Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 18, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | FASTENAL CO | ||
Entity Central Index Key | 815,556 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 285,931,529 | ||
Entity Public Float | $ 13,762,835,828 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Trading Symbol | fast |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 167.2 | $ 116.9 |
Trade accounts receivable, net of allowance for doubtful accounts of $12.8 and $11.9, respectively | 714.3 | 607.8 |
Inventories | 1,278.7 | 1,092.9 |
Prepaid income taxes | 9 | 0 |
Other current assets | 147 | 118.1 |
Total current assets | 2,316.2 | 1,935.7 |
Property and equipment, net | 924.8 | 893.6 |
Other assets | 80.5 | 81.2 |
Total assets | 3,321.5 | 2,910.5 |
Current liabilities: | ||
Current portion of debt | 3 | 3 |
Accounts payable | 193.6 | 147.5 |
Accrued expenses | 240.8 | 194 |
Income taxes payable | 0 | 6.5 |
Total current liabilities | 437.4 | 351 |
Long-term debt | 497 | 412 |
Deferred income taxes | 84.4 | 50.6 |
Commitments and contingencies (Notes 5, 8, 9, and 10) | ||
Stockholders' equity: | ||
Preferred stock: $0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock: $0.01 par value, 400,000,000 shares authorized, 285,901,919 and 287,591,536 shares issued and outstanding, respectively | 2.9 | 2.9 |
Additional paid-in capital | 3 | 8.5 |
Retained earnings | 2,341.6 | 2,110.6 |
Accumulated other comprehensive loss | (44.8) | (25.1) |
Total stockholders' equity | 2,302.7 | 2,096.9 |
Total liabilities and stockholders' equity | $ 3,321.5 | $ 2,910.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Trade accounts receivable, allowance for doubtful accounts | $ 12.8 | $ 11.9 |
Preferred stock: | ||
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Authorized (in shares) | 5,000,000 | 5,000,000 |
Issued (in shares) | 0 | 0 |
Outstanding (in shares) | 0 | 0 |
Common stock: | ||
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Authorized (in shares) | 400,000,000 | 400,000,000 |
Issued (in shares) | 285,901,919 | 287,591,536 |
Outstanding (in shares) | 285,901,919 | 287,591,536 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 4,965.1 | $ 4,390.5 | $ 3,962 |
Cost of sales | 2,566.2 | 2,226.9 | 1,997.2 |
Gross profit | 2,398.9 | 2,163.6 | 1,964.8 |
Operating and administrative expenses | 1,400.2 | 1,282.8 | 1,169.5 |
Gain on sale of property and equipment | (0.5) | (1) | (0.5) |
Operating income | 999.2 | 881.8 | 795.8 |
Interest income | 0.4 | 0.4 | 0.4 |
Interest expense | (12.6) | (9.1) | (6.5) |
Earnings before income taxes | 987 | 873.1 | 789.7 |
Income tax expense | 235.1 | 294.5 | 290.3 |
Net earnings | $ 751.9 | $ 578.6 | $ 499.4 |
Basic net earnings per share (in dollars per share) | $ 2.62 | $ 2.01 | $ 1.73 |
Diluted net earnings per share (in dollars per share) | $ 2.62 | $ 2.01 | $ 1.73 |
Basic weighted average shares outstanding (in shares) | 286,966,917 | 288,208,435 | 288,949,525 |
Diluted weighted average shares outstanding (in shares) | 287,162,764 | 288,342,733 | 289,157,523 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 751.9 | $ 578.6 | $ 499.4 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments (net of tax of $0.0 in 2018, 2017, and 2016) | (19.7) | 22.2 | (0.9) |
Comprehensive income | $ 732.2 | $ 600.8 | $ 498.5 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Dec. 31, 2015 | 289,600,000 | ||||
Balance at Dec. 31, 2015 | $ 1,801.4 | $ 2.9 | $ 2 | $ 1,842.9 | $ (46.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividends paid in cash | (346.6) | (346.6) | |||
Purchases of common stock (in shares) | (1,600,000) | ||||
Purchases of common stock | (59.5) | $ 0 | (3.9) | (55.6) | |
Stock options exercised (in shares) | 1,200,000 | ||||
Stock options exercised | 29.3 | $ 0 | 29.3 | ||
Stock-based compensation | 4.1 | 4.1 | |||
Excess tax benefits from stock-based compensation | 5.9 | 5.9 | |||
Net earnings | 499.4 | 499.4 | |||
Other comprehensive income (loss) | (0.9) | (0.9) | |||
Balance (in shares) at Dec. 31, 2016 | 289,200,000 | ||||
Balance at Dec. 31, 2016 | 1,933.1 | $ 2.9 | 37.4 | 1,940.1 | (47.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividends paid in cash | (369.1) | (369.1) | |||
Purchases of common stock (in shares) | (1,900,000) | ||||
Purchases of common stock | (82.6) | $ 0 | (43.6) | (39) | |
Stock options exercised (in shares) | 300,000 | ||||
Stock options exercised | 9.5 | $ 0 | 9.5 | ||
Stock-based compensation | 5.2 | 5.2 | |||
Net earnings | 578.6 | 578.6 | |||
Other comprehensive income (loss) | $ 22.2 | 22.2 | |||
Balance (in shares) at Dec. 31, 2017 | 287,591,536 | 287,600,000 | |||
Balance at Dec. 31, 2017 | $ 2,096.9 | $ 2.9 | 8.5 | 2,110.6 | (25.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividends paid in cash | (441.9) | (441.9) | |||
Purchases of common stock (in shares) | (2,000,000) | ||||
Purchases of common stock | (103) | $ 0 | (24) | (79) | |
Stock options exercised (in shares) | 300,000 | ||||
Stock options exercised | 13.4 | $ 0 | 13.4 | ||
Stock-based compensation | 5.1 | 5.1 | |||
Net earnings | 751.9 | 751.9 | |||
Other comprehensive income (loss) | $ (19.7) | (19.7) | |||
Balance (in shares) at Dec. 31, 2018 | 285,901,919 | 285,900,000 | |||
Balance at Dec. 31, 2018 | $ 2,302.7 | $ 2.9 | $ 3 | $ 2,341.6 | $ (44.8) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net earnings | $ 751.9 | $ 578.6 | $ 499.4 |
Adjustments to reconcile net earnings to net cash provided by operating activities, net of acquisitions: | |||
Depreciation of property and equipment | 134.1 | 123.6 | 103.5 |
Gain on sale of property and equipment | (0.5) | (1) | (0.5) |
Bad debt expense | 8.1 | 8.2 | 8.6 |
Deferred income taxes | 33.8 | (30) | 25.6 |
Stock-based compensation | 5.1 | 5.2 | 4.1 |
Amortization of intangible assets | 4.1 | 3.8 | 0.5 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Trade accounts receivable | (120.3) | (103.7) | (40.5) |
Inventories | (193.3) | (76.3) | (80.9) |
Other current assets | (28.9) | (15.6) | 29.1 |
Accounts payable | 46.1 | 36.3 | (17.2) |
Accrued expenses | 46.8 | 37.6 | (28.6) |
Income taxes | (15.5) | 19.4 | 15.5 |
Other | 2.7 | (0.9) | 1.3 |
Net cash provided by operating activities | 674.2 | 585.2 | 519.9 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (176.3) | (119.9) | (189.5) |
Proceeds from sale of property and equipment | 9.5 | 7.4 | 6.5 |
Cash paid for acquisitions | (3.7) | (58.7) | 0 |
Other | (3.4) | (8.1) | (5.1) |
Net cash used in investing activities | (173.9) | (179.3) | (188.1) |
Cash flows from financing activities: | |||
Proceeds from debt obligations | 980 | 1,015 | 950 |
Payments against debt obligations | (895) | (980) | (920) |
Proceeds from exercise of stock options | 13.4 | 9.5 | 29.3 |
Purchases of common stock | (103) | (82.6) | (59.5) |
Payments of dividends | (441.9) | (369.1) | (346.6) |
Net cash used in financing activities | (446.5) | (407.2) | (346.8) |
Effect of exchange rate changes on cash and cash equivalents | (3.5) | 5.5 | (1.3) |
Net increase (decrease) in cash and cash equivalents | 50.3 | 4.2 | (16.3) |
Cash and cash equivalents at beginning of year | 116.9 | 112.7 | 129 |
Cash and cash equivalents at end of year | 167.2 | 116.9 | 112.7 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 12.6 | 8.7 | 6.2 |
Net cash paid for income taxes | $ 215.3 | $ 304.1 | $ 248.3 |
Business Overview and Summary o
Business Overview and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Business Overview and Summary of Significant Accounting Policies | Note 1. Business Overview and Summary of Significant Accounting Policies Business Overview Fastenal is a leader in the wholesale distribution of industrial and construction supplies operating a branch-based business (with an increasing number of Onsite locations). Collectively we refer to our branches and Onsite locations as in-market locations. We have approximately 3,100 in-market locations located primarily in North America. Principles of Consolidation The consolidated financial statements include the accounts of Fastenal Company and its subsidiaries (collectively referred to as 'Fastenal' or by terms such as 'we', 'our', or 'us'). All material intercompany balances and transactions have been eliminated in consolidation. Revenue Recognition Net sales include products and shipping and handling charges, net of estimates for product returns and any related sales incentives. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring the promised products to the customer, with the majority of revenue recognized at the point in time the customer obtains control of the products. We recognize revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. We estimate product returns based on historical return rates. Using probability assessments, we estimate sales incentives expected to be paid over the term of the contract. The majority of our contracts have a single performance obligation and are short term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Accounts Receivable Credit is extended based upon an evaluation of the customer's financial condition. Accounts receivable are stated at their estimated net realizable value. The allowance for doubtful accounts is based on an analysis of customer accounts and our historical experience with accounts receivable write-offs. Foreign Currency Translation and Transactions The functional currency of our foreign operations is typically the applicable local currency. The functional currency is translated into United States dollars for balance sheet accounts, except retained earnings, using current exchange rates as of the balance sheet date, for retained earnings at historical exchange rates, and for revenue and expense accounts using a weighted average exchange rate during the applicable period. The translation adjustments are deferred as a separate component of stockholders' equity captioned accumulated other comprehensive income (loss). Gains or losses resulting from transactions denominated in foreign currencies are included in cost of sales or operating and administrative expenses. Cash and Cash Equivalents We consider all investments purchased with original maturities of three months or less to be cash equivalents. Inventories Inventories, consisting of finished goods merchandise held for resale, are stated at the lower of cost (first in, first out method) or net realizable value. We establish a reserve for excess, slow-moving, and obsolete inventory that is equal to the difference between the cost and estimated net realizable value for that inventory. These reserves are based on a review and comparison of the current inventory levels to projected and historical sales of inventory. Property and Equipment Property and equipment are stated at cost. Depreciation on property and equipment is provided for using the straight-line method over the anticipated economic useful lives of the related property. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by the asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. There were no impairments recorded during any of the three years reported in these consolidated financial statements. Leases We lease space under operating leases for certain distribution centers, branches, and manufacturing locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Any such terms are recognized as rent expense over the term of the lease. Further, the leases do not contain contingent rent provisions. Leasehold improvements on operating leases are amortized over their estimated service lives on a straight-line basis, or the remaining lease term, whichever is shorter. We lease certain semi-tractors, pick-ups, and equipment under operating leases. Other Long-Lived Assets Other assets consist of prepaid deposits, goodwill, and other definite-lived intangible assets. Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill is reviewed for impairment annually. The identifiable intangible assets are amortized on a straight-line basis over their estimated life. Accounting Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from those estimates. Insurance Reserves We are self-insured for certain losses relating to workers' compensation, automobile, health, and general liability costs. Specific stop-loss coverage is provided for catastrophic claims in order to limit exposure to significant claims. Self-insurance liabilities are based on our estimate of reported claims and claims incurred but not yet reported. Product Warranties We offer a basic limited warranty for certain of our products. The specific terms and conditions of those warranties vary depending upon the product sold. We typically recoup these costs through product warranties we hold with the original equipment manufacturers. Our warranty expense has historically been minimal. Stock-Based Compensation We estimate the value of stock option grants using a Black-Scholes valuation model. Stock-based compensation expense is recognized on a straight-line basis over the vesting period. Our stock-based compensation expense is recorded in operating and administrative expenses. Income Taxes We account for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits in income tax expense. Earnings Per Share Basic net earnings per share is calculated using net earnings available to common stockholders divided by the weighted average number of shares of common stock outstanding during the year. Diluted net earnings per share is similar to basic net earnings per share except that the weighted average number of shares of common stock outstanding includes the incremental shares assumed to be issued upon the exercise of stock options considered to be 'in-the-money' (i.e., when the market price of our stock is greater than the exercise price of our outstanding stock options). Segment Reporting We have determined that for our North American operations we meet the aggregation criteria outlined in the accounting standards as our various operations have similar (1) economic characteristics, (2) products and services, (3) customers, (4) distribution channels, and (5) regulatory environments. Considering the insignificance of our operations outside of North America, we report as a single business segment. Recently Adopted Accounting Pronouncements Effective January 1, 2018, we adopted the Financial Accounting Standards Board ('FASB') Accounting Standards Update ('ASU') 2014-09, Revenue from Contracts with Customers (Topic 606) , and ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date, which deferred the effective date of ASU 2014-09 by one year. ASU 2014-09 supersedes the revenue recognition requirements in ASC 605, Revenue Recognition , and is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The adoption of ASU 2014-09, using the modified retrospective approach, had no significant impact on our results of operations, cash flows, or financial position. Revenue continues to be recognized at a point in time for our product sales when products are delivered to or picked up by the customer and revenue for shipping and handling charges continues to be recognized when products are delivered to or picked up by the customer. We continue to reduce revenue for estimates of sales incentives based on probability estimates and for product returns based on historical return rates. Additional information and disclosures required by this new standard are contained in Note 2, ' Revenue '. In March 2018, we adopted FASB ASU 2018-05, Income Taxes (Topic 740) : Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which updates the income tax accounting in U.S. GAAP to reflect the Securities and Exchange Commission ('SEC') interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act (the 'Tax Act') was signed into law. Additional information regarding the adoption of this standard is contained in Note 7, ' Income Taxes '. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases , which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those reporting periods, with early adoption permitted. The original guidance required application on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842 , which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases , as the date of initial application of transition. Based on the effective date, this guidance will apply and we will adopt this ASU beginning on January 1, 2019 and plan to elect the transition option provided under ASU 2018-11. We expect this standard will have a material effect on our Consolidated Balance Sheets with the recognition of new right of use assets and lease liabilities for all operating leases, except pick-up truck leases where we expect to elect the short-term lease recognition exemption, as these leases typically have a non-cancelable lease term of approximately one year. Upon adoption, we estimate both assets and liabilities on our Consolidated Balance Sheets will increase by approximately $ 250.0 . Changes in our lease population or changes in incremental borrowing rates may alter this estimate. We will expand our consolidated financial statement disclosures upon adoption of this standard. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 2. Revenue Disaggregation of Revenue The accounting policies of the operations in the various geographic areas are the same as those described in the summary of significant accounting policies. Revenues are attributed to countries based on the location of the branch from which the sale occurred. In each of the years presented in the tables below, no single customer represented 5% or more of our consolidated net sales. Our revenues related to the following geographic areas were as follows for the periods ended December 31: Twelve-month period 2018 2017 2016 United States $ 4,285.5 3,842.9 3,493.5 All foreign countries 679.6 547.6 468.5 Total revenues $ 4,965.1 4,390.5 3,962.0 The percentages of our sales by end market were as follows for the periods ended December 31: Twelve-month period 2018 2017 2016 Manufacturing 66.7 % 66.5 % 65.9 % Non-residential construction 13.1 % 13.0 % 13.6 % Other 20.2 % 20.5 % 20.5 % 100.0 % 100.0 % 100.0 % The percentages of our sales by product line were as follows for the periods ended December 31 (1) : Twelve-month Period Type Introduced 2018 2017 2016 Fasteners (2) 1967 34.9 % 35.6 % 36.6 % Tools 1993 10.0 % 10.1 % 9.9 % Cutting tools 1996 5.7 % 5.8 % 5.7 % Hydraulics & pneumatics 1996 6.8 % 6.8 % 6.9 % Material handling 1996 5.8 % 5.9 % 6.0 % Janitorial supplies 1996 7.6 % 7.3 % 7.3 % Electrical supplies 1997 4.7 % 4.9 % 4.8 % Welding supplies 1997 4.1 % 4.2 % 4.2 % Safety supplies 1999 17.2 % 16.3 % 16.0 % Other 3.2 % 3.1 % 2.6 % 100.0 % 100.0 % 100.0 % (1) In 2018, we reclassified certain product category designations and have conformed the prior period percentages to the current year presentation. (2) The fastener product line represents fasteners and miscellaneous supplies. |
Long-Lived Assets
Long-Lived Assets | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Note 3. Long-Lived Assets The accounting policies of the operations in the various geographic areas are the same as those described in the summary of significant accounting policies. Long-lived assets consist of net property and equipment, deposits, goodwill, and other net intangibles. Property and equipment at year end consisted of the following: Depreciable Life in Years 2018 2017 Land — $ 36.3 38.2 Buildings and improvements 15 to 40 323.1 308.2 Automated distribution and warehouse equipment 5 to 30 229.1 220.0 Shelving, industrial vending, and equipment 3 to 10 927.6 812.9 Transportation equipment 3 to 5 77.9 76.3 Construction in progress — 152.2 149.3 1,746.2 1,604.9 Less accumulated depreciation (821.4 ) (711.3 ) Property and equipment, net $ 924.8 893.6 Our long-lived assets related to the following geographic areas: 2018 2017 2016 United States $ 947.7 919.5 899.1 All foreign countries 57.6 55.3 49.0 Total long-lived assets $ 1,005.3 974.8 948.1 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 4. Accrued Expenses Accrued expenses at year end consisted of the following: 2018 2017 Employee payroll and related taxes $ 27.6 26.0 Employee bonuses and commissions 22.8 19.8 Profit sharing contribution 13.0 10.6 Insurance reserves 37.6 39.0 Indirect taxes 63.6 51.1 Customer promotions and marketing 50.9 36.6 Other 25.3 10.9 Accrued expenses $ 240.8 194.0 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 5. Stockholders' Equity Dividends On January 16, 2019 , our board of directors declared a quarterly dividend of $0.43 per share of common stock to be paid in cash on February 27, 2019 to shareholders of record at the close of business on January 31, 2019 . We paid aggregate annual dividends per share of $1.54 , $1.28 , and $1.20 in 2018 , 2017 , and 2016 , respectively. Stock Options Effective January 2, 2019, the compensation committee of our board of directors granted to our employees options to purchase a total of 643,957 shares of our common stock at an exercise strike price of $52.00 per share. The closing stock price on the effective date of the grant was $51.41 per share. On the same date, certain of our non-employee directors elected to forgo all or a portion of the 2019 annual cash retainer in exchange for options to acquire a total of 14,505 shares of our common stock at an exercise price of $52.00 per share. The following tables summarize the details of options granted under our stock option plans that were still outstanding as of December 31, 2018, and the assumptions used to value