Cover Page
Cover Page - shares | 8 Months Ended | |
May 09, 2020 | Jun. 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | May 9, 2020 | |
Entity File Number | 1-10714 | |
Entity Registrant Name | AUTOZONE INC | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 62-1482048 | |
Entity Address, Address Line One | 123 South Front Street | |
Entity Address, City or Town | Memphis | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 38103 | |
City Area Code | 901 | |
Local Phone Number | 495-6500 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | AZO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,359,376 | |
Current Fiscal Year End Date | --08-29 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000866787 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 09, 2020 | Aug. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 509,118 | $ 176,300 |
Accounts receivable | 266,920 | 308,995 |
Merchandise inventories | 4,440,602 | 4,319,113 |
Other current assets | 181,353 | 224,277 |
Total current assets | 5,397,993 | 5,028,685 |
Property and equipment: | ||
Property and equipment | 7,899,183 | 7,713,196 |
Less: Accumulated depreciation and amortization | (3,514,597) | (3,314,445) |
Property and equipment, net | 4,384,586 | 4,398,751 |
Operating lease right-of-use assets | 2,613,849 | 0 |
Goodwill | 302,645 | 302,645 |
Deferred income taxes | 23,345 | 26,861 |
Other long-term assets | 179,713 | 138,971 |
Other long-term assets, total | 3,119,552 | 468,477 |
Assets | 12,902,131 | 9,895,913 |
Current liabilities: | ||
Accounts payable | 4,806,329 | 4,864,912 |
Current portion of operating lease liabilities | 236,759 | 0 |
Accrued expenses and other | 687,991 | 621,932 |
Income taxes payable | 37,997 | 25,297 |
Total current liabilities | 5,769,076 | 5,512,141 |
Long-term debt | 5,418,272 | 5,206,344 |
Operating lease liabilities, less current portion | 2,481,280 | 0 |
Deferred income taxes | 325,919 | 311,980 |
Other long-term liabilities | 540,320 | 579,299 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, authorized 1,000 shares; no shares issued | 0 | 0 |
Common stock, par value $.01 per share, authorized 200,000 shares; 23,669 shares issued and 23,348 shares outstanding as of May 9, 2020; 25,445 shares issued and 24,038 shares outstanding as of August 31, 2019 | 237 | 254 |
Additional paid-in capital | 1,259,457 | 1,264,448 |
Retained deficit | (2,191,427) | (1,305,347) |
Accumulated other comprehensive loss | (344,516) | (269,322) |
Treasury stock, at cost | (356,487) | (1,403,884) |
Total stockholders' deficit | (1,632,736) | (1,713,851) |
Liabilities and Stockholders' Deficit | $ 12,902,131 | $ 9,895,913 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | May 09, 2020 | Aug. 31, 2019 |
Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 23,669,000 | 25,445,000 |
Common stock, shares outstanding | 23,348,000 | 24,038,000 |
Preferred Stock [Member] | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 09, 2020 | May 04, 2019 | May 09, 2020 | May 04, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,779,299 | $ 2,783,006 | $ 8,085,999 | $ 7,875,307 |
Cost of sales, including warehouse and delivery expenses | 1,288,651 | 1,290,986 | 3,728,221 | 3,640,706 |
Gross profit | 1,490,648 | 1,492,020 | 4,357,778 | 4,234,601 |
Operating, selling, general and administrative expenses | 998,975 | 944,497 | 2,958,144 | 2,799,239 |
Operating profit | 491,673 | 547,523 | 1,399,634 | 1,435,362 |
Interest expense, net | 47,450 | 43,239 | 135,528 | 123,608 |
Income before income taxes | 444,223 | 504,284 | 1,264,106 | 1,311,754 |
Income tax expense | 101,327 | 98,335 | 271,591 | 259,762 |
Net income | $ 342,896 | $ 405,949 | $ 992,515 | $ 1,051,992 |
Weighted average shares for basic earnings per share | 23,386 | 24,836 | 23,610 | 25,210 |
Effect of dilutive stock equivalents | 442 | 558 | 550 | 501 |
Weighted average shares for diluted earnings per share | 23,828 | 25,394 | 24,160 | 25,711 |
Basic earnings per share | $ 14.66 | $ 16.35 | $ 42.04 | $ 41.73 |
Diluted earnings per share | $ 14.39 | $ 15.99 | $ 41.08 | $ 40.92 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | |||
May 09, 2020 | May 04, 2019 | May 09, 2020 | May 04, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 342,896 | $ 405,949 | $ 992,515 | $ 1,051,992 | |
Other comprehensive loss: | |||||
Foreign currency translation adjustments | (104,920) | (1,409) | (64,702) | (2,650) | |
Unrealized gains on marketable debt securities, net of taxes | [1] | 1,160 | 246 | 1,150 | 677 |
Net derivative activities, net of taxes | [2] | (12,419) | 388 | (11,642) | 1,166 |
Total other comprehensive loss | (116,179) | (775) | (75,194) | (807) | |
Comprehensive income | $ 226,717 | $ 405,174 | $ 917,321 | $ 1,051,185 | |
[1] | Unrealized gains on marketable debt securities are presented net of taxes of $309 in fiscal 2020 and $65 in fiscal 2019 for the twelve weeks ended and $306 in fiscal 2020 and $180 in fiscal 2019 for the thirty-six weeks ended. | ||||
[2] | Net derivative activities are presented net of tax benefits of $3,913 in fiscal 2020 and net of taxes of $120 in fiscal 2019 for the twelve weeks ended and net of tax benefits of $3,673 in fiscal 2020 and net of taxes of $360 in fiscal 2019 for the thirty-six weeks ended. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 09, 2020 | May 04, 2019 | May 09, 2020 | May 04, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains on marketable debt securities, net of taxes | $ 309 | $ 65 | $ 306 | $ 180 |
Net derivative activities, tax (benefit) | $ (3,913) | $ 120 | $ (3,673) | $ 360 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 8 Months Ended | |
May 09, 2020 | May 04, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 992,515 | $ 1,051,992 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment and intangibles | 272,115 | 251,118 |
Amortization of debt origination fees | 6,572 | 5,506 |
Deferred income taxes | 24,281 | 17,111 |
Share-based compensation expense | 32,251 | 31,529 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 36,843 | (21,616) |
Merchandise inventories | (175,284) | (384,883) |
Accounts payable and accrued expenses | 20,907 | 259,629 |
Income taxes payable | 12,334 | 10,585 |
Other, net | 80,574 | 65,664 |
Net cash provided by operating activities | 1,303,108 | 1,286,635 |
Cash flows from investing activities: | ||
Capital expenditures | (273,888) | (313,847) |
Purchase of marketable debt securities | (82,525) | (38,855) |
Proceeds from sale of marketable debt securities | 106,690 | 61,052 |
Proceeds from disposal of capital assets and other, net | 1,800 | 6,358 |
Net cash used in investing activities | (247,923) | (285,292) |
Cash flows from financing activities: | ||
Net payments of commercial paper | (1,030,000) | (348,500) |
Proceeds from issuance of debt | 1,250,000 | 750,000 |
Repayment of debt | (250,000) | |
Net proceeds from sale of common stock | 56,306 | 164,927 |
Purchase of treasury stock | (930,903) | (1,313,116) |
Repayment of principal portion of finance lease liabilities | (43,776) | (38,428) |
Other, net | (13,779) | (8,360) |
Net cash used in financing activities | (712,152) | (1,043,477) |
Effect of exchange rate changes on cash | (10,215) | (1,632) |
Net increase (decrease) in cash and cash equivalents | 332,818 | (43,766) |
Cash and cash equivalents at beginning of period | 176,300 | 217,824 |
Cash and cash equivalents at end of period | $ 509,118 | $ 174,058 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Deficit | Accumulated Other Comprehensive Loss | Treasury Stock [Member] | Total |
Balance at Aug. 25, 2018 | $ 275 | $ 1,155,426 | $ (1,208,824) | $ (235,805) | $ (1,231,427) | $ (1,520,355) |
Balance, Shares at Aug. 25, 2018 | 27,530,000 | |||||
Cumulative effect of adoption of ASU 2014-09 at Aug. 25, 2018 | $ 0 | 0 | (6,773) | 0 | 0 | (6,773) |
Balance at August 25, 2018, as adjusted at Aug. 25, 2018 | $ 275 | 1,155,426 | (1,215,597) | (235,805) | (1,231,427) | (1,527,128) |
Balance at August 25, 2018, as adjusted, shares at Aug. 25, 2018 | 27,530,000 | |||||
Net income | $ 0 | 0 | 1,051,992 | 0 | 0 | 1,051,992 |
Total other comprehensive gain (income) | 0 | 0 | 0 | (807) | 0 | (807) |
Retirement of treasury shares | $ (26) | (125,443) | (1,706,971) | 0 | 1,832,440 | 0 |
Retirement of treasury shares, shares | (2,563,000) | |||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (1,313,116) | (1,313,116) |
Issuance of common stock under stock options and stock purchase plans | $ 5 | 171,289 | 0 | 0 | 0 | 171,294 |
Issuance of common stock under stock options and stock purchase plans, Shares | 418,000 | |||||
Share-based compensation expense | $ 0 | 28,252 | 0 | 0 | 0 | 28,252 |
Balance at May. 04, 2019 | $ 254 | 1,229,524 | (1,870,576) | (236,612) | (712,103) | (1,589,513) |
Balance, shares at May. 04, 2019 | 25,385,000 | |||||
Balance at Feb. 09, 2019 | $ 253 | 1,163,831 | (2,276,525) | (235,837) | (246,084) | (1,594,362) |
Balance, Shares at Feb. 09, 2019 | 25,259,000 | |||||
Net income | $ 0 | 0 | 405,949 | 0 | 0 | 405,949 |
Total other comprehensive gain (income) | 0 | 0 | 0 | (775) | 0 | (775) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (466,019) | (466,019) |
Issuance of common stock under stock options and stock purchase plans | $ 1 | 57,347 | 0 | 0 | 0 | 57,348 |
Issuance of common stock under stock options and stock purchase plans, Shares | 126,000 | |||||
Share-based compensation expense | $ 0 | 8,346 | 0 | 0 | 0 | 8,346 |
Balance at May. 04, 2019 | $ 254 | 1,229,524 | (1,870,576) | (236,612) | (712,103) | (1,589,513) |
Balance, shares at May. 04, 2019 | 25,385,000 | |||||
Balance at Aug. 31, 2019 | $ 254 | 1,264,448 | (1,305,347) | (269,322) | (1,403,884) | (1,713,851) |
Balance, Shares at Aug. 31, 2019 | 25,445,000 | |||||
Net income | $ 0 | 0 | 992,515 | 0 | 0 | 992,515 |
Total other comprehensive gain (income) | 0 | 0 | 0 | (75,194) | 0 | (75,194) |
Retirement of treasury shares | $ (19) | (99,686) | (1,878,595) | 0 | 1,978,300 | 0 |
Retirement of treasury shares, shares | (1,912,000) | |||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (930,903) | (930,903) |
Issuance of common stock under stock options and stock purchase plans | $ 2 | 62,899 | 0 | 0 | 0 | 62,901 |
Issuance of common stock under stock options and stock purchase plans, Shares | 136,000 | |||||
Share-based compensation expense | $ 0 | 31,796 | 0 | 0 | 0 | 31,796 |
Balance at May. 09, 2020 | $ 237 | 1,259,457 | (2,191,427) | (344,516) | (356,487) | (1,632,736) |
Balance, shares at May. 09, 2020 | 23,669,000 | |||||
Balance at Feb. 15, 2020 | $ 237 | 1,241,734 | (2,534,323) | (228,337) | (190,430) | (1,711,119) |
Balance, Shares at Feb. 15, 2020 | 23,653,000 | |||||
Net income | $ 0 | 0 | 342,896 | 0 | 0 | 342,896 |
Total other comprehensive gain (income) | 0 | 0 | 0 | (116,179) | 0 | (116,179) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (166,057) | (166,057) |
Issuance of common stock under stock options and stock purchase plans | $ 0 | 7,599 | 0 | 0 | 0 | 7,599 |
