Cover Page
Cover Page - shares | 8 Months Ended | |
May 08, 2021 | Jun. 04, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | May 8, 2021 | |
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 | 21,544,752 | |
Current Fiscal Year End Date | --08-28 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000866787 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 08, 2021 | Aug. 29, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 975,646 | $ 1,750,815 |
Accounts receivable | 359,669 | 364,774 |
Merchandise inventories | 4,665,477 | 4,473,282 |
Other current assets | 223,604 | 223,001 |
Total current assets | 6,224,396 | 6,811,872 |
Property and equipment: | ||
Property and equipment | 8,538,854 | 8,136,542 |
Less: Accumulated depreciation and amortization | (3,855,705) | (3,627,321) |
Property and equipment, net | 4,683,149 | 4,509,221 |
Operating lease right-of-use assets | 2,694,846 | 2,581,677 |
Goodwill | 302,645 | 302,645 |
Deferred income taxes | 30,366 | 27,843 |
Other long-term assets | 202,544 | 190,614 |
Other long-term assets, total | 3,230,401 | 3,102,779 |
Assets | 14,137,946 | 14,423,872 |
Current liabilities: | ||
Accounts payable | 5,778,222 | 5,156,324 |
Current portion of operating lease liabilities | 256,382 | 223,846 |
Accrued expenses and other | 884,377 | 827,668 |
Income taxes payable | 94,268 | 75,253 |
Total current liabilities | 7,013,249 | 6,283,091 |
Long-term debt | 5,267,896 | 5,513,371 |
Operating lease liabilities, less current portion | 2,594,506 | 2,501,560 |
Deferred income taxes | 366,497 | 354,186 |
Other long-term liabilities | 659,190 | 649,641 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, authorized 1,000 shares; no shares issued | ||
Common stock, par value $.01 per share, authorized 200,000 shares; 22,897 shares issued and 21,620 shares outstanding as of May 8, 2021; 23,697 shares issued and 23,376 shares outstanding as of August 29, 2020 | 229 | 237 |
Additional paid-in capital | 1,381,982 | 1,283,495 |
Retained deficit | (1,205,600) | (1,450,970) |
Accumulated other comprehensive loss | (304,382) | (354,252) |
Treasury stock, at cost | (1,635,621) | (356,487) |
Total stockholders' deficit | (1,763,392) | (877,977) |
Liabilities and Stockholders' Deficit | $ 14,137,946 | $ 14,423,872 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | May 08, 2021 | Aug. 29, 2020 |
Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 22,897 | 23,697 |
Common stock, shares outstanding | 21,620 | 23,376 |
Preferred Stock | ||
Preferred stock, shares authorized | 1,000 | 1,000 |
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 08, 2021 | May 09, 2020 | May 08, 2021 | May 09, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 3,651,023 | $ 2,779,299 | $ 9,716,101 | $ 8,085,999 |
Cost of sales, including warehouse and delivery expenses | 1,736,077 | 1,288,651 | 4,566,155 | 3,728,221 |
Gross profit | 1,914,946 | 1,490,648 | 5,149,946 | 4,357,778 |
Operating, selling, general and administrative expenses | 1,111,441 | 998,975 | 3,249,449 | 2,958,144 |
Operating profit | 803,505 | 491,673 | 1,900,497 | 1,399,634 |
Interest expense, net | 45,026 | 47,450 | 137,217 | 135,528 |
Income before income taxes | 758,479 | 444,223 | 1,763,280 | 1,264,106 |
Income tax expense | 162,315 | 101,327 | 378,737 | 271,591 |
Net income | $ 596,164 | $ 342,896 | $ 1,384,543 | $ 992,515 |
Weighted average shares for basic earnings per share | 21,956 | 23,386 | 22,609 | 23,610 |
Effect of dilutive stock equivalents | 559 | 442 | 545 | 550 |
Weighted average shares for diluted earnings per share | 22,515 | 23,828 | 23,154 | 24,160 |
Basic earnings per share | $ 27.15 | $ 14.66 | $ 61.24 | $ 42.04 |
Diluted earnings per share | $ 26.48 | $ 14.39 | $ 59.80 | $ 41.08 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 08, 2021 | May 09, 2020 | May 08, 2021 | May 09, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 596,164 | $ 342,896 | $ 1,384,543 | $ 992,515 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (3,865) | (104,920) | 48,731 | (64,702) |
Unrealized (losses) gains on marketable debt securities, net of taxes | (337) | 1,160 | (838) | 1,150 |
Net derivative activities, net of taxes | 659 | (12,419) | 1,977 | (11,642) |
Total other comprehensive (loss) income | (3,543) | (116,179) | 49,870 | (75,194) |
Comprehensive income | $ 592,621 | $ 226,717 | $ 1,434,413 | $ 917,321 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 8 Months Ended | |
May 08, 2021 | May 09, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 1,384,543 | $ 992,515 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment and intangibles | 278,044 | 272,115 |
Amortization of debt origination fees | 9,326 | 6,572 |
Deferred income taxes | 6,047 | 24,281 |
Share-based compensation expense | 38,061 | 32,251 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 8,335 | 36,843 |
Merchandise inventories | (162,271) | (175,284) |
Accounts payable and accrued expenses | 635,058 | 20,907 |
Income taxes payable | 22,989 | 12,334 |
Other, net | 10,215 | 80,574 |
Net cash provided by operating activities | 2,230,347 | 1,303,108 |
Cash flows from investing activities: | ||
Capital expenditures | (375,653) | (273,888) |
Purchase of marketable debt securities | (52,553) | (82,525) |
Proceeds from sale of marketable debt securities | 72,268 | 106,690 |
Investment in tax credit equity investments | (3,908) | |
Proceeds from disposal of capital assets and other, net | 1,183 | 1,800 |
Net cash used in investing activities | (358,663) | (247,923) |
Cash flows from financing activities: | ||
Net payments of commercial paper | (1,030,000) | |
Proceeds from issuance of debt | 1,250,000 | |
Repayment of debt | (250,000) | |
Net proceeds from sale of common stock | 121,924 | 56,306 |
