Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Nov. 22, 2014 | Dec. 15, 2014 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 22-Nov-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | AZO | |
Entity Registrant Name | AUTOZONE INC | |
Entity Central Index Key | 866787 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 31,897,765 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Nov. 22, 2014 | Aug. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $117,192 | $124,485 |
Accounts receivable | 195,521 | 200,899 |
Merchandise inventories | 3,280,228 | 3,140,100 |
Other current assets | 107,548 | 110,420 |
Deferred income taxes | 7,092 | 4,708 |
Total current assets | 3,707,581 | 3,580,612 |
Property and equipment: | ||
Property and equipment | 5,598,394 | 5,500,674 |
Less: Accumulated depreciation and amortization | -2,240,330 | -2,190,199 |
Property and equipment, net | 3,358,064 | 3,310,475 |
Goodwill | 383,917 | 367,829 |
Deferred income taxes | 45,723 | 45,137 |
Other long-term assets | 221,816 | 213,805 |
Other long-term assets, total | 651,456 | 626,771 |
Assets | 7,717,101 | 7,517,858 |
Current liabilities: | ||
Accounts payable | 3,690,754 | 3,609,199 |
Accrued expenses and other | 496,799 | 481,894 |
Income taxes payable | 114,550 | 41,200 |
Deferred income taxes | 229,626 | 227,891 |
Short-term borrowings | 559,235 | 180,910 |
Total current liabilities | 5,090,964 | 4,541,094 |
Long-term debt | 3,862,865 | 4,162,890 |
Other long-term liabilities | 426,082 | 435,731 |
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; 33,951 shares issued and 31,826 shares outstanding as of November 22, 2014; 33,858 shares issued and 32,304 shares outstanding as of August 30, 2014 | 340 | 339 |
Additional paid-in capital | 881,094 | 843,504 |
Retained deficit | -1,290,812 | -1,529,123 |
Accumulated other comprehensive loss | -146,151 | -128,903 |
Treasury stock, at cost | -1,107,281 | -807,674 |
Total stockholders' deficit | -1,662,810 | -1,621,857 |
Liabilities and Stockholders' Deficit | $7,717,101 | $7,517,858 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Nov. 22, 2014 | Aug. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 33,951,000 | 33,858,000 |
Common stock, shares outstanding | 31,826,000 | 32,304,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Nov. 22, 2014 | Nov. 23, 2013 |
Income Statement [Abstract] | ||
Net sales | $2,260,264 | $2,093,578 |
Cost of sales, including warehouse and delivery expenses | 1,083,603 | 1,007,881 |
Gross profit | 1,176,661 | 1,085,697 |
Operating, selling, general and administrative expenses | 768,099 | 701,971 |
Operating profit | 408,562 | 383,726 |
Interest expense, net | 37,060 | 42,431 |
Income before income taxes | 371,502 | 341,295 |
Income taxes | 133,192 | 123,208 |
Net income | $238,310 | $218,087 |
Weighted average shares for basic earnings per share | 32,132 | 34,111 |
Effect of dilutive stock equivalents | 629 | 565 |
Weighted average shares for diluted earnings per share | 32,761 | 34,676 |
Basic earnings per share | $7.42 | $6.39 |
Diluted earnings per share | $7.27 | $6.29 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 22, 2014 | Nov. 23, 2013 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $238,310 | $218,087 | ||
Other comprehensive (loss) income: | ||||
Pension liability adjustments, net of taxes | 1,217 | [1] | 952 | [1] |
Foreign currency translation adjustments | -18,361 | 7,507 | ||
Unrealized (losses) gains on marketable securities, net of taxes | -38 | [2] | 216 | [2] |
Net derivative activities, net of taxes | -66 | [3] | 26 | [3] |
Total other comprehensive (loss) income | -17,248 | 8,701 | ||
Comprehensive income | $221,062 | $226,788 | ||
[1] | Pension liability adjustments are presented net of taxes of $846 in fiscal 2015 and $636 in fiscal 2014 | |||
[2] | Unrealized (losses) gains on marketable securities are presented net of taxes of $21 in fiscal 2015 and $116 in fiscal 2014 | |||
[3] | Net derivative activities are presented net of taxes of $36 in fiscal 2015 and $16 in fiscal 2014 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 22, 2014 | Nov. 23, 2013 |
Statement of Comprehensive Income [Abstract] | ||
Pension liability adjustments, taxes | $846 | $636 |
Unrealized (losses) gains on marketable securities, taxes | 21 | 116 |
Net derivative activities, taxes | $36 | $16 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 22, 2014 | Nov. 23, 2013 |
Cash flows from operating activities: | ||
Net income | $238,310 | $218,087 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment and intangibles | 61,045 | 55,772 |
Amortization of debt origination fees | 1,521 | 1,711 |
Income tax benefit from exercise of stock options | -9,731 | -6,244 |
Deferred income taxes | -954 | 1,978 |
Share-based compensation expense | 8,804 | 9,252 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 23,508 | -1,241 |
Merchandise inventories | -84,498 | -83,629 |
Accounts payable and accrued expenses | 68,687 | 91,253 |
Income taxes payable | 83,180 | 84,638 |
Other, net | -14,644 | -14,234 |
Net cash provided by operating activities | 375,228 | 357,343 |
Cash flows from investing activities: | ||
Capital expenditures | -92,415 | -82,607 |
Acquisition of business, net of cash | -75,744 | |
Purchase of intangibles | -10,000 | |
Purchase of marketable securities | -6,474 | -6,312 |
Proceeds from sale of marketable securities | 3,860 | 6,044 |
Disposal of capital assets and other, net | -34 | -695 |
Net cash used in investing activities | -180,807 | -83,570 |
Cash flows from financing activities: | ||
Net proceeds (payments) from commercial paper | 78,300 | -13,500 |
Net proceeds from sale of common stock | 19,603 | 16,210 |
Purchase of treasury stock | -299,606 | -291,538 |
Income tax benefit from exercise of stock options | 9,731 | 6,244 |
Payments of capital lease obligations | -9,192 | -8,203 |
Net cash used in financing activities | -201,164 | -290,787 |
Effect of exchange rate changes on cash | -550 | 675 |
Net decrease in cash and cash equivalents | -7,293 | -16,339 |
Cash and cash equivalents at beginning of period | 124,485 | 142,191 |
Cash and cash equivalents at end of period | $117,192 | $125,852 |
General
General | 3 Months Ended |
Nov. 22, 2014 | |
Accounting Policies [Abstract] | |
General | Note A – General |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with instructions to 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. generally accepted accounting principles 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 30, 2014. | |
Operating results for the twelve weeks ended November 22, 2014, are not necessarily indicative of the results that may be expected for the fiscal year ending August 29, 2015. 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 for fiscal 2015 and 2014 each have 16 weeks. Additionally, the Company’s business is somewhat seasonal in nature, with the highest sales generally occurring during the months of February through September and the lowest sales generally occurring in the months of December and January. | |
Recently Issued Accounting Pronouncements: In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern. ASU 2014-15 will require management to assess an entity’s ability to continue as a going concern for each annual and interim reporting period and to provide related footnote disclosure in circumstances in which substantial doubt exists. The Company does not expect the provision of ASU 2014-15 to have a material impact on its consolidated financial statements as the application of this guidance affects disclosure only. This update will be effective for the Company beginning with its annual period ending August 26, 2017. |
ShareBased_Payments
Share-Based Payments | 3 Months Ended | ||||||||
Nov. 22, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Share-Based Payments | Note B – Share-Based Payments | ||||||||
AutoZone 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 and the discount on shares sold to employees under share purchase plans. 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. | |||||||||
Total share-based compensation expense (a component of Operating, selling, general and administrative expenses) was $8.8 million for the twelve week period ended November 22, 2014, and was $9.3 million for the comparable prior year period. | |||||||||
During the twelve week period ended November 22, 2014, 92,449 shares of stock options were exercised at a weighted average exercise price of $215.51. In the comparable prior year period, 87,378 shares of stock options were exercised at a weighted average exercise price of $193.24. | |||||||||
