revenue recognition model that expands disclosure requirements and requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 by one year. As a result, ASU 2014-09 will become effective during annual reporting periods beginning after December 15, 2017 and interim reporting periods during the year of adoption with public entities permitted to early adopt for reporting periods beginning after December 15, 2016. Entities may choose from two transition methods which include, with certain practical expedients, a full retrospective method with restatement of prior years or the modified retrospective method, requiring prospective application of the new standard with disclosure of results under old standards. The Company plans to adopt the new standard effective January 1, 2018 and apply the modified retrospective method. The Company is currently analyzing the impact of ASU 2014-09, as amended, on its revenue contracts, comparing the Company's current accounting policies and practices to the requirements of the new standard and identifying potential differences that would result from applying the new standard to its contracts. At this time, the Company does not expect adoption of the new standard to have a material impact on its consolidated financial condition, results of operations or cash flows. Additionally, the Company does not anticipate any significant changes to business processes, controls or systems as a result of adopting the new standard. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Self-insurance reserves [Table Text Block] | The following table presents changes in the Company’s total self-insurance reserves: December 31, 2016 January 2, 2016 January 3, 2015 Self-insurance reserves, beginning of period $ 133,975 $ 137,033 $ 98,475 Additions to self-insurance reserves 163,693 160,232 159,752 Acquired reserves — — 41,673 Reserves utilized (157,045 ) (163,290 ) (162,867 ) Self-insurance reserves, end of period $ 140,623 $ 133,975 $ 137,033 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory balances at the end of 2016 and 2015 were as follows: December 31, January 2, Inventories at FIFO, net $ 4,120,030 $ 4,009,641 Adjustments to state inventories at LIFO 205,838 165,127 Inventories at LIFO, net $ 4,325,868 $ 4,174,768 |
Inventory Reserves [Table Text Block] | The following table presents changes in the Company’s inventory reserves for years ended December 31, 2016 , January 2, 2016 and January 3, 2015 : December 31, January 2, January 3, Inventory reserves, beginning of period $ 70,383 $ 49,439 $ 37,523 Additions to inventory reserves 118,710 97,226 92,773 Reserves utilized (98,458 ) (76,282 ) (80,857 ) Inventory reserves, end of period $ 90,635 $ 70,383 $ 49,439 |
Exit Activities and Impairment
Exit Activities and Impairment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | A summary of the Company’s restructuring liabilities, which are recorded in accrued expenses (current portion) and long-term liabilities (long-term portion) in the accompanying consolidated balance sheets, are presented in the following table: Closed Facility Lease Obligations Severance Relocation and Other Exit Costs Total Balance, January 2, 2016 $ 42,490 $ 6,255 $ 351 $ 49,096 Reserves established 23,252 988 238 24,478 Change in estimates (3,073 ) (410 ) — (3,483 ) Cash payments (18,404 ) (5,874 ) (589 ) (24,867 ) Balance, December 31, 2016 $ 44,265 $ 959 $ — $ 45,224 Balance, January 3, 2015 $ 19,270 $ 5,804 $ 1,816 $ 26,890 Reserves established 34,699 13,351 4,419 52,469 Change in estimates (205 ) (2,009 ) — (2,214 ) Cash payments (11,274 ) (10,891 ) (5,884 ) (28,049 ) Balance, January 2, 2016 $ 42,490 $ 6,255 $ 351 $ 49,096 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Goodwill The following table reflects the carrying amount of goodwill and the changes in goodwill carrying amounts. December 31, January 2, (52 weeks ended) (52 weeks ended) Goodwill, beginning of period $ 989,484 $ 995,426 Acquisitions — 1,995 Changes in foreign currency exchange rates 1,393 (7,937 ) Goodwill, end of period $ 990,877 $ 989,484 |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | The gross carrying amounts and accumulated amortization of acquired intangible assets as of December 31, 2016 and January 2, 2016 are comprised of the following: December 31, 2016 January 2, 2016 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Customer relationships $ 349,615 $ (89,420 ) $ 260,195 $ 358,655 $ (70,367 ) $ 288,288 Acquired technology — — — 8,850 (8,850 ) — Favorable leases 48,693 (24,864 ) 23,829 56,040 (23,984 ) 32,056 Non-compete and other 54,130 (32,708 ) 21,422 57,430 (25,368 ) 32,062 452,438 (146,992 ) 305,446 480,975 (128,569 ) 352,406 Unamortized intangible assets: Brands, trademark and tradenames 335,457 — 335,457 334,719 — 334,719 Total intangible assets $ 787,895 $ (146,992 ) $ 640,903 $ 815,694 $ (128,569 ) $ 687,125 |
Schedule of Expected Amortization Expense [Table Text Block] | The table below shows expected amortization expense for the next five years and thereafter for acquired intangible assets recorded as of December 31, 2016 : Fiscal Year Amount 2017 $ 45,738 2018 42,795 2019 32,380 2020 31,728 2021 31,066 Thereafter 121,739 |
Receivables, net (Tables)
Receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable [Table Text Block] | Receivables consist of the following: December 31, January 2, Trade $ 407,301 $ 379,832 Vendor 239,770 229,496 Other 23,345 14,218 Total receivables 670,416 623,546 Less: Allowance for doubtful accounts (29,164 ) (25,758 ) Receivables, net $ 641,252 $ 597,788 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Long-term debt consists of the following: December 31, 2016 January 2, 2016 Revolving facility at variable interest rates (2.05% at January 2, 2016) due December 5, 2018 $ — $ 80,000 Term loan at variable interest rates (1.69% at January 2, 2016) — 80,000 5.75% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $1,994 and $2,577 at December 31, 2016 and January 2, 2016, respectively) due May 1, 2020 298,006 297,423 4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $1,384 and $1,660 at December 31, 2016 and January 2, 2016, respectively) due January 15, 2022 298,616 298,340 4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $3,673 and $4,179 at December 31, 2016 and January 2, 2016) due December 1, 2023 446,327 445,821 Other 306 5,311 1,043,255 1,206,895 Less: Current portion of long-term debt (306 ) (598 ) Long-term debt, excluding current portion $ 1,042,949 $ 1,206,297 |
Debt Instrument Redemption [Table Text Block] | The Company may redeem some or all of the Notes at any time or from time to time, at the redemption price described in the Indenture. In addition, in the event of a Change of Control Triggering Event (as defined in the Indenture for the Notes), the Company will be required to offer to repurchase the Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase date. The Notes are currently fully and unconditionally guaranteed, jointly and severally, on an unsubordinated and unsecured basis by each of the subsidiary guarantors. The Company will be permitted to release guarantees without the consent of holders of the Notes under the circumstances described in the Indenture: (i) upon the release of the guarantee of the Company’s other debt that resulted in the affected subsidiary becoming a guarantor of this debt; (ii) upon the sale or other disposition of all or substantially all of the stock or assets of the subsidiary guarantor; or (iii) upon the Company’s exercise of its legal or covenant defeasance option. |
Schedule of Maturities of Long-term Debt [Table Text Block] | As of December 31, 2016 , the aggregate future annual maturities of long-term debt instruments are as follows: Fiscal Year Amount 2017 $ 306 2018 — 2019 — 2020 300,000 2021 — Thereafter 750,000 $ 1,050,306 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | The carrying value and fair value of the Company's long-term debt as of December 31, 2016 and January 2, 2016 , respectively, are as follows: December 31, January 2, Carrying Value $ 1,042,949 $ 1,206,297 Fair Value $ 1,118,000 $ 1,262,000 The adoption of ASU 2015-3 resulted in a reclassification of $6,864 of debt issuance costs from Other assets, net to Long-term debt decreasing the carrying value as of January 2, 2016. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consists of the following: Original December 31, January 2, Land and land improvements 0 - 10 years $ 444,262 $ 441,048 Buildings 30 - 40 years 471,740 468,237 Building and leasehold improvements 3 - 30 years 451,979 418,352 Furniture, fixtures and equipment 3 - 20 years 1,583,096 1,464,791 Vehicles 2 - 13 years 35,133 25,060 Construction in progress 120,778 106,855 3,106,988 2,924,343 Less - Accumulated depreciation (1,660,648 ) (1,489,766 ) Property and equipment, net $ 1,446,340 $ 1,434,577 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses consist of the following: December 31, January 2, Payroll and related benefits $ 97,496 $ 99,072 Taxes payable 121,860 96,098 Self-insurance reserves 58,743 57,829 Warranty reserves 47,243 44,479 Capital expenditures 21,176 44,038 Other 207,879 211,647 Total accrued expenses $ 554,397 $ 553,163 |
Schedule of Product Warranty Liability [Table Text Block] | The following table presents changes in the Company’s warranty reserves: December 31, January 2, January 3, Warranty reserves, beginning of period $ 44,479 $ 47,972 $ 39,512 Reserves acquired with GPI — — 4,490 Additions to warranty reserves 46,903 44,367 52,306 Reserves utilized (44,139 ) (47,860 ) (48,336 ) Warranty reserves, end of period $ 47,243 $ 44,479 $ 47,972 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table illustrates the computation of basic and diluted earnings per share for 2016 , 2015 and 2014 , respectively: 2016 2015 2014 Numerator Net income applicable to common shares $ 459,622 $ 473,398 $ 493,825 Participating securities’ share in earnings (1,945 ) (1,653 ) (1,555 ) Net income applicable to common shares $ 457,677 $ 471,745 $ 492,270 Denominator Basic weighted average common shares 73,562 73,190 72,932 Dilutive impact of share-based awards 294 543 482 Diluted weighted average common shares 73,856 73,733 73,414 Basic earnings per common share Net income applicable to common stockholders $ 6.22 $ 6.45 $ 6.75 Diluted earnings per common share Net income applicable to common stockholders $ 6.20 $ 6.40 $ 6.71 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes current and deferred [Table Text Block] | Provision for income taxes for 2016 , 2015 and 2014 consists of the following: Current Deferred Total 2016 Federal $ 209,499 $ 17,989 $ 227,488 State 29,345 1,366 30,711 Foreign 20,156 858 21,014 $ 259,000 $ 20,213 $ 279,213 2015 Federal $ 242,801 $ (6,564 ) $ 236,237 State 33,023 (1,797 ) 31,226 Foreign 12,885 (858 ) 12,027 $ 288,709 $ (9,219 ) $ 279,490 2014 Federal $ 204,743 $ 45,389 $ 250,132 State 19,359 4,830 24,189 Foreign 14,999 (1,751 ) 13,248 $ 239,101 $ 48,468 $ 287,569 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The provision for income taxes differed from the amount computed by applying the federal statutory income tax rate due to: December 31, 2016 January 2, 2016 January 3, 2015 Income before provision for income taxes at statutory U.S. federal income tax rate (35%) $ 258,592 $ 263,511 $ 273,488 State income taxes, net of federal income tax benefit 19,962 20,297 15,723 Other, net 659 (4,318 ) (1,642 ) $ 279,213 $ 279,490 $ 287,569 |
