Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 21, 2015 | Dec. 11, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 21, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | AZO | |
Entity Registrant Name | AUTOZONE INC | |
Entity Central Index Key | 866,787 | |
Current Fiscal Year End Date | --08-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,208,306 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Nov. 21, 2015 | Aug. 29, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 165,486 | $ 175,309 |
Accounts receivable | 248,120 | 247,872 |
Merchandise inventories | 3,515,703 | 3,421,635 |
Other current assets | 120,763 | 121,847 |
Deferred income taxes | 3,799 | 3,631 |
Total current assets | 4,053,871 | 3,970,294 |
Property and equipment: | ||
Property and equipment | 5,979,444 | 5,891,707 |
Less: Accumulated depreciation and amortization | (2,442,389) | (2,386,075) |
Property and equipment, net | 3,537,055 | 3,505,632 |
Goodwill | 391,887 | 391,887 |
Deferred income taxes | 41,475 | 42,615 |
Other long-term assets | 193,240 | 191,921 |
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | 626,602 | 626,423 |
Assets | 8,217,528 | 8,102,349 |
Current liabilities: | ||
Accounts payable | 3,889,849 | 3,864,168 |
Accrued expenses and other | 516,749 | 531,561 |
Income taxes payable | 107,818 | 58,082 |
Deferred income taxes | 260,825 | 259,062 |
Total current liabilities | 4,775,241 | 4,712,873 |
Long-term debt | 4,754,101 | 4,624,876 |
Other long-term liabilities | $ 466,307 | $ 465,990 |
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; 32,247 shares issued and 30,271 shares outstanding as of November 21, 2015; 32,098 shares issued and 30,659 shares outstanding as of August 29, 2015 | $ 322 | $ 321 |
Additional paid-in capital | 994,488 | 938,355 |
Retained deficit | (1,160,626) | (1,418,738) |
Accumulated other comprehensive loss | (240,395) | (249,518) |
Treasury stock, at cost | (1,371,910) | (971,810) |
Total stockholders' deficit | (1,778,121) | (1,701,390) |
Liabilities and Stockholders' Deficit | $ 8,217,528 | $ 8,102,349 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Nov. 21, 2015 | Aug. 29, 2015 |
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 | 32,247,000 | 32,098,000 |
Common stock, shares outstanding | 30,271,000 | 30,659,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 21, 2015 | Nov. 22, 2014 | |
Income Statement [Abstract] | ||
Net sales | $ 2,386,043 | $ 2,260,264 |
Cost of sales, including warehouse and delivery expenses | 1,133,109 | 1,083,603 |
Gross profit | 1,252,934 | 1,176,661 |
Operating, selling, general and administrative expenses | 814,939 | 768,099 |
Operating profit | 437,995 | 408,562 |
Interest expense, net | 35,010 | 37,060 |
Income before income taxes | 402,985 | 371,502 |
Income taxes | 144,873 | 133,192 |
Net income | $ 258,112 | $ 238,310 |
Weighted average shares for basic earnings per share | 30,498 | 32,132 |
Effect of dilutive stock equivalents | 640 | 629 |
Weighted average shares for diluted earnings per share | 31,138 | 32,761 |
Basic earnings per share | $ 8.46 | $ 7.42 |
Diluted earnings per share | $ 8.29 | $ 7.27 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 21, 2015 | Nov. 22, 2014 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 258,112 | $ 238,310 | |
Other comprehensive income (loss): | |||
Pension liability adjustments, net of taxes | [1] | 1,234 | 1,217 |
Foreign currency translation adjustments | 7,787 | (18,361) | |
Unrealized losses on marketable securities, net of taxes | [2] | (62) | (38) |
Net derivative activities, net of taxes | [3] | 164 | (66) |
Total other comprehensive income (loss) | 9,123 | (17,248) | |
Comprehensive income | $ 267,235 | $ 221,062 | |
[1] | Pension liability adjustments are presented net of taxes of $1,190 in fiscal 2016 and $846 in fiscal 2015 | ||
[2] | Unrealized losses on marketable securities are presented net of taxes of $33 in fiscal 2016 and $21 in fiscal 2015 | ||
[3] | Net derivative activities are presented net of taxes of $85 in fiscal 2016 and $36 in fiscal 2015 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 21, 2015 | Nov. 22, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Pension liability adjustments, taxes | $ 1,190 | $ 846 |
Unrealized losses on marketable securities, taxes | 33 | 21 |
Net derivative activities, taxes | $ 85 | $ 36 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 21, 2015 | Nov. 22, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 258,112 | $ 238,310 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment and intangibles | 66,283 | 61,045 |
Amortization of debt origination fees | 1,726 | 1,521 |
Income tax benefit from exercise of stock options | (23,501) | (9,731) |
Deferred income taxes | 1,464 | (954) |
Share-based compensation expense | 8,656 | 8,804 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 88 | 23,508 |
Merchandise inventories | (90,420) | (84,498) |
Accounts payable and accrued expenses | 20,339 | 68,687 |
Income taxes payable | 73,957 | 83,180 |
Other, net | 6,798 | (14,644) |
Net cash provided by operating activities | 323,502 | 375,228 |
Cash flows from investing activities: | ||
Capital expenditures | (86,658) | (92,415) |
Acquisition of business, net of cash | (75,744) | |
Purchase of intangibles | (10,000) | (10,000) |
Purchase of marketable securities | (29,303) | (6,474) |
Proceeds from sale of marketable securities | 24,640 | 3,860 |
Disposal of capital assets and other, net | 228 | (34) |
Net cash used in investing activities | (101,093) | (180,807) |
Cash flows from financing activities: | ||
Net proceeds from commercial paper | 428,300 | 78,300 |
Repayment of debt | (300,000) | |
Net proceeds from sale of common stock | 25,040 | 19,603 |
Purchase of treasury stock | (400,100) | (299,606) |
Income tax benefit from exercise of stock options | 23,501 | 9,731 |
Payments of capital lease obligations | (10,096) | (9,192) |
Net cash used in financing activities | (233,355) | (201,164) |