Purchase of treasury stock | (2,478,322) | (930,903) |
Repayment of principal portion of finance lease liabilities | (44,844) | (43,776) |
Other, net | (13,779) | |
Net cash used in financing activities | (2,651,242) | (712,152) |
Effect of exchange rate changes on cash | 4,389 | (10,215) |
Net (decrease) increase in cash and cash equivalents | (775,169) | 332,818 |
Cash and cash equivalents at beginning of period | 1,750,815 | 176,300 |
Cash and cash equivalents at end of period | $ 975,646 | $ 509,118 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Loss | Treasury Stock [Member] | Total |
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 | |||||
Net income | 992,515 | 992,515 | ||||
Total other comprehensive income | (75,194) | $ (75,194) | ||||
Retirement of treasury shares | $ (19) | (99,686) | (1,878,595) | 1,978,300 | ||
Retirement of treasury shares, shares | (1,912) | (1,900) | ||||
Purchase of treasury stock | (930,903) | $ (930,903) | ||||
Issuance of common stock under stock options and stock purchase plans | $ 2 | 62,899 | 62,901 | |||
Issuance of common stock under stock options and stock purchase plans, Shares | 136 | |||||
Share-based compensation expense | 31,796 | 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 | |||||
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 | |||||
Net income | 342,896 | 342,896 | ||||
Total other comprehensive income | (116,179) | (116,179) | ||||
Purchase of treasury stock | (166,057) | (166,057) | ||||
Issuance of common stock under stock options and stock purchase plans | 7,599 | 7,599 | ||||
Issuance of common stock under stock options and stock purchase plans, Shares | 16 | |||||
Share-based compensation expense | 10,124 | 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 | |||||
Balance at Aug. 29, 2020 | $ 237 | 1,283,495 | (1,450,970) | (354,252) | (356,487) | (877,977) |
Balance, Shares at Aug. 29, 2020 | 23,697 | |||||
Net income | 1,384,543 | 1,384,543 | ||||
Total other comprehensive income | 49,870 | $ 49,870 | ||||
Retirement of treasury shares | $ (10) | (60,005) | (1,139,173) | 1,199,188 | ||
Retirement of treasury shares, shares | (1,044) | (1,000) | ||||
Purchase of treasury stock | (2,478,322) | $ (2,478,322) | ||||
Issuance of common stock under stock options and stock purchase plans | $ 2 | 121,922 | 121,924 | |||
Issuance of common stock under stock options and stock purchase plans, Shares | 244 | |||||
Share-based compensation expense | 36,570 | 36,570 | ||||
Balance at May. 08, 2021 | $ 229 | 1,381,982 | (1,205,600) | (304,382) | (1,635,621) | (1,763,392) |
Balance, shares at May. 08, 2021 | 22,897 | |||||
Balance at Feb. 13, 2021 | $ 228 | 1,314,424 | (1,801,764) | (300,839) | (735,622) | (1,523,573) |
Balance, Shares at Feb. 13, 2021 | 22,796 | |||||
Net income | 596,164 | 596,164 | ||||
Total other comprehensive income | (3,543) | (3,543) | ||||
Purchase of treasury stock | (899,999) | (899,999) | ||||
Issuance of common stock under stock options and stock purchase plans | $ 1 | 55,413 | 55,414 | |||
Issuance of common stock under stock options and stock purchase plans, Shares | 101 | |||||
Share-based compensation expense | 12,145 | 12,145 | ||||
Balance at May. 08, 2021 | $ 229 | $ 1,381,982 | $ (1,205,600) | $ (304,382) | $ (1,635,621) | $ (1,763,392) |
Balance, shares at May. 08, 2021 | 22,897 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Parenthetical) - shares shares in Thousands | 3 Months Ended | 8 Months Ended | 280 Months Ended | ||
May 08, 2021 | May 09, 2020 | May 08, 2021 | May 09, 2020 | May 08, 2021 | |
Statement of Stockholders' Deficit | |||||
Purchase of treasury stock, shares | 663 | 156 | 1,999 | 826 | 149,700 |
General
General | 8 Months Ended |
May 08, 2021 | |
General | |
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 29, 2020. Operating results for the twelve and thirty-six weeks ended May 8, 2021 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 28, 2021. 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 quarters of fiscal 2021 and 2020 each have 16 weeks. Recent Accounting Pronouncements: In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 million at August 29, 2020. |
Share-Based Payments
Share-Based Payments | 8 Months Ended |
May 08, 2021 | |
Share-Based Payments | |
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 196,520 shares during the thirty-six week period ended May 8, 2021 and granted options to purchase 188,324 shares during the comparable prior year period. The Company grants options to purchase common stock to certain of its employees under its equity incentive plans 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 8, 2021 and May 9, 2020, using the Black-Scholes-Merton multiple-option pricing valuation model, was $299.99 and $252.39 per share, respectively, using the following weighted average key assumptions: Thirty-Six Weeks Ended May 8, May 9, 2021 2020 Expected price volatility 28 % 22 % Risk-free interest rate 0.4 % 1.4 % Weighted average expected lives (in years) 5.6 5.5 Forfeiture rate 10 % 10 % Dividend yield 0 % 0 % During the thirty-six week period ended May 8, 2021, 239,177 stock options were exercised at a weighted average exercise price of $513.51. In the comparable prior year period, 121,236 stock options were exercised at a weighted average exercise price of $480.39. 