Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document and Entity Information | ||
Document type | 10-Q | |
Amendment flag | false | |
Document period end date | Mar. 31, 2019 | |
Document fiscal year focus | 2019 | |
Current fiscal year end date | --12-31 | |
Document fiscal period focus | Q1 | |
Entity registrant name | O REILLY AUTOMOTIVE INC | |
Trading symbol | ORLY | |
Entity central index key | 0000898173 | |
Entity filer category | Large Accelerated Filer | |
Entity small business | false | |
Entity emerging growth company | false | |
Entity common stock, shares outstanding | 78,276,726 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | [1] |
Assets | |||
Cash and cash equivalents | $ 56,717 | $ 31,315 | |
Accounts receivable, net | 250,680 | 192,026 | |
Amounts receivable from suppliers | 66,452 | 78,155 | |
Inventory | 3,228,901 | 3,193,344 | |
Other current assets | 46,896 | 48,262 | |
Total current assets | 3,649,646 | 3,543,102 | |
Property and equipment, at cost | 5,761,729 | 5,645,552 | |
Less: accumulated depreciation and amortization | 2,085,019 | 2,058,550 | |
Net property and equipment | 3,676,710 | 3,587,002 | |
Operating lease, right-of-use assets | 1,886,364 | 0 | |
Goodwill | 808,717 | 807,260 | |
Other assets, net | 40,125 | 43,425 | |
Total assets | 10,061,562 | 7,980,789 | |
Liabilities and shareholders' equity | |||
Accounts payable | 3,438,679 | 3,376,403 | |
Self-insurance reserves | 77,359 | 77,012 | |
Accrued payroll | 94,192 | 86,520 | |
Accrued benefits and withholdings | 65,106 | 89,082 | |
Income taxes payable | 92,816 | 11,013 | |
Current portion of operating lease liabilities | 296,605 | 0 | |
Other current liabilities | 261,575 | 253,990 | |
Total current liabilities | 4,326,332 | 3,894,020 | |
Long-term debt | 3,460,921 | 3,417,122 | |
Operating lease liabilities, less current portion | 1,629,311 | 0 | |
Deferred income taxes | 109,480 | 105,566 | |
Other liabilities | 163,153 | 210,414 | |
Shareholders' equity: | |||
Common stock, $0.01 par value: Authorized shares - 245,000,000; Issued and outstanding shares - 78,262,099 as of March 31, 2019, and 79,043,919 as of December 31, 2018 | 783 | 790 | |
Additional paid-in capital | 1,268,032 | 1,262,063 | |
Retained deficit | (896,450) | (909,186) | |
Total shareholders' equity | 372,365 | 353,667 | |
Total liabilities and shareholders' equity | $ 10,061,562 | $ 7,980,789 | |
[1] | The balance sheet at December 31, 2018 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 245,000,000 | 245,000,000 |
Common stock, shares issued | 78,262,099 | 79,043,919 |
Common stock, shares, outstanding | 78,262,099 | 79,043,919 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Sales | $ 2,410,608 | $ 2,282,681 |
Cost of goods sold, including warehouse and distribution expenses | 1,131,318 | 1,081,423 |
Gross profit | 1,279,290 | 1,201,258 |
Selling, general and administrative expenses | 834,504 | 778,412 |
Operating income | 444,786 | 422,846 |
Other income (expense): | ||
Interest expense | (34,291) | (28,217) |
Interest income | 554 | 572 |
Other, net | 3,103 | 205 |
Total other expense | (30,634) | (27,440) |
Income before income taxes | 414,152 | 395,406 |
Provision for income taxes | 93,000 | 90,500 |
Net income | $ 321,152 | $ 304,906 |
Earnings per share-basic: | ||
Earnings per share - basic | $ 4.09 | $ 3.65 |
Weighted-average common shares outstanding - basic | 78,484 | 83,530 |
Earnings per share-assuming dilution: | ||
Earnings per share - assuming dilution | $ 4.05 | $ 3.61 |
Weighted-average common shares outstanding - assuming dilution | 79,297 | 84,523 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings (deficit) [Member] | |
Balance at Dec. 31, 2017 | $ 653,046 | $ 843 | $ 1,265,043 | $ (612,840) | |
Balance (in shares) at Dec. 31, 2017 | 84,302,000 | ||||
Net income | 304,906 | 304,906 | |||
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes | 3,633 | 3,633 | |||
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares | 17,000 | ||||
Net issuance of common stock upon exercise of stock options | 6,858 | $ 2 | 6,856 | ||
Net issuance of common stock upon exercise of stock options, shares | 137,000 | ||||
Share-based compensation | 4,835 | 4,835 | |||
Share repurchases, including fees | $ (549,450) | $ (22) | (33,001) | (516,427) | |
Share repurchases, shares | (2,188,000) | (2,188,000) | |||
Balance at Mar. 31, 2018 | $ 423,828 | $ 823 | 1,247,366 | (824,361) | |
Balance (in shares) at Mar. 31, 2018 | 82,268,000 | ||||
Cumulative effect adjustment from adoption of ASU 2016-02 | Adoption of ASU 2016-02 [Member] | (1,410) | (1,410) | |||
Balance at Dec. 31, 2018 | $ 353,667 | [1] | $ 790 | 1,262,063 | (909,186) |
Balance (in shares) at Dec. 31, 2018 | 79,043,919 | 79,044,000 | |||
Net income | $ 321,152 | 321,152 | |||
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes | 3,772 | 3,772 | |||
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares | 12,000 | ||||
Net issuance of common stock upon exercise of stock options | 11,955 | $ 2 | 11,953 | ||
Net issuance of common stock upon exercise of stock options, shares | 133,000 | ||||
Share-based compensation | 5,085 | 5,085 | |||
Share repurchases, including fees | $ (321,856) | $ (9) | (14,841) | (307,006) | |
Share repurchases, shares | (927,000) | (927,000) | |||
Balance at Mar. 31, 2019 | $ 372,365 | $ 783 | $ 1,268,032 | $ (896,450) | |
Balance (in shares) at Mar. 31, 2019 | 78,262,099 | 78,262,000 | |||
[1] | The balance sheet at December 31, 2018 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Operating activities: | |||
Net income | $ 321,152 | $ 304,906 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property, equipment and intangibles | 63,964 | 69,920 | |
Amortization of debt discount and issuance costs | 918 | 795 | |
Deferred income taxes | 4,312 | 4,370 | |
Share-based compensation programs | 5,424 | 5,176 | |
Other | 2,245 | 2,244 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (60,914) | (10,421) | |
Inventory | (35,405) | (42,643) | |
Accounts payable | 60,918 | 32,756 | |
Income taxes payable | 82,476 | 79,380 | |
Other | (4,468) | (14,206) | |
Net cash provided by operating activities | 440,622 | 432,277 | |
Investing activities: | |||
Purchases of property and equipment | (152,914) | (114,843) | |
Proceeds from sale of property and equipment | 1,811 | 752 | |
Other | (295) | (375) | |
Net cash used in investing activities | (151,398) | (114,466) | |
Financing activities: | |||
Proceeds from borrowings on revolving credit facility | 874,000 | 755,000 | |
Payments on revolving credit facility | (831,000) | (541,000) | |
Repurchases of common stock | (321,856) | (549,450) | |
Net proceeds from issuance of common stock | 15,224 | 11,972 | |
Other | (190) | (2,156) | |
Net cash used in financing activities | (263,822) | (325,634) | |
Net increase (decrease) in cash and cash equivalents | 25,402 | (7,823) | |
Cash and cash equivalents at beginning of the period | 31,315 | [1] | 46,348 |
Cash and cash equivalents at end of the period | 56,717 | 38,525 | |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 5,335 | 7,939 | |
Interest paid, net of capitalized interest | $ 47,796 | $ 48,763 | |
[1] | The balance sheet at December 31, 2018 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of O’Reilly Automotive, Inc. and its subsidiaries (the “Company” or “O’Reilly”) have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2019 , are not necessarily indicative of the results that may be expected for the year ended December 31, 2019 . For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Fair value measurements | NOTE 2 – FAIR VALUE MEASUREMENTS The Company uses the fair value hierarchy, which prioritizes the inputs used to measure the fair value of certain of its financial instruments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company uses the income and market approaches to determine the fair value of its assets and liabilities. The three levels of the fair value hierarchy are set forth below: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. • Level 2 – Inputs other than quoted prices in active markets included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – Unobservable inputs for the asset or liability. Financial assets and liabilities measured at fair value on a recurring basis: The Company invests in various marketable securities with the intention of selling these securities to fulfill its future unsecured obligation under the Company’s nonqualified deferred compensation plan. See Note 8 for further information concerning the Company’s benefit plans. The Company’s marketable securities were accounted for as trading securities and the carrying amount of its marketable securities were included in “Other assets, net” on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2019 , and December 31, 2018 . The Company recorded an increase in fair value related to its marketable securities in the amount of $2.8 million for the three months ended March 31, 2019 and a decrease in fair value related to its marketable securities in the amount of $0.1 million for the three months