Effect of exchange rate changes on cash | 1,123 | (550) |
Net decrease in cash and cash equivalents | (9,823) | (7,293) |
Cash and cash equivalents at beginning of period | 175,309 | 124,485 |
Cash and cash equivalents at end of period | $ 165,486 | $ 117,192 |
General
General | 3 Months Ended |
Nov. 21, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 29, 2015. Operating results for the twelve weeks ended November 21, 2015, are not necessarily indicative of the results that may be expected for the fiscal year ending August 27, 2016. 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 2016 and 2015 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: Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments In November 2015, the FASB issued ASU 2015-07, Income Taxes – Balance Sheet Classification of Deferred Taxes (Topic 740). ASU 2015-07 |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Nov. 21, 2015 | |
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 $8.7 million for the twelve week period ended November 21, 2015, and was $8.8 million for the comparable prior year period. During the twelve week period ended November 21, 2015, 124,199 shares of stock options were exercised at a weighted average exercise price of $209.78. In the comparable prior year period, 92,449 shares of stock options were exercised at a weighted average exercise price of $215.51. The Company made stock option grants of 367,445 shares during the twelve week period ended November 21, 2015, and granted options to purchase 325,500 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 21, 2015, and November 22, 2014, using the Black-Scholes-Merton multiple-option pricing valuation model, was $155.88 and $104.66 per share, respectively, using the following weighted average key assumptions: Twelve Weeks Ended November 21, 2015 November 22, 2014 Expected price volatility 18 % 20 % Risk-free interest rate 1.5 % 1.4 % Weighted average expected lives (in years) 5.7 5.0 Forfeiture rate 10 % 9 % Dividend yield 0 % 0 % See AutoZone’s Annual Report on Form 10-K for the year ended August 29, 2015, 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 Program. For the twelve week period ended November 21, 2015, 17,280 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 stock options were excluded from the dilutive earnings per share computation. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Nov. 21, 2015 | |
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 Level 2 inputs Level 3 inputs Financial Assets & Liabilities Measured at Fair Value on a Recurring Basis The Company’s assets and liabilities measured at fair value on a recurring basis were as follows: November 21, 2015 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 9,942 $ 498 $ — $ 10,440 Other long-term assets 62,650 19,905 — 82,555 $ 72,592 $ 20,403 $ — $ 92,995 August 29, 2015 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 8,790 $ — $ — $ 8,790 Other long-term assets 63,342 16,295 — 79,637 $ 72,132 $ 16,295 $ — $ 88,427 At November 21, 2015, the fair value measurement amounts for assets and liabilities recorded in the accompanying Condensed Consolidated Balance Sheet consisted of short-term marketable securities of $10.4 million, which are included within Other current assets and long-term marketable securities of $82.6 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 21, 2015 and November 22, 2014, 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. 21, 2015 | |
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 21, 2015 (in thousands) Amortized Basis Gross Gross Fair Value Corporate securities $ 35,055 $ 53 $ (43 ) $ 35,065 Government bonds 31,193 3 (46 ) 31,150 Mortgage-backed securities 8,649 10 (106 ) 8,553 Asset-backed securities and other 18,233 5 (11 ) 18,227 $ 93,130 $ 71 $ (206 ) $ 92,995 August 29, 2015 (in thousands) Amortized Basis Gross Gross Fair Value Corporate securities $ 34,859 $ 51 $ (40 ) $ 34,870 Government bonds 33,098 31 (7 ) 33,122 Mortgage-backed securities 9,287 17 (99 ) 9,205 Asset-backed securities and other 11,223 9 (2 ) 11,230 $ 88,467 $ 108 $ (148 ) $ 88,427 The debt securities held at November 21, 2015, 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 21, 2015. The Company holds 77 securities that are in an unrealized loss position of approximately $206 thousand at November 21, 2015. 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 $61.0 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 Instrument
Derivative Financial Instruments | 3 Months Ended |
Nov. 21, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note E – Derivative Financial Instruments At November 21, 2015, the Company had $11.2 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 21, 2015, the Company reclassified $249 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 $1.9 million of net losses from Accumulated other comprehensive loss to Interest expense over the next 12 months. |
Merchandise Inventories
Merchandise Inventories | 3 Months Ended |
Nov. 21, 2015 | |
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, |
Pension and Savings Plans
Pension and Savings Plans | 3 Months Ended |
Nov. 21, 2015 | |
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 21, November 22, Interest cost $ 2,601 $ 2,847 Expected return on plan assets (3,810 ) (3,757 ) Amortization of net loss 2,424 2,063 Net periodic pension expense $ 1,215 $ 1,153 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 21, 2015, the Company made contributions to its funded plan in the amount of $1.5 million. The Company expects to contribute approximately $4.8 million to the plan during the remainder of fiscal 2016; 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. During the twelve week period ended November 21, 2015, the Company changed the method used to estimate the interest cost component of Net periodic pension expense. Previously, the Company estimated interest cost using a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation. The Company has elected to utilize a spot rate approach by applying specific spot rates along the yield curve to calculate interest costs instead of a single weighted-average discount rate. This calculation is believed to be more refined under the applicable accounting standard. The impact of this change to Net periodic pension expense is a reduction of $411 thousand in the twelve week period ended November 21, 2015. Based on current economic conditions, the interest cost for pension plans will be reduced by approximately $1.8 million in fiscal 2016 as a result of the change. The Company has accounted for this change as a change in accounting estimate and therefore has accounted for it prospectively. |