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 8, 2021, total unrecognized stock-based compensation expense related to nonvested restricted stock unit awards, net of estimated forfeitures, was approximately $12.1 million, before income taxes, which we expect to recognize over an estimated weighted average period of 2.6 years. Transactions related to restricted stock units for the thirty-six weeks ended May 8, 2021 were as follows: Weighted- Number Average Grant of Shares Date Fair Value Nonvested at August 29, 2020 14,160 $ 910.63 Granted 8,064 1,149.77 Vested (5,805) 977.48 Canceled or forfeited (367) 1,025.45 Nonvested at May 8, 2021 16,052 $ 1,003.38 Total share-based compensation expense (a component of Operating, selling, general and administrative expenses) was $13.9 million for the twelve week period ended May 8, 2021, and $10.1 million for the comparable prior year period. Total share-based compensation expense was $38.1 million for the thirty-six week period ended May 8, 2021, and $32.3 million for the comparable prior year period. For the twelve week period ended May 8, 2021, 142,660 stock options were excluded from the diluted earnings per share computation because they would have been anti-dilutive. For the comparable prior year period, 187,965 anti-dilutive shares were excluded from the dilutive earnings per share computation. There were 166,456 anti-dilutive shares excluded from the diluted earnings per share computation for the thirty-six week period ended May 8, 2021, and 161,321 anti-dilutive shares excluded for the comparable prior year period. See AutoZone’s Annual Report on Form 10-K for the year ended August 29, 2020 and other filings with the SEC, 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 AutoZone, Inc. 2020 Omnibus Incentive Award Plan and the 2020 Director Compensation Program. |
Fair Value Measurements
Fair Value Measurements | 8 Months Ended |
May 08, 2021 | |
Fair Value Measurements | |
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 Marketable Debt Securities Measured at Fair Value on a Recurring Basis The Company’s marketable debt securities measured at fair value on a recurring basis were as follows: May 8, 2021 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 50,579 $ — $ — $ 50,579 Other long-term assets 58,015 17,857 — 75,872 $ 108,594 $ 17,857 $ — $ 126,451 August 29, 2020 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 75,651 $ 467 $ — $ 76,118 Other long-term assets 58,792 12,329 — 71,121 $ 134,443 $ 12,796 $ — $ 147,239 At May 8, 2021, the fair value measurement amounts for assets and liabilities recorded in the accompanying Condensed Consolidated Balance Sheets consisted of short-term marketable debt securities, which are included within Other current assets, and long-term marketable debt securities, which are included in Other long-term assets. 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. 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 08, 2021 | |
Marketable Debt Securities | |
Marketable Debt Securities | Note D – Marketable Debt Securities Marketable debt securities are carried at fair value, with unrealized gains and losses, net of income taxes, recorded in Accumulated other comprehensive loss until realized, and any credit risk related losses are recognized in net income in the period incurred. The Company’s basis for determining the cost of a security sold is the “Specific Identification Model.” May 8, 2021 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 31,660 $ 546 $ — $ 32,206 Government bonds 69,237 580 — 69,817 Mortgage-backed securities 4,912 64 — 4,976 Asset-backed securities and other 19,361 104 (13) 19,452 $ 125,170 $ 1,294 $ (13) $ 126,451 August 29, 2020 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 46,652 $ 970 $ (4) $ 47,618 Government bonds 44,594 1,172 — 45,766 Mortgage-backed securities 4,842 75 — 4,917 Asset-backed securities and other 48,798 143 (3) 48,938 $ 144,886 $ 2,360 $ (7) $ 147,239 The debt securities held at May 8, 2021, had effective maturities ranging from less than one year to approximately four years. At May 8, 2021, the Company held eight securities that are in an unrealized loss position of approximately $13 thousand. In evaluating whether a credit loss exists for the securities, the Company considers factors such as the 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. An allowance for credit losses was deemed unnecessary given consideration of the factors above. Included above in total available-for-sale marketable debt securities are $62.4 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 08, 2021 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note E – Derivative Financial Instruments At May 8, 2021, the Company had $28.6 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 periods ended May 8, 2021 and May 9, 2020, the Company reclassified $863 thousand and $509 thousand of net losses from Accumulated other comprehensive loss to Interest expense, respectively. During the thirty-six week period ended May 8, 2021 and the comparable prior year period, the Company reclassified $2.6 million and $1.5 million of net losses from Accumulated other comprehensive loss to Interest expense, respectively. The Company expects to reclassify $3.7 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 08, 2021 | |
Merchandise Inventories | |
Merchandise Inventories | Note F – Merchandise Inventories Merchandise inventories include related purchasing, storage and handling costs. Inventory cost has been determined using the last-in, first-out (“LIFO”) method stated at the lower of cost or net realizable value for domestic inventories and the weighted average cost method stated at the lower of cost or net realizable value 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. The difference between LIFO cost and replacement cost, which will be reduced upon experiencing price inflation on the Company’s merchandise purchases, was $363.7 million at May 8, 2021 and $357.0 million at August 29, 2020. |
Financing
Financing | 8 Months Ended |
May 08, 2021 | |
Financing | |
