Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and Board of Directors

Fastenal Company:

Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting

We have audited the accompanying consolidated balance sheets of Fastenal Company and subsidiaries (the Company) as of December 31, 2020 and 2019, the related consolidated statements of earnings, comprehensive income, stockholders' equity, and cash flows for each of the years in the three-year period ended December 31, 2020 and the related notes and financial statement schedule listed in the table of contents at Item 15 (collectively, the consolidated financial statements). We also have audited the Company's internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020 based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's consolidated financial statements and an opinion on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control Over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Sufficiency of audit evidence over inventory quantities

As disclosed in the consolidated balance sheet, the Company held $1,337.5 million of inventory, the majority of which was held at 3,268 in-market locations, as of December 31, 2020. The Company’s processes to track and determine consolidated inventory relies on a perpetual inventory system which involves the interaction of multiple information technology (IT) systems.

We identified the evaluation of the sufficiency of audit evidence obtained related to the quantities of inventory as a critical audit matter. Evaluating the sufficiency of audit evidence over quantities of inventory required challenging auditor judgment to assess the number of in-market locations visited, and included the involvement of IT professionals with specialized skills and knowledge due to the interaction of multiple IT systems that track physical inventory quantities by location.

The following are the primary procedures we performed to address this critical audit matter: We evaluated the design and tested the operating effectiveness of certain internal controls related to the critical audit matter. This included IT application controls, as well as certain controls related to access to programs and data, program changes, program development, and computer operations. It also included certain controls related to the Company's physical inventory cycle counts. We involved IT professionals with specialized skills and knowledge, who assisted in testing certain IT controls, inclusive of the interface of multiple IT systems, which support the Company’s perpetual inventory system. We applied auditor judgment in the determination of the locations to test the Company’s inventory quantities by evaluating:

• Historical inventory locations we have visited and results of prior physical counts;

• Inventory dollars by location; and

• The Company's inventory cycle count results, including the results of monitoring and compliance with cycle count program by in-market location.

We tested the existence and completeness of inventory by counting inventory quantities on a sample basis through location visits during the year to evaluate the Company’s perpetual inventory records. In addition, we evaluated the overall sufficiency of audit evidence obtained over the quantities of inventory.

/s/ KPMG LLP

We have served as the Company’s auditor since 1987.

Minneapolis, Minnesota

February 8, 2021

FASTENAL COMPANY AND SUBSIDIARIES

Consolidated Balance Sheets

(Amounts in millions except share information)

			December 31
			2020						2019
Assets
Current assets:
Cash and cash equivalents			$	245.7					174.9
Trade accounts receivable, net of allowance for credit losses of $12.3 and $10.9, respectively			769.4						741.8
Inventories			1,337.5						1,366.4
Prepaid income taxes			6.7						16.7
Other current assets			140.3						157.4
Total current assets			2,499.6						2,457.2
Property and equipment, net			1,030.7						1,023.2
Operating lease right-of-use assets			243.0						243.2
Other assets			191.4						76.3
Total assets			$	3,964.7					3,799.9
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of debt			$	40.0					3.0
Accounts payable			207.0						192.8
Accrued expenses			272.1						251.5
Current portion of operating lease liabilities			93.6						97.4
Total current liabilities			612.7						544.7
Long-term debt			365.0						342.0
Operating lease liabilities			151.5						148.2
Deferred income taxes			102.3						99.4
Commitments and contingencies (Notes 6, 9, 10, and 11)
Stockholders’ equity:
Preferred stock: $0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding			—						—
Common stock: $0.01 par value, 800,000,000 shares authorized, 574,159,575 and 574,128,911 shares issued and outstanding, respectively			2.9						2.9
Additional paid-in capital			61.9						67.2
Retained earnings			2,689.6						2,633.9
Accumulated other comprehensive loss			(21.2)						(38.4)
Total stockholders’ equity			2,733.2						2,665.6
Total liabilities and stockholders’ equity			$	3,964.7					3,799.9

See accompanying Notes to Consolidated Financial Statements.

FASTENAL COMPANY AND SUBSIDIARIES

Consolidated Statements of Earnings

(Amounts in millions except earnings per share)

For the year ended December 31

			2020						2019						2018
Net sales			$	5,647.3					5,333.7						4,965.1
Cost of sales			3,079.5						2,818.3						2,566.2
Gross profit			2,567.8						2,515.4						2,398.9
Operating and administrative expenses			1,427.4						1,459.4						1,400.2
Gain on sale of property and equipment			(1.4)						(1.2)						(0.5)
Operating income			1,141.8						1,057.2						999.2
Interest income			0.6						0.4						0.4
Interest expense			(9.7)						(13.9)						(12.6)
Earnings before income taxes			1,132.7						1,043.7						987.0
Income tax expense			273.6						252.8						235.1
Net earnings			$	859.1					790.9						751.9
Basic net earnings per share			$	1.50					1.38						1.31
Diluted net earnings per share			$	1.49					1.38						1.31
Basic weighted average shares outstanding			573.8						573.2						573.9
Diluted weighted average shares outstanding			575.7						574.4						574.3

See accompanying Notes to Consolidated Financial Statements.