ended March 31, 2018 , which were included in “Other income (expense)” on the accompanying Condensed Consolidated Statements of Income. The tables below identify the estimated fair value of the Company’s marketable securities, determined by reference to quoted market prices (Level 1), as of March 31, 2019 , and December 31, 2018 (in thousands): March 31, 2019 Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Marketable securities $ 28,149 $ — $ — $ 28,149 December 31, 2018 Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Marketable securities $ 25,493 $ — $ — $ 25,493 Non-financial assets and liabilities measured at fair value on a nonrecurring basis: Certain long-lived non-financial assets and liabilities may be required to be measured at fair value on a nonrecurring basis in certain circumstances, including when there is evidence of impairment. These non-financial assets and liabilities may include assets acquired in a business combination or property and equipment that are determined to be impaired. As of March 31, 2019 , and December 31, 2018 , the Company did not have any non-financial assets or liabilities that had been measured at fair value subsequent to initial recognition. Fair value of financial instruments: The carrying amounts of the Company’s senior notes and unsecured revolving credit facility borrowings are included in “Long-term debt” on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2019 , and December 31, 2018 . See Note 4 for further information concerning the Company’s senior notes and unsecured revolving credit facility. The table below identifies the estimated fair value of the Company’s senior notes, using the market approach. The fair value as of March 31, 2019 , and December 31, 2018 , was determined by reference to quoted market prices of the same or similar instruments (Level 2) (in thousands): March 31, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior Notes $ 3,130,921 $ 3,209,279 $ 3,130,122 $ 3,116,046 The carrying amount of the Company’s unsecured revolving credit facility approximates fair value (Level 2), as borrowings under the facility bear variable interest at current market rates. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 3 – LEASES Operating lease commitments: The Company leases certain office space, retail stores, distribution centers and equipment under long-term, non-cancelable operating leases. Lease components are not accounted for separately from nonlease components. Leases generally include renewal options and some include options to purchase, provisions for percentage rent based on sales and/or incremental step increase provisions. The exercise of renewal options is typically at the Company’s sole discretion and all operating lease expense is recognized on a straight-line basis over the lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company rents or subleases certain surplus real estate to third parties. Right-of-use assets and corresponding operating lease liabilities are recognized for all leases with an initial term greater than 12 months. See Note 11 for further information concerning the Company’s adoption of Accounting Standard Codification 842 - Leases. The following table summarizes Total lease cost for the three months ended March 31, 2019 , which was primarily included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income (in thousands): For the Three Months Ended March 31, 2019 Operating lease cost $ 78,814 Short-term operating lease cost 2,058 Variable operating lease cost 18,378 Sublease income (957 ) Total lease cost $ 98,293 The following table summarizes other lease related information for the three months ended March 31, 2019 : For the Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases (in thousands) $ 78,298 Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands) $ 10,940 Weighted-average remaining lease term - operating leases 10.5 years Weighted-average discount rate - operating leases 4.2 % The following table identifies the future minimum lease payments under all of the Company’s operating leases for each of the next five years, and in the aggregate thereafter, and reconciles to the present value of the “Operating lease liabilities, less current portion” included in the accompanying Condensed Consolidated Balance Sheet as of March 31, 2019 (in thousands): March 31, 2019 Related Parties Non-Related Parties Total April 1, 2019 to December 31, 2019 $ 3,561 $ 233,211 $ 236,772 2020 3,988 297,993 301,981 2021 3,521 270,127 273,648 2022 2,763 245,803 248,566 2023 2,540 215,476 218,016 Thereafter 3,544 1,172,067 1,175,611 Total operating lease payments 19,917 2,434,677 2,454,594 Less: present value discount 2,180 526,498 528,678 Total operating lease liabilities 17,737 1,908,179 1,925,916 Less: current portion of operating lease liabilities 4,598 292,007 296,605 Operation lease liabilities, less current portion $ 13,139 $ 1,616,172 $ 1,629,311 The Company leases certain land and buildings related to 74 of its O’Reilly Auto Parts stores under fifteen- or twenty-year operating lease agreements with entities that include one or more of the Company’s affiliated directors or members of an affiliated director’s immediate family. Generally, these lease agreements provide for renewal options for an additional five years at the option of the Company, and the lease agreements are periodically modified to further extend the lease term for specific stores under the agreements. Lease payments under these operating leases totaled $1.2 million for the three months ended March 31, 2019 . The Company believes that the lease agreements with the affiliated entities are on terms comparable to those obtainable from third parties. The future minimum lease payments under the Company’s operating leases, in the table above, do not include potential amounts for percentage rent and other variable operating lease related costs and have not been reduced by expected future minimum sublease income under non-cancelable subleases, which was approximately $16.3 million as of March 31, 2019 . The present value discount component of the future minimum lease payments under the Company’s operating leases, in the table above, was primarily calculated using the Company’s incremental borrowing rate based on information available at the lease commencement or modification date; for leases that commenced prior to January 1, 2019, the incremental borrowing rate used was as of January 1, 2019. When the implicit rate of a lease is available, the implicit rate is used in the calculation and not the Company’s incremental borrowing rate. |
Financing
Financing | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Financing | NOTE 4 – FINANCING The following table identifies the amounts included in “Long-term debt” on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2019 , and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Revolving Credit Facility, weighted-average variable interest rate of 3.740% $ 330,000 $ 287,000 $ 500 million, 4.875 % Senior Notes due 2021, effective interest rate of 4.952% (1) 498,573 498,371 $ 300 million, 4.625 % Senior Notes due 2021, effective interest rate of 4.644% (2) 299,315 299,244 $ 300 million, 3.800 % Senior Notes due 2022, effective interest rate of 3.845% (3) 298,666 298,574 $ 300 million, 3.850 % Senior Notes due 2023, effective interest rate of 3.851% (4) 298,881 298,821 $ 500 million, 3.550 % Senior Notes due 2026, effective interest rate of 3.570% (5) 496,354 496,240 $ 750 million, 3.600 % Senior Notes due 2027, effective interest rate of 3.619% (6) 744,020 743,868 $ 500 million, 4.350 % Senior Notes due 2028, effective interest rate of 4.383% (7) 495,112 495,004 Long-term debt $ 3,460,921 $ 3,417,122 (1) Net of unamortized discount of $0.6 million as of March 31, 2019 , and $0.7 million as of December 31, 2018 , and debt issuance costs of $0.8 million as of March 31, 2019 , and $0.9 million as of December 31, 2018 . (2) Net of unamortized discount of $0.1 million as of March 31, 2019 , and December 31, 2018 , and debt issuance costs of $0.6 million as of March 31, 2019 , and December 31, 2018 . (3) Net of unamortized discount of $0.4 million as of March 31, 2019 , and $0.5 million as of December 31, 2018 , and debt issuance costs of $0.9 million as of March 31, 2019 , and $1.0 million as of December 31, 2018 . (4) Net of unamortized discount of less than $0.1 million as of March 31, 2019 , and December 31, 2018 , and debt issuance costs of $1.1 million as of March 31, 2019 , and $1.2 million as of December 31, 2018 . (5) Net of unamortized discount of $0.6 million as of March 31, 2019 , and December 31, 2018 , and debt issuance costs of $3.0 million as of March 31, 2019 , and $3.1 million as of December 31, 2018 . (6) Net of unamortized discount of $1.0 million as of March 31, 2019 , and $1.1 million as of December 31, 2018 , and debt issuance costs of $4.9 million as of March 31, 2019 and $5.1 million as of December 31, 2018 . (7) Net of unamortized discount of $1.2 million as of March 31, 2019 , and $1.3 million as of December 31, 2018 , and debt issuance costs of $3.6 million