Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 10, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | fast | |
Entity Registrant Name | FASTENAL CO | |
Entity Central Index Key | 0000815556 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 286,314,823 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 185.4 | $ 167.2 |
Trade accounts receivable, net of allowance for doubtful accounts of $11.8 and $12.8, respectively | 793 | 714.3 |
Inventories | 1,293.9 | 1,278.7 |
Prepaid income taxes | 0 | 9 |
Other current assets | 116.9 | 147 |
Total current assets | 2,389.2 | 2,316.2 |
Property and equipment, net | 943.3 | 924.8 |
Operating lease right-of-use assets | 220.9 | 0 |
Other assets | 98.4 | 80.5 |
Total assets | 3,651.8 | 3,321.5 |
Current liabilities: | ||
Current portion of debt | 4.4 | 3 |
Accounts payable | 183.9 | 193.6 |
Accrued expenses | 232.8 | 240.8 |
Current portion of operating lease liabilities | 91.8 | 0 |
Income taxes payable | 41.7 | 0 |
Total current liabilities | 554.6 | 437.4 |
Long-term debt | 484.6 | 497 |
Operating lease liabilities | 130.4 | 0 |
Deferred income taxes | 85 | 84.4 |
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, 286,265,537 and 285,901,919 shares issued and outstanding, respectively | 2.9 | 2.9 |
Additional paid-in capital | 22.7 | 3 |
Retained earnings | 2,412.7 | 2,341.6 |
Accumulated other comprehensive loss | (41.1) | (44.8) |
Total stockholders' equity | 2,397.2 | 2,302.7 |
Total liabilities and stockholders' equity | $ 3,651.8 | $ 3,321.5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Trade accounts receivable, allowance for doubtful accounts | $ 11.8 | $ 12.8 |
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) | 286,265,537 | 285,901,919 |
Outstanding (in shares) | 286,265,537 | 285,901,919 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 1,309.3 | $ 1,185.8 |
Cost of sales | 684.6 | 608.2 |
Gross profit | 624.7 | 577.6 |
Operating and administrative expenses | 363.6 | 342.7 |
(Gain) loss on sale of property and equipment | (0.3) | 0.4 |
Operating income | 261.4 | 234.5 |
Interest income | 0.1 | 0.1 |
Interest expense | (4) | (2.7) |
Earnings before income taxes | 257.5 | 231.9 |
Income tax expense | 63.4 | 57.6 |
Net earnings | $ 194.1 | $ 174.3 |
Basic net earnings per share (in dollars per share) | $ 0.68 | $ 0.61 |
Diluted net earnings per share (in dollars per share) | $ 0.68 | $ 0.61 |
Basic weighted average shares outstanding (in shares) | 286,086,301 | 287,642,801 |
Diluted weighted average shares outstanding (in shares) | 286,496,981 | 287,875,763 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 194.1 | $ 174.3 |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments (net of tax of $0.00 in 2019 and 2018) | 3.7 | 2 |
Comprehensive income | $ 197.8 | $ 176.3 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) |
Balance at beginning of period at Dec. 31, 2017 | $ 2.9 | $ 8.5 | $ 2,110.6 | $ (25.1) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock options exercised | 3.8 | ||||
Stock-based compensation | 1.4 | ||||
Net earnings | $ 174.3 | 174.3 | |||
Dividends paid in cash | (106.4) | ||||
Other comprehensive income | 2 | ||||
Balance at end of period at Mar. 31, 2018 | $ 2,172 | 2.9 | 13.7 | 2,178.5 | (23.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cash dividends declared per share of common stock (in dollars per share) | $ 0.37 | ||||
Balance at beginning of period at Dec. 31, 2018 | $ 2,302.7 | 2.9 | 3 | 2,341.6 | (44.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock options exercised | 18.1 | ||||
Stock-based compensation | 1.6 | ||||
Net earnings | 194.1 | 194.1 | |||
Dividends paid in cash | (123) | ||||
Other comprehensive income | 3.7 | ||||
Balance at end of period at Mar. 31, 2019 | $ 2,397.2 | $ 2.9 | $ 22.7 | $ 2,412.7 | $ (41.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cash dividends declared per share of common stock (in dollars per share) | $ 0.43 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 194.1 | $ 174.3 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation of property and equipment | 35.4 | 32.4 |
(Gain) loss on sale of property and equipment | (0.3) | 0.4 |
Bad debt expense | 2 | 1.3 |
Deferred income taxes | 0.6 | 12.1 |
Stock-based compensation | 1.6 | 1.4 |