those grants. All such grants were effective at the close of business on the date of grant. Options Granted Option Exercise (Strike) Price Closing Stock Price on Date of Grant December 31, 2018 Date of Grant Options Outstanding Options Exercisable January 2, 2018 543,968 $ 55.00 $ 54.54 524,256 21,185 January 3, 2017 764,789 $ 47.00 $ 46.95 679,700 — April 19, 2016 845,440 $ 46.00 $ 45.74 683,889 194,672 April 21, 2015 893,220 $ 42.00 $ 41.26 622,301 185,528 April 22, 2014 955,000 $ 56.00 $ 50.53 511,250 332,250 April 16, 2013 205,000 $ 54.00 $ 49.25 88,123 54,380 April 17, 2012 1,235,000 $ 54.00 $ 49.01 812,063 700,813 April 19, 2011 410,000 $ 35.00 $ 31.78 49,650 37,150 April 20, 2010 530,000 $ 30.00 $ 27.13 28,400 28,400 Total 6,382,417 3,999,632 1,554,378 Date of Grant Risk-free Interest Rate Expected Life of Option in Years Expected Dividend Yield Expected Stock Volatility Estimated Fair Value of Stock Option January 2, 2018 2.2 % 5.00 2.3 % 23.45 % $ 10.03 January 3, 2017 1.9 % 5.00 2.6 % 24.49 % $ 8.40 April 19, 2016 1.3 % 5.00 2.6 % 26.34 % $ 8.18 April 21, 2015 1.3 % 5.00 2.7 % 26.84 % $ 7.35 April 22, 2014 1.8 % 5.00 2.0 % 28.55 % $ 9.57 April 16, 2013 0.7 % 5.00 1.6 % 37.42 % $ 12.66 April 17, 2012 0.9 % 5.00 1.4 % 39.25 % $ 13.69 April 19, 2011 2.1 % 5.00 1.6 % 39.33 % $ 11.20 April 20, 2010 2.6 % 5.00 1.5 % 39.10 % $ 8.14 All of the options in the tables above vest and become exercisable over a period of up to eight years . Generally, each option will terminate approximately nine years after the grant date. The fair value of each share-based option is estimated on the date of grant using a Black-Scholes valuation method that uses the assumptions listed above. The risk-free interest rate is based on the U.S. Treasury rate over the expected life of the option at the time of grant. The expected life is the average length of time over which we expect the employee groups will exercise their options, which is based on historical experience with similar grants. The dividend yield is estimated over the expected life of the option based on our current dividend payout, historical dividends paid, and expected future cash dividends. Expected stock volatilities are based on the movement of our stock price over the most recent historical period equivalent to the expected life of the option. A summary of activities under our stock option plans consisted of the following: Options Outstanding Exercise Price (1) Remaining Life (2) Outstanding as of January 1, 2018 3,948,908 $ 48.28 5.89 Granted 543,968 $ 55.00 9.00 Exercised (310,383 ) $ 43.31 Cancelled/forfeited (182,861 ) $ 48.86 Outstanding as of December 31, 2018 3,999,632 $ 49.53 5.61 Exercisable as of December 31, 2018 1,554,378 $ 51.06 3.69 Options Outstanding Exercise (1) Remaining Life (2) Outstanding as of January 1, 2017 3,757,947 $ 46.81 5.85 Granted 764,789 $ 47.00 9.00 Exercised (329,612 ) $ 28.59 Cancelled/forfeited (244,216 ) $ 48.22 Outstanding as of December 31, 2017 3,948,908 $ 48.28 5.89 Exercisable as of December 31, 2017 1,280,499 $ 50.07 3.78 (1) Weighted average exercise price. (2) Weighted average remaining contractual life in years. The total intrinsic value of stock options exercised during the years ended December 31, 2018 , 2017 , and 2016 was $4.2 , $6.9 , and $23.2 , respectively. The intrinsic value represents the difference between the exercise price and fair value of the underlying shares at the date of exercise. At December 31, 2018 , there was $13.7 of total unrecognized stock-based compensation expense related to outstanding unvested stock options granted under the employee stock option plan. This expense is expected to be recognized over a weighted average period of 3.89 years. Any future change in estimated forfeitures will impact this amount. The total grant date fair value of stock options vested under our employee stock option plan during 2018 , 2017 , and 2016 was $5.3 , $4.2 , and $7.1 , respectively. Total stock-based compensation expense related to our employee stock option plan was $5.1 , $5.2 , and $4.1 for 2018 , 2017 , and 2016 , respectively. Earnings Per Share The following tables present a reconciliation of the denominators used in the computation of basic and diluted earnings per share and a summary of the options to purchase shares of common stock which were excluded from the diluted earnings calculation because they were anti-dilutive: Reconciliation 2018 2017 2016 Basic weighted average shares outstanding 286,966,917 288,208,435 288,949,525 Weighted shares assumed upon exercise of stock options 195,847 134,298 207,998 Diluted weighted average shares outstanding 287,162,764 288,342,733 289,157,523 Summary of Anti-dilutive Options Excluded 2018 2017 2016 Options to purchase shares of common stock 1,579,757 3,524,401 3,095,343 Weighted average exercise prices of options $ 55.02 49.85 50.09 Any dilutive impact summarized above related to periods when the average market price of our stock exceeded the exercise price of the potentially dilutive stock options then outstanding. |
Retirement Savings Plan
Retirement Savings Plan | 12 Months Ended |
Dec. 31, 2018 | |
Defined Contribution Plan [Abstract] | |
Retirement Savings Plan | Note 6. Retirement Savings Plan The Fastenal Company and Subsidiaries 401(k) and Employee Stock Ownership Plan covers all of our employees in the United States. Our employees in Canada may participate in a Registered Retirement Savings Plan. The general purpose of both of these plans is to provide additional financial security during retirement by providing employees with an incentive to make regular savings contributions. In addition to the participation of our employees, we make annual profit sharing contributions based on an established formula. The expense recorded under this profit sharing formula was approximately $13.0 , $10.6 , and $8.7 for 2018 , 2017 , and 2016 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7. Income Taxes Earnings before income taxes were derived from the following sources: 2018 2017 2016 Domestic $ 905.0 809.4 739.4 Foreign 82.0 63.7 50.3 Earnings before income taxes $ 987.0 873.1 789.7 Components of income tax expense (benefit) were as follows: 2018: Current Deferred Total Federal $ 143.8 27.4 171.2 State 38.8 0.2 39.0 Foreign 24.1 0.8 24.9 Income tax expense $ 206.7 28.4 235.1 2017: Current Deferred Total Federal $ 270.6 (33.1 ) 237.5 State 33.2 3.3 36.5 Foreign 20.5 — 20.5 Income tax expense $ 324.3 (29.8 ) 294.5 2016: Current Deferred Total Federal $ 223.9 23.2 247.1 State 28.2 1.2 29.4 Foreign 12.6 1.2 13.8 Income tax expense $ 264.7 25.6 290.3 Income tax expense in the accompanying consolidated financial statements differed from the expected expense as follows: 2018 2017 2016 U.S. federal statutory income tax rate 21.0 % 35.0 % 35.0 % U.S. federal income tax expense at statutory rate $ 207.3 305.6 276.4 Increase (decrease) attributed to: State income taxes, net of federal benefit 30.2 21.5 20.0 Transition tax 1.2 6.5 — Remeasurement of deferred taxes for Tax Act (11.5 ) (30.8 ) — Other, net 7.9 (8.3 ) (6.1 ) Total income tax expense $ 235.1 294.5 290.3 Effective income tax rate 23.8 % 33.7 % 36.8 % The tax effects of temporary differences that give rise to deferred income tax assets and liabilities at year end consisted of the following: 2018 2017 Deferred income tax assets (liabilities): Inventory costing and valuation methods $ 4.2 3.6 Allowance for doubtful accounts 3.2 3.0 Insurance reserves 8.1 8.4 Customer promotions 1.9 1.3 Stock-based compensation 5.6 5.2 Federal and state benefit of uncertain tax positions 0.8 0.9 Foreign net operating loss and credit carryforwards 3.2 4.2 Foreign valuation allowances (2.7 ) (2.8 ) Other, net 1.3 0.8 Total deferred income tax assets 25.6 24.6 Property and equipment (104.7 ) (75.2 ) Total deferred income tax liabilities (104.7 ) (75.2 ) Deferred income tax liabilities $ (79.1 ) (50.6 ) A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits was as follows: 2018 2017 Balance at beginning of year: $ 4.4 5.4 Increase related to prior year tax positions 1.8 0.4 Decrease related to prior year tax positions (0.6 ) (0.5 ) Increase related to current year tax positions 0.7 0.7 Decrease related to statute of limitation lapses (0.9 ) (1.1 ) Settlements (0.1 ) (0.5 ) Balance at end of year: $ 5.3 4.4 Included in the liability for gross unrecognized tax benefits is an immaterial amount for interest and penalties, both of which we classify as a component of income tax expense. The amount of gross unrecognized tax benefits that would favorably impact the effective tax rate, if recognized, is not material. We do not anticipate significant changes in total unrecognized tax benefits during the next twelve months. The 2018 liability is included in deferred income taxes and the 2017 liability is included in income taxes payable on the Consolidated Balance Sheets. We file income tax returns in the United States federal jurisdiction, all states, and various local and foreign jurisdictions. With limited exceptions, we are no longer subject to income tax examinations by taxing authorities for taxable years before 2016 in the case of United States federal examinations, and 2014 in the case of foreign, state, and local examinations. On December 22, 2017, the Tax Act was signed into law. The Tax Act made broad and complex changes to the U.S. tax code which include: a lowering of the U.S. federal corporate income tax rate from 35% to 21% effective January 1, 2018, accelerated expensing of qualified capital investments for a specific period, and a transition from a worldwide to a territorial tax system which requires companies to pay a one-time transition tax on certain unrepatriated earnings from foreign subsidiaries. ASC 740 requires a company to record the effects of a tax law change in the period of enactment which, for us, was fiscal 2017. ASU 2018-05 provides guidance on the application of the Tax Act which includes allowing a company to record a provisional amount during the measurement period for the impacts when the necessary information is not available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. The measurement period ends when the company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. We recorded income tax expense of $235.1 in 2018, or 23.8% of earnings before income taxes. The effective income tax rate was significantly impacted by the following two items: (1) The lower corporate tax rate provided by the Tax Act resulted in a lower tax rate beginning in the first quarter of 2018. The effective income tax rate includes the immaterial impact of the U.S. tax rate on certain offshore earnings referred to as GILTI, a new deduction for FDII, and the new alternative U.S. tax on certain BEAT payments from a U.S. company to any foreign related party. (2) Discrete income tax items to adjust our transition tax liability, reflect the impacts of accelerating depreciation for certain physical assets, and remeasure the impact of the U.S. tax rate on certain inter-company transactions. These discrete items resulted in approximately $7.1 of income tax benefit during 2018. The accounting for the income tax effects of the Tax Act is complete as of December 31, 2018. In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is zero or very minimal and that position has not changed subsequent to the one-time transition tax under the Tax Act. Accordingly, no deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of our approximately $248.0 of undistributed earnings from foreign subsidiaries to the U.S. as those earnings continue to be permanently reinvested. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases, Operating [Abstract] | |