Net deferred income tax liabilities [Table Text Block] | Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and for income tax reporting purposes. Net deferred income tax balances are comprised of the following: December 31, January 2, Deferred income tax assets $ 164,858 $ 171,571 Valuation allowance (2,437 ) (2,861 ) Deferred income tax liabilities (616,703 ) (602,635 ) Net deferred income tax liabilities $ (454,282 ) $ (433,925 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Temporary differences which give rise to significant deferred income tax assets (liabilities) are as follows: December 31, January 2, Deferred income tax assets (liabilities): Property and equipment $ (168,906 ) $ (171,378 ) Inventory valuation differences (222,301 ) (190,756 ) Accrued expenses not currently deductible for tax 63,992 67,725 Share-based compensation 11,752 20,902 Accrued medical and workers compensation 46,116 44,152 Net operating loss carryforwards 5,093 5,907 Straight-line rent 31,631 26,626 Intangible assets (225,496 ) (240,501 ) Other, net 3,837 3,398 Total deferred income tax assets (liabilities) $ (454,282 ) $ (433,925 ) |
Unrecognized tax benefits [Table Text Block] | The following table lists each category and summarizes the activity of the Company’s gross unrecognized tax benefits for the fiscal years ended December 31, 2016 , January 2, 2016 and January 3, 2015 : December 31, January 2, January 3, Unrecognized tax benefits, beginning of period $ 13,841 $ 14,033 $ 18,458 Increases related to prior period tax positions 8,274 412 — Decreases related to prior period tax positions (1,600 ) (2,120 ) (4,841 ) Increases related to current period tax positions 2,105 3,137 4,329 Settlements (6,894 ) (582 ) (2,345 ) Expiration of statute of limitations (1,780 ) (1,039 ) (1,568 ) Unrecognized tax benefits, end of period $ 13,946 $ 13,841 $ 14,033 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases [Table Text Block] | As of December 31, 2016 , future minimum lease payments due under non-cancelable operating leases with lease terms extending through the year 2059 are as follows: Fiscal Year Amount 2017 $ 472,723 2018 444,775 2019 406,671 2020 358,497 2021 296,651 Thereafter 1,181,760 $ 3,161,077 |
Schedule of Rent Expense [Table Text Block] | Net rent expense for 2016 , 2015 and 2014 was as follows: December 31, 2016 January 2, 2016 January 3, 2015 Minimum facility rentals $ 473,156 $ 471,061 $ 463,345 Contingency facility rentals 440 303 488 Equipment rentals 13,165 11,632 8,230 Vehicle rentals 60,983 61,147 53,300 547,744 544,143 525,363 Less: Sub-lease income (7,379 ) (7,569 ) (9,966 ) $ 540,365 $ 536,574 $ 515,397 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share based compensation expense related to cash flow [Table Text Block] | Total share-based compensation expense and cash received included in the Company’s consolidated statements of operations and consolidated statements of cash flows, including the related income tax benefits, for 2016 , 2015 and 2014 are as follows: 2016 2015 2014 Share-based compensation expense $ 20,452 $ 36,929 $ 21,705 Deferred income tax benefit 7,530 13,596 8,013 Proceeds from the issuance of common stock, primarily for employee stock purchase plan 4,532 5,174 6,578 Tax withholdings related to the exercise of stock appreciation rights (19,558 ) (13,112 ) (7,102 ) Excess tax benefit from share-based compensation 22,429 13,002 10,487 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of each SAR granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: Black-Scholes Option Valuation Assumptions 2016 2015 2014 Risk-free interest rate (1) 1.2 % 1.3 % 1.2 % Expected dividend yield 0.2 % 0.1 % 0.2 % Expected stock price volatility (2) 27.7 % 27.3 % 27 % Expected life of awards (in months) (3) 55 44 49 (1) The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate having term consistent with the expected life of the award. (2) Expected volatility is determined using a blend of historical and implied volatility. (3) The expected life of the Company's awards represents the estimated period of time until exercise and is based on historical experience of previously granted awards. |
Time-Based Stock Appreciation Rights Award Activity [Table Text Block] | The following table summarizes the time-vested SARs activity for 2016 : Number of Awards Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 2, 2016 561 $ 67.51 Granted 69 160.94 Exercised (353 ) 65.17 Forfeited (2 ) 56.93 Outstanding at December 31, 2016 275 $ 93.89 3.15 $ 20,713 Vested and expected to vest 253 $ 87.84 2.87 $ 20,526 Outstanding and exercisable 207 $ 71.57 2.11 $ 20,150 |
Time-Based Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table summarizes the RSU activity for the fiscal year ended December 31, 2016 : Number of Awards Weighted-Average Grant Date Fair Value Nonvested at January 2, 2016 270 $ 142.65 Granted 88 155.51 Vested (119 ) 135.87 Forfeited (28 ) 144.27 Nonvested at December 31, 2016 211 $ 151.70 |
Performance-Based Stock Appreciation Rights, Activity [Table Text Block] | The following table summarizes the performance-based SARs activity for 2016 : Number of Awards Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 2, 2016 753 $ 118.89 Granted 88 157.15 Change in units based on performance (588 ) 142.01 Exercised (123 ) 68.07 Forfeited (16 ) 112.96 Outstanding at December 31, 2016 114 $ 86.95 2.89 $ 9,355 Vested and expected to vest 113 $ 86.82 2.89 $ 9,323 Outstanding and exercisable 77 $ 75.28 2.76 $ 7,266 |
Performance-Based Restricted Stock, Activity [Table Text Block] | The following table summarizes the performance-based RSUs activity for 2016 : Number of Awards Weighted-Average Grant Date Fair Value Nonvested at January 2, 2016 183 $ 81.81 Granted 427 163.76 Change in units based on performance (288 ) 166.23 Vested (171 ) 78.93 Forfeited (13 ) 81.81 Nonvested at December 31, 2016 138 $ 162.71 |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive income (loss), net of tax, for 2016 , 2015 and 2014 consisted of the following: Unrealized Gain (Loss) Currency Translation Accumulated Balance, December 28, 2013 $ 3,683 $ — $ 3,683 Fiscal 2014 activity (752 ) (15,268 ) (16,020 ) Balance, January 3, 2015 $ 2,931 $ (15,268 ) $ (12,337 ) Fiscal 2015 activity (445 ) (31,277 ) (31,722 ) Balance, January 2, 2016 $ 2,486 $ (46,545 ) $ (44,059 ) Fiscal 2016 activity (534 ) 4,892 4,358 Balance, December 31, 2016 $ 1,952 $ (41,653 ) $ (39,701 ) |
Segment and Related Informati47
Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | The following table summarizes financial information for each of the Company’s product groups for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. Certain prior period amounts have been reclassified to conform to current product category classifications. 2016 2015 2014 Percentage of Sales, by Product Group Parts and Batteries 66 % 66 % 66 % Accessories and Chemicals 19 % 19 % 19 % Engine Maintenance 14 % 14 % 14 % Other 1 % 1 % 1 % Total 100 % 100 % 100 % |
Condensed Consolidating Finan48
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Balance Sheet [Table Text Block] | Condensed Consolidating Balance Sheets As of December 31, 2016 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 22 $ 78,543 $ 56,635 $ (22 ) $ 135,178 Receivables, net — 619,229 22,023 — 641,252 Inventories, net — 4,126,465 199,403 — 4,325,868 Other current assets — 69,385 1,153 (72 ) 70,466 Total current assets 22 4,893,622 279,214 (94 ) 5,172,764 Property and equipment, net of accumulated depreciation 128 1,436,459 9,753 — 1,446,340 Goodwill — 943,359 47,518 — 990,877 Intangible assets, net — 595,596 45,307 — 640,903 Other assets, net 4,634 63,376 773 (4,634 ) 64,149 Investment in subsidiaries 3,008,856 375,420 — (3,384,276 ) — Intercompany note receivable 1,048,424 — — (1,048,424 ) — Due from intercompany, net — — 316,109 (316,109 ) — $ 4,062,064 $ 8,307,832 $ 698,674 $ (4,753,537 ) $ 8,315,033 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ — $ 306 $ — $ — $ 306 Accounts payable — 2,813,937 272,240 — 3,086,177 Accrued expenses 1,505 526,652 26,312 (72 ) 554,397 Other current liabilities — 32,202 2,986 (22 ) 35,166 Total current liabilities 1,505 3,373,097 301,538 (94 ) 3,676,046 Long-term debt 1,042,949 — — — 1,042,949 Deferred income taxes — 439,283 19,633 (4,634 ) 454,282 Other long-term liabilities — 223,481 2,083 — 225,564 Intercompany note payable — 1,048,424 — (1,048,424 ) — Due to intercompany, net 101,418 214,691 — (316,109 ) — Commitments and contingencies Stockholders' equity 2,916,192 3,008,856 375,420 (3,384,276 ) 2,916,192 $ 4,062,064 $ 8,307,832 $ 698,674 $ (4,753,537 ) $ 8,315,033 Condensed Consolidating Balance Sheets As of January 2, 2016 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 8 $ 63,458 $ 27,324 $ (8 ) $ 90,782 Receivables, net — 568,106 29,682 — 597,788 Inventories, net — 4,009,335 165,433 — 4,174,768 Other current assets 178 78,904 1,376 (3,050 ) 77,408 Total current assets 186 4,719,803 223,815 (3,058 ) 4,940,746 Property and equipment, net of accumulated depreciation 154 1,425,319 9,104 — 1,434,577 Goodwill — 943,319 46,165 — 989,484 Intangible assets, net — 640,583 46,542 — 687,125 Other assets, net 9,500 75,025 745 (9,501 ) 75,769 Investment in subsidiaries 2,523,076 302,495 — (2,825,571 ) — Intercompany note receivable 1,048,161 — — (1,048,161 ) — Due from intercompany, net — — 325,077 (325,077 ) — $ 3,581,077 $ 8,106,544 $ 651,448 $ (4,211,368 ) $ 8,127,701 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ — $ 598 $ — $ — $ 598 Accounts payable 103 2,903,287 300,532 — 3,203,922 Accrued expenses 2,378 529,076 24,759 (3,050 ) 553,163 Other current liabilities — 36,270 3,532 (8 ) 39,794 Total current liabilities 2,481 3,469,231 328,823 (3,058 ) 3,797,477 Long-term debt 1,041,584 164,713 — — 1,206,297 Deferred income taxes — 425,094 18,332 (9,501 ) 433,925 Other long-term liabilities — 227,556 1,798 — 229,354 Intercompany note payable — 1,048,161 — (1,048,161 ) — Due to intercompany, net 76,364 248,713 — (325,077 ) — Commitments and contingencies Stockholders' equity 2,460,648 2,523,076 302,495 (2,825,571 ) 2,460,648 $ 3,581,077 $ 8,106,544 $ 651,448 $ (4,211,368 ) $ 8,127,701 |
