O'Reilly Automotive (ORLY) 10-K26 Feb 212020 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2020	Feb. 22, 2021	Jun. 30, 2020
Document and Entity Information
Document type	10-K
Document annual report	true
Document transition report	false
Amendment flag	false
Current fiscal year end date	--12-31
Document period end date	Dec. 31, 2020
Document fiscal year focus	2020
Document fiscal period focus	FY
Entity registrant name	O Reilly Automotive Inc
Entity central index key	0000898173
Entity incorporation, state	MO
Entity file number	000-21318
Entity tax identification number	27-4358837
Entity address, address	233 South Patterson Avenue
Entity address, city	Springfield
Entity address, postal zip code	65802
Entity address, state	MO
City area code	417
Local phone number	862-6708
Title of 12(b) security	Common Stock
Trading symbol	ORLY
Security exchange name	NASDAQ
Entity current reporting status	Yes
Entity well-known seasoned issuer	Yes
Entity voluntary filers	No
Entity filer category	Large Accelerated Filer
Entity small business	false
Entity emerging growth company	false
Entity interactive data current	Yes
ICFR auditor attestation flag	true
Entity shell company	false
Entity common stock, shares outstanding		70,206,669
Entity public float			$ 25,984,638,678

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 465,640	$ 40,406
Accounts receivable, less allowance for doubtful accounts $12,670 in 2020 and $14,417 in 2019	229,679	214,915
Amounts receivable from suppliers	100,615	79,492
Inventory	3,653,195	3,454,092
Other current assets	50,658	44,757
Total current assets	4,499,787	3,833,662
Property and equipment, at cost	6,559,911	6,191,427
Less: accumulated depreciation and amortization	2,464,993	2,243,224
Net property and equipment	4,094,918	3,948,203
Operating lease, right-of-use assets	1,995,127	1,928,369
Goodwill	881,030	936,814
Other assets, net	125,780	70,112
Total assets	11,596,642	10,717,160
Liabilities and shareholders' equity
Accounts payable	4,184,662	3,604,722
Self-insurance reserves	109,199	79,079
Accrued payroll	88,875	100,816
Accrued benefits and withholdings	242,724	98,539
Income taxes payable	16,786	0
Current portion of operating lease liabilities	322,778	316,061
Other current liabilities	297,393	270,210
Total current liabilities	5,262,417	4,469,427
Long-term debt	4,123,217	3,890,527
Operating lease liabilities, less current portion	1,718,691	1,655,297
Deferred income taxes	155,899	133,280
Other liabilities	196,160	171,289
Shareholders' equity:
Preferred stock, $0.01 par value: Authorized shares - 5,000,000; Issued and outstanding shares - none	0	0
Common stock, $0.01 par value: Authorized shares - 245,000,000 Issued and outstanding shares - 71,123,109 as of December 31, 2020, and 75,618,659 as of December 31, 2019	711	756
Additional paid-in capital	1,280,841	1,280,760
Retained deficit	(1,139,139)	(889,066)
Accumulated other comprehensive (loss) income	(2,155)	4,890
Total shareholders' equity	140,258	397,340
Total liabilities and shareholders' equity	$ 11,596,642	$ 10,717,160

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts	$ 12,670	$ 14,417
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	245,000,000	245,000,000
Common stock, shares issued	71,123,109	75,618,659
Common stock, shares outstanding	71,123,109	75,618,659

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidated Statements of Income
Sales	$ 11,604,493	$ 10,149,985	$ 9,536,428
Cost of goods sold, including warehouse and distribution expenses	5,518,801	4,755,294	4,496,462
Gross profit	6,085,692	5,394,691	5,039,966
Selling, general and administrative expenses	3,666,356	3,473,965	3,224,782
Operating income	2,419,336	1,920,726	1,815,184
Other income (expense):
Interest expense	(161,126)	(139,975)	(122,129)
Interest income	2,491	2,545	2,521
Other, net	5,704	7,033	(1,489)
Total other expense	(152,931)	(130,397)	(121,097)
Income before income taxes	2,266,405	1,790,329	1,694,087
Provision for income taxes	514,103	399,287	369,600
Net income	$ 1,752,302	$ 1,391,042	$ 1,324,487
Earnings per share-basic:
Earnings per share	$ 23.74	$ 18.07	$ 16.27
Weighted-average common shares outstanding - basic	73,817	76,985	81,406
Earnings per share-assuming dilution:
Earnings per share	$ 23.53	$ 17.88	$ 16.10
Weighted-average common shares outstanding - assuming dilution	74,462	77,788	82,280

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 1,752,302	$ 1,391,042	$ 1,324,487
Other comprehensive income (loss):
Foreign currency translation adjustments	(7,045)	4,890	0
Total other comprehensive (loss) income	(7,045)	4,890	0
Comprehensive income	$ 1,745,257	$ 1,395,932	$ 1,324,487

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings (Deficit) [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]	Retained Earnings (Deficit) [Member]	Accumulated other comprehensive income (loss) [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member]	Total
Balance at beginning of period at Dec. 31, 2017	$ 843	$ 1,265,043		$ (612,840)	$ 0		$ 653,046
Balance (in shares) at Dec. 31, 2017	84,302,000
Net income				1,324,487			1,324,487
Other comprehensive income							0
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes		14,173					14,173
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares	58,000
Net issuance of common stock upon exercise of stock options	$ 8	57,160					57,168
Net issuance of common stock upon exercise of stock options, shares	745,000
Share-based compensation		18,806					18,806
Share repurchases, including fees	$ (61)	(93,119)		(1,620,833)			(1,714,013)
Share repurchases, including fees, shares	(6,061,000)
Balance at end of period (Adoption of ASU 2016-02 [Member]) at Dec. 31, 2018			$ (1,410)			$ (1,410)
Balance at end of period at Dec. 31, 2018	$ 790	1,262,063		(909,186)	0		353,667
Balance (in shares) at Dec. 31, 2018	79,044,000
Net income				1,391,042			1,391,042
Other comprehensive income					4,890		4,890
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes		15,302					15,302
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares	46,000
Net issuance of common stock upon exercise of stock options	$ 5	46,101					46,106
Net issuance of common stock upon exercise of stock options, shares	406,000
Share-based compensation		20,534					20,534
Share repurchases, including fees	$ (39)	(63,240)		(1,369,512)			$ (1,432,791)
Share repurchases, including fees, shares	(3,877,000)						(3,877,000)
Balance at end of period at Dec. 31, 2019	$ 756	1,280,760		(889,066)	4,890		$ 397,340
Balance (in shares) at Dec. 31, 2019	75,619,000						75,618,659
Net income				1,752,302			$ 1,752,302
Other comprehensive income					(7,045)		(7,045)
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes		17,314					17,314
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares	48,000
Net issuance of common stock upon exercise of stock options	$ 3	46,279					46,282
Net issuance of common stock upon exercise of stock options, shares	288,000
Share-based compensation		21,259					21,259
Share repurchases, including fees	$ (48)	(84,771)		(2,002,375)			$ (2,087,194)
Share repurchases, including fees, shares	(4,832,000)						(4,832,000)
Balance at end of period at Dec. 31, 2020	$ 711	$ 1,280,841		$ (1,139,139)	$ (2,155)		$ 140,258
Balance (in shares) at Dec. 31, 2020	71,123,000						71,123,109

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating activities:
Net income	$ 1,752,302	$ 1,391,042	$ 1,324,487
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, equipment and intangibles	314,635	270,875	258,937
Amortization of debt discount and issuance costs	4,580	3,916	3,470
Deferred income taxes	12,381	21,158	20,160
Share-based compensation programs	22,747	21,921	20,176
Other	4,686	7,529	9,895
Changes in operating assets and liabilities:
Accounts receivable	(20,515)	(15,577)	18,138
Inventory	(198,864)	(239,912)	(163,367)
Accounts payable	580,608	213,423	177,676
Income taxes payable	197,739	(20,139)	22,903
Accrued payroll	(11,941)	14,296	9,373
Accrued benefits and withholdings	189,332	16,868	28,022
Other	(11,087)	23,079	(2,315)
Net cash provided by operating activities	2,836,603	1,708,479	1,727,555
Investing activities:
Purchases of property and equipment	(465,579)	(628,057)	(504,268)
Proceeds from sale of property and equipment	15,770	7,118	4,784
Investment in tax credit equity investments	(164,111)	(33,781)	0
Other, including acquisitions, net of cash acquired	(975)	(142,026)	(34,818)
Net cash used in investing activities	(614,895)	(796,746)	(534,302)
Financing activities:
Proceeds from borrowings on revolving credit facility	1,162,000	2,708,000	2,414,000
Payments on revolving credit facility	(1,423,000)	(2,734,000)	(2,473,000)
Proceeds from the issuance of long-term debt	997,515	499,955	498,660
Principal payments on long-term debt	(500,000)	0	0
Payment of debt issuance costs	(7,929)	(3,990)	(3,923)
Repurchases of common stock	(2,087,194)	(1,432,791)	(1,714,013)
Net proceeds from issuance of common stock	62,284	60,206	72,146
Other	(253)	(191)	(2,156)
Net cash used in financing activities	(1,796,577)	(902,811)	(1,208,286)
Effect of exchange rate changes on cash	103	169	0
Net increase (decrease) in cash and cash equivalents	425,234	9,091	(15,033)
Cash and cash equivalents at beginning of the period	40,406	31,315	46,348
Cash and cash equivalents at end of the period	465,640	40,406	31,315
Supplemental disclosures of cash flow information:
Income taxes paid	305,087	394,931	311,376
Interest paid, net of capitalized interest	$ 159,717	$ 134,634	$ 117,938

