Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Aug. 26, 2017 | Oct. 23, 2017 | Feb. 11, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 26, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AZO | ||
Entity Registrant Name | AUTOZONE INC | ||
Entity Central Index Key | 866,787 | ||
Current Fiscal Year End Date | --08-27 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 27,492,520 | ||
Entity Public Float | $ 20,972,678,680 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 10,888,676 | $ 10,635,676 | $ 10,187,340 |
Cost of sales, including warehouse and delivery expenses | 5,149,056 | 5,026,940 | 4,860,309 |
Gross profit | 5,739,620 | 5,608,736 | 5,327,031 |
Operating, selling, general and administrative expenses | 3,659,551 | 3,548,341 | 3,373,980 |
Operating profit | 2,080,069 | 2,060,395 | 1,953,051 |
Interest expense, net | 154,580 | 147,681 | 150,439 |
Income before income taxes | 1,925,489 | 1,912,714 | 1,802,612 |
Income tax expense | 644,620 | 671,707 | 642,371 |
Net income | $ 1,280,869 | $ 1,241,007 | $ 1,160,241 |
Weighted average shares for basic earnings per share | 28,430 | 29,889 | 31,560 |
Effect of dilutive stock equivalents | 635 | 599 | 646 |
Weighted average shares for diluted earnings per share | 29,065 | 30,488 | 32,206 |
Basic earnings per share | $ 45.05 | $ 41.52 | $ 36.76 |
Diluted earnings per share | $ 44.07 | $ 40.70 | $ 36.03 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,280,869 | $ 1,241,007 | $ 1,160,241 | |
Other comprehensive income (loss): | ||||
Pension liability adjustments, net of taxes | [1] | 16,514 | (18,095) | (6,975) |
Foreign currency translation adjustments | 35,198 | (39,524) | (113,652) | |
Unrealized (losses) gains on marketable securities, net of taxes | [2] | (131) | 146 | (102) |
Net derivative activity, net of taxes | [3] | 1,391 | (538) | 114 |
Total other comprehensive income (loss) | 52,972 | (58,011) | (120,615) | |
Comprehensive income | $ 1,333,841 | $ 1,182,996 | $ 1,039,626 | |
[1] | Pension liability adjustments are presented net of taxes of $10,542 in 2017, $11,394 in 2016 and $4,638 in 2015 | |||
[2] | Unrealized (losses) gains on marketable securities are presented net of taxes of $69 in 2017, $79 in 2016 and $55 in 2015 | |||
[3] | Net derivative activities are presented net of taxes of $814 in 2017, $315 in 2016 and $68 in 2015 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Pension liability adjustments, taxes | $ 10,542 | $ 11,394 | $ 4,638 |
Unrealized (losses) gains on marketable securities, taxes | 69 | 79 | 55 |
Net derivative activities, taxes | $ 814 | $ 315 | $ 68 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 26, 2017 | Aug. 27, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 293,270 | $ 189,734 |
Accounts receivable | 280,733 | 287,680 |
Merchandise inventories | 3,882,086 | 3,631,916 |
Other current assets | 155,166 | 130,243 |
Total current assets | 4,611,255 | 4,239,573 |
Property and equipment: | ||
Land | 1,056,187 | 998,460 |
Buildings and improvements | 3,423,056 | 3,169,575 |
Equipment | 1,704,653 | 1,550,792 |
Leasehold improvements | 470,998 | 434,615 |
Construction in progress | 218,299 | 176,673 |
Property and equipment | 6,873,193 | 6,330,115 |
Less: Accumulated depreciation and amortization | 2,842,175 | 2,596,861 |
Property and equipment, net | 4,031,018 | 3,733,254 |
Goodwill | 391,887 | 391,887 |
Deferred income taxes | 35,308 | 36,855 |
Other long-term assets | 190,313 | 198,218 |
Other long-term assets, total | 617,508 | 626,960 |
Assets | 9,259,781 | 8,599,787 |
Current liabilities: | ||
Accounts payable | 4,168,940 | 4,095,854 |
Accrued expenses and other | 563,350 | 551,625 |
Income taxes payable | 34,011 | 42,841 |
Total current liabilities | 4,766,301 | 4,690,320 |
Long-term debt | 5,081,238 | 4,924,119 |
Deferred income taxes | 371,111 | 284,500 |
Other long-term liabilities | 469,508 | 488,386 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, authorized 1,000 shares; no shares issued | 0 | 0 |
Common stock, par value $.01 per share, authorized 200,000 shares; 28,735 shares issued and 27,833 shares outstanding in 2017 and 30,329 shares issued and 29,118 shares outstanding in 2016 | 287 | 303 |
Additional paid-in capital | 1,086,671 | 1,054,647 |
Retained deficit | (1,642,387) | (1,602,186) |
Accumulated other comprehensive loss | (254,557) | (307,529) |
Treasury stock, at cost | (618,391) | (932,773) |
Total stockholders' deficit | (1,428,377) | (1,787,538) |
Liabilities and Stockholders' Deficit | $ 9,259,781 | $ 8,599,787 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 26, 2017 | Aug. 27, 2016 |
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 | 28,735,000 | 30,329,000 |
Common stock, shares outstanding | 27,833,000 | 29,118,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 1,280,869 | $ 1,241,007 | $ 1,160,241 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment and intangibles | 323,051 | 297,397 | 269,919 |
Amortization of debt origination fees | 8,369 | 7,980 | 6,230 |
Deferred income taxes | 74,902 | 45,019 | 35,971 |
Share-based compensation expense | 38,244 | 39,825 | 40,995 |
Pension plan contributions | (17,761) | (52,721) | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 7,795 | (41,447) | (36,466) |
Merchandise inventories | (236,807) | (227,518) | (266,776) |
Accounts payable and accrued expenses | 82,614 | 271,198 | 291,520 |
Income taxes payable | (3,659) | 50,122 | 74,487 |
Other, net | 12,995 | 10,198 | (3,103) |
Net cash provided by operating activities | 1,570,612 | 1,641,060 | 1,573,018 |
Cash flows from investing activities: | |||
Capital expenditures | (553,832) | (488,791) | (480,579) |
Acquisition of business, net of cash | 0 | 0 | (75,744) |
Purchase of intangibles | 0 | (10,000) | (10,000) |
Purchase of marketable securities | (85,711) | (130,170) | (49,740) |
Proceeds from sale of marketable securities | 82,993 | 120,472 | 46,411 |
Proceeds from disposal of capital assets and other, net | 2,951 | 2,654 | 1,741 |
Net cash used in investing activities | (553,599) | (505,835) | (567,911) |
Cash flows from financing activities: | |||
Net (payments) proceeds of commercial paper | (42,400) | 149,900 | 153,800 |
Proceeds from issuance of debt | 600,000 | 650,000 | 650,000 |
Repayment of debt | (400,000) | (500,000) | (500,000) |
Net proceeds from sale of common stock | 54,686 | 80,289 | 66,717 |
Purchase of treasury stock | (1,071,649) | (1,452,462) | (1,271,416) |
Payments of capital lease obligations | (47,604) | (36,320) | (34,986) |
Other, net | (7,362) | (7,935) | (8,712) |
Net cash used in financing activities | (914,329) | (1,116,528) | (944,597) |
Effect of exchange rate changes on cash | 852 | (4,272) | (9,686) |
Net increase in cash and cash equivalents | 103,536 | 14,425 | 50,824 |
Cash and cash equivalents at beginning of year | 189,734 | 175,309 | 124,485 |
Cash and cash equivalents at end of year | 293,270 | 189,734 | 175,309 |
Supplemental cash flow information: | |||
Interest paid, net of interest cost capitalized | 135,331 | 136,731 | 137,630 |
Income taxes paid | 579,925 | 582,384 | 539,152 |
Assets acquired through capital lease | $ 84,011 | $ 94,052 | $ 71,047 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] |
Balance at Aug. 30, 2014 | $ (1,621,857) | $ 339 | $ 843,504 | $ (1,529,123) | $ (128,903) | $ (807,674) |
Balance, Shares at Aug. 30, 2014 | 33,858 | |||||
Net income | 1,160,241 | 1,160,241 | ||||
Total other comprehensive income (loss) | (120,615) | (120,615) | ||||
Purchase of treasury stock | (1,271,416) | (1,271,416) | ||||
Retirement of treasury shares | $ (21) | (57,403) | (1,049,856) | 1,107,280 | ||
Retirement of treasury shares, shares | (2,125) | |||||
Issuance of common stock under stock options and stock purchase plans | 66,717 | $ 3 | 66,714 | |||
Issuance of common stock under stock options and stock purchase plans, Shares | 365 | |||||
Share-based compensation expense | 37,645 | 37,645 | ||||
Income tax benefit from exercise of stock options | 47,895 | 47,895 | ||||
Balance at Aug. 29, 2015 | (1,701,390) | $ 321 | 938,355 | (1,418,738) | (249,518) | (971,810) |
Balance, shares at Aug. 29, 2015 | 32,098 | |||||
Net income | 1,241,007 | 1,241,007 | ||||
Total other comprehensive income (loss) | (58,011) | (58,011) | ||||
Purchase of treasury stock | (1,452,462) | (1,452,462) | ||||
Retirement of treasury shares | $ (21) | (67,023) | (1,424,455) | 1,491,499 | ||
Retirement of treasury shares, shares | (2,132) | |||||
Issuance of common stock under stock options and stock purchase plans | 80,289 | $ 3 | 80,286 | |||
Issuance of common stock under stock options and stock purchase plans, Shares | 363 | |||||
Share-based compensation expense | 39,298 | 39,298 | ||||
Income tax benefit from exercise of stock options | 63,731 | 63,731 | ||||
Balance at Aug. 27, 2016 | $ (1,787,538) | $ 303 | 1,054,647 | (1,602,186) | (307,529) | (932,773) |
Balance, shares at Aug. 27, 2016 | 30,329 | 30,329 | ||||
Net income | $ 1,280,869 | 1,280,869 | ||||
Total other comprehensive income (loss) | 52,972 | 52,972 | ||||
Purchase of treasury stock | (1,071,649) | (1,071,649) | ||||
Retirement of treasury shares | $ (18) | (64,943) | (1,321,070) | 1,386,031 | ||
Retirement of treasury shares, shares | (1,804) | |||||
Issuance of common stock under stock options and stock purchase plans | 54,686 | $ 2 | 54,684 | |||
Issuance of common stock under stock options and stock purchase plans, Shares | 210 | |||||
Share-based compensation expense | 42,283 | 42,283 | ||||
Balance at Aug. 26, 2017 | $ (1,428,377) | $ 287 | $ 1,086,671 | $ (1,642,387) | $ (254,557) | $ (618,391) |
Balance, shares at Aug. 26, 2017 | 28,735 | 28,735 |
Consolidated Statements of Sto9
Consolidated Statements of Stockholders' Deficit (Parenthetical) - shares shares in Thousands | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Purchase of treasury stock, shares | 1,495 | 1,903 | 2,010 |
Treasury Stock [Member] | |||
Purchase of treasury stock, shares | 1,495 | 1,903 | 2,010 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Aug. 26, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note A – Significant Accounting Policies Business: Fiscal Year: Basis of Presentation: Use of Estimates: Cash and Cash Equivalents: Cash balances are held in various locations around the world. Cash and cash equivalents of $148.4 million and $78.1 million were held outside of the U.S. as of August 26, 2017, and August 27, 2016, respectively, and were generally utilized to support liquidity needs in foreign operations. The Company intends to continue to permanently reinvest the cash held outside of the U.S. in its foreign operations. Accounts Receivable: Merchandise Inventories: Marketable Securities: Property and Equipment: Impairment of Long-Lived Assets: Goodwill: Intangible Assets: Derivative Instruments and Hedging Activities: AutoZone’s financial market risk results primarily from changes in interest rates. At times, AutoZone reduces its exposure to changes in interest rates by entering into various interest rate hedge instruments such as interest rate swap contracts, treasury lock agreements and forward-starting interest rate swaps. All of the Company’s interest rate hedge instruments are designated as cash flow hedges. Refer to “Note H – Derivative Financial Instruments” for additional disclosures regarding the Company’s derivative instruments and hedging activities. Cash flows related to these instruments designated as qualifying hedges are reflected in the accompanying Consolidated Statements of Cash Flows in the same categories as the cash flows from the items being hedged. Accordingly, cash flows relating to the settlement of interest rate derivatives hedging the forecasted issuance of debt have been reflected upon settlement as a component of financing cash flows. The resulting gain or loss from such settlement is deferred to Accumulated other comprehensive loss and reclassified to interest expense over the term of the underlying debt. This reclassification of the deferred gains and losses impacts the interest expense recognized on the underlying debt that was hedged and is therefore reflected as a component of operating cash flows in periods subsequent to settlement. Foreign Currency: Self-Insurance Reserves: Deferred Rent: Financial Instruments: Income Taxes: The Company recognizes liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as the Company must determine the probability of various possible outcomes. The Company reevaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. The Company classifies interest related to income tax liabilities, and if applicable, penalties, as a component of Income tax expense. The income tax liabilities and accrued interest and penalties that are expected to be payable within one year of the balance sheet date are presented within the Accrued expenses and other caption in the accompanying Consolidated Balance Sheets. The remaining portion of the income tax liabilities and accrued interest and penalties are presented within the Other long-term liabilities caption in the accompanying Consolidated Balance Sheets because payment of cash is not anticipated within one year of the balance sheet date. Refer to “Note D – Income Taxes” for additional disclosures regarding the Company’s income taxes. Sales and Use Taxes: Dividends: Revenue Recognition: A portion of the Company’s transactions include the sale of auto parts that contain a core component. The core component represents the recyclable portion of the auto part. Customers are not charged for the core component of the new part if a used core is returned at the point of sale of the new part; otherwise the Company charges customers a specified amount for the core component. The Company refunds that same amount upon the customer returning a used core to the store at a later date. The Company does not recognize sales or cost of sales for the core component of these transactions when a used part is returned or expected to be returned from the customer. Vendor Allowances and Advertising Costs: Rebates and other miscellaneous incentives are earned based on purchases or product sales and are accrued ratably over the purchase or sale of the related product. These monies are generally recorded as a reduction of merchandise inventories and are recognized as a reduction to cost of sales as the related inventories are sold. For arrangements that provide for reimbursement of specific, incremental, identifiable costs incurred by the Company in selling the vendors’ products, the vendor funds are recorded as a reduction to Operating, selling, general and administrative expenses in the period in which the specific costs were incurred. The Company expenses advertising costs as incurred. Advertising expense, net of vendor promotional funds, was $93.1 million in fiscal 2017, $98.3 million in fiscal 2016, and $98.0 million in fiscal 2015. Vendor promotional funds, which reduced advertising expense, amounted to $28.3 million in fiscal 2017, $21.4 million in fiscal 2016, and $22.0 million in fiscal 2015. Cost of Sales and Operating, Selling, General and Administrative Expenses: Cost of Sales • Total cost of merchandise sold, including: • Freight expenses associated with moving merchandise inventories from the Company’s vendors to the distribution centers; • Vendor allowances that are not reimbursements for specific, incremental and identifiable costs • Costs associated with operating the Company’s supply chain, including payroll and benefit costs, warehouse occupancy costs, transportation costs and depreciation; and • Inventory shrinkage Operating, Selling, General and Administrative Expenses • Payroll and benefit costs for store, field leadership and store support employees; • Occupancy costs of store and store support facilities; • Depreciation and amortization related to store and store support assets; • Transportation costs associated with field leadership, commercial sales force and hub deliveries; • Advertising; • Self insurance costs; and • Other administrative costs, such as credit card transaction fees, legal costs, supplies, and travel and lodging Warranty Costs: Shipping and Handling Costs: Pre-opening Expenses: Earnings per Share: Share-Based Payments: Risk and Uncertainties: Recently Adopted Accounting Pronouncements: In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-09, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 2015-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Recently Issued Accounting Pronouncements: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) functional implementation team to evaluate and identify the impact of ASU 2016-02 In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update) In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Revenue from Contracts with Customers In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Aug. 26, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Note B – Share-Based Payments Total share-based compensation expense (a component of Operating, selling, general and administrative expenses) was $38.2 million for fiscal 2017, $39.8 million for fiscal 2016, and $41.0 million for fiscal 2015. As of August 26, 2017, share-based compensation expense for unvested awards not yet recognized in earnings is $37.9 million and will be recognized over a weighted average period of 1.98 years. As a result of the adoption of the new accounting guidance for share-based payments, cash flows related to tax deductions in excess of recognized compensation cost are classified as operating cash flows for each period presented. Retrospective application of the cash flow presentation resulted in increases to both net cash provided by operations and net cash required for financing activities of $63.7 million and $47.9 million for fiscal 2016 and 2015, respectively. On December 15, 2010, the Company’s stockholders approved the 2011 Equity Incentive Award Plan (the “2011 Plan”), allowing the Company to provide equity-based compensation to non-employee directors and employees for their service to AutoZone or its subsidiaries or affiliates. Prior to the Company’s adoption of the 2011 Plan, equity-based compensation was provided to employees under the 2006 Stock Option Plan and to non-employee directors under the 2003 Director Compensation Plan (the “2003 Comp Plan”) and the 2003 Director Stock Option Plan (the “2003 Option Plan”). During 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. The Company grants options to purchase common stock to certain of its employees under its plan at prices equal to the market value of the stock on the date of grant. Options have a term of 10 years or 10 years and one day from grant date. Employee options generally vest in equal annual installments on the first, second, third and fourth anniversaries of the grant date and generally have 30 or 90 days after the service relationship ends, or one year after death, to exercise all vested options. The fair value of each option grant is separately estimated for each vesting date. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the award and each vesting date. In addition to the 2011 Plan, on December 15, 2010, the Company adopted the 2011 Director Compensation Program (the “2011 Program”), which stated that non-employee directors would receive their compensation in awards of restricted stock units under the 2011 Plan. Under the 2011 Program, restricted stock units are granted the first day of each calendar quarter. The number of restricted stock units granted each quarter is determined by dividing one-fourth of the amount of the annual retainer by the fair market value of the shares of common stock as of the grant date. The restricted stock units are fully vested on the date they are issued and are paid in shares of the Company’s common stock subsequent to the non-employee director ceasing to be a member of the Board. The 2011 Program replaced the 2003 Comp Plan and the 2003 Option Plan. Under the 2003 Comp Plan, non-employee directors could receive no more than one-half of their director fees immediately in cash, and the remainder of the fees was required to be taken in common stock or stock appreciation rights. The director had the option to elect to receive up to 100% of the fees in stock or defer all or part of the fees in units with value equivalent to the value of shares of common stock as of the grant date. At August 26, 2017, the Company had $9.5 million accrued related to 17,990 outstanding units issued under the 2003 Comp Plan and prior plans, and there was $13.6 million accrued related to 17,990 outstanding units issued as of August 27, 2016. No additional shares of stock or units will be issued in future years under the 2003 Comp Plan. Under the 2003 Option Plan, each non-employee director received an option grant on January 1 of each year, and each new non-employee director received an option to purchase 3,000 shares upon election to the Board, plus a portion of the annual directors’ option grant prorated for the portion of the year actually served. These stock option grants were made at the fair market value as of the grant date and generally vested three years from the grant date. There were 19,000 and 24,000 outstanding options under the 2003 Option Plan as of August 26, 2017 and August 27, 2016, respectively. No additional shares of stock will be issued in future years under the 2003 Option Plan. During the second quarter of fiscal 2014, the Company adopted the 2014 Director Compensation Program (the “Program”), which states that non-employee directors will receive their compensation in awards of restricted stock units under the 2011 Equity Incentive Award Plan, with an option for a certain portion of a director’s compensation to be paid in cash at the non-employee director’s election. The Program replaces the 2011 Director Compensation Program. Under the Program, restricted stock units are granted January 1 of each year (the “Grant Date”). The number of restricted stock units is determined by dividing the amount of the annual retainer by the fair market value of the shares of common stock as of the Grant Date. The restricted stock units are fully vested on January 1 of each year and are paid in shares of the Company’s common stock on the earlier to occur of the fifth anniversary of the Grant Date or the date the non-employee director ceases to be a member of the Board (“Separation from Service”). Non-employee directors may elect to defer receipt of the restricted stock units until their Separation from Service. The cash portion of the award, if elected, is paid ratably over the remaining calendar quarters. The Company has estimated the fair value of all stock option awards as of the date of the grant by applying the Black-Scholes-Merton multiple-option pricing valuation model. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. The following table presents the weighted average for key assumptions used in determining the fair value of options granted and the related share-based compensation expense: Year Ended August 26, August 27, August 29, Expected price volatility 18% 18% 20% Risk-free interest rates 1.2% 1.5% 1.4% Weighted average expected lives (in years) 5.1 5.1 5.1 Forfeiture rate 10% 10% 9% Dividend yield 0% 0% 0% The following methodologies were applied in developing the assumptions used in determining the fair value of options granted: Expected price volatility Risk-free interest rate Expected lives Forfeiture rate Dividend yield The weighted average grant date fair value per share of options granted was $139.80 during fiscal 2017, $156.20 during fiscal 2016, and $106.27 during fiscal 2015. The intrinsic value of options exercised was $93.9 million in fiscal 2017, $178.0 million in fiscal 2016, and $154.8 million in fiscal 2015. The total fair value of options vested was $34.7 million in fiscal 2017, $32.2 million in fiscal 2016, and $30.6 million in fiscal 2015. The Company generally issues new shares when options are exercised. The following table summarizes information about stock option activity for the year ended August 26, 2017: Number of Shares Weighted Average Exercise Weighted- (in years) Aggregate Intrinsic (in thousands) Outstanding – August 27, 2016 1,759,408 $ 428.72 Granted 290,805 744.80 Exercised (207,069 ) 263.02 Cancelled (45,089 ) 657.78 Outstanding – August 26, 2017 1,798,055 493.18 6.17 $ 199,752 Exercisable 1,041,933 362.38 4.76 189,790 Expected to vest 680,510 673.42 8.10 8,966 Available for future grants 898,992 The Company recognized $1.8 million in expense related to the discount on the selling of shares to employees and executives under various share purchase plans in fiscal 2017, $2.0 million in fiscal 2016 and $2.1 million in fiscal 2015. The Sixth Amended and Restated AutoZone, Inc. Employee Stock Purchase Plan (the “Employee Plan”), which is qualified under Section 423 of the Internal Revenue Code, permits all eligible employees to purchase AutoZone’s common stock at 85% of the lower of the market price of the common stock on the first day or last day of each calendar quarter through payroll deductions. Maximum permitted annual purchases are $15,000 per employee or 10 percent of compensation, whichever is less. Under the Employee Plan, 14,205 shares were sold to employees in fiscal 2017, 12,662 shares were sold to employees in fiscal 2016, and 14,222 shares were sold to employees in fiscal 2015. The Company repurchased 12,455 shares at market value in fiscal 2017, 12,460 shares in fiscal 2016 and 15,594 shares in fiscal 2015 from employees electing to sell their stock. Issuances of shares under the Employee Plan are netted against repurchases and such repurchases are not included in share repurchases disclosed in “Note K – Stock Repurchase Program.” At August 26, 2017, 178,300 shares of common stock were reserved for future issuance under the Employee Plan. Once executives have reached the maximum purchases under the Employee Plan, the Fifth Amended and Restated Executive Stock Purchase Plan (the “Executive Plan”) permits all eligible executives to purchase AutoZone’s common stock up to 25 percent of his or her annual salary and bonus. Purchases under the Executive Plan were 1,865 shares in fiscal 2017, 1,943 shares in fiscal 2016 and 2,229 shares in fiscal 2015. At August 26, 2017, 239,888 shares of common stock were reserved for future issuance under the Executive Plan. |
Accrued Expenses and Other
Accrued Expenses and Other | 12 Months Ended |
Aug. 26, 2017 | |
Text Block [Abstract] | |
Accrued Expenses and Other | Note C – Accrued Expenses and Other Accrued expenses and other consisted of the following: (in thousands) August 26, August 27, Accrued compensation, related payroll taxes and benefits $ 181,591 $ 180,012 Property, sales, and other taxes 98,829 95,293 Medical and casualty insurance claims (current portion) 84,756 78,458 Capital lease obligations 48,134 44,834 Accrued interest 41,047 34,179 Accrued gift cards 24,192 24,129 Accrued sales and warranty returns 19,520 19,527 Other 65,281 75,193 $ 563,350 $ 551,625 The Company retains a significant portion of the insurance risks associated with workers’ compensation, employee health, general, products liability, property and vehicle insurance. A portion of these self-insured losses is managed through a wholly owned insurance captive. The Company maintains certain levels for stop-loss coverage for each self-insured plan in order to limit its liability for large claims. The limits are per claim and are $1.5 million for workers’ compensation, $2.0 million for vehicles, $21.5 million for property, $0.7 million for employee health, and $1.0 million for general and products liability. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 26, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note D – Income Taxes The components of income from continuing operations before income taxes are as follows: Year Ended (in thousands) August 26, August 27, August 29, Domestic $ 1,737,401 $ 1,737,727 $ 1,676,640 International 188,088 174,987 125,972 $ 1,925,489 $ 1,912,714 $ 1,802,612 The provision for income tax expense consisted of the following: Year Ended (in thousands) August 26, August 27, August 29, Current: Federal $ 487,492 $ 534,621 $ 522,073 State 31,733 39,223 41,921 International 50,493 52,844 42,406 569,718 626,688 606,400 Deferred: Federal 72,208 48,509 38,299 State 7,769 9,453 941 International (5,075 ) (12,943 ) (3,269 ) 74,902 45,019 35,971 Income tax expense $ 644,620 $ 671,707 $ 642,371 A reconciliation of the provision for income taxes to the amount computed by applying the federal statutory tax rate of 35% to income before income taxes is as follows: Year Ended (in thousands) August 26, August 27, August 29, Federal tax at statutory U.S. income tax rate 35.0% 35.0% 35.0% State income taxes, net 1.3% 1.6% 1.5% Other (2.8% ) (1.5% ) (0.9% ) Effective tax rate 33.5% 35.1% 35.6% Significant components of the Company’s deferred tax assets and liabilities were as follows: (in thousands) August 26, August 27, Deferred tax assets: Net operating loss and credit carryforwards $ 48,062 $ 50,859 Accrued benefits 96,664 93,212 Other 56,052 68,600 Total deferred tax assets 200,778 212,671 Less: Valuation allowances (13,501 ) (13,338 ) Net deferred tax asset 187,277 199,333 Deferred tax liabilities: Property and equipment (117,580 ) (93,943 ) Inventory (333,422 ) (315,563 ) Prepaid Expenses (60,920 ) (27,395 ) Other (11,158 ) (10,077 ) Total deferred tax liabilities (523,080 ) (446,978 ) Net deferred tax liability $ (335,803 ) $ (247,645 ) Deferred taxes are not provided for temporary differences of approximately $712.6 million at August 26, 2017, and $572.0 million at August 27, 2016, representing earnings of non-U.S. subsidiaries that are intended to be permanently reinvested. If a deferred tax liability associated with these undistributed earnings had been recorded it would have been approximately $37.5 million and $35.0 million at August 26, 2017 and August 27, 2016, respectively. At August 26, 2017 and August 27, 2016, the Company had deferred tax assets of $30.8 million and $25.2 million, respectively, from net operating loss (“NOL”) carryforwards available to reduce future taxable income totaling approximately $198.2 million and $122.0 million, respectively. Certain NOLs have no expiration date and others will expire, if not utilized, in various years from fiscal 2018 through 2037. At August 26, 2017 and August 27, 2016, the Company had deferred tax assets for income tax credit carryforwards of $17.2 million and $25.7 million, respectively. Income tax credit carryforwards will expire, if not utilized, in various years from fiscal 2023 through 2027. At August 26, 2017 and August 27, 2016, the Company had a valuation allowance of $13.5 million and $13.3 million, respectively, on deferred tax assets associated with NOL and tax credit carryforwards for which management has determined it is more likely than not that the deferred tax asset will not be realized. Management believes it is more likely than not that the remaining deferred tax assets will be fully realized. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in thousands) August 26, August 27, Beginning balance $ 27,726 $ 28,434 Additions based on tax positions related to the current year 7,089 7,172 Additions for tax positions of prior years 278 95 Reductions for tax positions of prior years (6,954 ) (2,405 ) Reductions due to settlements (1,964 ) (858 ) Reductions due to statute of limitations (3,974 ) (4,712 ) Ending balance $ 22,201 $ 27,726 Included in the August 26, 2017 and the August 27, 2016 balances are $9.9 million and $15.5 million, respectively, of unrecognized tax benefits that, if recognized, would reduce the Company’s effective tax rate. The Company accrues interest on unrecognized tax benefits as a component of income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense. The Company had $1.2 million and $2.8 million accrued for the payment of interest and penalties associated with unrecognized tax benefits at August 26, 2017 and August 27, 2016, respectively. The Company files U.S. federal, U.S. state and local, and international income tax returns. With few exceptions, the Company is no longer subject to state and local or Non-U.S. examinations by tax authorities for fiscal year 2013 and prior. The Company is typically engaged in various tax examinations at any given time by U.S. federal, U.S. state and local, and Non-U.S. taxing jurisidictions. As of August 26, 2017, the Company estimates that the amount of unrecognized tax benefits could be reduced by approximately $2.3 million over the next twelve months as a result of tax audit settlements. While the Company believes that it has adequately accrued for possible audit adjustments, the final resolution of these examinations cannot be determined at this time and could result in final settlements that differ from current estimates. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Aug. 26, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note E – Fair Value Measurements The Company has adopted ASC Topic 820, Fair Value Measurement 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: August 26, 2017 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 18,453 $ 120 $ — $ 18,573 Other long-term assets 53,319 28,981 — 82,300 $ 71,772 $ 29,101 $ — $ 100,873 August 27, 2016 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 7,326 $ — $ — $ 7,326 Other long-term assets 65,350 25,675 — 91,025 $ 72,676 $ 25,675 $ — $ 98,351 At August 26, 2017, the fair value measurement amounts for assets and liabilities recorded in the accompanying Consolidated Balance Sheet consisted of short-term marketable securities of $18.6 million, which are included within Other current assets and long-term marketable securities of $82.3 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. A discussion on how the Company’s cash flow hedges are valued is included in “Note H – Derivative Financial Instruments,” while the fair value of the Company’s pension plan assets are disclosed in “Note L – Pension and Savings Plans.” 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 fiscal 2017 and fiscal 2016, 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. The fair value of the Company’s debt is disclosed in “Note I – Financing.” |
Marketable Securities
Marketable Securities | 12 Months Ended |