The Company made stock option grants of 325,500 shares during the twelve week period ended November 22, 2014, and granted options to purchase 341,785 shares during the comparable prior year period. The weighted average fair value of the stock option awards granted during the twelve week periods ended November 22, 2014, and November 23, 2013, using the Black-Scholes-Merton multiple-option pricing valuation model, was $104.66 and $96.39 per share, respectively, using the following weighted average key assumptions: | |||||||||
Twelve Weeks Ended | |||||||||
November 22, | November 23, | ||||||||
2014 | 2013 | ||||||||
Expected price volatility | 20 | % | 23 | % | |||||
Risk-free interest rate | 1.4 | % | 1 | % | |||||
Weighted average expected lives (in years) | 5 | 5.1 | |||||||
Forfeiture rate | 9 | % | 9 | % | |||||
Dividend yield | 0 | % | 0 | % | |||||
See AutoZone’s Annual Report on Form 10-K for the year ended August 30, 2014, 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 2011 Equity Incentive Award Plan, the 2011 Director Compensation Program, and the 2014 Director Compensation Plan. | |||||||||
For the twelve week period ended November 22, 2014, no stock options were excluded from the diluted earnings per share computation because they would have been anti-dilutive. For the comparable prior year period, no anti-dilutive shares were excluded from the dilutive earnings per share computation. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Nov. 22, 2014 | |||||||||||||||||
Fair Value Disclosures [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. The Company uses a hierarchy of valuation inputs to measure fair value. | |||||||||||||||||
The hierarchy prioritizes the inputs into three broad levels: | |||||||||||||||||
Level 1 inputs—unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. An active market for the asset or liability is one in which transactions for the asset or liability occur with sufficient frequency and volume to provide ongoing pricing information. | |||||||||||||||||
Level 2 inputs—inputs other than quoted market prices included in Level 1 that are observable, either directly or indirectly, for the asset or liability. Level 2 inputs include, but are not limited to, quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted market prices that are observable for the asset or liability, such as interest rate curves and yield curves observable at commonly quoted intervals, volatilities, credit risk and default rates. | |||||||||||||||||
Level 3 inputs—unobservable inputs for the asset or liability. | |||||||||||||||||
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: | |||||||||||||||||
November 22, 2014 | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Other current assets | $ | 11,745 | $ | 495 | $ | — | $ | 12,240 | |||||||||
Other long-term assets | 53,071 | 22,499 | — | 75,570 | |||||||||||||
$ | 64,816 | $ | 22,994 | $ | — | $ | 87,810 | ||||||||||
August 30, 2014 | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Other current assets | $ | 9,801 | $ | 599 | $ | — | $ | 10,400 | |||||||||
Other long-term assets | 53,133 | 21,722 | — | 74,855 | |||||||||||||
$ | 62,934 | $ | 22,321 | $ | — | $ | 85,255 | ||||||||||
At November 22, 2014, the fair value measurement amounts for assets and liabilities recorded in the accompanying Condensed Consolidated Balance Sheet consisted of short-term marketable securities of $12.2 million, which are included within Other current assets and long-term marketable securities of $75.6 million, which are included in Other long-term assets. The Company’s marketable 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 the marketable securities, by asset class, are described in “Note D – Marketable Securities.” | |||||||||||||||||
Non-Financial Assets measured at Fair Value on a Non-Recurring Basis | |||||||||||||||||
Non-financial assets are required to be measured at fair value on a non-recurring basis in certain circumstances, including the event of impairment. The assets could include assets acquired in an acquisition as well as property, plant and equipment that are determined to be impaired. During the twelve week periods ended November 22, 2014 and November 23, 2013, the Company did not have any other significant non-financial assets measured at fair value on a non-recurring basis in periods subsequent to initial recognition. | |||||||||||||||||
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 H – Financing.” |
Marketable_Securities
Marketable Securities | 3 Months Ended | ||||||||||||||||
Nov. 22, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Marketable Securities | Note D – Marketable Securities | ||||||||||||||||
The Company’s basis for determining the cost of a security sold is the “Specific Identification Model.” Unrealized gains (losses) on marketable securities are recorded in Accumulated other comprehensive loss. The Company’s available-for-sale marketable securities consisted of the following: | |||||||||||||||||
November 22, 2014 | |||||||||||||||||
(in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Basis | Gains | Losses | |||||||||||||||
Corporate securities | $ | 39,665 | $ | 99 | $ | (46 | ) | $ | 39,718 | ||||||||
Government bonds | 16,816 | 36 | — | 16,852 | |||||||||||||
Mortgage-backed securities | 10,292 | 27 | (80 | ) | 10,239 | ||||||||||||
Asset-backed securities and other | 20,978 | 23 | — | 21,001 | |||||||||||||
$ | 87,751 | $ | 185 | $ | (126 | ) | $ | 87,810 | |||||||||
August 30, 2014 | |||||||||||||||||
(in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Basis | Gains | Losses | |||||||||||||||
Corporate securities | $ | 37,265 | $ | 137 | $ | (15 | ) | $ | 37,387 | ||||||||
Government bonds | 16,822 | 16 | (1 | ) | 16,837 | ||||||||||||
Mortgage-backed securities | 8,791 | 22 | (77 | ) | 8,736 | ||||||||||||
Asset-backed securities and other | 22,260 | 35 | — | 22,295 | |||||||||||||
$ | 85,138 | $ | 210 | $ | (93 | ) | $ | 85,255 | |||||||||
The debt securities held at November 22, 2014, 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 securities during the twelve week period ended November 22, 2014. | |||||||||||||||||
The Company holds 44 securities that are in an unrealized loss position of approximately $126 thousand at November 22, 2014. 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 marketable securities are $45.3 million of marketable 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_Instrumen
Derivative Financial Instruments | 3 Months Ended |
Nov. 22, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note E – Derivative Financial Instruments |
At November 22, 2014, the Company had $11.6 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 period ended November 22, 2014, the Company reclassified $42 thousand of net losses from Accumulated other comprehensive loss to Interest expense. In the comparable prior year period, the Company reclassified $42 thousand of net losses from Accumulated other comprehensive loss to Interest expense. The Company expects to reclassify $390 thousand of net losses from Accumulated other comprehensive loss to Interest expense over the next twelve months. |
Merchandise_Inventories
Merchandise Inventories | 3 Months Ended |
Nov. 22, 2014 | |
Inventory Disclosure [Abstract] | |
Merchandise Inventories | Note F – Merchandise Inventories |
Inventories are stated at the lower of cost or market using the last-in, first-out (“LIFO”) method for domestic inventories and the first-in, first-out (“FIFO”) method for Mexico inventories. Included in inventories are related purchasing, storage and handling costs. Due to price deflation on the Company’s merchandise purchases, the Company’s domestic inventory balances are effectively maintained under the FIFO method. The Company’s policy is not to write up inventory in excess of replacement cost. The cumulative balance of this unrecorded adjustment, which will be reduced upon experiencing price inflation on the Company’s merchandise purchases, was $312.9 million at November 22, 2014, and $307.2 million at August 30, 2014. |
Pension_and_Savings_Plans
Pension and Savings Plans | 3 Months Ended | ||||||||
Nov. 22, 2014 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Pension and Savings Plans | Note G – Pension and Savings Plans | ||||||||
The components of net periodic pension expense related to the Company’s pension plans consisted of the following: | |||||||||