Operating Leases | Note 8. Operating Leases We lease space under non-cancelable operating leases for several distribution centers, several manufacturing locations, and certain branch locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Any such terms are recognized as rent expense over the term of the lease. Further, the leases do not contain contingent rent provisions. The net book value of leasehold improvements at December 31, 2018 was $2.3 . We lease certain semi-tractors and pick-ups under operating leases. Our pick-up leases typically have a non-cancelable lease term of one year , with renewal options for up to 72 months . Our average lease term for pick-ups is typically 39 months to 45 months . Future minimum lease payments for all operating leases are as follows: Leased Facilities and Equipment Leased Vehicles Total 2019 $ 84.1 40.0 124.1 2020 69.1 25.5 94.6 2021 42.8 10.9 53.7 2022 21.8 1.9 23.7 2023 9.7 — 9.7 2024 and thereafter 3.7 — 3.7 Total minimum lease payments $ 231.2 78.3 309.5 Rent expense under all operating leases was as follows: Leased Facilities and Equipment Leased Vehicles Total 2018 $ 110.7 47.5 158.2 2017 $ 109.5 45.8 155.3 2016 $ 110.1 42.7 152.8 Certain operating leases for pick-up trucks contain residual value guarantee provisions which would generally become due at the expiration of the operating lease agreement if the fair value of the leased vehicles is less than the guaranteed residual value. The aggregate residual value guarantee related to these leases was approximately $80.8 . We believe the likelihood of funding the guarantee obligation under any provision of the operating lease agreements is remote. To the extent our fleet contains vehicles we estimate will settle at a gain, such gains on these vehicles will be recognized when we sell the vehicle. |
Debt Commitments
Debt Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Commitments | Note 9. Debt Commitments Credit Facility, Notes Payable, and Commitments Debt obligations and letters of credit outstanding at year end consisted of the following: 2018 2017 Outstanding loans under unsecured revolving credit facility $ 365.0 280.0 2.00% Senior unsecured promissory note payable 40.0 40.0 2.45% Senior unsecured promissory note payable 35.0 35.0 3.22% Senior unsecured promissory note payable 60.0 60.0 Total debt 500.0 415.0 Less: Current portion of debt (3.0 ) (3.0 ) Long-term debt $ 497.0 412.0 Outstanding letters of credit under unsecured revolving credit facility - contingent obligation $ 36.3 36.3 Unsecured Revolving Credit Facility We have a $700.0 committed unsecured revolving credit facility ('Credit Facility'). The Credit Facility includes a committed letter of credit subfacility of $55.0 . The commitments under the Credit Facility will expire (and any borrowings outstanding under the Credit Facility will become due and payable) on November 30, 2023 . In the next twelve months, we have the ability and intent to repay a portion of the outstanding loans using cash; therefore, we have classified this portion as a current liability. The Credit Facility contains certain financial and other covenants, and our right to borrow under the Credit Facility is conditioned upon, among other things, our compliance with these covenants. We are currently in compliance with these covenants. Borrowings under the Credit Facility generally bear interest at a rate per annum equal to the London Interbank Offered Rate ('LIBOR') for interest periods of various lengths selected by us, plus 0.95% . Based on the interest periods we have chosen, our weighted per annum interest rate at December 31, 2018 was approximately 3.5% . We pay a commitment fee for the unused portion of the Credit Facility. This fee is either 0.10% or 0.125% per annum based on our usage of the Credit Facility. Senior Unsecured Promissory Notes Payable We have issued senior unsecured promissory notes under our master note agreement (the 'Master Note Agreement') in the aggregate principal amount of $135.0 . Our aggregate borrowing capacity under the Master Note Agreement is $600.0 ; however, none of the institutional investors party to that agreement are committed to purchase notes thereunder. The notes currently issued under our Master Note Agreement consist of three series. The first is in an aggregate principal amount of $40.0 , bears interest at a fixed rate of 2.00% per annum, and is due and payable on July 20, 2021. The second is in an aggregate principal amount of $35.0 , bears interest at a fixed rate of 2.45% per annum, and is due and payable on July 20, 2022. The third is in an aggregate principal amount of $60.0 , bears interest at a fixed rate of 3.22% per annum, and is due and payable on March 1, 2024. There is no amortization of these notes prior to their maturity date and interest is payable quarterly. |
Legal Contingencies
Legal Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Contingencies | Note 10. Legal Contingencies We are involved in certain legal actions. The outcomes of these legal actions are not within our complete control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief, that could require significant expenditures or result in lost revenues. We record a liability for these legal actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. As of December 31, 2018 , there were no litigation matters that we consider to be probable or reasonably possible to have a material adverse outcome. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events We evaluated all subsequent event activity and concluded that no subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the Notes to Consolidated Financial Statements, with the exception of the dividend declaration and stock option activities disclosed in Note 5. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 12. Selected Quarterly Financial Data (Unaudited) (Amounts in millions except per share information) 2018: Net Sales Gross Profit Pre-tax Earnings Net Earnings (1) Basic Net (1), (2) Diluted Net Earnings per Share (1), (2) First quarter $ 1,185.8 577.6 231.9 174.3 0.61 0.61 Second quarter 1,267.9 617.7 265.9 211.2 0.74 0.74 Third quarter 1,279.8 615.8 259.4 197.6 0.69 0.69 Fourth quarter 1,231.6 587.8 229.8 168.8 0.59 0.59 Total $ 4,965.1 2,398.9 987.0 751.9 2.62 2.62 2017: Net Sales Gross Profit Pre-tax Earnings Net Earnings Basic Net (2) Diluted Net Earnings per Share (2) First quarter $ 1,047.7 518.0 210.9 134.2 0.46 0.46 Second quarter 1,121.5 558.5 235.4 148.9 0.52 0.52 Third quarter 1,132.8 555.9 226.0 143.1 0.50 0.50 Fourth quarter 1,088.5 531.2 200.8 152.4 (3) 0.53 (3) 0.53 (3) Total $ 4,390.5 2,163.6 873.1 578.6 (3) 2.01 (3) 2.01 (3) (1) Absent the impact of the Tax Act, our net earnings for the first, second, third, and fourth quarters would have been $147.0 , $168.7 , $164.3 , and $145.2 , respectively, and $625.2 for the full year. Our basic and diluted net earnings per share would have each been $0.51 , $0.59 , $0.57 , and $0.51 , respectively, and $2.18 for the full year. (2) Amounts may not foot due to rounding difference. (3) Absent the impact of the Tax Act, our net earnings for the fourth quarter of 2017 would have been approximately $128.1 and $554.2 for the full year. Our basic and diluted net earnings per share would have each been $0.45 for the fourth quarter and $1.92 for the full year. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Years ended December 31, 2018 , 2017 , and 2016 (Amounts in millions) Description Balance at Beginning of Year "Additions" Charged to Costs and Expenses "Other" Additions (Deductions) "Less" Deductions Balance at End of Year Year ended December 31, 2018 Allowance for doubtful accounts $ 11.9 8.1 — 7.2 12.8 Insurance reserves $ 39.0 66.9 (1) — 68.3 (2) 37.6 Year ended December 31, 2017 Allowance for doubtful accounts $ 11.2 8.2 — 7.5 11.9 Insurance reserves $ 34.6 68.2 (1) — 63.8 (2) 39.0 Year ended December 31, 2016 Allowance for doubtful accounts $ 11.7 8.5 — 9.0 11.2 Insurance reserves $ 31.8 62.3 (1) — 59.5 (2) 34.6 (1) Includes costs and expenses incurred for premiums and claims related to health and general insurance. (2) Includes costs and expenses paid for premiums and claims related to health and general insurance. See accompanying Report of Independent Registered Public Accounting Firm incorporated herein by reference. |
Business Overview and Summary_2
Business Overview and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of Fastenal Company and its subsidiaries (collectively referred to as 'Fastenal' or by terms such as 'we', 'our', or 'us'). All material intercompany balances and transactions have been eliminated in consolidation. |
Revenue Recognition | Net sales include products and shipping and handling charges, net of estimates for product returns and any related sales incentives. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring the promised products to the customer, with the majority of revenue recognized at the point in time the customer obtains control of the products. We recognize revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. We estimate product returns based on historical return rates. Using probability assessments, we estimate sales incentives expected to be paid over the term of the contract. The majority of our contracts have a single performance obligation and are short term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. |
Accounts Receivable | Credit is extended based upon an evaluation of the customer's financial condition. Accounts receivable are stated at their estimated net realizable value. The allowance for doubtful accounts is based on an analysis of customer accounts and our historical experience with accounts receivable write-offs. |
