Document and Entity Information
Document and Entity Information - shares | 8 Months Ended | |
May 07, 2016 | Jun. 10, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 7, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AZO | |
Entity Registrant Name | AUTOZONE INC | |
Entity Central Index Key | 866,787 | |
Current Fiscal Year End Date | --08-27 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,232,031 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | May 07, 2016 | Aug. 29, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 213,380 | $ 175,309 |
Accounts receivable | 294,529 | 247,872 |
Merchandise inventories | 3,597,251 | 3,421,635 |
Other current assets | 120,326 | 121,847 |
Deferred income taxes | 3,631 | |
Total current assets | 4,225,486 | 3,970,294 |
Property and equipment: | ||
Property and equipment | 6,157,061 | 5,891,707 |
Less: Accumulated depreciation and amortization | (2,537,756) | (2,386,075) |
Property and equipment, net | 3,619,305 | 3,505,632 |
Goodwill | 391,887 | 391,887 |
Deferred income taxes | 30,936 | 42,615 |
Other long-term assets | 196,491 | 191,921 |
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | 619,314 | 626,423 |
Assets | 8,464,105 | 8,102,349 |
Current liabilities: | ||
Accounts payable | 3,991,030 | 3,864,168 |
Accrued expenses and other | 527,432 | 531,561 |
Income taxes payable | 129,127 | 58,082 |
Deferred income taxes | 259,062 | |
Total current liabilities | 4,647,589 | 4,712,873 |
Long-term debt | 4,953,697 | 4,624,876 |
Deferred income taxes | 245,296 | |
Other long-term liabilities | $ 480,805 | $ 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; 30,229 shares issued and 29,501 shares outstanding as of May 7, 2016; 32,098 shares issued and 30,659 shares outstanding as of August 29, 2015 | $ 302 | $ 321 |
Additional paid-in capital | 998,382 | 938,355 |
Retained deficit | (2,028,953) | (1,418,738) |
Accumulated other comprehensive loss | (269,977) | (249,518) |
Treasury stock, at cost | (563,036) | (971,810) |
Total stockholders' deficit | (1,863,282) | (1,701,390) |
Liabilities and Stockholders' Deficit | $ 8,464,105 | $ 8,102,349 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | May 07, 2016 | 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 | 30,229,000 | 32,098,000 |
Common stock, shares outstanding | 29,501,000 | 30,659,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 07, 2016 | May 09, 2015 | May 07, 2016 | May 09, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,593,672 | $ 2,493,021 | $ 7,236,907 | $ 6,896,936 |
Cost of sales, including warehouse and delivery expenses | 1,223,214 | 1,190,232 | 3,422,919 | 3,297,453 |
Gross profit | 1,370,458 | 1,302,789 | 3,813,988 | 3,599,483 |
Operating, selling, general and administrative expenses | 834,084 | 788,840 | 2,456,959 | 2,315,704 |
Operating profit | 536,374 | 513,949 | 1,357,029 | 1,283,779 |
Interest expense, net | 34,051 | 31,779 | 101,893 | 103,374 |
Income before income taxes | 502,323 | 482,170 | 1,255,136 | 1,180,405 |
Income taxes | 174,808 | 173,099 | 440,897 | 421,301 |
Net income | $ 327,515 | $ 309,071 | $ 814,239 | $ 759,104 |
Weighted average shares for basic earnings per share | 29,809 | 31,643 | 30,159 | 31,893 |
Effect of dilutive stock equivalents | 596 | 658 | 614 | 641 |
Weighted average shares for diluted earnings per share | 30,405 | 32,301 | 30,773 | 32,534 |
Basic earnings per share | $ 10.99 | $ 9.77 | $ 27 | $ 23.80 |
Diluted earnings per share | $ 10.77 | $ 9.57 | $ 26.46 | $ 23.33 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | |||
May 07, 2016 | May 09, 2015 | May 07, 2016 | May 09, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 327,515 | $ 309,071 | $ 814,239 | $ 759,104 | |
Other comprehensive loss: | |||||
Pension liability adjustments, net of taxes | [1] | 1,479 | 1,256 | 4,192 | 3,741 |
Foreign currency translation adjustments | 36,000 | (13,285) | (23,936) | (72,138) | |
Unrealized gains on marketable securities, net of taxes | [2] | 159 | 129 | 245 | 41 |
Net derivative activities, net of taxes | [3] | 234 | 304 | (960) | 77 |
Total other comprehensive loss | 37,872 | (11,596) | (20,459) | (68,279) | |
Comprehensive income | $ 365,387 | $ 297,475 | $ 793,780 | $ 690,825 | |
[1] | Pension liability adjustments are presented net of taxes of $945 in fiscal 2016 and $807 in fiscal 2015 for the twelve weeks ended and $3,081 in fiscal 2016 and $2,449 in fiscal 2015 for the thirty-six weeks ended. | ||||
[2] | Unrealized gains on marketable securities are presented net of taxes of $86 in fiscal 2016 and $69 in fiscal 2015 for the twelve weeks ended and $132 in fiscal 2016 and $22 in fiscal 2015 for the thirty-six weeks ended. | ||||
[3] | Net derivative activities are presented net of taxes of $137 in fiscal 2016 and $264 in fiscal 2015 for the twelve weeks ended and $572 in fiscal 2016 and $49 in fiscal 2015 for the thirty-six weeks ended. |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 07, 2016 | May 09, 2015 | May 07, 2016 | May 09, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension liability adjustments, taxes | $ 945 | $ 807 | $ 3,081 | $ 2,449 |
Unrealized gains on marketable securities, taxes | 86 | 69 | 132 | 22 |
Net derivative activities, taxes | $ 137 | $ 264 | $ 572 | $ 49 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 8 Months Ended | |
May 07, 2016 | May 09, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 814,239 | $ 759,104 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment and intangibles | 203,465 | 183,211 |
Amortization of debt origination fees | 5,407 | 4,274 |
Income tax benefit from exercise of stock options | (48,329) | (44,656) |
Deferred income taxes | (2,000) | (5,431) |
Share-based compensation expense | 28,452 | 29,688 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (47,509) | 5,395 |
Merchandise inventories | (185,732) | (294,330) |
Accounts payable and accrued expenses | 140,129 | 230,817 |
Income taxes payable | 120,329 | 121,290 |
Other, net | 18,449 | 9,750 |
Net cash provided by operating activities | 1,046,900 | 999,112 |
Cash flows from investing activities: | ||
Capital expenditures | (299,922) | (292,745) |
Acquisition of business, net of cash | (75,744) | |
Purchase of intangibles | (10,000) | (10,000) |