FASTENAL COMPANY AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(Amounts in millions)

For the year ended December 31

			2020						2019						2018
Net earnings			$	859.1					790.9						751.9
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments (net of tax of $0.0 in 2020, 2019, and 2018)			17.2						6.4						(19.7)
Comprehensive income			$	876.3					797.3						732.2

See accompanying Notes to Consolidated Financial Statements.

FASTENAL COMPANY AND SUBSIDIARIES

Consolidated Statements of Stockholders' Equity

(Amounts in millions)

			2020						2019						2018
Common stock
Balance at beginning of year			$	2.9					2.9						2.9
Balance at end of year			2.9						2.9						2.9
Additional paid-in capital
Balance at beginning of year			67.2						3.0						8.5
Stock options exercised			41.0						58.5						13.4
Purchases of common stock			(52.0)						—						(24.0)
Stock-based compensation			5.7						5.7						5.1
Balance at end of year			61.9						67.2						3.0
Retained earnings
Balance at beginning of year			2,633.9						2,341.6						2,110.6
Net earnings			859.1						790.9						751.9
Dividends paid in cash			(803.4)						(498.6)						(441.9)
Purchases of common stock			—						—						(79.0)
Balance at end of year			2,689.6						2,633.9						2,341.6
Accumulated other comprehensive income (loss)
Balance at beginning of year			(38.4)						(44.8)						(25.1)
Other comprehensive income (loss)			17.2						6.4						(19.7)
Balance at end of year			(21.2)						(38.4)						(44.8)
Total stockholders' equity			$	2,733.2					2,665.6						2,302.7
Cash dividends paid per share of common stock			$	1.40					0.87						0.77

See accompanying Notes to Consolidated Financial Statements.

FASTENAL COMPANY AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Amounts in millions)

For the year ended December 31

			2020						2019						2018
Cash flows from operating activities:
Net earnings			$	859.1					790.9						751.9
Adjustments to reconcile net earnings to net cash provided by operating activities, net of acquisitions:
Depreciation of property and equipment			153.3						144.6						134.1
Gain on sale of property and equipment			(1.4)						(1.2)						(0.5)
Bad debt expense			7.5						5.5						8.1
Deferred income taxes			2.9						15.0						33.8
Stock-based compensation			5.7						5.7						5.1
Amortization of intangible assets			9.1						4.1						4.1
Changes in operating assets and liabilities, net of acquisitions:
Trade accounts receivable			(29.7)						(30.4)						(120.3)
Inventories			36.0						(84.4)						(193.3)
Other current assets			17.1						(10.4)						(28.9)
Accounts payable			14.2						(0.8)						46.1
Accrued expenses			20.6						10.7						46.8
Income taxes			10.0						(7.7)						(15.5)
Other			(2.6)						1.1						2.7
Net cash provided by operating activities			1,101.8						842.7						674.2
Cash flows from investing activities:
Purchases of property and equipment			(168.1)						(246.4)						(176.3)
Proceeds from sale of property and equipment			10.6						6.6						9.5
Cash paid for acquisitions			(125.0)						—						(3.7)
Other			0.8						0.1						(3.4)
Net cash used in investing activities			(281.7)						(239.7)						(173.9)
Cash flows from financing activities:
Proceeds from debt obligations			1,000.0						910.0						980.0
Payments against debt obligations			(940.0)						(1,065.0)						(895.0)
Proceeds from exercise of stock options			41.0						58.5						13.4
Purchases of common stock			(52.0)						—						(103.0)
Payments of dividends			(803.4)						(498.6)						(441.9)
Net cash used in financing activities			(754.4)						(595.1)						(446.5)
Effect of exchange rate changes on cash and cash equivalents			5.1						(0.2)						(3.5)
Net increase in cash and cash equivalents			70.8						7.7						50.3
Cash and cash equivalents at beginning of year			174.9						167.2						116.9
Cash and cash equivalents at end of year			$	245.7					174.9						167.2
Supplemental information:
Cash paid for interest			$	8.4					13.9						12.6
Net cash paid for income taxes			$	260.1					242.7						215.3

See accompanying Notes to Consolidated Financial Statements.

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements

Note 1. Business Overview and Summary of Significant Accounting Policies

Business Overview

Fastenal is a leader in the wholesale distribution of industrial and construction supplies operating a branch-based business (with an increasing number of Onsite locations). Collectively we refer to our branches and Onsite locations as in-market locations. We have over 3,200 in-market locations located primarily in North America.

Principles of Consolidation

The consolidated financial statements include the accounts of Fastenal Company and its subsidiaries (collectively referred to as 'Fastenal' or by terms such as 'we', 'our', or 'us'). All material intercompany balances and transactions have been eliminated in consolidation.

Revenue Recognition

Net sales include products and shipping and handling charges, net of estimates for product returns and any related sales incentives. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring the promised products to the customer, with the majority of revenue recognized at the point in time the customer obtains control of the products. We recognize revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. We estimate product returns based on historical return rates. Using probability assessments, which are based on known inputs at year-end, we estimate sales incentives expected to be paid over the term of the contract. The majority of our contracts have a single performance obligation and are short term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales.

