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Business Combinations and Asset Acquisitions | 6 Months Ended
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Jul. 01, 2023
Business Combination and Asset Acquisition [Abstract] |
Business Combination Disclosure [Text Block] | Acquisition of Orscheln Farm and Home, LLC and Related DivestituresOn October 12, 2022, the Company completed its acquisition of Orscheln, which expands the Company's footprint in the Midwest part of the United States. Pursuant to the agreement governing the acquisition, the Company acquired 100% of the equity interest in Orscheln, inclusive of 166 Orscheln stores, the Orscheln corporate headquarters, and the Orscheln distribution center. The total purchase consideration was $393.4 million, exclusive of cash acquired. The acquisition was financed with cash-on-hand and Revolving Credit Facility borrowings under the 2022 Senior Credit Facility (as defined below). In order to obtain regulatory approval for the Orscheln acquisition, the Federal Trade Commission required the Company to divest of 85 stores, which were sold to two buyers, Bomgaars Supply, Inc. (“Bomgaars”) (73 stores) and Buchheit Enterprises, Inc. (12 stores), on October 12, 2022, concurrently with the closing of the acquisition. Net proceeds from the store divestitures were $69.4 million. In addition, the Company has agreed to sell the Orscheln corporate headquarters and distribution center to Bomgaars for $10 million within 15 months after the closing of the acquisition. The purchase consideration and preliminary estimated fair value of Orscheln’s net assets acquired on October 12, 2022 are shown below and remain subject to revisions as additional information is obtained about the facts and circumstances that existed at the valuation date. The assets and liabilities of the 85 divested stores, along with the Orscheln corporate headquarters and the Orscheln distribution center, are shown as held for sale in the fair value of assets acquired and liabilities assumed.
(in thousands) |  | Amounts Recognized as of Acquisition Date |  | Measurement Period Adjustments |  | Amounts Recognized as of July 1, 2023
Fair value of assets acquired |  |  |  |  |  |
Cash and cash equivalents |  | $ | 6,935 |  |  | $ | — |  |  | $ | 6,935 |
Accounts receivable |  | 277 |  |  | — |  |  | 277 |
Inventories |  | 168,663 |  |  | (14,919) |  |  | 153,744 |
Prepaid expenses and other current assets |  | 7,222 |  |  | 524 |  |  | 7,746 |
Property and equipment |  | 13,328 |  |  | (810) |  |  | 12,518 |
Lease right of use assets |  | 82,755 |  |  | — |  |  | 82,755 |
Deferred income taxes |  | 18,481 |  |  | 2,534 |  |  | 21,015 |
Assets held for sale |  | 173,554 |  |  | — |  |  | 173,554 |
Other assets |  | 160 |  |  | (13) |  |  | 147 |
Less: liabilities assumed |  |  |  |  |  |
Accounts payable |  | 80,323 |  |  | 344 |  |  | 80,667 |
Accrued liabilities |  | 20,291 |  |  | 5,108 |  |  | 25,399 |
Short-term lease liabilities |  | 5,986 |  |  | — |  |  | 5,986 |
Long-term lease liabilities |  | 70,626 |  |  | — |  |  | 70,626 |
Liabilities held for sale |  | 94,190 |  |  | — |  |  | 94,190 |
Goodwill |  | 197,742 |  |  | 13,826 |  |  | 211,568 |
Total fair value of considerations transferred |  | $ | 397,700 |  |  | $ | (4,310) |  |  | $ | 393,391 |
Note: Amounts may not sum to totals due to rounding. The $211.6 million goodwill shown above represents the expected synergies from combining the operations of Orscheln with Tractor Supply stores and the expanded footprint that Orscheln brings in the Midwest part of the United States. Approximately $130.3 million of this goodwill is deductible for income tax purposes.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent + Details
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