Financing
Financing | 3 Months Ended |
Nov. 21, 2015 | |
Debt Disclosure [Abstract] | |
Financing | Note H – Financing The Company’s long-term debt consisted of the following: (in thousands) November 21, 2015 August 29, 5.500% Senior Notes due November 2015, effective interest rate of 4.86% $ — $ 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 2.500% Senior Notes due April 2021, effective interest rate of 3.85% 250,000 250,000 3.700% Senior Notes due April 2022, effective interest rate of 3.85% 500,000 500,000 2.875% Senior Notes due January 2023, effective interest rate of 3.21% 300,000 300,000 3.125% Senior Notes due July 2023, effective interest rate of 3.26% 500,000 500,000 3.250% Senior Notes due April 2025, effective interest rate 3.36% 400,000 400,000 Commercial paper, weighted average interest rate of 0.46% and 0.45% at November 21, 2015 and August 29, 2015, respectively 1,475,900 1,047,600 Total debt 4,775,900 4,647,600 Less: Short-term borrowings — — Long-term debt before discounts and debt issuance costs 4,775,900 4,647,600 Less: Discounts and debt issuance costs 21,799 22,724 Long-term debt $ 4,754,101 $ 4,624,876 As of November 21, 2015, $1.476 billion of commercial paper borrowings and the $200 million 6.950% Senior Notes due June 2016 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 facilities. As of November 21, 2015, the Company had $1.708 billion of availability under its $1.750 billion revolving credit facilities, which would allow it to replace these short-term obligations with long-term financing facilities. On April 29, 2015, the Company issued $400 million in 3.250% Notes due April 2025 and $250 million in 2.500% Notes due April 2021 under its shelf registration statement filed with the SEC on April 15, 2015 (the “New Shelf Registration”). The New 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 location openings, stock repurchases and acquisitions. Proceeds from the debt issuances were used to repay a portion of the outstanding commercial paper borrowings, which were used to repay the $500 million in 5.750% Senior Notes due in January 2015, and for general corporate purposes. On December 19, 2014, the Company amended and restated its existing revolving credit facility (the “Multi-Year Credit Agreement”) by increasing the amount of capital leases allowable to $225 million, extending the expiration date by two years, and renegotiations of other terms and conditions. This credit facility is available to primarily support commercial paper borrowings, letters of credit and other short-term unsecured bank loans. The capacity of the credit facility is $1.25 billion and 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 $225 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 December 2019. On December 19, 2014, the Company entered into a new revolving credit facility (the “364-Day Credit Agreement”). The credit facility is available to primarily support commercial paper borrowings and other short-term unsecured bank loans. The 364-Day Credit Agreement provides for loans in the principal amount of up to $500 million. Under the credit facility, 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 margin, 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 original expiration date of the credit facility was December 19, 2015, but in accordance with the credit agreement, in November 2015, the Company requested, and the bank approved, the extension of the termination date to December 16, 2016. In addition, the Company has the right to convert to a term-loan, at least 15 days prior to December 16, 2016, up to one year from the termination date, subject to a 1% penalty. As of November 21, 2015 the Company had no outstanding borrowings under each of the revolving credit facilities and $3.5 million of outstanding letters of credit under the Multi-Year Credit Agreement. The fair value of the Company’s debt was estimated at $4.835 billion as of November 21, 2015, and $4.696 billion as of August 29, 2015, 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 $80.9 million at November 21, 2015, and $70.7 million at August 29, 2015, which reflect their face amount, adjusted for any unamortized debt issuance costs and discounts. |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Nov. 21, 2015 | |
Equity [Abstract] | |
Stock Repurchase Program | Note I – Stock Repurchase Program From January 1, 1998 to November 21, 2015, the Company has repurchased a total of 139.4 million shares at an aggregate cost of $15.702 billion, including 536,654 shares of its common stock at an aggregate cost of $400.1 million during the twelve week period ended November 21, 2015. On October 7, 2015, the Board voted to increase the authorization by $750 million to raise the cumulative share repurchase authorization from $15.65 billion to $16.4 billion. Considering the cumulative repurchases as of November 21, 2015, the Company had $697.7 million remaining under the Board’s authorization to repurchase its common stock. Subsequent to November 21, 2015, the Company has repurchased 102,658 shares of its common stock at an aggregate cost of $80.0 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Nov. 21, 2015 | |