Condensed Income Statement [Table Text Block] | Condensed Consolidating Statements of Operations For Fiscal 2016 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,254,477 $ 556,747 $ (243,545 ) $ 9,567,679 Cost of sales, including purchasing and warehousing costs — 5,171,953 383,356 (243,545 ) 5,311,764 Gross profit — 4,082,524 173,391 — 4,255,915 Selling, general and administrative expenses 28,695 3,402,323 92,287 (54,988 ) 3,468,317 Operating (loss) income (28,695 ) 680,201 81,104 54,988 787,598 Other, net: Interest (expense) income (52,081 ) (7,897 ) 68 — (59,910 ) Other income (expense), net 81,683 (19,558 ) 4,010 (54,988 ) 11,147 Total other, net 29,602 (27,455 ) 4,078 (54,988 ) (48,763 ) Income before provision for income taxes 907 652,746 85,182 — 738,835 Provision for income taxes 1,588 260,155 17,470 — 279,213 (Loss) income before equity in earnings of subsidiaries (681 ) 392,591 67,712 — 459,622 Equity in earnings of subsidiaries 460,303 67,712 — (528,015 ) — Net income $ 459,622 $ 460,303 $ 67,712 $ (528,015 ) $ 459,622 Condensed Consolidating Statements of Operations For Fiscal 2015 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,432,116 $ 593,606 $ (288,704 ) $ 9,737,018 Cost of sales, including purchasing and warehousing costs — 5,172,938 430,012 (288,704 ) 5,314,246 Gross profit — 4,259,178 163,594 — 4,422,772 Selling, general and administrative expenses 24,186 3,536,697 93,852 (57,743 ) 3,596,992 Operating (loss) income (24,186 ) 722,481 69,742 57,743 825,780 Other, net: Interest (expense) income (52,210 ) (13,378 ) 180 — (65,408 ) Other income (expense), net 76,987 (19,699 ) (7,029 ) (57,743 ) (7,484 ) Total other, net 24,777 (33,077 ) (6,849 ) (57,743 ) (72,892 ) Income before provision for income taxes 591 689,404 62,893 — 752,888 Provision for income taxes 1,220 268,571 9,699 — 279,490 (Loss) income before equity in earnings of subsidiaries (629 ) 420,833 53,194 — 473,398 Equity in earnings of subsidiaries 474,027 53,194 — (527,221 ) — Net income $ 473,398 $ 474,027 $ 53,194 $ (527,221 ) $ 473,398 Condensed Consolidating Statements of Operations For Fiscal 2014 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 9,530,953 $ 527,595 $ (214,687 ) $ 9,843,861 Cost of sales, including purchasing and warehousing costs — 5,231,421 373,514 (214,687 ) 5,390,248 Gross profit — 4,299,532 154,081 — 4,453,613 Selling, general and administrative expenses 14,504 3,541,370 102,370 (56,341 ) 3,601,903 Operating (loss) income (14,504 ) 758,162 51,711 56,341 851,710 Other, net: Interest expense (52,946 ) (20,334 ) (128 ) — (73,408 ) Other income (expense), net 67,470 (9,140 ) 1,103 (56,341 ) 3,092 Total other, net 14,524 (29,474 ) 975 (56,341 ) (70,316 ) Income before provision for income taxes 20 728,688 52,686 — 781,394 Provision for income taxes 296 277,769 9,504 — 287,569 (Loss) income before equity in earnings of subsidiaries (276 ) 450,919 43,182 — 493,825 Equity in earnings of subsidiaries 494,101 43,182 — (537,283 ) — Net income $ 493,825 $ 494,101 $ 43,182 $ (537,283 ) $ 493,825 |
Condensed Statement of Comprehensive Income [Table Text Block] | Condensed Consolidating Statements of Comprehensive Income For Fiscal 2016 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 459,622 $ 460,303 $ 67,712 $ (528,015 ) $ 459,622 Other comprehensive income: Changes in net unrecognized other postretirement benefit costs — (534 ) — — (534 ) Currency translation — — 4,892 — 4,892 Equity in other comprehensive income of subsidiaries 4,358 4,892 — (9,250 ) — Other comprehensive income 4,358 4,358 4,892 (9,250 ) 4,358 Comprehensive income $ 463,980 $ 464,661 $ 72,604 $ (537,265 ) $ 463,980 Condensed Consolidating Statements of Comprehensive Income For Fiscal 2015 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 473,398 $ 474,027 $ 53,194 $ (527,221 ) $ 473,398 Other comprehensive loss: Changes in net unrecognized other postretirement benefit costs — (445 ) — — (445 ) Currency translation adjustments — — (31,277 ) — (31,277 ) Equity in other comprehensive loss of subsidiaries (31,722 ) (31,277 ) — 62,999 — Other comprehensive loss (31,722 ) (31,722 ) (31,277 ) 62,999 (31,722 ) Comprehensive income $ 441,676 $ 442,305 $ 21,917 $ (464,222 ) $ 441,676 Condensed Consolidating Statements of Comprehensive Income For Fiscal 2014 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income $ 493,825 $ 494,101 $ 43,182 $ (537,283 ) $ 493,825 Other comprehensive loss: Changes in net unrecognized other postretirement benefit costs — (752 ) — — (752 ) Currency translation adjustments — — (15,268 ) — (15,268 ) Equity in other comprehensive loss of subsidiaries (16,020 ) (15,268 ) — 31,288 — Other comprehensive loss (16,020 ) (16,020 ) (15,268 ) 31,288 (16,020 ) Comprehensive income $ 477,805 $ 478,081 $ 27,914 $ (505,995 ) $ 477,805 |
Condensed Cash Flow Statement [Table Text Block] | Condensed Consolidating Statements of Cash Flows For Fiscal 2016 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 14 $ 468,751 $ 32,109 $ — $ 500,874 Cash flows from investing activities: Purchases of property and equipment — (257,159 ) (2,400 ) — (259,559 ) Business acquisitions, net of cash acquired — (4,697 ) — — (4,697 ) Proceeds from sales of property and equipment — 2,210 2 — 2,212 Net cash used in investing activities — (259,646 ) (2,398 ) — (262,044 ) Cash flows from financing activities: Increase in bank overdrafts — (4,902 ) (657 ) (14 ) (5,573 ) Borrowings under credit facilities — 799,600 — — 799,600 Payments on credit facilities — (959,600 ) — — (959,600 ) Dividends paid — (17,738 ) — — (17,738 ) Proceeds from the issuance of common stock, primarily exercise of stock options — 4,532 — — 4,532 Tax withholdings related to the exercise of stock appreciation rights — (19,558 ) — — (19,558 ) Excess tax benefit from share-based compensation — 22,429 — — 22,429 Repurchase of common stock — (18,393 ) — — (18,393 ) Other — (390 ) — — (390 ) Net cash used in financing activities — (194,020 ) (657 ) (14 ) (194,691 ) Effect of exchange rate changes on cash — — 257 — 257 Net increase in cash and cash equivalents 14 15,085 29,311 (14 ) 44,396 Cash and cash equivalents , beginning of period 8 63,458 27,324 (8 ) 90,782 Cash and cash equivalents , end of period $ 22 $ 78,543 $ 56,635 $ (22 ) $ 135,178 Condensed Consolidating Statements of Cash Flows For Fiscal 2015 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash (used in) provided by operating activities $ (1 ) $ 696,580 $ (6,937 ) $ — $ 689,642 Cash flows from investing activities: Purchases of property and equipment — (232,591 ) (2,156 ) — (234,747 ) Business acquisitions, net of cash acquired — (18,583 ) (306 ) — (18,889 ) Proceeds from sales of property and equipment — 266 4 — 270 Net cash used in investing activities — (250,908 ) (2,458 ) — (253,366 ) Cash flows from financing activities: Increase in bank overdrafts — (4,529 ) 1,606 1 (2,922 ) Borrowings under credit facilities — 618,300 — — 618,300 Payments on credit facilities — (1,041,700 ) — — (1,041,700 ) Dividends paid — (17,649 ) — — (17,649 ) Proceeds from the issuance of common stock, primarily for employee stock purchase plan — 5,174 — — 5,174 Tax withholdings related to the exercise of stock appreciation rights — (13,112 ) — — (13,112 ) Excess tax benefit from share-based compensation — 13,002 — — 13,002 Repurchase of common stock — (6,665 ) — — (6,665 ) Other — (380 ) — — (380 ) Net cash (used in) provided by financing activities — (447,559 ) 1,606 1 (445,952 ) Effect of exchange rate changes on cash — — (4,213 ) — (4,213 ) Net decrease in cash and cash equivalents (1 ) (1,887 ) (12,002 ) 1 (13,889 ) Cash and cash equivalents , beginning of period 9 65,345 39,326 (9 ) 104,671 Cash and cash equivalents , end of period $ 8 $ 63,458 $ 27,324 $ (8 ) $ 90,782 Condensed Consolidating Statements of Cash Flows For Fiscal 2014 Advance Auto Parts, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ — $ 666,566 $ 42,425 $ — $ 708,991 Cash flows from investing activities: Purchases of property and equipment — (224,894 ) (3,552 ) — (228,446 ) Business acquisitions, net of cash acquired — (2,059,987 ) (796 ) — (2,060,783 ) Proceeds from sales of property and equipment — 974 18 — 992 Net cash used in investing activities — (2,283,907 ) (4,330 ) — (2,288,237 ) Cash flows from financing activities: Increase in bank overdrafts — 16,228 — (9 ) 16,219 Borrowings under credit facilities — 2,238,200 — — 2,238,200 Payments on credit facilities — (1,654,800 ) — — (1,654,800 ) Dividends paid — (17,580 ) — — (17,580 ) Proceeds from the issuance of common stock, primarily for employee stock purchase plan — 6,578 — — 6,578 Tax withholdings related to the exercise of stock appreciation rights — (7,102 ) — — (7,102 ) Excess tax benefit from share-based compensation — 10,487 — — 10,487 Repurchase of common stock — (5,154 ) — — (5,154 ) Contingent consideration related to previous business acquisition — (10,047 ) — — (10,047 ) Other — (890 ) — — (890 ) Net cash provided by financing activities — 575,920 — (9 ) 575,911 Effect of exchange rate changes on cash — — (4,465 ) — (4,465 ) Net (decrease) increase in cash and cash equivalents — (1,041,421 ) 33,630 (9 ) (1,007,800 ) Cash and cash equivalents , beginning of period 9 1,106,766 5,696 — 1,112,471 Cash and cash equivalents , end of period $ 9 $ 65,345 $ 39,326 $ (9 ) $ 104,671 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The following table summarizes quarterly financial data for Fiscal 2016 and 2015 : 2016 First Second Third Fourth (16 weeks) (12 weeks) (12 weeks) (12 weeks) Net sales $ 2,979,778 $ 2,256,155 $ 2,248,855 $ 2,082,891 Gross profit 1,349,889 1,010,257 988,205 907,564 Net income 158,813 124,600 113,844 62,365 Basic earnings per common share 2.16 1.69 1.54 0.84 Diluted earnings per common share 2.14 1.68 1.53 0.84 2015 First Second Third Fourth (16 weeks) (12 weeks) (12 weeks) (12 weeks) Net sales $ 3,038,233 $ 2,370,037 $ 2,295,203 $ 2,033,545 Gross profit 1,393,924 1,087,289 1,032,387 909,172 Net income 148,112 149,998 120,469 54,819 Basic earnings per common share 2.02 2.04 1.64 0.75 Diluted earnings per common share 2.00 2.03 1.63 0.74 Note: Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not be equal to the per share amount for the year. |
Valuation and Qualifying Acco50