Amortization of intangible assets | 1 | 1 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (79.5) | (82.4) |
Inventories | (13.5) | (41.2) |
Other current assets | 30.1 | 18.4 |
Accounts payable | (9.7) | 0.6 |
Accrued expenses | (8) | 5.7 |
Income taxes | 50.7 | 35.6 |
Other | 0.4 | 0.1 |
Net cash provided by operating activities | 204.9 | 159.7 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (54.4) | (31.5) |
Proceeds from sale of property and equipment | 1.6 | 2.7 |
Other | 0.1 | (0.1) |
Net cash used in investing activities | (52.7) | (28.9) |
Cash flows from financing activities: | ||
Proceeds from debt obligations | 210 | 180 |
Payments against debt obligations | (240) | (190) |
Proceeds from exercise of stock options | 18.1 | 3.8 |
Payments of dividends | (123) | (106.4) |
Net cash used in financing activities | (134.9) | (112.6) |
Effect of exchange rate changes on cash and cash equivalents | 0.9 | 2 |
Net increase in cash and cash equivalents | 18.2 | 20.2 |
Cash and cash equivalents at beginning of period | 167.2 | 116.9 |
Cash and cash equivalents at end of period | 185.4 | 137.1 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 4 | 2.7 |
Net cash paid for income taxes | $ 11.7 | $ 9.6 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Fastenal Company and subsidiaries (collectively referred to as the company, Fastenal, or by terms such as we, our, or us) have been prepared in accordance with U.S. generally accepted accounting principles ('GAAP') for interim financial information. They do not include all information and footnotes required by U.S. GAAP for complete financial statements. However, except as described herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in our consolidated financial statements as of and for the year ended December 31, 2018 . In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Recently Adopted Accounting Pronouncements Effective January 1, 2019, we adopted the Financial Accounting Standards Board ('FASB') Accounting Standards Update ('ASU') 2016-02, Leases , which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. 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 included 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, which we elected. As a result of the adoption of ASC 842 on January 1, 2019, we recorded both operating lease right-of-use ('ROU') assets of $227.5 and lease liabilities of $228.3 . The adoption of ASC 842 had an immaterial impact on our Condensed Consolidated Statement of Earnings and Condensed Consolidated Statement of Cash Flows for the three-month period ended March 31, 2019. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard which allowed us to carry forward the historical lease classification. Additional information and disclosures required by this new standard are contained in Note 5, 'Operating Leases' . |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | (2) Revenue 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. Disaggregation of Revenue Our revenues related to the following geographic areas were as follows for the periods ended March 31 : Three-month Period 2019 2018 United States $ 1,124.8 1,028.5 All foreign countries 184.5 157.3 Total revenues $ 1,309.3 1,185.8 The percentages of our sales by end market were as follows for the periods ended March 31 : Three-month Period 2019 2018 Manufacturing 67.8 % 67.7 % Non-residential construction 12.7 % 12.7 % Other 19.5 % 19.6 % 100.0 % 100.0 % The percentages of our sales by product line were as follows for the periods ended March 31 : Three-month Period Type Introduced 2019 2018 Fasteners (1) 1967 34.8 % 35.0 % Tools 1993 9.9 % 10.2 % Cutting tools 1996 5.9 % 5.7 % Hydraulics & pneumatics 1996 6.9 % 7.0 % Material handling 1996 5.8 % 5.8 % Janitorial supplies 1996 7.5 % 7.4 % Electrical supplies 1997 4.7 % 4.8 % Welding supplies 1997 4.1 % 4.2 % Safety supplies 1999 17.2 % 16.8 % Other 3.2 % 3.1 % 100.0 % 100.0 % (1) The fasteners product line represents fasteners and miscellaneous supplies. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | (3) Stockholders' Equity Dividends On April 10, 2019 , our board of directors declared a dividend of $0.43 per share of common stock to be paid in cash on May 22, 2019 to shareholders of record at the close of business on April 24, 2019 . Since 2011, we have paid quarterly dividends. Our board of directors intends to continue paying quarterly dividends, provided that any future determination as to payment of dividends will depend on the financial condition and results of operations of the company and such other factors as are deemed relevant by the board of directors. The following table presents the dividends either paid previously or declared by our board of directors for future payment on a per share basis: 2019 2018 First quarter $ 0.43 0.37 Second quarter 0.43 0.37 Third quarter 0.40 Fourth quarter 0.40 Total $ 0.86 1.54 Stock Options The following tables summarize the details of options granted under our stock option plans that were still outstanding as of March 31, 2019 , and the assumptions used to value these 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 March 31, 2019 Date of Grant Options Outstanding Options Exercisable January 2, 2019 658,462 $ 52.00 $ 51.41 657,118 14,505 January 2, 2018 543,968 $ 55.00 $ 54.54 519,349 21,185 January 3, 2017 764,789 $ 47.00 $ 46.95 646,854 206,755 April 19, 2016 845,440 $ 46.00 $ 45.74 668,947 185,055 April 21, 2015 893,220 $ 42.00 $ 41.26 575,476 142,607 April 22, 2014 955,000 $ 56.00 $ 50.53 445,900 266,900 April 16, 2013 205,000 $ 54.00 $ 49.25 74,435 42,567 April 17, 2012 1,235,000 $ 54.00 $ 49.01 643,713 534,963 April 19, 2011 410,000 $ 35.00 $ 31.78 38,650 26,150 Total 6,510,879 4,270,442 1,440,687 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, 2019 2.5 % 5.00 2.9 % 23.96 % $ 8.79 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 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. Compensation expense equal to the grant date fair value is recognized for all of these awards over the vesting period. The stock-based compensation expense for the three -month periods ended March 31, 2019 and 2018 was $1.6 and $1.4 , respectively. Unrecognized stock-based compensation expense related to outstanding unvested stock options as of March 31, 2019 was $17.0 and is expected to be recognized over a weighted average period of 4.28 years . Any future changes in estimated forfeitures will impact this amount. 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 per share calculation because they were anti-dilutive: Three-month Period Reconciliation 2019 2018 Basic weighted average shares outstanding 286,086,301 287,642,801 Weighted shares assumed upon exercise of stock options 410,680 232,962 Diluted weighted average shares outstanding 286,496,981 287,875,763 Three-month Period Summary of Anti-dilutive Options Excluded 2019 2018 Options to purchase shares of common stock 1,454,355 1,616,963 Weighted average exercise prices of options $ 53.87 55.02 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (4) Income Taxes Fastenal files 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. During the first quarter of 2019, there were no material changes in unrecognized tax benefits. |
Operating Leases
Operating Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Operating Leases | (5) 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. Further, the leases do not contain contingent rent provisions. We also lease certain semi-tractors, pick-up trucks, and computer equipment under operating leases. Many of our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. Our pick-up truck leases typically have a non-cancelable lease term of less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our ROU assets and lease liabilities. Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our ROU assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate. 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 $85.2 . 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. The cost components of our operating leases were as follows for the period ended March 31, 2019: Three-month Period Leased Facilities and Equipment Leased Vehicles Total Operating lease cost $ 25.7 3.1 28.8 Variable lease cost 3.3 0.4 3.7 Short-term lease cost — 7.3 7.3 Total $ 29.0 10.8 39.8 Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment which are paid based on actual costs incurred by the lessor as well as variable mileage costs related to our leased vehicles. Maturities of our lease liabilities for all operating leases are as follows as of March 31, 2019: Leased Facilities and Equipment Leased Vehicles Total 2019 $ 66.0 8.0 74.0 