Financing | Note G – Financing The Company’s debt consisted of the following: May 8, August 29, (in thousands) 2021 2020 2.500% Senior Notes due April 2021, effective interest rate of 2.62% $ — $ 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% 500,000 500,000 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% 750,000 750,000 1.650% Senior Notes due January 2031, effective interest rate of 2.19% 600,000 600,000 Total debt before discounts and debt issuance costs 5,300,000 5,550,000 Less: Discounts and debt issuance costs 32,104 36,629 Long-term debt $ 5,267,896 $ 5,513,371 On March 15, 2021, the Company repaid the $250 million 2.500% Senior Notes due April 2021, which were callable at par in March 2021. As of May 8, 2021, the $500 million 3.700% Senior Notes due April 2022 are classified as long-term in the accompanying Condensed 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 Agreement. A 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 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; (iii) the termination date of the Revolving Credit Agreement was extended from November 18, 2021 until November 18, 2022; and (iv) the Company has the option to make one additional written request of the lenders to extend the termination As of May 8, 2021, the Company had no outstanding borrowings and $1.7 million of outstanding letters of credit under the Revolving Credit Agreement. Under the Company’s Revolving Credit Agreement, 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. On April 3, 2020, the Company entered into a 364-Day Credit Agreement (the “364-Day Credit Agreement”) to supplement the Company’s existing Revolving Credit Agreement. The 364-Day Credit Agreement provided for loans in the aggregate principal amount of up to $750 million. The 364-Day Credit Agreement had a termination date of, and any amounts borrowed under the 364-Day Credit Agreement were due and payable on, April 2, 2021. Revolving loans under the 364-Day Credit Agreement could be base rate loans, Eurodollar loans, or a combination of both, at the Company’s election. Effective February 22, 2021, the Company terminated the 364-Day Credit Agreement. There were no borrowings outstanding under the 364-Day Credit Agreement. The Company entered into the 364-Day Credit Agreement to augment its access to liquidity due to macroeconomic conditions existing at the time, and the Company determined the additional access to liquidity was no longer necessary. All Senior Notes are subject to an interest rate adjustment if the debt ratings assigned are downgraded (as defined in the agreements). Further, the Senior Notes contain a provision that repayment 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, sale and leaseback transactions and consolidations, mergers and the sale of assets. 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. The fair value of the Company’s debt was estimated at $4.758 billion as of May 8, 2021, and $6.081 billion as of August 29, 2020, 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 less than the carrying value of debt by $509.5 million and greater than the carrying value of debt by $567.5 million at May 8, 2021 and August 29, 2020, respectively, which reflects their face amount, adjusted for any unamortized debt issuance costs and discounts. As of May 8, 2021, 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 08, 2021 | |
Equity | |
Stock Repurchase Program | Note H – Stock Repurchase Program From January 1, 1998 to May 8, 2021, the Company has repurchased a total of 149.7 million shares of its common stock at an aggregate cost of $24.832 billion, including 2.0 million shares of its common stock at an aggregate cost of $2.478 billion during the thirty-six week period ended May 8, 2021. On December 15, 2020, the Board voted to increase the repurchase authorization by $1.5 billion. On March 23, 2021, the Board voted to increase the repurchase authorization by an additional $1.5 billion. This raised the total value of shares authorized to be repurchased to $26.15 billion. Considering the cumulative repurchases as of May 8, 2021, the Company had $1.318 billion remaining under the Board’s authorization to repurchase its common stock. During the thirty-six week period ended May 8, 2021, the Company retired 1.0 million shares of treasury stock which had previously been repurchased under the Company’s share repurchase program. The retirement increased Retained deficit by $1.139 billion and decreased Additional paid-in capital by $60.0 million. During the comparable prior year period, the Company retired 1.9 million shares of treasury stock, which increased Retained deficit by $1.879 billion and decreased Additional paid-in capital by $99.7 million. Subsequent to May 8, 2021, the Company has repurchased 119,391 shares of its common stock at an aggregate cost of $174.8 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 8 Months Ended |
May 08, 2021 | |
Equity | |
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 8, 2021 and May 9, 2020 consisted of the following: Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (3) on Securities Derivatives Total Balance at February 13, 2021 $ (279,725) $ 1,344 $ (22,458) $ (300,839) Other comprehensive (loss) before reclassifications (1)(2) (3,865) (346) — (4,211) Amounts reclassified from Accumulated other comprehensive (loss) (1)(2) — 9 659 668 Balance at May 8, 2021 $ (283,590) $ 1,007 $ (21,799) $ (304,382) Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (3) on Securities Derivatives Total Balance at February 15, 2020 $ (225,380) $ 581 $ (3,538) $ (228,337) Other comprehensive (loss) income before reclassifications (1)(2) (104,920) 1,116 (12,808) (116,612) Amounts reclassified from Accumulated other comprehensive income (loss) (1)(2) — 44 389 433 Balance at May 9, 2020 $ (330,300) $ 1,741 $ (15,957) $ (344,516) Changes in Accumulated other comprehensive loss for the thirty-six week