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 Liability Foreign (3) Net Derivatives Total Balance at August 29, 2015 $ (70,795 ) $ (171,488 ) $ (26 ) $ (7,209 ) $ (249,518 ) Other comprehensive income (loss) before reclassifications — 7,787 (75 ) — 7,712 Amounts reclassified from Accumulated other comprehensive loss ( ) 1,234 (2) — 13 (4) 164 (5) 1,411 Balance at November 21, 2015 $ (69,561 ) $ (163,701 ) $ (88 ) $ (7,045 ) $ (240,395 ) (in thousands) Pension Liability Foreign (3) Net Derivatives Total 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 ( ) 1,217 (2) — (5 ) (4) 25 (5) 1,237 Balance at November 22, 2014 $ (62,603 ) $ (76,197 ) $ 38 $ (7,389 ) $ (146,151 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Represents amortization of pension liability adjustments, net of taxes of $1,190 in fiscal 2016 and $846 in fiscal 2015, 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 (losses) on marketable securities, net of taxes of $7 in fiscal 2016 and $3 in fiscal 2015, 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 $85 in fiscal 2016 and $17 in fiscal 2015, 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
Goodwill and Intangibles | 3 Months Ended |
Nov. 21, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Note K – Goodwill and Intangibles The changes in the carrying amount of goodwill are as follows: (in thousands) Auto Parts Other Total Net balance as of August 29, 2015 $ 326,703 $ 65,184 $ 391,887 Goodwill adjustments — — — Net balance as of November 21, 2015 $ 326,703 $ 65,184 $ 391,887 The carrying amounts of intangible assets are included in Other long-term assets as follows: (in thousands) Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amortizing intangible assets: Technology 3-5 years $ 10,570 $ (6,272 ) $ 4,298 Noncompete agreements 5 years 1,300 (763 ) 537 Customer relationships 3-10 years 49,676 (13,700 ) 35,976 $ 61,546 $ (20,735 ) 40,811 Non-amortizing intangible asset: Trade name 26,900 Total intangible assets other than goodwill $ 67,711 Amortization expense of intangible assets for the twelve week period ended November 21, 2015 was $2.0 million. During the comparable prior year period there was $2.1 million in amortization expense of intangible assets. During the twelve week period ended November 21, 2015 and the comparable prior year period, the Company made an installment payment for $10 million related to certain customer relationships purchased during fiscal 2014 relating to its ALLDATA operations. 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. The purchase price allocation resulted in goodwill of $24.1 million and intangible assets totaling $3.6 million. The results of operations from IMC have been included in the Company’s Auto Parts Locations business activities since the date of acquisition. |
Litigation
Litigation | 3 Months Ended |
Nov. 21, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Note L – Litigation 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. 21, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note M – Segment Reporting The Company’s four operating segments (Domestic Auto Parts, Mexico, Brazil, and IMC) are aggregated as one reportable segment: Auto Parts Locations. 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 29, 2015. The Auto Parts Locations segment is a retailer and distributor of automotive parts and accessories through the Company’s 5,635 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 21, November 22, Net Sales Auto Parts Locations $ 2,304,318 $ 2,181,532 Other 81,725 78,732 Total $ 2,386,043 $ 2,260,264 Segment Profit Auto Parts Locations $ 1,208,390 $ 1,132,335 Other 44,544 44,326 Gross profit 1,252,934 1,176,661 Operating, selling, general and administrative expenses (814,939 ) (768,099 ) Interest expense, net (35,010 ) (37,060 ) Income before income taxes $ 402,985 $ 371,502 |
General (Policies)
General (Policies) | 3 Months Ended |
Nov. 21, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period | Operating results for the twelve weeks ended November 21, 2015, are not necessarily indicative of the results that may be expected for the fiscal year ending August 27, 2016. 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 2016 and 2015 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: Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments In November 2015, the FASB issued ASU 2015-07, Income Taxes – Balance Sheet Classification of Deferred Taxes (Topic 740). ASU 2015-07 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Nov. 21, 2015 | |
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 21, 2015, and November 22, 2014, using the Black-Scholes-Merton multiple-option pricing valuation model, was $155.88 and $104.66 per share, respectively, using the following weighted average key assumptions: Twelve Weeks Ended November 21, 2015 November 22, 2014 Expected price volatility 18 % 20 % Risk-free interest rate 1.5 % 1.4 % Weighted average expected lives (in years) 5.7 5.0 Forfeiture rate 10 % 9 % Dividend yield 0 % 0 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 21, 2015 | |
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 21, 2015 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 9,942 $ 498 $ — $ 10,440 Other long-term assets 62,650 19,905 — 82,555 $ 72,592 $ 20,403 $ — $ 92,995 August 29, 2015 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 8,790 $ — $ — $ 8,790 Other long-term assets 63,342 16,295 — 79,637 $ 72,132 $ 16,295 $ — $ 88,427 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Nov. 21, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Marketable Securities | The Company’s available-for-sale marketable securities consisted of the following: November 21, 2015 (in thousands) Amortized Basis Gross Gross Fair Value Corporate securities $ 35,055 $ 53 $ (43 ) $ 35,065 Government bonds 31,193 3 (46 ) 31,150 Mortgage-backed securities 8,649 10 (106 ) 8,553 Asset-backed securities and other 18,233 5 (11 ) 18,227 $ 93,130 $ 71 $ (206 ) $ 92,995 August 29, 2015 (in thousands) Amortized Basis Gross Gross Fair Value Corporate securities $ 34,859 $ 51 $ (40 ) $ 34,870 Government bonds 33,098 31 (7 ) 33,122 Mortgage-backed securities 9,287 17 (99 ) 9,205 Asset-backed securities and other 11,223 9 (2 ) 11,230 $ 88,467 $ 108 $ (148 ) $ 88,427 |