2020 68.5 7.1 75.6 2021 43.5 2.9 46.4 2022 22.7 0.7 23.4 2023 10.7 0.2 10.9 2024 and thereafter 3.8 0.2 4.0 Total lease payments $ 215.2 19.1 234.3 Less: Interest (11.4 ) (0.7 ) (12.1 ) Present value of lease liabilities $ 203.8 18.4 222.2 The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 31, 2019: Remaining lease term and discount rate: March 31, 2019 Weighted average remaining lease term (years) Leased facilities and equipment 3.14 Leased vehicles 2.24 Weighted average discount rate Lease facilities and equipment 3.57% Leased vehicles 3.48% Supplemental cash flow information related to our operating leases was as follows for the period ended March 31, 2019: Three-month Period Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 28.4 Leased assets obtained in exchange for new operating lease liabilities 21.8 |
Debt Commitments
Debt Commitments | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Commitments | 6) Debt Commitments Credit Facility, Notes Payable, Industrial Revenue Bonds, and Commitments Debt obligations and letters of credit outstanding at the end of each period consisted of the following: March 31, 2019 December 31, 2018 Outstanding loans under unsecured revolving credit facility $ 335.0 365.0 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 Industrial revenue bonds 19.0 — Total debt 489.0 500.0 Less: Current portion of debt (4.4 ) (3.0 ) Long-term debt $ 484.6 497.0 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 March 31, 2019 was approximately 3.4% . 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. Industrial Revenue Bonds We have been expanding our office and distribution facility at our Kansas City, Kansas location and financed the expansion of this facility under two Industrial Revenue Bonds ('IRBs') with an aggregate principal amount of $19.0 . We subsequently purchased 100% of the outstanding bonds under the IRBs at par and under the IRB debt agreement, we have the right of offset. Accordingly, the impact of the IRB has been reflected as a non-cash transaction in the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2019. The purchase of the $19.0 of outstanding IRBs is included in other assets and the $19.0 debt obligation is included in long-term debt on the Condensed Consolidated Balance Sheet as of March 31, 2019. |
Legal Contingencies
Legal Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Contingencies | (7) Legal Contingencies The nature of our potential exposure to legal contingencies is described in our 2018 annual report on Form 10-K in Note 10 of the Notes to Consolidated Financial Statements. As of March 31, 2019 , there were no litigation matters that we consider to be probable or reasonably possible to have a material adverse outcome. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | (8) Subsequent Events We evaluated all subsequent event activity and concluded that no subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the Notes to Condensed Consolidated Financial Statements, with the exception of the dividend declaration disclosed in Note 3 'Stockholders' Equity'. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of Fastenal Company and subsidiaries (collectively referred to as the company, Fastenal, or by terms such as we, our, or us) have been prepared in accordance with U.S. generally accepted accounting principles ('GAAP') for interim financial information. They do not include all information and footnotes required by U.S. GAAP for complete financial statements. However, except as described herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in our consolidated financial statements as of and for the year ended December 31, 2018 . In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective January 1, 2019, we adopted the Financial Accounting Standards Board ('FASB') Accounting Standards Update ('ASU') 2016-02, Leases , which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. 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 included 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, which we elected. As a result of the adoption of ASC 842 on January 1, 2019, we recorded both operating lease right-of-use ('ROU') assets of $227.5 and lease liabilities of $228.3 . The adoption of ASC 842 had an immaterial impact on our Condensed Consolidated Statement of Earnings and Condensed Consolidated Statement of Cash Flows for the three-month period ended March 31, 2019. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard which allowed us to carry forward the historical lease classification. Additional information and disclosures required by this new standard are contained in Note 5, 'Operating Leases' . |