Accounts Receivable

Credit is extended based upon an evaluation of the customers' financial condition. Accounts receivable are stated at their estimated net realizable value. The allowance for credit losses is based on an income statement approach which adjusts the ending balance sheet to take into consideration expected losses over the contractual lives of the receivables, considering factors such as historical data as a basis for future expected losses.

Foreign Currency Translation and Transactions

The functional currency of our foreign operations is typically the applicable local currency. The functional currency is translated into United States dollars for balance sheet accounts, except retained earnings, using current exchange rates as of the balance sheet date, for retained earnings at historical exchange rates, and for revenue and expense accounts using a weighted average exchange rate during the applicable period. The translation adjustments are deferred as a separate component of stockholders' equity captioned accumulated other comprehensive income (loss). Gains or losses resulting from transactions denominated in foreign currencies are included in cost of sales or operating and administrative expenses.

Cash and Cash Equivalents

We consider all investments purchased with original maturities of three months or less to be cash equivalents.

Inventories

Inventories, consisting of finished goods merchandise held for resale, are stated at the lower of cost (first in, first out method) or net realizable value. We record valuation adjustments for excess, slow-moving, and obsolete inventory that are equal to the difference between the cost and estimated net realizable value for that inventory. These estimates are based on a review and comparison of the current inventory levels to projected and historical sales of inventory.

Property and Equipment

Property and equipment are stated at cost. Depreciation on property and equipment is provided for using the straight-line method over the anticipated economic useful lives of the related property. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by the asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. There were no impairments recorded during any of the three years reported in these consolidated financial statements.

Leases

We determine if an arrangement contains a lease at inception. Operating leases are included in our operating lease right-of-use ('ROU') assets, the current portion of operating lease liabilities, and the operating lease liabilities in our Consolidated Balance Sheets.

The ROU assets represent our right to control the use of an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The operating lease ROU assets also include any prepaid lease payments made and exclude lease incentives. Lease expense is recognized on a straight-line basis over the lease term.

Many of our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and nonlease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and nonlease components for all leases. Our pick-up truck leases typically have a non-cancelable lease term of less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our ROU assets and lease liabilities.

Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our ROU assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate.

Other Long-Lived Assets

Other assets consist of prepaid deposits, goodwill, and other definite-lived intangible assets. Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill is reviewed for impairment annually. The identifiable intangible assets are amortized on a straight-line basis over their estimated life.

Accounting Estimates

The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles ('GAAP') requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from those estimates.

Insurance Reserves

We are self-insured for certain losses relating to workers' compensation, automobile, health, and general liability costs. Specific stop-loss coverage is provided for catastrophic claims in order to limit exposure to significant claims. Self-insurance liabilities are based on our estimate of reported claims and claims incurred but not yet reported.

Product Warranties

We offer a basic limited warranty for certain of our products. The specific terms and conditions of those warranties vary depending upon the product sold. We typically recoup these costs through product warranties we hold with the original equipment manufacturers. Our warranty expense has historically been minimal.

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

Stock-Based Compensation

We estimate the value of stock option grants using a Black-Scholes valuation model. Stock-based compensation expense is recognized on a straight-line basis over the vesting period. Our stock-based compensation expense is recorded in operating and administrative expenses.

Income Taxes

We account for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

We recognize the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits in income tax expense.

Earnings Per Share

Basic net earnings per share is calculated using net earnings available to common stockholders divided by the weighted average number of shares of common stock outstanding during the year. Diluted net earnings per share is similar to basic net earnings per share except that the weighted average number of shares of common stock outstanding includes the incremental shares assumed to be issued upon the exercise of stock options considered to be 'in-the-money' (i.e., when the market price of our stock is greater than the exercise price of our outstanding stock options).

Segment Reporting

We have determined that for our North American regions we meet the aggregation criteria outlined in the accounting standards as these regions have similar: (1) economic characteristics, (2) products and services, (3) customers, (4) distribution channels, and (5) regulatory environments. Considering the insignificance of our operations outside of North America, we report as a single business segment.

Impact of COVID-19

The COVID-19 pandemic has impacted and could further impact our operations and the operations of our suppliers and customers as a result of quarantines, facility closures, and travel and logistics restrictions. We recently experienced an increase in sales volume of safety related products. However, we may realize lower product margins as well as inventory write-downs as a result of the improved supply and the potential inability to sell excess safety related products ordered from suppliers. The extent to which the COVID-19 pandemic impacts our business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to the duration, spread, severity, and impact of the COVID-19 pandemic, the effects of the COVID-19 pandemic on our customers and suppliers, and the remedial actions and stimulus measures adopted by local and federal governments, and to what extent normal economic and operating conditions can resume. Therefore, we cannot reasonably estimate the impact at this time.

Stock Split

On April 17, 2019, the board of directors approved a two-for-one stock split of the company's outstanding common stock. Holders of the company's common stock, par value $0.01 per share, at the close of business on May 2, 2019, received one additional share of common stock for every share of common stock they owned. The stock split took effect at the close of business on May 22, 2019. All historical common stock share and per share information for all periods presented in the accompanying consolidated financial statements and notes thereto have been retroactively adjusted to reflect the stock split.