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2020
Summary of Significant Accounting Policies
Summary of significant accounting policies	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of business: O’Reilly Automotive, Inc. and Subsidiaries, collectively, “O’Reilly” or the “Company,” is a specialty retailer and supplier of automotive aftermarket parts. The Company’s stores carry an extensive product line, including new and remanufactured automotive hard parts, maintenance items and various automotive accessories. As of December 31, 2020, the Company owned and operated 5,594 stores in 47 U.S. states and 22 stores in Mexico, servicing both do-it-yourself (“DIY”) and the professional service provider customers. The Company’s robust distribution system provides stores with same-day or overnight access to an extensive inventory of hard-to-find items not typically stocked in the stores of other auto parts retailers. Segment reporting: The Company is managed and operated by a single management Team reporting to the chief operating decision maker. The Company’s stores have similar characteristics, including the nature of the products and services, the type and class of customers and the methods used to distribute products and provide service to its customers and, as a whole, make up a single operating segment. The Company does not regularly prepare for review by the chief operating decision maker discrete financial information with respect to product lines, types of customers or geographic locations and as such has one reportable segment. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. Use of estimates: The preparation of the consolidated financial statements, in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”), requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Cash equivalents: Cash equivalents include investments with maturities of 90 days or less on the date of purchase. Foreign Currency: The Company accounts for its Mexican operations using the local market currency, the Mexican peso, and converts its financial statements compiled for these operations from the Mexican peso to U.S. dollars. The cumulative gain or loss on currency translation is included as a component of “Accumulated other comprehensive income” on the accompanying Consolidated Balance Sheets. See Note 11 for further information concerning the Company’s accumulated other comprehensive income. Accounts receivable: The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company considers the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current expectations of future economic and industry trends, changes in customer payment terms and management’s expectations. Allowances for doubtful accounts are determined based on historical experience and an evaluation of the current composition of accounts receivable. The Company grants credit to certain professional service provider and jobber customers who meet the Company’s pre-established credit requirements. Concentrations of credit risk with respect to these receivables are limited because the Company’s customer base consists of a large number of small customers, spreading the credit risk across a broad base regarded as a single class of financing receivable by the Company. The Company also controls this credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures. Generally, the Company does not require security when credit is granted to customers. Credit is granted to customers on a short-term basis, consisting primarily of daily, weekly or monthly accounts. Credit losses are provided for in the Company’s consolidated financial statements and have consistently been within management’s expectations. Amounts due to the Company from its Team Members are included in “Accounts receivable” on the accompanying Consolidated Balance Sheets. These amounts consist primarily of purchases of merchandise on Team Member accounts. Accounts receivable due from Team Members was approximately $0.9 million as of December 31, 2020 and 2019, respectively. Amounts receivable from suppliers: The Company receives concessions from its suppliers through a variety of programs and arrangements, including allowances for new stores and warranties, volume purchase rebates and co-operative advertising. Co-operative advertising allowances that are incremental to the Company’s advertising program, specific to a product or event and identifiable for accounting purposes are reported as a reduction of advertising expense in the period in which the advertising occurred. All other supplier concessions are recognized as a reduction to the cost of sales. Amounts receivable from suppliers also include amounts due to the Company for changeover merchandise and product returns. The Company regularly reviews supplier receivables for collectability and assesses the need for a reserve for uncollectable amounts based on an evaluation of the Company’s suppliers’ financial positions and corresponding abilities to meet financial obligations. Management does not believe there is a reasonable likelihood that the Company will be unable to collect the amounts receivable from suppliers and the Company did not record a reserve for uncollectable amounts from suppliers in the consolidated financial statements as of December 31, 2020 or 2019. Inventory: Inventory, which consists of automotive hard parts, maintenance items, accessories and tools, is stated at the lower of cost or market. Inventory also includes capitalized costs related to procurement, warehousing and distribution centers (“DC”s). Cost has been determined using the last-in, first-out (“LIFO”) method, which more accurately matches costs with related revenues. Over time, as the Company’s merchandise inventory purchases have increased, the Company negotiated improved acquisition costs from its suppliers and the corresponding price deflation exhausted the Company’s LIFO reserve balance. The Company’s policy is to not write up the value of its inventory in excess of its replacement cost, and accordingly, the Company’s merchandise inventory has been effectively recorded at replacement cost since December 31, 2013. The replacement cost of inventory was $3.67 billion and $3.47 billion as of December 31, 2020 and 2019, respectively. LIFO costs exceeded replacement costs by $55.8 million and $31.0 million at December 31, 2020 and 2019, respectively. Fair value of financial instruments: 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. See Note 3 for further information concerning the Company’s financial and non-financial assets and liabilities measured at fair value on a recurring and non-recurring basis. Property and equipment: Property and equipment are carried at cost. Depreciation is calculated using the straight-line method, generally over the estimated useful lives of the assets. Leasehold improvements are amortized over the lesser of the lease term or the estimated economic life of the assets. The lease term includes renewal options determined by management at lease inception, for which failure to execute renewal options would result in a substantial economic penalty to the Company. Maintenance and repairs are charged to expense as incurred. Upon retirement or sale, the cost and accumulated depreciation are eliminated and the gain or loss, if any, is recognized in the Company’s Consolidated Statements of Income. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. See Note 5 for further information concerning the Company’s property and equipment. Goodwill and other intangibles: The accompanying Consolidated Balance Sheets at December 31, 2020 and 2019, include goodwill and other intangible assets recorded as the result of acquisitions. The Company operates a single reporting unit and evaluates goodwill and indefinite-lived intangibles for impairment annually during the fourth quarter, or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Beginning in 2019, the goodwill impairment test includes a qualitative assessment. The Company’s qualitative assessment found no evidence to suggest it is more likely than not that its fair value is less than its carrying amount, including goodwill, as of December 31, 2020 and 2019. As such, no goodwill impairment adjustment was required as of December 31, 2020 and 2019. Finite-lived intangibles are carried at amortized cost and amortization is calculated using the straight-line method, generally over the estimated useful lives of the intangibles. See Note 7 for further information concerning the Company’s goodwill and other intangibles. Leases: 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 6 for further information concerning the Company’s operating leases. Impairment of long-lived assets: The Company reviews its long-lived assets, including its right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. When such an event occurs, the Company compares the sum of the undiscounted expected future cash flows of the asset (asset group) with the carrying amounts of the asset. If the undiscounted expected future cash flows are less than the carrying value of the assets, the Company measures the amount of impairment loss as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company has not historically recorded any material impairment charges to its long-lived assets. During the year ended December 31, 2020, the Company recorded a charge of $3.4 million, related to the write-down on surplus land and buildings that exceeded market value, and $1.9 million and $11.4 million, during the years ended December 31, 2019 and 2018, respectively, related to its long-lived assets, primarily due to the disposal of certain software projects that were no longer expected to provide a long-term benefit. Valuation of investments: The Company has an unsecured obligation to pay, in the future, the value of deferred compensation and a Company match relating to employee participation in the Company’s nonqualified deferred compensation plan (the “Deferred Compensation Plan”). The future obligation is adjusted to reflect the performance, whether positive or negative, of selected investment measurement options, chosen by each participant. The Company invests in various marketable securities with the intention of selling these securities to fulfill its future obligations under the Deferred Compensation Plan. The investments in this plan were stated at fair value based on quoted market prices, were accounted for as trading securities and were included in “Other assets, net” on the accompanying Consolidated Balance Sheets as of December 31, 2020 and 2019. See Note 3 for further information concerning the fair value measurements of the Company’s marketable securities. See Note 13 for further information concerning the Company’s benefit plans. Variable Interest Entities: The Company invests in certain tax credit funds that promote renewable energy. These investments generate a return primarily through the realization of federal tax credits and other tax benefits. The Company accounts for the tax attributes of its renewable energy investments using the deferral method. Under this method, realized investment tax credits and other tax benefits are recognized as a reduction of the renewable energy investments. The Company determined its investment in these tax credit funds was an investment in a variable interest entity (“VIE”). The Company analyzes any investments in VIEs at inception and again if certain triggering events are identified to determine if it is the primary beneficiary. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. As of December 31, 2020, the Company had invested in three unconsolidated tax credit fund entities that were considered to be VIEs and concluded it was not the primary beneficiary of any of the entities, as it did not have the power to control the activities that most significantly impact the entities, and has accounted for these investments using the equity method. The Company’s maximum exposure to losses associated with these VIEs is limited to its net investment, which was $19.5 million as of December 31, 2020, and was included in “Other assets, net” on the accompanying Consolidated Balance Sheets. During the years ended December 31, 2020, 2019 and 2018, the Company recognized investment tax credits in the amounts of $170.5 million, $8.5 million and $19.4 million, respectively, all of which were realized through reductions in cash income taxes paid and were reflected as a component of the change in Income taxes payable on the accompanying Consolidated Statements of Cash Flows for the respective years. See Note 16 for further information concerning the Company’s investment in renewable energy tax credits. Self-insurance reserves: The Company uses a combination of insurance and self-insurance mechanisms to provide for potential liabilities for Team Member health care benefits, workers’ compensation, vehicle liability, general liability and property loss. With the exception of certain Team Member health care benefit liabilities, employment related claims and litigation, certain commercial litigation and certain regulatory matters, the Company obtains third-party insurance coverage to limit its exposure. The Company estimates its self-insurance liabilities by considering a number of factors, including historical claims experience and trend-lines, projected medical and legal inflation, growth patterns and exposure forecasts. Certain of these liabilities were recorded at an estimate of their net present value, using a credit-adjusted discount rate. The following table identifies the components of the Company’s self-insurance reserves as of December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Self-insurance reserves (undiscounted) $ 213,332 $ 168,397 Self-insurance reserves (discounted) 202,454 156,585 The current portion of the Company’s discounted self-insurance reserves totaled $109.2 million and $79.1 million as of December 31, 2020 and 2019, respectively, which was included in “Self-insurance reserves” on the accompanying Consolidated Balance Sheets as of December 31, 2020 and 2019. The remainder was included in “Other liabilities” on the accompanying Consolidated Balance Sheets as of December 31, 2020 and 2019. Warranties: The Company offers 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. See Note 9 for further information concerning the Company’s aggregate product warranty liabilities. Litigation accruals: O’Reilly is currently involved in litigation incidental to the ordinary conduct of the Company’s business. The Company accrues for litigation losses in instances where a material adverse outcome is probable and the Company is able to reasonably estimate the probable loss. The Company accrues for an estimate of material legal costs to be incurred in pending litigation matters. Although the Company cannot ascertain the amount of liability that it may incur from any of these matters, it does not currently believe that, in the aggregate, these matters, taking into account applicable insurance and accruals, will have a material adverse effect on its consolidated financial position, results of operations or cash flows in a particular quarter or annual period. Share repurchases: 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. All shares repurchased under the share repurchase program are retired and recorded under the par value method on the accompanying Consolidated Balance Sheets. See Note 10 for further information concerning the Company’s share repurchase program. Revenue recognition: The Company’s primary source of revenue is derived from the sale of automotive aftermarket parts and merchandise to its customers. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied, in an amount representing the consideration the Company expects to receive in exchange for transferring goods to the customer. Generally, the Company’s performance obligations are satisfied when the customer takes possession of the merchandise, which normally occurs immediately at the point of sale or through same day delivery of the merchandise. All sales are recorded net of estimated returns allowances, discounts and taxes. The Company does not recognize revenue related to product warranties, as these are considered assurance warranty obligations. Over-the-counter retail sales to DIY customers are recorded when the customer takes possession of the merchandise. Internet retail sales, included in sales to DIY customers, are recorded when the merchandise is shipped or when the customer picks up the merchandise at a store. Sales to professional service provider customers, also referred to as “commercial sales,” are recorded upon same-day delivery of the merchandise to the customer, generally at the customer’s place of business. Other sales and sales adjustments primarily includes sales to Team Members, wholesale sales to other retailers (“jobber sales”), equipment sales, discounts, rebates, deferred revenue adjustments relating to the Company’s retail loyalty program and adjustments to estimated sales returns allowances. Sales to Team Members are recorded when the Team Member takes possession of the merchandise. Jobber sales are recorded upon shipment of the merchandise from a regional distribution center with same-day delivery to the jobber customer’s location. The Company maintains a retail loyalty program named O’Reilly O’Rewards, which represents a performance obligation. The Company records a deferred revenue liability, based on a breakage adjusted, estimated redemption rate and a corresponding reduction in revenue in periods when loyalty points are earned by members. The Company recognizes revenue and a corresponding reduction to the deferred revenue liability in periods when loyalty program issued coupons are redeemed by members, generally within a period of three months from issuance, or when unredeemed points expire, generally within 12 months after the date they were earned, which satisfies the Company’s performance obligation. See Note 12 for further information concerning the Company’s revenue. Cost of goods sold and selling, general and administrative expenses: The following table illustrates the primary costs classified in each major expense category: Cost of goods sold, including warehouse and distribution expenses Selling, general and administrative expenses Total cost of merchandise sold, including: Payroll and benefit costs for store and corporate Team Members Freight expenses associated with acquiring merchandise and with moving merchandise inventories from the Company’s distribution centers to the stores Occupancy costs of store and corporate facilities Defective merchandise and warranty costs Depreciation and amortization related to store and corporate assets Supplier allowances and incentives, including: Vehicle expenses for store delivery services Allowances that are not reimbursements for specific, incremental and identifiable costs Self-insurance costs Cash discounts on payments to suppliers Closed store expenses Costs associated with the Company’s supply chain, including: Other administrative costs, including: Payroll and benefit costs Accounting, legal and other professional services Warehouse occupancy costs Bad debt, banking and credit card fees Transportation costs Supplies Depreciation Travel Inventory shrinkage Advertising costs Advertising expenses: Advertising expense consists primarily of expenses related to the Company’s integrated marketing program, which includes radio, in-store, digital and social media promotions, as well as sports and event sponsorships and direct mail and newspaper promotional distribution. The Company expenses advertising costs as incurred. The Company also participates in cooperative advertising arrangements with certain of its suppliers. Advertising expense, net of cooperative advertising allowances from suppliers that were incremental to the advertising program, specific to the product or event and identifiable for accounting purposes, total $73.8 million, $79.3 million and $81.4 million for the years ended December 31, 2020, 2019 and 2018, respectively, which were included in “Selling, general and administrative expenses” on the accompanying Consolidated Statements of Income. Share-based compensation and benefit plans: The Company sponsors share-based compensation plans and benefit plans. The Company recognizes compensation expense over the requisite service period for its share-based plans based on the fair value of the awards on the date of the grant, award or issuance and accounts for forfeitures as they occur. Share-based plans include stock option awards, restricted stock awards and stock appreciation rights issued under the Company’s incentive plans and stock issued through the Company’s employee stock purchase plan. See Note 13 for further information concerning the Company’s share-based compensation and benefit plans. Pre-opening expenses: Costs associated with the opening of new stores, which consist primarily of payroll and occupancy costs, are charged to “Selling, general and administrative expenses” on the accompanying Consolidated Statements of Income as incurred. Costs associated with the opening of new distribution centers, which consist primarily of payroll and occupancy costs, are included in “Cost of goods sold, including warehouse and distribution expenses” on the accompanying Consolidated Statements of Income as incurred. Interest expense: The Company capitalizes interest costs as a component of construction in progress, based on the weighted-average interest rates incurred on its long-term borrowings. Total interest costs capitalized for the years ended December 31, 2020, 2019 and 2018, were $10.2 million, $13.0 million and $9.1 million, respectively, which were included in “Interest expense” on the accompanying Consolidated Statements of Income. In conjunction with the issuance or amendment of long-term debt instruments, the Company incurs various costs, including debt registration fees, accounting and legal fees and underwriter and book runner fees. Debt issuance costs related to the Company’s long-term unsecured senior notes are recorded as a reduction of the principal amount of the corresponding unsecured senior notes. Debt issuance costs related to the Company’s unsecured revolving credit facility are recorded as an asset. These debt issuance costs have been deferred and are being amortized over the term of the corresponding debt instrument and the amortization expense is included in “Interest expense” on the accompanying Consolidated Statements of Income. Deferred debt issuance costs totaled $22.3 million and $18.0 million, net of accumulated amortization, as of December 31, 2020 and 2019, respectively, of which $0.6 million and $1.1 million were included in “Other assets, net” as of December 31, 2020 and 2019, respectively, with the remainder included in “Long-term debt” on the accompanying Consolidated Balance Sheets. The Company issued its long-term unsecured senior notes at a discount. The original issuance discounts on the senior notes are recorded as a reduction of the principal amount of the corresponding senior notes and are accreted over the term of the applicable senior note, with the accretion expense included in “Interest expense” on the accompanying Consolidated Statements of Income. Original issuance discounts, net of accretion, totaled $5.1 million and $3.5 million as of December 31, 2020 and 2019, respectively. See Note 8 for further information concerning debt issuance costs and original issuance discounts associated with the Company’s issuances of long-term debt instruments. Income taxes: The Company accounts for income taxes using the liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on differences between the U.S. GAAP basis and tax basis of assets and liabilities using enacted tax rules and rates currently scheduled to be in effect for the year in which the differences are expected to reverse. Tax carry forwards are also recognized in deferred tax assets and liabilities under this method. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date. The Company would record a valuation allowance against deferred tax assets to the extent it is more likely than not the amount will not be realized, based upon evidence available at the time of the determination and any change in the valuation allowance is recorded in the period of a change in such determination. The Company did not establish a valuation allowance for deferred tax assets as of December 31, 2020 and 2019, as it was considered more likely than not that deferred tax assets were realizable through a combination of future taxable income, the realization of deferred tax liabilities and tax planning strategies. The Company regularly reviews its potential tax liabilities for tax years subject to audit. The amount of such liabilities is based on various factors, such as differing interpretations of tax regulations by the responsible tax authority, experience with previous tax audits and applicable tax law rulings. In management’s opinion, adequate provisions for income taxes have been made for all years presented. The estimates of the Company’s potential tax liabilities contain uncertainties because management must use judgment to estimate the exposures associated with the Company’s various tax positions and actual results could differ from estimates. See Note 16 for further information concerning the Company’s income taxes. Earnings per share: Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the fiscal period. Diluted earnings per share is calculated by dividing the weighted-average number of common shares outstanding plus the common stock equivalents associated with the potential impact of dilutive stock options. Certain common stock equivalents that could potentially dilute basic earnings per share in the future were not included in the fully diluted computation because they would have been antidilutive. Generally, stock options are antidilutive and excluded from the earnings per share calculation when the exercise price exceeds the market price of the common shares. See Note 17 for further information concerning the Company’s common stock equivalents. New accounting pronouncements: In June of 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standard Update (“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 adopted this guidance using the modified retrospective adoption method beginning with its first quarter ending March 31, 2020, and applied it to all applicable accounts. The application of this new guidance did not have a material impact on the Company’s consolidated financial condition, results of operations or cash flows. See Note 4 for further information concerning the Company’s allowance for accounts receivable.

Business Combination

Business Combination	12 Months Ended
Business Combination	Dec. 31, 2020
Business Combination
Business combination	NOTE 2 – BUSINESS COMBINATION After the close of business on November 29, 2019, the Company completed the acquisition of Mayoreo de Autopartes y Aceites, S.A. de C.V. (“Mayasa”), a specialty retailer of automotive aftermarket parts headquartered in Guadalajara, Jalisco, Mexico pursuant to a stock purchase agreement. The results of Mayasa’s operations have been included in the Company’s consolidated financial statements beginning from the date of acquisition. Pro forma results of operations related to the acquisition of Mayasa are not presented as Mayasa’s results are not material to the Company’s results of operations. The Company’s preliminary assessment resulted in the initial recognition of $128.1 million of goodwill and intangible assets included in “Goodwill” on the accompanying Consolidated Balance Sheets as of December 31, 2019. The purchase price allocation process, consisting of collecting data and information to enable the Company to value the identified assets acquired and liabilities assumed as a result of the business combination, was finalized during the third quarter of 2020. Separately identifiable intangible assets, arising as a result of the business combination, include $36.0 million of indefinite lived trade names and trademarks and $25.5 million of finite lived intangible assets, primarily consisting of other trade names and trademarks, non-compete agreements, customer relationships and internal use software. Residual goodwill of $73.4 million was recorded as of the acquisition date, as a result of the final purchase price allocation. Goodwill generated from this acquisition is not amortizable for tax purposes. See Note 7 for further information concerning the Company’s goodwill and other intangible assets.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
Fair Value Measurements	Dec. 31, 2020
Fair Value Measurements
Fair value measurements	NOTE 3 – FAIR VALUE MEASUREMENTS Financial assets and liabilities measured at fair value on a recurring basis: 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 Consolidated Balance Sheets as of December 31, 2020 and 2019. The Company recorded increases in fair value related to its marketable securities in the amounts of $5.4 million and $5.8 million for the years ended December 31, 2020 and 2019, respectively, which were included in “Other income (expense)” on the accompanying 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 December 31, 2020 and 2019 (in thousands): December 31, 2020 Quoted Priced in Active Markets Significant Other Significant for Identical Instruments Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Marketable securities $ 40,411 $ — $ — $ 40,411 December 31, 2019 Quoted Prices in Active Markets Significant Other Significant for Identical Instruments Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Marketable securities $ 32,201 $ — $ — $ 32,201 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 December 31, 2020 and 2019, the Company did not have any material 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 Consolidated Balance Sheets as of December 31, 2020 and 2019. The table below identifies the estimated fair value of the Company’s senior notes, using the market approach. The fair values as of December 31, 2020 and 2019, were determined by reference to quoted market prices of the same or similar instruments (Level 2) (in thousands): December 31, 2020 December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior Notes $ 4,123,217 $ 4,647,595 $ 3,629,527 $ 3,881,925 The carrying amount of the Company’s unsecured revolving credit facility approximates fair value, as borrowings under the facility bear variable interest at current market rates. See Note 8 for further information concerning the Company’s senior notes and unsecured revolving credit facility. The accompanying Consolidated Balance Sheets include other financial instruments, including cash and cash equivalents, accounts receivable, amounts receivable from suppliers and accounts payable. Due to the short-term nature of these financial instruments, the Company believes that the carrying values of these instruments approximate their fair values.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts	12 Months Ended
Allowance for Doubtful Accounts	Dec. 31, 2020
Allowance for Doubtful Accounts
Allowance for doubtful accounts	NOTE 4 – ALLOWANCE FOR DOUBTFUL ACCOUNTS The following table identifies the changes in the Company’s allowance for doubtful accounts included in “Accounts receivable” on the accompanying Consolidated Balance Sheets as of December 31, 2020 and 2019 (in thousands): 2020 2019 Allowance for doubtful accounts, balance at January 1, $ 14,417 $ 13,238 Reserve accruals 5,030 8,738 Uncollectable accounts written-off (6,743) (8,282) Foreign currency translation (34) 723 Allowance for doubtful accounts, balance at December 31, $ 12,670 $ 14,417

Property and Equipment

Property and Equipment	12 Months Ended
Property and Equipment	Dec. 31, 2020
Property and Equipment
Property and equipment	NOTE 5 – PROPERTY AND EQUIPMENT The following table identifies the types and balances of property and equipment included in “Property and equipment, at cost” on the accompanying Consolidated Balance Sheets as of December 31, 2020 and 2019, and includes the estimated useful lives for its types of property and equipment (in thousands, except original useful lives): Original Useful Lives December 31, 2020 December 31, 2019 Land $ 860,797 $ 805,556 Buildings and building improvements 15 – 39 years 2,574,969 2,378,074 Leasehold improvements 3 – 25 years 799,013 751,155 Furniture, fixtures and equipment 3 – 20 years 1,562,664 1,450,444 Vehicles 5 – 10 years 456,957 447,939 Construction in progress 305,511 358,259 Total property and equipment 6,559,911 6,191,427 Less: accumulated depreciation and amortization 2,464,993 2,243,224 Net property and equipment $ 4,094,918 $ 3,948,203 The Company recorded depreciation and amortization expense related to property and equipment in the amounts of $303.0 million, $267.3 million and $246.0 million for the years ended December 31, 2020, 2019 and 2018, respectively, which were primarily included in “Selling, general and administrative expenses” on the accompanying Consolidated Statements of Income. The Company recorded a charge of $3.4 million related to property and equipment for the year ended December 31, 2020, primarily due to the write-down on surplus land and buildings that exceeded market value, and $1.9 million and $11.4 million related to property and equipment for the years ended December 31, 2019 and 2018, respectively, primarily due to the disposal of certain software projects that were no longer expected to provide a long-term benefit, which were included in “Selling, general and administrative expenses” on the accompanying Consolidated Statements of Income.

