O'Reilly Auto Parts 2014 Annual Report Download - page 43

FORM 10-K
36
Fiscal 2014
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In thousands, except per share and comparable store sales data)
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
Fiscal 2013
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In thousands, except per share and comparable store sales data)
Comparable store sales 0.6% 6.5% 4.6% 5.4%
Sales $ 1,585,009 $ 1,714,969 $ 1,728,025 $ 1,621,234
Gross profit 798,663 871,875 879,163 819,300
Operating income 251,084 296,261 300,380 255,760
Net income 154,329 177,127 186,489 152,347
Earnings per share – basic (1) $ 1.38 $ 1.61 $ 1.72 $ 1.43
Earnings per share – assuming dilution (1) $ 1.36 $ 1.58 $ 1.69 $ 1.40
(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.
RECENT ACCOUNTING PRONOUNCEMENTS
In May of 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard 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. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including periods within
that reporting period, and can be adopted either retrospectively or as a cumulative effect adjustment at the date of adoption, with early
adoption not permitted. We will adopt this guidance beginning with our first quarter ending March 31, 2017; we are in the process
of evaluating the potential future impact, if any, of ASU 2014-09 on our consolidated financial position, results of operations and cash
flows.
In August of 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic
205-40)" ("ASU 2014-15"). ASU 2014-15 will require management to assess an entity's ability to continue as a going concern for
each annual and interim reporting period and to provide related footnote disclosure in circumstances in which substantial doubt exists.
ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter,
with early application permitted. We will apply this guidance beginning with our annual period ending December 31, 2016; the
application of this guidance affects disclosure only and, therefore, it is not expected to have a material impact on our consolidated
financial condition, results of operations or cash flows.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
We are subject to interest rate risk to the extent we borrow against our unsecured revolving credit facility (the "Revolving Credit Facility")
with variable interest rates based on either a Base Rate or Eurodollar Rate, as defined in the credit agreement governing the Revolving
Credit Facility. As of December 31, 2014, we had no outstanding borrowings under our Revolving Credit Facility.