Purchase of marketable securities | (95,368) | (26,438) |
Proceeds from sale of marketable securities | 85,990 | 23,350 |
Disposal of capital assets and other, net | 2,996 | (3,147) |
Net cash used in investing activities | (316,304) | (384,724) |
Cash flows from financing activities: | ||
Net (payments) proceeds from commercial paper | (19,100) | 40,700 |
Proceeds from issuance of debt | 650,000 | 650,000 |
Repayment of debt | (300,000) | (500,000) |
Net proceeds from sale of common stock | 51,194 | 57,015 |
Purchase of treasury stock | (1,082,725) | (840,918) |
Income tax benefit from exercise of stock options | 48,329 | 44,656 |
Payments of capital lease obligations | (28,716) | (26,664) |
Other, net | (7,932) | (8,699) |
Net cash used in financing activities | (688,950) | (583,910) |
Effect of exchange rate changes on cash | (3,575) | (1,675) |
Net increase in cash and cash equivalents | 38,071 | 28,803 |
Cash and cash equivalents at beginning of period | 175,309 | 124,485 |
Cash and cash equivalents at end of period | $ 213,380 | $ 153,288 |
General
General | 8 Months Ended |
May 07, 2016 | |
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 and thirty-six weeks ended May 7, 2016 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 Adopted Accounting Pronouncements: , Income Taxes – Balance Sheet Classification of Deferred Taxes (Topic 740) Recently Issued Accounting Pronouncements: , Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-04 , Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) Improvement to Employee Share-based Payment Accounting In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. |
Share-Based Payments
Share-Based Payments | 8 Months Ended |
May 07, 2016 | |
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 $9.9 million for the twelve week period ended May 7, 2016, and was $9.5 million for the comparable prior year period. Share-based compensation expense was $28.5 million for the thirty-six week period ended May 7, 2016, and was $29.7 million for the comparable prior year period. During the thirty-six week period ended May 7, 2016, 236,037 stock options were exercised at a weighted average exercise price of $218.02. In the comparable prior year period, 311,285 stock options were exercised at a weighted average exercise price of $186.40. The Company made stock option grants of 376,915 shares during the thirty-six week period ended May 7, 2016, and granted options to purchase 329,700 shares during the comparable prior year period. The weighted average fair value of the stock option awards granted during the thirty-six week periods ended May 7, 2016, and May 9, 2015, using the Black-Scholes-Merton multiple-option pricing valuation model, was $156.20 and $106.26 per share, respectively, using the following weighted average key assumptions: Thirty-Six Weeks Ended May 7, 2016 May 9, 2015 Expected price volatility 18 % 20 % Risk-free interest rate 1.5 % 1.4 % Weighted average expected lives (in years) 5.7 5.1 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 Plan. For the twelve week period ended May 7, 2016, 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, 1,140 anti-dilutive shares were excluded from the dilutive earnings per share computation. There were 25,670 anti-dilutive shares excluded from the diluted earnings per share computation for the thirty-six week period ended May 7, 2016, and 2,240 anti-dilutive shares excluded for the comparable prior year period. During the second quarter of fiscal 2016, the Company’s stockholders approved the Amended and Restated AutoZone, Inc. 2011 Equity Incentive Award Plan (the “Amended 2011 Equity Plan”). The Amended 2011 Equity Plan imposes a maximum limit on the compensation, measured as the sum of any cash compensation and the aggregate grant date fair value of awards granted under the Amended 2011 Equity Plan, which may be paid to non-employee directors for such service during any calendar year. The Amended 2011 Equity Plan also applies a ten-year term on the Amended 2011 Equity Plan through December 16, 2025 and extends the Company’s ability to grant incentive stock options through October 7, 2025. |
Fair Value Measurements
Fair Value Measurements | 8 Months Ended |
May 07, 2016 | |
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: May 7, 2016 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 6,162 $ 443 $ — $ 6,605 Other long-term assets 67,903 23,674 — 91,577 $ 74,065 $ 24,117 $ — $ 98,182 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 May 7, 2016, the fair value measurement amounts for assets and liabilities recorded in the accompanying Condensed Consolidated Balance Sheet consisted of short-term marketable securities of $6.6 million, which are included within Other current assets, and long-term marketable securities of $91.6 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 thirty-six week periods ended May 7, 2016, and May 9, 2015, the Company did not have any 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 | 8 Months Ended |
May 07, 2016 | |
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: May 7, 2016 (in thousands) Amortized Basis Gross Gross Fair Corporate securities $ 37,697 $ 240 $ (1 ) $ 37,936 Government bonds 32,602 63 (2 ) 32,663 Mortgage-backed securities 7,617 27 (17 ) 7,627 Asset-backed securities and other 19,928 30 (2 ) 19,956 $ 97,844 $ 360 $ (22 ) $ 98,182 August 29, 2015 (in thousands) Amortized Basis Gross Gross Fair 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 May 7, 2016 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 thirty-six week period ended May 7, 2016. The Company holds 18 securities that are in an unrealized loss position of approximately $22 thousand at May 7, 2016. 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 $61.6 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 | 8 Months Ended |