Leases

Leases	12 Months Ended
Leases	Dec. 31, 2020
Leases
Leases	NOTE 6 – LEASES Operating lease commitments: The following table summarizes Total lease cost for the years ended December 31, 2020 and 2019, which was primarily included in “Selling, general and administrative expenses” on the accompanying Consolidated Statements of Income (in thousands): For the Year Ended December 31, 2020 2019 Operating lease cost $ 336,156 $ 320,480 Short-term operating lease cost 6,131 5,899 Variable operating lease cost 82,868 76,027 Sublease income (4,790) (4,112) Total lease cost $ 420,365 $ 398,294 The following table summarizes the Net rent expense amounts, prior to the adoption of Accounting Standard Codification 842 – Leases, for the year ended December 31, 2018, which were included in “Selling, general and administrative expenses” on the accompanying Consolidated Statements of Income (in thousands): For the Year Ended December 31, 2018 Minimum operating lease expense $ 305,613 Contingent rents 806 Other lease related occupancy costs 14,449 Total rent expense 320,868 Less: sublease income 3,585 Net rent expense $ 317,283 The following table summarizes other lease related information for the years ended December 31, 2020 and 2019 (in thousands): For the Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 334,994 $ 318,048 Right-of-use assets obtained in exchange for new operating lease liabilities 322,712 233,584 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 Consolidated Balance Sheet as of December 31, 2020 (in thousands): December 31, 2020 Related Parties Non-Related Parties Total 2021 $ 4,589 $ 317,888 $ 322,477 2022 3,848 306,134 309,982 2023 3,477 275,966 279,443 2024 1,730 246,547 248,277 2025 957 208,064 209,021 Thereafter 2,064 1,044,244 1,046,308 Total operating lease payments 16,665 2,398,843 2,415,508 Less: present value discount 1,478 372,561 374,039 Total operating lease liabilities 15,187 2,026,282 2,041,469 Less: current portion of operating lease liabilities 4,589 318,189 322,778 Operating lease liabilities, less current portion $ 10,598 $ 1,708,093 $ 1,718,691 See Note 15 for further information concerning the Company’s related party operating leases. 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 $17.2 million as of December 31, 2020. The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating leases was 10.0 years and 4.0%, respectively, as of December 31, 2020. 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. Inputs for the calculation of the Company’s incremental borrowing rate include valuations and yields of U.S. domestic investment grade corporate bonds and the applicable credit spread over comparable U.S. Treasury rates, adjusted to a collateralized basis by estimating the credit spread improvement that would result from an upgrade of one ratings classification. 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.

Goodwill and Other Intangibles

Goodwill and Other Intangibles	12 Months Ended
Goodwill and Other Intangibles	Dec. 31, 2020
Goodwill and Other Intangibles
Goodwill and other intangibles	NOTE 7 – GOODWILL AND OTHER INTANGIBLES Goodwill: Goodwill is reviewed for impairment annually during the fourth quarter, or more frequently if events or changes in circumstances indicate that impairment may exist. Goodwill is not amortizable for financial statement purposes. The Company did not record any goodwill impairment during the years ended December 31, 2020 or 2019. The following table identifies the changes in goodwill and certain acquisition intangibles, which were included in “Goodwill” on the accompanying Consolidated Balance Sheets for the years ended December 31, 2020 and 2019 (in thousands): 2020 2019 Goodwill, balance at January 1, $ 936,814 $ 807,260 Change in goodwill related to small acquisitions 109 1,464 Foreign currency translation (5,465) 4,130 Provisional goodwill and intangibles related to Mayasa acquisition — 123,960 Final purchase price allocation of intangibles related to Mayasa acquisition (50,428) — Goodwill, balance at December 31, $ 881,030 $ 936,814 For the year ended December 31, 2019, goodwill included $128.1 million of goodwill and intangible assets, as well as foreign currency translation, from the preliminary purchase price allocation related to the acquisition of Mayasa. This amount was provisional, and during the year ended December 31, 2020, as result of the final purchase price allocation of the Mayasa acquisition, $61.5 million of intangible assets and $73.4 million of residual goodwill was recorded as of the acquisition date. See Note 2 for further information concerning the Company’s business combination. Intangibles other than goodwill: The following table identifies the components of the Company’s intangible assets, inclusive of foreign currency translation adjustments, which were included in “Other assets, net” on the accompanying Consolidated Balance Sheets for the years ended December 31, 2020 and 2019 (in thousands): December 31, 2020 December 31, 2019 Cost of Accumulated Net Cost of Accumulated Net Intangibles Amortization Intangibles Intangibles Amortization Intangibles Finite-lived intangible assets: Trade names (1) $ 8,363 $ (1,905) $ 6,458 $ — $ — $ — Non-compete agreements (2) 7,183 (2,713) 4,470 2,717 (928) 1,789 Other intangible assets (3) 12,200 (2,242) 9,958 — — — Total finite-lived intangible assets 27,746 (6,860) 20,886 2,717 (928) 1,789 Indefinite-lived intangible assets: Trade names 35,420 — 35,420 — — — Total intangible assets $ 63,166 $ (6,860) $ 56,306 $ 2,717 $ (928) $ 1,789 (1) Weighted-average remaining useful life of approximately 4.3 years as of December 31, 2020. (2) Weighted-average remaining useful life of approximately 3.6 years as of December 31, 2020. (3) Includes internally-developed software and customer relationships and has an estimated weighted-average remaining useful life of approximately 7.3 years as of December 31, 2020. During the year ended December 31, 2020, the Company recorded finite-lived and indefinite-lived intangible assets, related to trade names from the Mayasa acquisition, in the amounts of $8.5 million and $36.0 million, respectively. During the years ended December 31, 2020 and 2019, the Company recorded non-compete agreement assets in conjunction with small acquisitions, including the acquisition of Mayasa, in the amounts of $4.7 million and less than $0.1 million, respectively. During the year ended December 31, 2020, the Company recorded other finite-lived intangible assets, related to internally-developed software and customer relationships from the Mayasa acquisition, in the amount of $12.4 million. In prior years, the Company recorded favorable lease assets and unfavorable lease liabilities. These favorable lease assets represented the values of operating leases acquired with favorable terms and these unfavorable lease liabilities represented the values of operating leases acquired with unfavorable terms. With the adoption of Accounting Standard Codification 842 – Leases during the year ended December 31, 2019, the Company’s favorable lease assets and unfavorable lease liabilities, from a previous acquisition, were incorporated into the value of the right-of-use asset. For the years ended December 31, 2020, 2019 and 2018, the Company recorded aggregate amortization expense related to its intangible assets in the amounts of $5.3 million, $0.3 million and $1.4 million, respectively. For the year ended December 31, 2018, the Company recognized an amortized benefit of $0.9 million related to these unfavorable operating leases. The following table identifies the estimated amortization expense of the Company’s intangibles for each of the next five years as of December 31, 2020 (in thousands): December 31, 2020 Amortization Expense 2021 $ 5,602 2022 5,347 2023 2,714 2024 1,397 2025 1,391 Total $ 16,451

Financing

Financing	12 Months Ended
Financing	Dec. 31, 2020
Financing
Financing	NOTE 8 – FINANCING The following table identifies the amounts of the Company’s financing facilities, which were included in “Long-term debt” on the accompanying Consolidated Balance Sheets as of December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Revolving Credit Facility $ — $ 261,000 4.875% Senior Notes due 2021 — 500,000 4.625% Senior Notes due 2021, effective interest rate of 4.643% 300,000 300,000 3.800% Senior Notes due 2022, effective interest rate of 3.845% 300,000 300,000 3.850% Senior Notes due 2023, effective interest rate of 3.851% 300,000 300,000 3.550% Senior Notes due 2026, effective interest rate of 3.570% 500,000 500,000 3.600% Senior Notes due 2027, effective interest rate of 3.619% 750,000 750,000 4.350% Senior Notes due 2028, effective interest rate of 4.383% 500,000 500,000 3.900% Senior Notes due 2029, effective interest rate of 3.901% 500,000 500,000 4.200% Senior Notes due 2030, effective interest rate of 4.205% 500,000 — 1.750% Senior Notes due 2031, effective interest rate of 1.798% 500,000 — Total principal amount of debt 4,150,000 3,911,000 Less: Unamortized discount and debt issuance costs 26,783 20,473 Total long-term debt $ 4,123,217 $ 3,890,527 The following table identifies the principal maturities of the Company’s financing facilities as of December 31, 2020 (in thousands): Scheduled Maturities 2021 $ 300,000 2022 300,000 2023 300,000 2024 — 2025 — Thereafter 3,250,000 Total $ 4,150,000 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 December 31, 2020 and 2019, 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 $66.4 million and $38.9 million, respectively, reducing the aggregate availability under the Revolving Credit Facility 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 December 31, 2020, 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 December 31, 2020, the Company remained in compliance with all covenants under the Credit Agreement. Senior notes: On March 27, 2020, the Company issued $500 million aggregate principal amount of unsecured 4.200% Senior Notes due 2030 (“4.200% Senior Notes due 2030”) at a price to the public of 99.959% of their face value with U.S. Bank National Association (“U.S. Bank”) as trustee. Interest on the 4.200% Senior Notes due 2030 is payable on April 1 and October 1 of each year, which began on October 1, 2020, and is computed on the basis of a 360-day year. On September 23, 2020, the Company issued $500 million aggregate principal amount of unsecured 1.750% Senior Notes due 2031 (“1.750% Senior Notes due 2031”) at a price to the public of 99.544% of their face value with U.S. Bank as trustee. Interest on the 1.750% Senior Notes due 2031 is payable on March 15 and September 15 of each year, beginning on March 15, 2021, and is computed on the basis of a 360-day year. On October 14, 2020, the Company redeemed its $500 million aggregate principal amount of unsecured 4.875% Senior Notes due 2021 at a redemption price of $500 million, plus accrued and unpaid interest to, but not including, the date of redemption, and the Company recorded a $0.2 million loss on debt extinguishment at that time. As of December 31, 2020, the Company has issued and has outstanding a cumulative $4.2 billion aggregate principal amount of unsecured senior notes, which are due between 2021 and 2031, with UMB Bank, N.A. and U.S. Bank as trustees. Interest on the senior notes, ranging from 1.750% to 4.625%, is payable semi-annually and is computed on the basis of a 360-day year. The 4.625% Senior Notes due 2021 were included in “Long-term debt” on the accompanying Consolidated Balance Sheet as of December 31, 2020, as the Company has the ability and intent to refinance these notes on a long-term basis. 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 December 31, 2020.

Warranties

Warranties	12 Months Ended
Warranties	Dec. 31, 2020
Warranties
Warranties	NOTE 9 – WARRANTIES The Company’s product warranty liabilities are included in “Other current liabilities” on the accompanying Consolidated Balance Sheets as of December 31, 2020 and 2019. The following table identifies the changes in the Company’s aggregate product warranty liabilities for the years ended December 31, 2020 and 2019 (in thousands): 2020 2019 Warranty liabilities, balance at January 1, $ 61,069 $ 52,220 Warranty claims (109,684) (99,267) Warranty accruals 114,526 108,099 Foreign currency translation (25) 17 Warranty liabilities, balance at December 31, $ 65,886 $ 61,069

Share Repurchase Program

Share Repurchase Program	12 Months Ended
Share Repurchase Program	Dec. 31, 2020
Share Repurchase Program
Share repurchase program	NOTE 10 – 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 February 5, 2020, October 28, 2020, and February 10, 2021, the Company’s Board of Directors each time approved a resolution to increase the authorization amount under the share repurchase program by an additional $1.0 billion authorization authorization effective 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 years ended December 31, 2020 and 2019 (in thousands, except per share data): For the Year Ended December 31, 2020 2019 Shares repurchased 4,832 3,877 Average price per share $ 431.93 $ 369.55 Total investment $ 2,087,146 $ 1,432,752 As of December 31, 2020, the Company had $481.5 million remaining under its share repurchase program. Subsequent to the end of the year and through February 26, 2021, the Company repurchased an additional 1.1 million shares of its common stock under its share repurchase program, at an average price of $447.49, for a total investment of $478.4 million. The Company has repurchased a total of 82.1 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through February 26, 2021, at an average price of $179.65, for a total aggregate investment of $14.7 billion.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	12 Months Ended
Accumulated Other Comprehensive Income (Loss)	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss)	NOTE 11 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income includes adjustments for foreign currency translations. The table below summarizes activity for changes in accumulated other comprehensive income included in “Accumulated other comprehensive (loss) income” on the accompanying Consolidated Balance Sheets as of December 31, 2019 and 2018 (in thousands): Foreign Total Accumulated Other Currency (1) Comprehensive Income (Loss) Accumulated other comprehensive income, balance at December 31, 2018 $ — $ — Change in accumulated other comprehensive income 4,890 4,890 Accumulated other comprehensive income, balance at December 31, 2019 $ 4,890 $ 4,890 Change in accumulated other comprehensive loss (7,045) (7,045) Accumulated other comprehensive loss, balance at December 31, 2020 $ (2,155) $ (2,155) (1) Foreign currency is not shown net of additional U.S. tax, as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested.

Revenue

Revenue	12 Months Ended
Revenue	Dec. 31, 2020
Revenue
Revenue	NOTE 12 – REVENUE The table below identifies the Company’s revenues disaggregated by major customer type for the years ended December 31, 2020, 2019 and 2018 (in thousands): For the Year Ended December 31, 2020 2019 2018 Sales to do-it-yourself customers $ 6,684,183 $ 5,612,390 $ 5,351,035 Sales to professional service provider customers 4,647,189 4,369,541 4,035,898 Other sales and sales adjustments 273,121 168,054 149,495 Total sales $ 11,604,493 $ 10,149,985 $ 9,536,428 As of December 31, 2020 and 2019, the Company had recorded a deferred revenue liability of $4.5 million and $4.1 million, respectively, related to its loyalty program, which were included in “Other liabilities” on the accompanying Consolidated Balance Sheets. During the years ended December 31, 2020, 2019 and 2018, the Company recognized $14.4 million, $15.6 million and $15.9 million, respectively, of revenue related to its loyalty program, which were included in “Sales” on the accompanying Consolidated Statements of Income.