Pension and Savings Plans (Tabl
Pension and Savings Plans (Tables) | 3 Months Ended |
Nov. 21, 2015 | |
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 21, November 22, Interest cost $ 2,601 $ 2,847 Expected return on plan assets (3,810 ) (3,757 ) Amortization of net loss 2,424 2,063 Net periodic pension expense $ 1,215 $ 1,153 |
Financing (Tables)
Financing (Tables) | 3 Months Ended |
Nov. 21, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s long-term debt consisted of the following: (in thousands) November 21, 2015 August 29, 5.500% Senior Notes due November 2015, effective interest rate of 4.86% $ — $ 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 2.500% Senior Notes due April 2021, effective interest rate of 3.85% 250,000 250,000 3.700% Senior Notes due April 2022, effective interest rate of 3.85% 500,000 500,000 2.875% Senior Notes due January 2023, effective interest rate of 3.21% 300,000 300,000 3.125% Senior Notes due July 2023, effective interest rate of 3.26% 500,000 500,000 3.250% Senior Notes due April 2025, effective interest rate 3.36% 400,000 400,000 Commercial paper, weighted average interest rate of 0.46% and 0.45% at November 21, 2015 and August 29, 2015, respectively 1,475,900 1,047,600 Total debt 4,775,900 4,647,600 Less: Short-term borrowings — — Long-term debt before discounts and debt issuance costs 4,775,900 4,647,600 Less: Discounts and debt issuance costs 21,799 22,724 Long-term debt $ 4,754,101 $ 4,624,876 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Nov. 21, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss consisted of the following: (in thousands) Pension Liability Foreign (3) Net Derivatives Total Balance at August 29, 2015 $ (70,795 ) $ (171,488 ) $ (26 ) $ (7,209 ) $ (249,518 ) Other comprehensive income (loss) before reclassifications — 7,787 (75 ) — 7,712 Amounts reclassified from Accumulated other comprehensive loss ( ) 1,234 (2) — 13 (4) 164 (5) 1,411 Balance at November 21, 2015 $ (69,561 ) $ (163,701 ) $ (88 ) $ (7,045 ) $ (240,395 ) (in thousands) Pension Liability Foreign (3) Net Derivatives Total 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 ( ) 1,217 (2) — (5 ) (4) 25 (5) 1,237 Balance at November 22, 2014 $ (62,603 ) $ (76,197 ) $ 38 $ (7,389 ) $ (146,151 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Represents amortization of pension liability adjustments, net of taxes of $1,190 in fiscal 2016 and $846 in fiscal 2015, 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 (losses) on marketable securities, net of taxes of $7 in fiscal 2016 and $3 in fiscal 2015, 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 $85 in fiscal 2016 and $17 in fiscal 2015, 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. 21, 2015 | |
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 Net balance as of August 29, 2015 $ 326,703 $ 65,184 $ 391,887 Goodwill adjustments — — — Net balance as of November 21, 2015 $ 326,703 $ 65,184 $ 391,887 |
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 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amortizing intangible assets: Technology 3-5 years $ 10,570 $ (6,272 ) $ 4,298 Noncompete agreements 5 years 1,300 (763 ) 537 Customer relationships 3-10 years 49,676 (13,700 ) 35,976 $ 61,546 $ (20,735 ) 40,811 Non-amortizing intangible asset: Trade name 26,900 Total intangible assets other than goodwill $ 67,711 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Nov. 21, 2015 | |
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 21, November 22, Net Sales Auto Parts Locations $ 2,304,318 $ 2,181,532 Other 81,725 78,732 Total $ 2,386,043 $ 2,260,264 Segment Profit Auto Parts Locations $ 1,208,390 $ 1,132,335 Other 44,544 44,326 Gross profit 1,252,934 1,176,661 Operating, selling, general and administrative expenses (814,939 ) (768,099 ) Interest expense, net (35,010 ) (37,060 ) Income before income taxes $ 402,985 $ 371,502 |
General - Additional Informatio
General - Additional Information (Detail) | 3 Months Ended |
Nov. 21, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Description of reporting periods | Operating results for the twelve weeks ended November 21, 2015, are not necessarily indicative of the results that may be expected for the fiscal year ending August 27, 2016. 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 2016 and 2015 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. |
First Quarter [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Quarter period of fiscal year | 84 days |
Second Quarter [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Quarter period of fiscal year | 84 days |
Third Quarter [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Quarter period of fiscal year | 84 days |
Fourth Quarter [Member] | Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Quarter period of fiscal year | 112 days |
Fourth Quarter [Member] | Maximum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Quarter period of fiscal year | 119 days |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Nov. 21, 2015 | Nov. 22, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense related to stock options and share purchase plans | $ 8,656 | $ 8,804 |
Stock options exercised - Shares | 124,199 | 92,449 |
Stock options exercised - Weighted average exercise price | $ 209.78 | $ 215.51 |
Stock options granted | 367,445 | 325,500 |
Weighted average grant date fair value of options granted | $ 155.88 | $ 104.66 |
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 | 17,280 | 0 |
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) | 3 Months Ended | |
Nov. 21, 2015 | Nov. 22, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected price volatility | 18.00% | 20.00% |
Risk-free interest rate | 1.50% | 1.40% |