Aug. 26, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Note F – 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: August 26, 2017 (in thousands) Amortized Basis Gross Gross Fair Value Corporate securities $ 39,917 $ 73 $ (13 ) $ 39,977 Government bonds 31,076 49 (74 ) 31,051 Mortgage-backed securities 4,850 2 (42 ) 4,810 Asset-backed securities and other 25,042 28 (35 ) 25,035 $ 100,885 $ 152 $ (164 ) $ 100,873 August 27, 2016 (in thousands) Amortized Basis Gross Gross Fair Value Corporate securities $ 37,789 $ 198 $ (6 ) $ 37,981 Government bonds 33,497 24 (35 ) 33,486 Mortgage-backed securities 6,865 18 (29 ) 6,854 Asset-backed securities and other 20,015 26 (11 ) 20,030 $ 98,166 $ 266 $ (81 ) $ 98,351 The debt securities held at August 26, 2017, 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 fiscal 2017, 2016 or 2015. The Company holds 51 securities that are in an unrealized loss position of approximately $164 thousand at August 26, 2017. 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 its intent and ability to hold the investments until maturity or until recovery of fair value. Included above in total marketable securities are $85.4 million and $61.8 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 as of August 26, 2017 and August 27, 2016, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Aug. 26, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note G – 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 (loss) income before reclassifications (24,542 ) (39,524 ) 206 (2,687 ) (66,547 ) Amounts reclassified from Accumulated other comprehensive loss (1) 6,447 (2) — (60 ) (4) 2,149 (5) 8,536 Balance at August 27, 2016 (88,890 ) (211,012 ) 120 (7,747 ) (307,529 ) Other comprehensive (loss) income before reclassifications 8,046 35,198 (60 ) — 43,184 Amounts reclassified from Accumulated other comprehensive loss (1) 8,468 (2) — (71 ) (4) 1,391 (5) 9,788 Balance at August 26, 2017 $ (72,376 ) $ (175,814 ) $ (11 ) $ (6,356 ) $ (254,557 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Represents amortization of pension liability adjustments, net of taxes of $5,406 in fiscal 2017 and $4,059 in fiscal 2016, which is recorded in Operating, selling, general and administrative expenses on the Consolidated Statements of Income. See “Note L – 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 $38 in fiscal 2017 and $33 in fiscal 2016, which is recorded in Operating, selling, general, and administrative expenses on the Consolidated Statements of Income. See “Note F – Marketable Securities” for further discussion. (5) Represents gains and losses on derivatives, net of taxes of $814 in fiscal 2017 and $315 in fiscal 2016, which is recorded in Interest expense, net, on the Consolidated Statements of Income. See “Note H – Derivative Financial Instruments” for further discussion. The 2017 pension actuarial gain of $8.0 million and the 2016 pension actuarial loss of $24.5 million include amounts not yet reflected in periodic pension costs primarily driven by changes in the discount rate. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Aug. 26, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note H – Derivative Financial Instruments The Company periodically uses derivatives to hedge exposures to interest rates. The Company does not hold or issue financial instruments for trading purposes. For transactions that meet the hedge accounting criteria, the Company formally designates and documents the instrument as a hedge at inception and quarterly thereafter assesses the hedges to ensure they are effective in offsetting changes in the cash flows of the underlying exposures. Derivatives are recorded in the Company’s Consolidated Balance Sheet at fair value, determined using available market information or other appropriate valuation methodologies. In accordance with ASC Topic 815, Derivatives and Hedging At August 26, 2017, the Company had $10.1 million recorded in Accumulated other comprehensive loss related to net 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 fiscal year ended August 26, 2017, the Company reclassified $2.2 million of net losses from Accumulated other comprehensive loss to Interest expense. In the fiscal year ended August 27, 2016, the Company reclassified $1.8 million 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. |
Financing
Financing | 12 Months Ended |
Aug. 26, 2017 | |
Debt Disclosure [Abstract] | |
Financing | Note I – Financing The Company’s debt consisted of the following: (in thousands) August 26, 2017 August 27, 2016 1.300% Senior Notes due January 2017, effective interest rate of 1.43% $ — $ 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% 250,000 250,000 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% 400,000 400,000 3.750% Senior Notes due June 2027, effective interest rate of 3.83% 600,000 — Commercial paper, weighted average interest rate of 1.44% and 0.72% at August 26, 2017 and August 27, 2016, respectively 1,155,100 1,197,500 Total debt before discounts and debt issuance costs 5,105,100 4,947,500 Less: Discounts and debt issuance costs 23,862 23,381 Long-term debt $ 5,081,238 $ 4,924,119 As of August 26, 2017, the commercial paper borrowings and the $250 million 7.125% Senior Notes due August 2018 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 August 26, 2017, the Company had $1.997 billion of availability under its $2.0 billion revolving credit facilities, which would allow it to replace these short-term obligations with long-term financing facilities. On November 18, 2016, the Company amended and restated its existing Multi-Year revolving credit facility (the “New Multi-Year Revolving Credit Agreement”) by increasing the committed credit amount from $1.25 billion to $1.6 billion, 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 may be increased to $2.1 billion prior to the maturity date at the Company’s election and subject to bank credit capacity and approval, and may include up to $200 million in letters of credit. Under the revolving 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 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 on November 18, 2021, but the Company may, by notice to the administrative agent, make up to two requests to extend the termination date for an additional period of one year. The first such request must be made no earlier than 60 days, and no later than 45 days, prior to November 18, 2017, while the second request must be made no earlier than 60 days, and no later than 45 days, prior to November 18, 2018. On November 18, 2016, the Company amended and restated its existing 364-Day revolving credit facility (the “New 364-Day Credit Agreement”) by decreasing the committed credit amount from $500 million to $400 million, extending the expiration date by one year and renegotiating other terms and conditions. The credit facility is available to primarily support commercial paper borrowings and other short-term unsecured bank loans. 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 New 364-Day Credit Agreement expires on November 17, 2017, but the Company may request an extension of the termination date for 364 days no later than 45 days prior to November 17, 2017, subject to bank approval. In addition, at least 15 days prior to November 17, 2017, 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. The revolving credit facility agreements require that the Company’s consolidated interest coverage ratio as of the last day of each quarter shall be no less than 2.5:1. This ratio is defined as the ratio of (i) consolidated earnings before interest, taxes and rents to (ii) consolidated interest expense plus consolidated rents. The Company’s consolidated interest coverage ratio as of August 26, 2017 was 6.0:1. As of August 26, 2017, the Company had no outstanding borrowings under each of the revolving credit facilities, and $3.3 million of outstanding letters of credit under the New Multi-Year Revolving Credit Agreement. The Company also maintains a letter of credit facility that allows it to request the participating bank to issue letters of credit on its behalf up to an aggregate amount of $75 million. The letter of credit facility is in addition to the letters of credit that may be issued under the New Multi-Year Revolving Credit Agreement. As of August 26, 2017, the Company had $74.9 million in letters of credit outstanding under the letter of credit facility. In addition to the outstanding letters of credit issued under the committed facilities discussed above, the Company had $10.4 million in letters of credit outstanding as of August 26, 2017. These letters of credit have various maturity dates and were issued on an uncommitted basis. On April 18, 2017, the Company issued $600 million in 3.750% Senior Notes due June 2027 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 issuance were used for general corporate purposes. On April 21, 2016, the Company issued $400 million in 3.125% Senior Notes due April 2026 and $250 million in 1.625% Senior Notes due April 2019 under its 2015 Shelf Registration. Proceeds from the debt issuances were used for general corporate purposes. On April 29, 2015, we issued $400 million in 3.250% Senior 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. All senior notes are subject to an interest rate adjustment if the debt ratings assigned to the senior notes are downgraded (as defined in the agreements). Further, the senior notes contain a provision that repayment of the senior notes may be accelerated if the Company experiences a change in control (as defined in the agreements). The Company’s borrowings under its senior notes contain minimal covenants, primarily restrictions on liens. Under its revolving credit facilities, covenants include restrictions on liens, a maximum debt to earnings ratio, a minimum fixed charge coverage ratio and a change of control provision that may require acceleration of the repayment obligations under certain circumstances. All of the repayment obligations under its borrowing arrangements may be accelerated and come due prior to the scheduled payment date if covenants are breached or an event of default occurs. As of August 26, 2017, the Company was in compliance with all covenants related to its borrowing arrangements. All of the Company’s debt is unsecured. Scheduled maturities of debt are as follows: (in thousands) Scheduled 2018 $ 1,405,100 2019 250,000 2020 — 2021 750,000 2022 500,000 Thereafter 2,200,000 Subtotal 5,105,100 Discount and debt issuance costs 23,862 Total Debt $ 5,081,238 The fair value of the Company’s debt was estimated at $5.171 billion as of August 26, 2017, and $5.117 billion as of August 27, 2016, 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 $90.3 million at August 26, 2017 and $192.7 million at August 27, 2016, which reflect their face amount, adjusted for any unamortized debt issuance costs and discounts. |
Interest Expense
Interest Expense | 12 Months Ended |
Aug. 26, 2017 | |
Banking and Thrift, Interest [Abstract] | |
Interest Expense | Note J – Interest Expense Net interest expense consisted of the following: Year Ended (in thousands) August 26, August 27, August 29, Interest expense $ 159,329 $ 150,961 $ 153,007 Interest income (3,502 ) (2,371 ) (1,605 ) Capitalized interest (1,247 ) (909 ) (963 ) $ 154,580 $ 147,681 $ 150,439 |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Aug. 26, 2017 | |
Equity [Abstract] | |
Stock Repurchase Program | Note K – Stock Repurchase Program During 1998, the Company announced a program permitting the Company to repurchase a portion of its outstanding shares not to exceed a dollar maximum established by the Board. The program was last amended on March 21, 2017 to increase the repurchase authorization to $18.65 billion from $17.9 billion. From January 1998 to August 26, 2017, the Company has repurchased a total of 142.3 million shares at an aggregate cost of $17.826 billion. The Company’s share repurchase activity consisted of the following: Year Ended (in thousands) August 26, August 27, August 29, Amount $ 1,071,649 $ 1,452,462 $ 1,271,416 Shares 1,495 1,903 2,010 During fiscal year 2017, the Company retired 1.8 million shares of treasury stock which had previously been repurchased under the Company’s share repurchase program. The retirement increased Retained deficit by $1.321 billion and decreased Additional paid-in capital by $64.9 million. During the comparable prior year period, the Company retired 2.1 million shares of treasury stock, which increased Retained deficit by $1.424 billion and decreased Additional paid-in capital by $67.0 million. |
Pension and Savings Plans
Pension and Savings Plans | 12 Months Ended |
Aug. 26, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Savings Plans | Note L – Pension and Savings Plans Prior to January 1, 2003, substantially all full-time employees were covered by a defined benefit pension plan. The benefits under the plan were based on years of service and the employee’s highest consecutive five-year average compensation. On January 1, 2003, the plan was frozen. Accordingly, pension plan participants will earn no new benefits under the plan formula and no new participants will join the pension plan. On January 1, 2003, the Company’s supplemental defined benefit pension plan for certain highly compensated employees was also frozen. Accordingly, plan participants will earn no new benefits under the plan formula and no new participants will join the pension plan. The Company has recognized the unfunded status of the defined pension plans in its Consolidated Balance Sheets, which represents the difference between the fair value of pension plan assets and the projected benefit obligations of its defined benefit pension plans. The net unrecognized actuarial losses and unrecognized prior service costs are recorded in Accumulated other comprehensive loss. These amounts will be subsequently recognized as net periodic benefit cost pursuant to the Company’s historical accounting policy for amortizing such amounts. Further, actuarial gains and losses that arise in subsequent periods and are not recognized as net periodic benefit cost in the same periods will be recognized as a component of other comprehensive income. Those amounts will be subsequently recognized as a component of net periodic benefit cost on the same basis as the amounts previously recognized in Accumulated other comprehensive loss. The Company’s investment strategy for pension plan assets is to utilize a diversified mix of domestic and international equity and fixed income portfolios to earn a long-term investment return that meets the Company’s pension plan obligations. The pension plan assets are invested primarily in listed securities, and the pension plans may hold only a minimal investment in AutoZone common stock that is entirely at the discretion of third-party pension fund investment managers. The Company’s largest holding classes, fixed income bonds and U.S. equities, are invested with a fund manager that holds diversified portfolios. Accordingly, the Company does not have any significant concentrations of risk in particular securities, issuers, sectors, industries or geographic regions. Alternative investment strategies were fully liquidated during fiscal 2016. The Company’s investment managers are prohibited from using derivatives for speculative purposes and are not permitted to use derivatives to leverage a portfolio. The following is a description of the valuation methodologies used for the Company’s investments measured at fair value: U.S., international, emerging, and high yield equities – Alternative investments – Fixed income securities – Cash and cash equivalents – The fair values of investments by level and asset category and the weighted-average asset allocations of the Company’s pension plans at the measurement date are presented in the following table: August 26, 2017 Fair Asset Allocation Fair Value Hierarchy (in thousands) Value Actual Target Level 1 Level 2 Level 3 U.S. equities $ 50,125 15.8 % 17.0 % $ — $ 50,125 $ — International equities 33,696 10.7 11.0 — 33,696 — Emerging equities 19,027 6.0 6.0 — 19,027 — High yield securities 17,063 5.4 6.0 — 17,063 — Alternative investments — — — — — — Fixed income securities 178,650 56.5 60.0 — 178,650 — Cash and cash equivalents 17,706 5.6 — — 17,706 — $ 316,267 100.0 % 100.0 % $ — $ 316,267 $ — August 27, 2016 Fair Asset Allocation Fair Value Hierarchy (in thousands) Value Actual Target Level 1 Level 2 Level 3 U.S. equities $ 66,008 22.9 % 26.0 % $ — $ 66,008 $ — International equities 42,023 14.5 17.0 — 42,023 — Emerging equities 22,848 7.9 8.5 — 22,848 — High yield securities 21,445 7.4 8.5 — 21,445 — Alternative investments — — — — — — Fixed income securities 99,336 34.3 40.0 — 99,336 — Cash and cash equivalents 37,726 13.0 — — 37,726 — $ 289,386 100.0 % 100.0 % $ — $ 289,386 $ — The asset allocations in the charts above include $17.5 million and $48.0 million in cash contributions made in the last month prior to the balance sheet date of August 26, 2017, and August 27, 2016, respectively. Subsequent to August 26, 2017, and August 27, 2016, these cash contributions were allocated to the pension plan investments in accordance with the targeted asset allocation. In January 2017, the Company’s Investment Committee approved a revised asset allocation target for the investments held by the pension plan. Based on the revised asset allocation target, the expected long-term rate of return on plan assets changed from 7.0% for the year ended August 26, 2017 to 6.0% for the year ending August 25, 2018. The following table sets forth the plans’ funded status and amounts recognized in the Company’s Consolidated Balance Sheets: (in thousands) August 26, August 27, Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 328,511 $ 296,123 Interest cost 10,335 11,272 Actuarial (gains) losses (8,746 ) 39,842 Benefits paid (15,376 ) (18,726 ) Benefit obligations at end of year $ 314,724 $ 328,511 Change in Plan Assets: Fair value of plan assets at beginning of year $ 289,386 $ 238,755 Actual return on plan assets 24,496 16,636 Employer contributions 17,761 52,721 Benefits paid (15,376 ) (18,726 ) Fair value of plan assets at end of year $ 316,267 $ 289,386 Amount Recognized in the Statement of Financial Position: Current liabilities $ (283 ) $ (276 ) Long-term assets 8,686 — Long-term liabilities (6,860 ) (38,849 ) Net amount recognized $ 1,543 $ (39,125 ) Amount Recognized in Accumulated Other Comprehensive Loss and not yet reflected in Net Periodic Benefit Cost: Net actuarial loss $ (118,889 ) $ (145,948 ) Accumulated other comprehensive loss $ (118,889 ) $ (145,948 ) Amount Recognized in Accumulated Other Comprehensive Loss and not yet reflected in Net Periodic Benefit Cost and expected to be amortized in next year’s Net Periodic Benefit Cost: Net actuarial loss $ (10,736 ) $ (13,874 ) Amount recognized $ (10,736 ) $ (13,874 ) Net periodic benefit expense consisted of the following: Year Ended (in thousands) August 26, August 27, August 29, Interest cost $ 10,335 $ 11,272 $ 12,338 Expected return on plan assets (20,056 ) (16,512 ) (16,281 ) Recognized net actuarial losses 13,873 10,506 8,941 Net periodic benefit expense $ 4,152 $ 5,266 $ 4,998 The blended actuarial assumptions used in determining the projected benefit obligation include the following: Year Ended August 26, August 27, August 29, Discount rate to determine benefit obligation 3.86 % 3.72 % 4.50 % Discount rate to determine net interest cost 3.21 % 3.90 % 4.28 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 7.00 % As the plan benefits are frozen, increases in future compensation levels no longer impact the calculation and there is no service cost. The discount rate to determine the projected benefit obligation is determined as of the measurement date and is based on the calculated yield of a portfolio of high-grade corporate bonds with cash flows that generally match the Company’s expected benefit payments in future years. During fiscal 2016, the Company changed the method used to estimate the interest cost component of net periodic benefit cost. 