Issuance of common stock under stock options and stock purchase plans, Shares | 16,000 | |||||
Share-based compensation expense | $ 0 | 10,124 | 0 | 0 | 0 | 10,124 |
Balance at May. 09, 2020 | $ 237 | $ 1,259,457 | $ (2,191,427) | $ (344,516) | $ (356,487) | $ (1,632,736) |
Balance, shares at May. 09, 2020 | 23,669,000 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Parenthetical) - shares | 3 Months Ended | 8 Months Ended | 268 Months Ended | ||
May 09, 2020 | May 04, 2019 | May 09, 2020 | May 04, 2019 | May 09, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||||
Purchase of treasury stock, shares | 156,000 | 472,000 | 826,002 | 1,548,000 | 147,700,000 |
General
General | 8 Months Ended |
May 09, 2020 | |
General [Abstract] | |
General | Note A – General The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission’s (the “SEC”) rules and regulations. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. For further information, refer to the consolidated financial statements and related notes included in the AutoZone, Inc. (“AutoZone” or the “Company”) Annual Report on Form 10-K for the year ended August 31, 2019. Operating results for the twelve and thirty-six weeks ended May 9, 2020 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 29, 2020. Each of the first three quarters of AutoZone’s fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarter of fiscal 2020 has 16 weeks and fiscal 2019 had 17 weeks. COVID-19 Impact The outbreak of a novel strain of the coronavirus (“COVID-19”), which was declared a global pandemic on March 11, 2020 by the World Health Organization, has led to adverse impacts on the national and global economy. While sales were initially negatively impacted and store operating hours were reduced, virtually all our stores have remained open. Sales have since recovered and store operating hours have been reinstated; however, we are unable to accurately predict the ultimate impact that COVID-19 will have on our business and financial condition. During the third quarter of 2020, the Company provided additional paid time off for both full-time and part-time eligible hourly employees. During the quarter, we invested in supplies for the protection of our employees and customers. These expanded benefits, supply costs and other COVID-19 related costs resulted in approximately Additionally, to strengthen our financial position and ability to be responsive during this ever-changing environment, the Company issued $1.250 billion in Senior notes and closed on a new 364-day Senior unsecured revolving credit facility in the principal amount of $750 million. Refer to “Note G – Financing” for details. Recently Adopted Accounting Pronouncements: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) The Company adopted this standard and its amendments as of September 1, 2019, using the modified retrospective transition method. Under this method, existing leases were recorded at the adoption date, comparative periods were not restated and prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for the prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of prior lease identification under Accounting Standards Codification (“ASC”) Topic 840. The Company made the accounting policy election for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term. The Company also elected the practical expedient to not separate lease components from the non-lease components (typically fixed common-area maintenance costs at its retail store locations) for all classes of leased assets, except vehicles. The Company chose not to elect the hindsight practical expedient to determine the reasonably certain lease term for existing leases. Adoption of the leasing standard resulted in operating lease right-of-use assets of approximately $2.5 billion and operating lease liabilities of approximately $2.7 billion as of September 1, 2019. Existing prepaid and deferred rent were netted and recorded as an offset to our gross operating lease right-of-use assets. There was no adjustment to the opening balance of retained earnings upon adoption. The standard did not have a material impact on the Company’s Condensed Consolidated Statements of Income, Condensed Consolidated Statements of Cash Flows or covenant compliance under its existing credit agreement. Refer to “Note L – Leases”. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Recently Issued Accounting Pronouncements: In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments Credit Losses Further, the new credit loss model will affect how entities estimate their allowance for loss receivables that are current with respect to their payment terms. ASU 2016-13 will be effective for the Company at the beginning of its fiscal 2021 year. The Company will adopt this standard beginning with its first quarter ending November 21, 2020. The Company is currently evaluating the new guidance to determine the impact the adoption will have on the Company’s Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets or Condensed Consolidated Statements of Cash Flows. |
Share-Based Payments
Share-Based Payments | 8 Months Ended |
May 09, 2020 | |
Share-Based Payments [Abstract] | |
Share-Based Payments | Note B – Share-Based Payments AutoZone maintains several equity incentive plans, which provide equity-based compensation to non-employee directors and eligible employees for their service to AutoZone, its subsidiaries or affiliates. The Company recognizes compensation expense for share-based payments based on the fair value of the awards at the grant date. Share-based payments include stock option grants, restricted stock grants, restricted stock unit grants, stock appreciation rights, discounts on shares sold to employees under share purchase plans and other awards. Additionally, directors’ fees are paid in restricted stock units with value equivalent to the value of shares of common stock as of the grant date. The change in fair value of liability-based stock awards is also recognized in share-based compensation expense. Stock Options: The Company made stock option grants of 188,324 shares during the thirty-six week period ended May 9, 2020 and granted options to purchase 172,750 shares during the comparable prior year period. The Company grants options to purchase common stock to certain of its employees under its plan at prices equal to the market value of the stock on the date of grant. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the award and each vesting date. The weighted average fair value of the stock option awards granted during the thirty-six week periods ended May 9, 2020 and May 4, 2019, using the Black-Scholes-Merton multiple-option pricing valuation model, was $252.39 and $208.37 per share, respectively, using the following weighted average key assumptions: Thirty-Six Weeks Ended May 9, May 4, 2020 2019 Expected price volatility 22 % 21 % Risk-free interest rate 1.4 % 3.0 % Weighted average expected lives (in years) 5.5 5.6 Forfeiture rate 10 % 10 % Dividend yield 0 % 0 % During the thirty-six week period ended May 9, 2020, 121,236 stock options were exercised at a weighted average exercise price of $480.39. In the comparable prior year period, 408,657 stock options were exercised at a weighted average exercise price of $412.75. Restricted Stock Units: Restricted stock unit awards are valued at the market price of a share of the Company’s stock on the date of grant. Grants of employee restricted stock units vest ratably on an annual basis over a four-year service period and are payable in shares of common stock on the vesting date. Compensation expense for grants of employee restricted stock units is recognized on a straight-line basis over the four-year service period, less estimated forfeitures, which are consistent with stock option forfeiture assumptions. Grants of non-employee director restricted stock units are made and expensed on January 1 of each year, as they vest immediately. As of May 9, 2020, total unrecognized stock-based compensation expense related to nonvested restricted stock unit awards, net of estimated forfeitures, was approximately $10.1 million, before income taxes, which we expect to recognize over an estimated weighted average period of 2.9 years. Transactions related to restricted stock units for the thirty-six weeks ended May 9, 2020 were as follows: Weighted- Number Average Grant of Shares Date Fair Value Nonvested at August 31, 2019 10,049 $ 773.61 Granted 8,735 1,086.61 Vested (4,183) 945.58 Canceled or forfeited (313) 938.64 Nonvested at May 9, 2020 14,288 $ 911.01 Total share-based compensation expense (a component of Operating, selling, general and administrative expenses) was $10.1 million for the twelve week period ended May 9, 2020, and $10.0 million for the comparable prior year period. Total share-based compensation expense was $32.3 million for the thirty-six week period ended May 9, 2020, and $31.5 million for the comparable prior year period. For the twelve week period ended May 9, 2020, 187,965 stock options were excluded from the diluted earnings per share computation because they would have been anti-dilutive. For the comparable prior year period, 4,177 anti-dilutive shares were excluded from the dilutive earnings per share computation. There were 161,321 anti-dilutive shares excluded from the diluted earnings per share computation for the thirty-six week period ended May 9, 2020, and 149,648 anti-dilutive shares excluded for the comparable prior year period. See AutoZone’s Annual Report on Form 10-K for the year ended August 31, 2019, for a discussion regarding the methodology used in developing AutoZone’s assumptions to determine the fair value of the option awards and a description of AutoZone’s Amended and Restated 2011 Equity Incentive Award Plan, the 2011 Director Compensation Program and the 2014 Director Compensation Plan. |
Fair Value Measurements
Fair Value Measurements | 8 Months Ended |