May 07, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note E – Derivative Financial Instruments At May 7, 2016, the Company had $12.9 million recorded in Accumulated other comprehensive loss related to realized losses associated with terminated interest rate swap and treasury rate lock derivatives which were designated as hedging instruments. Net losses are amortized into Interest expense over the remaining life of the associated debt. During the twelve week period ended May 7, 2016, the Company reclassified $459 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. During the thirty-six week period ended May 7, 2016, the Company reclassified $1.2 million of net losses from Accumulated other comprehensive loss to Interest expense. In the comparable prior year period, the Company reclassified $126 thousand of net losses from Accumulated other comprehensive loss to Interest expense. The Company expects to reclassify $2.2 million of net losses from Accumulated other comprehensive loss to Interest expense over the next 12 months. |
Merchandise Inventories
Merchandise Inventories | 8 Months Ended |
May 07, 2016 | |
Inventory Disclosure [Abstract] | |
Merchandise Inventories | Note F – Merchandise Inventories Merchandise inventories are stated at the lower of cost or market. Merchandise inventories include related purchasing, storage, and handling costs. Inventory cost has been determined using the last-in, first-out (“LIFO”) method for domestic inventories and the first-in, first-out method for Mexico and Brazil inventories. Due to price deflation on the Company’s merchandise purchases, the Company has exhausted its LIFO reserve balance. The Company’s policy is not to write up inventory in excess of replacement cost, which is based on average cost. The difference between LIFO cost and replacement cost, which will be reduced upon experiencing price inflation on the Company’s merchandise purchases, was $349.4 million at May 7, 2016 and $332.6 million at August 29, 2015. |
Pension and Savings Plans
Pension and Savings Plans | 8 Months Ended |
May 07, 2016 | |
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 Thirty-Six Weeks Ended (in thousands) May 7, 2016 May 9, 2015 May 7, 2016 May 9, 2015 Interest cost $ 2,601 $ 2,847 $ 7,804 $ 8,542 Expected return on plan assets (3,810 ) (3,757 ) (11,431 ) (11,272 ) Amortization of net loss 2,424 2,063 7,273 6,190 Net periodic pension expense $ 1,215 $ 1,153 $ 3,646 $ 3,460 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 thirty-six week period ended May 7, 2016, the Company made contributions to its funded plan in the amount of $3.0 million. The Company expects to contribute up to $50.0 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, a change in the actual or expected return on plan assets or through other plans initiated by management. During the thirty-six week period ended May 7, 2016, 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 $1.2 million in the thirty-six week period ended May 7, 2016. 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 has accounted for it prospectively. |
Financing
Financing | 8 Months Ended |
May 07, 2016 | |
Debt Disclosure [Abstract] | |
Financing | Note H – Financing The Company’s long-term debt consisted of the following: (in thousands) May 7, 2016 August 29, 2015 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 of 1.43% 400,000 400,000 7.125% Senior Notes due August 2018, effective interest rate of 7.28% 250,000 250,000 1.625% Senior Notes due April 2019, effective interest rate of 1.77% 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 2.62% 250,000 250,000 3.700% Senior Notes due April 2022, effective interest rate of 3.85% 500,000 500,000 2.875% Senior Notes due January 2023, effective interest rate of 3.21% 300,000 300,000 3.125% Senior Notes due July 2023, effective interest rate of 3.26% 500,000 500,000 3.250% Senior Notes due April 2025, effective interest rate 3.36% 400,000 400,000 3.125% Senior Notes due April 2026, effective interest rate of 3.28% 400,000 — Commercial paper, weighted average interest rate of 0.72% and 0.45% at May 7, 2016 and August 29, 2015, respectively 1,028,500 1,047,600 Total debt 4,978,500 4,647,600 Less: Short-term borrowings — — Long-term debt before discounts and debt issuance costs 4,978,500 4,647,600 Less: Discounts and debt issuance costs 24,803 22,724 Long-term debt $ 4,953,697 $ 4,624,876 As of May 7, 2016, $1.029 billion of commercial paper borrowings, the $200 million 6.950% Senior Notes due June 2016 and the $400 million 1.300% Senior Notes due January 2017 were classified as long-term in the accompanying Consolidated Balance Sheets as the Company had the ability and intent to refinance on a long-term basis through available capacity in its revolving credit facilities. As of May 7, 2016, the Company had $1.709 billion of availability under its $1.75 billion revolving credit facilities, which would allow it to replace these short-term obligations with long-term financing facilities. On April 21, 2016, the Company issued $400 million in 3.125% Notes due April 2026 and $250 million in 1.625% Notes due April 2019 under its shelf registration statement filed with the SEC on April 15, 2015 (the “2015 Shelf Registration”). The 2015 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 for general corporate purposes. 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 the 2015 Shelf Registration. 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 renegotiating 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 banks approved, the extension of the termination date to December 16, 2016. In addition, at least 15 days prior to December 16, 2016, the Company has the right to convert the credit facility to a term-loan for up to one year from the termination date, subject to a 1% penalty. As of May 7, 2016, the Company had no outstanding borrowings under each of the revolving credit facilities and $3.3 million of outstanding letters of credit under the Multi-Year Credit Agreement. The fair value of the Company’s debt was estimated at $5.113 billion as of May 7, 2016 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 $158.8 million at May 7, 2016 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 | 8 Months Ended |
May 07, 2016 | |
Equity [Abstract] | |