Weighted average expected lives (in years) | 5 years 8 months 12 days | 5 years |
Forfeiture rate | 10.00% | 9.00% |
Dividend yield | 0.00% | 0.00% |
Fair Value Measurements - Compa
Fair Value Measurements - Company's Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Nov. 21, 2015 | Aug. 29, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | $ 10,440 | $ 8,790 |
Other long-term assets | 82,555 | 79,637 |
Total | 92,995 | 88,427 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 9,942 | 8,790 |
Other long-term assets | 62,650 | 63,342 |
Total | 72,592 | 72,132 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 498 | |
Other long-term assets | 19,905 | 16,295 |
Total | $ 20,403 | $ 16,295 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Nov. 21, 2015 | Aug. 29, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | $ 10,440 | $ 8,790 |
Long-term marketable securities | $ 82,555 | $ 79,637 |
Marketable Securities - Availab
Marketable Securities - Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Nov. 21, 2015 | Aug. 29, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | $ 93,130 | $ 88,467 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 71 | 108 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (206) | (148) |
Available-For-Sale Marketable Securities, Fair Value | 92,995 | 88,427 |
Corporate Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 35,055 | 34,859 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 53 | 51 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (43) | (40) |
Available-For-Sale Marketable Securities, Fair Value | 35,065 | 34,870 |
Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 31,193 | 33,098 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 3 | 31 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (46) | (7) |
Available-For-Sale Marketable Securities, Fair Value | 31,150 | 33,122 |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 8,649 | 9,287 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 10 | 17 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (106) | (99) |
Available-For-Sale Marketable Securities, Fair Value | 8,553 | 9,205 |
Asset-Backed Securities and Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 18,233 | 11,223 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 5 | 9 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (11) | (2) |
Available-For-Sale Marketable Securities, Fair Value | $ 18,227 | $ 11,230 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Nov. 21, 2015USD ($)Securities | Aug. 29, 2015USD ($) | |
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 | Securities | 77 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | $ 206 | $ 148 |
Marketable securities transferred | $ 61,000 |
Derivative Financial Instrume37
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 21, 2015 | Nov. 22, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative losses recorded in Accumulated other comprehensive loss | $ 11,200 | |
Net derivative losses amortized into Interest expense | 249 | $ 42 |
Net derivative loss expected to be reclassified over next 12 months | $ 1,900 |
Merchandise Inventories - Addit
Merchandise Inventories - Additional Information (Detail) - USD ($) $ in Millions | Nov. 21, 2015 | Aug. 29, 2015 |
Inventory Disclosure [Abstract] | ||
Unrecorded adjustment for LIFO value in excess of replacement value | $ 336.7 | $ 332.6 |
Pension and Savings Plans - Net
Pension and Savings Plans - Net Periodic Benefit Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 21, 2015 | Nov. 22, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Interest cost | $ 2,601 | $ 2,847 |
Expected return on plan assets | (3,810) | (3,757) |
Amortization of net loss | 2,424 | 2,063 |
Net periodic pension expense | $ 1,215 | $ 1,153 |
Pension and Savings Plans - Add
Pension and Savings Plans - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Nov. 21, 2015 | Aug. 27, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Annual contributions by the Company to pension plans | $ 1,500 | |
Expected contributions to the plans by the Company in fiscal 2016 | 4,800 | |
Change to net periodic pension expense | $ (411) | |
Scenario Forecast [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Change to net periodic pension expense | $ (1,800) |
Financing - Schedule of Debt (D
Financing - Schedule of Debt (Detail) - USD ($) $ in Thousands | Nov. 21, 2015 | Aug. 29, 2015 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 1,475,900 | $ 1,047,600 |
Total debt | 4,775,900 | 4,647,600 |
Total debt | 4,775,900 | 4,647,600 |
Less: Short-term borrowings | 0 | 0 |
Long-term debt before discounts and debt issuance costs | 4,775,900 | 4,647,600 |
Less: Discounts and debt issuance costs | 21,799 | 22,724 |
Long-term debt | 4,754,101 | 4,624,876 |
5.500% Senior Notes due November 2015, effective interest rate of 4.86% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 300,000 | |
6.950% Senior Notes due June 2016, effective interest rate of 7.09% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 200,000 | 200,000 |
Long-term debt | 200,000 | |
1.300% Senior Notes due January 2017, effective interest rate 1.43% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 400,000 | 400,000 |
7.125% Senior Notes due August 2018, effective interest rate of 7.28% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 250,000 | 250,000 |
4.000% Senior Notes due November 2020, effective interest rate of 4.43% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 500,000 | 500,000 |
2.500% Senior Notes due April 2021, effective interest rate of 3.85% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 250,000 | 250,000 |
3.700% Senior Notes due April 2022, effective interest rate of 3.85% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 500,000 | 500,000 |
2.875% Senior Notes due January 2023, effective interest rate of 3.21% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 300,000 | 300,000 |
