O'Reilly Auto Parts 2015 Annual Report Download - page 44

FORM 10-K
36
to pass along these increased costs through higher retail prices for the affected products. As a result, we do not believe inflation has had
a material adverse effect on our operations.
To some extent, our business is seasonal primarily as a result of the impact of weather conditions on customer buying patterns. While
we have historically realized operating profits in each quarter of the year, our store sales and profits have historically been higher in the
second and third quarters (April through September) than in the first and fourth quarters (October through March) of the year.
QUARTERLY RESULTS
The following tables set forth certain quarterly unaudited operating data for fiscal years ended December 31, 2015 and 2014. The
unaudited quarterly information includes all adjustments, which management considers necessary for a fair presentation of the information
shown (in thousands, except per share and comparable store sales data):
Fiscal 2015
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Comparable store sales 7.2% 7.2% 7.9% 7.7%
Sales $ 1,901,903 $ 2,035,518 $ 2,080,201 $ 1,949,052
Gross profit 986,959 1,058,791 1,089,254 1,027,639
Operating income 350,373 385,768 415,260 362,620
Net income 212,864 233,508 266,268 218,576
Earnings per share – basic (1) $ 2.09 $ 2.32 $ 2.68 $ 2.22
Earnings per share – assuming dilution (1) $ 2.06 $ 2.29 $ 2.64 $ 2.19
Fiscal 2014
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Comparable store sales 6.3% 5.1% 6.2% 6.3%
Sales $ 1,727,943 $ 1,847,088 $ 1,876,872 $ 1,764,178
Gross profit 877,716 950,877 968,201 912,107
Operating income 287,120 336,474 343,768 303,012
Net income 173,860 205,647 216,997 181,678
Earnings per share – basic (1) $ 1.64 $ 1.94 $ 2.10 $ 1.79
Earnings per share – assuming dilution (1) $ 1.61 $ 1.91 $ 2.06 $ 1.76
(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 our consolidated financial statements and related notes
included elsewhere in this annual report, and the other financial information included therein.
RECENT ACCOUNTING PRONOUNCEMENTS
In May of 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standard Update ("ASU") No. 2014-09,
"Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"). Under ASU 2014-09, an entity is required to follow a five-
step process to determine the amount of revenue to recognize when promised goods or services are transferred to customers. ASU
2014-09 offers specific accounting guidance for costs to obtain or fulfill a contract with a customer. In addition, an entity is required
to disclose sufficient information to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from
contracts with customers. In August of 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic
606): Deferral of the Effective Date" ("ASU 2015-14"), to defer the effective date of ASU 2014-09 by one year. Originally, for public
companies, ASU 2014-09 was effective for annual reporting periods beginning after December 15, 2016, including periods within
that reporting period, and could be adopted either retrospectively or as a cumulative effect adjustment at the date of adoption, with
early adoption not permitted. For public companies, ASU 2015-14 changes ASU 2014-09 to be effective for annual reporting periods
beginning after December 15, 2017, including periods within that reporting period, and can be adopted retrospectively or as a cumulative
effective adjustment at the date of adoption, with early adoption allowed, but not before ASU 2014-09's original effective date of
December 15, 2016. We will adopt this guidance beginning with our first quarter ending March 31, 2018. We are in the process of