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 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 benefit cost was a reduction of $1.8 million in fiscal 2016. The Company accounted for this change as a change in accounting estimate and accounted for it prospectively. The expected long-term rate of return on plan assets is based on the historical relationships between the investment classes and the capital markets, updated for current conditions. The Company makes annual contributions in amounts at least equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974. The Company contributed $17.8 million to the plans in fiscal 2017, $52.7 million to the plans in fiscal 2016 and $17.1 million to the plans in fiscal 2015. The Company expects to contribute approximately $20.3 million to the plans in fiscal 2018; 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 or through other plans initiated by management. Based on current assumptions about future events, benefit payments are expected to be paid as follows for each of the following fiscal years. Actual benefit payments may vary significantly from the following estimates: (in thousands) Benefit 2018 $ 13,608 2019 13,139 2020 13,817 2021 14,538 2022 14,917 2023 – 2027 79,742 The Company has a 401(k) plan that covers all domestic employees who meet the plan’s participation requirements. The plan features include Company matching contributions, immediate 100% vesting of Company contributions and a savings option up to 25% of qualified earnings. The Company makes matching contributions, per pay period, up to a specified percentage of employees’ contributions as approved by the Board. The Company made matching contributions to employee accounts in connection with the 401(k) plan of $21.0 million in fiscal 2017, $19.7 million in fiscal 2016, and $17.7 million in fiscal 2015. |
Acquisition
Acquisition | 12 Months Ended |
Aug. 26, 2017 | |
Business Combinations [Abstract] | |
Acquisition | Note M – Acquisition Effective September 27, 2014, the Company acquired the outstanding stock of Interamerican Motor Corporation (“IMC”), the second largest distributor of quality import replacement parts in the United States, for $75.7 million, net of cash. IMC specializes in parts coverage for European and Asian cars. With this acquisition, the Company continues to grow its share in the aftermarket import car parts market. The results of operations from IMC have been included in the Company’s Auto Parts Locations business activities since the date of acquisition. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Aug. 26, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Note N – 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 added through acquisition — — — Goodwill adjustments — — — Net balance as of August 27, 2016 326,703 65,184 391,887 Goodwill added through acquisition — — — Goodwill adjustments — — — Net balance as of August 26, 2017 $ 326,703 $ 65,184 $ 391,887 The Company performs its annual goodwill and intangibles impairment test in the fourth quarter of each fiscal year. In the fourth quarter of fiscal 2017 and 2016, the Company concluded that its goodwill was not impaired. Total accumulated goodwill impairment for both August 26, 2017 and August 27, 2016 is $18.3 million. The carrying amounts of intangible assets are included in Other long-term assets as follows: August 26, 2017 (in thousands) Estimated Life Gross Accumulated Net Amortizing intangible assets: Technology 3-5 years $ 10,570 $ (9,994 ) $ 576 Noncompete agreements 5 years 1,300 (1,223 ) 77 Customer relationships 3-10 years 49,676 (24,730 ) 24,946 $ 61,546 $ (35,947 ) 25,599 Non-amortizing intangible asset: Trade names 26,900 Total intangible assets other than goodwill $ 52,499 August 27, 2016 (in thousands) Estimated Life Gross Accumulated Net Amortizing intangible assets: Technology 3-5 years $ 10,570 $ (7,988 ) $ 2,582 Noncompete agreements 5 years 1,300 (963 ) 337 Customer relationships 3-10 years 49,676 (18,514 ) 31,162 $ 61,546 $ (27,465 ) 34,081 Non-amortizing intangible asset: Trade names 26,900 Total intangible assets other than goodwill $ 60,981 During fiscal 2014, the Company purchased $30.2 million of intangible assets relating to the rights to certain customer relationships and technology assets relating to its ALLDATA operations. Additionally, during fiscal 2016 and 2015, the Company made an installment payment of $10 million in each year related to certain customer relationships purchased during 2014 relating to its ALLDATA operations. As part of its annual impairment test, the Company evaluates the AutoAnything and IMC trade names for impairment in the fourth quarter of each fiscal year. In the fourth quarter of fiscal 2017 and 2016, the Company concluded that AutoAnything’s and IMC’s trade names were not impaired. Trade names at August 26, 2017 and August 27, 2016 reflect a total accumulated impairment of $4.1 million. Amortization expense of intangible assets for the years ended August 26, 2017 and August 27, 2016 was $8.5 million and $8.7 million, respectively. Total future amortization expense for intangible assets that have finite lives, based on the existing intangible assets and their current estimated useful lives as of August 26, 2017, is estimated as follows: (in thousands) Total 2018 $ 6,855 2019 6,203 2020 6,203 2021 3,474 2022 2,030 Thereafter 834 $ 25,599 |
Leases
Leases | 12 Months Ended |
Aug. 26, 2017 | |
Leases [Abstract] | |
Leases | Note O – Leases The Company leases some of its retail stores, distribution centers, facilities, land and equipment, including vehicles. Other than vehicle leases, most of the leases are operating leases, which include renewal options made at the Company’s election and provisions for percentage rent based on sales. Rental expense was $302.9 million in fiscal 2017, $280.5 million in fiscal 2016, and $269.5 million in fiscal 2015. Percentage rentals were insignificant. The Company records rent for all operating leases on a straight-line basis over the lease term, including any reasonably assured renewal periods and the period of time prior to the lease term that the Company is in possession of the leased space for the purpose of installing leasehold improvements. Differences between recorded rent expense and cash payments are recorded as a liability in Accrued expenses and other and Other long-term liabilities in the accompanying Consolidated Balance Sheets, based on the terms of the lease. The deferred rent approximated $130.2 million on August 26, 2017, and $121.7 million on August 27, 2016. The Company has a fleet of vehicles used for delivery to its commercial customers and stores and travel for members of field management. The majority of these vehicles are held under capital leases. At August 26, 2017, the Company had capital lease assets of $152.0 million, net of accumulated amortization of $70.2 million, and capital lease obligations of $150.5 million, of which $48.1 million is classified as Accrued expenses and other as it represents the current portion of these obligations. At August 27, 2016, the Company had capital lease assets of $148.5 million, net of accumulated amortization of $59.5 million, and capital lease obligations of $147.3 million, of which $44.8 million is classified as Accrued expenses and other as it represents the current portion of these obligations. Future minimum annual rental commitments under non-cancelable operating leases and capital leases were as follows at the end of fiscal 2017: (in thousands) Operating Capital 2018 $ 293,826 $ 48,134 2019 284,523 49,808 2020 262,782 36,610 2021 237,241 21,217 2022 213,399 3,307 Thereafter 861,409 — Total minimum payments required $ 2,153,180 159,076 Less: Interest (8,620 ) Present value of minimum capital lease payments $ 150,456 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 26, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note P – Commitments and Contingencies Construction commitments, primarily for new stores and new distribution centers, totaled approximately $69.9 million at August 26, 2017. The Company had $88.6 million in outstanding standby letters of credit and $28.8 million in surety bonds as of August 26, 2017, which all have expiration periods of less than one year. A substantial portion of the outstanding standby letters of credit (which are primarily renewed on an annual basis) and surety bonds are used to cover reimbursement obligations to our workers’ compensation carriers. There are no additional contingent liabilities associated with these instruments as the underlying liabilities are already reflected in the consolidated balance sheet. The standby letters of credit and surety bonds arrangements have automatic renewal clauses. |
Litigation
Litigation | 12 Months Ended |
Aug. 26, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Note Q – 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. In April 2016, the Company received a letter from the California Air Resources Board seeking payment for alleged violations of the California Health and Safety Code related to the sale of certain aftermarket emission parts in the State of California. The Company does not believe that any resolution of the 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, but not limited to, several lawsuits containing class-action allegations in which the plaintiffs are current and former hourly and salaried employees who allege various wage and hour violations and unlawful termination practices. 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 | 12 Months Ended |
Aug. 26, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note R – Segment Reporting Four of the Company’s 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. The Auto Parts Locations segment is a retailer and distributor of automotive parts and accessories through the Company’s 6,029 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. The following table shows segment results for the following fiscal years: Year Ended (in thousands) August 26, August 27, August 29, Net Sales: Auto Parts Locations $ 10,523,272 $ 10,261,112 $ 9,824,876 Other 365,404 374,564 362,464 Total $ 10,888,676 $ 10,635,676 $ 10,187,340 Segment Profit: Auto Parts Locations $ 5,544,494 $ 5,410,477 $ 5,132,624 Other 195,126 198,259 194,407 Gross profit 5,739,620 5,608,736 5,327,031 Operating, selling, general and administrative expenses (3,659,551 ) (3,548,341 ) (3,373,980 ) Interest expense, net (154,580 ) (147,681 ) (150,439 ) Income before income taxes $ 1,925,489 $ 1,912,714 $ 1,802,612 Segment Assets: Auto Parts Locations $ 8,964,371 $ 8,351,883 $ 7,883,720 Other 295,410 247,904 218,629 Total $ 9,259,781 $ 8,599,787 $ 8,102,349 Capital Expenditures: Auto Parts Locations $ 533,304 $ 470,631 $ 464,246 Other 20,528 18,160 16,333 Total $ 553,832 $ 488,791 $ 480,579 Auto Parts Locations Sales by Product Grouping: Failure $ 5,100,702 $ 4,913,423 $ 4,650,271 Maintenance items 3,774,386 3,721,240 3,618,779 Discretionary 1,648,184 1,626,449 1,555,826 Auto Parts Locations net sales $ 10,523,272 $ 10,261,112 $ 9,824,876 |
Quarterly Summary
Quarterly Summary | 12 Months Ended |
Aug. 26, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary | Note S – Quarterly Summary (1) (Unaudited) Twelve Weeks Ended Sixteen Weeks (in thousands, except per share data) November 19, February 11, May 6, 2017 August 26, (2) Net sales $ 2,467,845 $ 2,289,219 $ 2,619,007 $ 3,512,605 Gross profit 1,301,542 1,205,536 1,378,418 1,854,125 Operating profit 458,902 383,969 529,570 707,628 Income before income taxes 425,596 349,771 493,895 656,227 Net income (3) 278,125 237,145 331,700 433,899 Basic earnings per share (3) 9.61 8.28 11.70 15.52 Diluted earnings per share (3) 9.36 8.08 11.44 15.27 Twelve Weeks Ended Sixteen Weeks Ended (in thousands, except per share data) November 21, February 13, May 7, 2016 August 27, (2) Net sales $ 2,386,043 $ 2,257,192 $ 2,593,672 $ 3,398,769 Gross profit 1,252,934 1,190,596 1,370,458 1,794,748 Operating profit 437,995 382,660 536,374 703,366 Income before income taxes 402,985 349,828 502,323 657,577 Net income 258,112 228,613 327,515 426,768 Basic earnings per share 8.46 7.58 10.99 14.58 Diluted earnings per share 8.29 7.43 10.77 14.30 (1) The sum of quarterly amounts may not equal the annual amounts reported due to rounding. In addition, the earnings per share amounts are computed independently for each quarter while the full year is based on the annual weighted average shares outstanding. (2) The fourth quarter for fiscal 2017 and fiscal 2016 are based on a 16-week period. All other quarters presented are based on a 12-week period. (3) As discussed in Note A, the Company adopted the new accounting guidance for shared-based payments on August 28, 2016. These amounts include the impact of the adoption. For the twelve week period ended November 19, 2016, this increased net income by $3.1 million, basic earnings per share by $0.11 and diluted earnings per share by $0.03. For the twelve week period ended February 11, 2017, this increased net income by $12.5 million, basic earnings per share by $0.43 and diluted earnings per share by $0.37. For the twelve week period ended May 6, 2017, this increased net income by $11.4 million, basic earnings per share by $0.40 and diluted earnings per share by $0.32. For the sixteen week period ended August 26, 2017, this increased net income by $4.1 million, basic earnings per share by $0.15 and diluted earnings per share by $0.09. Prior period net income, basic earnings per share and diluted earnings per share amounts were not restated. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Aug. 26, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note T – Subsequent Event Subsequent to August 26, 2017, several storms made landfall and have resulted in extensive damage and flooding in Texas, Florida, Louisiana and Puerto Rico. The damage to the Company’s stores in Texas, Florida and Louisiana did not have a material impact on its consolidated financial statements. A full assessment of the extent of the damage to stores in Puerto Rico is expected to be completed in the weeks ahead. Currently, there is uncertainty as to the magnitude of the losses associated with this event and whether such losses would have a material effect on the Company’s consolidated financial statements. |
Significant Accounting Polici30
Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 26, 2017 | |
Accounting Policies [Abstract] | |
Business | Business: non-automotive non-automotive |
Fiscal Year | Fiscal Year: |
Basis of Presentation | Basis of Presentation: |
Use of Estimates | Use of Estimates: |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash balances are held in various locations around the world. Cash and cash equivalents of $148.4 million and $78.1 million were held outside of the U.S. as of August 26, 2017, and August 27, 2016, respectively, and were generally utilized to support liquidity needs in foreign operations. The Company intends to continue to permanently reinvest the cash held outside of the U.S. in its foreign operations. |
Accounts Receivable | Accounts Receivable: |
Merchandise Inventories | Merchandise Inventories: last-in, first-out |
Marketable Securities | Marketable Securities: available-for-sale. |