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Allowance for doubtful accounts receivable [Table Text Block] | Allowance for doubtful accounts receivable: Balance at Beginning of Period Charges to Expenses Deductions Balance at End of Period January 3, 2015 $ 13,295 $ 17,182 $ (14,325 ) (1) $ 16,152 January 2, 2016 16,152 22,067 (12,461 ) (1) 25,758 December 31, 2016 25,758 24,597 (21,191 ) (1) 29,164 (1) Accounts written off during the period. These amounts did not impact the Company’s statement of operations for any year presented. |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||
Credit and Debit Card Receivables, at Carrying Value | $ 26,480 | $ 37,906 | |
Bank overdrafts | 13,124 | 18,584 | |
Deferred vendor incentives included in inventory | 211,072 | 210,674 | |
Advertising Expense | 97,003 | 108,827 | $ 96,463 |
Vendor promotional funds | 29,308 | 17,530 | 21,814 |
Foreign Currency Transaction Gain (Loss), Realized | 7,430 | ||
Impairment of Long-Lived Assets | 2,759 | 11,017 | $ 11,819 |
Deferred Rent Credit | $ 76,358 | 70,802 | |
Prior Period Reclassification Adjustment | $ 6,864 | ||
Stores [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Number of Stores | 5,062 | ||
Branches [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Number of Stores | 127 | ||
Store locations with delivery service [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Number of Stores | 4,501 | ||
Independently-owned Carquest store locations [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Number of Stores | 1,250 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies Self-Insurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Self-insurance reserves [Line Items] | |||
Self-insurance reserves, beginning of period | $ 133,975 | $ 137,033 | $ 98,475 |
Self-insurance reserves, end of period | 140,623 | 133,975 | 137,033 |
additions to self-insurance reserves [Member] | |||
Self-insurance reserves [Line Items] | |||
Increase (Decrease) in self-insurance reserves | 163,693 | 160,232 | 159,752 |
Acquired reserves [Member] | |||
Self-insurance reserves [Line Items] | |||
Increase (Decrease) in self-insurance reserves | 0 | 0 | 41,673 |
Reserves utilized [Member] | |||
Self-insurance reserves [Line Items] | |||
Increase (Decrease) in self-insurance reserves | $ (157,045) | $ (163,290) | $ (162,867) |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Inventory [Line Items] | |||
Percentage of LIFO Inventory | 89.00% | 89.00% | |
Inventory, LIFO Reserve, Effect on Income, Net | $ 40,711 | $ 42,295 | $ (8,930) |
Purchasing and Warehousing costs included in inventory | 395,240 | 359,829 | |
Inventories at FIFO, net | 4,120,030 | 4,009,641 | |
Adjustments to state inventories at LIFO | 205,838 | 165,127 | |
Inventories at LIFO, net | 4,325,868 | 4,174,768 | |
Inventory Valuation Reserve [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Inventory reserves, beginning of period | 70,383 | 49,439 | 37,523 |
Additions to inventory reserves | 118,710 | 97,226 | 92,773 |
Reserves utilized | (98,458) | (76,282) | (80,857) |
Inventory reserves, end of period | $ 90,635 | $ 70,383 | $ 49,439 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | Jan. 02, 2014USD ($) | Dec. 31, 2016USD ($) | Oct. 08, 2016USD ($) | Jul. 16, 2016USD ($) | Jan. 02, 2016USD ($) | Oct. 10, 2015USD ($) | Jul. 18, 2015USD ($) | Apr. 23, 2016USD ($) | Apr. 25, 2015USD ($) | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Net sales | $ 2,082,891 | $ 2,248,855 | $ 2,256,155 | $ 2,033,545 | $ 2,295,203 | $ 2,370,037 | $ 2,979,778 | $ 3,038,233 | $ 9,567,679 | $ 9,737,018 | $ 9,843,861 | |
Net income | $ 62,365 | $ 113,844 | $ 124,600 | $ 54,819 | $ 120,469 | $ 149,998 | $ 158,813 | $ 148,112 | $ 459,622 | 473,398 | 493,825 | |
Carquest stores acquired by AAP in acquisition [Member] [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of Stores | 1,233 | |||||||||||
GPI Worldpac [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of Stores | 103 | |||||||||||
GPI [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of States in which Entity Operates | 45 | |||||||||||
Total consideration | $ 2,080,804 | |||||||||||
Cash paid to shareholders in acquisition | 1,307,991 | |||||||||||
Repayment of GPI debt | 694,301 | |||||||||||
Amount paid for make-whole fees and transaction related fees | 78,512 | |||||||||||
Term Loan Payable | 700,000 | |||||||||||
Revolving Credit Facility, amount outstanding | 306,046 | |||||||||||
Business Combination, Acquisition Related Costs | $ 0 | 0 | ||||||||||
Net sales | 3,040,493 | |||||||||||
Net income | $ 58,535 | |||||||||||
Escrow Deposit | $ 200,881 | |||||||||||
Carquest indepently owned locations [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of Stores | 1,400 | |||||||||||
Other acquisitions [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of Stores | 7 | 23 | 7 | 23 | 9 | |||||||
Total consideration | $ 4,697 | $ 18,889 | $ 5,155 |
Exit Activities and Impairmen55
Exit Activities and Impairment (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, beginning of period | $ 49,096 | $ 26,890 | |
Reserves established | 24,478 | 52,469 | |
Change in estimates | (3,483) | (2,214) | |
Cash payments | (24,867) | (28,049) | |
Restructuring Reserve, end of period | $ 45,224 | 49,096 | $ 26,890 |
Office Consolidation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ 22,100 | ||
Underperforming Stores [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of Stores | 80 | ||
Restructuring and Related Cost, Incurred Cost | $ 21,984 | ||
Number of Florida AI stores prior to consolidation plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of Stores | 40 | ||
Carquest consolidations completed [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of Stores | 333 | ||
Carquest conversions completed [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of Stores | 282 | ||
Carquest consolidations completed during the current year [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of Stores | 156 | 84 | |
Carquest conversions completed this fiscal year [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of Stores | 123 | 180 | |
GPI stores remaining to be consolidated [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of Stores | 608 | ||
Closed Store Lease Obligations [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, beginning of period | $ 42,490 | $ 19,270 | |
Reserves established | 23,252 | 34,699 | |
Change in estimates | (3,073) | (205) | |
Cash payments | (18,404) | (11,274) | |
Restructuring Reserve, end of period | 44,265 | 42,490 | 19,270 |
Closed Store Lease Obligations [Member] | Number of Florida AI stores prior to consolidation plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 2,700 | ||
Closed Store Lease Obligations [Member] | Carquest consolidations completed during the current year [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 18,900 | 7,286 | 7,888 |
Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, beginning of period | 6,255 | 5,804 | |
Reserves established | 988 | 13,351 | |
Change in estimates | (410) | (2,009) | |
Cash payments | (5,874) | (10,891) | |
Restructuring Reserve, end of period | 959 | 6,255 | 5,804 |
Severance [Member] | Office Consolidation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 3,869 | 6,731 | |
Severance [Member] | Corporate Office Eliminations [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 6,909 | ||
Relocation and Other Exit Costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, beginning of period | 351 | 1,816 | |
Reserves established | 238 | 4,419 | |
Change in estimates | 0 | 0 | |
Cash payments | (589) | (5,884) | |
Restructuring Reserve, end of period | $ 0 | 351 | 1,816 |
Relocation and Other Exit Costs [Member] | Office Consolidation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ 4,419 | $ 7,053 |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Jan. 03, 2015 | |
Goodwill [Line Items] | |||
Goodwill, Acquisitions | $ 0 | $ 1,995 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning of period | 989,484 | 995,426 | |
Goodwill, Acquisitions | 0 | 1,995 | |
Goodwill, changes in foreign currency exchange rates | 1,393 | (7,937) | |
Goodwill, end of period | 990,877 | $ 989,484 | |
2,017 | 45,738 | ||
2,018 | 42,795 | ||
2,019 | 32,380 | ||
2,020 | 31,728 | ||
2,021 | 31,066 | ||
Thereafter | $ 121,739 | ||
Other acquisitions [Member] | |||
Goodwill [Line Items] | |||
Number of Stores | 7 | 23 | 9 |
Goodwill, Acquisitions | $ 1,995 | ||
Goodwill [Roll Forward] | |||
Goodwill, Acquisitions | $ 1,995 |
Goodwill and Intangible Asset R
Goodwill and Intangible Asset Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Expense | $ 48,020 | $ 53,056 | $ 56,499 |
Gross Carrying Amount | 452,438 | 480,975 | |
Accumulated Amortization | (146,992) | (128,569) | |
Net | 305,446 | 352,406 | |
Indefinite-Lived Trademarks | 335,457 | 334,719 | |
Intangible Assets, gross (excluding goodwill) | 787,895 | 815,694 | |
Intangible Assets, Net (Excluding Goodwill) | 640,903 | 687,125 | |
Retirement of fully amortized intangible assets | 29,342 | ||
Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 349,615 | 358,655 | |
Accumulated Amortization | (89,420) | (70,367) | |
Net | 260,195 | 288,288 | |
Acquired Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 0 | 8,850 | |
Accumulated Amortization | 0 | (8,850) | |
Net | 0 | 0 | |
Favorable Leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 48,693 | 56,040 | |
Accumulated Amortization | (24,864) | (23,984) | |
Net | 23,829 | 32,056 | |
Non-Compete and Other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 54,130 | 57,430 | |
Accumulated Amortization | (32,708) | (25,368) | |
Net | 21,422 | 32,062 | |
Brands, Trademark and Tradenames [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ 0 | $ 0 |
Receivables, net (Details)
Receivables, net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 670,416 | $ 623,546 |
Less: Allowance for doubtful accounts | (29,164) | (25,758) |
Receivables, net | 641,252 | 597,788 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 407,301 | 379,832 |
Accounts Receivable, Vendor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 239,770 | 229,496 |
Accounts Receivable, Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 23,345 | $ 14,218 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Dec. 03, 2013 | Jan. 11, 2012 | Apr. 26, 2010 |
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | $ 1,043,255 | $ 1,206,895 | ||||
Long-term Debt, Current Maturities | (306) | (598) | ||||
Long-term Debt, Excluding Current Maturities | 1,042,949 | 1,206,297 | ||||
Prior Period Reclassification Adjustment | 6,864 | |||||