periods ended May 8, 2021 and May 9, 2020 consisted of the following: Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (3) on Securities Derivatives Total Balance at August 29, 2020 $ (332,321) $ 1,845 $ (23,776) $ (354,252) Other comprehensive income (loss) before reclassifications (1)(2) 48,731 (861) — 47,870 Amounts reclassified from Accumulated other comprehensive (loss) income (1)(2) — 23 1,977 2,000 Balance at May 8, 2021 $ (283,590) $ 1,007 $ (21,799) $ (304,382) Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (3) on Securities Derivatives Total Balance at August 31, 2019 $ (265,598) $ 591 $ (4,315) $ (269,322) Other comprehensive (loss) income before reclassifications (1)(2) (64,702) 1,063 (12,808) (76,447) Amounts reclassified from Accumulated other comprehensive income (loss) (1)(2) — 87 1,166 1,253 Balance at May 9, 2020 $ (330,300) $ 1,741 $ (15,957) $ (344,516) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Amounts shown are net of taxes/tax benefits. (3) 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 . |
Litigation
Litigation | 8 Months Ended |
May 08, 2021 | |
Litigation | |
Litigation | Note J – 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. |
Segment Reporting
Segment Reporting | 8 Months Ended |
May 08, 2021 | |
Segment Reporting | |
Segment Reporting | Note K – 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 29, 2020. The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 6,657 locations 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 8, May 9, May 8, May 9, (in thousands) 2021 2020 2021 2020 Net Sales Auto Parts Stores $ 3,590,281 $ 2,724,604 $ 9,551,576 $ 7,932,831 Other 60,742 54,695 164,525 153,168 Total $ 3,651,023 $ 2,779,299 $ 9,716,101 $ 8,085,999 Segment Profit Auto Parts Stores $ 1,877,240 $ 1,454,705 $ 5,042,124 $ 4,252,136 Other 37,706 35,943 107,822 105,642 Gross profit 1,914,946 1,490,648 5,149,946 4,357,778 Operating, selling, general and administrative expenses (1,111,441) (998,975) (3,249,449) (2,958,144) Interest expense, net (45,026) (47,450) (137,217) (135,528) Income before income taxes $ 758,479 $ 444,223 $ 1,763,280 $ 1,264,106 |
General (Policies)
General (Policies) | 8 Months Ended |
May 08, 2021 | |
General | |
Fiscal Period | Operating results for the twelve and thirty-six weeks ended May 8, 2021 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 28, 2021. 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 quarters of fiscal 2021 and 2020 each have 16 weeks. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 million at August 29, 2020. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 8 Months Ended |
May 08, 2021 | |
Share-Based Payments | |
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 8, 2021 and May 9, 2020, using the Black-Scholes-Merton multiple-option pricing valuation model, was $299.99 and $252.39 per share, respectively, using the following weighted average key assumptions: Thirty-Six Weeks Ended May 8, May 9, 2021 2020 Expected price volatility 28 % 22 % Risk-free interest rate 0.4 % 1.4 % Weighted average expected lives (in years) 5.6 5.5 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 8, 2021 were as follows: Weighted- Number Average Grant of Shares Date Fair Value Nonvested at August 29, 2020 14,160 $ 910.63 Granted 8,064 1,149.77 Vested (5,805) 977.48 Canceled or forfeited (367) 1,025.45 Nonvested at May 8, 2021 16,052 $ 1,003.38 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 8 Months Ended |
May 08, 2021 | |
Fair Value Measurements | |
Company's marketable debt securities measured at Fair Value on Recurring Basis | The Company’s marketable debt securities measured at fair value on a recurring basis were as follows: May 8, 2021 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 50,579 $ — $ — $ 50,579 Other long-term assets 58,015 17,857 — 75,872 $ 108,594 $ 17,857 $ — $ 126,451 August 29, 2020 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 75,651 $ 467 $ — $ 76,118 Other long-term assets 58,792 12,329 — 71,121 $ 134,443 $ 12,796 $ — $ 147,239 |
Marketable Debt Securities (Tab
Marketable Debt Securities (Tables) | 8 Months Ended |
May 08, 2021 | |
Marketable Debt Securities | |
Available-for-Sale Marketable Securities | The Company’s available-for-sale marketable debt securities consisted of the following: May 8, 2021 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 31,660 $ 546 $ — $ 32,206 Government bonds 69,237 580 — 69,817 Mortgage-backed securities 4,912 64 — 4,976 Asset-backed securities and other 19,361 104 (13) 19,452 $ 125,170 $ 1,294 $ (13) $ 126,451 August 29, 2020 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 46,652 $ 970 $ (4) $ 47,618 Government bonds 44,594 1,172 — 45,766 Mortgage-backed securities 4,842 75 — 4,917 Asset-backed securities and other 48,798 143 (3) 48,938 $ 144,886 $ 2,360 $ (7) $ 147,239 |
Financing (Tables)
Financing (Tables) | 8 Months Ended |
May 08, 2021 | |
Financing | |
Schedule of Debt | The Company’s debt consisted of the following: May 8, August 29, (in thousands) 2021 2020 2.500% Senior Notes due April 2021, effective interest rate of 2.62% $ — $ 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% 500,000 500,000 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% 750,000 750,000 1.650% Senior Notes due January 2031, effective interest rate of 2.19% 600,000 600,000 Total debt before discounts and debt issuance costs 5,300,000 5,550,000 Less: Discounts and debt issuance costs 32,104 36,629 Long-term debt $ 5,267,896 $ 5,513,371 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 8 Months Ended |
May 08, 2021 | |
Equity | |