May 09, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note C – Fair Value Measurements The Company defines fair value as the price received to transfer an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with ASC 820, Fair Value Measurements and Disclosures Level 1 inputs Level 2 inputs Level 3 inputs Financial Assets & Liabilities Measured at Fair Value on a Recurring Basis The Company’s assets and liabilities measured at fair value on a recurring basis were as follows: May 9, 2020 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 34,381 $ — $ — $ 34,381 Other long-term assets 70,726 11,110 — 81,836 $ 105,107 $ 11,110 $ — $ 116,217 Accrued expenses and other $ — $ (16,842) $ — $ (16,842) August 31, 2019 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 65,344 $ 2,614 $ — $ 67,958 Other long-term assets 65,573 5,395 — 70,968 $ 130,917 $ 8,009 $ — $ 138,926 At May 9, 2020, the fair value measurement amounts for assets and liabilities recorded in the accompanying Consolidated Balance Sheets consisted of short-term marketable debt securities of $34.4 million, which are included within Other current assets; long-term marketable debt securities of $81.8 million, which are included in Other long-term assets; and cash flow hedging instruments of $16.8 million, which are included within Accrued expenses and other. The Company’s marketable debt securities are typically valued at the closing price in the principal active market as of the last business day of the quarter or through the use of other market inputs relating to the securities, including benchmark yields and reported trades. The fair values of derivative assets and liabilities traded in the over-the-counter markets are determined using quantitative models that require the use of multiple inputs including interest rates, prices and indices to generate pricing and volatility factors. Financial Instruments not Recognized at Fair Value The Company has financial instruments, including cash and cash equivalents, accounts receivable, other current assets and accounts payable. The carrying amounts of these financial instruments approximate fair value because of their short maturities. A discussion of the carrying values and fair values of the Company’s debt is included in “Note G – Financing.” |
Marketable Debt Securities
Marketable Debt Securities | 8 Months Ended |
May 09, 2020 | |
Marketable Debt Securities [Abstract] | |
Marketable Debt Securities | Note D – Marketable Debt Securities The Company’s basis for determining the cost of a security sold is the “Specific Identification Model.” Unrealized gains (losses) on marketable debt securities are recorded in Accumulated other comprehensive loss. The Company’s available-for-sale marketable debt securities consisted of the following: May 9, 2020 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 52,423 $ 715 $ (28) $ 53,110 Government bonds 45,683 1,468 (13) 47,138 Mortgage-backed securities 2,958 58 — 3,016 Asset-backed securities and other 12,944 70 (61) 12,953 $ 114,008 $ 2,311 $ (102) $ 116,217 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 36,998 $ 29 $ (19) $ 37,008 Government bonds 45,741 763 — 46,504 Mortgage-backed securities 2,089 2 (15) 2,076 Asset-backed securities and other 53,345 — (7) 53,338 $ 138,173 $ 794 $ (41) $ 138,926 The debt securities held at May 9, 2020, had effective maturities ranging from less than one year to approximately three years. The Company did not realize any material gains or losses on its marketable debt securities during the thirty-six week period ended May 9, 2020. The Company holds six securities that are in an unrealized loss position of approximately $102 thousand at May 9, 2020. The Company has the intent and ability to hold these investments until recovery of fair value or maturity and does not deem the investments to be impaired on an other than temporary basis. In evaluating whether the securities are deemed to be impaired on an other than temporary basis, the Company considers factors such as the duration and severity of the loss position, the credit worthiness of the investee, the term to maturity and the intent and ability to hold the investments until maturity or until recovery of fair value. Included above in total available-for-sale marketable debt securities are $30.0 million of marketable debt securities transferred by the Company’s insurance captive to a trust account to secure its obligations to an insurance company related to future workers’ compensation and casualty losses. |
Derivative Financial Instrument
Derivative Financial Instruments | 8 Months Ended |
May 09, 2020 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note E – Derivative Financial Instruments During the third quarter of fiscal 2020, the Company entered into two treasury rate locks, each with a notional amount of $300 million. These agreements were cash flow hedges used to manage our exposure to interest rate volatility associated with anticipated debt financing. The fixed rates for both treasury rate locks are 1.0% and are benchmarked based on the 10-year U.S. treasury notes. These outstanding cash flow derivative instruments are designed as cash flow hedges and deemed highly effective both at inception and at May 9, 2020. Both treasury rate locks expire on August 6, 2020. During the quarter ended May 9, 2020, the Company recorded $16.8 million of pre-tax losses in unrealized losses on derivative activity on our condensed consolidated statements of comprehensive loss related to the change in fair value since inception. At May 9, 2020, $12.8 million was recorded in accrued expenses and other on our condensed consolidated balance sheets related to these instruments. At May 9, 2020, the Company had $4.1 million recorded in Accumulated other comprehensive loss related to realized losses associated with terminated interest rate swap and treasury rate lock derivatives, which were designated as hedging instruments. Net losses are amortized into Interest expense over the remaining life of the associated debt. During the twelve week period ended May 9, 2020, the Company reclassified $509 thousand of net losses from Accumulated other comprehensive loss to Interest expense. During the comparable prior year period, the Company reclassified $508 thousand of net losses from Accumulated other comprehensive loss to Interest expense. During the thirty-six week period ended May 9, 2020, and the comparable prior year period, the Company reclassified $1.5 million of net losses from Accumulated other comprehensive loss to Interest expense. The Company expects to reclassify $2.3 million of net losses from Accumulated other comprehensive loss to Interest expense over the next 12 months. |
Merchandise Inventories
Merchandise Inventories | 8 Months Ended |
May 09, 2020 | |
Merchandise Inventories [Abstract] | |
Merchandise Inventories | Note F – Merchandise Inventories Merchandise inventories are stated at the lower of cost or market. Merchandise inventories include related purchasing, storage and handling costs. Inventory cost has been determined using the last-in, first-out (“LIFO”) method for domestic inventories and the weighted average cost method for Mexico and Brazil inventories. Due to historical price deflation on the Company’s merchandise purchases, the Company has exhausted its LIFO reserve balance. The Company’s policy is not to write up inventory in excess of replacement cost, which is based on average cost. The difference between LIFO cost and replacement cost, which has been reduced due to recent price inflation on the Company’s merchandise purchases, was $348.1 million at May 9, 2020 and $404.9 million at August 31, 2019. |
Financing
Financing | 8 Months Ended |
May 09, 2020 | |
Financing [Abstract] | |
Financing | Note G – Financing The Company’s long-term debt consisted of the following: May 9, August 31, (in thousands) 2020 2019 4.000% Senior Notes due November 2020, effective interest rate of 4.43% $ 500,000 $ 500,000 2.500% Senior Notes due April 2021, effective interest rate of 2.62% 250,000 250,000 3.700% Senior Notes due April 2022, effective interest rate of 3.85% 500,000 500,000 2.875% Senior Notes due January 2023, effective interest rate of 3.21% 300,000 300,000 3.125% Senior Notes due July 2023, effective interest rate of 3.26% 500,000 500,000 3.125% Senior Notes due April 2024, effective interest rate 3.32% 300,000 300,000 3.250% Senior Notes due April 2025, effective interest rate 3.36% 400,000 400,000 3.625% Senior Notes due April 2025, effective interest rate 3.78% 500,000 — 3.125% Senior Notes due April 2026, effective interest rate of 3.28% 400,000 400,000 3.750% Senior Notes due June 2027, effective interest rate of 3.83% 600,000 600,000 3.750% Senior Notes due April 2029, effective interest rate of 3.86% 450,000 450,000 4.000% Senior Notes due April 2030, effective interest rate 4.09% 750,000 — Commercial paper, weighted average interest rate of 2.28% at August 31, 2019 — 1,030,000 Total debt before discounts and debt issuance costs 5,450,000 5,230,000 Less: Discounts and debt issuance costs 31,728 23,656 Long-term debt $ 5,418,272 $ 5,206,344 As of May 9, 2020, the $500 million 4.000% Senior Notes due November 2020 and the $250 million 2.500% Senior Notes due April 2021 are classified as long-term in the accompanying Consolidated Balance Sheets as the Company has the ability and intent to refinance them on a long-term basis through available capacity in its revolving credit facilities. As of May 9, 2020, the Company had $2.747 billion of availability under its $2.75 billion revolving credit facilities which would allow the Company to replace these short-term obligations with long-term financing facilities. On March 30, 2020, the Company issued $500 million in 3.625% Senior Notes due April 2025 and $750 million in 4.000% Senior Notes due April 2030 under its automatic shelf registration statement on Form S-3, filed with the SEC on April 4, 2019 (File No. 333-230719) (the “2019 Shelf Registration”). The 2019 Shelf Registration allows the Company to sell an indeterminate amount in debt securities to fund general corporate purposes, including repaying, redeeming or repurchasing outstanding debt and for working capital, capital expenditures, new store openings, stock repurchases and acquisitions. Proceeds from the debt issuance were used for general corporate purposes. The Company entered into a Master Extension, New Commitment and Amendment Agreement dated as of November 18, 2017 (the “Extension Amendment”) to the Third Amended and Restated Credit Agreement dated as of November 18, 2016, as amended, modified, extended or restated from time to time (the “Revolving Credit Agreement”). Under the Extension Amendment: (i) the Company’s borrowing capacity under the Revolving Credit Agreement was increased from $1.6 billion to $2.0 billion; (ii) the Company’s option to increase its borrowing capacity under the Revolving Credit Agreement was “refreshed” and the amount of such option remained at $400 million; (iii) the maximum borrowing under the Revolving Credit Agreement may, at the Company’s option, subject to lenders approval, be increased from $2.0 billion to $2.4 billion; (iv) the termination date of the Revolving Credit Agreement was extended from November 18, 2021 until November 18, 2022; and (v) the Company has the option to make one additional written request of the lenders to extend the termination date then in effect for an additional year. Under the Revolving Credit Agreement, the Company may borrow funds consisting of Eurodollar loans, base rate loans or a combination of both. Interest accrues on Eurodollar loans at a defined Eurodollar rate, defined as LIBOR plus the applicable percentage, as defined in the Revolving Credit Agreement, depending upon the Company’s Senior, unsecured, (non-credit enhanced) long-term debt ratings. Interest accrues on base rate loans as defined in the Revolving Credit Agreement. On April 3, 2020, the Company entered into a 364-Day Credit Agreement (the “364-Day Credit