as of March 31, 2019 , and $3.7 million as of December 31, 2018 . Unsecured revolving credit facility: On April 5, 2017 , the Company entered into a credit agreement (the “Credit Agreement”). The Credit Agreement provides for a $1.2 billion unsecured revolving credit facility (the “Revolving Credit Facility”) arranged by JPMorgan Chase Bank, N.A., which is scheduled to mature in April 2022 . The Credit Agreement includes a $200 million sub-limit for the issuance of letters of credit and a $75 million sub-limit for swing line borrowings under the Revolving Credit Facility. As described in the Credit Agreement governing the Revolving Credit Facility, the Company may, from time to time, subject to certain conditions, increase the aggregate commitments under the Revolving Credit Facility by up to $600 million , provided that the aggregate amount of the commitments does not exceed $1.8 billion at any time. As of March 31, 2019 , and December 31, 2018 , the Company had outstanding letters of credit, primarily to support obligations related to workers’ compensation, general liability and other insurance policies, in the amounts of $39.2 million and $35.1 million , respectively, reducing the aggregate availability under the Credit Agreement by those amounts. Borrowings under the Revolving Credit Facility (other than swing line loans) bear interest, at the Company’s option, at either an Alternate Base Rate or an Adjusted LIBO Rate (both as defined in the Credit Agreement) plus an applicable margin. Swing line loans made under the Revolving Credit Facility bear interest at an Alternate Base Rate plus the applicable margin for Alternate Base Rate loans. In addition, the Company pays a facility fee on the aggregate amount of the commitments under the Credit Agreement in an amount equal to a percentage of such commitments. The interest rate margins and facility fee are based upon the better of the ratings assigned to the Company’s debt by Moody’s Investor Service, Inc. and Standard & Poor’s Ratings Services, subject to limited exceptions. As of March 31, 2019 , based upon the Company’s current credit ratings, its margin for Alternate Base Rate loans was 0.000% , its margin for Eurodollar Revolving Loans was 0.900% and its facility fee was 0.100% . The Credit Agreement contains certain covenants, including limitations on subsidiary indebtedness, a minimum consolidated fixed charge coverage ratio of 2.50 :1.00 and a maximum consolidated leverage ratio of 3.50 :1.00. The consolidated fixed charge coverage ratio includes a calculation of earnings before interest, taxes, depreciation, amortization, rent and non-cash share-based compensation expense to fixed charges. Fixed charges include interest expense, capitalized interest and rent expense. The consolidated leverage ratio includes a calculation of adjusted debt to earnings before interest, taxes, depreciation, amortization, rent and non-cash share-based compensation expense. Adjusted debt includes outstanding debt, outstanding stand-by letters of credit and similar instruments, five-times rent expense and excludes any premium or discount recorded in conjunction with the issuance of long-term debt. In the event that the Company should default on any covenant (subject to customary grace periods, cure rights and materiality thresholds) contained in the Credit Agreement, certain actions may be taken, including, but not limited to, possible termination of commitments, immediate payment of outstanding principal amounts plus accrued interest and other amounts payable under the Credit Agreement and litigation from lenders. As of March 31, 2019 , the Company remained in compliance with all covenants under the Credit Agreement. Senior notes: The Company has issued a cumulative $3.2 billion aggregate principal amount of unsecured senior notes, which are due between 2021 and 2028 , with UMB Bank, N.A. as trustee. Interest on the senior notes, ranging from 3.550% to 4.875% , is payable semi-annually and is computed on the basis of a 360 -day year. None of the Company’s subsidiaries is a guarantor under the senior notes. Each of the senior notes is subject to certain customary covenants, with which the Company complied as of March 31, 2019 |
Warranties
Warranties | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranties | NOTE 5 – WARRANTIES The Company provides warranties on certain merchandise it sells with warranty periods ranging from 30 days to limited lifetime warranties. The risk of loss arising from warranty claims is typically the obligation of the Company’s suppliers. Certain suppliers provide upfront allowances to the Company in lieu of accepting the obligation for warranty claims. For this merchandise, when sold, the Company bears the risk of loss associated with the cost of warranty claims. Differences between supplier allowances received by the Company, in lieu of warranty obligations and estimated warranty expense, are recorded as an adjustment to cost of sales. Estimated warranty costs, which are recorded as obligations at the time of sale, are based on the historical failure rate of each individual product line. The Company’s historical experience has been that failure rates are relatively consistent over time and that the ultimate cost of warranty claims to the Company has been driven by volume of units sold as opposed to fluctuations in failure rates or the variation of the cost of individual claims. The Company’s product warranty liabilities are included in “Other current liabilities” on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2019 , and December 31, 2018 . The following table identifies the changes in the Company’s aggregate product warranty liabilities for the three months ended March 31, 2019 (in thousands): Warranty liabilities, balance at December 31, 2018 $ 52,220 Warranty claims (21,537 ) Warranty accruals 22,943 Warranty liabilities, balance at March 31, 2019 $ 53,626 |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Mar. 31, 2019 | |
Proceeds from (Repurchase of) Equity [Abstract] | |
Share repurchase program | NOTE 6 – SHARE REPURCHASE PROGRAM In January of 2011, the Company’s Board of Directors approved a share repurchase program. Under the program, the Company may, from time to time, repurchase shares of its common stock, solely through open market purchases effected through a broker dealer at prevailing market prices, based on a variety of factors such as price, corporate trading policy requirements and overall market conditions. The Company’s Board of Directors may increase or otherwise modify, renew, suspend or terminate the share repurchase program at any time, without prior notice. As announced on November 13, 2018 , the Company’s Board of Directors approved a resolution to increase the authorization amount under the share repurchase program by an additional $1.0 billion , resulting in a cumulative authorization amount of $11.8 billion . The additional authorization is effective for three years , beginning on its announcement date. The following table identifies shares of the Company’s common stock that have been repurchased as part of the Company’s publicly announced share repurchase program for the three months ended March 31, 2019 and 2018 (in thousands, except per share data): For the Three Months Ended 2019 2018 Shares repurchased 927 2,188 Average price per share $ 347.09 $ 251.08 Total investment $ 321,846 $ 549,428 As of March 31, 2019 , the Company had $679.6 million remaining under its share repurchase program. Subsequent to the end of the first quarter and through May 6, 2019 , the Company repurchased an additional 0.1 million shares of its common stock under its share repurchase program, at an average price of $377.59 , for a total investment of $52.1 million . The Company has repurchased a total of 73.4 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through May 6, 2019 , at an average price of $151.58 , for a total aggregate investment of $11.1 billion |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 7 – REVENUE The table below identifies the Company’s revenues disaggregated by major customer type for the three months ended March 31, 2019 and 2018 (in thousands): For the Three Months Ended 2019 2018 Sales to do-it-yourself customers $ 1,337,029 $ 1,272,414 Sales to professional service provider customers 1,038,781 975,009 Other sales and sales adjustments 34,798 35,258 Total sales $ 2,410,608 $ 2,282,681 As of March 31, 2019 , and December 31, 2018 , the Company had recorded a deferred revenue liability of $4.9 million and $4.3 million , respectively, related to its loyalty program, which were included in “Other liabilities” on the accompanying Condensed Consolidated Balance Sheets. During the three months ended March 31, 2019 and 2018 , the Company recognized $3.9 million and $3.2 million , respectively, of deferred revenue related to its loyalty program, which were included in “Sales” on the accompanying Condensed Consolidated Statements of Income. |
Share-Based Compensation and Be