Foreign Currency Translation and Transactions | The functional currency of our foreign operations is typically the applicable local currency. The functional currency is translated into United States dollars for balance sheet accounts, except retained earnings, using current exchange rates as of the balance sheet date, for retained earnings at historical exchange rates, and for revenue and expense accounts using a weighted average exchange rate during the applicable period. The translation adjustments are deferred as a separate component of stockholders' equity captioned accumulated other comprehensive income (loss). Gains or losses resulting from transactions denominated in foreign currencies are included in cost of sales or operating and administrative expenses. |
Cash and Cash Equivalents | We consider all investments purchased with original maturities of three months or less to be cash equivalents. |
Inventories | Inventories, consisting of finished goods merchandise held for resale, are stated at the lower of cost (first in, first out method) or net realizable value. We establish a reserve for excess, slow-moving, and obsolete inventory that is equal to the difference between the cost and estimated net realizable value for that inventory. These reserves are based on a review and comparison of the current inventory levels to projected and historical sales of inventory. |
Property and Equipment | Property and equipment are stated at cost. Depreciation on property and equipment is provided for using the straight-line method over the anticipated economic useful lives of the related property. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by the asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. |
Leases | We lease space under operating leases for certain distribution centers, branches, and manufacturing locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Any such terms are recognized as rent expense over the term of the lease. Further, the leases do not contain contingent rent provisions. Leasehold improvements on operating leases are amortized over their estimated service lives on a straight-line basis, or the remaining lease term, whichever is shorter. We lease certain semi-tractors, pick-ups, and equipment under operating leases. |
Other Long-Lived Assets | Other assets consist of prepaid deposits, goodwill, and other definite-lived intangible assets. Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill is reviewed for impairment annually. The identifiable intangible assets are amortized on a straight-line basis over their estimated life. |
Accounting Estimates | The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from those estimates. |
Insurance Reserves | We are self-insured for certain losses relating to workers' compensation, automobile, health, and general liability costs. Specific stop-loss coverage is provided for catastrophic claims in order to limit exposure to significant claims. Self-insurance liabilities are based on our estimate of reported claims and claims incurred but not yet reported. |
Product Warranties | We offer a basic limited warranty for certain of our products. The specific terms and conditions of those warranties vary depending upon the product sold. We typically recoup these costs through product warranties we hold with the original equipment manufacturers. Our warranty expense has historically been minimal. |
Stock-Based Compensation | We estimate the value of stock option grants using a Black-Scholes valuation model. Stock-based compensation expense is recognized on a straight-line basis over the vesting period. Our stock-based compensation expense is recorded in operating and administrative expenses. |
Income Taxes | We account for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits in income tax expense. |
Earnings Per Share | Basic net earnings per share is calculated using net earnings available to common stockholders divided by the weighted average number of shares of common stock outstanding during the year. Diluted net earnings per share is similar to basic net earnings per share except that the weighted average number of shares of common stock outstanding includes the incremental shares assumed to be issued upon the exercise of stock options considered to be 'in-the-money' (i.e., when the market price of our stock is greater than the exercise price of our outstanding stock options). |
Segment Reporting | We have determined that for our North American operations we meet the aggregation criteria outlined in the accounting standards as our various operations have similar (1) economic characteristics, (2) products and services, (3) customers, (4) distribution channels, and (5) regulatory environments. Considering the insignificance of our operations outside of North America, we report as a single business segment. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective January 1, 2018, we adopted the Financial Accounting Standards Board ('FASB') Accounting Standards Update ('ASU') 2014-09, Revenue from Contracts with Customers (Topic 606) , and ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date, which deferred the effective date of ASU 2014-09 by one year. ASU 2014-09 supersedes the revenue recognition requirements in ASC 605, Revenue Recognition , and is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The adoption of ASU 2014-09, using the modified retrospective approach, had no significant impact on our results of operations, cash flows, or financial position. Revenue continues to be recognized at a point in time for our product sales when products are delivered to or picked up by the customer and revenue for shipping and handling charges continues to be recognized when products are delivered to or picked up by the customer. We continue to reduce revenue for estimates of sales incentives based on probability estimates and for product returns based on historical return rates. Additional information and disclosures required by this new standard are contained in Note 2, ' Revenue '. In March 2018, we adopted FASB ASU 2018-05, Income Taxes (Topic 740) : Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which updates the income tax accounting in U.S. GAAP to reflect the Securities and Exchange Commission ('SEC') interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act (the 'Tax Act') was signed into law. Additional information regarding the adoption of this standard is contained in Note 7, ' Income Taxes '. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases , which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those reporting periods, with early adoption permitted. The original guidance required application on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842 , which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases , as the date of initial application of transition. Based on the effective date, this guidance will apply and we will adopt this ASU beginning on January 1, 2019 and plan to elect the transition option provided under ASU 2018-11. We expect this standard will have a material effect on our Consolidated Balance Sheets with the recognition of new right of use assets and lease liabilities for all operating leases, except pick-up truck leases where we expect to elect the short-term lease recognition exemption, as these leases typically have a non-cancelable lease term of approximately one year. Upon adoption, we estimate both assets and liabilities on our Consolidated Balance Sheets will increase by approximately $ 250.0 . Changes in our lease population or changes in incremental borrowing rates may alter this estimate. We will expand our consolidated financial statement disclosures upon adoption of this standard. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Our revenues related to the following geographic areas were as follows for the periods ended December 31: Twelve-month period 2018 2017 2016 United States $ 4,285.5 3,842.9 3,493.5 All foreign countries 679.6 547.6 468.5 Total revenues $ 4,965.1 4,390.5 3,962.0 The percentages of our sales by end market were as follows for the periods ended December 31: Twelve-month period 2018 2017 2016 Manufacturing 66.7 % 66.5 % 65.9 % Non-residential construction 13.1 % 13.0 % 13.6 % Other 20.2 % 20.5 % 20.5 % 100.0 % 100.0 % 100.0 % The percentages of our sales by product line were as follows for the periods ended December 31 (1) : Twelve-month Period Type Introduced 2018 2017 2016 Fasteners (2) 1967 34.9 % 35.6 % 36.6 % Tools 1993 10.0 % 10.1 % 9.9 % Cutting tools 1996 5.7 % 5.8 % 5.7 % Hydraulics & pneumatics 1996 6.8 % 6.8 % 6.9 % Material handling 1996 5.8 % 5.9 % 6.0 % Janitorial supplies 1996 7.6 % 7.3 % 7.3 % Electrical supplies 1997 4.7 % 4.9 % 4.8 % Welding supplies 1997 4.1 % 4.2 % 4.2 % Safety supplies 1999 17.2 % 16.3 % 16.0 % Other 3.2 % 3.1 % 2.6 % 100.0 % 100.0 % 100.0 % (1) In 2018, we reclassified certain product category designations and have conformed the prior period percentages to the current year presentation. (2) The fastener product line represents fasteners and miscellaneous supplies. |
Long-Lived Assets (Tables)
Long-Lived Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment at year end consisted of the following: Depreciable Life in Years 2018 2017 Land — $ 36.3 38.2 Buildings and improvements 15 to 40 323.1 308.2 Automated distribution and warehouse equipment 5 to 30 229.1 220.0 Shelving, industrial vending, and equipment 3 to 10 927.6 812.9 Transportation equipment 3 to 5 77.9 76.3 Construction in progress — 152.2 149.3 1,746.2 1,604.9 Less accumulated depreciation (821.4 ) (711.3 ) Property and equipment, net $ 924.8 893.6 |
Schedule of Long-Lived Assets by Geographic Areas | Our long-lived assets related to the following geographic areas: 2018 2017 2016 United States $ 947.7 919.5 899.1 All foreign countries 57.6 55.3 49.0 Total long-lived assets $ 1,005.3 974.8 948.1 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses at year end consisted of the following: 2018 2017 Employee payroll and related taxes $ 27.6 26.0 Employee bonuses and commissions 22.8 19.8 Profit sharing contribution 13.0 10.6 Insurance reserves 37.6 39.0 Indirect taxes 63.6 51.1 Customer promotions and marketing 50.9 36.6 Other 25.3 10.9 Accrued expenses $ 240.8 194.0 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stock Option Plan Activity and Stock Options Granted | A summary of activities under our stock option plans consisted of the following: Options Outstanding Exercise Price (1) Remaining Life (2) Outstanding as of January 1, 2018 3,948,908 $ 48.28 5.89 Granted 543,968 $ 55.00 9.00 Exercised (310,383 ) $ 43.31 Cancelled/forfeited (182,861 ) $ 48.86 Outstanding as of December 31, 2018 3,999,632 $ 49.53 5.61 Exercisable as of December 31, 2018 1,554,378 $ 51.06 3.69 Options Outstanding Exercise (1) Remaining Life (2) Outstanding as of January 1, 2017 3,757,947 $ 46.81 5.85 Granted 764,789 $ 47.00 9.00 Exercised (329,612 ) $ 28.59 Cancelled/forfeited (244,216 ) $ 48.22 Outstanding as of December 31, 2017 3,948,908 $ 48.28 5.89 Exercisable as of December 31, 2017 1,280,499 $ 50.07 3.78 (1) Weighted average exercise price. (2) Weighted average remaining contractual life in years. The following tables summarize the details of options granted under our stock option plans that were still outstanding as of December 31, 2018, and the assumptions used to value those grants. All such grants were effective at the close of business on the date of grant. Options Granted Option Exercise (Strike) Price Closing Stock Price on Date of Grant December 31, 2018 Date of Grant Options Outstanding Options Exercisable January 2, 2018 543,968 $ 55.00 $ 54.54 524,256 21,185 January 3, 2017 764,789 $ 47.00 $ 46.95 679,700 — April 19, 2016 845,440 $ 46.00 $ 45.74 683,889 194,672 April 21, 2015 893,220 $ 42.00 $ 41.26 622,301 185,528 April 22, 2014 955,000 $ 56.00 $ 50.53 511,250 332,250 April 16, 2013 205,000 $ 54.00 $ 49.25 88,123 54,380 April 17, 2012 1,235,000 $ 54.00 $ 49.01 812,063 700,813 April 19, 2011 410,000 $ 35.00 $ 31.78 49,650 37,150 April 20, 2010 530,000 $ 30.00 $ 27.13 28,400 28,400 Total 6,382,417 3,999,632 1,554,378 |