Agreement”) to augment the Company’s access to liquidity due to current macroeconomic conditions and supplements the Company’s existing Revolving Credit Agreement. The 364-Day Credit Agreement provides for loans in the aggregate principal amount of up to $750 million. The 364-Day Credit Agreement will terminate, and all amounts borrowed under the 364-Day Credit Agreement will be due and payable, on April 2, 2021. Revolving loans under the 364-Day Credit Agreement may be base rate loans, Eurodollar loans, or a combination of both, at the Company’s election. As of May 9, 2020, the Company had no outstanding borrowings under each of the revolving credit facilities and $3.2 million of outstanding letters of credit under the Revolving Credit Agreement. The fair value of the Company’s debt was estimated at $5.723 billion as of May 9, 2020, and $5.419 billion as of August 31, 2019, based on the quoted market prices for the same or similar issues or on the current rates available to the Company for debt of the same terms (Level 2). Such fair value is greater than the carrying value of debt by $304.9 million at May 9, 2020, which reflects their face amount, adjusted for any unamortized debt issuance costs and discounts. At August 31, 2019, the fair value was greater than the carrying value of debt by $212.7 million. All Senior Notes are subject to an interest rate adjustment if the debt ratings assigned to the Senior Notes are downgraded (as defined in the agreements). Further, the Senior Notes contain a provision that repayment of the Senior Notes may be accelerated if the Company experiences a change in control (as defined in the agreements). The Company’s borrowings under its Senior Notes contain minimal covenants, primarily restrictions on liens. Under its revolving credit facilities, covenants include restrictions on liens, a maximum debt to earnings ratio, a minimum fixed charge coverage ratio and a change of control provision that may require acceleration of the repayment obligations under certain circumstances. All of the repayment obligations under its borrowing arrangements may be accelerated and come due prior to the scheduled payment date if covenants are breached or an event of default occurs. As of May 9, 2020, the Company was in compliance with all covenants and expects to remain in compliance with all covenants under its borrowing arrangements. |
Stock Repurchase Program
Stock Repurchase Program | 8 Months Ended |
May 09, 2020 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | Note H – Stock Repurchase Program From January 1, 1998 to May 9, 2020, the Company has repurchased a total of 147.7 million shares of its common stock at an aggregate cost of $22.354 billion, including 826,002 shares of its common stock at an aggregate cost of $930.9 million during the thirty-six week period ended May 9, 2020. On October 7, 2019, the Board voted to increase the repurchase authorization by $1.25 billion. This raised the total value of shares authorized to be repurchased to $23.15 billion. Considering the cumulative repurchases as of May 9, 2020, the Company had $795.9 million remaining under the Board’s authorization to repurchase its common stock. During the thirty-six week period ended May 9, 2020, the Company retired 1.9 million shares of treasury stock which had previously been repurchased under the Company’s share repurchase program. The retirement increased Retained deficit by $1.879 billion and decreased Additional paid-in capital by $99.7 million. During the comparable prior year period, the Company retired 2.6 million shares of treasury stock, which increased Retained deficit by $1.707 billion and decreased Additional paid-in capital by $125.4 million. During the twelve week period ended May 9, 2020, the Company temporarily ceased share repurchases under its share repurchase program to conserve liquidity in response to the uncertainty related to COVID-19, and the Company will continue to evaluate current and expected business conditions and resume share repurchases under its share repurchase program when the Company deems appropriate. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 8 Months Ended |
May 09, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note I – Accumulated Other Comprehensive Loss Accumulated other comprehensive loss includes foreign currency translation adjustments, activity for interest rate swaps and treasury rate locks that qualify as cash flow hedges and unrealized gains (losses) on available-for-sale debt securities. Changes in Accumulated other comprehensive loss for the twelve week periods ended May 9, 2020 and May 4, 2019 consisted of the following: Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (2) on Securities Derivatives Total Balance at February 15, 2020 $ (225,380) $ 581 $ (3,538) $ (228,337) Other comprehensive (loss) income before reclassifications (1) (104,920) 1,116 (12,808) (5) (116,612) Amounts reclassified from Accumulated other comprehensive (loss) (1) — 44 (3) 389 (4) 433 Balance at May 9, 2020 $ (330,300) $ 1,741 $ (15,957) $ (344,516) Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (2) on Securities Derivatives Total Balance at February 9, 2019 $ (230,140) $ (442) $ (5,255) $ (235,837) Other comprehensive (loss) income before reclassifications (1) (1,409) 277 — (1,132) Amounts reclassified from Accumulated other comprehensive (loss) (1) — (31) (3) 388 (4) 357 Balance at May 4, 2019 $ (231,549) $ (196) $ (4,867) $ (236,612) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. subsidiaries earnings. Other foreign currency is not shown net of additional U.S. tax as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested. (3) Represents realized gains on marketable debt securities, net of taxes of $12 for the twelve weeks ended May 9, 2020, and $8 for the twelve weeks ended May 4, 2019, which is recorded in Operating, selling general and administrative expenses on the Condensed Consolidated Statements of Income. See “Note D – Marketable Debt Securities” for further discussion. (4) Represents losses on derivatives, net of tax benefit of $120 for the twelve weeks ended May 9, 2020 and for the twelve weeks ended May 4, 2019, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion. (5) Represents change in fair value for derivatives, net of tax benefit of $4,034 for the twelve weeks ended May 9, 2020. Changes in Accumulated other comprehensive loss for the thirty-six week periods ended May 9, 2020 and May 4, 2019 consisted of the following: Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (2) on Securities Derivatives Total Balance at August 31, 2019 $ (265,598) $ 591 $ (4,315) $ (269,322) Other comprehensive (loss) income before reclassifications (1) (64,702) 1,063 (12,808) (5) (76,447) Amounts reclassified from Accumulated other comprehensive (loss) (1) — 87 (3) 1,166 (4) 1,253 Balance at May 9, 2020 $ (330,300) $ 1,741 $ (15,957) $ (344,516) Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (2) on Securities Derivatives Total Balance at August 25, 2018 $ (228,899) $ (873) $ (6,033) $ (235,805) Other comprehensive (loss) income before reclassifications (1) (2,650) 707 — (1,943) Amounts reclassified from Accumulated other comprehensive (loss) (1) — (30) (3) 1,166 (4) 1,136 Balance at May 4, 2019 $ (231,549) $ (196) $ (4,867) $ (236,612) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. subsidiaries earnings. Other foreign currency is not shown net of additional U.S. tax as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested. (3) Represents realized gains on marketable debt securities, net of taxes of $24 for the thirty-six weeks ended May 9, 2020 and $8 for thirty-six weeks ended May 4, 2019, which is recorded in Operating, selling general and administrative expenses on the Condensed Consolidated Statements of Income. See “Note D – Marketable Debt Securities” for further discussion. (4) Represents losses on derivatives, net of tax benefits of $360 for the thirty-six weeks ended May 9, 2020 and for thirty-six weeks ended May 4, 2019, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion. (5) Represents the change in fair value for derivatives, net of tax benefit of $4,034 for the thirty-six weeks ended May 9, 2020. |
Goodwill and Intangibles
Goodwill and Intangibles | 8 Months Ended |
May 09, 2020 | |
Goodwill and Intangibles [Abstract] | |
Goodwill and Intangibles | Note J – Goodwill and Intangibles As of May 9, 2020, there were no changes to the carrying amount of goodwill as described in our Annual Report on Form 10-K for the year ended August 31, 2019. The carrying amounts of intangible assets are included in Other long-term assets as follows: Estimated Gross Net Useful Carrying Accumulated Carrying (in thousands) Life Amount Amortization Amount Amortizing intangible assets: Technology 3-5 years $ 870 $ (870) $ — Customer relationships 3-10 years 29,376 (26,648) 2,728 Total intangible assets other than goodwill $ 30,246 $ (27,518) $ 2,728 Amortization expense of intangible assets for the twelve and thirty-six week periods ended May 9, 2020 and May 4, 2019 were $1.0 million and $2.9 million, respectively. |
Litigation
Litigation | 8 Months Ended |
May 09, 2020 | |
Litigation [Abstract] | |
Litigation | Note K – Litigation The Company is involved in various legal proceedings incidental to the conduct of its business, including, but not limited to, several lawsuits containing class-action allegations in which the plaintiffs are current and former hourly and salaried employees who allege various wage and hour violations and unlawful termination practices. While the resolution of these matters cannot be predicted with certainty, management does not currently believe that, either individually or in the aggregate, these matters will result in liabilities material to the Company’s Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets or Condensed Consolidated Statements of Cash Flows. |
Leases
Leases | 8 Months Ended |
May 09, 2020 | |
Leases [Abstract] | |