Share-Based Compensation and Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation and benefit plans | NOTE 8 – SHARE-BASED COMPENSATION AND BENEFIT PLANS The Company recognizes share-based compensation expense based on the fair value of the grants, awards or shares at the time of the grant, award or issuance. Share-based compensation includes stock option awards issued under the Company’s employee incentive plans and director stock plan, restricted stock awarded under the Company’s employee incentive plans and director stock plan and stock issued through the Company’s employee stock purchase plan. Stock options: The Company’s stock-based incentive plans provide for the granting of stock options for the purchase of common stock of the Company to directors and certain key employees of the Company. Options are granted at an exercise price that is equal to the closing market price of the Company’s common stock on the date of the grant. Director options granted under the plans expire after seven years and are fully vested after six months . Employee options granted under the plans expire after ten years and typically vest 25% per year, over four years . The Company records compensation expense for the grant-date fair value of the option awards evenly over the vesting period or the minimum required service period. The table below identifies stock option activity under these plans during the three months ended March 31, 2019 (in thousands, except per share data): Shares Weighted-Average Exercise Price Outstanding at December 31, 2018 1,860 $ 178.57 Granted 136 355.99 Exercised (133 ) 89.66 Forfeited (10 ) 250.31 Outstanding at March 31, 2019 1,853 $ 197.62 Exercisable at March 31, 2019 1,215 $ 154.27 The fair value of each stock option award is estimated on the date of the grant using the Black-Scholes option pricing model. The Black-Scholes model requires the use of assumptions, including the risk free rate, expected life, expected volatility and expected dividend yield. • Risk-free interest rate – The United States Treasury rates in effect at the time the options are granted for the options’ expected life. • • Expected life – Represents the period of time that options granted are expected to be outstanding. The Company uses historical experience to estimate the expected life of options granted. • Expected volatility – Measure of the amount, by which the Company’s stock price is expected to fluctuate, based on a historical trend. • Expected dividend yield – The Company has not paid, nor does it have plans in the foreseeable future to pay, any dividends. The table below identifies the weighted-average assumptions used for grants awarded during the three months ended March 31, 2019 and 2018 : For the Three Months Ended 2019 2018 Risk free interest rate 2.50 % 2.58 % Expected life 6.2 Years 6.3 Years Expected volatility 25.0 % 23.7 % Expected dividend yield — % — % The following table summarizes activity related to stock options awarded by the Company for the three months ended March 31, 2019 and 2018 (in thousands, except per share data): For the Three Months Ended 2019 2018 Compensation expense for stock options awarded $ 4,508 $ 4,292 Income tax benefit from compensation expense related to stock options 1,112 1,078 Weighted-average grant-date fair value of options awarded $ 108.74 $ 75.42 The remaining unrecognized compensation expense related to unvested stock option awards at March 31, 2019 , was $40.9 million , and the weighted-average period of time over which this cost will be recognized is 2.9 years . Other share-based compensation plans: The Company sponsors other share-based compensation plans: an employee stock purchase plan (the “ESPP”), which permits all eligible employees to purchase shares of the Company’s common stock at 85% of the fair market value, an employee incentive plan, which provides for the award of shares of restricted stock to certain of the Company’s affiliated directors, that vest evenly over three years and are held in escrow until such vesting has occurred, and a director stock plan, which provides for the award of shares of restricted stock to the Company’s independent directors, that vest evenly over three years and are held in escrow until such vesting has occurred. The fair value of shares issued under the ESPP is based on the average of the high and low market prices of the Company’s common stock during the offering periods, and compensation expense is recognized based on the discount between the fair value and the employee purchase price for the shares sold to employees. The fair value of shares awarded under the employee incentive plan and director stock plan is based on the closing market price of the Company’s common stock on the date of the award, and compensation expense is recorded evenly over the vesting period or the minimum required service period. The table below summarizes activity related to the Company’s other share-based compensation plans for the three months ended March 31, 2019 and 2018 (in thousands): For the Three Months Ended 2019 2018 Compensation expense for shares issued under the ESPP $ 577 $ 543 Income tax benefit from compensation expense related to shares issued under the ESPP 142 136 Compensation expense for restricted shares awarded 339 341 Income tax benefit from compensation expense related to restricted awards $ 84 $ 86 Profit sharing and savings plan: The Company sponsors a contributory profit sharing and savings plan (the “401(k) Plan”) that covers substantially all employees who are at least 21 years of age and have completed one year of service. The Company makes matching contributions equal to 100% of the first 2% of each employee’s wages that are contributed and 25% of the next 4% of each employee’s wages that are contributed. An employee generally must be employed on December 31 to receive that year’s Company matching contribution, with the matching contribution funded annually at the beginning of the subsequent year following the year in which the matching contribution was earned. The Company may also make additional discretionary profit sharing contributions to the plan on an annual basis as determined by the Board of Directors. The Company did not make any discretionary contributions to the 401(k) Plan during the three months ended March 31, 2019 or 2018 . The Company expensed matching contributions under the 401(k) Plan in the amounts of $6.0 million and $5.7 million for the three months ended March 31, 2019 and 2018 , respectively, which were included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income. Nonqualified deferred compensation plan: The Company sponsors a nonqualified deferred compensation plan (the “Deferred Compensation Plan”) for highly compensated employees whose contributions to the 401(k) Plan are limited due to the application of the annual limitations under the Internal Revenue Code. The Deferred Compensation Plan provides these employees with the opportunity to defer the full 6% of matched compensation, including salary and incentive based compensation that was precluded under the Company’s 401(k) Plan, which is then matched by the Company using the same formula as the 401(k) Plan. An employee generally must be employed on December 31 to receive that year’s Company matching contribution, with the matching contribution funded annually at the beginning of the subsequent year following the year in which the matching contribution was earned. In the event of bankruptcy, the assets of this plan are available to satisfy the claims of general creditors. The Company has an unsecured obligation to pay, in the future, the value of the deferred compensation and Company match, adjusted to reflect the performance, whether positive or negative, of selected investment measurement options chosen by each participant during the deferral period. The liability for compensation deferred under the Deferred Compensation Plan was $28.1 million and $25.5 million as of March 31, 2019 , and December 31, 2018 , respectively, which was included in “Other liabilities” on the accompanying Condensed Consolidated Balance Sheets. The Company expensed matching contributions under the Deferred Compensation Plan in the amounts of $0.1 million and less than $0.1 million for the three months ended March 31, 2019 and 2018 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share | NOTE 9 – EARNINGS PER SHARE The following table illustrates the computation of basic and diluted earnings per share for the three months ended March 31, 2019 and 2018 (in thousands, except per share data): For the Three Months Ended 2019 2018 Numerator (basic and diluted): Net income $ 321,152 $ 304,906 Denominator: Weighted-average common shares outstanding – basic 78,484 83,530 Effect of stock options (1) 813 993 Weighted-average common shares outstanding – assuming dilution 79,297 84,523 Earnings per share: Earnings per share-basic $ 4.09 $ 3.65 Earnings per share-assuming dilution $ 4.05 $ 3.61 Antidilutive potential common shares not included in the calculation of diluted earnings per share: Stock options (1) 176 761 Weighted-average exercise price per share of antidilutive stock options (1) $ 347.98 $ 259.28 (1) See Note 8 for further information concerning the terms of the Company’s share-based compensation plans. For the three months ended March 31, 2019 and 2018 , the computation of diluted earnings per share did not include certain securities. These securities represent underlying stock options not included in the computation of diluted earnings per share, because the inclusion of such equity awards would have been antidilutive. Subsequent to the end of the first quarter and through May 6, 2019 , the Company repurchased an additional 0.1 million shares of its common stock under its share repurchase program, at an average price of $377.59 , for a total investment of $52.1 million |