Twelve Weeks Ended | |||||||||
(in thousands) | November 22, | November 23, | |||||||
2014 | 2013 | ||||||||
Interest cost | $ | 2,847 | $ | 3,016 | |||||
Expected return on plan assets | (3,757 | ) | (3,551 | ) | |||||
Amortization of net loss | 2,063 | 1,588 | |||||||
Net periodic pension expense | $ | 1,153 | $ | 1,053 | |||||
The Company makes contributions in amounts at least equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act of 2006. During the twelve week period ended November 22, 2014, the Company made contributions to its funded plan in the amount of $1.2 million. The Company expects to contribute approximately $1.4 million to the plan during the remainder of fiscal 2015; however, a change to the expected cash funding may be impacted by a change in interest rates or a change in the actual or expected return on plan assets. |
Financing
Financing | 3 Months Ended | ||||||||
Nov. 22, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Financing | Note H – Financing | ||||||||
The Company’s long-term debt consisted of the following: | |||||||||
(in thousands) | November 22, | August 30, | |||||||
2014 | 2014 | ||||||||
5.750% Senior Notes due January 2015, effective interest rate of 5.89% | $ | 500,000 | $ | 500,000 | |||||
5.500% Senior Notes due November 2015, effective interest rate of 4.86% | 300,000 | 300,000 | |||||||
6.950% Senior Notes due June 2016, effective interest rate of 7.09% | 200,000 | 200,000 | |||||||
1.300% Senior Notes due January 2017, effective interest rate 1.43% | 400,000 | 400,000 | |||||||
7.125% Senior Notes due August 2018, effective interest rate of 7.28% | 250,000 | 250,000 | |||||||
4.000% Senior Notes due November 2020, effective interest rate of 4.43% | 500,000 | 500,000 | |||||||
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 | |||||||
Commercial paper, weighted average interest rate of 0.35% and 0.27% at November 22, 2014 and August 30, 2014, respectively | 972,100 | 893,800 | |||||||
Total debt | 4,422,100 | 4,343,800 | |||||||
Less: Short-term borrowings | 559,235 | 180,910 | |||||||
Long-term debt | $ | 3,862,865 | $ | 4,162,890 | |||||
As of November 22, 2014, $972.1 million of commercial paper borrowings and $240.8 million of the 5.750% Senior Notes due January 2015 are classified as long-term in the accompanying Consolidated Balance Sheets as the Company has the ability and intent to refinance on a long-term basis through available capacity in its revolving credit facility. As of November 22, 2014, the Company had $1.213 billion of availability under its $1.25 billion revolving credit facility, expiring in September 2017, which would allow it to replace these short-term obligations with long-term financing. | |||||||||
On January 14, 2014, the Company issued $400 million in 1.300% Senior Notes due January 2017 under its shelf registration statement filed with the SEC on April 17, 2012 (the “Shelf Registration”). The 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 on January 14, 2014, were used to repay a portion of the $500 million in 6.500% Senior Notes due January 2014. The Company used commercial paper borrowings to repay the remainder of the 6.500% Senior Notes. | |||||||||
In December 2013, the Company amended and restated its revolving credit facility, increasing the capacity under the revolving credit facility to $1.25 billion. This credit facility is available for refinancing of existing indebtedness and other general corporate purposes, including working capital, capital expenditures, share repurchases and acquisitions permitted under the documentation for the credit facility. The capacity of the credit facility may be increased to $1.5 billion prior to the maturity date at the Company’s election and subject to bank credit capacity and approval, may include up to $200 million in letters of credit and may include up to $175 million in capital leases each fiscal year. Under the revolving credit facility, the Company may borrow funds consisting of Eurodollar loans or base rate loans. Interest accrues on Eurodollar loans at a defined Eurodollar rate, defined as LIBOR plus the applicable percentage, as defined in the revolving credit facility, depending upon the Company’s senior, unsecured, (non-credit enhanced) long-term debt rating. Interest accrues on base rate loans as defined in the credit facility. The Company also has the option to borrow funds under the terms of a swingline loan subfacility. The revolving credit facility expires in September 2017. | |||||||||
The fair value of the Company’s debt was estimated at $4.523 billion as of November 22, 2014, and $4.480 billion as of August 30, 2014, 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 $100.8 million at November 22, 2014, and $136.6 million at August 30, 2014. |
Stock_Repurchase_Program
Stock Repurchase Program | 3 Months Ended |
Nov. 22, 2014 | |
Equity [Abstract] | |
Stock Repurchase Program | Note I – Stock Repurchase Program |
From January 1, 1998 to November 22, 2014, the Company has repurchased a total of 137.5 million shares at an aggregate cost of $14.330 billion, including 571,106 shares of its common stock at an aggregate cost of $299.6 million during the twelve week period ended November 22, 2014. On June 17, 2014, the Board voted to increase the authorization by $750 million to raise the cumulative share repurchase authorization from $14.15 billion to $14.9 billion. Considering the cumulative repurchases as of November 22, 2014, the Company had $569.6 million remaining under the Board’s authorization to repurchase its common stock. | |
Subsequent to November 22, 2014, the Company has repurchased no shares of its common stock. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||||||||||
Nov. 22, 2014 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Accumulated Other Comprehensive Loss | Note J – Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Accumulated other comprehensive loss includes certain adjustments to pension liabilities, foreign currency translation adjustments, certain activity for interest rate swaps and treasury rate locks that qualify as cash flow hedges and unrealized gains (losses) on available-for-sale securities. Changes in Accumulated other comprehensive loss consisted of the following: | |||||||||||||||||||||
(in thousands) | Pension | Foreign | Net | Derivatives | Total | ||||||||||||||||
Liability | Currency (3) | Unrealized | |||||||||||||||||||
Gain on | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Balance at August 30, 2014 | $ | (63,820 | ) | $ | (57,836 | ) | $ | 76 | $ | (7,323 | ) | $ | (128,903 | ) | |||||||
Other comprehensive loss before reclassifications | — | (18,361 | ) | (33 | ) | (91 | ) | (18,485 | ) | ||||||||||||
Amounts reclassified from Accumulated other comprehensive loss (1) | 1,217 | (2) | — | (5 | )(4) | 25 | (5) | 1,237 | |||||||||||||
Balance at November 22, 2014 | $ | (62,603 | ) | $ | (76,197 | ) | $ | 38 | $ | (7,389 | ) | $ | (146,151 | ) | |||||||
(in thousands) | Pension | Foreign | Net | Derivatives | Total | ||||||||||||||||
Liability | Currency (3) | Unrealized | |||||||||||||||||||
Gain on | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Balance at August 31, 2013 | $ | (50,861 | ) | $ | (62,483 | ) | $ | (25 | ) | $ | (7,419 | ) | $ | (120,788 | ) | ||||||
Other comprehensive income before reclassifications | — | 7,507 | 226 | — | 7,733 | ||||||||||||||||
Amounts reclassified from Accumulated other comprehensive loss (1) | 952 | (2) | — | (10 | )(4) | 26 | (5) | 968 | |||||||||||||
Balance at November 23, 2013 | $ | (49,909 | ) | $ | (54,976 | ) | $ | 191 | $ | (7,393 | ) | $ | (112,087 | ) | |||||||
-1 | Amounts in parentheses indicate debits to Accumulated other comprehensive loss. | ||||||||||||||||||||
-2 | Represents amortization of pension liability adjustments, net of taxes of $846 in fiscal 2015 and $636 in fiscal 2014, which is recorded in Operating, selling, general and administrative expenses on the Condensed Consolidated Statements of Income. See “Note G – Pension and Savings Plans” for further discussion. | ||||||||||||||||||||
-3 | Foreign currency is not shown net of additional U.S. tax as earnings of non-U.S. subsidiaries are intended to be permanently reinvested. | ||||||||||||||||||||
-4 | Represents realized gains on marketable securities, net of taxes of $3 in fiscal 2015 and $5 in fiscal 2014, which is recorded in Operating, selling, general, and administrative expenses on the Condensed Consolidated Statements of Income. See “Note D – Marketable Securities” for further discussion. | ||||||||||||||||||||