Leases | Note L – Leases The Company adopted ASU 2016-02, Leases (Topic 842) The Company’s leases primarily relate to its retail stores, distribution centers and vehicles under various non-callable leases. Leases are categorized at their commencement date, which is the date the Company takes possession or control of the underlying asset. Most of the Company’s leases are operating leases; however, certain land and vehicles are leased under finance leases. The leases have varying terms and expire at various dates through 2040. Retail leases typically have initial terms of between one and 20 years, with one to six optional renewal periods of one to five years each. Finance leases for vehicles typically have original terms between one The Company’s finance leases for vehicles have a stated borrowing rate which it uses in determining the present value of the lease payments over the lease term. Substantially all the operating leases and finance leases for real estate do not provide a stated borrowing rate. Accordingly, we use the Company’s incremental borrowing rate at commencement or modification date is used in determining the present value of lease payments over the lease term. For operating leases that commenced prior to the date of adoption of the new standard, the Company used the incremental borrowing rate that corresponded to the remaining lease term as of the date of adoption. Lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet are as follows: (in thousands) Classification May 9, 2020 Assets: Operating Operating lease right-of-use assets $ 2,613,849 Finance Property and equipment 291,873 Total lease assets $ 2,905,722 Liabilities: Current: Operating Current portion of operating lease liabilities $ 236,759 Finance Accrued expenses and other 58,018 Noncurrent: Operating Operating lease liabilities, less current portion 2,481,280 Finance Other long-term liabilities 126,258 Total lease liabilities $ 2,902,315 Accumulated amortization related to finance lease assets was $101.6 million as of May 9, 2020. Lease costs for finance and operating leases for the twelve and thirty-six weeks ended May 9, 2020 are as follows: Twelve Thirty-Six Weeks Ended Weeks Ended (in thousands) Statement of Income Location May 9, 2020 May 9, 2020 Finance lease cost: Amortization of lease assets Depreciation and amortization $ 13,044 $ 38,572 Interest on lease liabilities Interest expense, net 933 3,600 Operating lease cost (1) Selling, general and administrative expenses 82,258 244,454 Total lease cost $ 96,235 $ 286,626 (1) Includes short-term leases, variable lease costs and sublease income, which are immaterial. The future rental payments, inclusive of renewal options that have been included in defining the expected lease term, of our operating and finance lease obligations as of May 9, 2020 having initial or remaining lease terms in excess of one year are as follows: Finance Operating (in thousands) Leases Leases Total 2020 $ 15,052 $ 79,958 $ 95,010 2021 61,531 320,888 382,419 2022 49,532 317,806 367,338 2023 34,827 298,900 333,727 2024 12,837 275,164 288,001 Thereafter 38,271 2,246,943 2,285,214 Total lease payments 212,050 3,539,659 3,751,709 Less: Interest (27,774) (821,620) (849,394) Present value of lease liabilities $ 184,276 $ 2,718,039 $ 2,902,315 The following table summarizes the Company’s lease term and discount rate assumptions: May 9, 2020 Weighted-average remaining lease term in years, inclusive of renewal options that are reasonably certain to be exercised Finance leases – real estate 30 Finance leases – vehicles 3 Operating leases 15 Weighted-average discount rate: Finance leases – real estate 3.24 % Finance leases – vehicles 2.70 % Operating leases 3.43 % The following table summarizes the other information related to the Company’s lease liabilities: Thirty-Six Weeks Ended (in thousands) May 9, 2020 Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases $ 98,356 Leased assets obtained in exchange for new finance lease liabilities 48,236 Leased assets obtained in exchange for new operating lease liabilities 163,066 As of May 9, 2020, the Company has entered into additional leases which have not yet commenced and are therefore not part of the right-of-use asset and liability. These leases are generally for real estate and have undiscounted future payments of approximately $14.2 million and will commence when the Company obtains possession of the underlying leased asset. Commencement dates are expected to be from fiscal 2020 to fiscal 2022. |
Segment Reporting
Segment Reporting | 8 Months Ended |
May 09, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | The Company’s operating segments (Domestic Auto Parts, Mexico and Brazil) are aggregated as one reportable segment: Auto Parts Stores. The criteria the Company used to identify the reportable segment are primarily the nature of the products the Company sells and the operating results that are regularly reviewed by the Company’s chief operating decision maker to make decisions about the resources to be allocated to the business units and to assess performance. The accounting policies of the Company’s reportable segment are the same as those described in “Note A – Significant Accounting Policies” in its Annual Report on Form 10-K for the year ended August 31, 2019. The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 6,484 stores in the U.S., Mexico and Brazil. Each store carries an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products. The Other category reflects business activities of two operating segments that are not separately reportable due to the materiality of these operating segments. The operating segments include ALLDATA, which produces, sells and maintains diagnostic and repair information software used in the automotive repair industry, and E-commerce, which includes direct sales to customers through www.autozone.com for sales that are not fulfilled by local stores. The Company evaluates its reportable segment primarily on the basis of net sales and segment profit, which is defined as gross profit. Segment results for the periods presented were as follows: Twelve Weeks Ended Thirty-Six Weeks Ended May 9, May 4, May 9, May 4, (in thousands) 2020 2019 2020 2019 Net Sales Auto Parts Stores $ 2,724,604 $ 2,731,900 $ 7,932,831 $ 7,728,173 Other 54,695 51,106 153,168 147,134 Total $ 2,779,299 $ 2,783,006 $ 8,085,999 $ 7,875,307 Segment Profit Auto Parts Stores $ 1,454,705 $ 1,457,608 $ 4,252,136 $ 4,132,358 Other 35,943 34,412 105,642 102,243 Gross profit 1,490,648 1,492,020 4,357,778 4,234,601 Operating, selling, general and administrative expenses (998,975) (944,497) (2,958,144) (2,799,239) Interest expense, net (47,450) (43,239) (135,528) (123,608) Income before income taxes $ 444,223 $ 504,284 $ 1,264,106 $ 1,311,754 |
General (Policies)
General (Policies) | 8 Months Ended |
May 09, 2020 | |
General [Abstract] | |
Fiscal Period | Operating results for the twelve and thirty-six weeks ended May 9, 2020 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 29, 2020. Each of the first three quarters of AutoZone’s fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarter of fiscal 2020 has 16 weeks and fiscal 2019 had 17 weeks. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) The Company adopted this standard and its amendments as of September 1, 2019, using the modified retrospective transition method. Under this method, existing leases were recorded at the adoption date, comparative periods were not restated and prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for the prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of prior lease identification under Accounting Standards Codification (“ASC”) Topic 840. The Company made the accounting policy election for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term. The Company also elected the practical expedient to not separate lease components from the non-lease components (typically fixed common-area maintenance costs at its retail store locations) for all classes of leased assets, except vehicles. The Company chose not to elect the hindsight practical expedient to determine the reasonably certain lease term for existing leases. Adoption of the leasing standard resulted in operating lease right-of-use assets of approximately $2.5 billion and operating lease liabilities of approximately $2.7 billion as of September 1, 2019. Existing prepaid and deferred rent were netted and recorded as an offset to our gross operating lease right-of-use assets. There was no adjustment to the opening balance of retained earnings upon adoption. The standard did not have a material impact on the Company’s Condensed Consolidated Statements of Income, Condensed Consolidated Statements of Cash Flows or covenant compliance under its existing credit agreement. Refer to “Note L – Leases”. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Recently Issued Accounting Pronouncements: In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments Credit Losses Further, the new credit loss model will affect how entities estimate their allowance for loss receivables that are current with respect to their payment terms. ASU 2016-13 will be effective for the Company at the beginning of its fiscal 2021 year. The Company will adopt this standard beginning with its first quarter ending November 21, 2020. The Company is currently evaluating the new guidance to determine the impact the adoption will have on the Company’s Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets or Condensed Consolidated Statements of Cash Flows. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 8 Months Ended |
May 09, 2020 | |
Share-Based Payments [Abstract] | |
Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense | The weighted average fair value of the stock option awards granted during the thirty-six week periods ended May 9, 2020 and May 4, 2019, using the Black-Scholes-Merton multiple-option pricing valuation model, was $252.39 and $208.37 per share, respectively, using the following weighted average key assumptions: Thirty-Six Weeks Ended May 9, May 4, 2020 2019 Expected price volatility 22 % 21 % Risk-free interest rate 1.4 % 3.0 % Weighted average expected lives (in years) 5.5 5.6 Forfeiture rate 10 % 10 % Dividend yield 0 % 0 % |
Schedule of Nonvested Restricted Stock Units Activity | Transactions related to restricted stock units for the thirty-six weeks ended May 9, 2020 were as follows: Weighted- Number Average Grant of Shares Date Fair Value Nonvested at August 31, 2019 10,049 $ 773.61 Granted 8,735 1,086.61 Vested (4,183) 945.58 Canceled or forfeited (313) 938.64 Nonvested at May 9, 2020 14,288 $ 911.01 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 8 Months Ended |
May 09, 2020 | |
Fair Value Measurements [Abstract] | |
Company's marketable debt securities measured at Fair Value on Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis were as follows: May 9, 2020 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 34,381 $ — $ — $ 34,381 Other long-term assets 70,726 11,110 — 81,836 $ 105,107 $ 11,110 $ — $ 116,217 Accrued expenses and other $ — $ (16,842) $ — $ (16,842) August 31, 2019 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 65,344 $ 2,614 $ — $ 67,958 Other long-term assets 65,573 5,395 — 70,968 $ 130,917 $ 8,009 $ — $ 138,926 |
Marketable Debt Securities (Tab
Marketable Debt Securities (Tables) | 8 Months Ended |
May 09, 2020 | |
Marketable Debt Securities [Abstract] | |
Available-for-Sale Marketable Securities | The Company’s available-for-sale marketable debt securities consisted of the following: May 9, 2020 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 52,423 $ 715 $ (28) $ 53,110 Government bonds 45,683 1,468 (13) 47,138 Mortgage-backed securities 2,958 58 — 3,016 Asset-backed securities and other 12,944 70 (61) 12,953 $ 114,008 $ 2,311 $ (102) $ 116,217 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 36,998 $ 29 $ (19) $ 37,008 Government bonds 45,741 763 — 46,504 Mortgage-backed securities 2,089 2 (15) 2,076 Asset-backed securities and other 53,345 — (7) 53,338 $ 138,173 $ 794 $ (41) $ 138,926 |