Share-Based Compensation and Be

Share-Based Compensation and Benefit Plans	12 Months Ended
Share-Based Compensation and Benefit Plans	Dec. 31, 2020
Share-Based Compensation and Benefit Plans
Share-based compensation and benefit plans	NOTE 13 – 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, restricted stock awards and stock appreciation rights issued under the Company’s incentive plans and stock issued through the Company’s employee stock purchase plan. The table below identifies the shares that have been authorized for issuance and the shares available for future issuance under the Company plans, as of December 31, 2020 (in thousands): December 31, 2020 Total Shares Authorized for Shares Available for Future Plans Issuance under the Plans Issuance under the Plans Incentive Plans 34,650 5,592 Employee Stock Purchase Plan 4,250 506 Profit Sharing and Savings Plan 4,200 349 Stock options: The Company’s incentive plans provide for the granting of stock options for the purchase of common stock of the Company to certain key employees of the Company. Employee stock 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. Employee stock options granted under the plans expire after 10 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 minimum required service period. The table below identifies the employee stock option activity under these plans during the year ended December 31, 2020: Average Aggregate Shares Weighted- Average Remaining Intrinsic Value (in thousands) Exercise Price Contractual Terms (in thousands) Outstanding at December 31, 2019 1,635 $ 218.10 Granted 175 394.79 Exercised (288) 160.67 Forfeited or expired (22) 302.55 Outstanding at December 31, 2020 1,500 $ 248.52 5.7 Years $ 306,095 Vested or expected to vest at December 31, 2020 1,470 $ 246.44 5.7 Years $ 302,927 Exercisable at December 31, 2020 988 $ 202.19 4.5 Years $ 247,419 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 stock options awarded by the Company during the years ended December 31, 2020, 2019 and 2018: December 31, 2020 2019 2018 Risk free interest rate 0.86 % 2.26 % 2.63 % Expected life 5.9 Years 5.7 Years 5.9 Years Expected volatility 26.4 % 25.1 % 24.0 % Expected dividend yield — % — % — % The following table summarizes activity related to stock options awarded by the Company for the years ended December 31, 2020, 2019 and 2018: For the Year Ended December 31, 2020 2019 2018 Compensation expense for stock options awarded (in thousands) $ 18,435 $ 18,044 $ 16,521 Income tax benefit from compensation expense related to stock options (in thousands) 4,620 4,436 4,093 Total intrinsic value of stock options exercised (in thousands) 79,451 117,489 156,327 Cash received from exercise of stock options (in thousands) 46,282 46,106 61,403 Weighted-average grant-date fair value of options awarded $ 106.76 $ 105.37 $ 76.57 Weighted-average remaining contractual life of exercisable options (in years) 4.5 4.6 4.4 At December 31, 2020, the remaining unrecognized compensation expense related to unvested stock option awards was $32.6 million, and the weighted-average period of time, over which this cost will be recognized, is 2.4 years. Restricted stock: The Company’s incentive plans provide for the awarding of shares of restricted stock to certain key employees that vest evenly over a three-year period and are held in escrow until such vesting has occurred. Generally, unvested shares are forfeited when an employee ceases employment. The fair value of shares awarded under these plans is based on the closing market price of the Company’s common stock on the date of award and compensation expense is recorded over the vesting period or minimum required service period. The table below identifies employee restricted stock activity under these plans during the year ended December 31, 2020 (in thousands, except per share data): Weighted-Average Grant-Date Shares Fair Value Non-vested at December 31, 2019 4 $ 301.40 Granted during the period 2 419.88 Vested during the period (1) (2) 289.03 Forfeited during the period — — Non-vested at December 31, 2020 4 $ 358.58 (1) Includes less than one thousand shares withheld to cover employees’ taxes upon vesting. The Company’s incentive plans provide for the awarding of shares of restricted stock to the non-employee directors of the Company that vest over a one-year period, except for awards issued prior to May 2020, which vests evenly over a three-year period, and are held in escrow until such vesting has occurred. Unvested shares are forfeited when a director ceases their service on the Company’s Board of Directors for reasons other than death or retirement. The fair value of shares awarded under these plans is based on the closing market price of the Company’s common stock on the date of award, and compensation expense is recorded evenly over the minimum required service period. The table below identifies non-employee director restricted stock activity under these plans during the year ended December 31, 2020 (in thousands, except per share data): Weighted-Average Grant-Date Shares Fair Value Non-vested at December 31, 2019 4 $ 312.96 Granted during the period 2 407.12 Vested during the period (2) 293.72 Forfeited during the period — — Non-vested at December 31, 2020 4 $ 371.46 The following table summarizes activity related to restricted stock awarded by the Company for the years ended December 31, 2020, 2019 and 2018 (in thousands, except per share data): For the Year Ended December 31, 2020 2019 2018 Compensation expense for restricted shares awarded $ 1,488 $ 1,387 $ 1,370 Income tax benefit from compensation expense related to restricted shares $ 373 $ 341 $ 340 Total fair value of restricted shares at vest date $ 1,591 $ 1,633 $ 1,230 Shares awarded under the plans 4 4 5 Weighted-average grant-date fair value of shares awarded under the plans $ 412.67 $ 355.91 $ 263.89 At December 31, 2020, the remaining unrecognized compensation expense related to unvested restricted share awards was $0.4 million, and the weighted-average period of time, over which this cost will be recognized, is 0.5 years . Employee stock purchase plan: The Company’s employee stock purchase plan (the “ESPP”) permits eligible employees to purchase shares of the Company’s common stock at 85% of the fair market value. Employees may authorize the Company to withhold up to 5% of their annual salary to participate in the plan. 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. Compensation expense is recognized based on the discount between the grant-date fair value and the employee purchase price for the shares sold to employees. The table below summarizes activity related to the Company’s ESPP for the years ended December 31, 2020, 2019 and 2018 (in thousands, except per share data): For the Year Ended December 31, 2020 2019 2018 Compensation expense for shares issued under the ESPP $ 2,824 $ 2,490 $ 2,285 Income tax benefit from compensation expense related to shares issued under the ESPP $ 708 $ 612 $ 566 Shares issued under the ESPP 45 43 53 Weighted-average price of shares issued under the ESPP $ 353.04 $ 329.69 $ 245.26 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 years ended December 31, 2020, 2019 or 2018. The Company expensed matching contributions under the 401(k) Plan in the amounts of $31.0 million, $27.5 million and $24.8 million for the years ended December 31, 2020, 2019 and 2018, respectively, which were primarily included in “Selling, general and administrative expenses” on the accompanying 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 $40.4 million and $32.2 million as of December 31, 2020 and 2019, respectively, which were included in “Other liabilities” on the Consolidated Balance Sheets. The Company expensed matching contributions under the Deferred Compensation Plan in the amounts of $0.2 million, $0.2 million and $0.1 million for the years ended December 31, 2020, 2019 and 2018, respectively, which were primarily included in “Selling, general and administrative expenses” on the accompanying Consolidated Statements of Income. Stock appreciation rights: The Company’s incentive plans provide for the granting of stock appreciation rights, which expire after 10 years and vest 25% per year, over four years, and are settled in cash. There were 8,149 and 8,009 stock appreciation rights outstanding as of December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, there were 1,011 stock appreciation rights granted. The liability for compensation to be paid for the future redemption of stock appreciation rights was $0.3 million and less than $0.1 million as of December 31, 2020 and 2019, respectively, which were included in “Other liabilities” on the Consolidated Balance Sheets. The Company expensed compensation expense for stock appreciation rights in the amounts of $0.3 million and less than $1.0 million for the years ended December 31, 2020 and 2019, respectively, which were included in “Selling, general and administrative expenses” on the accompanying Consolidated Statements of Income.

Commitments

Commitments	12 Months Ended
Commitments	Dec. 31, 2020
Commitments
Commitments	NOTE 14 – COMMITMENTS Construction commitments: As of December 31, 2020, the Company had construction commitments in the amount of $38.3 million. Letters of credit commitments: As of December 31, 2020, the Company had outstanding letters of credit, primarily to satisfy workers’ compensation, general liability and other insurance policies, in the amount of $66.4 million. See Note 8 for further information concerning the Company’s letters of credit commitments. Debt financing commitments: Each series of senior notes is redeemable in whole, at any time, or in part, from time to time, at the Company’s option upon not less than 30 nor more than 60 days notice at a redemption price, plus any accrued and unpaid interest to, but not including, the redemption date, equal to the greater of (i) 100% of the principal amount thereof or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date on a semiannual basis at the applicable Treasury Yield plus basis points identified in the indenture governing such series of senior notes; provided, that on or after the date that is three months prior to the maturity date of the series of senior notes, such series of senior notes is redeemable at a redemption price equal to par plus accrued and unpaid interest to, but not including, the redemption date. In addition, if at any time the Company undergoes a Change of Control Triggering Event, as defined in the indenture governing such series of senior notes, the holders may require the Company to repurchase all or a portion of their senior notes at a price equal to 101% of the principal amount of the notes being repurchased, plus accrued and unpaid interest, if any, but not including the repurchase date. See Note 8 for further information concerning the Company’s debt financing commitments. Self-insurance reserves: The Company uses a combination of insurance and self-insurance mechanisms to provide for potential liabilities for Team Member health care benefits, workers’ compensation, vehicle liability, general liability and property loss. With the exception of certain Team Member health care benefit liabilities, employment related claims and litigation, certain commercial litigation and certain regulatory matters, the Company obtains third-party insurance coverage to limit its exposure to this obligation.

Related Parties

Related Parties	12 Months Ended
Related Parties	Dec. 31, 2020
Related Parties
Related parties	NOTE 15 – RELATED PARTIES The Company leases certain land and buildings related to 71 of its O’Reilly Auto Parts stores and one surplus property 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 $4.7 million, $4.7 million and $4.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. The Company believes that the lease agreements with the affiliated entities are on terms comparable to those obtainable from third parties. See Note 6 for further information concerning the Company’s operating leases.

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Dec. 31, 2020
Income Taxes
Income taxes	NOTE 16 – INCOME TAXES The following table identifies components of income from continuing operations before income taxes included in “Income before income taxes” on the accompanying Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018 (in thousands): For the Year Ended December 31, 2020 2019 2018 Domestic $ 2,260,385 $ 1,790,207 $ 1,694,087 International 6,020 122 — Income before income taxes $ 2,266,405 $ 1,790,329 $ 1,694,087 Provision for income taxes: The following tables reconcile the amounts included in “Provision for income taxes” on the accompanying Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018 (in thousands): For the Year Ended December 31, 2020 2019 2018 Current: Federal income tax expense $ 401,331 $ 315,061 $ 289,953 State income tax expense 97,085 62,795 59,487 International income tax expense 3,306 273 — Total current 501,722 378,129 349,440 Deferred: Federal income tax expense 16,749 19,367 16,309 State income tax (benefit) expense (2,865) 2,027 3,851 International income tax benefit (1,503) (236) — Total deferred 12,381 21,158 20,160 Net income tax expense $ 514,103 $ 399,287 $ 369,600 The following table outlines the reconciliation of the “Provision for income taxes” amounts included on the accompanying Consolidated Statements of Income to the amounts computed at the federal statutory rate for the years ended December 31, 2020, 2019 and 2018 (in thousands): For the Year Ended December 31, 2020 2019 2018 Federal income taxes at statutory rate $ 474,681 $ 375,942 $ 355,758 State income taxes, net of federal tax benefit 76,810 54,739 56,345 Excess tax benefit from share-based compensation (16,918) (25,992) (34,703) Revaluation of deferred tax liability — — (1,262) Benefit from investment in renewable energy tax credits (17,904) (875) (2,037) Other items, net (2,566) (4,527) (4,501) Total provision for income taxes $ 514,103 $ 399,287 $ 369,600 The U.S. Tax Cuts and Jobs Act, enacted in December 2017 (the “Tax Act”), significantly reduced the federal corporate income tax rate for tax years beginning in 2018 and required the Company to revalue its deferred income tax liabilities. During the year ended December 31, 2018, the Company completed its evaluation of the impact of the Tax Act and recorded a one-time benefit of $1.3 million, finalizing the revaluation of its deferred income tax liabilities due to the Tax Act, which was recorded in “Provision for income taxes” on the accompanying Consolidated Statements of Income for the year ended December 31, 2018. The Company has invested in tax credit equity investments for the purposes of receiving renewable energy tax credits. During the years ended December 31, 2020, 2019 and 2018, the Company recognized investment tax credits in the amount of $170.5 million, $8.5 million and $19.4 million, respectively, all of which were realized through reductions in cash income taxes paid and were reflected as a component of the change in Income taxes payable on the accompanying Consolidated Statements of Cash Flows for the respective years. See Note 1 for further information concerning the Company’s investment in tax credit funds. Deferred income tax assets and liabilities: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and also include the tax effect of carryforwards. The following table identifies significant components of the Company’s net deferred tax liabilities included in “Deferred income taxes” on the accompanying Consolidated Balance Sheets as of December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Deferred tax assets: Allowance for doubtful accounts $ 1,574 $ 2,008 Tax credits 1,444 3,417 Other accruals 143,387 97,189 Operating lease liability 513,134 494,093 Other 16,594 15,732 Total deferred tax assets 676,133 612,439 Deferred tax liabilities: Inventories 79,326 65,346 Property and equipment 194,000 162,613 Operating lease asset 498,042 479,821 Other 60,664 37,939 Total deferred tax liabilities 832,032 745,719 Net deferred tax liabilities $ (155,899) $ (133,280) As of December 31, 2020, the Company had tax credit carryforwards available for state tax purposes, net of federal impact, in the amount of $1.4 million, which generally expire in 2024. Unrecognized tax benefits: The following table summarizes the changes in the gross amount of unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 Unrealized tax benefit, balance at January 1, $ 31,475 $ 33,766 $ 35,388 Additions based on tax positions related to the current year 4,795 4,627 3,550 Additions based on tax positions related to prior years — — 4,255 Payments related to items settled with taxing authorities — (443) (2,792) Reductions due to the lapse of statute of limitations and settlements (5,303) (6,475) (6,635) Unrealized tax benefit, balance at December 31, $ 30,967 $ 31,475 $ 33,766 For the years ended December 31, 2020, 2019 and 2018, the Company recorded a reserve for unrecognized tax benefits, including interest and penalties, in the amounts of $35.9 million, $36.6 million and $38.9 million, respectively. All of the unrecognized tax benefits recorded as of December 31, 2020 2019 2018 tax positions in income tax expense. As of December 31, 2020, 2019 and 2018, the Company had accrued approximately $5.0 million, $5.1 million and $5.1 million, respectively, of interest and penalties related to uncertain tax positions before the benefit of the deduction for interest on state and federal returns. During the years ended December 31, 2020, 2019 and 2018, the Company recorded tax expense related to an increase in its liability for interest and penalties in the amounts of $2.2 million, $2.7 million and $2.3 million, respectively. Although unrecognized tax benefits for individual tax positions may increase or decrease during 2021, the Company expects a reduction of $6.0 million of unrecognized tax benefits during the one-year period subsequent to December 31, 2020, resulting from settlement or expiration of the statute of limitations. The Company’s United States federal income tax returns for tax years 2017 and beyond remain subject to examination by the Internal Revenue Service (“IRS”). The IRS concluded an examination of the O’Reilly consolidated 2014, 2015 and 2016 federal income tax returns in the third quarter of 2018. The Company’s state income tax returns remain subject to examination by various state authorities for tax years ranging from 2009 through 2019.

Earnings Per Share

Earnings Per Share	12 Months Ended
Earnings Per Share	Dec. 31, 2020
Earnings Per Share
Earnings per share	NOTE 17 – EARNINGS PER SHARE The following table illustrates the computation of basic and diluted earnings per share for the years ended December 31, 2020, 2019 and 2018 (in thousands, except per share data): For the Year Ended December 31, 2020 2019 2018 Numerator (basic and diluted): Net income $ 1,752,302 $ 1,391,042 $ 1,324,487 Denominator: Weighted-average common shares outstanding – basic 73,817 76,985 81,406 Effect of stock options (1) 645 803 874 Weighted-average common shares outstanding – assuming dilution 74,462 77,788 82,280 Earnings per share: Earnings per share-basic $ 23.74 $ 18.07 $ 16.27 Earnings per share-assuming dilution $ 23.53 $ 17.88 $ 16.10 Antidilutive potential common shares not included in the calculation of diluted earnings per share: Stock options (1) 291 229 567 Weighted-average exercise price per share of antidilutive stock options (1) $ 393.42 $ 368.11 $ 268.55 (1) See Note 13 for further information concerning the terms of the Company’s share-based compensation plans. Subsequent to the end of the year and through February 26, 2021, the Company repurchased 1.1 million shares of its common stock, at an average price of $447.49, for a total investment of $478.4 million.