3.125% Senior Notes due July 2023, effective interest rate of 3.26% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 500,000 | 500,000 |
3.250% Senior Notes due April 2025, effective interest rate 3.36% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 400,000 | $ 400,000 |
Financing - Schedule of Debt (P
Financing - Schedule of Debt (Parenthetical) (Detail) | Apr. 29, 2015 | Nov. 21, 2015 | Aug. 29, 2015 |
Commercial paper, weighted average interest rate of 0.46% and 0.45% at November 21, 2015 and August 29, 2015, respectively [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate of commercial paper | 0.46% | 0.45% | |
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% | |
Effective interest rate | 1.43% | 1.43% | |
Debt instrument maturity, month and year | 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 | 7.125% | 7.125% | |
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 | |
2.500% Senior Notes due April 2021, effective interest rate of 3.85% [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 2.50% | 2.50% | 2.50% |
Effective interest rate | 3.85% | 3.85% | |
Debt instrument maturity, month and year | 2021-04 | 2021-04 | 2021-04 |
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 | 2.875% | 2.875% | |
Effective interest rate | 3.21% | 3.21% | |
Debt instrument maturity, month and year | 2023-01 | 2023-01 | |
3.125% Senior Notes due July 2023, effective interest rate of 3.26% [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 3.125% | 3.125% | |
Effective interest rate | 3.26% | 3.26% | |
Debt instrument maturity, month and year | 2023-07 | 2023-07 | |
3.250% Senior Notes due April 2025, effective interest rate 3.36% [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 3.25% | 3.25% | 3.25% |
Effective interest rate | 3.36% | 3.36% | |
Debt instrument maturity, month and year | 2025-04 | 2025-04 | 2025-04 |
Financing - Additional Informat
Financing - Additional Information (Detail) - USD ($) | Apr. 29, 2015 | Nov. 21, 2015 | Aug. 29, 2015 | Dec. 19, 2014 |
Line of Credit Facility [Line Items] | ||||
Commercial paper | $ 1,475,900,000 | $ 1,047,600,000 | ||
Long-term debt | 4,754,101,000 | 4,624,876,000 | ||
Remaining borrowing capacity under revolving credit facility | 1,708,000,000 | |||
Amount available under credit facility | 1,750,000,000 | |||
Fair value of the Company's debt | 4,835,000,000 | 4,696,000,000 | ||
Excess (shortfall) of fair value of debt over (from) carrying value | $ 80,900,000 | $ 70,700,000 | ||
Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Term Loan Maturity Period | 1 year | |||
3.250% Senior Notes due April 2025, effective interest rate 3.36% [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate percentage | 3.25% | 3.25% | 3.25% | |
Debt instrument maturity, month and year | 2025-04 | 2025-04 | 2025-04 | |
Proceeds from issuance of debt | $ 400,000,000 | |||
2.500% Senior Notes due April 2021, effective interest rate of 3.85% [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate percentage | 2.50% | 2.50% | 2.50% | |
Debt instrument maturity, month and year | 2021-04 | 2021-04 | 2021-04 | |
Proceeds from issuance of debt | $ 250,000,000 | |||
5.750% Senior Notes due January 2015, effective interest rate of 5.89% [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate percentage | 5.75% | |||
Debt instrument maturity, month and year | 2015-01 | |||
Repayment with commercial paper | $ 500,000,000 | |||
6.950% Senior Notes due June 2016, effective interest rate of 7.09% [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt | $ 200,000,000 | |||
Stated interest rate percentage | 6.95% | 6.95% | ||
Debt instrument maturity, month and year | 2016-06 | 2016-06 | ||
Multi Year Revolving Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount available under credit facility | $ 1,250,000,000 | |||
Extended expiration of credit facility | 2 years | |||
Maximum amount available under credit facility | 1,500,000,000 | |||
Borrowings, outstanding | $ 0 | |||
Letters of credit, outstanding | $ 3,500,000 | |||
Multi Year Revolving Credit Agreement [Member] | Capital Leases [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum amount available under credit facility | 225,000,000 | |||
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. | |||
Expiration of credit facility | December 2,019 | |||
Letters of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum amount available under credit facility | 200,000,000 | |||
364-Day Revolving Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum amount available under credit facility | $ 500,000,000 | |||
Credit facility interest rate description | Interest accrues on Eurodollar loans at a defined Eurodollar rate, defined as LIBOR plus the applicable margin, as defined in the revolving credit facility, depending upon the Company's senior, unsecured, (non-credit enhanced) long-term debt rating. | |||
Credit facility expiration date | Dec. 19, 2015 | |||
Borrowings, outstanding | $ 0 | |||
Term Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Percentage of penalty for extending expiration period | 1.00% | |||
Term Loan [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility extension or modification period prior to expiration | 15 days |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) | Nov. 22, 2015 | Oct. 07, 2015 | Nov. 21, 2015 | Nov. 21, 2015 | Oct. 06, 2015 |
Stock Repurchase Program [Line Items] | |||||
Stock repurchased cumulative, shares | 536,654 | 139,400,000 | |||
Repurchased shares of common stock at an aggregate cost | $ 400,100,000 | $ 15,702,000,000 | |||
Increase in authorization of stock repurchase, value | $ 750,000,000 | ||||
Stock repurchase authorized amended value | $ 16,400,000,000 | $ 15,650,000,000 | |||
Remaining value authorized for share repurchases | $ 697,700,000 | $ 697,700,000 | |||