Changes in Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss for the twelve week periods ended May 8, 2021 and May 9, 2020 consisted of the following: Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (3) on Securities Derivatives Total Balance at February 13, 2021 $ (279,725) $ 1,344 $ (22,458) $ (300,839) Other comprehensive (loss) before reclassifications (1)(2) (3,865) (346) — (4,211) Amounts reclassified from Accumulated other comprehensive (loss) (1)(2) — 9 659 668 Balance at May 8, 2021 $ (283,590) $ 1,007 $ (21,799) $ (304,382) Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (3) on Securities Derivatives Total Balance at February 15, 2020 $ (225,380) $ 581 $ (3,538) $ (228,337) Other comprehensive (loss) income before reclassifications (1)(2) (104,920) 1,116 (12,808) (116,612) Amounts reclassified from Accumulated other comprehensive income (loss) (1)(2) — 44 389 433 Balance at May 9, 2020 $ (330,300) $ 1,741 $ (15,957) $ (344,516) Changes in Accumulated other comprehensive loss for the thirty-six week periods ended May 8, 2021 and May 9, 2020 consisted of the following: Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (3) on Securities Derivatives Total Balance at August 29, 2020 $ (332,321) $ 1,845 $ (23,776) $ (354,252) Other comprehensive income (loss) before reclassifications (1)(2) 48,731 (861) — 47,870 Amounts reclassified from Accumulated other comprehensive (loss) income (1)(2) — 23 1,977 2,000 Balance at May 8, 2021 $ (283,590) $ 1,007 $ (21,799) $ (304,382) Net Foreign Unrealized Currency and Gain (Loss) (in thousands) Other (3) on Securities Derivatives Total Balance at August 31, 2019 $ (265,598) $ 591 $ (4,315) $ (269,322) Other comprehensive (loss) income before reclassifications (1)(2) (64,702) 1,063 (12,808) (76,447) Amounts reclassified from Accumulated other comprehensive income (loss) (1)(2) — 87 1,166 1,253 Balance at May 9, 2020 $ (330,300) $ 1,741 $ (15,957) $ (344,516) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Amounts shown are net of taxes/tax benefits. (3) 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 . |
Segment Reporting (Tables)
Segment Reporting (Tables) | 8 Months Ended |
May 08, 2021 | |
Segment Reporting | |
Segment Results | Twelve Weeks Ended Thirty-Six Weeks Ended May 8, May 9, May 8, May 9, (in thousands) 2021 2020 2021 2020 Net Sales Auto Parts Stores $ 3,590,281 $ 2,724,604 $ 9,551,576 $ 7,932,831 Other 60,742 54,695 164,525 153,168 Total $ 3,651,023 $ 2,779,299 $ 9,716,101 $ 8,085,999 Segment Profit Auto Parts Stores $ 1,877,240 $ 1,454,705 $ 5,042,124 $ 4,252,136 Other 37,706 35,943 107,822 105,642 Gross profit 1,914,946 1,490,648 5,149,946 4,357,778 Operating, selling, general and administrative expenses (1,111,441) (998,975) (3,249,449) (2,958,144) Interest expense, net (45,026) (47,450) (137,217) (135,528) Income before income taxes $ 758,479 $ 444,223 $ 1,763,280 $ 1,264,106 |
General - (Detail)
General - (Detail) - USD ($) $ in Millions | May 08, 2021 | Aug. 29, 2020 |
General | ||
Allowances for uncollectible accounts | $ 11.1 | $ 10 |
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 08, 2021 | May 09, 2020 | |
Share-Based Payments | ||
Expected price volatility | 28.00% | 22.00% |
Risk-free interest rate | 0.40% | 1.40% |
Weighted average expected lives (in years) | 5 years 7 months 6 days | 5 years 6 months |
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 08, 2021$ / sharesshares | |
Share-Based Payments | |
Nonvested, Beginning balance, Number of Shares | shares | 14,160 |
Granted, Number of Shares | shares | 8,064 |
Vested, Number of Shares | shares | (5,805) |
Canceled or forfeited, Number of Shares | shares | (367) |
Nonvested, Ending balance, Number of Shares | shares | 16,052 |
Nonvested, Beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 910.63 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 1,149.77 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 977.48 |
Canceled or forfeited, Weighted Average Grant Date Fair Value | $ / shares | 1,025.45 |
Nonvested, Ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 1,003.38 |
Share-Based Payments - Addition
Share-Based Payments - Additional Informations (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 08, 2021 | May 09, 2020 | May 08, 2021 | May 09, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted | 196,520 | 188,324 | ||
Weighted average grant date fair value of options granted | $ 299.99 | $ 252.39 | ||
Stock options exercised - shares | 239,177 | 121,236 | ||
Stock options exercised - weighted average exercise price | $ 513.51 | $ 480.39 | ||
Share-based compensation expense | $ 13.9 | $ 10.1 | $ 38.1 | $ 32.3 |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service period | 4 years | |||
Non vested restricted stock unit award | $ 12.1 | $ 12.1 | ||
Estimated weighted average period | 2 years 7 months 6 days | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Anti-dilutive shares excluded from the computation of earnings per share | 142,660 | 187,965 | 166,456 | 161,321 |
Fair Value Measurements - Compa
Fair Value Measurements - Company's marketable debt securities measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | May 08, 2021 | Aug. 29, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 126,451 | $ 147,239 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 50,579 | 76,118 |
Other long-term assets | 75,872 | 71,121 |
Total | 126,451 | 147,239 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 50,579 | 75,651 |
Other long-term assets | 58,015 | 58,792 |
Total | 108,594 | 134,443 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 467 | |
Other long-term assets | 17,857 | 12,329 |
Total | $ 17,857 | $ 12,796 |
Marketable Debt Securities - Av
Marketable Debt Securities - Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | May 08, 2021 | Aug. 29, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | $ 125,170 | $ 144,886 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 1,294 | 2,360 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (13) | (7) |