Quarterly Results (Unaudited)

Quarterly Results (Unaudited)	12 Months Ended
Quarterly Results (Unaudited)	Dec. 31, 2020
Quarterly Results (Unaudited)
Quarterly results (unaudited)	NOTE 18 – QUARTERLY RESULTS (Unaudited) The following tables set forth certain quarterly unaudited operating data for the fiscal years ended December 31, 2020 and 2019. The unaudited quarterly information includes all adjustments, which the Company considers necessary for a fair presentation of the information shown (in thousands, except per share data): Fiscal 2020 First Second Third Fourth Quarter Quarter Quarter Quarter Sales $ 2,476,487 $ 3,091,595 $ 3,207,638 $ 2,828,773 Gross profit 1,295,906 1,637,180 1,680,468 1,472,138 Operating income 423,561 736,490 725,013 534,272 Net income 300,438 531,667 527,252 392,945 Earnings per share – basic (1) $ 4.00 $ 7.16 $ 7.13 $ 5.45 Earnings per share – assuming dilution (1) $ 3.97 $ 7.10 $ 7.07 $ 5.40 Fiscal 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Sales $ 2,410,608 $ 2,589,874 $ 2,666,528 $ 2,482,975 Gross profit 1,279,290 1,368,287 1,422,530 1,324,584 Operating income 444,786 498,074 536,363 441,503 Net income 321,152 353,681 391,293 324,916 Earnings per share – basic (1) $ 4.09 $ 4.56 $ 5.14 $ 4.29 Earnings per share – assuming dilution (1) $ 4.05 $ 4.51 $ 5.08 $ 4.25 (1) Earnings per share amounts are computed independently for each quarter and annual period. The quarterly earnings per share amounts may not sum to equal the full-year earnings per share amount. The unaudited operating data presented above should be read in conjunction with the Company’s consolidated financial statements and related notes and the other financial information included therein.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2020
Summary of Significant Accounting Policies
Nature of business	Nature of business: O’Reilly Automotive, Inc. and Subsidiaries, collectively, “O’Reilly” or the “Company,” is a specialty retailer and supplier of automotive aftermarket parts. The Company’s stores carry an extensive product line, including new and remanufactured automotive hard parts, maintenance items and various automotive accessories. As of December 31, 2020, the Company owned and operated 5,594 stores in 47 U.S. states and 22 stores in Mexico, servicing both do-it-yourself (“DIY”) and the professional service provider customers. The Company’s robust distribution system provides stores with same-day or overnight access to an extensive inventory of hard-to-find items not typically stocked in the stores of other auto parts retailers.
Segment reporting	Segment reporting: The Company is managed and operated by a single management Team reporting to the chief operating decision maker. The Company’s stores have similar characteristics, including the nature of the products and services, the type and class of customers and the methods used to distribute products and provide service to its customers and, as a whole, make up a single operating segment. The Company does not regularly prepare for review by the chief operating decision maker discrete financial information with respect to product lines, types of customers or geographic locations and as such has one reportable segment.
Principles of consolidation	Principles of consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation.
Use of estimates	Use of estimates: The preparation of the consolidated financial statements, in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”), requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.
Cash equivalents	Cash equivalents: Cash equivalents include investments with maturities of 90 days or less on the date of purchase.
Foreign Currency	Foreign Currency:
Accounts receivable	Accounts receivable:
Amounts receivable from suppliers	Amounts receivable from suppliers:
Inventory	Inventory:
Fair value of financial instruments	Fair value of financial instruments: 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.
Property and equipment	Property and equipment:
Goodwill and other intangibles	Goodwill and other intangibles:
Leases	Leases:
Impairment of long-lived assets	Impairment of long-lived assets:
Valuation of investments	Valuation of investments:
Variable Interest Entities	Variable Interest Entities:
Self-insurance reserves	Self-insurance reserves:
Warranties	Warranties:
Litigation accruals	Litigation accruals: O’Reilly is currently involved in litigation incidental to the ordinary conduct of the Company’s business. The Company accrues for litigation losses in instances where a material adverse outcome is probable and the Company is able to reasonably estimate the probable loss. The Company accrues for an estimate of material legal costs to be incurred in pending litigation matters. Although the Company cannot ascertain the amount of liability that it may incur from any of these matters, it does not currently believe that, in the aggregate, these matters, taking into account applicable insurance and accruals, will have a material adverse effect on its consolidated financial position, results of operations or cash flows in a particular quarter or annual period.
Share repurchases	Share repurchases:
Revenue recognition	Revenue recognition:
Cost of goods sold and selling, general and administrative expenses	Cost of goods sold and selling, general and administrative expenses: The following table illustrates the primary costs classified in each major expense category: Cost of goods sold, including warehouse and distribution expenses Selling, general and administrative expenses Total cost of merchandise sold, including: Payroll and benefit costs for store and corporate Team Members Freight expenses associated with acquiring merchandise and with moving merchandise inventories from the Company’s distribution centers to the stores Occupancy costs of store and corporate facilities Defective merchandise and warranty costs Depreciation and amortization related to store and corporate assets Supplier allowances and incentives, including: Vehicle expenses for store delivery services Allowances that are not reimbursements for specific, incremental and identifiable costs Self-insurance costs Cash discounts on payments to suppliers Closed store expenses Costs associated with the Company’s supply chain, including: Other administrative costs, including: Payroll and benefit costs Accounting, legal and other professional services Warehouse occupancy costs Bad debt, banking and credit card fees Transportation costs Supplies Depreciation Travel Inventory shrinkage Advertising costs
Advertising expenses	Advertising expenses:
Share-based compensation and benefit plans	Share-based compensation and benefit plans:
Pre-opening expenses	Pre-opening expenses: Costs associated with the opening of new stores, which consist primarily of payroll and occupancy costs, are charged to “Selling, general and administrative expenses” on the accompanying Consolidated Statements of Income as incurred. Costs associated with the opening of new distribution centers, which consist primarily of payroll and occupancy costs, are included in “Cost of goods sold, including warehouse and distribution expenses” on the accompanying Consolidated Statements of Income as incurred.
Interest expense	Interest expense: The Company capitalizes interest costs as a component of construction in progress, based on the weighted-average interest rates incurred on its long-term borrowings. Total interest costs capitalized for the years ended December 31, 2020, 2019 and 2018, were $10.2 million, $13.0 million and $9.1 million, respectively, which were included in “Interest expense” on the accompanying Consolidated Statements of Income. In conjunction with the issuance or amendment of long-term debt instruments, the Company incurs various costs, including debt registration fees, accounting and legal fees and underwriter and book runner fees. Debt issuance costs related to the Company’s long-term unsecured senior notes are recorded as a reduction of the principal amount of the corresponding unsecured senior notes. Debt issuance costs related to the Company’s unsecured revolving credit facility are recorded as an asset. These debt issuance costs have been deferred and are being amortized over the term of the corresponding debt instrument and the amortization expense is included in “Interest expense” on the accompanying Consolidated Statements of Income. Deferred debt issuance costs totaled $22.3 million and $18.0 million, net of accumulated amortization, as of December 31, 2020 and 2019, respectively, of which $0.6 million and $1.1 million were included in “Other assets, net” as of December 31, 2020 and 2019, respectively, with the remainder included in “Long-term debt” on the accompanying Consolidated Balance Sheets. The Company issued its long-term unsecured senior notes at a discount. The original issuance discounts on the senior notes are recorded as a reduction of the principal amount of the corresponding senior notes and are accreted over the term of the applicable senior note, with the accretion expense included in “Interest expense” on the accompanying Consolidated Statements of Income. Original issuance discounts, net of accretion, totaled $5.1 million and $3.5 million as of December 31, 2020 and 2019, respectively.
Income taxes	Income taxes:
Earnings per share	Earnings per share:
New accounting pronouncements	New accounting pronouncements: In June of 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standard Update (“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 adopted this guidance using the modified retrospective adoption method beginning with its first quarter ending March 31, 2020, and applied it to all applicable accounts. The application of this new guidance did not have a material impact on the Company’s consolidated financial condition, results of operations or cash flows. See Note 4 for further information concerning the Company’s allowance for accounts receivable.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
Summary of Significant Accounting Policies (Tables)	Dec. 31, 2020
Summary of Significant Accounting Policies
Components of self-insurance reserves	December 31, 2020 2019 Self-insurance reserves (undiscounted) $ 213,332 $ 168,397 Self-insurance reserves (discounted) 202,454 156,585

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
Fair Value Measurements (Tables)	Dec. 31, 2020
Fair Value Measurements
Valuation of marketable securities	December 31, 2020 Quoted Priced in Active Markets Significant Other Significant for Identical Instruments Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Marketable securities $ 40,411 $ — $ — $ 40,411 December 31, 2019 Quoted Prices in Active Markets Significant Other Significant for Identical Instruments Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Marketable securities $ 32,201 $ — $ — $ 32,201
Valuation of senior notes	December 31, 2020 December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior Notes $ 4,123,217 $ 4,647,595 $ 3,629,527 $ 3,881,925

Allowance For Doubtful Accoun_2

Allowance For Doubtful Accounts (Tables)	12 Months Ended
Allowance For Doubtful Accounts (Tables)	Dec. 31, 2020
Allowance for Doubtful Accounts
Changes in allowance for doubtful accounts	The following table identifies the changes in the Company’s allowance for doubtful accounts included in “Accounts receivable” on the accompanying Consolidated Balance Sheets as of December 31, 2020 and 2019 (in thousands): 2020 2019 Allowance for doubtful accounts, balance at January 1, $ 14,417 $ 13,238 Reserve accruals 5,030 8,738 Uncollectable accounts written-off (6,743) (8,282) Foreign currency translation (34) 723 Allowance for doubtful accounts, balance at December 31, $ 12,670 $ 14,417

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
Property and Equipment (Tables)	Dec. 31, 2020
Property and Equipment
Property and equipment, including original useful lives	Original Useful Lives December 31, 2020 December 31, 2019 Land $ 860,797 $ 805,556 Buildings and building improvements 15 – 39 years 2,574,969 2,378,074 Leasehold improvements 3 – 25 years 799,013 751,155 Furniture, fixtures and equipment 3 – 20 years 1,562,664 1,450,444 Vehicles 5 – 10 years 456,957 447,939 Construction in progress 305,511 358,259 Total property and equipment 6,559,911 6,191,427 Less: accumulated depreciation and amortization 2,464,993 2,243,224 Net property and equipment $ 4,094,918 $ 3,948,203

Leases (Tables)

Leases (Tables)	12 Months Ended
Leases (Tables)	Dec. 31, 2020
Leases
Summary of total lease cost	For the Year Ended December 31, 2020 2019 Operating lease cost $ 336,156 $ 320,480 Short-term operating lease cost 6,131 5,899 Variable operating lease cost 82,868 76,027 Sublease income (4,790) (4,112) Total lease cost $ 420,365 $ 398,294
Schedule of net rent expense	For the Year Ended December 31, 2018 Minimum operating lease expense $ 305,613 Contingent rents 806 Other lease related occupancy costs 14,449 Total rent expense 320,868 Less: sublease income 3,585 Net rent expense $ 317,283
Other lease related information	For the Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 334,994 $ 318,048 Right-of-use assets obtained in exchange for new operating lease liabilities 322,712 233,584
Schedule of future minimum lease payments	December 31, 2020 Related Parties Non-Related Parties Total 2021 $ 4,589 $ 317,888 $ 322,477 2022 3,848 306,134 309,982 2023 3,477 275,966 279,443 2024 1,730 246,547 248,277 2025 957 208,064 209,021 Thereafter 2,064 1,044,244 1,046,308 Total operating lease payments 16,665 2,398,843 2,415,508 Less: present value discount 1,478 372,561 374,039 Total operating lease liabilities 15,187 2,026,282 2,041,469 Less: current portion of operating lease liabilities 4,589 318,189 322,778 Operating lease liabilities, less current portion $ 10,598 $ 1,708,093 $ 1,718,691

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	12 Months Ended
Goodwill and Other Intangibles (Tables)	Dec. 31, 2020
Goodwill and Other Intangibles
Change in goodwill	2020 2019 Goodwill, balance at January 1, $ 936,814 $ 807,260 Change in goodwill related to small acquisitions 109 1,464 Foreign currency translation (5,465) 4,130 Provisional goodwill and intangibles related to Mayasa acquisition — 123,960 Final purchase price allocation of intangibles related to Mayasa acquisition (50,428) — Goodwill, balance at December 31, $ 881,030 $ 936,814
Schedule of components of intangible assets other than goodwill	December 31, 2020 December 31, 2019 Cost of Accumulated Net Cost of Accumulated Net Intangibles Amortization Intangibles Intangibles Amortization Intangibles Finite-lived intangible assets: Trade names (1) $ 8,363 $ (1,905) $ 6,458 $ — $ — $ — Non-compete agreements (2) 7,183 (2,713) 4,470 2,717 (928) 1,789 Other intangible assets (3) 12,200 (2,242) 9,958 — — — Total finite-lived intangible assets 27,746 (6,860) 20,886 2,717 (928) 1,789 Indefinite-lived intangible assets: Trade names 35,420 — 35,420 — — — Total intangible assets $ 63,166 $ (6,860) $ 56,306 $ 2,717 $ (928) $ 1,789 (1) Weighted-average remaining useful life of approximately 4.3 years as of December 31, 2020. (2) Weighted-average remaining useful life of approximately 3.6 years as of December 31, 2020. (3) Includes internally-developed software and customer relationships and has an estimated weighted-average remaining useful life of approximately 7.3 years as of December 31, 2020.
Estimated net amortization of intangibles	December 31, 2020 Amortization Expense 2021 $ 5,602 2022 5,347 2023 2,714 2024 1,397 2025 1,391 Total $ 16,451

Financing (Tables)

Financing (Tables)	12 Months Ended
Financing (Tables)	Dec. 31, 2020
Financing
Outstanding financing facilities	December 31, 2020 2019 Revolving Credit Facility $ — $ 261,000 4.875% Senior Notes due 2021 — 500,000 4.625% Senior Notes due 2021, effective interest rate of 4.643% 300,000 300,000 3.800% Senior Notes due 2022, effective interest rate of 3.845% 300,000 300,000 3.850% Senior Notes due 2023, effective interest rate of 3.851% 300,000 300,000 3.550% Senior Notes due 2026, effective interest rate of 3.570% 500,000 500,000 3.600% Senior Notes due 2027, effective interest rate of 3.619% 750,000 750,000 4.350% Senior Notes due 2028, effective interest rate of 4.383% 500,000 500,000 3.900% Senior Notes due 2029, effective interest rate of 3.901% 500,000 500,000 4.200% Senior Notes due 2030, effective interest rate of 4.205% 500,000 — 1.750% Senior Notes due 2031, effective interest rate of 1.798% 500,000 — Total principal amount of debt 4,150,000 3,911,000 Less: Unamortized discount and debt issuance costs 26,783 20,473 Total long-term debt $ 4,123,217 $ 3,890,527
Principle maturities of financing facilities	Scheduled Maturities 2021 $ 300,000 2022 300,000 2023 300,000 2024 — 2025 — Thereafter 3,250,000 Total $ 4,150,000

Warranties (Tables)

Warranties (Tables)	12 Months Ended
Warranties (Tables)	Dec. 31, 2020
Warranties
Changes in product warranty liabilities	2020 2019 Warranty liabilities, balance at January 1, $ 61,069 $ 52,220 Warranty claims (109,684) (99,267) Warranty accruals 114,526 108,099 Foreign currency translation (25) 17 Warranty liabilities, balance at December 31, $ 65,886 $ 61,069

Share Repurchase Program (Table

Share Repurchase Program (Tables)	12 Months Ended
Share Repurchase Program (Tables)	Dec. 31, 2020
Share Repurchase Program
Schedule of shares repurchased	For the Year Ended December 31, 2020 2019 Shares repurchased 4,832 3,877 Average price per share $ 431.93 $ 369.55 Total investment $ 2,087,146 $ 1,432,752

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	12 Months Ended
Accumulated Other Comprehensive Income (Loss) (Tables)	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss)
Summary of activity for changes in accumulated other comprehensive income (loss)	Foreign Total Accumulated Other Currency (1) Comprehensive Income (Loss) Accumulated other comprehensive income, balance at December 31, 2018 $ — $ — Change in accumulated other comprehensive income 4,890 4,890 Accumulated other comprehensive income, balance at December 31, 2019 $ 4,890 $ 4,890 Change in accumulated other comprehensive loss (7,045) (7,045) Accumulated other comprehensive loss, balance at December 31, 2020 $ (2,155) $ (2,155) (1) Foreign currency is not shown net of additional U.S. tax, as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested.