Property and Equipment | Property and Equipment: |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: |
Goodwill | Goodwill: |
Intangible Assets | Intangible Assets: non-compete non-amortizing non-amortizing |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities: AutoZone’s financial market risk results primarily from changes in interest rates. At times, AutoZone reduces its exposure to changes in interest rates by entering into various interest rate hedge instruments such as interest rate swap contracts, treasury lock agreements and forward-starting interest rate swaps. All of the Company’s interest rate hedge instruments are designated as cash flow hedges. Refer to “Note H – Derivative Financial Instruments” for additional disclosures regarding the Company’s derivative instruments and hedging activities. Cash flows related to these instruments designated as qualifying hedges are reflected in the accompanying Consolidated Statements of Cash Flows in the same categories as the cash flows from the items being hedged. Accordingly, cash flows relating to the settlement of interest rate derivatives hedging the forecasted issuance of debt have been reflected upon settlement as a component of financing cash flows. The resulting gain or loss from such settlement is deferred to Accumulated other comprehensive loss and reclassified to interest expense over the term of the underlying debt. This reclassification of the deferred gains and losses impacts the interest expense recognized on the underlying debt that was hedged and is therefore reflected as a component of operating cash flows in periods subsequent to settlement. |
Foreign Currency | Foreign Currency: |
Self-Insurance Reserves | Self-Insurance Reserves: |
Deferred Rent | Deferred Rent: |
Financial Instruments | Financial Instruments: |
Income Taxes | Income Taxes: The Company recognizes liabilities for uncertain income tax positions based on a two-step The Company classifies interest related to income tax liabilities, and if applicable, penalties, as a component of Income tax expense. The income tax liabilities and accrued interest and penalties that are expected to be payable within one year of the balance sheet date are presented within the Accrued expenses and other caption in the accompanying Consolidated Balance Sheets. The remaining portion of the income tax liabilities and accrued interest and penalties are presented within the Other long-term liabilities caption in the accompanying Consolidated Balance Sheets because payment of cash is not anticipated within one year of the balance sheet date. Refer to “Note D – Income Taxes” for additional disclosures regarding the Company’s income taxes. |
Sales and Use Taxes | Sales and Use Taxes: |
Dividends | Dividends: |
Revenue Recognition | Revenue Recognition: A portion of the Company’s transactions include the sale of auto parts that contain a core component. The core component represents the recyclable portion of the auto part. Customers are not charged for the core component of the new part if a used core is returned at the point of sale of the new part; otherwise the Company charges customers a specified amount for the core component. The Company refunds that same amount upon the customer returning a used core to the store at a later date. The Company does not recognize sales or cost of sales for the core component of these transactions when a used part is returned or expected to be returned from the customer. |
Vendor Allowances and Advertising Costs | Vendor Allowances and Advertising Costs: Rebates and other miscellaneous incentives are earned based on purchases or product sales and are accrued ratably over the purchase or sale of the related product. These monies are generally recorded as a reduction of merchandise inventories and are recognized as a reduction to cost of sales as the related inventories are sold. For arrangements that provide for reimbursement of specific, incremental, identifiable costs incurred by the Company in selling the vendors’ products, the vendor funds are recorded as a reduction to Operating, selling, general and administrative expenses in the period in which the specific costs were incurred. The Company expenses advertising costs as incurred. Advertising expense, net of vendor promotional funds, was $93.1 million in fiscal 2017, $98.3 million in fiscal 2016, and $98.0 million in fiscal 2015. Vendor promotional funds, which reduced advertising expense, amounted to $28.3 million in fiscal 2017, $21.4 million in fiscal 2016, and $22.0 million in fiscal 2015. |
Cost of Sales and Operating, Selling, General and Administrative Expenses | Cost of Sales and Operating, Selling, General and Administrative Expenses: Cost of Sales • Total cost of merchandise sold, including: • Freight expenses associated with moving merchandise inventories from the Company’s vendors to the distribution centers; • Vendor allowances that are not reimbursements for specific, incremental and identifiable costs • Costs associated with operating the Company’s supply chain, including payroll and benefit costs, warehouse occupancy costs, transportation costs and depreciation; and • Inventory shrinkage Operating, Selling, General and Administrative Expenses • Payroll and benefit costs for store, field leadership and store support employees; • Occupancy costs of store and store support facilities; • Depreciation and amortization related to store and store support assets; • Transportation costs associated with field leadership, commercial sales force and hub deliveries; • Advertising; • Self insurance costs; and • Other administrative costs, such as credit card transaction fees, legal costs, supplies, and travel and lodging |
Warranty Costs | Warranty Costs: |
Shipping and Handling Costs | Shipping and Handling Costs: |
Pre-opening Expenses | Pre-opening Pre-opening |
Earnings Per Share | Earnings per Share: |
Share-Based Payments | Share-Based Payments: |
Risk and Uncertainties | Risk and Uncertainties: |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-09, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting 2016-09 In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment 2017-04 2017-04 In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 2015-40), 2014-15 2014-15 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. 2014-09, ASU 2014-09 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ASU 2016-02 requires right-of-use ASU 2016-02 In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 2014-16 3, 2016 EITF Meeting (SEC Update) 2016-11 Activities-Oil 2014-09. 2016-11 In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory ASU 2016-16 ASU 2016-16 In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers 2016-20 2014-09, Revenue from Contracts with Customers 2014-09, In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business 2017-01 2017-01 In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost 2017-07 2017-07 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
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 following table presents the weighted average for key assumptions used in determining the fair value of options granted and the related share-based compensation expense: Year Ended August 26, August 27, August 29, Expected price volatility 18% 18% 20% Risk-free interest rates 1.2% 1.5% 1.4% Weighted average expected lives (in years) 5.1 5.1 5.1 Forfeiture rate 10% 10% 9% Dividend yield 0% 0% 0% |
Stock Option Activity | The Company generally issues new shares when options are exercised. The following table summarizes information about stock option activity for the year ended August 26, 2017: Number of Shares Weighted Average Exercise Weighted- (in years) Aggregate Intrinsic (in thousands) Outstanding – August 27, 2016 1,759,408 $ 428.72 Granted 290,805 744.80 Exercised (207,069 ) 263.02 Cancelled (45,089 ) 657.78 Outstanding – August 26, 2017 1,798,055 493.18 6.17 $ 199,752 Exercisable 1,041,933 362.38 4.76 189,790 Expected to vest 680,510 673.42 8.10 8,966 Available for future grants 898,992 |
Accrued Expenses and Other (Tab
Accrued Expenses and Other (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
Text Block [Abstract] | |
Accrued Expenses | Accrued expenses and other consisted of the following: (in thousands) August 26, August 27, Accrued compensation, related payroll taxes and benefits $ 181,591 $ 180,012 Property, sales, and other taxes 98,829 95,293 Medical and casualty insurance claims (current portion) 84,756 78,458 Capital lease obligations 48,134 44,834 Accrued interest 41,047 34,179 Accrued gift cards 24,192 24,129 Accrued sales and warranty returns 19,520 19,527 Other 65,281 75,193 $ 563,350 $ 551,625 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income from Continuing Operations | The components of income from continuing operations before income taxes are as follows: Year Ended (in thousands) August 26, August 27, August 29, Domestic $ 1,737,401 $ 1,737,727 $ 1,676,640 International 188,088 174,987 125,972 $ 1,925,489 $ 1,912,714 $ 1,802,612 |
Provision for Income Tax Expense | The provision for income tax expense consisted of the following: Year Ended (in thousands) August 26, August 27, August 29, Current: Federal $ 487,492 $ 534,621 $ 522,073 State 31,733 39,223 41,921 International 50,493 52,844 42,406 569,718 626,688 606,400 Deferred: Federal 72,208 48,509 38,299 State 7,769 9,453 941 International (5,075 ) (12,943 ) (3,269 ) 74,902 45,019 35,971 Income tax expense $ 644,620 $ 671,707 $ 642,371 |
Reconciliation of Provision for Income Taxes | A reconciliation of the provision for income taxes to the amount computed by applying the federal statutory tax rate of 35% to income before income taxes is as follows: Year Ended (in thousands) August 26, August 27, August 29, Federal tax at statutory U.S. income tax rate 35.0% 35.0% 35.0% State income taxes, net 1.3% 1.6% 1.5% Other (2.8% ) (1.5% ) (0.9% ) Effective tax rate 33.5% 35.1% 35.6% |
Significant Components of Company's Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities were as follows: (in thousands) August 26, August 27, Deferred tax assets: Net operating loss and credit carryforwards $ 48,062 $ 50,859 Accrued benefits 96,664 93,212 Other 56,052 68,600 Total deferred tax assets 200,778 212,671 Less: Valuation allowances (13,501 ) (13,338 ) Net deferred tax asset 187,277 199,333 Deferred tax liabilities: Property and equipment (117,580 ) (93,943 ) Inventory (333,422 ) (315,563 ) Prepaid Expenses (60,920 ) (27,395 ) Other (11,158 ) (10,077 ) Total deferred tax liabilities (523,080 ) (446,978 ) Net deferred tax liability $ (335,803 ) $ (247,645 ) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in thousands) August 26, August 27, Beginning balance $ 27,726 $ 28,434 Additions based on tax positions related to the current year 7,089 7,172 Additions for tax positions of prior years 278 95 Reductions for tax positions of prior years (6,954 ) (2,405 ) Reductions due to settlements (1,964 ) (858 ) Reductions due to statute of limitations (3,974 ) (4,712 ) Ending balance $ 22,201 $ 27,726 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
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: August 26, 2017 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 18,453 $ 120 $ — $ 18,573 Other long-term assets 53,319 28,981 — 82,300 $ 71,772 $ 29,101 $ — $ 100,873 August 27, 2016 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 7,326 $ — $ — $ 7,326 Other long-term assets 65,350 25,675 — 91,025 $ 72,676 $ 25,675 $ — $ 98,351 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Marketable Securities | The Company’s available-for-sale marketable securities consisted of the following: August 26, 2017 (in thousands) Amortized Basis Gross Gross Fair Value Corporate securities $ 39,917 $ 73 $ (13 ) $ 39,977 Government bonds 31,076 49 (74 ) 31,051 Mortgage-backed securities 4,850 2 (42 ) 4,810 Asset-backed securities and other 25,042 28 (35 ) 25,035 $ 100,885 $ 152 $ (164 ) $ 100,873 August 27, 2016 (in thousands) Amortized Basis Gross Gross Fair Value Corporate securities $ 37,789 $ 198 $ (6 ) $ 37,981 Government bonds 33,497 24 (35 ) 33,486 Mortgage-backed securities 6,865 18 (29 ) 6,854 Asset-backed securities and other 20,015 26 (11 ) 20,030 $ 98,166 $ 266 $ (81 ) $ 98,351 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
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 (loss) income before reclassifications (24,542 ) (39,524 ) 206 (2,687 ) (66,547 ) Amounts reclassified from Accumulated other comprehensive loss (1) 6,447 (2) — (60 ) (4) 2,149 (5) 8,536 Balance at August 27, 2016 (88,890 ) (211,012 ) 120 (7,747 ) (307,529 ) Other comprehensive (loss) income before reclassifications 8,046 35,198 (60 ) — 43,184 Amounts reclassified from Accumulated other comprehensive loss (1) 8,468 (2) — (71 ) (4) 1,391 (5) 9,788 Balance at August 26, 2017 $ (72,376 ) $ (175,814 ) $ (11 ) $ (6,356 ) $ (254,557 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Represents amortization of pension liability adjustments, net of taxes of $5,406 in fiscal 2017 and $4,059 in fiscal 2016, which is recorded in Operating, selling, general and administrative expenses on the Consolidated Statements of Income. See “Note L – 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 $38 in fiscal 2017 and $33 in fiscal 2016, which is recorded in Operating, selling, general, and administrative expenses on the Consolidated Statements of Income. See “Note F – Marketable Securities” for further discussion. (5) Represents gains and losses on derivatives, net of taxes of $814 in fiscal 2017 and $315 in fiscal 2016, which is recorded in Interest expense, net, on the Consolidated Statements of Income. See “Note H – Derivative Financial Instruments” for further discussion. |
Financing (Tables)
Financing (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consisted of the following: (in thousands) August 26, 2017 August 27, 2016 1.300% Senior Notes due January 2017, effective interest rate of 1.43% $ — $ 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% 250,000 250,000 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% 400,000 400,000 3.750% Senior Notes due June 2027, effective interest rate of 3.83% 600,000 — Commercial paper, weighted average interest rate of 1.44% and 0.72% at August 26, 2017 and August 27, 2016, respectively 1,155,100 1,197,500 Total debt before discounts and debt issuance costs 5,105,100 4,947,500 Less: Discounts and debt issuance costs 23,862 23,381 Long-term debt $ 5,081,238 $ 4,924,119 |
Scheduled Maturities of Debt | Scheduled maturities of debt are as follows: (in thousands) Scheduled 2018 $ 1,405,100 2019 250,000 2020 — 2021 750,000 2022 500,000 Thereafter 2,200,000 Subtotal 5,105,100 Discount and debt issuance costs 23,862 Total Debt $ 5,081,238 |
Interest Expense (Tables)
Interest Expense (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
Banking and Thrift, Interest [Abstract] | |
Net Interest Expense | Net interest expense consisted of the following: Year Ended (in thousands) August 26, August 27, August 29, Interest expense $ 159,329 $ 150,961 $ 153,007 Interest income (3,502 ) (2,371 ) (1,605 ) Capitalized interest (1,247 ) (909 ) (963 ) $ 154,580 $ 147,681 $ 150,439 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
Equity [Abstract] | |
Summarize Company's Share Repurchase Activity | The Company’s share repurchase activity consisted of the following: Year Ended (in thousands) August 26, August 27, August 29, Amount $ 1,071,649 $ 1,452,462 $ 1,271,416 Shares 1,495 1,903 2,010 |
Pension and Savings Plans (Tabl
Pension and Savings Plans (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
Retirement Benefits [Abstract] | |
Weighted Average Asset Allocation for Pension Plan Assets | The fair values of investments by level and asset category and the weighted-average asset allocations of the Company’s pension plans at the measurement date are presented in the following table: August 26, 2017 Fair Asset Allocation Fair Value Hierarchy (in thousands) Value Actual Target Level 1 Level 2 Level 3 U.S. equities $ 50,125 15.8 % 17.0 % $ — $ 50,125 $ — International equities 33,696 10.7 11.0 — 33,696 — Emerging equities 19,027 6.0 6.0 — 19,027 — High yield securities 17,063 5.4 6.0 — 17,063 — Alternative investments — — — — — — Fixed income securities 178,650 56.5 60.0 — 178,650 — Cash and cash equivalents 17,706 5.6 — — 17,706 — $ 316,267 100.0 % 100.0 % $ — $ 316,267 $ — August 27, 2016 Fair Asset Allocation Fair Value Hierarchy (in thousands) Value Actual Target Level 1 Level 2 Level 3 U.S. equities $ 66,008 22.9 % 26.0 % $ — $ 66,008 $ — International equities 42,023 14.5 17.0 — 42,023 — Emerging equities 22,848 7.9 8.5 — 22,848 — High yield securities 21,445 7.4 8.5 — 21,445 — Alternative investments — — — — — — Fixed income securities 99,336 34.3 40.0 — 99,336 — Cash and cash equivalents 37,726 13.0 — — 37,726 — $ 289,386 100.0 % 100.0 % $ — $ 289,386 $ — |
