O'Reilly Auto Parts 2014 Annual Report Download - page 63

FORM 10-K
56
NOTE 7 – WARRANTIES
The Company's product warranty liabilities are included in "Other current liabilities" on the accompanying Consolidated Balance Sheets
as of December 31, 2014 and 2013. The following table identifies the changes in the Company's aggregate product warranty liabilities
for the years ended December 31, 2014 and 2013 (in thousands):
2014 2013
Balance at January 1, $ 33,386 $ 28,001
Warranty claims (52,297)(50,859)
Warranty accruals 53,137 56,244
Balance at December 31, $ 34,226 $ 33,386
NOTE 8 – 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. As announced on February 5, 2014, August 13, 2014, and February 4, 2015,
the Company's Board of Directors each time approved a resolution to increase the authorization amount under the share repurchase
program by an additional $500 million, resulting in a cumulative authorization amount of $5.0 billion. Each additional $500 million
authorization is effective for a three-year period beginning on their respective announcement date.
The following table identifies shares of the Company's common stock that have been repurchased as part of the Company's publicly
announced share repurchase program (in thousands, except per share data):
For the Year Ended
December 31,
2014 2013
Shares repurchased 5,743 8,529
Average price per share $ 150.86 $ 109.38
Total investment $ 866,398 $ 932,900
As of December 31, 2014, the Company had $279.3 million remaining under its share repurchase program. Subsequent to the end of the
year and through February 27, 2015, the Company repurchased an additional 0.1 million shares of our common stock under our share
repurchase program, at an average price of $197.48, for a total investment of $27.8 million. The Company has repurchased a total of
46.5 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and
through February 27, 2015, at an average price of $91.38 for a total aggregate investment of $4.2 billion. As of February 27, 2015, the
Company had approximately $751.5 million remaining under its share repurchase program.
NOTE 9 – SHARE-BASED COMPENSATION AND BENEFIT PLANS
The Company recognizes share-based compensation expense based on the fair value of the grants, awards or shares at the time of the
grant, award or issuance. Share-based compensation includes stock option awards issued under the Company's employee incentive plans
and director stock plan, restricted stock awarded under the Company's employee incentive plans, performance incentive plan and director
stock plan, stock issued through the Company's employee stock purchase plan and stock awarded to employees through other benefit
programs.