O'Reilly Auto Parts 2013 Annual Report Download - page 68

FORM 10-K
62
The table below outlines the effects the Company’s derivative financial instruments had on its Consolidated Statements of Income for
the years ended December 31, 2013, 2012 and 2011 (in thousands):
Location and Amount of Loss Recognized in Income on Derivatives
Derivatives Designated as Hedging Instruments For the Year Ended December 31,
Classification 2013 2012 2011
Interest rate swap contracts Other income (expense) $— $ — $ (4,237)
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, 2013 and 2012. The following table identifies the changes in the Company’s aggregate product warranty liabilities
for the years ended December 31, 2013 and 2012 (in thousands):
2013 2012
Balance at January 1, $ 28,001 $ 21,642
Warranty claims (50,859)(50,009)
Warranty accruals 56,244 56,368
Balance at December 31, $ 33,386 $ 28,001
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,
for a three-year period. The Company and its Board of Directors may increase or otherwise modify, renew, suspend or terminate the
share repurchase program at any time, without prior notice. During 2013, the Company announced that its Board of Directors approved
a resolution to increase the cumulative authorization amount by an additional $500 million, which is effective for a three-year period and
expires May 29, 2016. As of December 31, 2013, the cumulative authorization amount under the program was $3.5 billion. On February
5, 2014, the Company announced that its Board of Directors approved a resolution to increase the cumulative authorization amount by
an additional $500 million, which is effective for a three-year period and expires February 5, 2017. As of February 5, 2014, the cumulative
authorization amount under the program was $4.0 billion.
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 (in thousands, except per share data):
For the Year Ended December 31,
2013 2012
Shares repurchased 8,529 16,201
Average price per share $ 109.38 $ 89.20
Total investment $ 932,900 $ 1,445,044
As of December 31, 2013, the Company had $145.7 million remaining under its share repurchase program. Subsequent to the end of the
year and through February 28, 2014, the Company did not repurchase a material number of shares of its common stock. The Company
repurchased a total of 40.6 million shares of its common stock under its share repurchase program since the inception of the program in
January of 2011 and through February 28, 2014, at an average price of $82.61 for a total aggregate investment of $3.4 billion. As of
February 28, 2014, the Company had approximately $645.1 million remaining under its share repurchase program.