-5 | Represents gains and losses on derivatives, net of taxes of $17 in fiscal 2015 and $16 in fiscal 2014, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion. |
Acquisition
Acquisition | 3 Months Ended |
Nov. 22, 2014 | |
Business Combinations [Abstract] | |
Acquisition | Note K – Acquisition |
Effective September 27, 2014, the Company acquired the outstanding stock of Interamerican Motor Corporation (“IMC”), the second largest distributor of quality import replacement parts in the United States, for $75.7 million, net of cash. IMC specializes in parts coverage for European and Asian cars, and as of November 22, 2014, operated 17 branches. With this acquisition, the Company expects to grow its share in the aftermarket import car parts market. The results of operations from IMC have been included in the Company’s Auto Parts Stores business activities since the date of acquisition. Pro forma results of operations related to the acquisition of IMC are not presented as IMC’s results are not material to the Company’s condensed consolidated statements of operations. The purchase price allocation resulted in goodwill of $16.1 million and intangible assets totaling $8.3 million. Goodwill generated from the acquisition is primarily attributable to expected synergies and the assembled workforce. The allocation of the purchase price to goodwill and intangible assets is preliminary as of November 22, 2014 and subject to change upon completion of the final valuation of these assets. |
Goodwill_and_Intangibles
Goodwill and Intangibles | 3 Months Ended | ||||||||||||||||
Nov. 22, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and Intangibles | Note L – Goodwill and Intangibles | ||||||||||||||||
The changes in the carrying amount of goodwill are as follows: | |||||||||||||||||
(in thousands) | Auto Parts | Other | Total | ||||||||||||||
Stores | |||||||||||||||||
Net balance as of August 30, 2014 | $ | 302,645 | $ | 65,184 | $ | 367,829 | |||||||||||
Goodwill added through acquisition (1) | 16,088 | — | 16,088 | ||||||||||||||
Goodwill adjustments | — | — | — | ||||||||||||||
Net balance as of November 22, 2014 | $ | 318,733 | $ | 65,184 | $ | 383,917 | |||||||||||
-1 | See Note K for discussion of the acquisition completed during the twelve weeks ended November 22, 2014 | ||||||||||||||||
The Company recorded an increase to intangible assets of $8.3 million during the twelve weeks ended November 22, 2014 related to the acquisition of IMC. The carrying amounts of intangible assets are included in Other long-term assets as follows: | |||||||||||||||||
(in thousands) | Estimated | Gross | Accumulated | Net | |||||||||||||
Useful Life | Carrying | Amortization | Carrying | ||||||||||||||
Amount | Amount | ||||||||||||||||
Amortizing intangible assets: | |||||||||||||||||
Technology | 3-5 years | $ | 10,570 | $ | (4,042 | ) | $ | 6,528 | |||||||||
Noncompete agreements | 5 years | 1,300 | (503 | ) | 797 | ||||||||||||
Customer relationships | 3-15 years | 54,676 | (7,486 | ) | 47,190 | ||||||||||||
$ | 66,546 | $ | (12,031 | ) | 54,515 | ||||||||||||
Non-amortizing intangible asset: | |||||||||||||||||
Trade name | 26,600 | ||||||||||||||||
Total intangible assets other than goodwill | $ | 81,115 | |||||||||||||||
Amortization expense of intangible assets for the twelve week period ended November 22, 2014 was $2.1 million. During the comparable prior year period there was $946 thousand in amortization expense of intangible assets. | |||||||||||||||||
During the twelve week period ended November 22, 2014, the Company made an installment payment for $10 million related to certain customer relationships purchased during fiscal 2014 relating to its ALLDATA operations. |
Litigation
Litigation | 3 Months Ended |
Nov. 22, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Note M – Litigation |
In 2004, the Company acquired a store site in Mount Ephraim, New Jersey that had previously been the site of a gasoline service station and contained evidence of groundwater contamination. Upon acquisition, the Company voluntarily reported the groundwater contamination issue to the New Jersey Department of Environmental Protection and entered into a Voluntary Remediation Agreement providing for the remediation of the contamination associated with the property. The Company has conducted and paid for (at an immaterial cost to the Company) remediation of contamination on the property. The Company is also investigating, and will be addressing, potential vapor intrusion impacts in downgradient residences and businesses. The New Jersey Department of Environmental Protection has asserted, in a Directive and Notice to Insurers dated February 19, 2013 and again in an Amended Directive and Notice to Insurers dated January 13, 2014 (collectively the “Directives”), that the Company is liable for the downgradient impacts under a joint and severable liability theory. The Company has contested any such assertions due to the existence of other entities/sources of contamination, some of which are named in the Directives, in the area of the property. Pursuant to the Voluntary Remediation Agreement, upon completion of all remediation required by the agreement, the Company believes it should be eligible to be reimbursed up to 75 percent of qualified remediation costs by the State of New Jersey. The Company has asked the state for clarification that the agreement applies to off-site work, and the state is considering the request. Although the aggregate amount of additional costs that the Company may incur pursuant to the remediation cannot currently be ascertained, the Company does not currently believe that fulfillment of its obligations under the agreement or otherwise will result in costs that are material to its financial condition, results of operations or cash flow. | |
In July 2014, the Company received a subpoena from the District Attorney of the County of Alameda, along with other environmental prosecutorial offices in the state of California, seeking documents and information related to the handling, storage and disposal of hazardous waste. The Company is cooperating fully with the request and cannot predict the ultimate outcome of these efforts. | |
The Company is involved in various other legal proceedings incidental to the conduct of its business, including 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. The Company does not currently believe that, either individually or in the aggregate, these matters will result in liabilities material to the Company’s financial condition, results of operations or cash flows. |
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||||
Nov. 22, 2014 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Reporting | Note N – Segment Reporting | ||||||||
The Company’s four operating segments (Domestic Auto Parts, Mexico, Brazil, and IMC) 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 in its Annual Report on Form 10-K for the year ended August 30, 2014. | |||||||||
The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 5,434 locations in the United States, Puerto Rico, Mexico, and Brazil. Each location 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 three 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; E-commerce, which includes direct sales to customers through www.autozone.com; and AutoAnything, which includes direct sales to customers through www.autoanything.com. | |||||||||
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 | |||||||||
(in thousands) | November 22, | November 23, | |||||||
2014 | 2013 | ||||||||
Net Sales | |||||||||
Auto Parts Stores | $ | 2,181,532 | $ | 2,019,570 | |||||
Other | 78,732 | 74,008 | |||||||
Total | $ | 2,260,264 | $ | 2,093,578 | |||||
Segment Profit | |||||||||
Auto Parts Stores | $ | 1,132,335 | $ | 1,044,016 | |||||
Other | 44,326 | 41,681 | |||||||
Gross profit | 1,176,661 | 1,085,697 | |||||||
Operating, selling, general and administrative expenses | (768,099 | ) | (701,971 | ) | |||||
Interest expense, net | (37,060 | ) | (42,431 | ) | |||||
Income before income taxes | $ | 371,502 | $ | 341,295 | |||||
General_Policies
General (Policies) | 3 Months Ended |
Nov. 22, 2014 | |
Accounting Policies [Abstract] | |