Stock Repurchase Program | Note I – Stock Repurchase Program From January 1, 1998 to May 7, 2016 the Company has repurchased a total of 140.3 million shares at an aggregate cost of $16.385 billion, including 1.4 million shares of its common stock at an aggregate cost of $1.083 billion during the thirty-six week period ended May 7, 2016. On March 22, 2016 the Board voted to increase the authorization by $750 million to raise the cumulative share repurchase authorization from $16.4 billion to $17.15 billion. Considering the cumulative repurchases as of May 7, 2016, the Company had $765.1 million remaining under the Board’s authorization to repurchase its common stock. Subsequent to May 7, 2016, the Company has repurchased 339,423 shares of its common stock at an aggregate cost of $259.0 million. During the thirty-six week period ended May 7, 2016, the Company retired 2.1 million shares of treasury stock which had previously been repurchased under the Company’s share repurchase program. The retirement increased Retained deficit by $1.424 billion and decreased Additional paid-in capital by $67.0 million. During the comparable prior year period, the Company retired 2.1 million shares of treasury stock, which increased Retained deficit by $1.050 billion and decreased Additional paid-in capital by $57.4 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 8 Months Ended |
May 07, 2016 | |
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 for the twelve week periods ended May 7, 2016 and May 9, 2015 consisted of the following: (in thousands) Pension Liability Foreign (3) Net Derivatives Total Balance at February 13, 2016 $ (68,082 ) $ (231,424 ) $ 60 $ (8,403 ) $ (307,849 ) Other comprehensive income (loss) before reclassifications ( ) — 36,000 187 (1,047 ) 35,140 Amounts reclassified from Accumulated other comprehensive loss ( ) 1,479 (2) — (28 ) (4) 1,281 (5) 2,732 Balance at May 7, 2016 $ (66,603 ) $ (195,424 ) $ 219 $ (8,169 ) $ (269,977 ) (in thousands) Pension Liability Foreign (3) Net Derivatives Total Balance at February 14, 2015 $ (61,335 ) $ (116,689 ) $ (12 ) $ (7,550 ) $ (185,586 ) Other comprehensive (loss) income before reclassifications ( ) — (13,285 ) 121 277 (12,887 ) Amounts reclassified from Accumulated other comprehensive loss ( ) 1,256 (2) — 8 (4) 27 (5) 1,291 Balance at May 9, 2015 $ (60,079 ) $ (129,974 ) $ 117 $ (7,246 ) $ (197,182 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Represents amortization of pension liability adjustments, net of taxes of $945 for the twelve weeks ended May 7, 2016 and $807 for the twelve weeks ended May 9, 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 losses on marketable securities, net of taxes of $15 for the twelve weeks ended May 7, 2016 and $4 for the twelve weeks ended May 9, 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 $822 for the twelve weeks ended May 7, 2016 and $15 for the twelve weeks ended May 9, 2015, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion. Changes in Accumulated other comprehensive loss for the thirty-six week periods ended May 7, 2016 and May 9, 2015 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 (loss) income before reclassifications ( ) — (23,936 ) 280 (2,687 ) (26,343 ) Amounts reclassified from Accumulated other comprehensive loss ( ) 4,192 (2) — (35 ) (4) 1,727 (5) 5,884 Balance at May 7, 2016 $ (66,603 ) $ (195,424 ) $ 219 $ (8,169 ) $ (269,977 ) (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) income before reclassifications ( ) — (72,138 ) 61 — (72,077 ) Amounts reclassified from Accumulated other comprehensive loss ( ) 3,741 (2) — (20 ) (4) 77 (5) 3,798 Balance at May 9, 2015 $ (60,079 ) $ (129,974 ) $ 117 $ (7,246 ) $ (197,182 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Represents amortization of pension liability adjustments, net of taxes of $3,081 in fiscal 2016 and $2,449 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 losses on marketable securities, net of taxes of $19 in fiscal 2016 and $11 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 $572 in fiscal 2016 and $49 is 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 | 8 Months Ended |
May 07, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Note K – Goodwill and Intangibles As of May 7, 2016, there were no changes to the carrying amount of goodwill as described in our Annual Report on Form 10-K for the year ended August 29, 2015. The carrying amounts of intangible assets are included in Other long-term assets as follows: (in thousands) Estimated Gross Accumulated Net Carrying Amortizing intangible assets: Technology 3-5 years $ 10,570 $ (7,301 ) $ 3,269 Noncompete agreements 5 years 1,300 (883 ) 417 Customer relationships 3-10 years 49,676 (16,589 ) 33,087 $ 61,546 $ (24,773 ) 36,773 Non-amortizing intangible asset: Trade name 26,900 Total intangible assets other than goodwill $ 63,673 Amortization expense of intangible assets for the twelve and thirty-six week period ended May 7, 2016 was $2.0 million and $6.1 million, respectively. Amortization expense of intangible assets for the twelve and thirty-six week periods ended May 9, 2015 was $2.0 million and $6.2 million, respectively. During the thirty-six week period ended May 7, 2016 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 | 8 Months Ended |
May 07, 2016 | |
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 received notice that the District Attorney will seek injunctive and monetary relief. The Company is cooperating fully with the request and cannot predict the ultimate outcome of these efforts, although the Company has accrued all amounts it believes to be probable and reasonably estimable. The Company does not believe the ultimate resolution of this matter will have a material adverse effect on its consolidated financial position, results of operations or cash flows. 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 | 8 Months Ended |
May 07, 2016 | |
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 5,717 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 Thirty-Six Weeks Ended (in thousands) May 7, 2016 May 9, 2015 May 7, 2016 May 9, 2015 Net Sales Auto Parts Locations $ 2,503,108 $ 2,404,469 $ 6,978,413 $ 6,645,712 Other 90,564 88,552 258,494 251,224 Total $ 2,593,672 $ 2,493,021 $ 7,236,907 $ 6,896,936 Segment Profit Auto Parts Locations $ 1,323,641 $ 1,256,753 $ 3,677,000 $ 3,464,166 Other 46,817 46,036 136,988 135,317 Gross profit 1,370,458 1,302,789 3,813,988 3,599,483 Operating, selling, general and administrative expenses (834,084 ) (788,840 ) (2,456,959 ) (2,315,704 ) Interest expense, net (34,051 ) (31,779 ) (101,893 ) (103,374 ) Income before income taxes $ 502,323 $ 482,170 $ 1,255,136 $ 1,180,405 |