Letters of Credit Outstanding, Amount | 100,719 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | 899,281 | |||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 26,332 | |||||
Guarantor Obligations, Collateral Held | $ 70,074 | |||||
Indenture provisions for events of default | The Indenture contains customary provisions for events of default including for: (i) failure to pay principal or interest when due and payable; (ii) failure to comply with covenants or agreements in the Indenture or the Notes and failure to cure or obtain a waiver of such default upon notice; (iii) a default under any debt for money borrowed by the Company or any of its subsidiaries that results in acceleration of the maturity of such debt, or failure to pay any such debt within any applicable grace period after final stated maturity, in an aggregate amount greater than $25,000 without such debt having been discharged or acceleration having been rescinded or annulled within 10 days after receipt by the Company of notice of the default by the Trustee or holders of not less than 25% in aggregate principal amount of the Notes then outstanding; and (iv) events of bankruptcy, insolvency or reorganization affecting the Company and certain of its subsidiaries. In the case of an event of default, the principal amount of the Notes plus accrued and unpaid interest may be accelerated. The Indenture also contains covenants limiting the ability of the Company and its subsidiaries to incur debt secured by liens and to enter into sale and lease-back transactions. | |||||
2,017 | $ 306 | |||||
2,018 | 0 | |||||
2,019 | 0 | |||||
2,020 | 300,000 | |||||
2,021 | 0 | |||||
Thereafter | 750,000 | |||||
Long-term Debt, Gross | 1,050,306 | |||||
5.75% senior unsecured notes (2020 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 300,000 | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 1,994 | 2,577 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |||||
Debt issuance, percentage of principal | 99.587% | |||||
4.50% senior unsecured notes (2022 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 300,000 | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 1,384 | 1,660 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||
Debt issuance, percentage of principal | 99.968% | |||||
4.50% senior unsecured notes (2023 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 450,000 | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 3,673 | 4,179 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||
Debt issuance, percentage of principal | 99.69% | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | 0 | $ 80,000 | ||||
line of credit facility increase increment limit | 250,000 | |||||
Total line of credit commitment allowed | $ 1,250,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 2.05% | |||||
Revolving Credit Facility [Member] | swingline sublimit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | 0 | $ 80,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 700,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 1.69% | |||||
Senior Notes [Member] | 5.75% senior unsecured notes (2020 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | $ 298,006 | $ 297,423 | ||||
Senior Notes [Member] | 4.50% senior unsecured notes (2022 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | 298,616 | 298,340 | ||||
Senior Notes [Member] | 4.50% senior unsecured notes (2023 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | 446,327 | 445,821 | ||||
Notes Payable, Other Payables [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | $ 306 | $ 5,311 | ||||
2013 Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.15% | |||||
2013 Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | |||||
2013 Credit Agreement [Member] | Revolving Credit Facility [Member] | letters of credit sublimit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000 | |||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
line of credit facility increase increment limit | $ 250,000 | |||||
Subsequent Event [Member] | 2017 Credit Agreement [Member] [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.15% | |||||
Subsequent Event [Member] | 2017 Credit Agreement [Member] [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | |||||
Subsequent Event [Member] | 2017 Credit Agreement [Member] [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.10% | |||||
Subsequent Event [Member] | 2017 Credit Agreement [Member] [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.10% | |||||
Subsequent Event [Member] | 2017 Credit Agreement [Member] [Member] | Revolving Credit Facility [Member] | letters of credit sublimit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impairment of Long-Lived Assets | $ 2,759 | $ 11,017 | $ 11,819 |
Carrying Value | 1,042,949 | 1,206,297 | |
Prior Period Reclassification Adjustment | 6,864 | ||
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | $ 1,118,000 | $ 1,262,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 3,106,988 | $ 2,924,343 | |
Accumulated Depreciation | (1,660,648) | (1,489,766) | |
Property and Equipment, Net | 1,446,340 | 1,434,577 | |
Depreciation | 215,981 | 223,728 | $ 235,040 |
Capitalized software development costs | $ 13,035 | 13,529 | $ 11,436 |
Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | three to ten years | ||
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 0 - 10 years | ||
Property and Equipment, Gross | $ 444,262 | 441,048 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 30 - 40 years | ||
Property and Equipment, Gross | $ 471,740 | 468,237 | |
Building and Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 3 - 30 years | ||
Property and Equipment, Gross | $ 451,979 | 418,352 | |
Furniture, Fixtures and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 3 - 20 years | ||
Property and Equipment, Gross | $ 1,583,096 | 1,464,791 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 2 - 13 years | ||
Property and Equipment, Gross | $ 35,133 | 25,060 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 120,778 | $ 106,855 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | |
Payables and Accruals [Abstract] | |||||
Payroll and related benefits | $ 97,496 | $ 99,072 | |||
Taxes payable | 121,860 | 96,098 | |||
Self-insurance reserves | 58,743 | 57,829 | |||
Warranty reserves | $ 44,479 | $ 47,972 | $ 39,512 | 47,243 | 44,479 |
Capital expenditures | 21,176 | 44,038 | |||
Other | 207,879 | 211,647 | |||
Total accrued expenses | $ 554,397 | $ 553,163 | |||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||||
Warranty reserves, beginning of period | 44,479 | 47,972 | 39,512 | ||
Reserves acquired with GPI | 0 | 0 | 4,490 | ||
Additions to warranty reserves | 46,903 | 44,367 | 52,306 | ||
Reserves utilized | (44,139) | (47,860) | (48,336) | ||
Warranty reserves, end of period | $ 47,243 | $ 44,479 | $ 47,972 |
Stock Repurchases (Details)
Stock Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Class of Stock [Line Items] | |||
Treasury Stock, Value, Acquired, Cost Method | $ 18,393 | $ 6,665 | $ 5,154 |
Net Settlement of Shares Issued as a Result of the Vesting of Restricted Stock [Member] | |||
Class of Stock [Line Items] | |||
Treasury Stock, Shares, Acquired | 116 | 42 | |
Treasury Stock, Value, Acquired, Cost Method | $ 18,393 | $ 6,665 | |
Treasury Stock Acquired, Average Cost Per Share | $ 158.84 | $ 156.98 | |
Stock Repurchase Plan (current year shares) [Member] | |||
Class of Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 500,000 | ||
Treasury Stock, Shares, Acquired | 0 | 0 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 415,092 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Jan. 02, 2016 | Oct. 10, 2015 | Jul. 18, 2015 | Apr. 23, 2016 | Apr. 25, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 62,365 | $ 113,844 | $ 124,600 | $ 54,819 | $ 120,469 | $ 149,998 | $ 158,813 | $ 148,112 | $ 459,622 | $ 473,398 | $ 493,825 |
Participating securities' share in earnings | (1,945) | (1,653) | (1,555) | ||||||||
Net income applicable to common shares | $ 457,677 | $ 471,745 | $ 492,270 | ||||||||
Basic weighted average common shares | 73,562 | 73,190 | 72,932 | ||||||||
Dilutive impact of share-based awards | 294 | 543 | 482 | ||||||||
Diluted weighted average common shares | 73,856 | 73,733 | 73,414 | ||||||||
Basic earnings per common share, Net income applicable to common stockholders | $ 0.84 | $ 1.54 | $ 1.69 | $ 0.75 | $ 1.64 | $ 2.04 | $ 2.16 | $ 2.02 | $ 6.22 | $ 6.45 | $ 6.75 |
Diluted earnings per common share, Net income applicable to common stockholders | $ 0.84 | $ 1.53 | $ 1.68 | $ 0.74 | $ 1.63 | $ 2.03 | $ 2.14 | $ 2 | $ 6.20 | $ 6.40 | $ 6.71 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 19 | 1 | 13 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Taxes [Line Items] | |||
Current Federal Tax Expense (Benefit) | $ 209,499 | $ 242,801 | $ 204,743 |
Deferred Federal Income Tax Expense (Benefit) | 17,989 | (6,564) | 45,389 |
Federal Income Tax Expense (Benefit), Continuing Operations | 227,488 | 236,237 | 250,132 |
Current State and Local Tax Expense (Benefit) | 29,345 | 33,023 | 19,359 |
Deferred State and Local Income Tax Expense (Benefit) | 1,366 | (1,797) | 4,830 |
State and Local Income Tax Expense (Benefit), Continuing Operations | 30,711 | 31,226 | 24,189 |
Current Foreign Tax Expense (Benefit) | 20,156 | 12,885 | 14,999 |
Deferred Foreign Income Tax Expense (Benefit) | 858 | (858) | (1,751) |
Foreign Income Tax Expense (Benefit), Continuing Operations | 21,014 | 12,027 | 13,248 |
Current Income Tax Expense (Benefit) | 259,000 | 288,709 | 239,101 |
Deferred income tax benefit | 20,213 | (9,219) | 48,468 |
Income Tax Expense (Benefit) | 279,213 | 279,490 | 287,569 |
Income before provision for income taxes at statutory US federal income tax rate (35%) | 258,592 | 263,511 | 273,488 |
State income taxes, net of federal income tax benefit | 19,962 | 20,297 | 15,723 |
Other, net | 659 | (4,318) | (1,642) |
Deferred income tax assets | 164,858 | 171,571 | |
Valuation allowance | (2,437) | (2,861) | |
Deferred income tax liabilities | (616,703) | (602,635) | |
Deferred Tax Liabilities, Net | (454,282) | (433,925) | |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 0 | 386 | |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 5,093 | 5,521 | |
Undistributed Earnings of Foreign Subsidiaries | 130 | 114 | |
Property and equipment | (168,906) | (171,378) | |
Inventory valuation differences | (222,301) | (190,756) | |
Accrued expenses not currently deductible for tax | 63,992 | 67,725 | |
Share-based compensation | 11,752 | 20,902 | |
Accrued medical and workers compensation | 46,116 | 44,152 | |
Net operating loss carryforwards | 5,093 | 5,907 | |
Straight-line rent | 31,631 | 26,626 | |