Fiscal Period | Operating results for the twelve weeks ended November 22, 2014, are not necessarily indicative of the results that may be expected for the fiscal year ending August 29, 2015. 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 for fiscal 2015 and 2014 each have 16 weeks. Additionally, the Company’s business is somewhat seasonal in nature, with the highest sales generally occurring during the months of February through September and the lowest sales generally occurring in the months of December and January. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern. ASU 2014-15 will require management to assess an entity’s ability to continue as a going concern for each annual and interim reporting period and to provide related footnote disclosure in circumstances in which substantial doubt exists. The Company does not expect the provision of ASU 2014-15 to have a material impact on its consolidated financial statements as the application of this guidance affects disclosure only. This update will be effective for the Company beginning with its annual period ending August 26, 2017. |
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 3 Months Ended | ||||||||
Nov. 22, 2014 | |||||||||
Disclosure of Compensation Related Costs, 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 twelve week periods ended November 22, 2014, and November 23, 2013, using the Black-Scholes-Merton multiple-option pricing valuation model, was $104.66 and $96.39 per share, respectively, using the following weighted average key assumptions: | ||||||||
Twelve Weeks Ended | |||||||||
November 22, | November 23, | ||||||||
2014 | 2013 | ||||||||
Expected price volatility | 20 | % | 23 | % | |||||
Risk-free interest rate | 1.4 | % | 1 | % | |||||
Weighted average expected lives (in years) | 5 | 5.1 | |||||||
Forfeiture rate | 9 | % | 9 | % | |||||
Dividend yield | 0 | % | 0 | % |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Nov. 22, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Company's Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis were as follows: | ||||||||||||||||
November 22, 2014 | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Other current assets | $ | 11,745 | $ | 495 | $ | — | $ | 12,240 | |||||||||
Other long-term assets | 53,071 | 22,499 | — | 75,570 | |||||||||||||
$ | 64,816 | $ | 22,994 | $ | — | $ | 87,810 | ||||||||||
August 30, 2014 | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Other current assets | $ | 9,801 | $ | 599 | $ | — | $ | 10,400 | |||||||||
Other long-term assets | 53,133 | 21,722 | — | 74,855 | |||||||||||||
$ | 62,934 | $ | 22,321 | $ | — | $ | 85,255 | ||||||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 3 Months Ended | ||||||||||||||||
Nov. 22, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Available-for-Sale Marketable Securities | The Company’s available-for-sale marketable securities consisted of the following: | ||||||||||||||||
November 22, 2014 | |||||||||||||||||
(in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Basis | Gains | Losses | |||||||||||||||
Corporate securities | $ | 39,665 | $ | 99 | $ | (46 | ) | $ | 39,718 | ||||||||
Government bonds | 16,816 | 36 | — | 16,852 | |||||||||||||
Mortgage-backed securities | 10,292 | 27 | (80 | ) | 10,239 | ||||||||||||
Asset-backed securities and other | 20,978 | 23 | — | 21,001 | |||||||||||||
$ | 87,751 | $ | 185 | $ | (126 | ) | $ | 87,810 | |||||||||
August 30, 2014 | |||||||||||||||||
(in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Basis | Gains | Losses | |||||||||||||||
Corporate securities | $ | 37,265 | $ | 137 | $ | (15 | ) | $ | 37,387 | ||||||||
Government bonds | 16,822 | 16 | (1 | ) | 16,837 | ||||||||||||
Mortgage-backed securities | 8,791 | 22 | (77 | ) | 8,736 | ||||||||||||
Asset-backed securities and other | 22,260 | 35 | — | 22,295 | |||||||||||||
$ | 85,138 | $ | 210 | $ | (93 | ) | $ | 85,255 | |||||||||
Pension_and_Savings_Plans_Tabl
Pension and Savings Plans (Tables) | 3 Months Ended | ||||||||
Nov. 22, 2014 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Net Periodic Benefit Expense | The components of net periodic pension expense related to the Company’s pension plans consisted of the following: | ||||||||
Twelve Weeks Ended | |||||||||
(in thousands) | November 22, | November 23, | |||||||
2014 | 2013 | ||||||||
Interest cost | $ | 2,847 | $ | 3,016 | |||||
Expected return on plan assets | (3,757 | ) | (3,551 | ) | |||||
Amortization of net loss | 2,063 | 1,588 | |||||||
Net periodic pension expense | $ | 1,153 | $ | 1,053 | |||||
Financing_Tables
Financing (Tables) | 3 Months Ended | ||||||||
Nov. 22, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Debt | The Company’s long-term debt consisted of the following: | ||||||||
(in thousands) | November 22, | August 30, | |||||||
2014 | 2014 | ||||||||
5.750% Senior Notes due January 2015, effective interest rate of 5.89% | $ | 500,000 | $ | 500,000 | |||||
5.500% Senior Notes due November 2015, effective interest rate of 4.86% | 300,000 | 300,000 | |||||||
6.950% Senior Notes due June 2016, effective interest rate of 7.09% | 200,000 | 200,000 | |||||||
1.300% Senior Notes due January 2017, effective interest rate 1.43% | 400,000 | 400,000 | |||||||
7.125% Senior Notes due August 2018, effective interest rate of 7.28% | 250,000 | 250,000 | |||||||
4.000% Senior Notes due November 2020, effective interest rate of 4.43% | 500,000 | 500,000 | |||||||
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 | |||||||
Commercial paper, weighted average interest rate of 0.35% and 0.27% at November 22, 2014 and August 30, 2014, respectively | 972,100 | 893,800 | |||||||
Total debt | 4,422,100 | 4,343,800 | |||||||
Less: Short-term borrowings | 559,235 | 180,910 | |||||||
Long-term debt | $ | 3,862,865 | $ | 4,162,890 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||||||||||
Nov. 22, 2014 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Changes in Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss consisted of the following: | ||||||||||||||||||||
(in thousands) | Pension | Foreign | Net | Derivatives | Total | ||||||||||||||||
Liability | Currency (3) | Unrealized | |||||||||||||||||||
Gain on | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Balance at August 30, 2014 | $ | (63,820 | ) | $ | (57,836 | ) | $ | 76 | $ | (7,323 | ) | $ | (128,903 | ) | |||||||
Other comprehensive loss before reclassifications | — | (18,361 | ) | (33 | ) | (91 | ) | (18,485 | ) | ||||||||||||
Amounts reclassified from Accumulated other comprehensive loss (1) | 1,217 | (2) | — | (5 | )(4) | 25 | (5) | 1,237 | |||||||||||||
Balance at November 22, 2014 | $ | (62,603 | ) | $ | (76,197 | ) | $ | 38 | $ | (7,389 | ) | $ | (146,151 | ) | |||||||
(in thousands) | Pension | Foreign | Net | Derivatives | Total | ||||||||||||||||
Liability | Currency (3) | Unrealized | |||||||||||||||||||
Gain on | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Balance at August 31, 2013 | $ | (50,861 | ) | $ | (62,483 | ) | $ | (25 | ) | $ | (7,419 | ) | $ | (120,788 | ) | ||||||
Other comprehensive income before reclassifications | — | 7,507 | 226 | — | 7,733 | ||||||||||||||||
Amounts reclassified from Accumulated other comprehensive loss (1) | 952 | (2) | — | (10 | )(4) | 26 | (5) | 968 | |||||||||||||
Balance at November 23, 2013 | $ | (49,909 | ) | $ | (54,976 | ) | $ | 191 | $ | (7,393 | ) | $ | (112,087 | ) | |||||||
-1 | Amounts in parentheses indicate debits to Accumulated other comprehensive loss. | ||||||||||||||||||||
-2 | Represents amortization of pension liability adjustments, net of taxes of $846 in fiscal 2015 and $636 in fiscal 2014, which is recorded in Operating, selling, general and administrative expenses on the Condensed Consolidated Statements of Income. See “Note G – Pension and Savings Plans” for further discussion. | ||||||||||||||||||||
-3 | Foreign currency is not shown net of additional U.S. tax as earnings of non-U.S. subsidiaries are intended to be permanently reinvested. | ||||||||||||||||||||
-4 | Represents realized gains on marketable securities, net of taxes of $3 in fiscal 2015 and $5 in fiscal 2014, which is recorded in Operating, selling, general, and administrative expenses on the Condensed Consolidated Statements of Income. See “Note D – Marketable Securities” for further discussion. | ||||||||||||||||||||
-5 | Represents gains and losses on derivatives, net of taxes of $17 in fiscal 2015 and $16 in fiscal 2014, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion |
Goodwill_and_Intangibles_Table
Goodwill and Intangibles (Tables) | 3 Months Ended | ||||||||||||||||
Nov. 22, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are as follows: | ||||||||||||||||