General (Policies)
General (Policies) | 8 Months Ended |
May 07, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period | Operating results for the twelve and thirty-six weeks ended May 7, 2016 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 Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements: , Income Taxes – Balance Sheet Classification of Deferred Taxes (Topic 740) |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: , Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-04 , Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) Improvement to Employee Share-based Payment Accounting In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 8 Months Ended |
May 07, 2016 | |
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 thirty-six week periods ended May 7, 2016, and May 9, 2015, using the Black-Scholes-Merton multiple-option pricing valuation model, was $156.20 and $106.26 per share, respectively, using the following weighted average key assumptions: Thirty-Six Weeks Ended May 7, 2016 May 9, 2015 Expected price volatility 18 % 20 % Risk-free interest rate 1.5 % 1.4 % Weighted average expected lives (in years) 5.7 5.1 Forfeiture rate 10 % 9 % Dividend yield 0 % 0 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 8 Months Ended |
May 07, 2016 | |
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: May 7, 2016 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 6,162 $ 443 $ — $ 6,605 Other long-term assets 67,903 23,674 — 91,577 $ 74,065 $ 24,117 $ — $ 98,182 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) | 8 Months Ended |
May 07, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Marketable Securities | The Company’s available-for-sale marketable securities consisted of the following: May 7, 2016 (in thousands) Amortized Basis Gross Gross Fair Corporate securities $ 37,697 $ 240 $ (1 ) $ 37,936 Government bonds 32,602 63 (2 ) 32,663 Mortgage-backed securities 7,617 27 (17 ) 7,627 Asset-backed securities and other 19,928 30 (2 ) 19,956 $ 97,844 $ 360 $ (22 ) $ 98,182 August 29, 2015 (in thousands) Amortized Basis Gross Gross Fair 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) | 8 Months Ended |
May 07, 2016 | |
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 Thirty-Six Weeks Ended (in thousands) May 7, 2016 May 9, 2015 May 7, 2016 May 9, 2015 Interest cost $ 2,601 $ 2,847 $ 7,804 $ 8,542 Expected return on plan assets (3,810 ) (3,757 ) (11,431 ) (11,272 ) Amortization of net loss 2,424 2,063 7,273 6,190 Net periodic pension expense $ 1,215 $ 1,153 $ 3,646 $ 3,460 |
Financing (Tables)
Financing (Tables) | 8 Months Ended |
May 07, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s long-term debt consisted of the following: (in thousands) May 7, 2016 August 29, 2015 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 of 1.43% 400,000 400,000 7.125% Senior Notes due August 2018, effective interest rate of 7.28% 250,000 250,000 1.625% Senior Notes due April 2019, effective interest rate of 1.77% 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 2.62% 250,000 250,000 3.700% Senior Notes due April 2022, effective interest rate of 3.85% 500,000 500,000 2.875% Senior Notes due January 2023, effective interest rate of 3.21% 300,000 300,000 3.125% Senior Notes due July 2023, effective interest rate of 3.26% 500,000 500,000 3.250% Senior Notes due April 2025, effective interest rate 3.36% 400,000 400,000 3.125% Senior Notes due April 2026, effective interest rate of 3.28% 400,000 — Commercial paper, weighted average interest rate of 0.72% and 0.45% at May 7, 2016 and August 29, 2015, respectively 1,028,500 1,047,600 Total debt 4,978,500 4,647,600 Less: Short-term borrowings — — Long-term debt before discounts and debt issuance costs 4,978,500 4,647,600 Less: Discounts and debt issuance costs 24,803 22,724 Long-term debt $ 4,953,697 $ 4,624,876 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Loss (Tables) | 8 Months Ended |
May 07, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss for the twelve week periods ended May 7, 2016 and May 9, 2015 consisted of the following: (in thousands) Pension Liability Foreign (3) Net Derivatives Total Balance at February 13, 2016 $ (68,082 ) $ (231,424 ) $ 60 $ (8,403 ) $ (307,849 ) Other comprehensive income (loss) before reclassifications ( ) — 36,000 187 (1,047 ) 35,140 Amounts reclassified from Accumulated other comprehensive loss ( ) 1,479 (2) — (28 ) (4) 1,281 (5) 2,732 Balance at May 7, 2016 $ (66,603 ) $ (195,424 ) $ 219 $ (8,169 ) $ (269,977 ) (in thousands) Pension Liability Foreign (3) Net Derivatives Total Balance at February 14, 2015 $ (61,335 ) $ (116,689 ) $ (12 ) $ (7,550 ) $ (185,586 ) Other comprehensive (loss) income before reclassifications ( ) — (13,285 ) 121 277 (12,887 ) Amounts reclassified from Accumulated other comprehensive loss ( ) 1,256 (2) — 8 (4) 27 (5) 1,291 Balance at May 9, 2015 $ (60,079 ) $ (129,974 ) $ 117 $ (7,246 ) $ (197,182 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Represents amortization of pension liability adjustments, net of taxes of $945 for the twelve weeks ended May 7, 2016 and $807 for the twelve weeks ended May 9, 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 losses on marketable securities, net of taxes of $15 for the twelve weeks ended May 7, 2016 and $4 for the twelve weeks ended May 9, 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 $822 for the twelve weeks ended May 7, 2016 and $15 for the twelve weeks ended May 9, 2015, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion. Changes in Accumulated other comprehensive loss for the thirty-six week periods ended May 7, 2016 and May 9, 2015 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 (loss) income before reclassifications ( ) — (23,936 ) 280 (2,687 ) (26,343 ) Amounts reclassified from Accumulated other comprehensive loss ( ) 4,192 (2) — (35 ) (4) 1,727 (5) 5,884 Balance at May 7, 2016 $ (66,603 ) $ (195,424 ) $ 219 $ (8,169 ) $ (269,977 ) (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) income before reclassifications ( ) — (72,138 ) 61 — (72,077 ) Amounts reclassified from Accumulated other comprehensive loss ( ) 3,741 (2) — (20 ) (4) 77 (5) 3,798 Balance at May 9, 2015 $ (60,079 ) $ (129,974 ) $ 117 $ (7,246 ) $ (197,182 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Represents amortization of pension liability adjustments, net of taxes of $3,081 in fiscal 2016 and $2,449 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 losses on marketable securities, net of taxes of $19 in fiscal 2016 and $11 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 $572 in fiscal 2016 and $49 is 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) | 8 Months Ended |