Revenue (Tables)

Revenue (Tables)	12 Months Ended
Revenue (Tables)	Dec. 31, 2020
Revenue
Disaggregation of revenue	For the Year Ended December 31, 2020 2019 2018 Sales to do-it-yourself customers $ 6,684,183 $ 5,612,390 $ 5,351,035 Sales to professional service provider customers 4,647,189 4,369,541 4,035,898 Other sales and sales adjustments 273,121 168,054 149,495 Total sales $ 11,604,493 $ 10,149,985 $ 9,536,428

Share-Based Compensation and _2

Share-Based Compensation and Benefit Plans (Tables)	12 Months Ended
Share-Based Compensation and Benefit Plans (Tables)	Dec. 31, 2020
Share-Based Compensation and Benefit Plans
Summary of shares authorized and available for future issuance under compensation and benefit plans	December 31, 2020 Total Shares Authorized for Shares Available for Future Plans Issuance under the Plans Issuance under the Plans Incentive Plans 34,650 5,592 Employee Stock Purchase Plan 4,250 506 Profit Sharing and Savings Plan 4,200 349
Restricted stock [Member]
Share-Based Compensation and Benefit Plans
Summary of activity of share-based compensation and benefit plans	For the Year Ended December 31, 2020 2019 2018 Compensation expense for restricted shares awarded $ 1,488 $ 1,387 $ 1,370 Income tax benefit from compensation expense related to restricted shares $ 373 $ 341 $ 340 Total fair value of restricted shares at vest date $ 1,591 $ 1,633 $ 1,230 Shares awarded under the plans 4 4 5 Weighted-average grant-date fair value of shares awarded under the plans $ 412.67 $ 355.91 $ 263.89
Employee stock purchase plan [Member]
Share-Based Compensation and Benefit Plans
Summary of ESPP plan activity	For the Year Ended December 31, 2020 2019 2018 Compensation expense for shares issued under the ESPP $ 2,824 $ 2,490 $ 2,285 Income tax benefit from compensation expense related to shares issued under the ESPP $ 708 $ 612 $ 566 Shares issued under the ESPP 45 43 53 Weighted-average price of shares issued under the ESPP $ 353.04 $ 329.69 $ 245.26
Employee [Member] \| Restricted stock [Member]
Share-Based Compensation and Benefit Plans
Summary of restricted stock	Weighted-Average Grant-Date Shares Fair Value Non-vested at December 31, 2019 4 $ 301.40 Granted during the period 2 419.88 Vested during the period (1) (2) 289.03 Forfeited during the period — — Non-vested at December 31, 2020 4 $ 358.58
Director [Member] \| Restricted stock [Member]
Share-Based Compensation and Benefit Plans
Summary of restricted stock	Weighted-Average Grant-Date Shares Fair Value Non-vested at December 31, 2019 4 $ 312.96 Granted during the period 2 407.12 Vested during the period (2) 293.72 Forfeited during the period — — Non-vested at December 31, 2020 4 $ 371.46
Stock option [Member]
Share-Based Compensation and Benefit Plans
Black-Scholes option pricing model	December 31, 2020 2019 2018 Risk free interest rate 0.86 % 2.26 % 2.63 % Expected life 5.9 Years 5.7 Years 5.9 Years Expected volatility 26.4 % 25.1 % 24.0 % Expected dividend yield — % — % — %
Summary of activity of share-based compensation and benefit plans	For the Year Ended December 31, 2020 2019 2018 Compensation expense for stock options awarded (in thousands) $ 18,435 $ 18,044 $ 16,521 Income tax benefit from compensation expense related to stock options (in thousands) 4,620 4,436 4,093 Total intrinsic value of stock options exercised (in thousands) 79,451 117,489 156,327 Cash received from exercise of stock options (in thousands) 46,282 46,106 61,403 Weighted-average grant-date fair value of options awarded $ 106.76 $ 105.37 $ 76.57 Weighted-average remaining contractual life of exercisable options (in years) 4.5 4.6 4.4
Stock option [Member] \| Employee stock option [Member]
Share-Based Compensation and Benefit Plans
Summary of stock options	Average Aggregate Shares Weighted- Average Remaining Intrinsic Value (in thousands) Exercise Price Contractual Terms (in thousands) Outstanding at December 31, 2019 1,635 $ 218.10 Granted 175 394.79 Exercised (288) 160.67 Forfeited or expired (22) 302.55 Outstanding at December 31, 2020 1,500 $ 248.52 5.7 Years $ 306,095 Vested or expected to vest at December 31, 2020 1,470 $ 246.44 5.7 Years $ 302,927 Exercisable at December 31, 2020 988 $ 202.19 4.5 Years $ 247,419

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Dec. 31, 2020
Income Taxes
Schedule of components of income from continuing operations before income taxes	For the Year Ended December 31, 2020 2019 2018 Domestic $ 2,260,385 $ 1,790,207 $ 1,694,087 International 6,020 122 — Income before income taxes $ 2,266,405 $ 1,790,329 $ 1,694,087
Schedule of components of the provision for income taxes	For the Year Ended December 31, 2020 2019 2018 Current: Federal income tax expense $ 401,331 $ 315,061 $ 289,953 State income tax expense 97,085 62,795 59,487 International income tax expense 3,306 273 — Total current 501,722 378,129 349,440 Deferred: Federal income tax expense 16,749 19,367 16,309 State income tax (benefit) expense (2,865) 2,027 3,851 International income tax benefit (1,503) (236) — Total deferred 12,381 21,158 20,160 Net income tax expense $ 514,103 $ 399,287 $ 369,600
Reconciliation of the provision for income taxes to the amounts computed at the federal statutory rate	For the Year Ended December 31, 2020 2019 2018 Federal income taxes at statutory rate $ 474,681 $ 375,942 $ 355,758 State income taxes, net of federal tax benefit 76,810 54,739 56,345 Excess tax benefit from share-based compensation (16,918) (25,992) (34,703) Revaluation of deferred tax liability — — (1,262) Benefit from investment in renewable energy tax credits (17,904) (875) (2,037) Other items, net (2,566) (4,527) (4,501) Total provision for income taxes $ 514,103 $ 399,287 $ 369,600
Schedule of deferred tax assets and liabilities	December 31, 2020 2019 Deferred tax assets: Allowance for doubtful accounts $ 1,574 $ 2,008 Tax credits 1,444 3,417 Other accruals 143,387 97,189 Operating lease liability 513,134 494,093 Other 16,594 15,732 Total deferred tax assets 676,133 612,439 Deferred tax liabilities: Inventories 79,326 65,346 Property and equipment 194,000 162,613 Operating lease asset 498,042 479,821 Other 60,664 37,939 Total deferred tax liabilities 832,032 745,719 Net deferred tax liabilities $ (155,899) $ (133,280)
Summary of changes in gross amount of unrecognized tax benefits, excluding interest and penalties	2020 2019 2018 Unrealized tax benefit, balance at January 1, $ 31,475 $ 33,766 $ 35,388 Additions based on tax positions related to the current year 4,795 4,627 3,550 Additions based on tax positions related to prior years — — 4,255 Payments related to items settled with taxing authorities — (443) (2,792) Reductions due to the lapse of statute of limitations and settlements (5,303) (6,475) (6,635) Unrealized tax benefit, balance at December 31, $ 30,967 $ 31,475 $ 33,766

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
Earnings Per Share (Tables)	Dec. 31, 2020
Earnings Per Share
Computation of basic and diluted earnings per share	For the Year Ended December 31, 2020 2019 2018 Numerator (basic and diluted): Net income $ 1,752,302 $ 1,391,042 $ 1,324,487 Denominator: Weighted-average common shares outstanding – basic 73,817 76,985 81,406 Effect of stock options (1) 645 803 874 Weighted-average common shares outstanding – assuming dilution 74,462 77,788 82,280 Earnings per share: Earnings per share-basic $ 23.74 $ 18.07 $ 16.27 Earnings per share-assuming dilution $ 23.53 $ 17.88 $ 16.10 Antidilutive potential common shares not included in the calculation of diluted earnings per share: Stock options (1) 291 229 567 Weighted-average exercise price per share of antidilutive stock options (1) $ 393.42 $ 368.11 $ 268.55 (1) See Note 13 for further information concerning the terms of the Company’s share-based compensation plans.

Quarterly Results (Unaudited) (

Quarterly Results (Unaudited) (Tables)	12 Months Ended
Quarterly Results (Unaudited) (Tables)	Dec. 31, 2020
Quarterly Results (Unaudited)
Quarterly operating data (unaudited)	Fiscal 2020 First Second Third Fourth Quarter Quarter Quarter Quarter Sales $ 2,476,487 $ 3,091,595 $ 3,207,638 $ 2,828,773 Gross profit 1,295,906 1,637,180 1,680,468 1,472,138 Operating income 423,561 736,490 725,013 534,272 Net income 300,438 531,667 527,252 392,945 Earnings per share – basic (1) $ 4.00 $ 7.16 $ 7.13 $ 5.45 Earnings per share – assuming dilution (1) $ 3.97 $ 7.10 $ 7.07 $ 5.40 Fiscal 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Sales $ 2,410,608 $ 2,589,874 $ 2,666,528 $ 2,482,975 Gross profit 1,279,290 1,368,287 1,422,530 1,324,584 Operating income 444,786 498,074 536,363 441,503 Net income 321,152 353,681 391,293 324,916 Earnings per share – basic (1) $ 4.09 $ 4.56 $ 5.14 $ 4.29 Earnings per share – assuming dilution (1) $ 4.05 $ 4.51 $ 5.08 $ 4.25 (1) Earnings per share amounts are computed independently for each quarter and annual period. The quarterly earnings per share amounts may not sum to equal the full-year earnings per share amount.

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)segmentstatestore	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Summary of Significant Accounting Policies
Number of reportable segments \| segment	1
Accounts receivable due from employees to the Company	$ 900	$ 900
Allowance for doubtful supplier receivables	0	0
Replacement cost of inventory	3,670,000	3,470,000
LIFO inventory value in excess of replacement cost of inventory	55,800	31,000
Goodwill impairment	0	0
Impairment of long-lived assets	3,400	1,900	$ 11,400
Self-insurance reserves, current	109,199	79,079
Equity method investment in VIEs, net	19,500
Investment tax credit amount	170,500	8,500	19,400
Advertising expense, net	73,800	79,300	81,400
Total interest costs capitalized	10,200	13,000	$ 9,100
Deferred debt issuance costs, net of amortization	22,300	18,000
Original issuance discounts, net of accretion	5,100	3,500
Valuation allowance for deferred tax assets	0	0
Other assets
Summary of Significant Accounting Policies
Deferred debt issuance costs, net of amortization	$ 600	$ 1,100
U.S.
Summary of Significant Accounting Policies
Number of stores \| store	5,594
Number of states, in which the Company operates \| state	47
Mexico
Summary of Significant Accounting Policies
Number of stores \| store	22
Loyalty Program Points [Member] \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Summary of Significant Accounting Policies
Deferred revenue, period expect to be recognized within	12 months
Loyalty Program Coupon [Member] \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Summary of Significant Accounting Policies
Deferred revenue, period expect to be recognized within	3 months

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Components of Self-Insurance Reserves) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies
Self-insurance reserves (undiscounted)	$ 213,332	$ 168,397
Self-insurance reserves (discounted)	$ 202,454	$ 156,585

Business Combination (Narrative

Business Combination (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Nov. 29, 2019
Business Combination
Provisional goodwill and intangibles related to Mayasa acquisition	$ 0	$ 123,960
Finite lived intangible assets acquired			$ 25,500
Trade names and trademarks [Member]
Business Combination
Indefinite lived intangible assets acquired			36,000
Goodwill and acquisition intangibles [Member]
Business Combination
Provisional goodwill and intangibles related to Mayasa acquisition		$ 128,100
Goodwill [Member]
Business Combination
Residual goodwill			$ 73,400

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair Value Measurements
Increase in fair value of marketable securities	$ 5.4	$ 5.8
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	Dec. 31, 2020	Dec. 31, 2019
Fair Value Measurements
Estimated fair value of marketable securities	$ 40,411	$ 32,201
Fair value, inputs, Level 1 [Member]
Fair Value Measurements
Estimated fair value of marketable securities	$ 40,411	$ 32,201

Fair Value Measurements (Fair_2

Fair Value Measurements (Fair Value of Senior Notes) (Details) - Fair value, inputs, Level 2 [Member] - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Fair Value Measurements
Carrying amount of senior notes	$ 4,123,217	$ 3,629,527
Estimated fair value of senior notes	$ 4,647,595	$ 3,881,925

Allowance for Doubtful Accoun_3

Allowance for Doubtful Accounts (Changes in Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Allowance for Doubtful Accounts
Allowance for doubtful accounts, balance at January 1,	$ 14,417	$ 13,238
Reserve accruals	5,030	8,738
Uncollectable accounts written-off	(6,743)	(8,282)
Foreign currency translation	(34)	723
Allowance for doubtful accounts, balance at December 31,	$ 12,670	$ 14,417

Property and Equipment (Narrati

Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property and Equipment
Depreciation and amortization expense	$ 314,635	$ 270,875	$ 258,937
Impairment of long-lived assets	3,400	1,900	11,400
Property and equipment [Member]
Property and Equipment
Depreciation and amortization expense	$ 303,000	$ 267,300	$ 246,000

Property and Equipment (Propert

Property and Equipment (Property and Equipment, Including Original Useful Lives) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property and Equipment
Property and equipment	$ 6,559,911	$ 6,191,427
Less: accumulated depreciation and amortization	2,464,993	2,243,224
Net property and equipment	4,094,918	3,948,203
Land [Member]
Property and Equipment
Property and equipment	860,797	805,556
Buildings and building improvements [Member]
Property and Equipment
Property and equipment	$ 2,574,969	2,378,074
Buildings and building improvements [Member] \| Minimum [Member]
Property and Equipment
Property and equipment, useful lives	15 years
Buildings and building improvements [Member] \| Maximum [Member]
Property and Equipment
Property and equipment, useful lives	39 years
Leasehold improvements [Member]
Property and Equipment
Property and equipment	$ 799,013	751,155
Leasehold improvements [Member] \| Minimum [Member]
Property and Equipment
Property and equipment, useful lives	3 years
Leasehold improvements [Member] \| Maximum [Member]
Property and Equipment
Property and equipment, useful lives	25 years
Furniture, fixtures and equipment [Member]
Property and Equipment
Property and equipment	$ 1,562,664	1,450,444
Furniture, fixtures and equipment [Member] \| Minimum [Member]
Property and Equipment
Property and equipment, useful lives	3 years
Furniture, fixtures and equipment [Member] \| Maximum [Member]
Property and Equipment
Property and equipment, useful lives	20 years
Vehicles [Member]
Property and Equipment
Property and equipment	$ 456,957	447,939
Vehicles [Member] \| Minimum [Member]
Property and Equipment
Property and equipment, useful lives	5 years
Vehicles [Member] \| Maximum [Member]
Property and Equipment
Property and equipment, useful lives	10 years
Construction in Progress [Member]
Property and Equipment
Property and equipment	$ 305,511	$ 358,259

Leases (Narrative) (Details)

Leases (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
Leases (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Leases
Sublease income	$ 4,790	$ 4,112
Weighted-average remaining lease term - operating leases	10 years
Weighted-average discount rate - operating leases	4.00%
Minimum [Member] \| Sublease
Leases
Future minimum sublease income under non-cancelable subleases	$ 17,200

Leases (Summary of Total Lease

Leases (Summary of Total Lease Cost) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases
Operating lease cost	$ 336,156	$ 320,480
Short-term operating lease cost	6,131	5,899
Variable operating lease cost	82,868	76,027
Sublease income	(4,790)	(4,112)
Total lease cost	$ 420,365	$ 398,294

Leases (Net Rent Expense) (Deta

Leases (Net Rent Expense) (Details) $ in Thousands	12 Months Ended
Leases (Net Rent Expense) (Details) $ in Thousands	Dec. 31, 2018USD ($)
Rent expense
Minimum operating lease expense	$ 305,613
Contingent rents	806
Other lease related occupancy costs	14,449
Total rent expense	320,868
Less: sublease income	3,585
Net rent expense	$ 317,283

Leases (Supplemental Cash Flow

Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases
Cash paid for amounts included in the measurement of operating lease liabilities, operating cash flows from operating leases	$ 334,994	$ 318,048
Right-of-use asset obtained in exchange for new operating lease liability	$ 322,712	$ 233,584