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. |
Lease and Nonlease Components | Many of our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. |
Short-term Leases | Our pick-up truck leases typically have a non-cancelable lease term of less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our ROU assets and lease liabilities. |
Lessee, Leases | Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our ROU assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate. 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. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Our revenues related to the following geographic areas were as follows for the periods ended March 31 : Three-month Period 2019 2018 United States $ 1,124.8 1,028.5 All foreign countries 184.5 157.3 Total revenues $ 1,309.3 1,185.8 The percentages of our sales by end market were as follows for the periods ended March 31 : Three-month Period 2019 2018 Manufacturing 67.8 % 67.7 % Non-residential construction 12.7 % 12.7 % Other 19.5 % 19.6 % 100.0 % 100.0 % The percentages of our sales by product line were as follows for the periods ended March 31 : Three-month Period Type Introduced 2019 2018 Fasteners (1) 1967 34.8 % 35.0 % Tools 1993 9.9 % 10.2 % Cutting tools 1996 5.9 % 5.7 % Hydraulics & pneumatics 1996 6.9 % 7.0 % Material handling 1996 5.8 % 5.8 % Janitorial supplies 1996 7.5 % 7.4 % Electrical supplies 1997 4.7 % 4.8 % Welding supplies 1997 4.1 % 4.2 % Safety supplies 1999 17.2 % 16.8 % Other 3.2 % 3.1 % 100.0 % 100.0 % (1) The fasteners product line represents fasteners and miscellaneous supplies. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends Paid Previously or Declared | The following table presents the dividends either paid previously or declared by our board of directors for future payment on a per share basis: 2019 2018 First quarter $ 0.43 0.37 Second quarter 0.43 0.37 Third quarter 0.40 Fourth quarter 0.40 Total $ 0.86 1.54 |
Stock Options Granted | The following tables summarize the details of options granted under our stock option plans that were still outstanding as of March 31, 2019 , and the assumptions used to value these 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 March 31, 2019 Date of Grant Options Outstanding Options Exercisable January 2, 2019 658,462 $ 52.00 $ 51.41 657,118 14,505 January 2, 2018 543,968 $ 55.00 $ 54.54 519,349 21,185 January 3, 2017 764,789 $ 47.00 $ 46.95 646,854 206,755 April 19, 2016 845,440 $ 46.00 $ 45.74 668,947 185,055 April 21, 2015 893,220 $ 42.00 $ 41.26 575,476 142,607 April 22, 2014 955,000 $ 56.00 $ 50.53 445,900 266,900 April 16, 2013 205,000 $ 54.00 $ 49.25 74,435 42,567 April 17, 2012 1,235,000 $ 54.00 $ 49.01 643,713 534,963 April 19, 2011 410,000 $ 35.00 $ 31.78 38,650 26,150 Total 6,510,879 4,270,442 1,440,687 |
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, 2019 2.5 % 5.00 2.9 % 23.96 % $ 8.79 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 |
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 per share calculation because they were anti-dilutive: Three-month Period Reconciliation 2019 2018 Basic weighted average shares outstanding 286,086,301 287,642,801 Weighted shares assumed upon exercise of stock options 410,680 232,962 Diluted weighted average shares outstanding 286,496,981 287,875,763 |
Anti-Dilutive Options Excluded | Three-month Period Summary of Anti-dilutive Options Excluded 2019 2018 Options to purchase shares of common stock 1,454,355 1,616,963 Weighted average exercise prices of options $ 53.87 55.02 |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Cost Components of Operating Leases, Weighted Average Lease Terms, and Discount Rates | The cost components of our operating leases were as follows for the period ended March 31, 2019: Three-month Period Leased Facilities and Equipment Leased Vehicles Total Operating lease cost $ 25.7 3.1 28.8 Variable lease cost 3.3 0.4 3.7 Short-term lease cost — 7.3 7.3 Total $ 29.0 10.8 39.8 The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 31, 2019: Remaining lease term and discount rate: March 31, 2019 Weighted average remaining lease term (years) Leased facilities and equipment 3.14 Leased vehicles 2.24 Weighted average discount rate Lease facilities and equipment 3.57% Leased vehicles 3.48% |