Recently Adopted Accounting Pronouncements

Effective January 1, 2020, we adopted Financial Accounting Standard Board ('FASB') Accounting Standards Update ('ASU') 2016-13, Measurement of Credit Losses on Financial Instruments, which changed the way entities recognize impairment of most financial assets. Short-term and long-term financial assets, as defined by the standard, are impacted by immediate

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

recognition of estimated credit losses in the financial statements, reflecting the net amount expected to be collected. The adoption of this standard had an immaterial impact on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which provides guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 requires that, to be a business, an acquired set of assets and activities must include, at a minimum, an input and a substantive process that together significantly contributes to the ability to create outputs. The company adopted this guidance during the first quarter of 2020 when evaluating the transaction discussed further in Note 2, 'Asset Acquisition'.

Recently Issued Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to U.S. GAAP on contract modifications, hedging relationships, and other transactions affected by reference rate reform to ease entities financial reporting burdens as the market transitions from the London Interbank Offered Rate ('LIBOR') and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made, hedging relationships entered into, and other transactions affected by reference rate reform, evaluated on or before December 31, 2022, beginning during the reporting period in which the guidance has been elected. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Note 2. Asset Acquisition

On March 30, 2020, we purchased certain assets of Apex Industrial Technologies LLC ('Apex') that have contributed to the development, design, and scalability of the vending delivery platform utilized since 2008 within our industrial vending business to dispense product and lease devices to our customers. In connection with this transaction, we purchased a perpetual and unfettered use of key patents, designs, software and licenses, as well as direct access to the vending equipment supply chain.

The total purchase price of the assets acquired consisted of $125.0. The majority of this was paid in cash at closing, though a small portion of the purchase price is held in escrow with final payment dependent on certain performance obligations of the seller. We funded the purchase price with available cash and proceeds from borrowings on our unsecured revolving credit facility. We accounted for the purchase as an asset acquisition as substantially all of the fair value of the gross assets acquired is concentrated in the identifiable intangible assets used in the vending delivery platform for our industrial vending business. On a relative fair value basis, the allocated identifiable intangible assets total $123.8 and tangible property and equipment total $1.2. The weighted average amortization period of the identifiable intangible assets is approximately 19.4 years.

Note 3. Revenue

Disaggregation of Revenue

The accounting policies of the operations in the various geographic areas are the same as those described in the summary of significant accounting policies. Revenues are attributed to countries based on the selling location from which the sale occurred. During 2020, we had a single customer that represented 5% of our consolidated net sales, whereas all remaining customers fell below that threshold. During both 2019 and 2018, no single customer represented 5% or more of our consolidated net sales.

Our revenues related to the following geographic areas were as follows for the periods ended December 31:

			Twelve-month period
			2020						2019						2018
United States			$	4,825.3					4,568.9						4,285.5
Canada and Mexico			625.0						606.8						530.8
North America			5,450.3						5,175.7						4,816.3
All other foreign countries			197.0						158.0						148.8
Total revenues			$	5,647.3					5,333.7						4,965.1

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

The percentages of our sales by end market were as follows for the periods ended December 31:

			Twelve-month period
			2020						2019						2018
Manufacturing			62.4		%				67.5		%				66.7		%
Non-residential construction			11.3		%				12.9		%				13.1		%
Other			26.3		%				19.6		%				20.2		%
			100.0		%				100.0		%				100.0		%

The percentages of our sales by product line were as follows for the periods ended December 31:

									Twelve-month Period
Type			Introduced						2020						2019						2018
Fasteners(1)			1967						29.9		%				34.2		%				34.9		%
Tools			1993						8.2		%				9.9		%				10.0		%
Cutting tools			1996						4.7		%				5.7		%				5.7		%
Hydraulics & pneumatics			1996						5.9		%				6.8		%				6.8		%
Material handling			1996						5.1		%				5.9		%				5.8		%
Janitorial supplies			1996						9.8		%				7.8		%				7.6		%
Electrical supplies			1997						4.1		%				4.7		%				4.7		%
Welding supplies			1997						3.5		%				4.2		%				4.1		%
Safety supplies			1999						25.5		%				17.9		%				17.2		%
Other									3.3		%				2.9		%				3.2		%
									100.0		%				100.0		%				100.0		%

(1) The fastener product line represents fasteners and miscellaneous supplies.

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

Note 4. Long-Lived Assets

The accounting policies of the operations in the various geographic areas are the same as those described in the summary of significant accounting policies. Long-lived assets consist of net property and equipment, operating lease right-of-use assets, deposits, goodwill, and other net intangibles.