Financing (Tables)
Financing (Tables) | 8 Months Ended |
May 09, 2020 | |
Financing [Abstract] | |
Schedule of Debt | The Company’s long-term debt consisted of the following: May 9, August 31, (in thousands) 2020 2019 4.000% Senior Notes due November 2020, effective interest rate of 4.43% $ 500,000 $ 500,000 2.500% Senior Notes due April 2021, effective interest rate of 2.62% 250,000 250,000 3.700% Senior Notes due April 2022, effective interest rate of 3.85% 500,000 500,000 2.875% Senior Notes due January 2023, effective interest rate of 3.21% 300,000 300,000 3.125% Senior Notes due July 2023, effective interest rate of 3.26% 500,000 500,000 3.125% Senior Notes due April 2024, effective interest rate 3.32% 300,000 300,000 3.250% Senior Notes due April 2025, effective interest rate 3.36% 400,000 400,000 3.625% Senior Notes due April 2025, effective interest rate 3.78% 500,000 — 3.125% Senior Notes due April 2026, effective interest rate of 3.28% 400,000 400,000 3.750% Senior Notes due June 2027, effective interest rate of 3.83% 600,000 600,000 3.750% Senior Notes due April 2029, effective interest rate of 3.86% 450,000 450,000 4.000% Senior Notes due April 2030, effective interest rate 4.09% 750,000 — Commercial paper, weighted average interest rate of 2.28% at August 31, 2019 — 1,030,000 Total debt before discounts and debt issuance costs 5,450,000 5,230,000 Less: Discounts and debt issuance costs 31,728 23,656 Long-term debt $ 5,418,272 $ 5,206,344 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 8 Months Ended |
May 09, 2020 | |
Stock Repurchase Program [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss for the twelve week periods ended May 9, 2020 and May 4, 2019 consisted of the following: Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (2) on Securities Derivatives Total Balance at February 15, 2020 $ (225,380) $ 581 $ (3,538) $ (228,337) Other comprehensive (loss) income before reclassifications (1) (104,920) 1,116 (12,808) (5) (116,612) Amounts reclassified from Accumulated other comprehensive (loss) (1) — 44 (3) 389 (4) 433 Balance at May 9, 2020 $ (330,300) $ 1,741 $ (15,957) $ (344,516) Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (2) on Securities Derivatives Total Balance at February 9, 2019 $ (230,140) $ (442) $ (5,255) $ (235,837) Other comprehensive (loss) income before reclassifications (1) (1,409) 277 — (1,132) Amounts reclassified from Accumulated other comprehensive (loss) (1) — (31) (3) 388 (4) 357 Balance at May 4, 2019 $ (231,549) $ (196) $ (4,867) $ (236,612) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. subsidiaries earnings. Other foreign currency is not shown net of additional U.S. tax as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested. (3) Represents realized gains on marketable debt securities, net of taxes of $12 for the twelve weeks ended May 9, 2020, and $8 for the twelve weeks ended May 4, 2019, which is recorded in Operating, selling general and administrative expenses on the Condensed Consolidated Statements of Income. See “Note D – Marketable Debt Securities” for further discussion. (4) Represents losses on derivatives, net of tax benefit of $120 for the twelve weeks ended May 9, 2020 and for the twelve weeks ended May 4, 2019, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion. (5) Represents change in fair value for derivatives, net of tax benefit of $4,034 for the twelve weeks ended May 9, 2020. Changes in Accumulated other comprehensive loss for the thirty-six week periods ended May 9, 2020 and May 4, 2019 consisted of the following: Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (2) on Securities Derivatives Total Balance at August 31, 2019 $ (265,598) $ 591 $ (4,315) $ (269,322) Other comprehensive (loss) income before reclassifications (1) (64,702) 1,063 (12,808) (5) (76,447) Amounts reclassified from Accumulated other comprehensive (loss) (1) — 87 (3) 1,166 (4) 1,253 Balance at May 9, 2020 $ (330,300) $ 1,741 $ (15,957) $ (344,516) Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (2) on Securities Derivatives Total Balance at August 25, 2018 $ (228,899) $ (873) $ (6,033) $ (235,805) Other comprehensive (loss) income before reclassifications (1) (2,650) 707 — (1,943) Amounts reclassified from Accumulated other comprehensive (loss) (1) — (30) (3) 1,166 (4) 1,136 Balance at May 4, 2019 $ (231,549) $ (196) $ (4,867) $ (236,612) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. subsidiaries earnings. Other foreign currency is not shown net of additional U.S. tax as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested. (3) Represents realized gains on marketable debt securities, net of taxes of $24 for the thirty-six weeks ended May 9, 2020 and $8 for thirty-six weeks ended May 4, 2019, which is recorded in Operating, selling general and administrative expenses on the Condensed Consolidated Statements of Income. See “Note D – Marketable Debt Securities” for further discussion. (4) Represents losses on derivatives, net of tax benefits of $360 for the thirty-six weeks ended May 9, 2020 and for thirty-six weeks ended May 4, 2019, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion. (5) Represents the change in fair value for derivatives, net of tax benefit of $4,034 for the thirty-six weeks ended May 9, 2020. |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 8 Months Ended |
May 09, 2020 | |
Goodwill and Intangibles [Abstract] | |
Schedule of Carrying Amounts of Intangible Assets | The carrying amounts of intangible assets are included in Other long-term assets as follows: Estimated Gross Net Useful Carrying Accumulated Carrying (in thousands) Life Amount Amortization Amount Amortizing intangible assets: Technology 3-5 years $ 870 $ (870) $ — Customer relationships 3-10 years 29,376 (26,648) 2,728 Total intangible assets other than goodwill $ 30,246 $ (27,518) $ 2,728 |
Leases (Tables)
Leases (Tables) | 8 Months Ended |
May 09, 2020 | |
Leases [Abstract] | |
Balance Sheet Information Related to Leases | (in thousands) Classification May 9, 2020 Assets: Operating Operating lease right-of-use assets $ 2,613,849 Finance Property and equipment 291,873 Total lease assets $ 2,905,722 Liabilities: Current: Operating Current portion of operating lease liabilities $ 236,759 Finance Accrued expenses and other 58,018 Noncurrent: Operating Operating lease liabilities, less current portion 2,481,280 Finance Other long-term liabilities 126,258 Total lease liabilities $ 2,902,315 |
Lease Cost | Twelve Thirty-Six Weeks Ended Weeks Ended (in thousands) Statement of Income Location May 9, 2020 May 9, 2020 Finance lease cost: Amortization of lease assets Depreciation and amortization $ 13,044 $ 38,572 Interest on lease liabilities Interest expense, net 933 3,600 Operating lease cost (1) Selling, general and administrative expenses 82,258 244,454 Total lease cost $ 96,235 $ 286,626 (1) Includes short-term leases, variable lease costs and sublease income, which are immaterial. |
Summary of the Future Maturities of the Company's Lease Liabilities | The future rental payments, inclusive of renewal options that have been included in defining the expected lease term, of our operating and finance lease obligations as of May 9, 2020 having initial or remaining lease terms in excess of one year are as follows: Finance Operating (in thousands) Leases Leases Total 2020 $ 15,052 $ 79,958 $ 95,010 2021 61,531 320,888 382,419 2022 49,532 317,806 367,338 2023 34,827 298,900 333,727 2024 12,837 275,164 288,001 Thereafter 38,271 2,246,943 2,285,214 Total lease payments 212,050 3,539,659 3,751,709 Less: Interest (27,774) (821,620) (849,394) Present value of lease liabilities $ 184,276 $ 2,718,039 $ 2,902,315 |
Information on Lease Term and Discount Rate | May 9, 2020 Weighted-average remaining lease term in years, inclusive of renewal options that are reasonably certain to be exercised Finance leases – real estate 30 Finance leases – vehicles 3 Operating leases 15 Weighted-average discount rate: Finance leases – real estate 3.24 % Finance leases – vehicles 2.70 % Operating leases 3.43 % |
Other Information Related to Lease Liabilities | Thirty-Six Weeks Ended (in thousands) May 9, 2020 Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases $ 98,356 Leased assets obtained in exchange for new finance lease liabilities 48,236 Leased assets obtained in exchange for new operating lease liabilities 163,066 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 8 Months Ended |
May 09, 2020 | |
Segment Reporting [Abstract] | |
Segment Results | Twelve Weeks Ended Thirty-Six Weeks Ended May 9, May 4, May 9, May 4, (in thousands) 2020 2019 2020 2019 Net Sales Auto Parts Stores $ 2,724,604 $ 2,731,900 $ 7,932,831 $ 7,728,173 Other 54,695 51,106 153,168 147,134 Total $ 2,779,299 $ 2,783,006 $ 8,085,999 $ 7,875,307 Segment Profit Auto Parts Stores $ 1,454,705 $ 1,457,608 $ 4,252,136 $ 4,132,358 Other 35,943 34,412 105,642 102,243 Gross profit 1,490,648 1,492,020 4,357,778 4,234,601 Operating, selling, general and administrative expenses (998,975) (944,497) (2,958,144) (2,799,239) Interest expense, net (47,450) (43,239) (135,528) (123,608) Income before income taxes $ 444,223 $ 504,284 $ 1,264,106 $ 1,311,754 |
General - (Detail)
General - (Detail) - USD ($) $ in Thousands | 8 Months Ended | |||
May 09, 2020 | Apr. 03, 2020 | Sep. 01, 2019 | Aug. 31, 2019 | |
Maximum amount available under credit facility | $ 750,000 | |||
Lease Right Of Use Assets | $ 2,613,849 | $ 0 | ||
Lease Liabilities | 2,718,039 | |||
Senior Notes | ||||
Proceeds from notes payable | 1,250,000 | |||
Senior Unsecured Revolving Credit Facility | ||||
Maximum amount available under credit facility | 750,000 | |||
Selling, general and administrative expenses | ||||
Expanded Benefits, Supply Costs and Other COVID-19 Related Costs | $ 75,000 | |||
Accounting Standards Update 2016-02 | ||||
Lease Right Of Use Assets | $ 2,500,000 | |||
Lease Liabilities | $ 2,700,000 |
Share-Based Payments - Weighted
Share-Based Payments - Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense (Detail) | 8 Months Ended | |
May 09, 2020 | May 04, 2019 | |
Share-Based Payments [Abstract] | ||
Expected price volatility | 22.00% | 21.00% |
Risk-free interest rates | 1.40% | 3.00% |
Weighted average expected lives (in years) | 5 years 6 months | 5 years 7 months 6 days |
Forfeiture rate | 10.00% | 10.00% |
Dividend yield | 0.00% | 0.00% |
Share-Based Payments - Schedule
Share-Based Payments - Schedule of Nonvested Restricted Stock Units Activity (Detail) | 8 Months Ended |
May 09, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested, Beginning balance, Number of Shares | shares | 10,049 |
Granted, Number of Shares | shares | 8,735 |
Vested, Number of Shares | shares | (4,183) |
Canceled or forfeited, Number of Shares | shares | (313) |
Nonvested, Ending balance, Number of Shares | shares | 14,288 |
