Item 6. Selected Financial Data

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Item 6. Selected Financial Data

FIVE YEAR SELECTED FINANCIAL AND OPERATING HIGHLIGHTS (a)(b)

The following selected financial data is derived from the Consolidated Financial Statements of Tractor Supply Company and provides summary historical financial information for the fiscal periods ended and as of the dates indicated (in thousands, except per share amounts and selected operating and other data):


	2019			2018			2017			2016			2015
	(52 weeks)			(52 weeks)			(52 weeks)			(53 weeks)			(52 weeks)
Operating Results:
Net sales	$	8,351,931		$	7,911,046		$	7,256,382		$	6,779,579		$	6,226,507
Gross profit	2,871,770			2,702,528			2,491,965			2,325,202			2,143,174
Selling, general and administrative expenses	1,932,572			1,823,440			1,639,749			1,488,164			1,369,097
Depreciation and amortization	195,978			177,351			165,834			142,958			123,569
Operating income	743,220			701,737			686,382			694,080			650,508
Interest expense, net	19,843			18,352			13,859			5,810			2,891
Income before income taxes	723,377			683,385			672,523			688,270			647,617
Income tax expense	161,023			151,028			249,924			251,150			237,222
Net income	$	562,354		$	532,357		$	422,599		$	437,120		$	410,395
Net income per share – basic (c)	$	4.70		$	4.34		$	3.31		$	3.29		$	3.03
Net income per share – diluted (c)	$	4.66		$	4.31		$	3.30		$	3.27		$	3.00
Weighted average shares – diluted (c)	120,743			123,471			128,204			133,813			136,845
Dividends declared per common share outstanding	$	1.36		$	1.20		$	1.05		$	0.92		$	0.76
Operating Data (percent of net sales):
Gross margin	34.4		%	34.2		%	34.3		%	34.3		%	34.4		%
Selling, general and administrative expenses	23.1		%	23.0		%	22.6		%	22.0		%	22.0		%
Operating income	8.9		%	8.9		%	9.4		%	10.2		%	10.4		%
Net income	6.7		%	6.7		%	5.8		%	6.4		%	6.6		%
Store, Sales, and Other Data:
Stores open at end of year	2,024			1,940			1,853			1,738			1,488
Comparable store sales increase (d)	2.7		%	5.1		%	2.7		%	1.6		%	3.1		%
New store sales (as a % of net sales) (e)	2.8		%	3.8		%	5.6		%	5.6		%	5.6		%
Average transaction value	$	46.89		$	45.85		$	44.61		$	44.42		$	44.87
Comparable store average transaction value increase (decrease) (c)	2.4		%	2.8		%	0.5		%	(0.9)		%	(0.2)		%
Comparable store average transaction count increase (d)	0.3		%	2.2		%	2.2		%	2.6		%	3.3		%
Total selling square footage (000’s)	30,854			29,571			28,180			26,511			23,938
Total team members	33,500			30,500			29,300			26,000			23,000
Capital expenditures (000’s)	$	217,450		$	278,530		$	250,401		$	226,017		$	236,496
Balance Sheet Data (at end of period):
Average inventory per store (f)	$	751.3		$	766.8		$	735.4		$	741.7		$	820.1
Inventory turns	3.23			3.27			3.24			3.19			3.23
Working capital	$	540,287		$	856,292		$	806,154		$	740,615		$	768,177
Total assets (g)	$	5,289,268		$	3,085,262		$	2,868,769		$	2,674,942		$	2,370,826
Long-term debt, less current portion (h)	$	396,869		$	410,370		$	433,686		$	289,769		$	166,992
Operating lease liabilities, less current portion (g)	$	2,001,162		$	—		$	—		$	—		$	—
Stockholders’ equity	$	1,567,123		$	1,561,820		$	1,418,673		$	1,453,218		$	1,393,294

(a) Our fiscal year includes 52 or 53 weeks and ends on the last Saturday of the calendar year. References to fiscal year mean the year in which that fiscal year ended. Fiscal year 2016 consisted of 53 weeks while all other fiscal years presented consisted of 52 weeks.

(b) Beginning in the fourth quarter ended December 31, 2016, selected financial and operating information includes the consolidation of Petsense, unless otherwise noted.

(c) Basic net income per share is calculated based on the weighted average number of common shares outstanding applied to net income. Diluted net income per share is calculated using the treasury stock method for stock options, restricted stock units, and performance-based restricted share units.

(d) Comparable store metrics are calculated on an annual basis using sales generated from all stores open at least one year and all online sales, excluding certain adjustments to net sales. Stores closed during the year are removed from our comparable store metrics calculations. Stores relocated during the years being compared are not removed from our comparable store metrics. If the effect of relocated stores on our comparable store metrics becomes material, we would remove relocated stores from the calculations. Acquired Petsense stores are considered comparable stores beginning in the fourth quarter of fiscal 2017.

(e) New stores sales metrics are based on stores open for less than one year.

(f) Assumes average inventory cost, excluding inventory in-transit.

(g) As a result of the adoption of new lease accounting guidance in the first quarter of fiscal 2019, we recognized lease assets and liabilities for operating leases. Prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting policies. For additional information related to the impact of adopting this new accounting guidance, see Note 1, Note 6, and Note 14 to the Consolidated Financial Statements.

(h) Long-term debt includes amounts outstanding under the Company’s debt facilities and finance lease obligations, excluding the current portions.

Index

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