Leases (Future Minimum Lease Pa

Leases (Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Leases
2021	$ 322,477
2022	309,982
2023	279,443
2024	248,277
2025	209,021
Thereafter	1,046,308
Total operating lease payments	2,415,508
Less: present value discount	374,039
Total operating lease liabilities	2,041,469
Less: current portion of operating lease liabilities	322,778	$ 316,061
Operating lease liabilities, less current portion	1,718,691	$ 1,655,297
Related Parties
Leases
2021	4,589
2022	3,848
2023	3,477
2024	1,730
2025	957
Thereafter	2,064
Total operating lease payments	16,665
Less: present value discount	1,478
Total operating lease liabilities	15,187
Less: current portion of operating lease liabilities	4,589
Operating lease liabilities, less current portion	10,598
Non Related Parties
Leases
2021	317,888
2022	306,134
2023	275,966
2024	246,547
2025	208,064
Thereafter	1,044,244
Total operating lease payments	2,398,843
Less: present value discount	372,561
Total operating lease liabilities	2,026,282
Less: current portion of operating lease liabilities	318,189
Operating lease liabilities, less current portion	$ 1,708,093

Goodwill and Other Intangible_2

Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Nov. 29, 2019
Goodwill and Other Intangibles
Goodwill impairment	$ 0	$ 0
Provisional goodwill and intangibles related to Mayasa acquisition	0	123,960
Amortization expense of amortizable intangible assets	5,300	300	$ 1,400
Unfavorable Leases [Member]
Goodwill and Other Intangibles
Amortization benefit of unfavorable operating leases			$ 900
Goodwill and acquisition intangibles [Member]
Goodwill and Other Intangibles
Provisional goodwill and intangibles related to Mayasa acquisition		128,100
Goodwill [Member]
Goodwill and Other Intangibles
Residual goodwill				$ 73,400
Mayasa [Member]
Goodwill and Other Intangibles
Final purchase price allocation of intangibles related to Mayasa acquisition				61,500
Mayasa [Member] \| Trade names [Member]
Goodwill and Other Intangibles
Indefinite-lived intangible assets acquired	36,000
Mayasa [Member] \| Non-compete agreements [Member]
Goodwill and Other Intangibles
Finite-lived intangible assets	4,700	100
Mayasa [Member] \| Trade names [Member]
Goodwill and Other Intangibles
Finite-lived intangible assets	8,500
Mayasa [Member] \| Other intangible assets [Member]
Goodwill and Other Intangibles
Finite-lived intangible assets	$ 12,400
Mayasa [Member] \| Goodwill and acquisition intangibles [Member]
Goodwill and Other Intangibles
Provisional goodwill and intangibles related to Mayasa acquisition		$ 128,100
Mayasa [Member] \| Goodwill [Member]
Goodwill and Other Intangibles
Residual goodwill				$ 73,400

Goodwill and Other Intangible_3

Goodwill and Other Intangibles (Changes in Net Goodwill) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Other Intangibles
Goodwill, beginning balance	$ 936,814	$ 807,260
Change in goodwill related to small acquisitions	109	1,464
Foreign currency translation	(5,465)	4,130
Provisional goodwill and intangibles related to Mayasa acquisition	0	123,960
Final purchase price allocation of intangibles related to Mayasa acquisition	(50,428)	0
Goodwill, ending balance	$ 881,030	$ 936,814

Goodwill and Other Intangible_4

Goodwill and Other Intangibles (Intangibles Other Than Goodwill) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Finite-lived intangible assets
Finite-lived intangibles, cost of intangibles	$ 27,746	$ 2,717
Finite-lived intangibles, accumulated amortization	(6,860)	(928)
Finite-lived intangibles, net intangibles	20,886	1,789
Indefinite-lived intangible assets
Total intangible assets, excluding goodwill	63,166	2,717
Net amortizable intangible assets	56,306	1,789
Trade names [Member]
Indefinite-lived intangible assets
Indefinite-lived intangible assets, other than goodwill	35,420	0
Trade names [Member]
Finite-lived intangible assets
Finite-lived intangibles, cost of intangibles	8,363	0
Finite-lived intangibles, accumulated amortization	(1,905)	0
Finite-lived intangibles, net intangibles	$ 6,458	0
Indefinite-lived intangible assets
Weighted-average remaining useful life of favorable leases	4 years 3 months 18 days
Non-compete agreements [Member]
Finite-lived intangible assets
Finite-lived intangibles, cost of intangibles	$ 7,183	2,717
Finite-lived intangibles, accumulated amortization	(2,713)	(928)
Finite-lived intangibles, net intangibles	$ 4,470	1,789
Indefinite-lived intangible assets
Weighted-average remaining useful life of favorable leases	3 years 7 months 6 days
Other intangible assets [Member]
Finite-lived intangible assets
Finite-lived intangibles, cost of intangibles	$ 12,200	0
Finite-lived intangibles, accumulated amortization	(2,242)	0
Finite-lived intangibles, net intangibles	$ 9,958	$ 0
Indefinite-lived intangible assets
Weighted-average remaining useful life of favorable leases	7 years 3 months 18 days

Goodwill and Other Intangible_5

Goodwill and Other Intangibles (Estimated Amortization of Intangibles) (Details) $ in Thousands	Dec. 31, 2020USD ($)
Goodwill and Other Intangibles
2021 amortization expense	$ 5,602
2022 amortization expense	5,347
2023 amortization expense	2,714
2024 amortization expense	1,397
2025 amortization expense	1,391
Total amortization expense	$ 16,451

Financing (Unsecured Revolving

Financing (Unsecured Revolving Credit Facility) (Narrative) (Details) - Revolving Credit Facility [Member] - Unsecured debt [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Financing
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	$ 66.4	$ 38.9
Line of credit facility fee percentage	0.10%
Spread over Alternate Base rate [Member]
Financing
Line of credit current interest rate	0.00%
Spread over Eurodollar Revolving rate [Member]
Financing
Line of credit current interest rate	0.90%
Through maturity [Member]
Financing
Minimum debt instrument consolidated fixed charge coverage ratio covenant	2.50
Maximum debt instrument consolidated leverage ratio covenant	3.50
Letter of credit [Member]
Financing
Line of credit facility sublimit	$ 200
Swing line revolver [Member]
Financing
Line of credit facility sublimit	$ 75

Financing (Senior Notes) (Narra

Financing (Senior Notes) (Narrative) (Details) $ in Thousands	Oct. 14, 2020USD ($)	Sep. 23, 2020USD ($)D	Mar. 27, 2020USD ($)D	Dec. 31, 2020USD ($)D	Dec. 31, 2019USD ($)
Senior notes [Member]
Financing
Face amount of senior notes				$ 4,200,000
Number of days in annual interest calculation period \| D				360
Minimum [Member] \| Senior notes [Member]
Financing
Interest rate of senior notes				1.75%
Maximum [Member] \| Senior notes [Member]
Financing
Interest rate of senior notes				4.625%
4.200% Senior Notes due 2030 [Member]
Financing
Face amount of senior notes			$ 500,000
Interest rate of senior notes			4.20%
Percentage of face value of debt instrument			99.959%
Number of days in annual interest calculation period \| D			360
4.200% Senior Notes due 2030 [Member] \| Senior notes [Member]
Financing
Face amount of senior notes				$ 500,000	$ 0
Interest rate of senior notes				4.20%
1.750% Senior Notes due 2031 [Member]
Financing
Face amount of senior notes		$ 500,000
Interest rate of senior notes		1.75%
Percentage of face value of debt instrument		99.544%
Number of days in annual interest calculation period \| D		360
1.750% Senior Notes due 2031 [Member] \| Senior notes [Member]
Financing
Face amount of senior notes				$ 500,000	0
Interest rate of senior notes				1.75%
4.875% Senior Notes due 2021 [Member]
Financing
Face amount of senior notes	$ 500,000
Debt redemption price	500,000
Loss on debt extinguishment	$ (200)
4.875% Senior Notes due 2021 [Member] \| Senior notes [Member]
Financing
Face amount of senior notes				$ 0	$ 500,000
Interest rate of senior notes					4.875%
3.900% Senior Notes due 2029 [Member] \| Senior notes [Member]
Financing
Face amount of senior notes				$ 500,000	$ 500,000
Interest rate of senior notes				3.90%	3.90%
4.625% Senior Notes due 2021 [Member] \| Senior notes [Member]
Financing
Interest rate of senior notes				4.625%	4.625%
4.625% Senior Notes due 2021 [Member] \| Senior notes [Member] \| Long-term Debt [Member]
Financing
Face amount of senior notes				$ 300,000	$ 300,000

Financing (Outstanding Financin

Financing (Outstanding Financing Facilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Oct. 14, 2020	Sep. 23, 2020	Mar. 27, 2020	Dec. 31, 2019
Financing
Total principal amount of debt	$ 4,150,000				$ 3,911,000
Less: Unamortized discount and debt issuance costs	26,783				20,473
Senior notes, unamortized discount	5,100				3,500
Senior notes, unamortized debt issuance costs	22,300				18,000
Total long-term debt	4,123,217				3,890,527
4.875% Senior Notes due 2021 [Member]
Financing
Senior notes, principal amount		$ 500,000
4.200% Senior Notes due 2030 [Member]
Financing
Senior notes, principal amount				$ 500,000
Interest rate of senior notes				4.20%
1.750% Senior Notes due 2031 [Member]
Financing
Senior notes, principal amount			$ 500,000
Interest rate of senior notes			1.75%
Revolving Credit Facility [Member]
Financing
Unsecured revolving credit facility	0				261,000
Senior notes [Member]
Financing
Senior notes, principal amount	4,200,000
Senior notes [Member] \| 4.875% Senior Notes due 2021 [Member]
Financing
Senior notes, principal amount	$ 0				$ 500,000
Interest rate of senior notes					4.875%
Senior notes [Member] \| 4.625% Senior Notes due 2021 [Member]
Financing
Interest rate of senior notes	4.625%				4.625%
Senior notes, effective interest rate	4.643%
Senior notes [Member] \| 3.800% Senior Notes due 2022 [Member]
Financing
Senior notes, principal amount	$ 300,000				$ 300,000
Interest rate of senior notes	3.80%				3.80%
Senior notes, effective interest rate	3.845%
Senior notes [Member] \| 3.850% Senior Notes due 2023 [Member]
Financing
Senior notes, principal amount	$ 300,000				$ 300,000
Interest rate of senior notes	3.85%				3.85%
Senior notes, effective interest rate	3.851%
Senior notes [Member] \| 3.550% Senior Notes due 2026 [Member]
Financing
Senior notes, principal amount	$ 500,000				$ 500,000
Interest rate of senior notes	3.55%				3.55%
Senior notes, effective interest rate	3.57%
Senior notes [Member] \| 3.600% Senior Notes due 2027 [Member]
Financing
Senior notes, principal amount	$ 750,000				$ 750,000
Interest rate of senior notes	3.60%				3.60%
Senior notes, effective interest rate	3.619%
Senior notes [Member] \| 4.350% Senior Notes due 2028 [Member]
Financing
Senior notes, principal amount	$ 500,000				$ 500,000
Interest rate of senior notes	4.35%				4.35%
Senior notes, effective interest rate	4.383%
Senior notes [Member] \| 3.900% Senior Notes due 2029 [Member]
Financing
Senior notes, principal amount	$ 500,000				$ 500,000
Interest rate of senior notes	3.90%				3.90%
Senior notes, effective interest rate	3.901%
Senior notes [Member] \| 4.200% Senior Notes due 2030 [Member]
Financing
Senior notes, principal amount	$ 500,000				$ 0
Interest rate of senior notes	4.20%
Senior notes, effective interest rate	4.205%
Senior notes [Member] \| 1.750% Senior Notes due 2031 [Member]
Financing
Senior notes, principal amount	$ 500,000				$ 0
Interest rate of senior notes	1.75%
Senior notes, effective interest rate	1.798%

Financing (Principal Maturities

Financing (Principal Maturities of Financing Facilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Maturities of financing facilities
2021	$ 300,000
2022	300,000
2023	300,000
2024	0
2025	0
Thereafter	3,250,000
Total principal amount of debt	$ 4,150,000	$ 3,911,000

Warranties (Product Warranty Li

Warranties (Product Warranty Liabilities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Warranties
Warranty liabilities, balance at January 1	$ 61,069	$ 52,220
Warranty claims	(109,684)	(99,267)
Warranty accruals	114,526	108,099
Foreign currency translation	(25)	17
Warranty liabilities, balance at December 31,	$ 65,886	$ 61,069

Share Repurchase Program (Narra

Share Repurchase Program (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Feb. 10, 2021	Oct. 28, 2020	Feb. 05, 2020	Feb. 26, 2021	Dec. 31, 2020	Dec. 31, 2019	Feb. 26, 2021
Share Repurchase Program
Increase in authorized amount		$ 1,000,000	$ 1,000,000
Authorization effective period		3 years	3 years
Remaining balance under share repurchase program					$ 481,500
Common stock repurchased, shares					4,832	3,877
Common stock repurchased, average price per share					$ 431.93	$ 369.55
Common stock repurchased, value					$ 2,087,146	$ 1,432,752
Subsequent event [Member]
Share Repurchase Program
Increase in authorized amount	$ 1,000,000
Cumulative authorized amount	$ 15,800,000
Authorization effective period	3 years
Common stock repurchased, shares				1,100			82,100
Common stock repurchased, average price per share				$ 447.49			$ 179.65
Common stock repurchased, value				$ 478,400			$ 14,700,000

Share Repurchase Program (Sched

Share Repurchase Program (Schedule of Shares Repurchased) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share Repurchase Program
Shares repurchased	4,832	3,877
Average price per share	$ 431.93	$ 369.55
Total investment	$ 2,087,146	$ 1,432,752

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Balance at beginning of period	$ 397,340	$ 353,667	$ 653,046
Change in accumulated other comprehensive income (loss)	(7,045)	4,890	0
Balance at end of period	140,258	397,340	353,667
Accumulated other comprehensive income (loss) [Member]
Balance at beginning of period	4,890	0	0
Change in accumulated other comprehensive income (loss)	(7,045)	4,890
Balance at end of period	(2,155)	4,890	0
Foreign currency [Member]
Balance at beginning of period	4,890	0
Change in accumulated other comprehensive income (loss)	(7,045)	4,890
Balance at end of period	$ (2,155)	$ 4,890	$ 0

Revenue (Narrative) (Details)

Revenue (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Revenue (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue
Revenue recognized	$ 2,828,773	$ 3,207,638	$ 3,091,595	$ 2,476,487	$ 2,482,975	$ 2,666,528	$ 2,589,874	$ 2,410,608	$ 11,604,493	$ 10,149,985	$ 9,536,428
Loyalty program [Member]
Revenue
Deferred revenue liability	$ 4,500				$ 4,100				4,500	4,100
Revenue recognized									$ 14,400	$ 15,600	$ 15,900

Revenue (Disaggregation of Reve

Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue
Sales	$ 2,828,773	$ 3,207,638	$ 3,091,595	$ 2,476,487	$ 2,482,975	$ 2,666,528	$ 2,589,874	$ 2,410,608	$ 11,604,493	$ 10,149,985	$ 9,536,428
DIY customer [Member]
Disaggregation of Revenue
Sales									6,684,183	5,612,390	5,351,035
Professional service provider customer [Member]
Disaggregation of Revenue
Sales									4,647,189	4,369,541	4,035,898
Other sales and sales adjustments [Member]
Disaggregation of Revenue
Sales									$ 273,121	$ 168,054	$ 149,495

Share-Based Compensation and _3

Share-Based Compensation and Benefit Plans (Stock Option) (Narrative) (Details) - Stock option [Member] $ in Millions	12 Months Ended
	Dec. 31, 2020USD ($)
Share-Based Compensation and Benefit Plans
Remaining unrecognized compensation expense	$ 32.6
Weighted-average period for cost recognition	2 years 4 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	25.00%

Share-Based Compensation and _4

Share-Based Compensation and Benefit Plans (Restricted Stock) (Narrative) (Details) - Restricted stock [Member] $ in Millions	12 Months Ended
	Dec. 31, 2020USD ($)
Share-Based Compensation and Benefit Plans
Remaining unrecognized compensation expense	$ 0.4
Weighted-average period for cost recognition	6 months
Employee [Member]
Share-Based Compensation and Benefit Plans
Vesting period	3 years
Director [Member]
Share-Based Compensation and Benefit Plans
Vesting period	1 year

Share-Based Compensation and _5

Share-Based Compensation and Benefit Plans (Employee Stock Purchase Plan) (Narrative) (Details)	12 Months Ended
	Dec. 31, 2020
Employee stock purchase plan [Member]
Share-Based Compensation and Benefit Plans
Employee stock purchase plan stock purchase percentage	85.00%