Nonvested, Beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 773.61 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 1,086.61 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 945.58 |
Canceled or forfeited, Weighted Average Grant Date Fair Value | $ / shares | 938.64 |
Nonvested, Ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 911.01 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 09, 2020 | May 04, 2019 | May 09, 2020 | May 04, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted | 188,324 | 172,750 | ||
Weighted average grant date fair value of options granted | $ 252.39 | $ 208.37 | ||
Stock options exercised - Shares | 121,236 | 408,657 | ||
Stock options exercised - Weighted average exercise price | $ 480.39 | $ 412.75 | ||
Share-based compensation expense | $ 10.1 | $ 10 | $ 32.3 | $ 31.5 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non vested restricted stock unit award | $ 10.1 | $ 10.1 | ||
Estimated weighted average period | 2 years 10 months 24 days | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Anti-dilutive shares excluded from the computation of earnings per share | 187,965 | 4,177 | 161,321 | 149,648 |
Fair Value Measurements - Compa
Fair Value Measurements - Company's marketable debt securities measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | May 09, 2020 | Aug. 31, 2019 | May 04, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | $ 116,217 | $ 138,926 | |
Fair Value Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other current assets | 34,381 | $ 67,958 | |
Other long-term assets | 81,836 | 70,968 | |
Total | 116,217 | 138,926 | |
Accrued expenses and other | (16,842) | ||
Level 1 | Fair Value Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other current assets | 34,381 | 65,344 | |
Other long-term assets | 70,726 | 65,573 | |
Total | 105,107 | 130,917 | |
Level 2 | Fair Value Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other current assets | 2,614 | ||
Other long-term assets | 11,110 | 5,395 | |
Total | 11,110 | 8,009 | |
Accrued expenses and other | (16,842) | ||
Level 3 | Fair Value Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other current assets | |||
Other long-term assets | |||
Total | |||
Accrued expenses and other |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value Measurements, Recurring - USD ($) $ in Thousands | May 09, 2020 | Aug. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable debt securities | $ 34,381 | $ 67,958 |
Long-term marketable debt securities | 81,836 | $ 70,968 |
Cash flow hedging instruments | $ 16,842 |
Marketable Debt Securities - Av
Marketable Debt Securities - Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | May 09, 2020 | May 04, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | $ 114,008 | $ 138,173 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 2,311 | 794 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (102) | (41) |
Available-For-Sale Marketable Securities, Fair Value | 116,217 | 138,926 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 52,423 | 36,998 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 715 | 29 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (28) | (19) |
Available-For-Sale Marketable Securities, Fair Value | 53,110 | 37,008 |
Government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 45,683 | 45,741 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 1,468 | 763 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (13) | |
Available-For-Sale Marketable Securities, Fair Value | 47,138 | 46,504 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 2,958 | 2,089 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 58 | 2 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (15) | |
Available-For-Sale Marketable Securities, Fair Value | 3,016 | 2,076 |
Asset-backed securities and other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 12,944 | 53,345 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 70 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (61) | (7) |
Available-For-Sale Marketable Securities, Fair Value | $ 12,953 | $ 53,338 |
Marketable Debt Securities - Ad
Marketable Debt Securities - Additional Information (Detail) $ in Thousands | 8 Months Ended | |
May 09, 2020USD ($)security | May 04, 2019USD ($) | |
Marketable Debt Securities [Abstract] | ||
Available for sale securities debt maturity period range | less than one year to approximately three years | |
Number of securities available for sale loss position | security | 6 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | $ 102 | $ 41 |
Marketable securities transferred | $ 30,000 |
Derivative Financial Instrume_2
Derivative Financial Instruments - (Detail) $ in Thousands | 3 Months Ended | 8 Months Ended | |||
May 09, 2020USD ($)item | May 04, 2019USD ($) | May 09, 2020USD ($) | May 04, 2019USD ($) | May 08, 2021USD ($) | |
Derivative losses recorded in Accumulated other comprehensive loss | $ 4,100 | $ 4,100 | |||
Net derivative losses amortized into Interest expense | $ 509 | $ 508 | 1,500 | $ 1,500 | |
Scenario Forecast | |||||
Net derivative loss expected to be reclassified over next 12 months | $ 2,300 | ||||
US Treasury Notes | |||||
Number of treasury rate locks | item | 2 | ||||
Notional amount | $ 300,000 | $ 300,000 | |||
Fixed interest rate | 1.00% | 1.00% | |||
Maturity term | 10 years | ||||
Pre-tax loss on derivative | $ 16,800 | ||||
Accrued expenses and other | $ 12,800 | $ 12,800 |
Merchandise Inventories - (Deta
Merchandise Inventories - (Detail) - USD ($) $ in Millions | May 09, 2020 | Aug. 31, 2019 |
Merchandise Inventories [Abstract] | ||
Unrecorded adjustment for LIFO value in excess of replacement value | $ 348.1 | $ 404.9 |
Financing - Schedule of Debt (D
Financing - Schedule of Debt (Detail) - USD ($) $ in Thousands | May 09, 2020 | Mar. 30, 2020 | Aug. 31, 2019 |
Debt Instrument [Line Items] | |||
Commercial paper | $ 1,030,000 | ||
Total debt before discounts and debt issuance costs | $ 5,450,000 | 5,230,000 | |
Less: Discounts and debt issuance costs | 31,728 | 23,656 | |
Long-term debt | 5,418,272 | 5,206,344 | |
4.000% Senior Notes due November 2020, effective interest rate of 4.43% | |||
Debt Instrument [Line Items] | |||
Senior notes | 500,000 | 500,000 | |
2.500% Senior Notes due April 2021, effective interest rate of 2.62% | |||
Debt Instrument [Line Items] | |||
Senior notes | 250,000 | 250,000 | |
3.700% Senior Notes due April 2022, effective interest rate of 3.85% | |||
Debt Instrument [Line Items] | |||
Senior notes | 500,000 | 500,000 | |
2.875% Senior Notes due January 2023, effective interest rate of 3.21% | |||
Debt Instrument [Line Items] | |||
Senior notes | 300,000 | 300,000 | |
3.125% Senior Notes due July 2023, effective interest rate of 3.26% | |||
Debt Instrument [Line Items] | |||
Senior notes | 500,000 | 500,000 | |
3.125% Senior Notes due April 2024, effective interest rate 3.32% | |||
Debt Instrument [Line Items] | |||
Senior notes | 300,000 | 300,000 | |
3.250% Senior Notes due April 2025, effective interest rate 3.36% | |||
Debt Instrument [Line Items] | |||
Senior notes | 400,000 | 400,000 | |
3.625% Senior Notes due April 2025, effective interest rate 3.78% | |||
Debt Instrument [Line Items] | |||
Senior notes | 500,000 | $ 500,000 | |
3.125% Senior Notes due April 2026, effective interest rate of 3.28% | |||
Debt Instrument [Line Items] | |||
Senior notes | 400,000 | 400,000 | |
3.750% Senior Notes due June 2027, effective interest rate of 3.83% | |||
Debt Instrument [Line Items] | |||
Senior notes | 600,000 | 600,000 | |
3.750% Senior Notes due April 2029, effective interest rate of 3.86% | |||
Debt Instrument [Line Items] | |||
Senior notes | 450,000 | $ 450,000 | |
4.000% Senior Notes due April 2030, effective interest rate 4.09% | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 750,000 | $ 750,000 |
Financing - Schedule of Debt (P
Financing - Schedule of Debt (Parenthetical) (Detail) | 8 Months Ended | 12 Months Ended | |
May 09, 2020 | Aug. 31, 2019 | Mar. 30, 2020 | |
Commercial paper, weighted average interest rate of 2.28% at August 31, 2019 | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate of commercial paper | 2.28% | ||
4.000% Senior Notes due November 2020, effective interest rate of 4.43% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 4.00% | 4.00% | |
Effective interest rate | 4.43% | 4.43% | |
Debt instrument maturity, month and year | 2020-11 | 2020-11 | |
2.500% Senior Notes due April 2021, effective interest rate of 2.62% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 2.50% | 2.50% | |
Effective interest rate | 2.62% | 2.62% | |
Debt instrument maturity, month and year | 2021-04 | 2021-04 | |
3.700% Senior Notes due April 2022, effective interest rate of 3.85% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 3.70% | 3.70% | |
Effective interest rate | 3.85% | 3.85% | |
Debt instrument maturity, month and year | 2022-04 | 2022-04 | |
2.875% Senior Notes due January 2023, effective interest rate of 3.21% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 2.875% | 2.875% | |
Effective interest rate | 3.21% | 3.21% | |
Debt instrument maturity, month and year | 2023-01 | 2023-01 | |
3.125% Senior Notes due July 2023, effective interest rate of 3.26% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 3.125% | 3.125% | |
Effective interest rate | 3.26% | 3.26% | |
Debt instrument maturity, month and year | 2023-07 | 2023-07 | |
3.125% Senior Notes due April 2024, effective interest rate 3.32% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 3.125% | 3.125% | |
Effective interest rate | 3.32% | 3.32% | |
Debt instrument maturity, month and year | 2024-04 | 2024-04 | |
3.250% Senior Notes due April 2025, effective interest rate 3.36% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 3.25% | 3.25% | |
Effective interest rate | 3.36% | 3.36% | |
Debt instrument maturity, month and year | 2025-04 | 2025-04 | |
3.625% Senior Notes due April 2025, effective interest rate 3.78% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 3.625% | 3.625% | |
Effective interest rate | 3.78% | ||
Debt instrument maturity, month and year | 2025-04 | ||
3.125% Senior Notes due April 2026, effective interest rate of 3.28% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 3.125% | 3.125% | |
Effective interest rate | 3.28% | 3.28% | |
Debt instrument maturity, month and year | 2026-04 | 2026-04 | |
3.750% Senior Notes due June 2027, effective interest rate of 3.83% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 3.75% | 3.75% | |
Effective interest rate | 3.83% | 3.83% | |
Debt instrument maturity, month and year | 2027-06 | 2027-06 | |
3.750% Senior Notes due April 2029, effective interest rate of 3.86% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 3.75% | 3.75% | |
Effective interest rate | 3.86% | 3.86% | |
Debt instrument maturity, month and year | 2029-04 | 2029-04 | |
4.000% Senior Notes due April 2030, effective interest rate 4.09% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 4.00% | 4.00% | |