Plan's Funded Status and Amounts Recognized in Company's Consolidated Balance Sheets | The following table sets forth the plans’ funded status and amounts recognized in the Company’s Consolidated Balance Sheets: (in thousands) August 26, August 27, Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 328,511 $ 296,123 Interest cost 10,335 11,272 Actuarial (gains) losses (8,746 ) 39,842 Benefits paid (15,376 ) (18,726 ) Benefit obligations at end of year $ 314,724 $ 328,511 Change in Plan Assets: Fair value of plan assets at beginning of year $ 289,386 $ 238,755 Actual return on plan assets 24,496 16,636 Employer contributions 17,761 52,721 Benefits paid (15,376 ) (18,726 ) Fair value of plan assets at end of year $ 316,267 $ 289,386 Amount Recognized in the Statement of Financial Position: Current liabilities $ (283 ) $ (276 ) Long-term assets 8,686 — Long-term liabilities (6,860 ) (38,849 ) Net amount recognized $ 1,543 $ (39,125 ) Amount Recognized in Accumulated Other Comprehensive Loss and not yet reflected in Net Periodic Benefit Cost: Net actuarial loss $ (118,889 ) $ (145,948 ) Accumulated other comprehensive loss $ (118,889 ) $ (145,948 ) Amount Recognized in Accumulated Other Comprehensive Loss and not yet reflected in Net Periodic Benefit Cost and expected to be amortized in next year’s Net Periodic Benefit Cost: Net actuarial loss $ (10,736 ) $ (13,874 ) Amount recognized $ (10,736 ) $ (13,874 ) |
Net Periodic Benefit Expense | Net periodic benefit expense consisted of the following: Year Ended (in thousands) August 26, August 27, August 29, Interest cost $ 10,335 $ 11,272 $ 12,338 Expected return on plan assets (20,056 ) (16,512 ) (16,281 ) Recognized net actuarial losses 13,873 10,506 8,941 Net periodic benefit expense $ 4,152 $ 5,266 $ 4,998 |
Actuarial Assumptions Used in Determining Projected Benefit Obligation | The blended actuarial assumptions used in determining the projected benefit obligation include the following: Year Ended August 26, August 27, August 29, Discount rate to determine benefit obligation 3.86 % 3.72 % 4.50 % Discount rate to determine net interest cost 3.21 % 3.90 % 4.28 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 7.00 % |
Benefit Payments are Expected to be Paid as Follows | Based on current assumptions about future events, benefit payments are expected to be paid as follows for each of the following fiscal years. Actual benefit payments may vary significantly from the following estimates: (in thousands) Benefit 2018 $ 13,608 2019 13,139 2020 13,817 2021 14,538 2022 14,917 2023 – 2027 79,742 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
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 added through acquisition — — — Goodwill adjustments — — — Net balance as of August 27, 2016 326,703 65,184 391,887 Goodwill added through acquisition — — — Goodwill adjustments — — — Net balance as of August 26, 2017 $ 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: August 26, 2017 (in thousands) Estimated Life Gross Accumulated Net Amortizing intangible assets: Technology 3-5 years $ 10,570 $ (9,994 ) $ 576 Noncompete agreements 5 years 1,300 (1,223 ) 77 Customer relationships 3-10 years 49,676 (24,730 ) 24,946 $ 61,546 $ (35,947 ) 25,599 Non-amortizing intangible asset: Trade names 26,900 Total intangible assets other than goodwill $ 52,499 August 27, 2016 (in thousands) Estimated Life Gross Accumulated Net Amortizing intangible assets: Technology 3-5 years $ 10,570 $ (7,988 ) $ 2,582 Noncompete agreements 5 years 1,300 (963 ) 337 Customer relationships 3-10 years 49,676 (18,514 ) 31,162 $ 61,546 $ (27,465 ) 34,081 Non-amortizing intangible asset: Trade names 26,900 Total intangible assets other than goodwill $ 60,981 |
Schedule of Future Amortization Expense for Finite Lived Intangible Assets | Total future amortization expense for intangible assets that have finite lives, based on the existing intangible assets and their current estimated useful lives as of August 26, 2017, is estimated as follows: (in thousands) Total 2018 $ 6,855 2019 6,203 2020 6,203 2021 3,474 2022 2,030 Thereafter 834 $ 25,599 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
Leases [Abstract] | |
Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases and Capital Leases | Future minimum annual rental commitments under non-cancelable operating leases and capital leases were as follows at the end of fiscal 2017: (in thousands) Operating Capital 2018 $ 293,826 $ 48,134 2019 284,523 49,808 2020 262,782 36,610 2021 237,241 21,217 2022 213,399 3,307 Thereafter 861,409 — Total minimum payments required $ 2,153,180 159,076 Less: Interest (8,620 ) Present value of minimum capital lease payments $ 150,456 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
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. The following table shows segment results for the following fiscal years: Year Ended (in thousands) August 26, August 27, August 29, Net Sales: Auto Parts Locations $ 10,523,272 $ 10,261,112 $ 9,824,876 Other 365,404 374,564 362,464 Total $ 10,888,676 $ 10,635,676 $ 10,187,340 Segment Profit: Auto Parts Locations $ 5,544,494 $ 5,410,477 $ 5,132,624 Other 195,126 198,259 194,407 Gross profit 5,739,620 5,608,736 5,327,031 Operating, selling, general and administrative expenses (3,659,551 ) (3,548,341 ) (3,373,980 ) Interest expense, net (154,580 ) (147,681 ) (150,439 ) Income before income taxes $ 1,925,489 $ 1,912,714 $ 1,802,612 Segment Assets: Auto Parts Locations $ 8,964,371 $ 8,351,883 $ 7,883,720 Other 295,410 247,904 218,629 Total $ 9,259,781 $ 8,599,787 $ 8,102,349 Capital Expenditures: Auto Parts Locations $ 533,304 $ 470,631 $ 464,246 Other 20,528 18,160 16,333 Total $ 553,832 $ 488,791 $ 480,579 Auto Parts Locations Sales by Product Grouping: Failure $ 5,100,702 $ 4,913,423 $ 4,650,271 Maintenance items 3,774,386 3,721,240 3,618,779 Discretionary 1,648,184 1,626,449 1,555,826 Auto Parts Locations net sales $ 10,523,272 $ 10,261,112 $ 9,824,876 |
Quarterly Summary (Tables)
Quarterly Summary (Tables) | 12 Months Ended |
Aug. 26, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary | Twelve Weeks Ended Sixteen Weeks (in thousands, except per share data) November 19, February 11, May 6, 2017 August 26, (2) Net sales $ 2,467,845 $ 2,289,219 $ 2,619,007 $ 3,512,605 Gross profit 1,301,542 1,205,536 1,378,418 1,854,125 Operating profit 458,902 383,969 529,570 707,628 Income before income taxes 425,596 349,771 493,895 656,227 Net income (3) 278,125 237,145 331,700 433,899 Basic earnings per share (3) 9.61 8.28 11.70 15.52 Diluted earnings per share (3) 9.36 8.08 11.44 15.27 Twelve Weeks Ended Sixteen Weeks Ended (in thousands, except per share data) November 21, February 13, May 7, 2016 August 27, (2) Net sales $ 2,386,043 $ 2,257,192 $ 2,593,672 $ 3,398,769 Gross profit 1,252,934 1,190,596 1,370,458 1,794,748 Operating profit 437,995 382,660 536,374 703,366 Income before income taxes 402,985 349,828 502,323 657,577 Net income 258,112 228,613 327,515 426,768 Basic earnings per share 8.46 7.58 10.99 14.58 Diluted earnings per share 8.29 7.43 10.77 14.30 (1) The sum of quarterly amounts may not equal the annual amounts reported due to rounding. In addition, the earnings per share amounts are computed independently for each quarter while the full year is based on the annual weighted average shares outstanding. (2) The fourth quarter for fiscal 2017 and fiscal 2016 are based on a 16-week period. All other quarters presented are based on a 12-week period. (3) As discussed in Note A, the Company adopted the new accounting guidance for shared-based payments on August 28, 2016. These amounts include the impact of the adoption. For the twelve week period ended November 19, 2016, this increased net income by $3.1 million, basic earnings per share by $0.11 and diluted earnings per share by $0.03. For the twelve week period ended February 11, 2017, this increased net income by $12.5 million, basic earnings per share by $0.43 and diluted earnings per share by $0.37. For the twelve week period ended May 6, 2017, this increased net income by $11.4 million, basic earnings per share by $0.40 and diluted earnings per share by $0.32. For the sixteen week period ended August 26, 2017, this increased net income by $4.1 million, basic earnings per share by $0.15 and diluted earnings per share by $0.09. Prior period net income, basic earnings per share and diluted earnings per share amounts were not restated. |
Significant Accounting Polici45
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Aug. 26, 2017USD ($)StoreProductVendorBranches$ / sharesshares | Aug. 27, 2016USD ($)shares | Aug. 29, 2015USD ($)shares | Aug. 30, 2014USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Number of stores with commercial sales program | Store | 4,592 | |||
Description of reporting periods | Fiscal Year The Company's fiscal year consists of 52 or 53 weeks ending on the last Saturday in August. Fiscal 2017, fiscal 2016 and fiscal 2015 represented 52 weeks. | |||
Cash and cash equivalents | $ 293,270,000 | $ 189,734,000 | $ 175,309,000 | $ 124,485,000 |
Allowances for uncollectible accounts | 5,900,000 | 7,400,000 | ||
Unrecorded adjustment for LIFO value in excess of replacement value | 414,900,000 | 364,100,000 | ||
Impairment loss of long lived assets | 0 | |||
Deferred rent | $ 130,200,000 | 121,700,000 | ||
Measure of income tax benefit for uncertain income tax positions | More than 50% | |||
Advertising expense, net of vendor promotional funds | $ 93,100,000 | 98,300,000 | 98,000,000 | |
Vendor promotional funds, which reduced advertising expense | $ 28,300,000 | 21,400,000 | 22,000,000 | |
Limited warranty period, minimum period (Days) | 30 days | |||
Products accounted for total revenues | One class of similar products accounted for approximately 11 percent of the Company's total revenues,No other class of similar products accounted for 10 percent or more of total revenues | |||
Products accounted for total purchases | One vendor supplied approximately 10 percent of the Company's total purchases.No other individual vendor provided more than 10 percent of total purchases. | |||
Increase of earning per share | $ / shares | $ 0.81 | |||
Effective tax rate basis point | 1.62% | |||
Tax benefit to earning per share | $ / shares | $ 1.08 | |||
Tax reduction to earning per share | $ / shares | $ 0.27 | |||
Excess tax benefit | $ 63,700,000 | $ 47,900,000 | ||
Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Amortization of intangible assets | 3 years | |||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Amortization of intangible assets | 10 years | |||
Interamerican Motor Corporation [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of operating branches | Branches | 26 | |||
Stock Options [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Anti-dilutive shares excluded from the computation of earnings per share | shares | 620,915 | 329,900 | 778 | |
Cash Equivalents [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Maturity period of investments | 90 days or less | |||
Settlement term of credit and debit card transaction | Less than five days | |||
Credit and debit card receivables included within cash and cash equivalents | $ 48,300,000 | $ 46,800,000 | ||
Product Concentration Risk [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of class of similar products accounted for approximately 11% of the company's total revenues | Product | 1 | |||
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 11.00% | |||
Supplier Concentration Risk [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of vendors accounted for approximately 10% of the company's total purchases | Vendor | 1 | |||
Supplier Concentration Risk [Member] | Cost of Goods, Total [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Buildings [Member] | Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 40 years | |||
Buildings [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 50 years | |||
Building Improvements [Member] | Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 5 years | |||
Building Improvements [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 15 years | |||
Equipment [Member] | Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Equipment [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 10 years | |||
Stores in the United States Including Puerto Rico [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of stores | Store | 5,465 | |||
Brazil [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of stores | Store | 14 | |||
Mexico [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of stores | Store | 524 | |||
Non-US [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 148,400,000 | $ 78,100,000 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 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 | $ 38,244,000 | $ 39,825,000 | $ 40,995,000 |
Share-based compensation expense for unvested awards not yet recognized in earnings | $ 37,900,000 | ||
Weighted average period recognition of share-based compensation expense for unvested awards | 1 year 11 months 23 days | ||
Excess tax benefit | $ 63,700,000 | $ 47,900,000 | |
Term of options from grant date | 10 years or 10 years and one day | ||
Exercise period of vested options after death | 1 year | ||
Restricted stock units granted under Director Compensation Program, description | Under the 2011 Program, restricted stock units are granted the first day of each calendar quarter. The number of restricted stock units granted each quarter is determined by dividing one-fourth of the amount of the annual retainer by the fair market value of the shares of common stock as of the grant date | ||
Outstanding options | 1,798,055 | 1,759,408 | |
Common stock reserved for future issuance | 178,300 | ||
Weighted average grant date fair value of options granted | $ 139.80 | $ 156.20 | $ 106.27 |
Intrinsic value of options exercised | $ 93,900,000 | $ 178,000,000 | $ 154,800,000 |
Total fair value of options vested | 34,700,000 | 32,200,000 | 30,600,000 |
Expense related to the discount on the selling of shares to employees and executives | $ 1,800,000 | $ 2,000,000 | $ 2,100,000 |
Percent of market price at which employees permitted to purchase through payroll deductions | 85.00% | ||
Maximum permitted annual purchases per employee | $ 15,000 | ||
Maximum permitted annual purchases per employee, Percent of Compensation | 10.00% | ||
Shares sold to employees under employee stock purchase plan | 14,205 | 12,662 | 14,222 |
Shares purchased from employees at fair value | 12,455 | 12,460 | 15,594 |
2003 Comp Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum limit of the fees a Director can elect to receive in stock | 100.00% | ||
Accrued Director fees | $ 9,500,000 | $ 13,600,000 | |
Accrued Director fees in shares | 17,990 | 17,990 | |
Additional shares of stock or units | 0 | ||
2003 Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares for which each new non-employee director receives an option to purchase | 3,000 | ||
2003 Option Plan [Member] | Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding options | 19,000 | 24,000 | |
Common stock reserved for future issuance | 0 | ||
Share based compensation grant date vesting period | 3 years | ||
Restated Executive Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for future issuance | 239,888 | ||
Maximum permitted annual purchases per employee, Percent of Compensation | 25.00% | ||
Shares sold to employees under employee stock purchase plan | 1,865 | 1,943 | 2,229 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise period of vested options after service period | 30 days | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise period of vested options after service period | 90 days |
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) | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected price volatility | 18.00% | 18.00% | 20.00% |
Risk-free interest rates | 1.20% | 1.50% | 1.40% |
Weighted average expected lives (in years) | 5 years 1 month 6 days | 5 years 1 month 6 days | 5 years 1 month 6 days |
Forfeiture rate | 10.00% | 10.00% | 9.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Share-Based Payments - Stock Op
Share-Based Payments - Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Aug. 26, 2017USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding, Beginning balance, Number of Shares | 1,759,408 |
Granted, Number of Shares | 290,805 |
Exercised, Number of Shares | (207,069) |
Cancelled, Number of Shares | (45,089) |
Outstanding, Ending balance, Number of Shares | 1,798,055 |
Exercisable, Number of Shares | 1,041,933 |
Expected to vest, Number of Shares | 680,510 |
Available for future grants, Number of Shares | 898,992 |
Outstanding, Beginning balance, Weighted Average Exercise Price | $ / shares | $ 428.72 |
Granted, Weighted Average Exercise Price | $ / shares | 744.80 |
Exercised, Weighted Average Exercise Price | $ / shares | 263.02 |
Cancelled, Weighted Average Exercise Price | $ / shares | 657.78 |
Outstanding, Ending balance, Weighted Average Exercise Price | $ / shares | 493.18 |
Exercisable, Weighted Average Exercise Price | $ / shares | 362.38 |
Expected to vest, Weighted Average Exercise Price | $ / shares | $ 673.42 |
Outstanding , Weighted-Average Remaining Contractual Term | 6 years 2 months 1 day |
Exercisable, Weighted-Average Remaining Contractual Term | 4 years 9 months 3 days |
Expected to vest, Weighted-Average Remaining Contractual Term | 8 years 1 month 6 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 199,752 |
Exercisable, Aggregate Intrinsic Value | $ | 189,790 |
Expected to vest, Aggregate Intrinsic Value | $ | $ 8,966 |
Accrued Expenses and Other - Ac
Accrued Expenses and Other - Accrued Expenses (Detail) - USD ($) $ in Thousands | Aug. 26, 2017 | Aug. 27, 2016 |
Other Income and Expenses [Abstract] | ||
Accrued compensation, related payroll taxes and benefits | $ 181,591 | $ 180,012 |
Property, sales, and other taxes | 98,829 | 95,293 |