Available-For-Sale Marketable Securities, Fair Value | 126,451 | 147,239 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 31,660 | 46,652 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 546 | 970 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (4) | |
Available-For-Sale Marketable Securities, Fair Value | 32,206 | 47,618 |
Government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 69,237 | 44,594 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 580 | 1,172 |
Available-For-Sale Marketable Securities, Fair Value | 69,817 | 45,766 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 4,912 | 4,842 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 64 | 75 |
Available-For-Sale Marketable Securities, Fair Value | 4,976 | 4,917 |
Asset-backed securities and other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 19,361 | 48,798 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 104 | 143 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (13) | (3) |
Available-For-Sale Marketable Securities, Fair Value | $ 19,452 | $ 48,938 |
Marketable Debt Securities - Ad
Marketable Debt Securities - Additional Information (Detail) $ in Thousands | 8 Months Ended | |
May 08, 2021USD ($)security | Aug. 29, 2020USD ($) | |
Marketable Debt Securities | ||
Available for sale securities debt maturity period range | less than one year to approximately four years | |
Marketable securities transferred | $ 62,400 | |
Number of securities available for sale loss position | security | 8 | |
Unrealized loss on securities | $ 13 | $ 7 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 08, 2021 | May 09, 2020 | May 08, 2021 | May 09, 2020 | |
Derivative Financial Instruments | ||||
Derivative losses recorded in Accumulated other comprehensive loss | $ 28,600 | $ 28,600 | ||
Net derivative losses amortized into Interest expense | 863 | $ 509 | 2,600 | $ 1,500 |
Net derivative loss expected to be reclassified over next 12 months | $ 3,700 | $ 3,700 |
Merchandise Inventories - (Deta
Merchandise Inventories - (Detail) - USD ($) $ in Millions | May 08, 2021 | Aug. 29, 2020 |
Merchandise Inventories | ||
Unrecorded adjustment for LIFO value in excess of replacement value | $ 363.7 | $ 357 |
Financing - Schedule of Debt (D
Financing - Schedule of Debt (Detail) - USD ($) $ in Thousands | May 08, 2021 | Aug. 29, 2020 |
Debt Instrument [Line Items] | ||
Total debt before discounts and debt issuance costs | $ 5,300,000 | $ 5,550,000 |
Less: Discounts and debt issuance costs | 32,104 | 36,629 |
Long-term debt | 5,267,896 | 5,513,371 |
2.500% Senior Notes due April 2021, effective interest rate of 2.62% | ||
Debt Instrument [Line Items] | ||
Senior notes | 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 |
1.650% Senior Notes due January 2031, effective interest rate of 2.19% | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 600,000 | $ 600,000 |
Financing - Schedule of Debt (P
Financing - Schedule of Debt (Parenthetical) (Detail) | 8 Months Ended | |
May 08, 2021 | Mar. 15, 2021 | |
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% |
Debt instrument maturity, month and year | 2021-04 | |
Effective interest rate | 2.62% | |
3.700% Senior Notes due April 2022, effective interest rate of 3.85% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.70% | |
Debt instrument maturity, month and year | 2022-04 | |
Effective interest rate | 3.85% | |
2.875% Senior Notes due January 2023, effective interest rate of 3.21% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 2.875% | |
Debt instrument maturity, month and year | 2023-01 | |
Effective interest rate | 3.21% | |
3.125% Senior Notes due July 2023, effective interest rate of 3.26% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.125% | |
Debt instrument maturity, month and year | 2023-07 | |
Effective interest rate | 3.26% | |
3.125% Senior Notes due April 2024, effective interest rate 3.32% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.125% | |
Debt instrument maturity, month and year | 2024-04 | |
Effective interest rate | 3.32% | |
3.250% Senior Notes due April 2025, effective interest rate 3.36% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.25% | |
Debt instrument maturity, month and year | 2025-04 | |
Effective interest rate | 3.36% | |
3.625% Senior Notes due April 2025, effective interest rate 3.78% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.625% | |
Debt instrument maturity, month and year | 2025-04 | |
Effective interest rate | 3.78% | |
3.125% Senior Notes due April 2026, effective interest rate of 3.28% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.125% | |
Debt instrument maturity, month and year | 2026-04 | |
Effective interest rate | 3.28% | |
3.750% Senior Notes due June 2027, effective interest rate of 3.83% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.75% | |
Debt instrument maturity, month and year | 2027-06 | |
Effective interest rate | 3.83% | |
3.750% Senior Notes due April 2029, effective interest rate of 3.86% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.75% | |
Debt instrument maturity, month and year | 2029-04 | |
Effective interest rate | 3.86% | |
4.000% Senior Notes due April 2030, effective interest rate 4.09% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 4.00% | |
Debt instrument maturity, month and year | 2030-04 | |
Effective interest rate | 4.09% | |
1.650% Senior Notes due January 2031, effective interest rate of 2.19% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 1.65% | |
Debt instrument maturity, month and year | 2031-01 | |
Effective interest rate | 2.19% |
Financing - Additional Informat