Property and equipment at year end consisted of the following:

			Depreciable Life in Years						2020						2019
Land			—						$	51.9					41.8
Buildings and improvements			15 to 40						450.4						423.7
Automated distribution and warehouse equipment			5 to 30						254.7						244.5
Shelving, industrial vending, and equipment			3 to 10						1,141.3						1,036.2
Transportation equipment			3 to 5						87.3						88.7
Construction in progress			—						99.0						132.0
									2,084.6						1,966.9
Less accumulated depreciation									(1,053.9)						(943.7)
Property and equipment, net									$	1,030.7					1,023.2

Our long-lived assets related to the following geographic areas at year end:

			2020						2019						2018
United States			$	1,344.9					1,238.4						947.7
Canada and Mexico			85.1						72.2						43.0
North America			1,430.0						1,310.6						990.7
All other foreign countries			35.1						32.1						14.6
Total long-lived assets			$	1,465.1					1,342.7						1,005.3

Note 5. Accrued Expenses

Accrued expenses at year end consisted of the following:

			2020						2019
Employee payroll and related taxes			$	60.3		(1)			28.7
Employee bonuses and commissions			22.3						17.9
Profit sharing contribution			16.2						13.8
Insurance reserves			41.0						41.1
Indirect taxes			54.3						67.4
Customer promotions and marketing			57.9						52.2
Other			20.1						30.4
Accrued expenses			$	272.1					251.5

(1) Includes the deferral of $30.0 in payroll taxes resulting from the CARES Act in 2020.

Note 6. Stockholders' Equity

Dividends

On January 19, 2021, our board of directors declared a quarterly dividend of $0.28 per share of common stock to be paid in cash on March 3, 2021 to shareholders of record at the close of business on February 3, 2021. We paid aggregate annual cash dividends per share of $1.40, $0.87, and $0.77 in 2020, 2019, and 2018, respectively.

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

Stock Options

Effective January 4, 2021, the compensation committee of our board of directors granted to our employees options to purchase a total of 714,867 shares of our common stock at an exercise strike price of $48.00 per share. The closing stock price on the effective date of the grant was $47.65 per share. On the same date, certain of our non-employee directors elected to forgo all or a portion of the 2021 annual cash retainer in exchange for options to acquire a total of 26,643 shares of our common stock at an exercise price of $48.00 per share.

The following tables summarize the details of options granted under our stock option plans that were still outstanding as of December 31, 2020, and the assumptions used to value those grants. All such grants were effective at the close of business on the date of grant.

			Options Granted						Option Exercise (Strike) Price						Closing Stock Price on Date of Grant						December 31, 2020
Date of Grant			Options Outstanding						Options Exercisable
January 2, 2020			902,263						$38.00						$37.230						874,112						24,964
January 2, 2019			1,316,924						$26.00						$25.705						1,221,248						25,010
January 2, 2018			1,087,936						$27.50						$27.270						886,679						270,457
January 3, 2017			1,529,578						$23.50						$23.475						988,415						378,747
April 19, 2016			1,690,880						$23.00						$22.870						930,043						589,137
April 21, 2015			1,786,440						$21.00						$20.630						596,622						350,526
April 22, 2014			1,910,000						$28.00						$25.265						337,550						185,050
April 16, 2013			410,000						$27.00						$24.625						32,340						13,602
April 17, 2012			2,470,000						$27.00						$24.505						47,748						47,748
Total			13,104,021																		5,914,757						1,885,241

Date of Grant			Risk-free Interest Rate						Expected Life of Option in Years						Expected Dividend Yield						Expected Stock Volatility						Estimated Fair Value of Stock Option
January 2, 2020			1.7%						5.00						2.4%						25.70		%				$6.81
January 2, 2019			2.5%						5.00						2.9%						23.96		%				$4.40
January 2, 2018			2.2%						5.00						2.3%						23.45		%				$5.02
January 3, 2017			1.9%						5.00						2.6%						24.49		%				$4.20
April 19, 2016			1.3%						5.00						2.6%						26.34		%				$4.09
April 21, 2015			1.3%						5.00						2.7%						26.84		%				$3.68
April 22, 2014			1.8%						5.00						2.0%						28.55		%				$4.79
April 16, 2013			0.7%						5.00						1.6%						37.42		%				$6.33
April 17, 2012			0.9%						5.00						1.4%						39.25		%				$6.85

All of the options in the tables above vest and become exercisable over a period of up to eight years. Generally, each option will terminate approximately ten years after the grant date.

The fair value of each share-based option is estimated on the date of grant using a Black-Scholes valuation method that uses the assumptions listed above. The risk-free interest rate is based on the U.S. Treasury rate over the expected life of the option at the time of grant. The expected life is the average length of time over which we expect the employee groups will exercise their options, which is based on historical experience with similar grants. The dividend yield is estimated over the expected life of the option based on our current dividend payout, historical dividends paid, and expected future cash dividends. Expected stock volatilities are based on the movement of our stock price over the most recent historical period equivalent to the expected life of the option.

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

A summary of activities under our stock option plans consisted of the following:

			Options Outstanding						Exercise Price(1)						Remaining Life(2)
Outstanding as of January 1, 2020			6,807,217						$	24.890					6.09
Granted			902,263						$	38.000					9.00
Exercised			(1,630,664)						$	25.180
Cancelled/forfeited			(164,059)						$	27.640
Outstanding as of December 31, 2020			5,914,757						$	26.730					6.22
Exercisable as of December 31, 2020			1,885,241						$	24.230					4.71

			Options Outstanding						Exercise Price(1)						Remaining Life(2)
Outstanding as of January 1, 2019			7,999,264						$	24.765					5.61
Granted			1,316,924						$	26.000					9.00
Exercised			(2,325,073)						$	25.150
Cancelled/forfeited			(183,898)						$	24.630
Outstanding as of December 31, 2019			6,807,217						$	24.890					6.09
Exercisable as of December 31, 2019			2,164,067						$	24.510					4.30

(1) Weighted average exercise price.