Maturities of Lease Liabilities | Maturities of our lease liabilities for all operating leases are as follows as of March 31, 2019: Leased Facilities and Equipment Leased Vehicles Total 2019 $ 66.0 8.0 74.0 2020 68.5 7.1 75.6 2021 43.5 2.9 46.4 2022 22.7 0.7 23.4 2023 10.7 0.2 10.9 2024 and thereafter 3.8 0.2 4.0 Total lease payments $ 215.2 19.1 234.3 Less: Interest (11.4 ) (0.7 ) (12.1 ) Present value of lease liabilities $ 203.8 18.4 222.2 |
Supplemental Cash Flow Information | Supplemental cash flow information related to our operating leases was as follows for the period ended March 31, 2019: Three-month Period Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 28.4 Leased assets obtained in exchange for new operating lease liabilities 21.8 |
Debt Commitments (Tables)
Debt Commitments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations and Letters of Credit Outstanding | Debt obligations and letters of credit outstanding at the end of each period consisted of the following: March 31, 2019 December 31, 2018 Outstanding loans under unsecured revolving credit facility $ 335.0 365.0 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 Industrial revenue bonds 19.0 — Total debt 489.0 500.0 Less: Current portion of debt (4.4 ) (3.0 ) Long-term debt $ 484.6 497.0 Outstanding letters of credit under unsecured revolving credit facility - contingent obligation $ 36.3 36.3 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use asset | $ 220.9 | $ 0 | |
Operating lease liabilities | $ 222.2 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use asset | $ 227.5 | ||
Operating lease liabilities | $ 228.3 |
Revenue - Revenues by Geographi
Revenue - Revenues by Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues by Geographic Areas [Line Items] | ||
Total revenues | $ 1,309.3 | $ 1,185.8 |
United States | ||
Revenues by Geographic Areas [Line Items] | ||
Total revenues | 1,124.8 | 1,028.5 |
All foreign countries | ||
Revenues by Geographic Areas [Line Items] | ||
Total revenues | $ 184.5 | $ 157.3 |
Revenue - Percentages of Sales
Revenue - Percentages of Sales by End Market (Details) - End Market - Sales | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Percentage of Sales by End Market [Line Items] | ||
Percentage of sales | 100.00% | 100.00% |
Manufacturing | ||
Percentage of Sales by End Market [Line Items] | ||
Percentage of sales | 67.80% | 67.70% |
Non-residential construction | ||
Percentage of Sales by End Market [Line Items] | ||
Percentage of sales | 12.70% | 12.70% |
Other | ||
Percentage of Sales by End Market [Line Items] | ||
Percentage of sales | 19.50% | 19.60% |
Revenue - Percentages of Sale_2
Revenue - Percentages of Sales by Product Line (Details) - Product Line - Sales | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Percentage of Sales by Product Line [Line Items] | ||
Percentage of sales | 100.00% | 100.00% |
Fasteners | ||
Percentage of Sales by Product Line [Line Items] | ||
Percentage of sales | 34.80% | 35.00% |
Tools | ||
Percentage of Sales by Product Line [Line Items] | ||
Percentage of sales | 9.90% | 10.20% |
Cutting tools | ||
Percentage of Sales by Product Line [Line Items] | ||
Percentage of sales | 5.90% | 5.70% |
Hydraulics & pneumatics | ||
Percentage of Sales by Product Line [Line Items] | ||
Percentage of sales | 6.90% | 7.00% |
Material handling | ||
Percentage of Sales by Product Line [Line Items] | ||
Percentage of sales | 5.80% | 5.80% |
Janitorial supplies | ||
Percentage of Sales by Product Line [Line Items] | ||
Percentage of sales | 7.50% | 7.40% |
Electrical supplies | ||
Percentage of Sales by Product Line [Line Items] | ||
Percentage of sales | 4.70% | 4.80% |
Welding supplies | ||
Percentage of Sales by Product Line [Line Items] | ||
Percentage of sales | 4.10% | 4.20% |
Safety Supplies | ||
Percentage of Sales by Product Line [Line Items] | ||
Percentage of sales | 17.20% | 16.80% |
Other | ||
Percentage of Sales by Product Line [Line Items] | ||