May 07, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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 Carrying Amortizing intangible assets: Technology 3-5 years $ 10,570 $ (7,301 ) $ 3,269 Noncompete agreements 5 years 1,300 (883 ) 417 Customer relationships 3-10 years 49,676 (16,589 ) 33,087 $ 61,546 $ (24,773 ) 36,773 Non-amortizing intangible asset: Trade name 26,900 Total intangible assets other than goodwill $ 63,673 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 8 Months Ended |
May 07, 2016 | |
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 Thirty-Six Weeks Ended (in thousands) May 7, 2016 May 9, 2015 May 7, 2016 May 9, 2015 Net Sales Auto Parts Locations $ 2,503,108 $ 2,404,469 $ 6,978,413 $ 6,645,712 Other 90,564 88,552 258,494 251,224 Total $ 2,593,672 $ 2,493,021 $ 7,236,907 $ 6,896,936 Segment Profit Auto Parts Locations $ 1,323,641 $ 1,256,753 $ 3,677,000 $ 3,464,166 Other 46,817 46,036 136,988 135,317 Gross profit 1,370,458 1,302,789 3,813,988 3,599,483 Operating, selling, general and administrative expenses (834,084 ) (788,840 ) (2,456,959 ) (2,315,704 ) Interest expense, net (34,051 ) (31,779 ) (101,893 ) (103,374 ) Income before income taxes $ 502,323 $ 482,170 $ 1,255,136 $ 1,180,405 |
General - Additional Informatio
General - Additional Information (Detail) | 8 Months Ended |
May 07, 2016 | |
Variable Interests And Equity Method Investments Disclosure [Abstract] | |
Description of reporting periods | Operating results for the twelve and thirty-six weeks ended May 7, 2016 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. |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 8 Months Ended | |||
May 07, 2016 | Feb. 13, 2016 | May 09, 2015 | May 07, 2016 | May 09, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense related to stock options and share purchase plans | $ 9,900 | $ 9,500 | $ 28,452 | $ 29,688 | |
Stock options exercised - Shares | 236,037 | 311,285 | |||
Stock options exercised - Weighted average exercise price | $ 218.02 | $ 186.40 | |||
Stock options granted | 376,915 | 329,700 | |||
Weighted average grant date fair value of options granted | $ 156.20 | $ 106.26 | |||
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 | 1,140 | 25,670 | 2,240 | |
Amended 2011 Equity Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity plan, expiration period | 10 years | ||||
Equity plan, expiration date | Dec. 16, 2025 |
Share-Based Payments - Weighted
Share-Based Payments - Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense (Detail) | 8 Months Ended | |
May 07, 2016 | May 09, 2015 | |
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 1 month 6 days |
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 | May 07, 2016 | Aug. 29, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | $ 6,605 | $ 8,790 |
Other long-term assets | 91,577 | 79,637 |
Total | 98,182 | 88,427 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 6,162 | 8,790 |
Other long-term assets | 67,903 | 63,342 |
Total | 74,065 | 72,132 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 443 | |
Other long-term assets | 23,674 | 16,295 |
Total | $ 24,117 | $ 16,295 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | May 07, 2016 | Aug. 29, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | $ 6,605 | $ 8,790 |
Long-term marketable securities | $ 91,577 | $ 79,637 |
Marketable Securities - Availab
Marketable Securities - Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | May 07, 2016 | Aug. 29, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | $ 97,844 | $ 88,467 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 360 | 108 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (22) | (148) |
Available-For-Sale Marketable Securities, Fair Value | 98,182 | 88,427 |
Corporate Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 37,697 | 34,859 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 240 | 51 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (1) | (40) |
Available-For-Sale Marketable Securities, Fair Value | 37,936 | 34,870 |
Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 32,602 | 33,098 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 63 | 31 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (2) | (7) |
Available-For-Sale Marketable Securities, Fair Value | 32,663 | 33,122 |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 7,617 | 9,287 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 27 | 17 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (17) | (99) |
Available-For-Sale Marketable Securities, Fair Value | 7,627 | 9,205 |
Asset-Backed Securities and Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 19,928 | 11,223 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 30 | 9 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (2) | (2) |
Available-For-Sale Marketable Securities, Fair Value | $ 19,956 | $ 11,230 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) $ in Thousands | 8 Months Ended | |
May 07, 2016USD ($)Securities | Aug. 29, 2015USD ($) | |
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 | 18 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | $ 22 | $ 148 |
Marketable securities transferred | $ 61,600 |
Derivative Financial Instrume37
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 07, 2016 | May 09, 2015 | May 07, 2016 | May 09, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Derivative losses recorded in Accumulated other comprehensive loss | $ 12,900 | |||
Net derivative losses amortized into Interest expense | $ 459 | $ 42 | 1,200 | $ 126 |
Net derivative loss expected to be reclassified over next 12 months | $ 2,200 | $ 2,200 |
Merchandise Inventories - Addit