Intangible assets | (225,496) | (240,501) | |
Other, net | 3,837 | 3,398 | |
Unrecognized tax benefits, beginning of period | 13,841 | 14,033 | 18,458 |
Increases related to prior period tax positions | 8,274 | 412 | 0 |
Decreases related to prior period tax positions | (1,600) | (2,120) | (4,841) |
Increases related to current period tax positions | 2,105 | 3,137 | 4,329 |
Settlements | (6,894) | (582) | (2,345) |
Expiration of statute of limitations | (1,780) | (1,039) | (1,568) |
Unrecognized tax benefits, end of period | 13,946 | 13,841 | 14,033 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1,947 | 149 | $ (3,684) |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 2,658 | 1,815 | |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 155 | 134 | |
Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | 0 | 1,103 | |
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | 153,011 | $ 145,809 | |
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | 3,000 | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | $ 5,000 |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Operating Leased Assets [Line Items] | |||
Lessor Leasing Arrangements, Operating Leases, Renewal Term | 5 years | ||
2,017 | $ 472,723 | ||
2,018 | 444,775 | ||
2,019 | 406,671 | ||
2,020 | 358,497 | ||
2,021 | 296,651 | ||
Thereafter | 1,181,760 | ||
Operating Leases, Future Minimum Payments Due | 3,161,077 | ||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | 18,789 | ||
Operating leases, Rent expense, gross | 547,744 | $ 544,143 | $ 525,363 |
Less: Sub-lease income | (7,379) | (7,569) | (9,966) |
Operating leases, Rent expense, net | 540,365 | 536,574 | 515,397 |
Land, Buildings and Improvements [Member] | |||
Operating Leased Assets [Line Items] | |||
Minimum rentals | 473,156 | 471,061 | 463,345 |
Contingency rentals | 440 | 303 | 488 |
Equipment [Member] | |||
Operating Leased Assets [Line Items] | |||
Minimum rentals | 13,165 | 11,632 | 8,230 |
Vehicles [Member] | |||
Operating Leased Assets [Line Items] | |||
Minimum rentals | $ 60,983 | $ 61,147 | $ 53,300 |
Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 10 years | ||
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 15 years |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Postemployment Benefits [Abstract] | |||
Defined Contribution Plan, Cost Recognized | $ 13,925 | $ 14,626 | $ 15,208 |
Deferred Compensation Liability, Classified, Noncurrent | $ 17,309 | $ 17,472 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Available for Grant | 5,045 | ||
Share-based compensation expense | $ 20,452 | $ 36,929 | $ 21,705 |
Deferred income tax benefit | 7,530 | 13,596 | 8,013 |
Proceeds from the issuance of common stock, primarily for employee stock purchase plan | 4,532 | 5,174 | 6,578 |
Tax withholdings related to the exercise of stock appreciation rights | (19,558) | (13,112) | (7,102) |
Excess tax benefit from share-based compensation | 22,429 | 13,002 | $ 10,487 |
Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 37,166 | ||
Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 7 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 6,633 | ||
Risk-free interest rate (1) | 1.20% | 1.30% | 1.20% |
Expected dividend yield | 0.20% | 0.10% | 0.20% |
Expected stock price volatility (2) | 27.70% | 27.30% | 27.00% |
Expected life of awards (in months) (3) | 55 months | 44 months | 49 months |
Closing share price for calculation of aggregate intrinsic value | $ 169.12 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Exercises in period, Intrinsic value | $ 0 | $ 0 | $ 3,747 |
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning of period | 561 | ||
Outstanding, Weighted Average Exercise Price, beginning of period | $ 67.51 | ||
Granted | 69 | ||
Granted, Weighted Average Exercise Price | $ 160.94 | ||
Granted, Weighted Average Grant Date Fair Value | $ 43.64 | $ 0 | $ 0 |
Exercised | (353) | ||
Exercised, Weighted Average Exercise Price | $ 65.17 | ||
Forfeited | (2) | ||
Forfeited, Weighted Average Exercise Price | $ 56.93 | ||
Outstanding, end of period | 275 | 561 | |
Outstanding, Weighted Average Exercise Price, end of period | $ 93.89 | $ 67.51 | |
Outstanding, Weighted Average Remaining Contractual Term | 3 years 1 month 25 days | ||
Outstanding, Intrinsic Value | $ 20,713 | ||
Vested and expected to vest, Number | 253 | ||
Vested and expected to vest, Weighted average exercise price | $ 87.84 | ||
Vested and expected to vest, Weighted average remaining contractual term | 2 years 10 months 12 days | ||
Vested and expected to vest, Aggregate intrinsic value | $ 20,526 | ||
Outstanding and Exercisable, Number | 207 | ||
Outstanding and Exercisable, Weighted Average Exercise Price | $ 71.57 | ||
Outstanding and Exercisable, Weighted Average Remaining Contractual Term | 2 years 1 month 10 days | ||
Outstanding and Exercisable, Intrinsic Value | $ 20,150 | ||
Total intrinsic value of exercises during period | $ 31,450 | $ 26,060 | $ 18,975 |
Restricted Stock and Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning of period | 270 | ||
Nonvested, end of period | 211 | 270 | |
Nonvested, Weighted Average Grant Date Fair Value | $ 142.65 | ||
Nonvested, Weighted Average Grant Date Fair Value | $ 151.70 | $ 142.65 | |
Granted | 88 | ||
Granted, Weighted Average Grant Date Fair Value | $ 155.51 | $ 153.61 | $ 139.43 |
Vested | (119) | ||
Vested, Weighted Average Grant Date Fair Value | $ 135.87 | ||
Forfeited | (28) | ||
Forfeited, Weighted Average Grant Date Fair Value | $ 144.27 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 16,089 | $ 15,268 | $ 8,293 |
Performance-based Stock Appreciation Rights (SARs) Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning of period | 753 | ||
Outstanding, Weighted Average Exercise Price, beginning of period | $ 118.89 | ||
Granted | 88 | ||
Granted, Weighted Average Exercise Price | $ 157.15 | ||
Granted, Weighted Average Grant Date Fair Value | $ 36.78 | $ 43.38 | $ 32.41 |
Change in Units Based on Performance | (588) | ||
Change in Units Based on Performance, Weighted Average Exercise Price | $ 142.01 | ||
Exercised | (123) | ||
Exercised, Weighted Average Exercise Price | $ 68.07 | ||
Forfeited | (16) | ||
Forfeited, Weighted Average Exercise Price | $ 112.96 | ||
Outstanding, end of period | 114 | 753 | |
Outstanding, Weighted Average Exercise Price, end of period | $ 86.95 | $ 118.89 | |
Outstanding, Weighted Average Remaining Contractual Term | 2 years 10 months 21 days | ||
Outstanding, Intrinsic Value | $ 9,355 | ||
Vested and expected to vest, Number | 113 | ||
Vested and expected to vest, Weighted average exercise price | $ 86.82 | ||
Vested and expected to vest, Weighted average remaining contractual term | 2 years 10 months 21 days | ||
Vested and expected to vest, Aggregate intrinsic value | $ 9,323 | ||
Outstanding and Exercisable, Number | 77 | ||
Outstanding and Exercisable, Weighted Average Exercise Price | $ 75.28 | ||
Outstanding and Exercisable, Weighted Average Remaining Contractual Term | 2 years 9 months 5 days | ||
Outstanding and Exercisable, Intrinsic Value | $ 7,266 | ||
Total intrinsic value of exercises during period | $ 11,556 | $ 8,475 | $ 3,814 |
Maximum potential payout of outstanding awards for Equity Instruments Other than Options | 1,295 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 802 | $ 14,659 | $ 6,161 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning of period | 183 | ||
Nonvested, end of period | 138 | 183 | |
Nonvested, Weighted Average Grant Date Fair Value | $ 81.81 | ||
Nonvested, Weighted Average Grant Date Fair Value | $ 162.71 | $ 81.81 | |
Granted | 427 | ||
Granted, Weighted Average Grant Date Fair Value | $ 163.76 | $ 0 | $ 123.32 |
Vested | (171) | ||
Vested, Weighted Average Grant Date Fair Value | $ 78.93 | ||
Change in Units Based on Performance | (288) | ||
Change in Units Based on Performance, Weighted Average Grant Date Fair Value | $ 166.23 | ||
Forfeited | (13) | ||
Forfeited, Weighted Average Grant Date Fair Value | $ 81.81 | ||
Maximum potential payout of outstanding awards for Equity Instruments Other than Options | 287 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 13,512 | $ 1,763 | $ 142 |
Deferred Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 896 | $ 2,071 | $ 862 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted | 9 | ||
Granted, Weighted Average Grant Date Fair Value | $ 146.30 | $ 156.83 | $ 122.80 |
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Available for Grant | 1,034 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 30 | 35 | 39 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (39,701) | $ (44,059) | $ (12,337) | $ 3,683 |
Other Comprehensive Income (Loss), Net of Tax | 4,358 | (31,722) | (16,020) | |
Unrealized Gain (Loss) on Postretirement Plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1,952 | 2,486 | 2,931 | 3,683 |
Other Comprehensive Income (Loss), Net of Tax | (534) | (445) | (752) | |
Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (41,653) | (46,545) | (15,268) | $ 0 |
Other Comprehensive Income (Loss), Net of Tax | $ 4,892 | $ (31,277) | $ (15,268) |
Segment and Related Informati70
Segment and Related Information (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting Information [Line Items] | |||
Percentage of Sales by Product Group | 100.00% | 100.00% | 100.00% |
Parts and Batteries [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of Sales by Product Group | 66.00% | 66.00% | 66.00% |
Accessories and Chemicals [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of Sales by Product Group | 19.00% | 19.00% | 19.00% |
Engine Maintenance [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of Sales by Product Group | 14.00% | 14.00% | 14.00% |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of Sales by Product Group | 1.00% | 1.00% | 1.00% |
Stores [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of Stores | 5,062 | ||
Branches [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of Stores | 127 |
Condensed Consolidating Finan71
Condensed Consolidating Financial Statements Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 135,178 | $ 90,782 | $ 104,671 | $ 1,112,471 |
Receivables, net | 641,252 | 597,788 | ||
Inventories, net | 4,325,868 | 4,174,768 | ||
Other current assets | 70,466 | 77,408 | ||
Total current assets | 5,172,764 | 4,940,746 | ||
Property and equipment, net of accumulated depreciation | 1,446,340 | 1,434,577 | ||
Goodwill | 990,877 | 989,484 | 995,426 | |
Intangible assets, net | 640,903 | 687,125 | ||
Other assets, net | 64,149 | 75,769 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany note receivable | 0 | 0 | ||