(in thousands) | Auto Parts | Other | Total | ||||||||||||||
Stores | |||||||||||||||||
Net balance as of August 30, 2014 | $ | 302,645 | $ | 65,184 | $ | 367,829 | |||||||||||
Goodwill added through acquisition (1) | 16,088 | — | 16,088 | ||||||||||||||
Goodwill adjustments | — | — | — | ||||||||||||||
Net balance as of November 22, 2014 | $ | 318,733 | $ | 65,184 | $ | 383,917 | |||||||||||
-1 | See Note K for discussion of the acquisition completed during the twelve weeks ended November 22, 2014 | ||||||||||||||||
Schedule of Carrying Amounts of Intangible Assets | The carrying amounts of intangible assets are included in Other long-term assets as follows: | ||||||||||||||||
(in thousands) | Estimated | Gross | Accumulated | Net | |||||||||||||
Useful Life | Carrying | Amortization | Carrying | ||||||||||||||
Amount | Amount | ||||||||||||||||
Amortizing intangible assets: | |||||||||||||||||
Technology | 3-5 years | $ | 10,570 | $ | (4,042 | ) | $ | 6,528 | |||||||||
Noncompete agreements | 5 years | 1,300 | (503 | ) | 797 | ||||||||||||
Customer relationships | 3-15 years | 54,676 | (7,486 | ) | 47,190 | ||||||||||||
$ | 66,546 | $ | (12,031 | ) | 54,515 | ||||||||||||
Non-amortizing intangible asset: | |||||||||||||||||
Trade name | 26,600 | ||||||||||||||||
Total intangible assets other than goodwill | $ | 81,115 | |||||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||
Nov. 22, 2014 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Results | 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 | |||||||||
(in thousands) | November 22, | November 23, | |||||||
2014 | 2013 | ||||||||
Net Sales | |||||||||
Auto Parts Stores | $ | 2,181,532 | $ | 2,019,570 | |||||
Other | 78,732 | 74,008 | |||||||
Total | $ | 2,260,264 | $ | 2,093,578 | |||||
Segment Profit | |||||||||
Auto Parts Stores | $ | 1,132,335 | $ | 1,044,016 | |||||
Other | 44,326 | 41,681 | |||||||
Gross profit | 1,176,661 | 1,085,697 | |||||||
Operating, selling, general and administrative expenses | (768,099 | ) | (701,971 | ) | |||||
Interest expense, net | (37,060 | ) | (42,431 | ) | |||||
Income before income taxes | $ | 371,502 | $ | 341,295 | |||||
General_Additional_Information
General - Additional Information (Detail) | 3 Months Ended |
Nov. 22, 2014 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Period of first quarter of fiscal year | 84 days |
Period of second quarter of fiscal year | 84 days |
Period of third quarter of fiscal year | 84 days |
Description of reporting periods | Operating results for the twelve weeks ended NovemberB 22, 2014, are not necessarily indicative of the results that may be expected for the fiscal year ending AugustB 29, 2015. Each of the first three quarters of AutoZonebs fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarters for fiscal 2015 and 2014 each have 16 weeks. Additionally, the Companybs business is somewhat seasonal in nature, with the highest sales generally occurring during the months of February through September and the lowest sales generally occurring in the months of December and January. |
Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Period of fourth quarter of fiscal year | 112 days |
Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Period of fourth quarter of fiscal year | 119 days |
ShareBased_Payments_Additional
Share-Based Payments - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Nov. 22, 2014 | Nov. 23, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense related to stock options and share purchase plans | $8.80 | $9.30 |
Stock options exercised - Shares | 92,449 | 87,378 |
Stock options exercised - Weighted average exercise price | $215.51 | $193.24 |
Stock options granted | 325,500 | 341,785 |
Weighted average grant date fair value of options granted | $104.66 | $96.39 |
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 | 0 | 0 |
ShareBased_Payments_Weighted_A
Share-Based Payments - Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense (Detail) | 3 Months Ended | |
Nov. 22, 2014 | Nov. 23, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected price volatility | 20.00% | 23.00% |
Risk-free interest rate | 1.40% | 1.00% |
Weighted average expected lives (in years) | 5 years | 5 years 1 month 6 days |
Forfeiture rate | 9.00% | 9.00% |
Dividend yield | 0.00% | 0.00% |
Fair_Value_Measurements_Compan
Fair Value Measurements - Company's Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Nov. 22, 2014 | Aug. 30, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | $12,240 | $10,400 |
Other long-term assets | 75,570 | 74,855 |
Total | 87,810 | 85,255 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 11,745 | 9,801 |
Other long-term assets | 53,071 | 53,133 |
Total | 64,816 | 62,934 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 495 | 599 |
Other long-term assets | 22,499 | 21,722 |
Total | $22,994 | $22,321 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Nov. 22, 2014 | Aug. 30, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | $12,240 | $10,400 |
Long-term marketable securities | $75,570 | $74,855 |
Marketable_Securities_Availabl
Marketable Securities - Available-for-Sale Marketable Securities (Detail) (USD $) | Nov. 22, 2014 | Aug. 30, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | $87,751 | $85,138 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 185 | 210 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | -126 | -93 |
Available-For-Sale Marketable Securities, Fair Value | 87,810 | 85,255 |
Corporate Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 39,665 | 37,265 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 99 | 137 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | -46 | -15 |
Available-For-Sale Marketable Securities, Fair Value | 39,718 | 37,387 |
Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 16,816 | 16,822 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 36 | 16 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | -1 | |
Available-For-Sale Marketable Securities, Fair Value | 16,852 | 16,837 |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 10,292 | 8,791 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 27 | 22 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | -80 | -77 |
Available-For-Sale Marketable Securities, Fair Value | 10,239 | 8,736 |
Asset-Backed Securities and Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 20,978 | 22,260 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 23 | 35 |
Available-For-Sale Marketable Securities, Fair Value | $21,001 | $22,295 |
Marketable_Securities_Addition
Marketable Securities - Additional Information (Detail) (USD $) | 3 Months Ended | |
Nov. 22, 2014 | Aug. 30, 2014 | |
Securities | ||
Investments, Debt and Equity 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 | 44 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | $126,000 | $93,000 |
Marketable securities transferred | $45,300,000 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | |
Nov. 22, 2014 | Nov. 23, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative losses recorded in Accumulated other comprehensive loss | ($11,600,000) | |
Net derivative income (losses) amortized into Interest Income (expense) | -42,000 | -42,000 |
Net derivative loss expected to be reclassified over next 12 months | ($390,000) |
Merchandise_Inventories_Additi
Merchandise Inventories - Additional Information (Detail) (USD $) | Nov. 22, 2014 | Aug. 30, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Unrecorded adjustment for LIFO value in excess of replacement value | $312.90 | $307.20 |
Pension_and_Savings_Plans_Net_
Pension and Savings Plans - Net Periodic Benefit Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 22, 2014 | Nov. 23, 2013 |
Compensation and Retirement Disclosure [Abstract] | ||
Interest cost | $2,847 | $3,016 |
Expected return on plan assets | -3,757 | -3,551 |
Amortization of net loss | 2,063 | 1,588 |
Net periodic pension expense | $1,153 | $1,053 |
Pension_and_Savings_Plans_Addi
Pension and Savings Plans - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Nov. 22, 2014 |
Compensation and Retirement Disclosure [Abstract] | |
Annual contributions by the Company to pension plans | $1.20 |
Expected contributions to the plans by the Company in fiscal 2015 | $1.40 |
Financing_Schedule_of_Debt_Det
Financing - Schedule of Debt (Detail) (USD $) | Nov. 22, 2014 | Aug. 30, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total debt | $4,422,100 | $4,343,800 |