Legal Matters
Legal Matters | 3 Months Ended |
Mar. 31, 2019 | |
Loss Contingency [Abstract] | |
Legal matters | NOTE 10 – LEGAL MATTERS |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent accounting pronouncements | NOTE 11 – RECENT ACCOUNTING PRONOUNCEMENTS In February of 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). Under ASU 2016-02, an entity is required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. In July of 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvement” (“ASU 2018-11”), to provide an additional, optional transition method for adopting ASU 2016-02, which allows for an entity to choose to apply the new lease standard at adoption date and recognize a cumulative-effective adjustment to the opening balance of retained earnings in the period of adoption, while comparative periods presented will continue to be in accordance with current U.S. GAAP Topic 840. For public companies, Topic 842 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The Company adopted this new guidance with its first quarter ending March 31, 2019, using the additional, optional transition method, the package of transitional practical expedients relating to the identification, classification and initial direct costs of leases commencing before the effective date of Topic 842, the transitional practical expedient for the treatment of existing land easements and the practical expedient to make an accounting policy election, by class of underlying asset, to not separate nonlease components from lease components; however, the Company did not elect the hindsight transitional practical expedient. The Company made an accounting policy election to not apply recognition requirements of the guidance to short-term leases. Due to the adoption of this new guidance, the Company recognized right-of-use assets and lease liabilities of $1.9 billion each on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2019. The difference between the right-of-use assets and lease liabilities on the accompanying Condensed Consolidated Balance Sheet was primarily due to the accrual for straight-line rent expense. The Company made an adjustment to opening “Retained Deficit” on the accompanying Condensed Consolidated Balance Sheet in the amount of $1.4 million , net of the deferred tax impact, related to the adoption of this new guidance. With the adoption of this new guidance, the Company’s favorable lease assets and unfavorable lease liabilities, from a previous acquisition, were eliminated through an adjustment to opening “Operating lease, right-of-use assets” on the accompanying Condensed Consolidated Balance Sheet. The adoption of this new guidance did not have a material impact on the Company’s results of operations, cash flows, liquidity or the Company’s covenant compliance under its existing credit agreement. In June of 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). Under ASU 2016-13, businesses and other organizations are required to present financial assets, measured at amortized costs basis, at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis, such as trade receivables. The measurement of expected credit loss will be based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. For public companies, ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company will adopt this guidance beginning with its first quarter ending March 31, 2020. The application of this new guidance is not expected to have a material impact on the Company’s consolidated financial condition, results of operations or cash flows. In January of 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). ASU 2017-04 eliminates the second step in the previous process for goodwill impairment testing; instead, the test is now a one-step process that calls for goodwill impairment loss to be measured as the excess of the reporting unit’s carrying amount over its fair value. For public companies, ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period, and requires prospective adoption, with early adoption after January 1, 2017. The Company early adopted this guidance beginning with its first quarter ending March 31, 2019. The application of this new guidance did not |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Fair value of financial instruments, policy | The Company uses the fair value hierarchy, which prioritizes the inputs used to measure the fair value of certain of its financial instruments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company uses the income and market approaches to determine the fair value of its assets and liabilities. The three levels of the fair value hierarchy are set forth below: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. • Level 2 – Inputs other than quoted prices in active markets included within Level 1 that are observable for the asset or liability, either directly or indirectly. • |
Leases (Policies)
Leases (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases, policy | The Company leases certain office space, retail stores, distribution centers and equipment under long-term, non-cancelable operating leases. Lease components are not accounted for separately from nonlease components. Leases generally include renewal options and some include options to purchase, provisions for percentage rent based on sales and/or incremental step increase provisions. The exercise of renewal options is typically at the Company’s sole discretion and all operating lease expense is recognized on a straight-line basis over the lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company rents or subleases certain surplus real estate to third parties. Right-of-use assets and corresponding operating lease liabilities are recognized for all leases with an initial term greater than 12 months. |
Warranties (Policies)
Warranties (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranties, policy | The Company provides warranties on certain merchandise it sells with warranty periods ranging from 30 days to limited lifetime warranties. The risk of loss arising from warranty claims is typically the obligation of the Company’s suppliers. Certain suppliers provide upfront allowances to the Company in lieu of accepting the obligation for warranty claims. For this merchandise, when sold, the Company bears the risk of loss associated with the cost of warranty claims. Differences between supplier allowances received by the Company, in lieu of warranty obligations and estimated warranty expense, are recorded as an adjustment to cost of sales. Estimated warranty costs, which are recorded as obligations at the time of sale, are based on the historical failure rate of each individual product line. The Company’s historical experience has been that failure rates are relatively consistent over time and that the ultimate cost of warranty claims to the Company has been driven by volume of units sold as opposed to fluctuations in failure rates or the variation of the cost of individual claims. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent accounting pronouncements, policy | In February of 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). Under ASU 2016-02, an entity is required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. In July of 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvement” (“ASU 2018-11”), to provide an additional, optional transition method for adopting ASU 2016-02, which allows for an entity to choose to apply the new lease standard at adoption date and recognize a cumulative-effective adjustment to the opening balance of retained earnings in the period of adoption, while comparative periods presented will continue to be in accordance with current U.S. GAAP Topic 840. For public companies, Topic 842 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The Company adopted this new guidance with its first quarter ending March 31, 2019, using the additional, optional transition method, the package of transitional practical expedients relating to the identification, classification and initial direct costs of leases commencing before the effective date of Topic 842, the transitional practical expedient for the treatment of existing land easements and the practical expedient to make an accounting policy election, by class of underlying asset, to not separate nonlease components from lease components; however, the Company did not elect the hindsight transitional practical expedient. The Company made an accounting