Financing - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 15, 2021 | Nov. 18, 2017 | Nov. 17, 2017 | May 08, 2021 | Feb. 22, 2021 | Aug. 29, 2020 | Apr. 03, 2020 |
Debt Instrument [Line Items] | |||||||
Repayments of Long-term Debt | $ 250,000 | ||||||
Remaining borrowing capacity under revolving credit facility | 1,998,000 | ||||||
Amount available under credit facility | 2,000,000 | ||||||
Maximum amount available under credit facility | $ 750,000 | ||||||
Fair value of the Company's debt | 4,758,000 | $ 6,081,000 | |||||
Excess (shortfall) of fair value of debt over (from) carrying value | $ 509,500 | 567,500 | |||||
Third Amended and Restated Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amount available under credit facility | $ 1,600,000 | ||||||
Maximum amount available under credit facility | $ 2,000,000 | ||||||
Credit facility expiration date | Nov. 18, 2021 | ||||||
Master Extension Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amount available under credit facility | $ 2,000,000 | ||||||
Maximum amount available under credit facility | $ 2,400,000 | ||||||
Credit facility expiration date | Nov. 18, 2022 | ||||||
Extended expiration of credit facility | 1 year | ||||||
Credit Agreement description | 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. | ||||||
Letters of credit, outstanding | $ 1,700 | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings, outstanding | $ 0 | $ 0 | |||||
2.500% Senior Notes due April 2021, effective interest rate of 2.62% | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | 250,000 | ||||||
Stated interest rate percentage | 2.50% | 2.50% | |||||
Repayments of Long-term Debt | $ 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 | |||||
Stated interest rate percentage | 3.70% |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ in Thousands | May 09, 2021 | Dec. 15, 2020 | May 08, 2021 | May 09, 2020 | May 08, 2021 | May 09, 2020 | May 08, 2021 |
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased cumulative, shares | 663,000 | 156,000 | 1,999,000 | 826,000 | 149,700,000 | ||
Purchase of treasury stock | $ 2,478,322 | $ 930,903 | $ 24,832,000 | ||||
Increase in authorization of stock repurchase, value | $ 1,500,000 | ||||||
Stock repurchase authorized | $ 26,150,000 | ||||||
Remaining value authorized for share repurchases | $ 1,318,000 | $ 1,318,000 | $ 1,318,000 | ||||
Retirement of treasury shares, shares | 1,000,000 | 1,900,000 | |||||
Retained Deficit [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Retirement of treasury shares | $ 1,139,173 | $ 1,878,595 | |||||
Additional Paid-In Capital [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Retirement of treasury shares | $ 60,005 | $ 99,686 | |||||
Common Stock | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Retirement of treasury shares, shares | 1,044,000 | 1,912,000 | |||||
Retirement of treasury shares | $ 10 | $ 19 | |||||
Subsequent Events [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased cumulative, shares | 119,391 | ||||||
Purchase of treasury stock | $ 174,800 |
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 08, 2021 | May 09, 2020 | May 08, 2021 | May 09, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ (1,523,573) | $ (1,711,119) | $ (877,977) | $ (1,713,851) |
Balance | (1,763,392) | (1,632,736) | (1,763,392) | (1,632,736) |
Foreign Currency and Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (279,725) | (225,380) | (332,321) | (265,598) |
Other comprehensive income (loss) before reclassifications | (3,865) | (104,920) | 48,731 | (64,702) |
Balance | (283,590) | (330,300) | (283,590) | (330,300) |
Net Unrealized Gain (Loss) on Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 1,344 | 581 | 1,845 | 591 |
Other comprehensive income (loss) before reclassifications | (346) | 1,116 | (861) | 1,063 |
Amounts reclassified from Accumulated other comprehensive (loss) income | 9 | 44 | 23 | 87 |
Balance | 1,007 | 1,741 | 1,007 | 1,741 |
Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (22,458) | (3,538) | (23,776) | (4,315) |
Other comprehensive income (loss) before reclassifications | (12,808) | (12,808) | ||
Amounts reclassified from Accumulated other comprehensive (loss) income | 659 | 389 | 1,977 | 1,166 |
Balance | (21,799) | (15,957) | (21,799) | (15,957) |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (300,839) | (228,337) | (354,252) | (269,322) |
Other comprehensive income (loss) before reclassifications | (4,211) | (116,612) | 47,870 | (76,447) |
Amounts reclassified from Accumulated other comprehensive (loss) income | 668 | 433 | 2,000 | 1,253 |
Balance | $ (304,382) | $ (344,516) | $ (304,382) | $ (344,516) |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 8 Months Ended |
May 08, 2021storesegment | |
Segment Reporting | |
Number of reportable segments | 1 |
Number of automotive parts and accessories locations in the United States, Mexico, and Brazil | store | 6,657 |
Number of operating segments | 2 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 08, 2021 | May 09, 2020 | May 08, 2021 | May 09, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 3,651,023 | $ 2,779,299 | $ 9,716,101 | $ 8,085,999 |
Gross profit | 1,914,946 | 1,490,648 | 5,149,946 | 4,357,778 |
Operating, selling, general and administrative expenses | (1,111,441) | (998,975) | (3,249,449) | (2,958,144) |
Interest expense, net | (45,026) | (47,450) | (137,217) | (135,528) |
Income before income taxes | 758,479 | 444,223 | 1,763,280 | 1,264,106 |
Auto Parts Stores | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,590,281 | 2,724,604 | 9,551,576 | 7,932,831 |
Gross profit | 1,877,240 | 1,454,705 | 5,042,124 | 4,252,136 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 60,742 | 54,695 | 164,525 | 153,168 |
Gross profit | $ 37,706 | $ 35,943 | $ 107,822 | $ 105,642 |