Fair Value Assumptions for Options Granted | Date of Grant Risk-free Interest Rate Expected Life of Option in Years Expected Dividend Yield Expected Stock Volatility Estimated Fair Value of Stock Option January 2, 2018 2.2 % 5.00 2.3 % 23.45 % $ 10.03 January 3, 2017 1.9 % 5.00 2.6 % 24.49 % $ 8.40 April 19, 2016 1.3 % 5.00 2.6 % 26.34 % $ 8.18 April 21, 2015 1.3 % 5.00 2.7 % 26.84 % $ 7.35 April 22, 2014 1.8 % 5.00 2.0 % 28.55 % $ 9.57 April 16, 2013 0.7 % 5.00 1.6 % 37.42 % $ 12.66 April 17, 2012 0.9 % 5.00 1.4 % 39.25 % $ 13.69 April 19, 2011 2.1 % 5.00 1.6 % 39.33 % $ 11.20 April 20, 2010 2.6 % 5.00 1.5 % 39.10 % $ 8.14 |
Reconciliation of Denominators used in Computation of Basic and Diluted Earnings per Share | The following tables present a reconciliation of the denominators used in the computation of basic and diluted earnings per share and a summary of the options to purchase shares of common stock which were excluded from the diluted earnings calculation because they were anti-dilutive: Reconciliation 2018 2017 2016 Basic weighted average shares outstanding 286,966,917 288,208,435 288,949,525 Weighted shares assumed upon exercise of stock options 195,847 134,298 207,998 Diluted weighted average shares outstanding 287,162,764 288,342,733 289,157,523 |
Anti-Dilutive Options Excluded | Summary of Anti-dilutive Options Excluded 2018 2017 2016 Options to purchase shares of common stock 1,579,757 3,524,401 3,095,343 Weighted average exercise prices of options $ 55.02 49.85 50.09 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Earnings Before Income Taxes | Earnings before income taxes were derived from the following sources: 2018 2017 2016 Domestic $ 905.0 809.4 739.4 Foreign 82.0 63.7 50.3 Earnings before income taxes $ 987.0 873.1 789.7 |
Components of Income Tax Expense (Benefit) | Components of income tax expense (benefit) were as follows: 2018: Current Deferred Total Federal $ 143.8 27.4 171.2 State 38.8 0.2 39.0 Foreign 24.1 0.8 24.9 Income tax expense $ 206.7 28.4 235.1 2017: Current Deferred Total Federal $ 270.6 (33.1 ) 237.5 State 33.2 3.3 36.5 Foreign 20.5 — 20.5 Income tax expense $ 324.3 (29.8 ) 294.5 2016: Current Deferred Total Federal $ 223.9 23.2 247.1 State 28.2 1.2 29.4 Foreign 12.6 1.2 13.8 Income tax expense $ 264.7 25.6 290.3 |
Difference In Income Tax Expense And Expected Expense | Income tax expense in the accompanying consolidated financial statements differed from the expected expense as follows: 2018 2017 2016 U.S. federal statutory income tax rate 21.0 % 35.0 % 35.0 % U.S. federal income tax expense at statutory rate $ 207.3 305.6 276.4 Increase (decrease) attributed to: State income taxes, net of federal benefit 30.2 21.5 20.0 Transition tax 1.2 6.5 — Remeasurement of deferred taxes for Tax Act (11.5 ) (30.8 ) — Other, net 7.9 (8.3 ) (6.1 ) Total income tax expense $ 235.1 294.5 290.3 Effective income tax rate 23.8 % 33.7 % 36.8 % |
Summary of Temporary Differences That Give Rise to Deferred Income Tax Assets And Liabilities | The tax effects of temporary differences that give rise to deferred income tax assets and liabilities at year end consisted of the following: 2018 2017 Deferred income tax assets (liabilities): Inventory costing and valuation methods $ 4.2 3.6 Allowance for doubtful accounts 3.2 3.0 Insurance reserves 8.1 8.4 Customer promotions 1.9 1.3 Stock-based compensation 5.6 5.2 Federal and state benefit of uncertain tax positions 0.8 0.9 Foreign net operating loss and credit carryforwards 3.2 4.2 Foreign valuation allowances (2.7 ) (2.8 ) Other, net 1.3 0.8 Total deferred income tax assets 25.6 24.6 Property and equipment (104.7 ) (75.2 ) Total deferred income tax liabilities (104.7 ) (75.2 ) Deferred income tax liabilities $ (79.1 ) (50.6 ) |
Reconciliation of The Beginning and Ending Amount of Total Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits was as follows: 2018 2017 Balance at beginning of year: $ 4.4 5.4 Increase related to prior year tax positions 1.8 0.4 Decrease related to prior year tax positions (0.6 ) (0.5 ) Increase related to current year tax positions 0.7 0.7 Decrease related to statute of limitation lapses (0.9 ) (1.1 ) Settlements (0.1 ) (0.5 ) Balance at end of year: $ 5.3 4.4 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases, Operating [Abstract] | |
Future Minimum Lease Payments | Future minimum lease payments for all operating leases are as follows: Leased Facilities and Equipment Leased Vehicles Total 2019 $ 84.1 40.0 124.1 2020 69.1 25.5 94.6 2021 42.8 10.9 53.7 2022 21.8 1.9 23.7 2023 9.7 — 9.7 2024 and thereafter 3.7 — 3.7 Total minimum lease payments $ 231.2 78.3 309.5 |
Rent Expense | Rent expense under all operating leases was as follows: Leased Facilities and Equipment Leased Vehicles Total 2018 $ 110.7 47.5 158.2 2017 $ 109.5 45.8 155.3 2016 $ 110.1 42.7 152.8 |
Debt Commitments (Tables)
Debt Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations and Letters of Credit Outstanding | Debt obligations and letters of credit outstanding at year end consisted of the following: 2018 2017 Outstanding loans under unsecured revolving credit facility $ 365.0 280.0 2.00% Senior unsecured promissory note payable 40.0 40.0 2.45% Senior unsecured promissory note payable 35.0 35.0 3.22% Senior unsecured promissory note payable 60.0 60.0 Total debt 500.0 415.0 Less: Current portion of debt (3.0 ) (3.0 ) Long-term debt $ 497.0 412.0 Outstanding letters of credit under unsecured revolving credit facility - contingent obligation $ 36.3 36.3 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | (Amounts in millions except per share information) 2018: Net Sales Gross Profit Pre-tax Earnings Net Earnings (1) Basic Net (1), (2) Diluted Net Earnings per Share (1), (2) First quarter $ 1,185.8 577.6 231.9 174.3 0.61 0.61 Second quarter 1,267.9 617.7 265.9 211.2 0.74 0.74 Third quarter 1,279.8 615.8 259.4 197.6 0.69 0.69 Fourth quarter 1,231.6 587.8 229.8 168.8 0.59 0.59 Total $ 4,965.1 2,398.9 987.0 751.9 2.62 2.62 2017: Net Sales Gross Profit Pre-tax Earnings Net Earnings Basic Net (2) Diluted Net Earnings per Share (2) First quarter $ 1,047.7 518.0 210.9 134.2 0.46 0.46 Second quarter 1,121.5 558.5 235.4 148.9 0.52 0.52 Third quarter 1,132.8 555.9 226.0 143.1 0.50 0.50 Fourth quarter 1,088.5 531.2 200.8 152.4 (3) 0.53 (3) 0.53 (3) Total $ 4,390.5 2,163.6 873.1 578.6 (3) 2.01 (3) 2.01 (3) (1) Absent the impact of the Tax Act, our net earnings for the first, second, third, and fourth quarters would have been $147.0 , $168.7 , $164.3 , and $145.2 , respectively, and $625.2 for the full year. Our basic and diluted net earnings per share would have each been $0.51 , $0.59 , $0.57 , and $0.51 , respectively, and $2.18 for the full year. (2) Amounts may not foot due to rounding difference. (3) Absent the impact of the Tax Act, our net earnings for the fourth quarter of 2017 would have been approximately $128.1 and $554.2 for the full year. Our basic and diluted net earnings per share would have each been $0.45 for the fourth quarter and $1.92 for the full year. |
Business Overview and Summary_3
Business Overview and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)location | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounting Policies [Abstract] | |||
Approximate number of in-market locations | location | 3,100 | ||
Impairment of property and equipment long-lived assets | $ 0 | $ 0 | $ 0 |
Accounting Standards Update 2016-02 | Pro Forma | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Approximate increase in assets upon adoption of ASU 2016-02, Leases | 250,000,000 | ||
Approximate increase in liabilities upon adoption of ASU 2016-02, Leases | $ 250,000,000 |
Revenue - Revenues by Geographi
Revenue - Revenues by Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues by Geographic Areas [Line Items] | |||||||||||
Total revenues | $ 1,231.6 | $ 1,279.8 | $ 1,267.9 | $ 1,185.8 | $ 1,088.5 | $ 1,132.8 | $ 1,121.5 | $ 1,047.7 | $ 4,965.1 | $ 4,390.5 | $ 3,962 |
United States | |||||||||||
Revenues by Geographic Areas [Line Items] | |||||||||||
Total revenues | 4,285.5 | 3,842.9 | 3,493.5 | ||||||||
All foreign countries | |||||||||||
Revenues by Geographic Areas [Line Items] | |||||||||||
Total revenues | $ 679.6 | $ 547.6 | $ 468.5 |
Revenue - Percentages of Sales
Revenue - Percentages of Sales by End Market (Details) - End Market - Sales | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Percentage of Sales by End Market [Line Items] | |||
Percentage of sales | 100.00% | 100.00% | 100.00% |
Manufacturing | |||
Percentage of Sales by End Market [Line Items] | |||
Percentage of sales | 66.70% | 66.50% | 65.90% |
Non-residential construction | |||
Percentage of Sales by End Market [Line Items] | |||
Percentage of sales | 13.10% | 13.00% | 13.60% |
Other | |||
Percentage of Sales by End Market [Line Items] | |||
Percentage of sales | 20.20% | 20.50% | 20.50% |
Revenue - Percentages of Sale_2
Revenue - Percentages of Sales by Product Line (Details) - Product Line - Sales | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 100.00% | 100.00% | 100.00% |
Fasteners | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 34.90% | 35.60% | 36.60% |
Tools | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 10.00% | 10.10% | 9.90% |
Cutting tools | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 5.70% | 5.80% | 5.70% |
Hydraulics and pneumatics | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 6.80% | 6.80% | 6.90% |
Material handling | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 5.80% | 5.90% | 6.00% |