policy election to not apply recognition requirements of the guidance to short-term leases. Due to the adoption of this new guidance, the Company recognized right-of-use assets and lease liabilities of $1.9 billion each on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2019. The difference between the right-of-use assets and lease liabilities on the accompanying Condensed Consolidated Balance Sheet was primarily due to the accrual for straight-line rent expense. The Company made an adjustment to opening “Retained Deficit” on the accompanying Condensed Consolidated Balance Sheet in the amount of $1.4 million , net of the deferred tax impact, related to the adoption of this new guidance. With the adoption of this new guidance, the Company’s favorable lease assets and unfavorable lease liabilities, from a previous acquisition, were eliminated through an adjustment to opening “Operating lease, right-of-use assets” on the accompanying Condensed Consolidated Balance Sheet. The adoption of this new guidance did not have a material impact on the Company’s results of operations, cash flows, liquidity or the Company’s covenant compliance under its existing credit agreement. In June of 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). Under ASU 2016-13, businesses and other organizations are required to present financial assets, measured at amortized costs basis, at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis, such as trade receivables. The measurement of expected credit loss will be based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. For public companies, ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company will adopt this guidance beginning with its first quarter ending March 31, 2020. The application of this new guidance is not expected to have a material impact on the Company’s consolidated financial condition, results of operations or cash flows. In January of 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). ASU 2017-04 eliminates the second step in the previous process for goodwill impairment testing; instead, the test is now a one-step process that calls for goodwill impairment loss to be measured as the excess of the reporting unit’s carrying amount over its fair value. For public companies, ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period, and requires prospective adoption, with early adoption after January 1, 2017. The Company early adopted this guidance beginning with its first quarter ending March 31, 2019. The application of this new guidance did not |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Valuation of marketable securities | March 31, 2019 Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Marketable securities $ 28,149 $ — $ — $ 28,149 December 31, 2018 Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Marketable securities $ 25,493 $ — $ — $ 25,493 |
Valuation of senior notes | March 31, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior Notes $ 3,130,921 $ 3,209,279 $ 3,130,122 $ 3,116,046 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of total lease cost | For the Three Months Ended March 31, 2019 Operating lease cost $ 78,814 Short-term operating lease cost 2,058 Variable operating lease cost 18,378 Sublease income (957 ) Total lease cost $ 98,293 |
Other lease related information | For the Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases (in thousands) $ 78,298 Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands) $ 10,940 Weighted-average remaining lease term - operating leases 10.5 years Weighted-average discount rate - operating leases 4.2 % |
Future minimum lease payments for operating leases | March 31, 2019 Related Parties Non-Related Parties Total April 1, 2019 to December 31, 2019 $ 3,561 $ 233,211 $ 236,772 2020 3,988 297,993 301,981 2021 3,521 270,127 273,648 2022 2,763 245,803 248,566 2023 2,540 215,476 218,016 Thereafter 3,544 1,172,067 1,175,611 Total operating lease payments 19,917 2,434,677 2,454,594 Less: present value discount 2,180 526,498 528,678 Total operating lease liabilities 17,737 1,908,179 1,925,916 Less: current portion of operating lease liabilities 4,598 292,007 296,605 Operation lease liabilities, less current portion $ 13,139 $ 1,616,172 $ 1,629,311 |
Financing (Tables)
Financing (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Outstanding financing facilities | March 31, 2019 December 31, 2018 Revolving Credit Facility, weighted-average variable interest rate of 3.740% $ 330,000 $ 287,000 $ 500 million, 4.875 % Senior Notes due 2021, effective interest rate of 4.952% (1) 498,573 498,371 $ 300 million, 4.625 % Senior Notes due 2021, effective interest rate of 4.644% (2) 299,315 299,244 $ 300 million, 3.800 % Senior Notes due 2022, effective interest rate of 3.845% (3) 298,666 298,574 $ 300 million, 3.850 % Senior Notes due 2023, effective interest rate of 3.851% (4) 298,881 298,821 $ 500 million, 3.550 % Senior Notes due 2026, effective interest rate of 3.570% (5) 496,354 496,240 $ 750 million, 3.600 % Senior Notes due 2027, effective interest rate of 3.619% (6) 744,020 743,868 $ 500 million, 4.350 % Senior Notes due 2028, effective interest rate of 4.383% (7) 495,112 495,004 Long-term debt $ 3,460,921 $ 3,417,122 (1) Net of unamortized discount of $0.6 million as of March 31, 2019 , and $0.7 million as of December 31, 2018 , and debt issuance costs of $0.8 million as of March 31, 2019 , and $0.9 million as of December 31, 2018 . (2) Net of unamortized discount of $0.1 million as of March 31, 2019 , and December 31, 2018 , and debt issuance costs of $0.6 million as of March 31, 2019 , and December 31, 2018 . (3) Net of unamortized discount of $0.4 million as of March 31, 2019 , and $0.5 million as of December 31, 2018 , and debt issuance costs of $0.9 million as of March 31, 2019 , and $1.0 million as of December 31, 2018 . (4) Net of unamortized discount of less than $0.1 million as of March 31, 2019 , and December 31, 2018 , and debt issuance costs of $1.1 million as of March 31, 2019 , and $1.2 million as of December 31, 2018 . (5) Net of unamortized discount of $0.6 million as of March 31, 2019 , and December 31, 2018 , and debt issuance costs of $3.0 million as of March 31, 2019 , and $3.1 million as of December 31, 2018 . (6) Net of unamortized discount of $1.0 million as of March 31, 2019 , and $1.1 million as of December 31, 2018 , and debt issuance costs of $4.9 million as of March 31, 2019 and $5.1 million as of December 31, 2018 . (7) Net of unamortized discount of $1.2 million as of March 31, 2019 , and $1.3 million as of December 31, 2018 , and debt issuance costs of $3.6 million as of March 31, 2019 , and $3.7 million as of December 31, 2018 |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Product warranty liabilities | Warranty liabilities, balance at December 31, 2018 $ 52,220 Warranty claims (21,537 ) Warranty accruals 22,943 Warranty liabilities, balance at March 31, 2019 $ 53,626 |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Proceeds from (Repurchase of) Equity [Abstract] | |
Schedule of shares repurchased | For the Three Months Ended 2019 2018 Shares repurchased 927 2,188 Average price per share $ 347.09 $ 251.08 Total investment $ 321,846 $ 549,428 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | For the Three Months Ended 2019 2018 Sales to do-it-yourself customers $ 1,337,029 $ 1,272,414 Sales to professional service provider customers 1,038,781 975,009 Other sales and sales adjustments 34,798 35,258 Total sales $ 2,410,608 $ 2,282,681 |
Share-Based Compensation and _2
Share-Based Compensation and Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restricted stock [Member] | |
Share-Based Compensation and Benefit Plans | |
Summary of activity of share-based compensation | For the Three Months Ended 2019 2018 Compensation expense for shares issued under the ESPP $ 577 $ 543 Income tax benefit from compensation expense related to shares issued under the ESPP 142 136 Compensation expense for restricted shares awarded 339 341 Income tax benefit from compensation expense related to restricted awards $ 84 $ 86 |
Stock option [Member] | |
Share-Based Compensation and Benefit Plans | |
Summary of stock options | Shares Weighted-Average Exercise Price Outstanding at December 31, 2018 1,860 $ 178.57 Granted 136 355.99 Exercised (133 ) 89.66 Forfeited (10 ) 250.31 Outstanding at March 31, 2019 1,853 $ 197.62 Exercisable at March 31, 2019 1,215 $ 154.27 |
Black-Scholes option pricing model | For the Three Months Ended 2019 2018 Risk free interest rate 2.50 % 2.58 % Expected life 6.2 Years 6.3 Years Expected volatility 25.0 % 23.7 % Expected dividend yield — % — % |