Percentage of sales | 3.20% | 3.10% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 10, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Subsequent Event [Line Items] | |||
Dividend declared (in dollars per share) | $ 0.43 | $ 0.37 | |
Share-based Compensation [Abstract] | |||
Options vesting and exercisable period, maximum | 8 years | ||
Options termination period | 9 years | ||
Total stock-based compensation expense | $ 1.6 | $ 1.4 | |
Total unrecognized stock-based compensation expense | $ 17 | ||
Weighted average period over which total unrecognized stock-based compensation expense will be recognized | 4 years 3 months 10 days | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividend declared (in dollars per share) | $ 0.43 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Dividends Paid Previously or Declared (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Dividends Per Share [Line Items] | ||||||||
Dividends paid (in dollars per share) | $ 0.43 | $ 0.4 | $ 0.4 | $ 0.37 | $ 0.37 | $ 1.54 | ||
Forecast | ||||||||
Dividends Per Share [Line Items] | ||||||||
Dividends paid (in dollars per share) | $ 0.43 | $ 0.86 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options Granted (Details) | 95 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 6,510,879 |
Options Outstanding (in shares) | 4,270,442 |
Options Exercisable (in shares) | 1,440,687 |
January 2, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted (in shares) | 658,462 |
Option Exercise (Strike) Price (in dollars per share) | $ / shares | $ 52 |
Closing Stock Price on Date of Grant (in dollars per share) | $ / shares | $ 51.41 |
Options Outstanding (in shares) | 657,118 |
Options Exercisable (in shares) | 14,505 |
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) | 519,349 |
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) | 646,854 |
Options Exercisable (in shares) | 206,755 |
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) | 668,947 |
Options Exercisable (in shares) | 185,055 |
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) | 575,476 |
Options Exercisable (in shares) | 142,607 |
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) | 445,900 |
Options Exercisable (in shares) | 266,900 |
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) | 74,435 |
Options Exercisable (in shares) | 42,567 |
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) | 643,713 |
Options Exercisable (in shares) | 534,963 |
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) | 38,650 |
Options Exercisable (in shares) | 26,150 |
Stockholders' Equity - Fair Val
Stockholders' Equity - Fair Value Assumptions for Options Granted (Details) | 3 Months Ended |
Mar. 31, 2019$ / shares | |
January 2, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 2.50% |
Expected Life of Option in Years | 5 years |
Expected Dividend Yield | 2.90% |
Expected Stock Volatility | 23.96% |
Estimated Fair Value of Stock Option (in dollars per share) | $ 8.79 |
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 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Denominators used in Computation of Basic and Diluted Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | ||
Basic weighted average shares outstanding (in shares) | 286,086,301 | 287,642,801 |
Weighted shares assumed upon exercise of stock options (in shares) | 410,680 | 232,962 |
Diluted weighted average shares outstanding (in shares) | 286,496,981 | 287,875,763 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Anti-Dilutive Options Excluded (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | ||
Options to purchase shares of common stock (in shares) | 1,454,355 | 1,616,963 |
Weighted average exercise prices of options (in dollars per share) | $ 53.87 | $ 55.02 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |
Material changes in unrecognized tax benefits | $ 0 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) - Pick-up trucks $ in Millions | Mar. 31, 2019USD ($) |
Property Subject to or Available for Operating Lease [Line Items] | |
Non-cancelable lease term (less than) | 1 year |
Aggregate residual value guarantee of pick-up leases | $ 85.2 |
Operating Leases - Cost Compone
Operating Leases - Cost Components of Operating Leases (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 28.8 |
Variable lease cost | 3.7 |
Short-term lease cost | 7.3 |