Share-Based Compensation and _6

Share-Based Compensation and Benefit Plans (Profit Sharing and Savings Plan) (Narrative) (Detail) - Profit sharing and savings plan [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-Based Compensation and Benefit Plans
Profit sharing and savings plan, employer discretionary contribution	$ 0	$ 0	$ 0
Profit sharing and savings plan, cost recognized	$ 31	$ 27.5	$ 24.8
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 _7

Share-Based Compensation and Benefit Plans (Nonqualified Deferred Compensation Plan) (Narrative) (Details) - Nonqualified Deferred Compensation Plan [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-Based Compensation and Benefit Plans
Deferred compensation plan obligation	$ 40.4	$ 32.2
Deferred compensation plan cost recognized	$ 0.2	$ 0.2	$ 0.1

Share-Based Compensation and _8

Share-Based Compensation and Benefit Plans (Stock Appreciation Rights) (Narrative) (Details) - Stock appreciation rights (SARs) [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-Based Compensation and Benefit Plans
Stock appreciation rights expiration period	10 years
Stock appreciation rights vesting rate per year	25.00%
Vesting period	4 years
Stock appreciation rights outstanding	8,149	8,009
Stock appreciation rights granted during the period, units	1,011
Liability for compensation to be paid for redeemed stock appreciation rights	$ 0.3	$ 0.1
Compensation expense for share-based compensation	$ 0.3	$ 1

Share-Based Compensation and _9

Share-Based Compensation and Benefit Plans (Summary of Shares Authorized and Available for Future Issuance Under Benefit and Compensation Plans) (Details) shares in Thousands	Dec. 31, 2020shares
Profit sharing and savings plan [Member]
Share-Based Compensation and Benefit Plans
Shares authorized for issuance under compensation and benefit plans	4,200
Shares available for future issuance under compensation and benefit plans	349
Employee stock purchase plan [Member]
Share-Based Compensation and Benefit Plans
Shares authorized for issuance under compensation and benefit plans	4,250
Shares available for future issuance under compensation and benefit plans	506
Stock option [Member] \| Restricted stock [Member]
Share-Based Compensation and Benefit Plans
Shares authorized for issuance under compensation and benefit plans	34,650
Shares available for future issuance under compensation and benefit plans	5,592

Share-Based Compensation and_10

Share-Based Compensation and Benefit Plans (Summary of Stock Options) (Details) - Stock option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-Based Compensation and Benefit Plans
Exercisable at the end of the year, average remaining contractual term	4 years 6 months	4 years 7 months 6 days	4 years 4 months 24 days
Employee stock option [Member]
Share-Based Compensation and Benefit Plans
Outstanding at December 31, 2019, shares	1,635
Outstanding at December 31, 2019, weighted-average exercise price	$ 218.10
Granted, shares	175
Granted, weighted-average exercise price	$ 394.79
Exercised, shares	(288)
Exercised, weighted-average exercise price	$ 160.67
Forfeited or expired, shares	(22)
Forfeited or expired, weighted-average exercise price	$ 302.55
Outstanding at December 31, 2020, shares	1,500	1,635
Outstanding at December 31, 2020, weighted-average exercise price	$ 248.52	$ 218.10
Outstanding at the end of the year, average remaining contractual term	5 years 8 months 12 days
Outstanding at the end of the year, aggregate intrinsic value	$ 306,095
Vested or expected to vest at the end of the year, shares	1,470
Vested or expected to vest at the end of the year, weighted-average exercise price	$ 246.44
Vested or expected to vest at the end of the year, average remaining contractual term	5 years 8 months 12 days
Vested or expected to vest at the end of the year, aggregate intrinsic value	$ 302,927
Exercisable at December 31, 2020, shares	988
Exercisable at December 31, 2020, weighted-average exercise price	$ 202.19
Exercisable at the end of the year, average remaining contractual term	4 years 6 months
Exercisable at the end of the year, aggregate intrinsic value	$ 247,419

Share-Based Compensation and_11

Share-Based Compensation and Benefit Plans (Black-Scholes Option Pricing Model) (Details) - Stock option [Member]	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-Based Compensation and Benefit Plans
Risk-free interest rate	0.86%	2.26%	2.63%
Expected life	5 years 10 months 24 days	5 years 8 months 12 days	5 years 10 months 24 days
Expected volatility	26.40%	25.10%	24.00%
Expected dividend yield	0.00%	0.00%	0.00%

Share-Based Compensation and_12

Share-Based Compensation and Benefit Plans (Stock Option Activity) (Details) - Stock option [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-Based Compensation and Benefit Plans
Compensation expense for share-based compensation	$ 18,435	$ 18,044	$ 16,521
Income tax benefit from compensation expense for share-based compensation	4,620	4,436	4,093
Total intrinsic value of options exercised	79,451	117,489	156,327
Cash received from the exercise of stock options	$ 46,282	$ 46,106	$ 61,403
Weighted-average grant date fair value of options awarded	$ 106.76	$ 105.37	$ 76.57
Weighted-average remaining contractual life of options currently exercisable	4 years 6 months	4 years 7 months 6 days	4 years 4 months 24 days
Employee stock option [Member]
Share-Based Compensation and Benefit Plans
Weighted-average remaining contractual life of options currently exercisable	4 years 6 months

Share-Based Compensation and_13

Share-Based Compensation and Benefit Plans (Summary of Restricted Stock) (Details) - Restricted stock [Member] - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-Based Compensation and Benefit Plans
Restricted stock granted during period, weighted-average grant date fair value	$ 412.67	$ 355.91	$ 263.89
Employee [Member]
Share-Based Compensation and Benefit Plans
Non-vested restricted stock at beginning of the year, weighted-average grant date fair value	301.40
Restricted stock granted during period, weighted-average grant date fair value	419.88
Restricted stock vested during the period, weighted-average grant date fair value	289.03
Restricted stock forfeited during the period, weighted-average grant date fair value	0
Non-vested restricted stock at the end of the year, weighted-average grant date fair value	$ 358.58	$ 301.40
Employee [Member] \| Performance shares [Member]
Share-Based Compensation and Benefit Plans
Non-vested restricted stock beginning balance, shares	4
Restricted stock granted during the period, shares	2
Restricted stock vested during the period, shares	(2)
Restricted stock forfeited during the period, shares	0
Non-vested restricted stock ending balance, shares	4	4
Shares withheld to cover employees' taxes upon vesting	1
Director [Member]
Share-Based Compensation and Benefit Plans
Non-vested restricted stock at beginning of the year, weighted-average grant date fair value	$ 312.96
Restricted stock granted during period, weighted-average grant date fair value	407.12
Restricted stock vested during the period, weighted-average grant date fair value	293.72
Restricted stock forfeited during the period, weighted-average grant date fair value	0
Non-vested restricted stock at the end of the year, weighted-average grant date fair value	$ 371.46	$ 312.96
Director [Member] \| Performance shares [Member]
Share-Based Compensation and Benefit Plans
Non-vested restricted stock beginning balance, shares	4
Restricted stock granted during the period, shares	2
Restricted stock vested during the period, shares	(2)
Restricted stock forfeited during the period, shares	0
Non-vested restricted stock ending balance, shares	4	4

Share-Based Compensation and_14

Share-Based Compensation and Benefit Plans (Restricted Stock Activity) (Details) - Restricted stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-Based Compensation and Benefit Plans
Compensation expense for share-based compensation	$ 1,488	$ 1,387	$ 1,370
Income tax benefit from compensation expense for share-based compensation	373	341	340
Total fair value of shares vested, at vest date	$ 1,591	$ 1,633	$ 1,230
Weighted-average grant-date fair value of shares issued during the period in compensation and benefit plans other than stock options	$ 412.67	$ 355.91	$ 263.89
Performance shares [Member]
Share-Based Compensation and Benefit Plans
Shares awarded or issued under employee benefit plans, shares	4	4	5

Share-Based Compensation and_15

Share-Based Compensation and Benefit Plans (Employee Stock Purchase Plan Activity) (Details) - Employee stock purchase plan [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-Based Compensation and Benefit Plans
Compensation expense for shares issued under the ESPP	$ 2,824	$ 2,490	$ 2,285
Income tax benefit from compensation expense for shares issued under the ESPP	$ 708	$ 612	$ 566
Shares awarded or issued under employee benefit plans, shares	45	43	53
Weighted-average grant-date fair value of shares issued during the period in compensation and benefit plans other than stock options	$ 353.04	$ 329.69	$ 245.26

Commitments (Commitments) (Narr

Commitments (Commitments) (Narrative) (Details) $ in Millions	Dec. 31, 2020USD ($)D	Dec. 31, 2019USD ($)
Senior notes [Member]
Commitments
Debt instrument minimum number of days callable \| D	30
Debt instrument maximum number of days callable \| D	60
Percentage principal amount of debt that can be redeemed by the Company	100.00%
Percentage principal amount of debt redeemable upon change in control	101.00%
Revolving Credit Facility [Member] \| Unsecured debt [Member]
Commitments
Letters of credit \| $	$ 66.4	$ 38.9
Construction [Member]
Commitments
Construction commitments \| $	$ 38.3

Related Parties (Narrative) (De

Related Parties (Narrative) (Details) - Related parties [Member] $ in Millions	12 Months Ended
	Dec. 31, 2020USD ($)storeproperty	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Related Parties
Number of stores \| store	71
Number of surplus property \| property	1
Lease payments under related party operating leases \| $	$ 4.7	$ 4.7	$ 4.6

Income Taxes (Provision for Inc

Income Taxes (Provision for Income Taxes) (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Revaluation of deferred tax liability, benefit	$ 0	$ 0	$ (1,262)
Investment tax credit amount	170,500	$ 8,500	$ 19,400
State and local jurisdiction [Member]
Income Taxes
Tax credit carryforwards available for state tax purposes, net of federal impact	$ 1,400
Tax credit carryforwards available for state tax purposes, expiration year	2024

Income Taxes (Unrecognized Tax

Income Taxes (Unrecognized Tax Benefits) (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Unrecognized tax benefits
Reserve for unrecognized tax benefits, including interest and penalties	$ 35.9	$ 36.6	$ 38.9
Amounts that would affect the effective tax rate if recognized	35.9	36.6	38.9
Federal tax effect for unrecognized tax benefits	7.5
Accrual of interest and penalties related to uncertain tax positions	5	5.1	5.1
Tax expense related to an increase in liabilities for interest and penalties	2.2	$ 2.7	$ 2.3
Reduction of unrecognized tax benefits due to lapse of statute of limitations and settlements over the next twelve months	$ 6
Open tax year	2017

Income Taxes (Components of Inc

Income Taxes (Components of Income from Continuing Operations) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Domestic	$ 2,260,385	$ 1,790,207	$ 1,694,087
International	6,020	122	0
Income before income taxes	$ 2,266,405	$ 1,790,329	$ 1,694,087

Income Taxes (Schedule of Compo

Income Taxes (Schedule of Components of the Provision for Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Provision for income taxes
Federal income tax expense, current	$ 401,331	$ 315,061	$ 289,953
State income tax expense, current	97,085	62,795	59,487
International income tax expense, current	3,306	273	0
Current income tax expense	501,722	378,129	349,440
Federal income tax expense, deferred	16,749	19,367	16,309
State income tax (benefit) expense, deferred	(2,865)	2,027	3,851
International income tax benefit. deferred	(1,503)	(236)	0
Total deferred	12,381	21,158	20,160
Provision for income taxes	$ 514,103	$ 399,287	$ 369,600

Income Taxes (Reconciliation of

Income Taxes (Reconciliation of the Provision for Income Taxes to the Amounts Computed at the Federal Statutory Rate) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of provision for income taxes
Federal income taxes at statutory rate	$ 474,681	$ 375,942	$ 355,758
State income taxes, net of federal tax benefit	76,810	54,739	56,345
Excess tax benefit from share-based compensation	(16,918)	(25,992)	(34,703)
Revaluation of deferred tax liability	0	0	(1,262)
Benefit from investment in renewable energy tax credits	(17,904)	(875)	(2,037)
Other items, net	(2,566)	(4,527)	(4,501)
Provision for income taxes	$ 514,103	$ 399,287	$ 369,600

Income Taxes (Schedule of Com_2

Income Taxes (Schedule of Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Allowance for doubtful accounts	$ 1,574	$ 2,008
Tax credits	1,444	3,417
Other accruals	143,387	97,189
Operating lease liability	513,134	494,093
Other	16,594	15,732
Total deferred tax assets	676,133	612,439
Deferred tax liabilities:
Inventories	79,326	65,346
Property and equipment	194,000	162,613
Operating lease asset	498,042	479,821
Other	60,664	37,939
Total deferred tax liabilities	832,032	745,719
Net deferred tax liabilities	$ (155,899)	$ (133,280)

Income Taxes (Summary of Change

Income Taxes (Summary of Changes in Gross Amount of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Unrecognized tax benefits
Unrealized tax benefit, beginning balance	$ 31,475	$ 33,766	$ 35,388
Additions based on tax positions related to the current year	4,795	4,627	3,550
Additions based on tax positions related to prior years	0	0	4,255
Payments related to items settled with taxing authorities	0	(443)	(2,792)
Reduction due to lapse of statute of limitations and settlements	(5,303)	(6,475)	(6,635)
Unrealized tax benefit, ending balance	$ 30,967	$ 31,475	$ 33,766

Earnings Per Share (Narrative)

Earnings Per Share (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	2 Months Ended	12 Months Ended		122 Months Ended
	Feb. 26, 2021	Dec. 31, 2020	Dec. 31, 2019	Feb. 26, 2021
Earnings Per Share
Common stock repurchased, shares		4,832	3,877
Common stock repurchased, average price per share		$ 431.93	$ 369.55
Common stock repurchased, value		$ 2,087,146	$ 1,432,752
Subsequent event [Member]
Earnings Per Share
Common stock repurchased, shares	1,100			82,100
Common stock repurchased, average price per share	$ 447.49			$ 179.65
Common stock repurchased, value	$ 478,400			$ 14,700,000

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								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Numerator (basic and diluted):
Net income	$ 392,945	$ 527,252	$ 531,667	$ 300,438	$ 324,916	$ 391,293	$ 353,681	$ 321,152	$ 1,752,302	$ 1,391,042	$ 1,324,487
Denominator:
Denominator for basic earnings per share - weighted-average shares									73,817	76,985	81,406
Effect of stock options									645	803	874
Denominator for diluted earnings per share - weighted-average shares and assumed conversion									74,462	77,788	82,280
Earnings per share - basic	$ 5.45	$ 7.13	$ 7.16	$ 4	$ 4.29	$ 5.14	$ 4.56	$ 4.09	$ 23.74	$ 18.07	$ 16.27
Earnings per share - assuming dilution	$ 5.40	$ 7.07	$ 7.10	$ 3.97	$ 4.25	$ 5.08	$ 4.51	$ 4.05	$ 23.53	$ 17.88	$ 16.10
Antidilutive stock options									291	229	567
Weighted-average exercise price per share of antidilutive stock options									$ 393.42	$ 368.11	$ 268.55

Quarterly Results (unaudited)_2

Quarterly Results (unaudited) (Unaudited Operating Data) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Quarterly Results (Unaudited)
Sales	$ 2,828,773	$ 3,207,638	$ 3,091,595	$ 2,476,487	$ 2,482,975	$ 2,666,528	$ 2,589,874	$ 2,410,608	$ 11,604,493	$ 10,149,985	$ 9,536,428
Gross profit	1,472,138	1,680,468	1,637,180	1,295,906	1,324,584	1,422,530	1,368,287	1,279,290	6,085,692	5,394,691	5,039,966
Operating income	534,272	725,013	736,490	423,561	441,503	536,363	498,074	444,786	2,419,336	1,920,726	1,815,184
Net income	$ 392,945	$ 527,252	$ 531,667	$ 300,438	$ 324,916	$ 391,293	$ 353,681	$ 321,152	$ 1,752,302	$ 1,391,042	$ 1,324,487
Earnings per share - basic	$ 5.45	$ 7.13	$ 7.16	$ 4	$ 4.29	$ 5.14	$ 4.56	$ 4.09	$ 23.74	$ 18.07	$ 16.27
Earnings per share - assuming dilution	$ 5.40	$ 7.07	$ 7.10	$ 3.97	$ 4.25	$ 5.08	$ 4.51	$ 4.05	$ 23.53	$ 17.88	$ 16.10