Janitorial supplies | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 7.60% | 7.30% | 7.30% |
Electrical supplies | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 4.70% | 4.90% | 4.80% |
Welding supplies | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 4.10% | 4.20% | 4.20% |
Safety supplies | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 17.20% | 16.30% | 16.00% |
Other | |||
Percentage of Sales by Product Line [Line Items] | |||
Percentage of sales | 3.20% | 3.10% | 2.60% |
Long-Lived Assets - Property An
Long-Lived Assets - Property And Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property and Equipment, Net [Line Items] | ||
Property and equipment | $ 1,746.2 | $ 1,604.9 |
Less accumulated depreciation | (821.4) | (711.3) |
Property and equipment, net | 924.8 | 893.6 |
Land | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment | 36.3 | 38.2 |
Buildings and improvements | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment | 323.1 | 308.2 |
Automated distribution and warehouse equipment | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment | 229.1 | 220 |
Shelving, industrial vending, and equipment | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment | 927.6 | 812.9 |
Transportation equipment | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment | 77.9 | 76.3 |
Construction in progress | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment | $ 152.2 | $ 149.3 |
Minimum | Buildings and improvements | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 15 years | |
Minimum | Automated distribution and warehouse equipment | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 5 years | |
Minimum | Shelving, industrial vending, and equipment | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 3 years | |
Minimum | Transportation equipment | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 3 years | |
Maximum | Buildings and improvements | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 40 years | |
Maximum | Automated distribution and warehouse equipment | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 30 years | |
Maximum | Shelving, industrial vending, and equipment | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 10 years | |
Maximum | Transportation equipment | ||
Property and Equipment, Net [Line Items] | ||
Depreciable life in years | 5 years |
Long-Lived Assets - Geographic
Long-Lived Assets - Geographic Areas (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Long-Lived Assets by Geographic Areas [Line Items] | |||
Total long-lived Assets | $ 1,005.3 | $ 974.8 | $ 948.1 |
United States | |||
Long-Lived Assets by Geographic Areas [Line Items] | |||
Total long-lived Assets | 947.7 | 919.5 | 899.1 |
All foreign countries | |||
Long-Lived Assets by Geographic Areas [Line Items] | |||
Total long-lived Assets | $ 57.6 | $ 55.3 | $ 49 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Employee payroll and related taxes | $ 27.6 | $ 26 |
Employee bonuses and commissions | 22.8 | 19.8 |
Profit sharing contribution | 13 | 10.6 |
Insurance reserves | 37.6 | 39 |
Indirect taxes | 63.6 | 51.1 |
Customer promotions and marketing | 50.9 | 36.6 |
Other | 25.3 | 10.9 |
Accrued expenses | $ 240.8 | $ 194 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 16, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||||||
Dividends paid (in dollars per share) | $ 1.54 | $ 1.28 | $ 1.2 | |||
Options Granted (in shares) | 6,382,417 | |||||
Options vesting and exercisable period, maximum | 8 years | |||||
Options termination period | 9 years | |||||
Total intrinsic value of stock options exercised | $ 4.2 | $ 6.9 | $ 23.2 | |||
Total unrecognized stock-based compensation expense | $ 13.7 | $ 13.7 | ||||
Weighted average period over which total unrecognized stock-based compensation expense will be recognized | 3 years 10 months 20 days | |||||
Total grant date fair value of stock options vested | $ 5.3 | 4.2 | 7.1 | |||
Total stock-based compensation expense | $ 5.1 | $ 5.2 | $ 4.1 | |||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Dividend declared (in dollars per share) | $ 0.43 | |||||
Options Granted (in shares) | 643,957 | |||||
Option Exercise (Strike) Price (in dollars per share) | $ 52 | |||||
Closing Stock Price on Date of Grant (in dollars per share) | $ 51.41 | |||||
Non-employee Director Options Elected (in shares) | 14,505 | |||||
Non-employee Director Option Exercise (Strike) Price (in dollars per share) | $ 52 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Options Granted) (Details) | 104 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 6,382,417 |
Options Outstanding (in shares) | 3,999,632 |
Options Exercisable (in shares) | 1,554,378 |
January 2, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 543,968 |
Option Exercise (Strike) Price (in dollars per share) | $ / shares | $ 55 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 54.54 |
Options Outstanding (in shares) | 524,256 |
Options Exercisable (in shares) | 21,185 |
January, 3, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 764,789 |
Option Exercise (Strike) Price (in dollars per share) | $ / shares | $ 47 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 46.95 |
Options Outstanding (in shares) | 679,700 |
Options Exercisable (in shares) | 0 |
April 19, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 845,440 |
Option Exercise (Strike) Price (in dollars per share) | $ / shares | $ 46 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 45.74 |
Options Outstanding (in shares) | 683,889 |
Options Exercisable (in shares) | 194,672 |
April 21, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 893,220 |
Option Exercise (Strike) Price (in dollars per share) | $ / shares | $ 42 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 41.26 |
Options Outstanding (in shares) | 622,301 |
Options Exercisable (in shares) | 185,528 |
April 22, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 955,000 |
Option Exercise (Strike) Price (in dollars per share) | $ / shares | $ 56 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 50.53 |
Options Outstanding (in shares) | 511,250 |
Options Exercisable (in shares) | 332,250 |
April 16, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 205,000 |
Option Exercise (Strike) Price (in dollars per share) | $ / shares | $ 54 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 49.25 |
Options Outstanding (in shares) | 88,123 |
Options Exercisable (in shares) | 54,380 |
April 17, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 1,235,000 |
Option Exercise (Strike) Price (in dollars per share) | $ / shares | $ 54 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 49.01 |
Options Outstanding (in shares) | 812,063 |
Options Exercisable (in shares) | 700,813 |
April 19, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 410,000 |
Option Exercise (Strike) Price (in dollars per share) | $ / shares | $ 35 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 31.78 |
Options Outstanding (in shares) | 49,650 |
Options Exercisable (in shares) | 37,150 |
April 20, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 530,000 |
Option Exercise (Strike) Price (in dollars per share) | $ / shares | $ 30 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 27.13 |
Options Outstanding (in shares) | 28,400 |
Options Exercisable (in shares) | 28,400 |
Stockholders' Equity (Fair Valu
Stockholders' Equity (Fair Value Assumptions For Options Granted) (Details) | 12 Months Ended |
Dec. 31, 2018$ / shares | |
January 2, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 2.20% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2.30% |
Expected Stock Volatility | 23.45% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 10.03 |
January, 3, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.90% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2.60% |
Expected Stock Volatility | 24.49% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 8.40 |
April 19, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.30% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2.60% |
Expected Stock Volatility | 26.34% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 8.18 |
April 21, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.30% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2.70% |
Expected Stock Volatility | 26.84% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 7.35 |
April 22, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.80% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2.00% |
Expected Stock Volatility | 28.55% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 9.57 |
April 16, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 0.70% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 1.60% |
Expected Stock Volatility | 37.42% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 12.66 |
April 17, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 0.90% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 1.40% |
Expected Stock Volatility | 39.25% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 13.69 |
April 19, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 2.10% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 1.60% |
Expected Stock Volatility | 39.33% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 11.20 |
April 20, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 2.60% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 1.50% |
Expected Stock Volatility | 39.10% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 8.14 |
Stockholder's Equity (Summary O
Stockholder's Equity (Summary Of Stock Option Plan Activity) (Details) - $ / shares | 12 Months Ended | 104 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Options Outstanding | ||||
Granted (in shares) | 6,382,417 | |||
Outstanding as of End of Period (in shares) | 3,999,632 | 3,999,632 | ||
Exercisable (in shares) | 1,554,378 | 1,554,378 | ||
Stock Option Plan | ||||
Options Outstanding | ||||
Outstanding as of Beginning of Period (in shares) | 3,948,908 | 3,757,947 | ||
Granted (in shares) | 543,968 | 764,789 | ||
Exercised (in shares) | (310,383) | (329,612) | ||
Cancelled/forfeited (in shares) | (182,861) | (244,216) | ||
Outstanding as of End of Period (in shares) | 3,999,632 | 3,948,908 | 3,757,947 | 3,999,632 |
Exercisable (in shares) | 1,554,378 | 1,280,499 | 1,554,378 | |
Exercise Price | ||||
Outstanding as of Beginning of Period (in dollars per share) | $ 48.28 | $ 46.81 | ||
Granted (in dollars per share) | 55 | 47 | ||
Exercised (in dollars per share) | 43.31 | 28.59 | ||
Cancelled/forfeited (in dollars per share) | 48.86 | 48.22 | ||
Outstanding as of End of Period (in dollars per share) | 49.53 | 48.28 | $ 46.81 | $ 49.53 |
