TRACTOR SUPPLY CO DE
For the period ended Dec 30, 2023. Filed Feb 23, 2024.
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FY2023 · Filed Feb 23, 2024
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Note
Note 12 –Commitments and Contingencies
Contractual Commitments
At December 30, 2023, the Company had contractual commitments of approximately $44.8 million, of which $13.0 million is related to the construction of new distribution centers, and the remaining is related to purchase obligations such as inventory purchases and marketing-related contracts. The Company doesnot have material contractual commitments related to construction projects extending greater than twelve months. In addition, the Company had $320.5 million legally binding minimum lease payments for leases signed, but not yet commenced.
Letters of Credit
At December 30, 2023, there were $58.3 million outstanding letters of credit.
Litigation
In March 2023, U.S. Customs and Border Protection (“U.S. Customs”) sent the Company a notice that proposed to classify certain of our imports from China as subject to anti-dumping and countervailing (“AD/CV”) duties. We responded to U.S. Customs outlining the reasons for our position that these imports are not subject to AD/CV duties. The case was dismissed during the fourth quarter of 2023 with no material impact to the Company’s Consolidated Financial Statements.
The Company is involved in various litigation matters arising in the ordinary course of business. The Company believes that, based upon information currently available, any estimated loss related to such matters has been adequately provided for in accrued liabilities to the extent probable and reasonably estimable. Accordingly, the Company currently expects these matters will be resolved without material adverse effect on its consolidated financial position, results of operations or cash flows. However, litigation and other legal matters involve an element of uncertainty. Future developments in such matters, including adverse decisions or settlements or resulting required changes to the Company’s business operations, could affect our consolidated operating results when resolved in future periods or could result in liability or other amounts material to the Company’s Consolidated Financial Statements.
Note 13 –Segment Reporting
The Company hasone reportable segment which is the retail sale of products that support the rural lifestyle. The following table indicates the percentage of net sales represented by each major product category during fiscal 2023, 2022, and 2021:
| Percent of Net Sales | |||
|---|---|---|---|
| Fiscal Year | |||
| Product Category: | 2023 | 2022 | 2021 |
| Livestock, Equine & Agriculture(a) | 27% | 28% | 27% |
| Companion Animal(b) | 25 | 23 | 21 |
| Seasonal & Recreation(c) | 22 | 22 | 23 |
| Truck, Tool, & Hardware(d) | 16 | 16 | 18 |
| Clothing, Gift, & Décor(e) | 10 | 11 | 11 |
| Total | 100% | 100% | 100% |
Note: Net sales by major product categories for prior periods have been reclassified to conform to the current year presentation.
(a) Includes livestock and equine feed & equipment, poultry, fencing, and sprayers & chemicals.
(b) Includes food, treats and equipment for dogs, cats, and other small animals as well as dog wellness.
(c) Includes tractor & rider, lawn & garden, bird feeding, power equipment, and other recreational products.
(d) Includes truck accessories, trailers, generators, lubricants, batteries, and hardware and tools.
(e) Includes clothing, footwear, toys, snacks, and decorative merchandise.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.