Due from intercompany, net | 0 | 0 | ||
Assets, Total | 8,315,033 | 8,127,701 | ||
Current portion of long-term debt | 306 | 598 | ||
Accounts payable | 3,086,177 | 3,203,922 | ||
Accrued expenses | 554,397 | 553,163 | ||
Other current liabilities | 35,166 | 39,794 | ||
Total current liabilities | 3,676,046 | 3,797,477 | ||
Long-term debt | 1,042,949 | 1,206,297 | ||
Deferred Income Tax Liabilities, Net | 454,282 | 433,925 | ||
Other long-term liabilities | 225,564 | 229,354 | ||
Intercompany note payable | 0 | 0 | ||
Due to intercompany, net | 0 | 0 | ||
Commitments and Contingencies | ||||
Stockholders' equity | 2,916,192 | 2,460,648 | 2,002,912 | 1,516,205 |
Liabilities and Stockholders' Equity, Total | 8,315,033 | 8,127,701 | ||
Parent Company [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 22 | 8 | 9 | 9 |
Receivables, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Other current assets | 0 | 178 | ||
Total current assets | 22 | 186 | ||
Property and equipment, net of accumulated depreciation | 128 | 154 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets, net | 4,634 | 9,500 | ||
Investment in subsidiaries | 3,008,856 | 2,523,076 | ||
Intercompany note receivable | 1,048,424 | 1,048,161 | ||
Due from intercompany, net | 0 | 0 | ||
Assets, Total | 4,062,064 | 3,581,077 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 103 | ||
Accrued expenses | 1,505 | 2,378 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 1,505 | 2,481 | ||
Long-term debt | 1,042,949 | 1,041,584 | ||
Deferred Income Tax Liabilities, Net | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Intercompany note payable | 0 | 0 | ||
Due to intercompany, net | 101,418 | 76,364 | ||
Commitments and Contingencies | ||||
Stockholders' equity | 2,916,192 | 2,460,648 | ||
Liabilities and Stockholders' Equity, Total | 4,062,064 | 3,581,077 | ||
Guarantor Subsidiaries [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 78,543 | 63,458 | 65,345 | 1,106,766 |
Receivables, net | 619,229 | 568,106 | ||
Inventories, net | 4,126,465 | 4,009,335 | ||
Other current assets | 69,385 | 78,904 | ||
Total current assets | 4,893,622 | 4,719,803 | ||
Property and equipment, net of accumulated depreciation | 1,436,459 | 1,425,319 | ||
Goodwill | 943,359 | 943,319 | ||
Intangible assets, net | 595,596 | 640,583 | ||
Other assets, net | 63,376 | 75,025 | ||
Investment in subsidiaries | 375,420 | 302,495 | ||
Intercompany note receivable | 0 | 0 | ||
Due from intercompany, net | 0 | 0 | ||
Assets, Total | 8,307,832 | 8,106,544 | ||
Current portion of long-term debt | 306 | 598 | ||
Accounts payable | 2,813,937 | 2,903,287 | ||
Accrued expenses | 526,652 | 529,076 | ||
Other current liabilities | 32,202 | 36,270 | ||
Total current liabilities | 3,373,097 | 3,469,231 | ||
Long-term debt | 0 | 164,713 | ||
Deferred Income Tax Liabilities, Net | 439,283 | 425,094 | ||
Other long-term liabilities | 223,481 | 227,556 | ||
Intercompany note payable | 1,048,424 | 1,048,161 | ||
Due to intercompany, net | 214,691 | 248,713 | ||
Commitments and Contingencies | ||||
Stockholders' equity | 3,008,856 | 2,523,076 | ||
Liabilities and Stockholders' Equity, Total | 8,307,832 | 8,106,544 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 56,635 | 27,324 | 39,326 | 5,696 |
Receivables, net | 22,023 | 29,682 | ||
Inventories, net | 199,403 | 165,433 | ||
Other current assets | 1,153 | 1,376 | ||
Total current assets | 279,214 | 223,815 | ||
Property and equipment, net of accumulated depreciation | 9,753 | 9,104 | ||
Goodwill | 47,518 | 46,165 | ||
Intangible assets, net | 45,307 | 46,542 | ||
Other assets, net | 773 | 745 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany note receivable | 0 | 0 | ||
Due from intercompany, net | 316,109 | 325,077 | ||
Assets, Total | 698,674 | 651,448 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 272,240 | 300,532 | ||
Accrued expenses | 26,312 | 24,759 | ||
Other current liabilities | 2,986 | 3,532 | ||
Total current liabilities | 301,538 | 328,823 | ||
Long-term debt | 0 | 0 | ||
Deferred Income Tax Liabilities, Net | 19,633 | 18,332 | ||
Other long-term liabilities | 2,083 | 1,798 | ||
Intercompany note payable | 0 | 0 | ||
Due to intercompany, net | 0 | 0 | ||
Commitments and Contingencies | ||||
Stockholders' equity | 375,420 | 302,495 | ||
Liabilities and Stockholders' Equity, Total | 698,674 | 651,448 | ||
Consolidation, Eliminations [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | (22) | (8) | $ (9) | $ 0 |
Receivables, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Other current assets | (72) | (3,050) | ||
Total current assets | (94) | (3,058) | ||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets, net | (4,634) | (9,501) | ||
Investment in subsidiaries | (3,384,276) | (2,825,571) | ||
Intercompany note receivable | (1,048,424) | (1,048,161) | ||
Due from intercompany, net | (316,109) | (325,077) | ||
Assets, Total | (4,753,537) | (4,211,368) | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses | (72) | (3,050) | ||
Other current liabilities | (22) | (8) | ||
Total current liabilities | (94) | (3,058) | ||
Long-term debt | 0 | 0 | ||
Deferred Income Tax Liabilities, Net | (4,634) | (9,501) | ||
Other long-term liabilities | 0 | 0 | ||
Intercompany note payable | (1,048,424) | (1,048,161) | ||
Due to intercompany, net | (316,109) | (325,077) | ||
Commitments and Contingencies | ||||
Stockholders' equity | (3,384,276) | (2,825,571) | ||
Liabilities and Stockholders' Equity, Total | $ (4,753,537) | $ (4,211,368) |
Condensed Consolidating Finan72
Condensed Consolidating Financial Statements Condensed Consolidating Income Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Jan. 02, 2016 | Oct. 10, 2015 | Jul. 18, 2015 | Apr. 23, 2016 | Apr. 25, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | $ (2,082,891) | $ (2,248,855) | $ (2,256,155) | $ (2,033,545) | $ (2,295,203) | $ (2,370,037) | $ (2,979,778) | $ (3,038,233) | $ (9,567,679) | $ (9,737,018) | $ (9,843,861) |
Cost of sales, including purchasing and warehousing costs | (5,311,764) | (5,314,246) | (5,390,248) | ||||||||
Gross Profit | (907,564) | (988,205) | (1,010,257) | (909,172) | (1,032,387) | (1,087,289) | (1,349,889) | (1,393,924) | (4,255,915) | (4,422,772) | (4,453,613) |
Selling, general and administrative expenses | 3,468,317 | 3,596,992 | 3,601,903 | ||||||||
Operating Income (Loss) | 787,598 | 825,780 | 851,710 | ||||||||
Interest Income (Expense), Nonoperating, Net | (59,910) | (65,408) | (73,408) | ||||||||
Other income (expense), net | 11,147 | (7,484) | 3,092 | ||||||||
Total other, net | (48,763) | (72,892) | (70,316) | ||||||||
Income before provision for income taxes | 738,835 | 752,888 | 781,394 | ||||||||
Provision for income taxes | 279,213 | 279,490 | 287,569 | ||||||||
Income before equity in earnings of subsidiaries | 459,622 | 473,398 | 493,825 | ||||||||
Equity in earnings of subsidiary | 0 | 0 | 0 | ||||||||
Net income | $ 62,365 | $ 113,844 | $ 124,600 | $ 54,819 | $ 120,469 | $ 149,998 | $ 158,813 | $ 148,112 | 459,622 | 473,398 | 493,825 |
Parent Company [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Cost of sales, including purchasing and warehousing costs | 0 | 0 | 0 | ||||||||
Gross Profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 28,695 | 24,186 | 14,504 | ||||||||
Operating Income (Loss) | (28,695) | (24,186) | (14,504) | ||||||||
Interest Income (Expense), Nonoperating, Net | (52,081) | (52,210) | (52,946) | ||||||||
Other income (expense), net | 81,683 | 76,987 | 67,470 | ||||||||
Total other, net | 29,602 | 24,777 | 14,524 | ||||||||
Income before provision for income taxes | 907 | 591 | 20 | ||||||||
Provision for income taxes | 1,588 | 1,220 | 296 | ||||||||
Income before equity in earnings of subsidiaries | (681) | (629) | (276) | ||||||||
Equity in earnings of subsidiary | 460,303 | 474,027 | 494,101 | ||||||||
Net income | 459,622 | 473,398 | 493,825 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | (9,254,477) | (9,432,116) | (9,530,953) | ||||||||
Cost of sales, including purchasing and warehousing costs | (5,171,953) | (5,172,938) | (5,231,421) | ||||||||
Gross Profit | (4,082,524) | (4,259,178) | (4,299,532) | ||||||||
Selling, general and administrative expenses | 3,402,323 | 3,536,697 | 3,541,370 | ||||||||
Operating Income (Loss) | 680,201 | 722,481 | 758,162 | ||||||||
Interest Income (Expense), Nonoperating, Net | (7,897) | (13,378) | (20,334) | ||||||||
Other income (expense), net | (19,558) | (19,699) | (9,140) | ||||||||
Total other, net | (27,455) | (33,077) | (29,474) | ||||||||
Income before provision for income taxes | 652,746 | 689,404 | 728,688 | ||||||||
Provision for income taxes | 260,155 | 268,571 | 277,769 | ||||||||
Income before equity in earnings of subsidiaries | 392,591 | 420,833 | 450,919 | ||||||||
Equity in earnings of subsidiary | 67,712 | 53,194 | 43,182 | ||||||||
Net income | 460,303 | 474,027 | 494,101 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | (556,747) | (593,606) | (527,595) | ||||||||
Cost of sales, including purchasing and warehousing costs | (383,356) | (430,012) | (373,514) | ||||||||
Gross Profit | (173,391) | (163,594) | (154,081) | ||||||||
Selling, general and administrative expenses | 92,287 | 93,852 | 102,370 | ||||||||
Operating Income (Loss) | 81,104 | 69,742 | 51,711 | ||||||||
Interest Income (Expense), Nonoperating, Net | 68 | 180 | (128) | ||||||||
Other income (expense), net | 4,010 | (7,029) | 1,103 | ||||||||
Total other, net | 4,078 | (6,849) | 975 | ||||||||
Income before provision for income taxes | 85,182 | 62,893 | 52,686 | ||||||||
Provision for income taxes | 17,470 | 9,699 | 9,504 | ||||||||
Income before equity in earnings of subsidiaries | 67,712 | 53,194 | 43,182 | ||||||||
Equity in earnings of subsidiary | 0 | 0 | 0 | ||||||||
Net income | 67,712 | 53,194 | 43,182 | ||||||||
Consolidation, Eliminations [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 243,545 | 288,704 | 214,687 | ||||||||
Cost of sales, including purchasing and warehousing costs | 243,545 | 288,704 | 214,687 | ||||||||
Gross Profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | (54,988) | (57,743) | (56,341) | ||||||||
Operating Income (Loss) | 54,988 | 57,743 | 56,341 | ||||||||
Interest Income (Expense), Nonoperating, Net | 0 | 0 | 0 | ||||||||
Other income (expense), net | (54,988) | (57,743) | (56,341) | ||||||||
Total other, net | (54,988) | (57,743) | (56,341) | ||||||||
Income before provision for income taxes | 0 | 0 | 0 | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Income before equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiary | (528,015) | (527,221) | (537,283) | ||||||||