Summary of activity of share-based compensation | For the Three Months Ended 2019 2018 Compensation expense for stock options awarded $ 4,508 $ 4,292 Income tax benefit from compensation expense related to stock options 1,112 1,078 Weighted-average grant-date fair value of options awarded $ 108.74 $ 75.42 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | For the Three Months Ended 2019 2018 Numerator (basic and diluted): Net income $ 321,152 $ 304,906 Denominator: Weighted-average common shares outstanding – basic 78,484 83,530 Effect of stock options (1) 813 993 Weighted-average common shares outstanding – assuming dilution 79,297 84,523 Earnings per share: Earnings per share-basic $ 4.09 $ 3.65 Earnings per share-assuming dilution $ 4.05 $ 3.61 Antidilutive potential common shares not included in the calculation of diluted earnings per share: Stock options (1) 176 761 Weighted-average exercise price per share of antidilutive stock options (1) $ 347.98 $ 259.28 (1) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |||
Increase (decrease) in fair value of marketable securities | $ 2.8 | $ (0.1) | |
Non-financial assets and liabilities measured at fair value on a nonrecurring basis | $ 0 | $ 0 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Marketable Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurements | ||
Estimated fair value of marketable securities | $ 28,149 | $ 25,493 |
Fair value, inputs, Level 1 [Member] | ||
Fair Value Measurements | ||
Estimated fair value of marketable securities | 28,149 | 25,493 |
Fair value, inputs, Level 2 [Member] | ||
Fair Value Measurements | ||
Estimated fair value of marketable securities | 0 | 0 |
Fair value, inputs, Level 3 [Member] | ||
Fair Value Measurements | ||
Estimated fair value of marketable securities | $ 0 | $ 0 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value of Senior Notes) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurements | ||
Carrying amount of senior notes | $ 3,130,921 | $ 3,130,122 |
Fair value, inputs, Level 2 [Member] | ||
Fair Value Measurements | ||
Estimated fair value of senior notes | $ 3,209,279 | $ 3,116,046 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)stores | |
Leases | |
Future minimum sublease income under non-cancelable subleases | $ 16.3 |
Related parties [Member] | |
Related Parties | |
Number of stores | stores | 74 |
Lease payments under related party operating leases | $ 1.2 |
Leases (Total Lease Cost) (Deta
Leases (Total Lease Cost) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 78,814 |
Short-term operating lease cost | 2,058 |
Variable operating lease cost | 18,378 |
Sublease income | (957) |
Total lease cost | $ 98,293 |
Leases (Other Lease Related Inf
Leases (Other Lease Related Information) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)Rate | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities, operating cash flows from operating leases | $ 78,298 |
Right-of-use asset obtained in exchange for new operating lease liability | $ 10,940 |
Weighted-average remaining lease term - operating leases | 10 years 6 months |
Weighted-average discount rate - operating leases | Rate | 4.20% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments for Operating Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | [1] |
Leases | |||
April 1, 2019, to December 31, 2019 | $ 236,772 | ||
2020 | 301,981 | ||
2021 | 273,648 | ||
2022 | 248,566 | ||
2023 | 218,016 | ||
Thereafter | 1,175,611 | ||
Total operating lease payments | 2,454,594 | ||
Less: present value discount | 528,678 | ||
Total operating lease liabilities | 1,925,916 | ||
Less: current portion of operating lease liabilities | 296,605 | $ 0 | |
Operating lease liabilities, less current portion | 1,629,311 | $ 0 | |
Related parties [Member] | |||
Leases | |||
April 1, 2019, to December 31, 2019 | 3,561 | ||
2020 | 3,988 | ||
2021 | 3,521 | ||
2022 | 2,763 | ||
2023 | 2,540 | ||
Thereafter | 3,544 | ||
Total operating lease payments | 19,917 | ||
Less: present value discount | 2,180 | ||
Total operating lease liabilities | 17,737 | ||
Less: current portion of operating lease liabilities | 4,598 | ||
Operating lease liabilities, less current portion | 13,139 | ||
Non-related parties [Member] | |||
Leases | |||
April 1, 2019, to December 31, 2019 | 233,211 | ||
2020 | 297,993 | ||
2021 | 270,127 | ||
2022 | 245,803 | ||
2023 | 215,476 | ||
Thereafter | 1,172,067 | ||
Total operating lease payments | 2,434,677 | ||
Less: present value discount | 526,498 | ||
Total operating lease liabilities | 1,908,179 | ||
Less: current portion of operating lease liabilities | 292,007 | ||
Operating lease liabilities, less current portion | $ 1,616,172 | ||
[1] | The balance sheet at December 31, 2018 |
Financing (Unsecured Revolving
Financing (Unsecured Revolving Credit Facility) (Narrative) (Details) - Line of credit facility [Member] - Unsecured debt [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Unsecured Revolving Credit Facility | ||
Credit agreement inception date | Apr. 5, 2017 | |
Current maximum borrowing capacity under credit facility | $ 1,200 | |
Maximum aggregate increase to credit facility allowable | 600 | |
Maximum aggregate capacity of credit facility allowable | 1,800 | |
Letters of credit | $ 39.2 | $ 35.1 |
Line of credit facility fee percentage | 0.10% | |
Spread over Alternate Base rate [Member] | ||
Unsecured Revolving Credit Facility | ||
Line of credit current interest rate | 0.00% | |
Spread over Eurodollar Revolving rate [Member] | ||
Unsecured Revolving Credit Facility | ||
Line of credit current interest rate | 0.90% | |
Through maturity [Member] | ||
Unsecured Revolving Credit Facility | ||
Minimum debt instrument consolidated fixed charge coverage ratio covenant | 250.00% | |
Maximum debt instrument consolidated leverage ratio covenant | 350.00% | |
Letter of credit [Member] | ||
Unsecured Revolving Credit Facility | ||
Line of credit facility sublimit | $ 200 | |
Swing line revolver [Member] | ||
Unsecured Revolving Credit Facility | ||
Line of credit facility sublimit | $ 75 |
Financing (Senior Notes) (Narra
Financing (Senior Notes) (Narrative) (Details) - Senior notes [Member] $ in Billions | 3 Months Ended |
Mar. 31, 2019USD ($)dRate | |
Financing | |
Aggregate principle of unsecured senior notes | $ | $ 3.2 |
Number of days in annual interest calculation period | d | 360 |
Minimum [Member] | |
Financing | |
Interest rate of senior notes | 3.55% |
Maximum [Member] | |
Financing | |
Interest rate of senior notes | 4.875% |
Financing (Outstanding Financin
Financing (Outstanding Financing Facilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Financing | |||
Senior notes | $ 3,130,921 | $ 3,130,122 | |
Long-term debt | 3,460,921 | 3,417,122 | [1] |
$500 million, 4.875% Senior Notes due 2021 [Member] | |||
Financing | |||
Senior notes | 498,573 | 498,371 | |
Senior notes, face amount | $ 500,000 | $ 500,000 | |
Interest rate of senior notes | 4.875% | 4.875% | |
Senior notes, effective interest rate | 4.952% | ||
Senior notes, unamortized discount | $ 600 | $ 700 | |
Senior notes, unamortized debt issuance costs | 800 | 900 | |
$300 million, 4.625% Senior Notes due 2021 [Member] | |||
Financing | |||
Senior notes | 299,315 | 299,244 | |
Senior notes, face amount | $ 300,000 | $ 300,000 | |
Interest rate of senior notes | 4.625% | 4.625% | |
Senior notes, effective interest rate | 4.644% | ||
Senior notes, unamortized discount | $ 100 | $ 100 | |
Senior notes, unamortized debt issuance costs | 600 | 600 | |
$300 million, 3.800% Senior Notes due 2022 [Member] | |||
Financing | |||
Senior notes | 298,666 | 298,574 | |
Senior notes, face amount | $ 300,000 | $ 300,000 | |
Interest rate of senior notes | 3.80% | 3.80% | |
Senior notes, effective interest rate | 3.845% | ||
Senior notes, unamortized discount | $ 400 | $ 500 | |
Senior notes, unamortized debt issuance costs | 900 | 1,000 | |
$300 million, 3.850% Senior Notes due 2023 [Member] | |||
Financing | |||
Senior notes | 298,881 | 298,821 | |
Senior notes, face amount | $ 300,000 | $ 300,000 | |
Interest rate of senior notes | 3.85% | 3.85% | |
Senior notes, effective interest rate | 3.851% | ||
Senior notes, unamortized discount | $ 100 | $ 100 | |
Senior notes, unamortized debt issuance costs | 1,100 | 1,200 | |
$500 million, 3.550% Senior Notes due 2026 [Member] | |||
Financing | |||
Senior notes | 496,354 | 496,240 | |
Senior notes, face amount | $ 500,000 | $ 500,000 | |
Interest rate of senior notes | 3.55% | 3.55% | |
Senior notes, effective interest rate | 3.57% | ||
Senior notes, unamortized discount | $ 600 | $ 600 | |
Senior notes, unamortized debt issuance costs | 3,000 | 3,100 | |
$750 million, 3.600% Senior Notes due 2027 [Member] | |||
Financing | |||
Senior notes | 744,020 | 743,868 | |
Senior notes, face amount | $ 750,000 | $ 750,000 | |
Interest rate of senior notes | 3.60% | 3.60% | |
Senior notes, effective interest rate | 3.619% | ||
Senior notes, unamortized discount | $ 1,000 | $ 1,100 | |
Senior notes, unamortized debt issuance costs | 4,900 | 5,100 | |
$500 million, 4.350% Senior Notes due 2028 [Member] | |||
Financing | |||
Senior notes | 495,112 | 495,004 | |
Senior notes, face amount | $ 500,000 | $ 500,000 | |
Interest rate of senior notes | 4.35% | 4.35% | |
Senior notes, effective interest rate | 4.383% | ||
Senior notes, unamortized discount | $ 1,200 | $ 1,300 | |
Senior notes, unamortized debt issuance costs | 3,600 | 3,700 | |
Revolving Credit Facility [Member] | |||
Financing | |||
Unsecured revolving credit facility | $ 330,000 | $ 287,000 | |
