O'Reilly Auto Parts 2015 Annual Report Download - page 40

FORM 10-K
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limitations of these non-GAAP measures are that such measures do not reflect actual GAAP amounts. We compensate for such limitations
by presenting, in the tables above, a reconciliation to the most directly comparable GAAP measures.
Share repurchase program:
In January of 2011, our Board of Directors approved a share repurchase program. Under the program, we may, from time to time,
repurchase shares of our 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. Our 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 4, 2015, May 29, 2015, and February 10, 2016, our Board of Directors each time approved a resolution to
increase the authorization amount under our share repurchase program by an additional $500 million, $500 million and $750 million,
respectively, resulting in a cumulative authorization amount of $6.25 billion. Each additional authorization is effective for a three-year
period, beginning on its respective announcement date.
The following table identifies shares of our common stock that have been repurchased as part of our publicly announced share repurchase
program (in thousands, except per share data):
For the Year Ended
December 31,
2015 2014
Shares repurchased 4,901 5,743
Average price per share $ 231.81 $ 150.86
Total investment $ 1,136,139 $ 866,398
As of December 31, 2015, we had $143 million remaining under our share repurchase program. Subsequent to the end of the year and
through February 26, 2016, we repurchased an additional 0.8 million shares of our common stock under our share repurchase program,
at an average price of $247.61, for a total investment of $202 million. We have repurchased a total of 52 million shares of our common
stock under our share repurchase program since the inception of the program in January of 2011 and through February 26, 2016, at an
average price of $106.76 for a total aggregate investment of $5.56 billion. As of February 26, 2016, we had approximately $692 million
remaining under our share repurchase program.
CONTRACTUAL OBLIGATIONS
Our contractual obligations as of December 31, 2015, included commitments for short and long-term debt arrangements, interest payments
related to long-term debt, future payments under non-cancelable lease arrangements, self-insurance reserves, purchase obligations for
construction contract commitments and other long-term liabilities, which are identified in the table below and are fully disclosed in Note
6 "Leasing," Note 9 "Share-Based Compensation and Benefit Plans" and Note 10 "Commitments" to the Consolidated Financial
Statements. We expect to fund these commitments primarily with operating cash flows expected to be generated in the normal course
of business or through borrowings under our Revolving Credit Facility.
Deferred income taxes, as well as commitments with various suppliers for the purchase of inventory, are not reflected in the table below
due to the absence of scheduled maturities, the nature of the account or the commitment's cancellation terms. Due to the absence of
scheduled maturities, the timing of certain of these payments cannot be determined, except for amounts estimated to be payable in 2016,
which are included in "Current liabilities" on our Consolidated Balance Sheets.
We record a reserve for potential liabilities related to uncertain tax positions, including estimated interest and penalties, which are fully
disclosed in Note 12 "Income Taxes" to the Consolidated Financial Statements. These estimates are not included in the table below
because the timing related to the ultimate resolution or settlement of these positions cannot be determined. As of December 31, 2015,
we recorded a net liability of $44 million related to these uncertain tax positions on our Consolidated Balance Sheets, all of which was
included as a component of "Other liabilities."
We record a reserve for the projected obligation related to future payments under the Company's nonqualified deferred compensation
plan, which is fully disclosed in Note 9 "Share-Based Compensation and Benefit Plans" to the Consolidated Financial Statements. This
estimate is not included in the table below because the timing related to the ultimate payment cannot be determined. As of December 31,
2015, we recorded a liability of $17 million related to this uncertain liability on our Consolidated Balance Sheets, all of which was
included as a component of "Other liabilities."