Net income | $ (528,015) | $ (527,221) | $ (537,283) |
Condensed Consolidating Finan73
Condensed Consolidating Financial Statements Condensed Consolidating Comprehensive Income Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Jan. 02, 2016 | Oct. 10, 2015 | Jul. 18, 2015 | Apr. 23, 2016 | Apr. 25, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | $ 62,365 | $ 113,844 | $ 124,600 | $ 54,819 | $ 120,469 | $ 149,998 | $ 158,813 | $ 148,112 | $ 459,622 | $ 473,398 | $ 493,825 |
Changes in net unrecognized other postretirement benefit costs, net of tax | (534) | (445) | (752) | ||||||||
Currency translation | 4,892 | (31,277) | (15,268) | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss) | 4,358 | (31,722) | (16,020) | ||||||||
Comprehensive Income (Loss) | 463,980 | 441,676 | 477,805 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | 459,622 | 473,398 | 493,825 | ||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | 0 | 0 | 0 | ||||||||
Currency translation | 0 | 0 | 0 | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | 4,358 | (31,722) | (16,020) | ||||||||
Total other comprehensive income (loss) | 4,358 | (31,722) | (16,020) | ||||||||
Comprehensive Income (Loss) | 463,980 | 441,676 | 477,805 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | 460,303 | 474,027 | 494,101 | ||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | (534) | (445) | (752) | ||||||||
Currency translation | 0 | 0 | 0 | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | 4,892 | (31,277) | (15,268) | ||||||||
Total other comprehensive income (loss) | 4,358 | (31,722) | (16,020) | ||||||||
Comprehensive Income (Loss) | 464,661 | 442,305 | 478,081 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | 67,712 | 53,194 | 43,182 | ||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | 0 | 0 | 0 | ||||||||
Currency translation | 4,892 | (31,277) | (15,268) | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss) | 4,892 | (31,277) | (15,268) | ||||||||
Comprehensive Income (Loss) | 72,604 | 21,917 | 27,914 | ||||||||
Consolidation, Eliminations [Member] | |||||||||||
Condensed Consolidating Comprehensive Income Statement [Line Items] | |||||||||||
Net income | (528,015) | (527,221) | (537,283) | ||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax | 0 | 0 | 0 | ||||||||
Currency translation | 0 | 0 | 0 | ||||||||
Equity in other comprehensive (loss) income of subsidiaries | (9,250) | 62,999 | 31,288 | ||||||||
Total other comprehensive income (loss) | (9,250) | 62,999 | 31,288 | ||||||||
Comprehensive Income (Loss) | $ (537,265) | $ (464,222) | $ (505,995) |
Condensed Consolidating Finan74
Condensed Consolidating Financial Statements Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | $ 500,874 | $ 689,642 | $ 708,991 |
Purchases of property and equipment | (259,559) | (234,747) | (228,446) |
Business acquisitions, net of cash acquired | (4,697) | (18,889) | (2,060,783) |
Proceeds from sales of property and equipment | 2,212 | 270 | 992 |
Net cash used in investing activities | (262,044) | (253,366) | (2,288,237) |
(Decrease) increase in bank overdrafts | (5,573) | (2,922) | 16,219 |
Borrowings under credit facilities | 799,600 | 618,300 | 2,238,200 |
Payments on credit facilities | (959,600) | (1,041,700) | (1,654,800) |
Dividends paid | (17,738) | (17,649) | (17,580) |
Proceeds from the issuance of common stock, primarily for employee stock purchase plan | 4,532 | 5,174 | 6,578 |
Tax withholdings related to the exercise of stock appreciation rights | (19,558) | (13,112) | (7,102) |
Excess tax benefit from share-based compensation | 22,429 | 13,002 | 10,487 |
Repurchase of common stock | (18,393) | (6,665) | (5,154) |
Contingent consideration related to previous business acquisition | 0 | 0 | 10,047 |
Other | (390) | (380) | (890) |
Net Cash Provided by (Used in) Financing Activities | (194,691) | (445,952) | 575,911 |
Effect of exchange rate changes on cash | 257 | (4,213) | (4,465) |
Net (decrease) increase in cash and cash equivalents | 44,396 | (13,889) | (1,007,800) |
Cash and cash equivalents, beginning of period | 90,782 | 104,671 | 1,112,471 |
Cash and cash equivalents, end of period | 135,178 | 90,782 | 104,671 |
Parent Company [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | 14 | (1) | 0 |
Purchases of property and equipment | 0 | 0 | 0 |
Business acquisitions, net of cash acquired | 0 | 0 | 0 |
Proceeds from sales of property and equipment | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
(Decrease) increase in bank overdrafts | 0 | 0 | 0 |
Borrowings under credit facilities | 0 | 0 | 0 |
Payments on credit facilities | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Proceeds from the issuance of common stock, primarily for employee stock purchase plan | 0 | 0 | 0 |
Tax withholdings related to the exercise of stock appreciation rights | 0 | 0 | 0 |
Excess tax benefit from share-based compensation | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | 0 |
Contingent consideration related to previous business acquisition | 0 | ||
Other | 0 | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | 0 | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 14 | (1) | 0 |
Cash and cash equivalents, beginning of period | 8 | 9 | 9 |
Cash and cash equivalents, end of period | 22 | 8 | 9 |
Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | 468,751 | 696,580 | 666,566 |
Purchases of property and equipment | (257,159) | (232,591) | (224,894) |
Business acquisitions, net of cash acquired | (4,697) | (18,583) | (2,059,987) |
Proceeds from sales of property and equipment | 2,210 | 266 | 974 |
Net cash used in investing activities | (259,646) | (250,908) | (2,283,907) |
(Decrease) increase in bank overdrafts | (4,902) | (4,529) | 16,228 |
Borrowings under credit facilities | 799,600 | 618,300 | 2,238,200 |
Payments on credit facilities | (959,600) | (1,041,700) | (1,654,800) |
Dividends paid | (17,738) | (17,649) | (17,580) |
Proceeds from the issuance of common stock, primarily for employee stock purchase plan | 4,532 | 5,174 | 6,578 |
Tax withholdings related to the exercise of stock appreciation rights | (19,558) | (13,112) | (7,102) |
Excess tax benefit from share-based compensation | 22,429 | 13,002 | 10,487 |
Repurchase of common stock | (18,393) | (6,665) | (5,154) |
Contingent consideration related to previous business acquisition | 10,047 | ||
Other | (390) | (380) | (890) |
Net Cash Provided by (Used in) Financing Activities | (194,020) | (447,559) | 575,920 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 15,085 | (1,887) | (1,041,421) |
Cash and cash equivalents, beginning of period | 63,458 | 65,345 | 1,106,766 |
Cash and cash equivalents, end of period | 78,543 | 63,458 | 65,345 |
Non-Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | 32,109 | (6,937) | 42,425 |
Purchases of property and equipment | (2,400) | (2,156) | (3,552) |
Business acquisitions, net of cash acquired | 0 | (306) | (796) |
Proceeds from sales of property and equipment | 2 | 4 | 18 |
Net cash used in investing activities | (2,398) | (2,458) | (4,330) |
(Decrease) increase in bank overdrafts | (657) | 1,606 | 0 |
Borrowings under credit facilities | 0 | 0 | 0 |
Payments on credit facilities | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Proceeds from the issuance of common stock, primarily for employee stock purchase plan | 0 | 0 | 0 |
Tax withholdings related to the exercise of stock appreciation rights | 0 | 0 | 0 |
Excess tax benefit from share-based compensation | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | 0 |
Contingent consideration related to previous business acquisition | 0 | ||
Other | 0 | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | (657) | 1,606 | 0 |
Effect of exchange rate changes on cash | 257 | (4,213) | (4,465) |
Net (decrease) increase in cash and cash equivalents | 29,311 | (12,002) | 33,630 |
Cash and cash equivalents, beginning of period | 27,324 | 39,326 | 5,696 |
Cash and cash equivalents, end of period | 56,635 | 27,324 | 39,326 |
Consolidation, Eliminations [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 | 0 |
Purchases of property and equipment | 0 | 0 | 0 |
Business acquisitions, net of cash acquired | 0 | 0 | 0 |
Proceeds from sales of property and equipment | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
(Decrease) increase in bank overdrafts | (14) | 1 | (9) |
Borrowings under credit facilities | 0 | 0 | 0 |
Payments on credit facilities | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Proceeds from the issuance of common stock, primarily for employee stock purchase plan | 0 | 0 | 0 |
Tax withholdings related to the exercise of stock appreciation rights | 0 | 0 | 0 |
Excess tax benefit from share-based compensation | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | 0 |
Contingent consideration related to previous business acquisition | 0 | ||
Other | 0 | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | (14) | 1 | (9) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | (14) | 1 | (9) |
Cash and cash equivalents, beginning of period | (8) | (9) | 0 |
Cash and cash equivalents, end of period | $ (22) | $ (8) | $ (9) |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Jan. 02, 2016 | Oct. 10, 2015 | Jul. 18, 2015 | Apr. 23, 2016 | Apr. 25, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 2,082,891 | $ 2,248,855 | $ 2,256,155 | $ 2,033,545 | $ 2,295,203 | $ 2,370,037 | $ 2,979,778 | $ 3,038,233 | $ 9,567,679 | $ 9,737,018 | $ 9,843,861 |
Gross Profit | 907,564 | 988,205 | 1,010,257 | 909,172 | 1,032,387 | 1,087,289 | 1,349,889 | 1,393,924 | 4,255,915 | 4,422,772 | 4,453,613 |
Net income | $ 62,365 | $ 113,844 | $ 124,600 | $ 54,819 | $ 120,469 | $ 149,998 | $ 158,813 | $ 148,112 | $ 459,622 | $ 473,398 | $ 493,825 |
Basic earnings per common share | $ 0.84 | $ 1.54 | $ 1.69 | $ 0.75 | $ 1.64 | $ 2.04 | $ 2.16 | $ 2.02 | $ 6.22 | $ 6.45 | $ 6.75 |
Diluted earnings per common share | $ 0.84 | $ 1.53 | $ 1.68 | $ 0.74 | $ 1.63 | $ 2.03 | $ 2.14 | $ 2 | $ 6.20 | $ 6.40 | $ 6.71 |
Valuation and Qualifying Acco76
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for Doubtful Accounts Receivable, Current, Beginning of Period | $ 25,758 | ||
Allowance for Doubtful Accounts Receivable, Current, End of Period | 29,164 | $ 25,758 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for Doubtful Accounts Receivable, Current, Beginning of Period | 25,758 | 16,152 | $ 13,295 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 24,597 | 22,067 | 17,182 |
Valuation Allowances and Reserves, Deductions | (21,191) | (12,461) | (14,325) |
Allowance for Doubtful Accounts Receivable, Current, End of Period | $ 29,164 | $ 25,758 | $ 16,152 |