Unsecured revolving credit facility, weighted-average variable interest rate | 3.74% | ||
[1] | The balance sheet at December 31, 2018 |
Warranties (Product Warranty Li
Warranties (Product Warranty Liabilities) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Product Warranties Disclosures [Abstract] | |
Warranty liabilities, balance at December 31, 2018 | $ 52,220 |
Warranty claims | (21,537) |
Warranty accruals | 22,943 |
Warranty liabilities, balance at March 31, 2019 | $ 53,626 |
Share Repurchase Program (Narra
Share Repurchase Program (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Nov. 13, 2018 | May 06, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | May 06, 2019 |
Share Repurchase Program | |||||
Increase in authorized amount | $ 1,000,000 | ||||
Cumulative authorized amount | $ 11,800,000 | ||||
Authorization effective period | 3 years | ||||
Remaining balance under share repurchase program | $ 679,600 | ||||
Common stock repurchased, shares | 927 | 2,188 | |||
Common stock repurchased, average price per share | $ 347.09 | $ 251.08 | |||
Common stock repurchased, value | $ 321,846 | $ 549,428 | |||
Subsequent event [Member] | |||||
Share Repurchase Program | |||||
Common stock repurchased, shares | 100 | 73,400 | |||
Common stock repurchased, average price per share | $ 377.59 | $ 151.58 | |||
Common stock repurchased, value | $ 52,100 | $ 11,100,000 |
Share Repurchase Program (Sched
Share Repurchase Program (Schedule Of Shares Repurchased) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Proceeds from (Repurchase of) Equity [Abstract] | ||
Shares repurchased | 927 | 2,188 |
Average price per share | $ 347.09 | $ 251.08 |
Total investment | $ 321,846 | $ 549,428 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - Loyalty program [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenue | |||
Deferred revenue | $ 4.9 | $ 4.3 | |
Deferred revenue, recognized | $ 3.9 | $ 3.2 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue | ||
Disaggregated sales | $ 2,410,608 | $ 2,282,681 |
DIY customer [Member] | ||
Disaggregation of Revenue | ||
Disaggregated sales | 1,337,029 | 1,272,414 |
Professional service provider customer [Member] | ||
Disaggregation of Revenue | ||
Disaggregated sales | 1,038,781 | 975,009 |
Other customers and sales adjustments [Member] | ||
Disaggregation of Revenue | ||
Disaggregated sales | $ 34,798 | $ 35,258 |
Share-Based Compensation and _3
Share-Based Compensation and Benefit Plans (Stock Options) (Narrative) (Details) - Stock option [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)Rate | |
Share-Based Compensation and Benefit Plans | |
Remaining unrecognized compensation expense | $ | $ 40.9 |
Weighted-average period for cost recognition | 2 years 10 months 24 days |
Employee stock option [Member] | |
Share-Based Compensation and Benefit Plans | |
Options expiration period | 10 years |
Vesting period | 4 years |
Option vesting rate per year | Rate | 25.00% |
Director [Member] | |
Share-Based Compensation and Benefit Plans | |
Options expiration period | 7 years |
Vesting period | 6 months |
Share-Based Compensation and _4
Share-Based Compensation and Benefit Plans (Other Share-Based Compensation) (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019Rate | |
Restricted stock [Member] | Employee [Member] | |
Share-Based Compensation and Benefit Plans | |
Vesting period | 3 years |
Restricted stock [Member] | Director [Member] | |
Share-Based Compensation and Benefit Plans | |
Vesting period | 3 years |
Employee stock purchase plan [Member] | |
Share-Based Compensation and Benefit Plans | |
Employee stock purchase plan, stock purchase percentage | 85.00% |
Share-Based Compensation and _5
Share-Based Compensation and Benefit Plans (Profit Sharing and Savings Plan) (Narrative) (Details) - Profit sharing and savings plan [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-Based Compensation and Benefit Plans | ||
Profit sharing and savings plan, employer discretionary contribution | $ 0 | $ 0 |
Profit sharing and savings plan, cost recognized | $ 6 | $ 5.7 |
Employee's first 2% of contributed wages [Member] | ||
Share-Based Compensation and Benefit Plans | ||
Profit sharing and savings plan, Company match | 100.00% | |
Employee's next 4% of contributed wages [Member] | ||
Share-Based Compensation and Benefit Plans | ||
Profit sharing and savings plan, Company match | 25.00% |
Share-Based Compensation and _6
Share-Based Compensation and Benefit Plans (Nonqualified Deferred Compensation Plan) (Narrative) (Details) - Nonqualified deferred compensation plan [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share-Based Compensation and Benefit Plans | |||
Deferred compensation plan, obligation | $ 28.1 | $ 25.5 | |
Deferred compensation plan, cost recognized | $ 0.1 | $ 0.1 |
Share-Based Compensation and _7
Share-Based Compensation and Benefit Plans (Summary Of Stock Options) (Details) - Stock option [Member] shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-Based Compensation and Benefit Plans | |
Outstanding at December 31, 2018, shares | shares | 1,860 |
Outstanding at December 31, 2018, weighted-average exercise price | $ / shares | $ 178.57 |
Granted, shares | shares | 136 |
Granted, weighted-average exercise price | $ / shares | $ 355.99 |
Exercised, shares | shares | (133) |
Exercised, weighted-average exercise price | $ / shares | $ 89.66 |
Forfeited, shares | shares | (10) |
Forfeited, weighted-average exercise price | $ / shares | $ 250.31 |
Outstanding at March 31, 2019, shares | shares | 1,853 |
Outstanding at March 31, 2019, weighted-average exercise price | $ / shares | $ 197.62 |
Exercisable at March 31, 2019, shares | shares | 1,215 |
Exercisable at March 31, 2019, weighted-average exercise price | $ / shares | $ 154.27 |
Share-Based Compensation and _8
Share-Based Compensation and Benefit Plans (Black-Scholes Option Pricing Model) (Details) - Stock option [Member] | 3 Months Ended | |
Mar. 31, 2019Rate | Mar. 31, 2018Rate | |
Share-Based Compensation and Benefit Plans | ||
Risk-free interest rate | 2.50% | 2.58% |
Expected life | 6 years 2 months 12 days | 6 years 3 months 18 days |
Expected volatility | 25.00% | 23.70% |
Expected dividend yield | 0.00% | 0.00% |
Share-Based Compensation and _9
Share-Based Compensation and Benefit Plans (Stock Option Activity) (Details) - Stock option [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-Based Compensation and Benefit Plans | ||
Compensation expense for share-based compensation | $ 4,508 | $ 4,292 |
Income tax benefit from compensation expense for share-based compensation | $ 1,112 | $ 1,078 |
Weighted-average grant-date fair value of options awarded | $ 108.74 | $ 75.42 |
Share-Based Compensation and_10
Share-Based Compensation and Benefit Plans (Other Share-Based Compensation Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee stock purchase plan [Member] | ||
Share-Based Compensation and Benefit Plans | ||
Compensation expense for share-based compensation | $ 577 | $ 543 |
Income tax benefit from compensation expense for share-based compensation | 142 | 136 |
Restricted stock [Member] | ||
Share-Based Compensation and Benefit Plans | ||
Compensation expense for share-based compensation | 339 | 341 |
Income tax benefit from compensation expense for share-based compensation | $ 84 | $ 86 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 100 Months Ended | |
May 06, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | May 06, 2019 | |
Earnings Per Share | ||||
Common stock repurchased, shares | 927 | 2,188 | ||
Common stock repurchased, average price per share | $ 347.09 | $ 251.08 | ||
Common stock repurchased, value | $ 321,846 | $ 549,428 | ||
Subsequent event [Member] | ||||
Earnings Per Share | ||||
Common stock repurchased, shares | 100 | 73,400 | ||
Common stock repurchased, average price per share | $ 377.59 | $ 151.58 | ||
Common stock repurchased, value | $ 52,100 | $ 11,100,000 |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Numerator (basic and diluted): | |||
Net income | $ 321,152 | $ 304,906 | |
Denominator: | |||
Weighted-average common shares outstanding - basic | 78,484 | 83,530 | |
Effect of stock options | [1] | 813 | 993 |
Weighted-average common shares outstanding - assuming dilution | 79,297 | 84,523 | |
Earnings per share - basic | $ 4.09 | $ 3.65 | |
Earnings per share - assuming dilution | $ 4.05 | $ 3.61 | |
Antidilutive stock options | [1] | 176 | 761 |
Weighted-average exercise price | [1] | $ 347.98 | $ 259.28 |
[1] | See Note 8 for further information concerning the terms of the Company’s share-based compensation plans. |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | [1] |
Recent Accounting Pronouncements | |||
Operating lease, right-of-use assets | $ 1,886,364 | $ 0 | |
Operating lease, liability | 1,925,916 | ||
ASU 2016-02 [Member] | |||
Recent Accounting Pronouncements | |||
Cumulative effect adjustment to opening Retained earnings | 1,400 | ||
Operating lease, right-of-use assets | 1,900,000 | ||
Operating lease, liability | $ 1,900,000 | ||
[1] | The balance sheet at December 31, 2018 |