Medical and casualty insurance claims (current portion) | 84,756 | 78,458 |
Capital lease obligations | 48,134 | 44,834 |
Accrued interest | 41,047 | 34,179 |
Accrued gift cards | 24,192 | 24,129 |
Accrued sales and warranty returns | 19,520 | 19,527 |
Other | 65,281 | 75,193 |
Total | $ 563,350 | $ 551,625 |
Accrued Expenses and Other - Ad
Accrued Expenses and Other - Additional Information (Detail) | 12 Months Ended |
Aug. 26, 2017USD ($) | |
Workers' Compensation [Member] | |
Loss Contingencies [Line Items] | |
Maximum limits per claim for self-insured plan, per annum | $ 1,500,000 |
Employee Health [Member] | |
Loss Contingencies [Line Items] | |
Maximum limits per claim for self-insured plan, per annum | 700,000 |
General and Products Liability [Member] | |
Loss Contingencies [Line Items] | |
Maximum limits per claim for self-insured plan, per annum | 1,000,000 |
Vehicles [Member] | |
Loss Contingencies [Line Items] | |
Maximum limits per claim for self-insured plan, per annum | 2,000,000 |
Property [Member] | |
Loss Contingencies [Line Items] | |
Maximum limits per claim for self-insured plan, per annum | $ 21,500,000 |
Income Taxes - Components of In
Income Taxes - Components of Income from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
May 06, 2017 | Feb. 11, 2017 | Nov. 19, 2016 | May 07, 2016 | Feb. 13, 2016 | Nov. 21, 2015 | Aug. 26, 2017 | Aug. 27, 2016 | Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 1,737,401 | $ 1,737,727 | $ 1,676,640 | ||||||||
International | 188,088 | 174,987 | 125,972 | ||||||||
Income before income taxes | $ 493,895 | $ 349,771 | $ 425,596 | $ 502,323 | $ 349,828 | $ 402,985 | $ 656,227 | $ 657,577 | $ 1,925,489 | $ 1,912,714 | $ 1,802,612 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Current: | |||
Federal | $ 487,492 | $ 534,621 | $ 522,073 |
State | 31,733 | 39,223 | 41,921 |
International | 50,493 | 52,844 | 42,406 |
Total | 569,718 | 626,688 | 606,400 |
Deferred: | |||
Federal | 72,208 | 48,509 | 38,299 |
State | 7,769 | 9,453 | 941 |
International | (5,075) | (12,943) | (3,269) |
Total | 74,902 | 45,019 | 35,971 |
Income tax expense | $ 644,620 | $ 671,707 | $ 642,371 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Detail) | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal tax at statutory U.S. income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net | 1.30% | 1.60% | 1.50% |
Other | (2.80%) | (1.50%) | (0.90%) |
Effective tax rate | 33.50% | 35.10% | 35.60% |
Income Taxes - Reconciliation54
Income Taxes - Reconciliation of Provision for Income Taxes (Parenthetical) (Detail) | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal tax at statutory U.S. income tax rate | 35.00% | 35.00% | 35.00% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 26, 2017 | Aug. 27, 2016 | |
Deferred tax assets: | ||
Net operating loss and credit carryforwards | $ 48,062 | $ 50,859 |
Accrued benefits | 96,664 | 93,212 |
Other | 56,052 | 68,600 |
Total deferred tax assets | 200,778 | 212,671 |
Less: Valuation allowances | (13,501) | (13,338) |
Net deferred tax asset | 187,277 | 199,333 |
Deferred tax liabilities: | ||
Property and equipment | (117,580) | (93,943) |
Inventory | (333,422) | (315,563) |
Prepaid Expenses | (60,920) | (27,395) |
Other | (11,158) | (10,077) |
Total deferred tax liabilities | (523,080) | (446,978) |
Net deferred tax liability | $ (335,803) | $ (247,645) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 26, 2017 | Aug. 27, 2016 | |
Income Tax Disclosure [Abstract] | ||
Deferred taxes are not provided for temporary differences | $ 712,600 | $ 572,000 |
Undistributed earnings of foreign subsidiaries | 37,500 | 35,000 |
Deferred tax assets from net operating loss carryforwards | 30,800 | 25,200 |
Future taxable income | $ 198,200 | 122,000 |
Expiration date of NOLs start year | 2,018 | |
Expiration date of NOLs end year | 2,037 | |
Deferred tax assets for income tax credit carryforwards | $ 17,200 | 25,700 |
Expiration date of tax credit carryforwards start year | 2,023 | |
Expiration date of tax credit carryforwards end year | 2,027 | |
Operating loss carryforwards expiration period description | Fiscal 2018 through 2037 | |
Tax credit carryforwards expiration period description | Fiscal 2023 through 2027 | |
Valuation allowances on deferred tax assets | $ 13,501 | 13,338 |
Unrecognized tax benefits , if recognized would reduce effective tax rate, amount | 9,900 | 15,500 |
Accrued for payment of interest and penalties associated with unrecognized tax benefits | 1,200 | $ 2,800 |
Amount of unrecognized tax benefits that could be reduced over next twelve months | $ 2,300 |
Income Taxes - Reconciliation57
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 26, 2017 | Aug. 27, 2016 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 27,726 | $ 28,434 |
Additions based on tax positions related to the current year | 7,089 | 7,172 |
Additions for tax positions of prior years | 278 | 95 |
Reductions for tax positions of prior years | (6,954) | (2,405) |
Reductions due to settlements | (1,964) | (858) |
Reductions due to statute of limitations | (3,974) | (4,712) |
Ending balance | $ 22,201 | $ 27,726 |
Fair Value Measurements - Compa
Fair Value Measurements - Company's Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Aug. 26, 2017 | Aug. 27, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 100,873 | $ 98,351 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 18,573 | 7,326 |
Other long-term assets | 82,300 | 91,025 |
Total | 100,873 | 98,351 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 18,453 | 7,326 |
Other long-term assets | 53,319 | 65,350 |
Total | 71,772 | 72,676 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 120 | |
Other long-term assets | 28,981 | 25,675 |
Total | $ 29,101 | $ 25,675 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Aug. 26, 2017 | Aug. 27, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | $ 18,573 | $ 7,326 |
Long-term marketable securities | $ 82,300 | $ 91,025 |
Marketable Securities - Availab
Marketable Securities - Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Aug. 26, 2017 | Aug. 27, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | $ 100,885 | $ 98,166 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 152 | 266 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (164) | (81) |
Available-For-Sale Marketable Securities, Fair Value | 100,873 | 98,351 |
Corporate Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 39,917 | 37,789 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 73 | 198 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (13) | (6) |
Available-For-Sale Marketable Securities, Fair Value | 39,977 | 37,981 |
Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 31,076 | 33,497 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 49 | 24 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (74) | (35) |
Available-For-Sale Marketable Securities, Fair Value | 31,051 | 33,486 |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 4,850 | 6,865 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 2 | 18 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (42) | (29) |
Available-For-Sale Marketable Securities, Fair Value | 4,810 | 6,854 |
Asset-Backed Securities and Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 25,042 | 20,015 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 28 | 26 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (35) | (11) |
Available-For-Sale Marketable Securities, Fair Value | $ 25,035 | $ 20,030 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Aug. 26, 2017USD ($)Securities | Aug. 27, 2016USD ($) | |
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 | 51 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | $ 164 | $ 81 |
Marketable securities transferred | $ 85,400 | $ 61,800 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 26, 2017 | Aug. 27, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ (1,787,538) | $ (1,701,390) |
Balance | (1,428,377) | (1,787,538) |
Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (88,890) | (70,795) |
Other comprehensive (loss) income before reclassifications | 8,046 | (24,542) |
Amounts reclassified from Accumulated other comprehensive loss | 8,468 | 6,447 |
Balance | (72,376) | (88,890) |
Foreign Currency [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (211,012) | (171,488) |
Other comprehensive (loss) income before reclassifications | 35,198 | (39,524) |
Balance | (175,814) | (211,012) |
Net Unrealized Gain (Loss) on Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 120 | (26) |
Other comprehensive (loss) income before reclassifications | (60) | 206 |
Amounts reclassified from Accumulated other comprehensive loss | (71) | (60) |
Balance | (11) | 120 |
Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (7,747) | (7,209) |
Other comprehensive (loss) income before reclassifications | (2,687) | |
Amounts reclassified from Accumulated other comprehensive loss | 1,391 | 2,149 |
Balance | (6,356) | (7,747) |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (307,529) | (249,518) |
Other comprehensive (loss) income before reclassifications | 43,184 | (66,547) |
Amounts reclassified from Accumulated other comprehensive loss | 9,788 | 8,536 |
Balance | $ (254,557) | $ (307,529) |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pension liability adjustments, taxes | $ 10,542 | $ 11,394 | $ 4,638 |
Unrealized gains (losses) on marketable securities, taxes | 69 | 79 | 55 |
Net derivative activities, taxes | 814 | 315 | $ 68 |
Reclassified from Accumulated Other Comprehensive Income [Member] | Pension Liability [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pension liability adjustments, taxes | 5,406 | 4,059 | |
Reclassified from Accumulated Other Comprehensive Income [Member] | Net Unrealized Gain (Loss) on Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gains (losses) on marketable securities, taxes | 38 | 33 | |
Reclassified from Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net derivative activities, taxes | $ 814 | $ 315 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 26, 2017 | Aug. 27, 2016 | |
Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pension actuarial gain (loss) | $ 8,046 | $ (24,542) |
Derivative Financial Instrume65
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 26, 2017 | Aug. 27, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative losses recorded in Accumulated other comprehensive loss | $ 10.1 | |
Net derivative losses amortized into Interest expense | 2.2 | $ 1.8 |
Net derivative loss expected to be reclassified over next 12 months | $ 2.2 |
Financing - Schedule of Debt (D
Financing - Schedule of Debt (Detail) - USD ($) $ in Thousands | Aug. 26, 2017 | Aug. 27, 2016 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 1,155,100 | $ 1,197,500 |
Total debt before discounts and debt issuance costs | 5,105,100 | 4,947,500 |
Less: Discounts and debt issuance costs | 23,862 | 23,381 |
Long-term debt | 5,081,238 | 4,924,119 |
1.300% Senior Notes due January 2017, effective interest rate of 1.43% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 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 | 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 | $ 400,000 |
3.750% Senior Notes due June 2027, effective interest rate of 3.83% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 600,000 |
Financing - Schedule of Debt (P
Financing - Schedule of Debt (Parenthetical) (Detail) | Apr. 18, 2017 | Apr. 29, 2015 | Aug. 26, 2017 | Aug. 27, 2016 |
Commercial paper, weighted average interest rate of 1.44% and 0.72% at August 26, 2017 and August 27, 2016, respectively [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate of commercial paper | 1.44% | 0.72% | ||
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% | ||
Effective interest rate | 1.77% | 1.77% | ||
Debt instrument maturity, month and year | 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% | ||
Effective interest rate | 3.28% | 3.28% | ||
Debt instrument maturity, month and year | 2026-04 | 2026-04 | ||
3.750% Senior Notes due June 2027, effective interest rate of 3.83% [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate percentage | 3.75% | 3.75% | 3.75% | |
Effective interest rate | 3.83% | 3.83% | ||
Debt instrument maturity, month and year | 2027-06 | 2027-06 | 2027-06 |
Financing - Additional Informat
Financing - Additional Information (Detail) | Apr. 18, 2017USD ($) | Nov. 18, 2016USD ($) | Apr. 21, 2016USD ($) | Apr. 29, 2015USD ($) | Nov. 18, 2016USD ($) | May 06, 2017 | Aug. 26, 2017USD ($) | Aug. 27, 2016USD ($) | Aug. 29, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||
Remaining borrowing capacity under revolving credit facility | $ 1,997,000,000 | ||||||||
Amount available under credit facility | $ 2,000,000,000 | ||||||||
Credit Agreement description | Less than one year | ||||||||
Line of credit facility covenant terms | The revolving credit facility agreements require that the Company's consolidated interest coverage ratio as of the last day of each quarter shall be no less than 2.5:1. This ratio is defined as the ratio of (i) consolidated earnings before interest, taxes and rents to (ii) consolidated interest expense plus consolidated rents. The Company's consolidated interest coverage ratio as of August 26, 2017 was 6.0:1. | ||||||||
Minimum debt covenant interest coverage ratio to be maintained quarterly | 2.5 | ||||||||
Debt covenant interest coverage ratio | 6 | ||||||||
Proceeds from issuance of debt | $ 600,000,000 | $ 650,000,000 | $ 650,000,000 | ||||||
Repayment with commercial paper | 400,000,000 | 500,000,000 | $ 500,000,000 | ||||||
Fair value of the Company's debt | 5,171,000,000 | 5,117,000,000 | |||||||
Excess (shortfall) of fair value of debt over (from) carrying value | 90,300,000 | $ 192,700,000 | |||||||
Other Letters Of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings, outstanding | $ 10,400,000 | ||||||||
New Multi-Year Revolving Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount available under credit facility | $ 1,600,000,000 | $ 1,600,000,000 | |||||||
Extended expiration of credit facility | 2 years | ||||||||
Maximum amount available under credit facility | $ 2,100,000,000 | 2,100,000,000 | |||||||
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. Interest accrues on base rate loans as defined in the credit facility. | ||||||||
Credit facility expiration date | Nov. 18, 2021 | ||||||||
Credit Agreement description | 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 may be increased to $2.1 billion prior to the maturity date at the Company’s election and subject to bank credit capacity and approval, and may include up to $200 million in letters of credit. Under the revolving credit facility, the Company may borrow funds consisting of Eurodollar loans, base rate loans or a combination of both. The Company also has the option to borrow funds under the terms of a swingline loan subfacility. The revolving credit facility expires on November 18, 2021, but the Company may, by notice to the administrative agent, make up to two requests to extend the termination date for an additional period of one year. The first such request must be made no earlier than 60 days, and no later than 45 days, prior to November 18, 2017, while the second request must be made no earlier than 60 days, and no later than 45 days, prior to November 18, 2018. | ||||||||
Borrowings, outstanding | $ 0 | ||||||||
Letters of credit, outstanding | 3,300,000 | ||||||||
New Multi-Year Revolving Credit Agreement [Member] | Letters of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount available under credit facility | 200,000,000 | 200,000,000 | |||||||
Multi Year Revolving Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount available under credit facility | 1,250,000,000 | $ 1,250,000,000 | |||||||
New 364-Day Revolving Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Extended expiration of credit facility | 1 year | ||||||||
Maximum amount available under credit facility | 400,000,000 | $ 400,000,000 | |||||||
Credit facility expiration date | Nov. 17, 2017 | ||||||||
Credit Agreement description | The credit facility is available to primarily support commercial paper borrowings and other short-term unsecured bank loans. Under the credit facility, the Company may borrow funds consisting of Eurodollar loans, base rate loans or a combination of both. The New 364-Day Credit Agreement expires on November 17, 2017, but the Company may request an extension of the termination date for 364 days no later than 45 days prior to November 17, 2017, subject to bank approval. In addition, at least 15 days prior to November 17, 2017, 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. | ||||||||
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. Interest accrues on base rate loans as defined in the credit facility. | ||||||||
Borrowings, outstanding | 0 | ||||||||
New 364-Day Revolving Credit Agreement [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Term Loan Maturity Period | 1 year | ||||||||
364-Day Revolving Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount available under credit facility | $ 500,000,000 | $ 500,000,000 | |||||||
Letters of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount available under credit facility | 75,000,000 | ||||||||
Borrowings, outstanding | 74,900,000 | ||||||||