(2) Weighted average remaining contractual life in years.

The total intrinsic value of stock options exercised during the years ended December 31, 2020, 2019, and 2018 was $26.7, $20.2, and $4.2, respectively. The intrinsic value represents the difference between the exercise price and fair value of the underlying shares at the date of exercise.

At December 31, 2020, there was $12.6 of total unrecognized stock-based compensation expense related to outstanding unvested stock options granted under the employee stock option plan. This expense is expected to be recognized over a weighted average period of 3.87 years. Any future change in estimated forfeitures will impact this amount. The total grant date fair value of stock options vested under our employee stock option plan during 2020, 2019, and 2018 was $6.1, $5.9, and $5.3, respectively.

Total stock-based compensation expense related to our employee stock option plan was $5.7, $5.7, and $5.1 for 2020, 2019, and 2018, respectively.

Shares Outstanding

Shares of common stock outstanding were as follows:

			2020						2019						2018
Balance at beginning of year			574,128,911						571,803,838						575,183,072
Stock options exercised			1,630,664						2,325,073						620,766
Purchases of common stock			(1,600,000)						—						(4,000,000)
Balance at end of year			574,159,575						574,128,911						571,803,838

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

Earnings Per Share

The following tables present a reconciliation of the denominators used in the computation of basic and diluted earnings per share and a summary of the options to purchase shares of common stock which were excluded from the diluted earnings calculation because they were anti-dilutive:

Reconciliation			2020						2019						2018
Basic weighted average shares outstanding			573,778,761						573,202,152						573,933,834
Weighted shares assumed upon exercise of stock options			1,893,193						1,239,476						391,694
Diluted weighted average shares outstanding			575,671,954						574,441,628						574,325,528

Summary of Anti-dilutive Options Excluded			2020						2019						2018
Options to purchase shares of common stock			846,041						—						3,159,514
Weighted average exercise prices of options			$	38.00					—						27.51

Any dilutive impact summarized above related to periods when the average market price of our stock exceeded the exercise price of the potentially dilutive stock options then outstanding.

Note 7. Retirement Savings Plan

The Fastenal Company and Subsidiaries 401(k) and Employee Stock Ownership Plan covers all of our employees in the United States. Our employees in Canada may participate in a Registered Retirement Savings Plan. The general purpose of both of these plans is to provide additional financial security during retirement by providing employees with an incentive to make regular savings contributions. In addition to the participation of our employees, we make annual profit sharing contributions based on an established formula. The expense recorded under this profit sharing formula was approximately $16.2, $13.8, and $13.0 for 2020, 2019, and 2018, respectively.

Note 8. Income Taxes

Earnings before income taxes were derived from the following sources:

			2020						2019						2018
Domestic			$	1,046.7					977.6						905.0
Foreign			86.0						66.1						82.0
Earnings before income taxes			$	1,132.7					1,043.7						987.0

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

Components of income tax expense (benefit) were as follows:

2020:			Current						Deferred						Total
Federal			$	195.4					1.8						197.2
State			47.5						(0.5)						47.0
Foreign			28.1						1.3						29.4
Income tax expense			$	271.0					2.6						273.6

2019:			Current						Deferred						Total
Federal			$	177.4					11.3						188.7
State			41.6						0.2						41.8
Foreign			22.1						0.2						22.3
Income tax expense			$	241.1					11.7						252.8

2018:			Current						Deferred						Total
Federal			$	143.8					27.4						171.2
State			38.8						0.2						39.0
Foreign			24.1						0.8						24.9
Income tax expense			$	206.7					28.4						235.1

Income tax expense in the accompanying consolidated financial statements differed from the expected expense as follows:

			2020						2019						2018
U.S. federal statutory income tax rate			21.0		%				21.0		%				21.0		%
U.S. federal income tax expense at statutory rate			$	237.9					219.2						207.3
Increase (decrease) attributed to:
State income taxes, net of federal benefit			36.3						32.8						30.2
Transition tax			—						—						1.2
Remeasurement of deferred taxes for Tax Act			—						—						(11.5)
Other, net			(0.6)						0.8						7.9
Total income tax expense			$	273.6					252.8						235.1
Effective income tax rate			24.2		%				24.2		%				23.8		%

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

The tax effects of temporary differences that give rise to deferred income tax assets and liabilities at year end consisted of the following:

			2020						2019
Deferred income tax assets (liabilities):
Inventory costing and valuation methods			$	5.3					4.3
Allowance for credit losses			3.1						2.7
Insurance reserves			9.1						9.1
Customer promotions			2.4						1.9
Stock-based compensation			3.3						3.9
Operating lease liabilities			62.1						62.5
Federal and state benefit of uncertain tax positions			0.8						0.8
Foreign net operating loss and credit carryforwards			1.9						3.2
Foreign valuation allowances			(2.2)						(2.8)
Other, net			(0.3)						(0.0)
Total deferred income tax assets			85.5						85.6
Property and equipment			(117.6)						(114.7)
Operating lease ROU assets			(61.4)						(61.7)
Total deferred income tax liabilities			(179.0)						(176.4)
Deferred income tax liabilities			$	(93.5)					(90.8)