Less: Short-term borrowings | 559,235 | 180,910 |
Long-term debt | 3,862,865 | 4,162,890 |
5.750% Senior Notes due January 2015, effective interest rate of 5.89% [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 500,000 | 500,000 |
Long-term debt | 240,800 | |
5.500% Senior Notes due November 2015, effective interest rate of 4.86% [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 300,000 | 300,000 |
6.950% Senior Notes due June 2016, effective interest rate of 7.09% [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 200,000 | 200,000 |
1.300% Senior Notes due January 2017, effective interest rate 1.43% [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 400,000 | 400,000 |
7.125% Senior Notes due August 2018, effective interest rate of 7.28% [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 250,000 | 250,000 |
4.000% Senior Notes due November 2020, effective interest rate of 4.43% [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 500,000 | 500,000 |
3.700% Senior Notes due April 2022, effective interest rate of 3.85% [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 500,000 | 500,000 |
2.875% Senior Notes due January 2023, effective interest rate of 3.21% [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 300,000 | 300,000 |
3.125% Senior Notes due July 2023, effective interest rate of 3.26% [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 500,000 | 500,000 |
Commercial paper, weighted average interest rate of 0.35% and 0.27% at November 22, 2014 and August 30, 2014, respectively [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 972,100 | 893,800 |
Total debt | $972,100 |
Financing_Schedule_of_Debt_Par
Financing - Schedule of Debt (Parenthetical) (Detail) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 14, 2014 | Nov. 22, 2014 | Aug. 30, 2014 | Jan. 14, 2014 | |
5.750% Senior Notes due January 2015, effective interest rate of 5.89% [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate percentage | 5.75% | 5.75% | ||
Effective interest rate | 5.89% | 5.89% | ||
Debt instrument maturity, month and year | 2015-01 | 2015-01 | ||
5.500% Senior Notes due November 2015, effective interest rate of 4.86% [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate percentage | 5.50% | 5.50% | ||
Effective interest rate | 4.86% | 4.86% | ||
Debt instrument maturity, month and year | 2015-11 | 2015-11 | ||
6.950% Senior Notes due June 2016, effective interest rate of 7.09% [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate percentage | 6.95% | 6.95% | ||
Effective interest rate | 7.09% | 7.09% | ||
Debt instrument maturity, month and year | 2016-06 | 2016-06 | ||
1.300% Senior Notes due January 2017, effective interest rate 1.43% [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate percentage | 1.30% | 1.30% | 1.30% | 1.30% |
Effective interest rate | 1.43% | 1.43% | ||
Debt instrument maturity, month and year | 2017-01 | 2017-01 | 2017-01 | |
7.125% Senior Notes due August 2018, effective interest rate of 7.28% [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate percentage | 7.13% | 7.13% | ||
Effective interest rate | 7.28% | 7.28% | ||
Debt instrument maturity, month and year | 2018-08 | 2018-08 | ||
4.000% Senior Notes due November 2020, effective interest rate of 4.43% [Member] | ||||
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 | ||
3.700% Senior Notes due April 2022, effective interest rate of 3.85% [Member] | ||||
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% [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate percentage | 2.88% | 2.88% | ||
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% [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate percentage | 3.13% | 3.13% | ||
Effective interest rate | 3.26% | 3.26% | ||
Debt instrument maturity, month and year | 2023-07 | 2023-07 | ||
Commercial paper, weighted average interest rate of 0.35% and 0.27% at November 22, 2014 and August 30, 2014, respectively [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate of commercial paper | 0.35% | 0.27% |
Financing_Additional_Informati
Financing - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 12 Months Ended | |
Nov. 22, 2014 | Jan. 14, 2014 | Aug. 30, 2014 | Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | ||||
Total debt | $4,422,100,000 | 4,343,800,000 | ||
Long-term debt | 3,862,865,000 | 4,162,890,000 | ||
Remaining borrowing capacity under revolving credit facility | 1,213,000,000 | |||
Amount available under credit facility | 1,250,000,000 | 1,250,000,000 | ||
Expiration of credit facility | Sep-17 | |||
Letter of credit facility, maximum borrowing capacity | 1,500,000,000 | |||
Fair value of the Company's debt | 4,523,000,000 | 4,480,000,000 | ||
Excess (shortfall) of fair value of debt over (from) carrying value | 100,800,000 | 136,600,000 | ||
Capital Leases [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letter of credit facility, maximum borrowing capacity | 175,000,000 | |||
Interest accrual on foreign currency loans the basis points | Interest accrues on Eurodollar loans at a defined Eurodollar rate, defined as LIBOR plus the applicable percentage, as defined in the revolving credit facility, depending upon the Company's senior, unsecured, (non-credit enhanced) long-term debt rating. | |||
Commercial paper, weighted average interest rate of 0.35% and 0.27% at November 22, 2014 and August 30, 2014, respectively [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Total debt | 972,100,000 | |||
Letters of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letter of credit facility, maximum borrowing capacity | 200,000,000 | |||
1.300% Senior Notes due January 2017, effective interest rate 1.43% [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate percentage | 1.30% | 1.30% | 1.30% | |
Debt instrument maturity, month and year | 2017-01 | 2017-01 | 2017-01 | |
Proceeds from issuance of debt | 400,000,000 | |||
6.500% Senior Notes due January 2014 [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate percentage | 6.50% | |||
Debt instrument maturity, month and year | 2014-01 | |||
Debt repayment using commercial papers | 500,000,000 | |||
5.750% Senior Notes due January 2015, effective interest rate of 5.89% [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt | $240,800,000 | |||
Stated interest rate percentage | 5.75% | 5.75% | ||
Debt instrument maturity, month and year | 2015-01 | 2015-01 |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 203 Months Ended |
Jun. 17, 2014 | Nov. 22, 2014 | Nov. 22, 2014 | |
Stock Repurchase Program [Line Items] | |||
Stock repurchased cumulative, shares | 571,106 | ||
Purchase of treasury stock | $299,600,000 | ||
Increase in authorization of stock repurchase, value | 750,000,000 | ||
Remaining value authorized for share repurchases | 569,600,000 | 569,600,000 | |
Treasury stock acquired repurchase authorization | From January 1, 1998 to November 22, 2014, the Company has repurchased a total of 137.5 million shares at an aggregate cost of $14.330 billion, including 571,106 shares of its common stock at an aggregate cost of $299.6 million during the twelve week period ended November 22, 2014. On June 17, 2014, the Board voted to increase the authorization by $750 million to raise the cumulative share repurchase authorization from $14.15 billion to $14.9 billion. Considering the cumulative repurchases as of November 22, 2014, the Company had $569.6 million remaining under the Board's authorization to repurchase its common stock. | ||
Minimum [Member] | |||
Stock Repurchase Program [Line Items] | |||
Stock repurchase authorized amended value | 14,150,000,000 | ||
Maximum [Member] | |||
Stock Repurchase Program [Line Items] | |||
Stock repurchase authorized amended value | 14,900,000,000 | ||
January 1,1998 to November 22,2014 [Member] | |||
Stock Repurchase Program [Line Items] | |||
Stock repurchased cumulative, shares | 137,500,000 | ||
Purchase of treasury stock | $14,330,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 22, 2014 | Nov. 23, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | ($128,903) | ($120,788) |
Other comprehensive (loss) income before reclassifications | -18,485 | 7,733 |
Amounts reclassified from Accumulated other comprehensive loss | 1,237 | 968 |
Ending Balance | -146,151 | -112,087 |
Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | -63,820 | -50,861 |
Amounts reclassified from Accumulated other comprehensive loss | 1,217 | 952 |
Ending Balance | -62,603 | -49,909 |