Merchandise Inventories - Additional Information (Detail) - USD ($) $ in Millions | May 07, 2016 | Aug. 29, 2015 |
Inventory Disclosure [Abstract] | ||
Unrecorded adjustment for LIFO value in excess of replacement value | $ 349.4 | $ 332.6 |
Pension and Savings Plans - Net
Pension and Savings Plans - Net Periodic Benefit Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 07, 2016 | May 09, 2015 | May 07, 2016 | May 09, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Interest cost | $ 2,601 | $ 2,847 | $ 7,804 | $ 8,542 |
Expected return on plan assets | (3,810) | (3,757) | (11,431) | (11,272) |
Amortization of net loss | 2,424 | 2,063 | 7,273 | 6,190 |
Net periodic pension expense | $ 1,215 | $ 1,153 | $ 3,646 | $ 3,460 |
Pension and Savings Plans - Add
Pension and Savings Plans - Additional Information (Detail) - USD ($) $ in Millions | 8 Months Ended | 12 Months Ended |
May 07, 2016 | Aug. 27, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Annual contributions by the Company to pension plans | $ 3 | |
Change to net periodic pension expense | (1.2) | |
Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contributions to the plans by the Company in fiscal 2016 | $ 50 | |
Scenario Forecast [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Change to net periodic pension expense | $ (1.8) |
Financing - Schedule of Debt (D
Financing - Schedule of Debt (Detail) - USD ($) $ in Thousands | May 07, 2016 | Aug. 29, 2015 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 1,028,500 | $ 1,047,600 |
Total debt | 4,978,500 | 4,647,600 |
Total debt | 4,978,500 | 4,647,600 |
Less: Short-term borrowings | 0 | 0 |
Long-term debt before discounts and debt issuance costs | 4,978,500 | 4,647,600 |
Less: Discounts and debt issuance costs | 24,803 | 22,724 |
Long-term debt | 4,953,697 | 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 of 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 |
1.625% Senior Notes due April 2019, effective interest rate of 1.77% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 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 2.62% [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 |
3.125% Senior Notes due April 2026, effective interest rate of 3.28% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 400,000 |
Financing - Schedule of Debt (P
Financing - Schedule of Debt (Parenthetical) (Detail) | Apr. 21, 2016 | Apr. 29, 2015 | May 07, 2016 | Aug. 29, 2015 |
Commercial paper, weighted average interest rate of 0.72% and 0.45% at May 7, 2016 and August 29, 2015, respectively [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate of commercial paper | 0.72% | 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 of 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 | ||
1.625% Senior Notes due April 2019, effective interest rate of 1.77% [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate percentage | 1.625% | 1.625% | 1.625% | |
Effective interest rate | 1.77% | 1.77% | ||
Debt instrument maturity, month and year | 2019-04 | 2019-04 | 2019-04 | |
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 2.62% [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate percentage | 2.50% | 2.50% | 2.50% | |
Effective interest rate | 2.62% | 2.62% | ||
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 | |
3.125% Senior Notes due April 2026, effective interest rate of 3.28% [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate percentage | 3.125% | 3.125% | 3.125% | |
Effective interest rate | 3.28% | 3.28% | ||
Debt instrument maturity, month and year | 2026-04 | 2026-04 | 2026-04 |
Financing - Additional Informat
Financing - Additional Information (Detail) - USD ($) | Apr. 21, 2016 | Apr. 29, 2015 | May 07, 2016 | May 09, 2015 | Aug. 29, 2015 | Dec. 19, 2014 |
Line of Credit Facility [Line Items] | ||||||
Commercial paper | $ 1,028,500,000 | $ 1,047,600,000 | ||||
Long-term debt | 4,953,697,000 | 4,624,876,000 | ||||
Remaining borrowing capacity under revolving credit facility | 1,709,000,000 | |||||
Amount available under credit facility | 1,750,000,000 | |||||
Proceeds from issuance of debt | 650,000,000 | $ 650,000,000 | ||||
Fair value of the Company's debt | 5,113,000,000 | 4,696,000,000 | ||||
Excess (shortfall) of fair value of debt over (from) carrying value | $ 158,800,000 | $ 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 | |||
Long-term debt | $ 400,000,000 | $ 400,000,000 | ||||
Proceeds from issuance of debt | $ 400,000,000 | |||||
2.500% Senior Notes due April 2021, effective interest rate of 2.62% [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 | |||
Long-term debt | $ 250,000,000 | $ 250,000,000 | ||||
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 | ||||
Long-term debt | $ 200,000,000 | $ 200,000,000 | ||||
1.300% Senior Notes due January 2017, effective interest rate of 1.43% [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate percentage | 1.30% | 1.30% | ||||
Debt instrument maturity, month and year | 2017-01 | 2017-01 | ||||
Long-term debt | $ 400,000,000 | $ 400,000,000 | ||||
3.125% Senior Notes due April 2026, effective interest rate of 3.28% [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate percentage | 3.125% | 3.125% | 3.125% | |||
Debt instrument maturity, month and year | 2026-04 | 2026-04 | 2026-04 | |||
Long-term debt | $ 400,000,000 | |||||
Proceeds from issuance of debt | $ 400,000,000 | |||||
1.625% Senior Notes due April 2019, effective interest rate of 1.77% [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate percentage | 1.625% | 1.625% | 1.625% | |||
Debt instrument maturity, month and year | 2019-04 | 2019-04 | 2019-04 | |||
Long-term debt | $ 250,000,000 | |||||
Proceeds from issuance of debt | $ 250,000,000 | |||||
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 | $ 3,300,000 | |||||
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. 16, 2016 | |||||
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 ($) | May 08, 2016 | Mar. 22, 2016 | May 07, 2016 | May 09, 2015 | May 07, 2016 | Mar. 21, 2016 |
Stock Repurchase Program [Line Items] | ||||||
Stock repurchased cumulative, shares | 1,400,000 | 140,300,000 | ||||
Repurchased shares of common stock at an aggregate cost | $ 1,083,000 | $ 16,385,000,000 | ||||