Exercisable (in dollars per share) | $ 51.06 | $ 50.07 | $ 51.06 | |
Remaining Life | ||||
Outstanding | 5 years 7 months 9 days | 5 years 10 months 20 days | 5 years 10 months 6 days | |
Granted | 9 years | 9 years | ||
Exercisable | 3 years 8 months 8 days | 3 years 9 months 10 days |
Stockholders' Equity (Reconcili
Stockholders' Equity (Reconciliation Of Denominators Used In Computation Of Basic And Diluted Earnings Per Share) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |||
Basic weighted average shares outstanding (in shares) | 286,966,917 | 288,208,435 | 288,949,525 |
Weighted shares assumed upon exercise of stock options (in shares) | 195,847 | 134,298 | 207,998 |
Diluted weighted average shares outstanding (in shares) | 287,162,764 | 288,342,733 | 289,157,523 |
Stockholders' Equity (Summary O
Stockholders' Equity (Summary Of Anti-Dilutive Options Excluded) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |||
Options to purchase shares of common stock (in shares) | 1,579,757 | 3,524,401 | 3,095,343 |
Weighted average exercise prices of options (in dollars per share) | $ 55.02 | $ 49.85 | $ 50.09 |
Retirement Savings Plan (Narrat
Retirement Savings Plan (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan [Abstract] | |||
Expense related to contribution to employees' retirement accounts | $ 13 | $ 10.6 | $ 8.7 |
Income Taxes (Earnings Before I
Income Taxes (Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 905 | $ 809.4 | $ 739.4 | ||||||||
Foreign | 82 | 63.7 | 50.3 | ||||||||
Earnings before income taxes | $ 229.8 | $ 259.4 | $ 265.9 | $ 231.9 | $ 200.8 | $ 226 | $ 235.4 | $ 210.9 | $ 987 | $ 873.1 | $ 789.7 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||
Federal | $ 143.8 | $ 270.6 | $ 223.9 |
State | 38.8 | 33.2 | 28.2 |
Foreign | 24.1 | 20.5 | 12.6 |
Income tax expense | 206.7 | 324.3 | 264.7 |
Deferred | |||
Federal | 27.4 | (33.1) | 23.2 |
State | 0.2 | 3.3 | 1.2 |
Foreign | 0.8 | 0 | 1.2 |
Income tax expense | 28.4 | (29.8) | 25.6 |
Total | |||
Federal | 171.2 | 237.5 | 247.1 |
State | 39 | 36.5 | 29.4 |
Foreign | 24.9 | 20.5 | 13.8 |
Income tax expense | $ 235.1 | $ 294.5 | $ 290.3 |
Income Taxes (Difference In Inc
Income Taxes (Difference In Income Tax Expense And Expected Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 35.00% | 35.00% |
U.S. federal income tax expense at statutory rate | $ 207.3 | $ 305.6 | $ 276.4 |
State income taxes, net of federal benefit | 30.2 | 21.5 | 20 |
Transition tax | 1.2 | 6.5 | 0 |
Remeasurement of deferred taxes for Tax Act | (11.5) | (30.8) | 0 |
Other, net | 7.9 | (8.3) | (6.1) |
Income tax expense | $ 235.1 | $ 294.5 | $ 290.3 |
Effective income tax rate | 23.80% | 33.70% | 36.80% |
Income Taxes (Summary Of Tempor
Income Taxes (Summary Of Temporary Differences That Give Rise To Deferred Income Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets (liabilities): | ||
Inventory costing and valuation methods | $ 4.2 | $ 3.6 |
Allowance for doubtful accounts | 3.2 | 3 |
Insurance reserves | 8.1 | 8.4 |
Customer promotions | 1.9 | 1.3 |
Stock-based compensation | 5.6 | 5.2 |
Federal and state benefit of uncertain tax positions | 0.8 | 0.9 |
Foreign net operating loss and credit carryforwards | 3.2 | 4.2 |
Foreign valuation allowances | (2.7) | (2.8) |
Other, net | 1.3 | 0.8 |
Total deferred income tax assets | 25.6 | 24.6 |
Property and equipment | (104.7) | (75.2) |
Total deferred income tax liabilities | (104.7) | (75.2) |
Deferred income tax liabilities | $ (79.1) | $ (50.6) |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of The Beginning And Ending Amount Of Total Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year: | $ 4.4 | $ 5.4 |
Increase related to prior year tax positions | 1.8 | 0.4 |
Decrease related to prior year tax positions | (0.6) | (0.5) |
Increase related to current year tax positions | 0.7 | 0.7 |
Decrease related to statute of limitation lapses | (0.9) | (1.1) |
Settlements | (0.1) | (0.5) |
Balance at end of year: | $ 5.3 | $ 4.4 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 235.1 | $ 294.5 | $ 290.3 |
Income tax expense, percent of earnings before income taxes | 23.80% | 33.70% | 36.80% |
Income tax benefit attributable to discrete income tax items | $ 7.1 | ||
Undistributed earnings from foreign subsidiaries | $ 248 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Property Subject to or Available for Operating Lease [Line Items] | |
Leasehold improvements, net book value | $ 2.3 |
Pick-ups | |
Property Subject to or Available for Operating Lease [Line Items] | |
Aggregate residual value guarantee of pick-up leases | $ 80.8 |
Pick-ups | Minimum | |
Property Subject to or Available for Operating Lease [Line Items] | |
Non-cancelable lease term | 1 year |
Average lease term | 39 months |
Pick-ups | Maximum | |
Property Subject to or Available for Operating Lease [Line Items] | |
Renewal option | 72 months |
Average lease term | 45 months |
Operating Leases (Future Minimu
Operating Leases (Future Minimum Lease Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Property Subject to or Available for Operating Lease [Line Items] | |
2,019 | $ 124.1 |
2,020 | 94.6 |
2,021 | 53.7 |
2,022 | 23.7 |
2,023 | 9.7 |
2024 and thereafter | 3.7 |
Total minimum lease payments | 309.5 |
Leased Facilities and Equipment | |
Property Subject to or Available for Operating Lease [Line Items] | |
2,019 | 84.1 |
2,020 | 69.1 |
2,021 | 42.8 |
2,022 | 21.8 |
2,023 | 9.7 |
2024 and thereafter | 3.7 |
Total minimum lease payments | 231.2 |
Leased Vehicles | |
Property Subject to or Available for Operating Lease [Line Items] | |
2,019 | 40 |
2,020 | 25.5 |
2,021 | 10.9 |
2,022 | 1.9 |
2,023 | 0 |
2024 and thereafter | 0 |
Total minimum lease payments | $ 78.3 |
Operating Leases (Rent Expense)
Operating Leases (Rent Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Rent expense | $ 158.2 | $ 155.3 | $ 152.8 |
Leased Facilities and Equipment | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Rent expense | 110.7 | 109.5 | 110.1 |
Leased Vehicles | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Rent expense | $ 47.5 | $ 45.8 | $ 42.7 |
Debt Commitments - Debt Obligat
Debt Commitments - Debt Obligations and Letters of Credit Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total debt | $ 500 | $ 415 |
Less: Current portion of debt | (3) | (3) |
Long-term debt | 497 | 412 |
Credit Facility | Unsecured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 365 | 280 |
Credit Facility | Letter of Credit Subfacility | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit under unsecured revolving credit facility - contingent obligation | $ 36.3 | 36.3 |
Senior Unsecured Promissory Notes | 2.00% Senior Unsecured Promissory Note Payable | ||
Debt Instrument [Line Items] | ||
Fixed interest rate per annum | 2.00% | |
Total debt | $ 40 | 40 |
Senior Unsecured Promissory Notes | 2.45% Senior Unsecured Promissory Note Payable | ||
Debt Instrument [Line Items] | ||
Fixed interest rate per annum | 2.45% | |
Total debt | $ 35 | 35 |
Senior Unsecured Promissory Notes | 3.22% Senior Unsecured Promissory Note Payable | ||
Debt Instrument [Line Items] | ||
Fixed interest rate per annum | 3.22% | |
Total debt | $ 60 | $ 60 |
Debt Commitments - Unsecured Re
Debt Commitments - Unsecured Revolving Credit Facility (Details) - Credit Facility | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |
Weighted per annum interest rate on outstanding line of credit | 3.50% |
Minimum | |
Debt Instrument [Line Items] | |
Percentage fee paid for unused portion of credit facility | 0.10% |
Maximum | |
Debt Instrument [Line Items] | |
Percentage fee paid for unused portion of credit facility | 0.125% |
LIBOR | |
Debt Instrument [Line Items] | |
Per annum interest rate over LIBOR | 0.95% |
Unsecured Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Credit facility, maximum borrowing capacity | $ 700,000,000 |
Letter of Credit Subfacility | |
Debt Instrument [Line Items] | |
Credit facility, maximum borrowing capacity | $ 55,000,000 |
Debt Commitments - Senior Unsec
Debt Commitments - Senior Unsecured Promissory Notes Payable (Details) - Senior Unsecured Promissory Notes | Dec. 31, 2018USD ($)debt_instrument_series |
Debt Instrument [Line Items] | |
Debt issuance, aggregate principal amount | $ 135,000,000 |
Maximum aggregate borrowing capacity | $ 600,000,000 |
Number of debt instrument Series | debt_instrument_series | 3 |
2.00% Senior Unsecured Promissory Note Payable | |
Debt Instrument [Line Items] | |
Debt issuance, aggregate principal amount | $ 40,000,000 |
Fixed interest rate per annum | 2.00% |
2.45% Senior Unsecured Promissory Note Payable | |
Debt Instrument [Line Items] | |
Debt issuance, aggregate principal amount | $ 35,000,000 |
Fixed interest rate per annum | 2.45% |
3.22% Senior Unsecured Promissory Note Payable | |
Debt Instrument [Line Items] | |
Debt issuance, aggregate principal amount | $ 60,000,000 |
Fixed interest rate per annum | 3.22% |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Net Sales | $ 1,231.6 | $ 1,279.8 | $ 1,267.9 | $ 1,185.8 | $ 1,088.5 | $ 1,132.8 | $ 1,121.5 | $ 1,047.7 | $ 4,965.1 | $ 4,390.5 | $ 3,962 |
Gross Profit | 587.8 | 615.8 | 617.7 | 577.6 | 531.2 | 555.9 | 558.5 | 518 | 2,398.9 | 2,163.6 | 1,964.8 |
Pre-tax Earnings | 229.8 | 259.4 | 265.9 | 231.9 | 200.8 | 226 | 235.4 | 210.9 | 987 | 873.1 | 789.7 |
Net Earnings | $ 168.8 | $ 197.6 | $ 211.2 | $ 174.3 | $ 152.4 | $ 143.1 | $ 148.9 | $ 134.2 | $ 751.9 | $ 578.6 | $ 499.4 |
Basic Net Earnings per Share (in dollars per share) | $ 0.59 | $ 0.69 | $ 0.74 | $ 0.61 | $ 0.53 | $ 0.50 | $ 0.52 | $ 0.46 | $ 2.62 | $ 2.01 | $ 1.73 |
Diluted Net Earnings per Share (in dollars per share) | $ 0.59 | $ 0.69 | $ 0.74 | $ 0.61 | $ 0.53 | $ 0.50 | $ 0.52 | $ 0.46 | $ 2.62 | $ 2.01 | $ 1.73 |
Net earnings, absent impact of tax act | $ 145.2 | $ 164.3 | $ 168.7 | $ 147 | $ 128.1 | $ 625.2 | $ 554.2 | ||||
Basic net earnings per share, absent impact of tax act (in dollars per share) | $ 0.51 | $ 0.57 | $ 0.59 | $ 0.51 | $ 0.45 | $ 2.18 | $ 1.92 | ||||
Diluted net earnings per share, absent impact of tax act (in dollars per share) | $ 0.51 | $ 0.57 | $ 0.59 | $ 0.51 | $ 0.45 | $ 2.18 | $ 1.92 |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance For Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 11.9 | $ 11.2 | $ 11.7 |
Additions Charged to Costs and Expenses | 8.1 | 8.2 | 8.5 |
Other Additions (Deductions) | 0 | 0 | 0 |
Less Deductions | 7.2 | 7.5 | 9 |
Balance at End of Year | 12.8 | 11.9 | 11.2 |
Insurance Reserves | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 39 | 34.6 | 31.8 |
Additions Charged to Costs and Expenses | 66.9 | 68.2 | 62.3 |
Other Additions (Deductions) | 0 | 0 | 0 |
Less Deductions | 68.3 | 63.8 | 59.5 |
Balance at End of Year | $ 37.6 | $ 39 | $ 34.6 |