Foreign Currency [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | -57,836 | -62,483 |
Other comprehensive (loss) income before reclassifications | -18,361 | 7,507 |
Ending Balance | -76,197 | -54,976 |
Net Unrealized Gain on Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 76 | -25 |
Other comprehensive (loss) income before reclassifications | -33 | 226 |
Amounts reclassified from Accumulated other comprehensive loss | -5 | -10 |
Ending Balance | 38 | 191 |
Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | -7,323 | -7,419 |
Other comprehensive (loss) income before reclassifications | -91 | |
Amounts reclassified from Accumulated other comprehensive loss | 25 | 26 |
Ending Balance | ($7,389) | ($7,393) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 22, 2014 | Nov. 23, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from accumulated other comprehensive income, pension, taxes | $846 | $636 |
Reclassification from accumulated other comprehensive income, securities, taxes | 21 | 116 |
Reclassification from accumulated other comprehensive income, derivatives, taxes | 36 | 16 |
Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from accumulated other comprehensive income, pension, taxes | 846 | 636 |
Net Unrealized Gain on Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from accumulated other comprehensive income, securities, taxes | 3 | 5 |
Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from accumulated other comprehensive income, derivatives, taxes | $17 | $16 |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) (USD $) | 0 Months Ended | ||
Sep. 27, 2014 | Nov. 22, 2014 | Aug. 30, 2014 | |
Branch | |||
Business Acquisition [Line Items] | |||
Goodwill | $383,917,000 | $367,829,000 | |
Interamerican Motor Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition of outstanding stock | 75,700,000 | ||
Number of operating branches | 17 | ||
Goodwill | 16,088,000 | ||
Purchase price allocation, intangible assets | $8,300,000 |
Goodwill_and_Intangibles_Sched
Goodwill and Intangibles - Schedule of Changes in Carrying Amount of Goodwill (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Nov. 22, 2014 |
Goodwill [Line Items] | |
Goodwill, Beginning balance | $367,829 |
Goodwill added through acquisition | 16,088 |
Goodwill adjustments | 0 |
Goodwill, Ending balance | 383,917 |
Auto Parts Stores [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning balance | 302,645 |
Goodwill added through acquisition | 16,088 |
Goodwill adjustments | 0 |
Goodwill, Ending balance | 318,733 |
Other [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning balance | 65,184 |
Goodwill added through acquisition | 0 |
Goodwill adjustments | 0 |
Goodwill, Ending balance | $65,184 |
Goodwill_and_Intangibles_Addit
Goodwill and Intangibles - Additional Information (Detail) (USD $) | 3 Months Ended | |
Nov. 22, 2014 | Nov. 23, 2013 | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Amortization expense of intangible assets | $2,100,000 | $946,000 |
Purchase of intangibles | 10,000,000 | |
Interamerican Motor Corporation [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Increased intangible assets related to acquisition | 8,300,000 | |
Customer Relationships [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Purchase of intangibles | $10,000,000 |
Goodwill_and_Intangibles_Sched1
Goodwill and Intangibles - Schedule of Carrying Amounts of Intangible Assets (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Nov. 22, 2014 |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | $66,546 |
Finite Lived, Accumulated Amortization | -12,031 |
Finite Lived, Net Carrying Amount | 54,515 |
Total intangible assets other than goodwill, Net Carrying Amount | 81,115 |
Technology [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | 10,570 |
Finite Lived, Accumulated Amortization | -4,042 |
Finite Lived, Net Carrying Amount | 6,528 |
Noncompete Agreements [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
Finite Lived, Gross Carrying Amount | 1,300 |
Finite Lived, Accumulated Amortization | -503 |
Finite Lived, Net Carrying Amount | 797 |
Customer Relationships [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | 54,676 |
Finite Lived, Accumulated Amortization | -7,486 |
Finite Lived, Net Carrying Amount | 47,190 |
Minimum [Member] | Technology [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Minimum [Member] | Customer Relationships [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Maximum [Member] | Technology [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
Maximum [Member] | Customer Relationships [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 15 years |
Trade Name [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Non-amortizing intangible asset - Trade name, Net Carrying Amount | $26,600 |
Litigation_Additional_Informat
Litigation - Additional Information (Detail) | 3 Months Ended |
Nov. 22, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Site contingency, recovery from third party of environmental remediation cost | In 2004, the Company acquired a store site in Mount Ephraim, New Jersey that had previously been the site of a gasoline service station and contained evidence of groundwater contamination. Upon acquisition, the Company voluntarily reported the groundwater contamination issue to the New Jersey Department of Environmental Protection and entered into a Voluntary Remediation Agreement providing for the remediation of the contamination associated with the property. The Company has conducted and paid for (at an immaterial cost to the Company) remediation of contamination on the property. The Company is also investigating, and will be addressing, potential vapor intrusion impacts in downgradient residences and businesses. The New Jersey Department of Environmental Protection has asserted, in a Directive and Notice to Insurers dated February 19, 2013 and again in an Amended Directive and Notice to Insurers dated January 13, 2014 (collectively the "Directives"), that the Company is liable for the downgradient impacts under a joint and severable liability theory. The Company has contested any such assertions due to the existence of other entities/sources of contamination, some of which are named in the Directives, in the area of the property. Pursuant to the Voluntary Remediation Agreement, upon completion of all remediation required by the agreement, the Company believes it should be eligible to be reimbursed up to 75 percent of qualified remediation costs by the State of New Jersey. The Company has asked the state for clarification that the agreement applies to off-site work, and the state is considering the request. Although the aggregate amount of additional costs that the Company may incur pursuant to the remediation cannot currently be ascertained, the Company does not currently believe that fulfillment of its obligations under the agreement or otherwise will result in costs that are material to its financial condition, results of operations or cash flow. |
Received a subpoena from the District Attorney of the County of Alameda | In July 2014, the Company received a subpoena from the District Attorney of the County of Alameda, along with other environmental prosecutorial offices in the state of California, seeking documents and information related to the handling, storage and disposal of hazardous waste. The Company is cooperating fully with the request and cannot predict the ultimate outcome of these efforts. |
Reimbursable remediation costs | 75.00% |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Nov. 22, 2014 | |
Location | |
Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Number of reportable segments | 1 |
Number of automotive parts and accessories locations in the United States, Puerto Rico, Mexico, and Brazil | 5,434 |
Segment_Reporting_Segment_Resu
Segment Reporting - Segment Results (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 22, 2014 | Nov. 23, 2013 |
Segment Reporting Information [Line Items] | ||
Net sales | $2,260,264 | $2,093,578 |
Gross profit | 1,176,661 | 1,085,697 |
Operating, selling, general and administrative expenses | -768,099 | -701,971 |
Interest expense, net | -37,060 | -42,431 |
Income before income taxes | 371,502 | 341,295 |
Auto Parts Stores [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,181,532 | 2,019,570 |
Gross profit | 1,132,335 | 1,044,016 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 78,732 | 74,008 |
Gross profit | $44,326 | $41,681 |