Effective interest rate | 4.09% | ||
Debt instrument maturity, month and year | 2030-04 |
Financing - Additional Informat
Financing - Additional Information (Detail) - USD ($) $ in Thousands | May 09, 2020 | Apr. 03, 2020 | Aug. 31, 2019 | Nov. 18, 2017 | Nov. 17, 2017 |
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity under revolving credit facility | $ 2,747,000 | ||||
Amount available under credit facility | 2,750,000 | ||||
Maximum amount available under credit facility | $ 750,000 | ||||
Fair value of the Company's debt | 5,723,000 | $ 5,419,000 | |||
Excess (shortfall) of fair value of debt over (from) carrying value | 304,900 | 212,700 | |||
Third Amended and Restated Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Amount available under credit facility | $ 1,600,000 | ||||
Master Extension Agreement | |||||
Debt Instrument [Line Items] | |||||
Amount available under credit facility | $ 2,000,000 | ||||
Revolving credit agreement, available additional borrowing capacity | 400,000 | ||||
Maximum amount available under credit facility | 2,400,000 | ||||
Letters of credit, outstanding | 3,200 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity under revolving credit facility | 2,000,000 | ||||
4.000% Senior Notes due November 2020, effective interest rate of 4.43% | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 500,000 | $ 500,000 | |||
Stated interest rate percentage | 4.00% | 4.00% | |||
2.500% Senior Notes due April 2021, effective interest rate of 2.62% | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 250,000 | $ 250,000 | |||
Stated interest rate percentage | 2.50% | 2.50% |
Stock Repurchase Program - (Det
Stock Repurchase Program - (Detail) - USD ($) | Oct. 07, 2019 | May 09, 2020 | May 04, 2019 | May 09, 2020 | May 04, 2019 | May 09, 2020 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchased cumulative, shares | 156,000 | 472,000 | 826,002 | 1,548,000 | 147,700,000 | |
Purchase of treasury stock | $ 930,903,000 | $ 1,313,116,000 | $ 22,354,000,000 | |||
Increase in authorization of stock repurchase, value | $ 1,250,000,000 | |||||
Stock repurchase authorized | $ 23,150,000,000 | |||||
Remaining value authorized for share repurchases | $ 795,900,000 | 795,900,000 | $ 795,900,000 | |||
Retirement of treasury shares | 0 | 0 | ||||
Retained Deficit | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Retirement of treasury shares | 1,878,595,000 | 1,706,971,000 | ||||
Additional Paid-In Capital | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Retirement of treasury shares | $ 99,686,000 | $ 125,443,000 | ||||
Common Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Share of treasury stock retired | 1,912,000 | 2,563,000 | ||||
Retirement of treasury shares | $ 19,000 | $ 26,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 09, 2020 | May 04, 2019 | May 09, 2020 | May 04, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ (1,711,119) | $ (1,594,362) | $ (1,713,851) | $ (1,520,355) |
Balance | (1,632,736) | (1,589,513) | (1,632,736) | (1,589,513) |
Foreign Currency and Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (225,380) | (230,140) | (265,598) | (228,899) |
Other comprehensive (loss) income before reclassifications | (104,920) | (1,409) | (64,702) | (2,650) |
Amounts reclassified from Accumulated other comprehensive (loss) | ||||
Balance | (330,300) | (231,549) | (330,300) | (231,549) |
Net Unrealized Gain (Loss) on Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 581 | (442) | 591 | (873) |
Other comprehensive (loss) income before reclassifications | 1,116 | 277 | 1,063 | 707 |
Amounts reclassified from Accumulated other comprehensive (loss) | 44 | (31) | 87 | (30) |
Balance | 1,741 | (196) | 1,741 | (196) |
Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (3,538) | (5,255) | (4,315) | (6,033) |
Other comprehensive (loss) income before reclassifications | (12,808) | (12,808) | ||
Amounts reclassified from Accumulated other comprehensive (loss) | 389 | 388 | 1,166 | 1,166 |
Balance | (15,957) | (4,867) | (15,957) | (4,867) |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (228,337) | (235,837) | (269,322) | (235,805) |
Other comprehensive (loss) income before reclassifications | (116,612) | (1,132) | (76,447) | (1,943) |
Amounts reclassified from Accumulated other comprehensive (loss) | 433 | 357 | 1,253 | 1,136 |
Balance | $ (344,516) | $ (236,612) | $ (344,516) | $ (236,612) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | 20 Months Ended | ||
May 09, 2020 | May 04, 2019 | May 09, 2020 | May 04, 2019 | May 09, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net derivative activities, taxes | $ 360 | ||||
Net Unrealized Gain (Loss) on Securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Unrealized gains (losses) on marketable securities, taxes | $ 24 | ||||
Marketable Securities, Realized Gain (Loss), Total | $ 12 | $ 8 | $ 8 | ||
Derivatives | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net derivative activities, taxes | 120 | $ 120 | |||
Change in fair value for derivatives, net of tax benefit | $ 4,034 | $ 4,034 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 09, 2020 | May 04, 2019 | May 09, 2020 | May 04, 2019 | |
Goodwill and Intangibles [Abstract] | ||||
Amortization expense of intangible assets | $ 1 | $ 2.9 | $ 1 | $ 2.9 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Carrying Amounts of Intangible Assets (Detail) $ in Thousands | 8 Months Ended |
May 09, 2020USD ($) | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | $ 30,246 |
Finite Lived, Accumulated Amortization | (27,518) |
Finite Lived, Net Carrying Amount | 2,728 |
Technology | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | 870 |
Finite Lived, Accumulated Amortization | (870) |
Finite Lived, Net Carrying Amount | $ 0 |
Technology | Minimum | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Technology | Maximum | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
Customer Relationships | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | $ 29,376 |
Finite Lived, Accumulated Amortization | (26,648) |
Finite Lived, Net Carrying Amount | $ 2,728 |
Customer Relationships | Minimum | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Customer Relationships | Maximum | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 8 Months Ended |
May 09, 2020USD ($) | |
Renewal Options And Lease term | The leases have varying terms and expire at various dates through 2040. Retail leases typically have initial terms of between one and 20 years, with one to six optional renewal periods of one to five years each. |
Lease Accumulated Amortization | $ 101.6 |
Additional leases not yet commenced, undiscounted future payments | $ 14.2 |
Finance lease term | 20 years |
Minimum | |
Operating lease commencement date | 2020 |
Finance lease term | 1 year |
Maximum | |
Operating lease commencement date | 2022 |
Finance lease term | 5 years |
Leases - Summary of Lease-relat
Leases - Summary of Lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | May 09, 2020 | Aug. 31, 2019 |
Assets | ||
Operating | $ 2,613,849 | $ 0 |
Total lease assets | 2,905,722 | |
Current | ||
Operating | 236,759 | 0 |
Noncurrent | ||
Operating | 2,481,280 | $ 0 |
Total lease liabilities | 2,902,315 | |
Operating lease right-of-use assets | ||
Assets | ||
Operating | 2,613,849 | |
Property And Equipment | ||
Assets | ||
Finance | 291,873 | |
Current portion of operating lease liabilities | ||
Current | ||
Operating | 236,759 | |
Accrued expenses and other | ||
Current | ||
Finance | 58,018 | |
Operating lease liabilities, less current portion | ||
Noncurrent | ||
Operating | 2,481,280 | |
Other long-term liabilities | ||
Noncurrent | ||
Finance | $ 126,258 |
Leases - Lease Cost (Detail)
Leases - Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended |
May 09, 2020 | May 09, 2020 | |
Amortization of lease assets | $ 101,600 | |
Total lease cost | $ 96,235 | 286,626 |
Depreciation and amortization | ||
Amortization of lease assets | 13,044 | 38,572 |
Interest expense, net | ||
Interest on lease liabilities | 933 | 3,600 |
Selling, general and administrative expenses | ||
Operating lease cost | $ 82,258 | $ 244,454 |
Leases - Summary Of The Future
Leases - Summary Of The Future Maturities Of The Company's Lease Liabilities (Detail) $ in Thousands | May 09, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 15,052 |
2021 | 61,531 |
2022 | 49,532 |
2023 | 34,827 |
2024 | 12,837 |
Thereafter | 38,271 |
Total Lease Payments | 212,050 |
Less: Interest | (27,774) |
Present value of lease liabilities | 184,276 |
2020 | 79,958 |
2021 | 320,888 |
2022 | 317,806 |
2023 | 298,900 |
2024 | 275,164 |
Thereafter | 2,246,943 |
Total Lease Payments | 3,539,659 |
Less: Interest | (821,620) |
Present value of lease liabilities | 2,718,039 |
2020 | 95,010 |
2021 | 382,419 |
2022 | 367,338 |
2023 | 333,727 |
2024 | 288,001 |
Thereafter | 2,285,214 |
Total Lease Payments | 3,751,709 |
Less: Interest | (849,394) |
Present value of lease liabilities | $ 2,902,315 |
Leases - Information On Lease T
Leases - Information On Lease Term And Discount Rate (Detail) | 8 Months Ended |
May 09, 2020 | |
Weighted-average remaining lease term (years) | |
Finance leases - real estate | 30 years |
Finance leases - vehicles | 3 years |
Operating leases | 15 years |
Weighted-average discount rate: | |
Finance leases - real estate | 3.24% |
Finance leases - vehicles | 2.70% |
Operating leases | 3.43% |
Leases - Other Information Rela
Leases - Other Information Related To Lease Liabilities (Detail) $ in Thousands | 8 Months Ended |
May 09, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases | $ 98,356 |
Leased assets obtained in exchange for new finance lease liabilities | 48,236 |
Leased assets obtained in exchange for new operating lease liabilities | $ 163,066 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 8 Months Ended |
May 09, 2020segmentstore | |
Segment Reporting [Abstract] | |
Number of automotive parts and accessories locations in the United States, Puerto Rico, Mexico, and Brazil | store | 6,484 |
Number of reportable segments | segment | 2 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 09, 2020 | May 04, 2019 | May 09, 2020 | May 04, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,779,299 | $ 2,783,006 | $ 8,085,999 | $ 7,875,307 |
Gross profit | 1,490,648 | 1,492,020 | 4,357,778 | 4,234,601 |
Operating, selling, general and administrative expenses | (998,975) | (944,497) | (2,958,144) | (2,799,239) |
Interest expense, net | (47,450) | (43,239) | (135,528) | (123,608) |
Income before income taxes | 444,223 | 504,284 | 1,264,106 | 1,311,754 |
Auto Parts Stores | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,724,604 | 2,731,900 | 7,932,831 | 7,728,173 |
Gross profit | 1,454,705 | 1,457,608 | 4,252,136 | 4,132,358 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 54,695 | 51,106 | 153,168 | 147,134 |
Gross profit | $ 35,943 | $ 34,412 | $ 105,642 | $ 102,243 |