Total | 39.8 |
Leased Facilities and Equipment | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 25.7 |
Variable lease cost | 3.3 |
Short-term lease cost | 0 |
Total | 29 |
Leased Vehicles | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 3.1 |
Variable lease cost | 0.4 |
Short-term lease cost | 7.3 |
Total | $ 10.8 |
Operating Leases - Maturities o
Operating Leases - Maturities of Lease Liabilities (Details) $ in Millions | Mar. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
2019 | $ 74 |
2020 | 75.6 |
2021 | 46.4 |
2022 | 23.4 |
2023 | 10.9 |
2024 and thereafter | 4 |
Total lease payments | 234.3 |
Less: Interest | (12.1) |
Present value of lease liabilities | 222.2 |
Leased Facilities and Equipment | |
Lessee, Lease, Description [Line Items] | |
2019 | 66 |
2020 | 68.5 |
2021 | 43.5 |
2022 | 22.7 |
2023 | 10.7 |
2024 and thereafter | 3.8 |
Total lease payments | 215.2 |
Less: Interest | (11.4) |
Present value of lease liabilities | 203.8 |
Leased Vehicles | |
Lessee, Lease, Description [Line Items] | |
2019 | 8 |
2020 | 7.1 |
2021 | 2.9 |
2022 | 0.7 |
2023 | 0.2 |
2024 and thereafter | 0.2 |
Total lease payments | 19.1 |
Less: Interest | (0.7) |
Present value of lease liabilities | $ 18.4 |
Operating Leases - Weighted Ave
Operating Leases - Weighted Average Lease Term and Discount Rates (Details) | Mar. 31, 2019 |
Leased Facilities and Equipment | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term (years) | 3 years 1 month 20 days |
Weighted average discount rate | 3.57% |
Leased Vehicles | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term (years) | 2 years 2 months 26 days |
Weighted average discount rate | 3.48% |
Operating Leases - Supplemental
Operating Leases - Supplemental Cash Flow Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash outflow from operating leases | $ 28.4 |
Leased assets obtained in exchange for new operating lease liabilities | $ 21.8 |
Debt Commitments - Debt Obligat
Debt Commitments - Debt Obligations and Letters of Credit Outstanding (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 489,000,000 | $ 500,000,000 |
Less: Current portion of debt | (4,400,000) | (3,000,000) |
Long-term debt | 484,600,000 | 497,000,000 |
Credit Facility | Unsecured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 335,000,000 | 365,000,000 |
Credit Facility | Letter of Credit Subfacility | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit under unsecured revolving credit facility - contingent obligation | 36,300,000 | 36,300,000 |
Senior Unsecured Promissory Notes | 2.00% Senior Unsecured Promissory Note Payable | ||
Debt Instrument [Line Items] | ||
Total debt | $ 40,000,000 | 40,000,000 |
Fixed interest rate per annum | 2.00% | |
Senior Unsecured Promissory Notes | 2.45% Senior Unsecured Promissory Note Payable | ||
Debt Instrument [Line Items] | ||
Total debt | $ 35,000,000 | 35,000,000 |
Fixed interest rate per annum | 2.45% | |
Senior Unsecured Promissory Notes | 3.22% Senior Unsecured Promissory Note Payable | ||
Debt Instrument [Line Items] | ||
Total debt | $ 60,000,000 | 60,000,000 |
Fixed interest rate per annum | 3.22% | |
Industrial Revenue Bonds | ||
Debt Instrument [Line Items] | ||
Total debt | $ 19,000,000 | $ 0 |
Debt Commitments - Unsecured Re
Debt Commitments - Unsecured Revolving Credit Facility (Details) - Credit Facility | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Weighted per annum interest rate on outstanding line of credit | 3.40% |
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 | Mar. 31, 2019USD ($)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% |
Debt Commitments - Industrial R
Debt Commitments - Industrial Revenue Bonds (Details) | Mar. 31, 2019USD ($)bond | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||
Purchase of outstanding IRBs, other assets | $ 98,400,000 | $ 80,500,000 |
Debt obligation of outstanding IRBs | 489,000,000 | 500,000,000 |
Industrial Revenue Bonds | ||
Debt Instrument [Line Items] | ||
Purchase of outstanding IRBs, other assets | $ 19,000,000 | |
Industrial Revenue Bonds | ||
Debt Instrument [Line Items] | ||
Number of debt instruments | bond | 2 | |
Debt issuance, aggregate principal amount of IRBs | $ 19,000,000 | |
Percent of outstanding IRBs purchased | 100.00% | |
Debt obligation of outstanding IRBs | $ 19,000,000 | $ 0 |