Increase in authorization of stock repurchase, value | $ 750,000,000 | |||||
Stock repurchase authorized amended value | $ 17,150,000,000 | $ 16,400,000,000 | ||||
Remaining value authorized for share repurchases | $ 765,100,000 | $ 765,100,000 | ||||
Treasury stock acquired repurchase authorization | From January 1, 1998 to May 7, 2016 the Company has repurchased a total of 140.3 million shares at an aggregate cost of $16.385 billion, including 1,421,011 shares of its common stock at an aggregate cost of $1.083 billion during the thirty-six week period ended May 7, 2016. On March 22, 2016 the Board voted to increase the authorization by $750 million to raise the cumulative share repurchase authorization from $16.4 billion to $17.15 billion. Considering the cumulative repurchases as of May 7, 2016, the Company had $765.1 million remaining under the Board’s authorization to repurchase its common stock. | |||||
Share of treasury stock retired | 2,100,000 | 2,100,000 | ||||
Retained Deficit [Member] | ||||||
Stock Repurchase Program [Line Items] | ||||||
Retirement of treasury shares | $ 1,424,000,000 | $ 1,050,000,000 | ||||
Additional Paid-In Capital [Member] | ||||||
Stock Repurchase Program [Line Items] | ||||||
Retirement of treasury shares | $ 67,000,000 | $ 57,400,000 | ||||
Subsequent Event [Member] | ||||||
Stock Repurchase Program [Line Items] | ||||||
Stock repurchased cumulative, shares | 339,423 | |||||
Repurchased shares of common stock at an aggregate cost | $ 259,000,000 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 07, 2016 | May 09, 2015 | May 07, 2016 | May 09, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ (307,849) | $ (185,586) | $ (249,518) | $ (128,903) |
Other comprehensive income (loss) before reclassifications | 35,140 | (12,887) | (26,343) | (72,077) |
Amounts reclassified from Accumulated other comprehensive loss | 2,732 | 1,291 | 5,884 | 3,798 |
Ending Balance | (269,977) | (197,182) | (269,977) | (197,182) |
Pension Liability [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (68,082) | (61,335) | (70,795) | (63,820) |
Amounts reclassified from Accumulated other comprehensive loss | 1,479 | 1,256 | 4,192 | 3,741 |
Ending Balance | (66,603) | (60,079) | (66,603) | (60,079) |
Foreign Currency [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (231,424) | (116,689) | (171,488) | (57,836) |
Other comprehensive income (loss) before reclassifications | 36,000 | (13,285) | (23,936) | (72,138) |
Ending Balance | (195,424) | (129,974) | (195,424) | (129,974) |
Net Unrealized Gain (Loss) on Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 60 | (12) | (26) | 76 |
Other comprehensive income (loss) before reclassifications | 187 | 121 | 280 | 61 |
Amounts reclassified from Accumulated other comprehensive loss | (28) | 8 | (35) | (20) |
Ending Balance | 219 | 117 | 219 | 117 |
Derivatives [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (8,403) | (7,550) | (7,209) | (7,323) |
Other comprehensive income (loss) before reclassifications | (1,047) | 277 | (2,687) | |
Amounts reclassified from Accumulated other comprehensive loss | 1,281 | 27 | 1,727 | 77 |
Ending Balance | $ (8,169) | $ (7,246) | $ (8,169) | $ (7,246) |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 07, 2016 | May 09, 2015 | May 07, 2016 | May 09, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pension liability adjustments, taxes | $ 945 | $ 807 | $ 3,081 | $ 2,449 |
Unrealized losses on marketable securities, taxes | 86 | 69 | 132 | 22 |
Net derivative activities, taxes | 137 | 264 | 572 | 49 |
Pension Liability [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pension liability adjustments, taxes | 945 | 807 | 3,081 | 2,449 |
Net Unrealized Gain (Loss) on Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized losses on marketable securities, taxes | 15 | 4 | 19 | 11 |
Derivatives [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net derivative activities, taxes | $ 822 | $ 15 | $ 572 | $ 49 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Carrying Amounts of Intangible Assets (Detail) $ in Thousands | 8 Months Ended |
May 07, 2016USD ($) | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | $ 61,546 |
Finite Lived, Accumulated Amortization | (24,773) |
Finite Lived, Net Carrying Amount | 36,773 |
Total intangible assets other than goodwill, Net Carrying Amount | 63,673 |
Technology [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | 10,570 |
Finite Lived, Accumulated Amortization | (7,301) |
Finite Lived, Net Carrying Amount | $ 3,269 |
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 | (883) |
Finite Lived, Net Carrying Amount | 417 |
Customer Relationships [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | 49,676 |
Finite Lived, Accumulated Amortization | (16,589) |
Finite Lived, Net Carrying Amount | $ 33,087 |
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 | May 07, 2016 | May 09, 2015 | May 07, 2016 | May 09, 2015 | Aug. 29, 2015 |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||||||
Amortization expense of intangible assets | $ 2,000 | $ 2,000 | $ 6,100 | $ 6,200 | ||
Purchase of intangibles | 10,000 | 10,000 | ||||
Acquisition of outstanding stock | 75,744 | |||||
Goodwill | $ 391,887 | 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) | 8 Months Ended |
May 07, 2016StoresItem | |
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 | 5,717 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
May 07, 2016 | May 09, 2015 | May 07, 2016 | May 09, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,593,672 | $ 2,493,021 | $ 7,236,907 | $ 6,896,936 |
Gross profit | 1,370,458 | 1,302,789 | 3,813,988 | 3,599,483 |
Operating, selling, general and administrative expenses | (834,084) | (788,840) | (2,456,959) | (2,315,704) |
Interest expense, net | (34,051) | (31,779) | (101,893) | (103,374) |
Income before income taxes | 502,323 | 482,170 | 1,255,136 | 1,180,405 |
Auto Parts Locations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,503,108 | 2,404,469 | 6,978,413 | 6,645,712 |
Gross profit | 1,323,641 | 1,256,753 | 3,677,000 | 3,464,166 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 90,564 | 88,552 | 258,494 | 251,224 |
Gross profit | $ 46,817 | $ 46,036 | $ 136,988 | $ 135,317 |