A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits was as follows:

			2020						2019
Balance at beginning of year:			$	8.6					5.3
Increase related to prior year tax positions			0.2						0.2
Decrease related to prior year tax positions			(0.1)						(0.2)
Increase related to current year tax positions			0.8						4.7
Decrease related to statute of limitation lapses			(0.7)						(1.4)
Settlements			—						—
Balance at end of year:			$	8.8					8.6

Included in the liability for gross unrecognized tax benefits is an immaterial amount for interest and penalties, both of which we classify as a component of income tax expense. The amount of gross unrecognized tax benefits that would favorably impact the effective tax rate, if recognized, is not material. We do not anticipate significant changes in total unrecognized tax benefits during the next twelve months. The 2020 and 2019 liability is included in deferred income taxes in the Consolidated Balance Sheets.

We file income tax returns in the United States federal jurisdiction, all states, and various local and foreign jurisdictions. We are no longer subject to income tax examinations by taxing authorities for taxable years before 2017 in the case of United States federal examinations, and with limited exception, before 2015 in the case of foreign, state, and local examinations. During 2020, there were no material changes in unrecognized tax benefits.

In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is zero or very minimal. Accordingly, no deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of our approximately $365.2 of undistributed earnings from foreign subsidiaries to the U.S. as those earnings continue to be permanently reinvested.

On December 22, 2017, the Tax Act was signed into law. The Tax Act made broad and complex changes to the U.S. tax code which include: a lowering of the U.S. federal corporate income tax rate from 35% to 21% effective January 1, 2018, accelerated expensing of qualified capital investments for a specific period, and a transition from a worldwide to a territorial tax system which requires companies to pay a one-time transition tax on certain unrepatriated earnings from foreign subsidiaries.

ASC 740 requires a company to record the effects of a tax law change in the period of enactment which, for us, was fiscal 2017.

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

ASU 2018-05 provides guidance on the application of the Tax Act which includes allowing a company to record a provisional amount during the measurement period for the impacts when the necessary information is not available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. The measurement period ends when the company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year.

The accounting for the income tax effects of the Tax Act was complete in 2018 when the final impact of the transition tax and impacts of accelerating depreciation for certain physical assets were recorded.

Note 9. Operating Leases

We lease space under non-cancelable operating leases for several distribution centers, several manufacturing locations, and certain branch locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. We also lease certain semi-tractors, pick-up trucks, and computer equipment under operating leases.

Certain operating leases for pick-up trucks contain residual value guarantee provisions which would generally become due at the expiration of the operating lease agreement if the fair value of the leased vehicles is less than the guaranteed residual value. The aggregate residual value guarantee related to these leases was approximately $83.1. We believe the likelihood of funding the guarantee obligation under any provision of the operating lease agreements is remote.

The cost components of our operating leases were as follows for the periods ended December 31:

			2020																		2019
			Leased Facilities and Equipment						Leased Vehicles						Total						Leased Facilities and Equipment						Leased Vehicles						Total
Operating lease cost			$	102.5					15.1						117.6						104.0						14.1						118.1
Variable lease cost			7.2						1.5						8.7						10.0						1.9						11.9
Short-term lease cost			—						23.6						23.6						—						27.4						27.4
Total			$	109.7					40.2						149.9						114.0						43.4						157.4

Variable lease costs are excluded from ROU assets and lease liabilities and consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment which are paid based on actual costs incurred by the lessor as well as variable mileage costs related to our leased vehicles.

Maturities of our lease liabilities for all operating leases are as follows as of December 31, 2020:

			Leased Facilities and Equipment						Leased Vehicles						Total
2021			$	86.5					9.3						95.8
2022			62.8						6.9						69.7
2023			42.3						3.7						46.0
2024			24.6						0.3						24.9
2025			12.2						0.1						12.3
2026 and thereafter			5.5						—						5.5
Total lease payments			$	233.9					20.3						254.2
Less: Imputed interest			(8.6)						(0.5)						(9.1)
Present value of lease liabilities			$	225.3					19.8						245.1

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

The weighted average remaining lease terms and discount rates for all of our operating leases were as follows for the periods ended December 31:

Remaining lease term and discount rate:			2020						2019
Weighted average remaining lease term (years)
Leased facilities and equipment			3.47						3.26
Leased vehicles			2.44						2.89
Weighted average discount rate
Lease facilities and equipment			2.37%						3.18%
Leased vehicles			2.39%						2.70%

Supplemental cash flow information related to our operating leases was as follows for the periods ended December 31:

			2020						2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases			$	115.8					117.2
Leased assets obtained in exchange for new operating lease liabilities			99.2						116.1

Note 10. Debt Commitments

Credit Facility, Notes Payable, and Commitments

Debt obligations and letters of credit outstanding at year end consisted of the following:

			Average Interest Rate at December 31, 2020												Debt Outstanding
						Maturity Date						2020						2019
Unsecured revolving credit facility			1.09		%				November 30, 2023						$	—					210.0
Senior unsecured promissory notes payable, Series A			2.00		%				July 20, 2021						40.0						40.0
Senior unsecured promissory notes payable, Series B			2.45		%				July 20, 2022						35.0						35.0
Senior unsecured promissory notes payable, Series C			3.22		%				March 1, 2024						60.0						60.0
Senior unsecured promissory notes payable, Series D			2.66		%				May 15, 2025						75.0						—
Senior unsecured promissory notes payable, Series E			2.72		%				May 15, 2027						50.0						—
Senior unsecured promissory notes payable, Series F			1.69		%				June 24, 2023						70.0						—
Senior unsecured promissory notes payable, Series G			2.13		%				June 24, 2026						25.0						—
Senior unsecured promissory notes payable, Series H			2.50		%				June 24, 2030						50.0						—
Total															405.0						345.0
Less: Current portion of debt															(40.0)						(3.0)
Long-term debt															$	365.0					342.0
Outstanding letters of credit under unsecured revolving credit facility - contingent obligation															$	36.3					36.3

Unsecured Revolving Credit Facility

We have a $700.0 committed unsecured revolving credit facility ('Credit Facility'). The Credit Facility includes a committed letter of credit subfacility of $55.0. Any borrowings outstanding under the Credit Facility for which we have the ability and intent to pay using cash within the next twelve months, will be classified as a current liability. The Credit Facility contains certain financial and other covenants, and our right to borrow under the Credit Facility is conditioned upon, among other things, our compliance with these covenants. We are currently in compliance with these covenants.

Borrowings under the Credit Facility generally bear interest at a rate per annum equal to the London Interbank Offered Rate ('LIBOR') for interest periods of various lengths selected by us, plus 0.95%. We pay a commitment fee for the unused portion of the Credit Facility. This fee is either 0.10% or 0.125% per annum based on our usage of the Credit Facility.

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

Senior Unsecured Promissory Notes Payable

We have issued senior unsecured promissory notes under our master note agreement (the 'Master Note Agreement') in the aggregate principal amount of $405.0. Our aggregate borrowing capacity under the Master Note Agreement is $600.0; however, none of the institutional investors party to that agreement are committed to purchase notes thereunder. There is no amortization of these notes prior to their maturity date and interest is payable quarterly. The notes currently issued under our Master Note Agreement, including the maturity date and fixed interest rate per annum of each series of note, are contained in the table above. The Master Note Agreement contains certain financial and other covenants and we are in compliance with these covenants.

Principal payments required on our outstanding indebtedness, based on the maturity dates defined within our debt arrangements, for the succeeding five years, are displayed in the table below, as of December 31, 2020:

			Principal Payments
2021			$	40.0
2022			35.0
2023			70.0
2024			60.0
2025			75.0
2026 and thereafter			125.0
Total			$	405.0

Note 11. Legal Contingencies

We are involved in certain legal actions. The outcomes of these legal actions are not within our complete control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief, that could require significant expenditures or result in lost revenues. We record a liability for these legal actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. As of December 31, 2020, there were no litigation matters that we consider to be probable or reasonably possible to have a material adverse outcome.

Note 12. Subsequent Events

We evaluated all subsequent event activity and concluded that no subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the Notes to Consolidated Financial Statements, with the exception of the dividend declaration and stock option activities disclosed in Note 6.

Note 13. Selected Quarterly Financial Data (Unaudited)

(Amounts in millions except per share information)

2020:			Net Sales						Gross Profit						Pre-tax Earnings						Net Earnings						Basic Net Earnings per Share			(1)			Diluted Net Earnings per Share			(1)			Cash Dividends Paid per Share of Common Stock
First quarter			$	1,367.0					636.8						269.2						202.6						0.35						0.35						0.250
Second quarter			1,509.0						671.6						313.7						238.9						0.42						0.42						0.250
Third quarter			1,413.3						640.6						287.6						221.5						0.39						0.38						0.250
Fourth quarter			1,358.0						618.8						262.2						196.1						0.34						0.34						0.650
Total			$	5,647.3					2,567.8						1,132.7						859.1						1.50						1.49						1.400

Fastenal Company and Subsidiaries

Notes to Consolidated Financial Statements—Continued

2019:			Net Sales						Gross Profit						Pre-tax Earnings						Net Earnings						Basic Net Earnings per Share			(1)			Diluted Net Earnings per Share			(1)			Cash Dividends Paid per Share of Common Stock
First quarter			$	1,309.3					624.7						257.5						194.1						0.34						0.34						0.215
Second quarter			1,368.4						641.2						271.4						204.6						0.36						0.36						0.215
Third quarter			1,379.1						651.1						278.4						213.5						0.37						0.37						0.220
Fourth quarter			1,276.9						598.4						236.4						178.7						0.31						0.31						0.220
Total			$	5,333.7					2,515.4						1,043.7						790.9						1.38						1.38						0.870

(1) Amounts may not foot due to rounding difference.

End of Notes to Consolidated Financial Statements