Treasury stock acquired repurchase authorization | From January 1, 1998 to November 21, 2015, the Company has repurchased a total of 139.4 million shares at an aggregate cost of $15.702 billion, including 536,654 shares of its common stock at an aggregate cost of $400.1 million during the twelve week period ended November 21, 2015. On October 7, 2015, the Board voted to increase the authorization by $750 million to raise the cumulative share repurchase authorization from $15.65 billion to $16.4 billion. Considering the cumulative repurchases as of November 21, 2015, the Company had $697.7 million remaining under the Board’s authorization to repurchase its common stock. Subsequent to November 21, 2015, the Company has repurchased xx,xxx shares of its common stock at an aggregate cost of $xxx.x million. | ||||
Subsequent Event [Member] | |||||
Stock Repurchase Program [Line Items] | |||||
Stock repurchased cumulative, shares | 102,658 | ||||
Repurchased shares of common stock at an aggregate cost | $ 80,000,000 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 21, 2015 | Nov. 22, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ (249,518) | $ (128,903) |
Other comprehensive (loss) income before reclassifications | 7,712 | (18,485) |
Amounts reclassified from Accumulated other comprehensive loss | 1,411 | 1,237 |
Ending Balance | (240,395) | (146,151) |
Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (70,795) | (63,820) |
Amounts reclassified from Accumulated other comprehensive loss | 1,234 | 1,217 |
Ending Balance | (69,561) | (62,603) |
Foreign Currency [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (171,488) | (57,836) |
Other comprehensive (loss) income before reclassifications | 7,787 | (18,361) |
Ending Balance | (163,701) | (76,197) |
Net Unrealized Gain on Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (26) | 76 |
Other comprehensive (loss) income before reclassifications | (75) | (33) |
Amounts reclassified from Accumulated other comprehensive loss | 13 | (5) |
Ending Balance | (88) | 38 |
Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (7,209) | (7,323) |
Other comprehensive (loss) income before reclassifications | (91) | |
Amounts reclassified from Accumulated other comprehensive loss | 164 | 25 |
Ending Balance | $ (7,045) | $ (7,389) |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 21, 2015 | Nov. 22, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pension liability adjustments, taxes | $ 1,190 | $ 846 |
Unrealized (losses) gains on marketable securities, taxes | 33 | 21 |
Net derivative activities, taxes | 85 | 36 |
Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pension liability adjustments, taxes | 1,190 | 846 |
Net Unrealized Gain on Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized (losses) gains on marketable securities, taxes | 7 | 3 |
Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net derivative activities, taxes | $ 85 | $ 17 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Nov. 21, 2015USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning balance | $ 391,887 |
Goodwill adjustments | 0 |
Goodwill, Ending balance | 391,887 |
Auto Parts Locations [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning balance | 326,703 |
Goodwill adjustments | 0 |
Goodwill, Ending balance | 326,703 |
Other [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning balance | 65,184 |
Goodwill adjustments | 0 |
Goodwill, Ending balance | $ 65,184 |
Goodwill and Intangibles - Sc48
Goodwill and Intangibles - Schedule of Carrying Amounts of Intangible Assets (Detail) $ in Thousands | 3 Months Ended |
Nov. 21, 2015USD ($) | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | $ 61,546 |
Finite Lived, Accumulated Amortization | (20,735) |
Finite Lived, Net Carrying Amount | 40,811 |
Total intangible assets other than goodwill, Net Carrying Amount | 67,711 |
Technology [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | 10,570 |
Finite Lived, Accumulated Amortization | (6,272) |
Finite Lived, Net Carrying Amount | $ 4,298 |
Technology [Member] | Minimum [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Technology [Member] | Maximum [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
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 | (763) |
Finite Lived, Net Carrying Amount | 537 |
Customer Relationships [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | 49,676 |
Finite Lived, Accumulated Amortization | (13,700) |
Finite Lived, Net Carrying Amount | $ 35,976 |
Customer Relationships [Member] | Minimum [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
Trade Name [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Non-amortizing intangible asset - Trade name, Net Carrying Amount | $ 26,900 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 27, 2014 | Nov. 21, 2015 | Nov. 22, 2014 | Aug. 29, 2015 |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 2,000 | $ 2,100 | ||
Purchase of intangibles | 10,000 | 10,000 | ||
Acquisition of outstanding stock | 75,744 | |||
Goodwill | 391,887 | $ 391,887 | ||
Interamerican Motor Corporation [Member] | ||||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||||
Acquisition of outstanding stock | $ 75,700 | |||
Goodwill | 24,100 | |||
Purchase price allocation, intangible assets | $ 3,600 | |||
Customer Relationships [Member] | ||||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||||
Purchase of intangibles | $ 10,000 | $ 10,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Nov. 21, 2015StoresItem | |
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 | Stores | 5,635 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 21, 2015 | Nov. 22, 2014 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 2,386,043 | $ 2,260,264 |
Gross profit | 1,252,934 | 1,176,661 |
Operating, selling, general and administrative expenses | (814,939) | (768,099) |
Interest expense, net | (35,010) | (37,060) |
Income before income taxes | 402,985 | 371,502 |
Auto Parts Locations [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,304,318 | 2,181,532 |
Gross profit | 1,208,390 | 1,132,335 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 81,725 | 78,732 |
Gross profit | $ 44,544 | $ 44,326 |