Term Loan [Member] | New 364-Day Revolving Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of penalty for extending expiration period | 1.00% | ||||||||
Term Loan [Member] | New 364-Day Revolving Credit Agreement [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility extension or modification period prior to expiration | 15 days | ||||||||
3.750% Senior Notes due June 2027, effective interest rate of 3.83% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 600,000,000 | ||||||||
Stated interest rate percentage | 3.75% | 3.75% | 3.75% | ||||||
Debt instrument maturity, month and year | 2027-06 | 2027-06 | 2027-06 | ||||||
Proceeds from issuance of debt | $ 600,000,000 | ||||||||
Three Point OneTwo Five Senior Notes due April Two Thousand Twenty Six [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate percentage | 3.125% | ||||||||
Debt instrument maturity, month and year | 2026-04 | ||||||||
Proceeds from issuance of debt | $ 400,000,000 | ||||||||
One Point Six Two Five Senior Notes due April Two Thousand nintheen [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate percentage | 1.625% | ||||||||
Debt instrument maturity, month and year | 2019-04 | ||||||||
Proceeds from issuance of debt | $ 250,000,000 | ||||||||
7.125% Senior Notes due August 2018, effective interest rate of 7.28% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 250,000,000 | $ 250,000,000 | |||||||
Stated interest rate percentage | 7.125% | 7.125% | |||||||
Debt instrument maturity, month and year | 2018-08 | 2018-08 | |||||||
3.250% Senior Notes due April 2025, effective interest rate 3.36% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 400,000,000 | $ 400,000,000 | |||||||
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 2.62% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 250,000,000 | $ 250,000,000 | |||||||
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] | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate percentage | 5.75% | ||||||||
Debt instrument maturity, month and year | 2015-01 | ||||||||
Repayment with commercial paper | $ 500,000,000 |
Financing - Scheduled Maturitie
Financing - Scheduled Maturities of Debt (Detail) - USD ($) $ in Thousands | Aug. 26, 2017 | Aug. 27, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 1,405,100 | |
2,019 | 250,000 | |
2,020 | 0 | |
2,021 | 750,000 | |
2,022 | 500,000 | |
Thereafter | 2,200,000 | |
Subtotal | 5,105,100 | |
Discount and debt issuance costs | 23,862 | $ 23,381 |
Long-term debt | $ 5,081,238 | $ 4,924,119 |
Interest Expense - Net Interest
Interest Expense - Net Interest Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Other Income and Expenses [Abstract] | |||
Interest expense | $ 159,329 | $ 150,961 | $ 153,007 |
Interest income | (3,502) | (2,371) | (1,605) |
Capitalized interest | (1,247) | (909) | (963) |
Net Interest Expense | $ 154,580 | $ 147,681 | $ 150,439 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) shares in Thousands | 12 Months Ended | 236 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 26, 2017 | |
Stock Repurchase Program [Line Items] | ||||
Stock repurchased cumulative, shares | 1,495 | 1,903 | 2,010 | 142,300 |
Purchase of treasury stock | $ 1,071,649,000 | $ 1,452,462,000 | $ 1,271,416,000 | $ 17,826,000,000 |
Stock repurchase authorized amended value | $ 18,650,000,000 | $ 17,900,000,000 | $ 18,650,000,000 | |
Share of treasury stock retired | 1,800 | 2,100 | ||
Retained Deficit [Member] | ||||
Stock Repurchase Program [Line Items] | ||||
Retirement of treasury shares | $ 1,321,070,000 | $ 1,424,455,000 | 1,049,856,000 | |
Additional Paid-In Capital [Member] | ||||
Stock Repurchase Program [Line Items] | ||||
Retirement of treasury shares | $ 64,943,000 | $ 67,023,000 | $ 57,403,000 |
Stock Repurchase Program - Summ
Stock Repurchase Program - Summarize Company's Share Repurchase Activity (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | 236 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 26, 2017 | |
Equity [Abstract] | ||||
Amount | $ 1,071,649 | $ 1,452,462 | $ 1,271,416 | |
Shares | 1,495 | 1,903 | 2,010 | 142,300 |
Pension and Savings Plans - Add
Pension and Savings Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Consecutive years of highest compensation used to determine defined benefit pension plan benefits | 5 years | |||
Cash contribution in asset allocation | $ 17.5 | $ 48 | ||
Expected long-term rate of return on plan assets | 7.00% | 7.00% | 7.00% | |
Plan benefit service cost | $ 0 | |||
Change to net periodic benefit cost | $ 1,800,000 | |||
Annual contributions by the Company to pension plans | 17,761,000 | 52,721,000 | $ 17,100,000 | |
Expected contributions to the plans by the Company in next 12 months | $ 20,300,000 | |||
Percentage of company matching retirement savings plan contributions that vest immediately | 100.00% | |||
Percentage of savings option up to qualified earnings | 25.00% | |||
Annual contribution by employer towards 401(k) Plan | $ 21,000,000 | $ 19,700,000 | $ 17,700,000 | |
Scenario Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected long-term rate of return on plan assets | 6.00% |
Pension and Savings Plans - Wei
Pension and Savings Plans - Weighted Average Asset Allocation for Pension Plan Assets (Detail) - USD ($) $ in Thousands | Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | $ 316,267 | $ 289,386 | $ 238,755 |
Asset allocation actual | 100.00% | 100.00% | |
Asset allocation target | 100.00% | 100.00% | |
U.S. Equities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | $ 50,125 | $ 66,008 | |
Asset allocation actual | 15.80% | 22.90% | |
Asset allocation target | 17.00% | 26.00% | |
International Equities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | $ 33,696 | $ 42,023 | |
Asset allocation actual | 10.70% | 14.50% | |
Asset allocation target | 11.00% | 17.00% | |
Emerging Equities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | $ 19,027 | $ 22,848 | |
Asset allocation actual | 6.00% | 7.90% | |
Asset allocation target | 6.00% | 8.50% | |
High Yield Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | $ 17,063 | $ 21,445 | |
Asset allocation actual | 5.40% | 7.40% | |
Asset allocation target | 6.00% | 8.50% | |
Fixed Income Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | $ 178,650 | $ 99,336 | |
Asset allocation actual | 56.50% | 34.30% | |
Asset allocation target | 60.00% | 40.00% | |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | $ 17,706 | $ 37,726 | |
Asset allocation actual | 5.60% | 13.00% | |
Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | $ 316,267 | $ 289,386 | |
Level 2 [Member] | U.S. Equities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | 50,125 | 66,008 | |
Level 2 [Member] | International Equities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | 33,696 | 42,023 | |
Level 2 [Member] | Emerging Equities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | 19,027 | 22,848 | |
Level 2 [Member] | High Yield Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | 17,063 | 21,445 | |
Level 2 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | 178,650 | 99,336 | |
Level 2 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Asset allocation fair value | $ 17,706 | $ 37,726 |
Pension and Savings Plans - Pla
Pension and Savings Plans - Plan's Funded Status and Amounts Recognized in Company's Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Change in Projected Benefit Obligation: | |||
Projected benefit obligation at beginning of year | $ 328,511 | $ 296,123 | |
Interest cost | 10,335 | 11,272 | $ 12,338 |
Actuarial (gains) losses | (8,746) | 39,842 | |
Benefits paid | (15,376) | (18,726) | |
Benefit obligations at end of year | 314,724 | 328,511 | 296,123 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 289,386 | 238,755 | |
Actual return on plan assets | 24,496 | 16,636 | |
Employer contributions | 17,761 | 52,721 | 17,100 |
Benefits paid | (15,376) | (18,726) | |
Fair value of plan assets at end of year | 316,267 | 289,386 | $ 238,755 |
Amount Recognized in the Statement of Financial Position: | |||
Current liabilities | (283) | (276) | |
Long-term assets | 8,686 | ||
Long-term liabilities | (6,860) | (38,849) | |
Net amount recognized | 1,543 | (39,125) | |
Amount Recognized in Accumulated Other Comprehensive Loss and not yet reflected in Net Periodic Benefit Cost: | |||
Net actuarial loss | (118,889) | (145,948) | |
Accumulated other comprehensive loss | (118,889) | (145,948) | |
Amount Recognized in Accumulated Other Comprehensive Loss and not yet reflected in Net Periodic Benefit Cost and expected to be amortized in next year's Net Periodic Benefit Cost: | |||
Net actuarial loss | (10,736) | (13,874) | |
Amount recognized | $ (10,736) | $ (13,874) |
Pension and Savings Plans - Net
Pension and Savings Plans - Net Periodic Benefit Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Retirement Benefits [Abstract] | |||
Interest cost | $ 10,335 | $ 11,272 | $ 12,338 |
Expected return on plan assets | (20,056) | (16,512) | (16,281) |
Recognized net actuarial losses | 13,873 | 10,506 | 8,941 |
Net periodic benefit expense | $ 4,152 | $ 5,266 | $ 4,998 |
Pension and Savings Plans - Act
Pension and Savings Plans - Actuarial Assumptions Used in Determining Projected Benefit Obligation (Detail) | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Retirement Benefits [Abstract] | |||
Discount rate to determine benefit obligation | 3.86% | 3.72% | 4.50% |
Discount rate to determine net interest cost | 3.21% | 3.90% | 4.28% |
Expected long-term rate of return on plan assets | 7.00% | 7.00% | 7.00% |
Pension and Savings Plans - Ben
Pension and Savings Plans - Benefit Payments are Expected to be Paid as Follows (Detail) $ in Thousands | Aug. 26, 2017USD ($) |
Retirement Benefits [Abstract] | |
2,018 | $ 13,608 |
2,019 | 13,139 |
2,020 | 13,817 |
2,021 | 14,538 |
2,022 | 14,917 |
2023 - 2027 | $ 79,742 |
Acquisition - Addition Informat
Acquisition - Addition Information (Detail) $ in Millions | Sep. 27, 2014USD ($) |
Interamerican Motor Corporation [Member] | |
Business Acquisition [Line Items] | |
Acquisition of outstanding stock | $ 75.7 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 26, 2017 | Aug. 27, 2016 | |
Goodwill [Line Items] | ||
Goodwill, Beginning balance | $ 391,887 | $ 391,887 |
Goodwill added through acquisition | 0 | 0 |
Goodwill adjustments | 0 | 0 |
Goodwill, Ending balance | 391,887 | 391,887 |
Auto Parts Locations [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 326,703 | 326,703 |
Goodwill added through acquisition | 0 | 0 |
Goodwill adjustments | 0 | 0 |
Goodwill, Ending balance | 326,703 | 326,703 |
Other [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 65,184 | 65,184 |
Goodwill added through acquisition | 0 | 0 |
Goodwill adjustments | 0 | 0 |
Goodwill, Ending balance | $ 65,184 | $ 65,184 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Detail) - USD ($) | 4 Months Ended | 12 Months Ended | ||||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment charge | $ 0 | $ 0 | ||||
Accumulated goodwill impairment | 18,300,000 | 18,300,000 | $ 18,300,000 | $ 18,300,000 | ||
Purchase of intangibles | 0 | 10,000,000 | $ 10,000,000 | |||
Amortization expense of intangible assets | 8,500,000 | 8,700,000 | ||||
Trade Names [Member] | AutoAnything's and Interamerican Motor Corporation [Member] | ||||||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||||||
Impairment charge | 0 | 0 | ||||
Accumulated impairment | $ 4,100,000 | $ 4,100,000 | $ 4,100,000 | 4,100,000 | ||
Customer Relationships [Member] | ||||||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||||||
Purchase of intangibles | $ 10,000,000 | $ 10,000,000 | ||||
Customer Relationship and Technology Assets [Member] | ||||||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||||||
Purchase of intangibles | $ 30,200,000 |
Goodwill and Intangibles - Sc82
Goodwill and Intangibles - Schedule of Carrying Amounts of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 26, 2017 | Aug. 27, 2016 | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | $ 61,546 | $ 61,546 |
Finite Lived, Accumulated Amortization | (35,947) | (27,465) |
Finite Lived, Net Carrying Amount | 25,599 | 34,081 |
Total intangible assets other than goodwill, Net Carrying Amount | $ 52,499 | 60,981 |
Minimum [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 3 years | |
Maximum [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 10 years | |
Technology [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | $ 10,570 | 10,570 |
Finite Lived, Accumulated Amortization | (9,994) | (7,988) |
Finite Lived, Net Carrying Amount | $ 576 | $ 2,582 |
Technology [Member] | Minimum [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 3 years | 3 years |
Technology [Member] | Maximum [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | 5 years |
Noncompete Agreements [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | 5 years |
Finite Lived, Gross Carrying Amount | $ 1,300 | $ 1,300 |
Finite Lived, Accumulated Amortization | (1,223) | (963) |
Finite Lived, Net Carrying Amount | 77 | 337 |
Customer Relationships [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 49,676 | 49,676 |
Finite Lived, Accumulated Amortization | (24,730) | (18,514) |
Finite Lived, Net Carrying Amount | $ 24,946 | $ 31,162 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 3 years | 3 years |
Customer Relationships [Member] | Maximum [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 10 years | 10 years |
Trade Names [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Non-amortizing intangible asset - Trade name, Net Carrying Amount | $ 26,900 | $ 26,900 |
Goodwill and Intangibles - Sc83
Goodwill and Intangibles - Schedule of Future Amortization Expense for Finite Lived Intangible Assets (Detail) - USD ($) $ in Thousands | Aug. 26, 2017 | Aug. 27, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 6,855 | |
2,019 | 6,203 | |
2,020 | 6,203 | |
2,021 | 3,474 | |
2,022 | 2,030 | |
Thereafter | 834 | |
Finite Lived, Net Carrying Amount | $ 25,599 | $ 34,081 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Leases [Abstract] | |||
Rental expense | $ 302,900 | $ 280,500 | $ 269,500 |
Deferred rent | 130,200 | 121,700 | |
Capital lease assets | 152,000 | 148,500 | |
Capital lease, accumulated amortization | 70,200 | 59,500 | |
Capital lease obligations | 150,500 | 147,300 | |
Current portion of capital lease obligations | $ 48,134 | $ 44,834 |
Leases - Future Minimum Annual
Leases - Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases and Capital Leases (Detail) $ in Thousands | Aug. 26, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 293,826 |
2,019 | 284,523 |
2,020 | 262,782 |
2,021 | 237,241 |
2,022 | 213,399 |
Thereafter | 861,409 |
Total minimum payments required | 2,153,180 |
2,018 | 48,134 |
2,019 | 49,808 |
2,020 | 36,610 |
2,021 | 21,217 |
2,022 | 3,307 |
Thereafter | 0 |
Total minimum payments required | 159,076 |
Less: Interest | (8,620) |
Present value of minimum capital lease payments | $ 150,456 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended |
Aug. 26, 2017USD ($) | |
Loss Contingencies [Line Items] | |
Commitment for construction | $ 69.9 |
Surety bonds | $ 28.8 |
The period of time before expiration of standby letters of credit and surety bonds | Less than one year |
Standby Letters of Credit [Member] | |
Loss Contingencies [Line Items] | |
Borrowings, outstanding | $ 88.6 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Aug. 26, 2017ItemLocation | |
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 | Location | 6,029 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
May 06, 2017 | Feb. 11, 2017 | Nov. 19, 2016 | May 07, 2016 | Feb. 13, 2016 | Nov. 21, 2015 | Aug. 26, 2017 | Aug. 27, 2016 | Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2,619,007 | $ 2,289,219 | $ 2,467,845 | $ 2,593,672 | $ 2,257,192 | $ 2,386,043 | $ 3,512,605 | $ 3,398,769 | $ 10,888,676 | $ 10,635,676 | $ 10,187,340 |
Gross profit | 1,378,418 | 1,205,536 | 1,301,542 | 1,370,458 | 1,190,596 | 1,252,934 | 1,854,125 | 1,794,748 | 5,739,620 | 5,608,736 | 5,327,031 |
Operating, selling, general and administrative expenses | (3,659,551) | (3,548,341) | (3,373,980) | ||||||||
Interest expense, net | (154,580) | (147,681) | (150,439) | ||||||||
Income before income taxes | 493,895 | 349,771 | 425,596 | 502,323 | 349,828 | 402,985 | 656,227 | 657,577 | 1,925,489 | 1,912,714 | 1,802,612 |
Assets | 9,259,781 | 8,599,787 | 9,259,781 | 8,599,787 | 8,102,349 | ||||||
Capital Expenditures | 553,832 | 488,791 | 480,579 | ||||||||
Net sales | $ 2,619,007 | $ 2,289,219 | $ 2,467,845 | $ 2,593,672 | $ 2,257,192 | $ 2,386,043 | 3,512,605 | 3,398,769 | 10,888,676 | 10,635,676 | 10,187,340 |
Auto Parts Locations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 10,523,272 | 10,261,112 | 9,824,876 | ||||||||
Gross profit | 5,544,494 | 5,410,477 | 5,132,624 | ||||||||
Assets | 8,964,371 | 8,351,883 | 8,964,371 | 8,351,883 | 7,883,720 | ||||||
Capital Expenditures | 533,304 | 470,631 | 464,246 | ||||||||
Net sales | 10,523,272 | 10,261,112 | 9,824,876 | ||||||||
Auto Parts Locations [Member] | Failure [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 5,100,702 | 4,913,423 | 4,650,271 | ||||||||
Net sales | 5,100,702 | 4,913,423 | 4,650,271 | ||||||||
Auto Parts Locations [Member] | Maintenance Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,774,386 | 3,721,240 | 3,618,779 | ||||||||
Net sales | 3,774,386 | 3,721,240 | 3,618,779 | ||||||||
Auto Parts Locations [Member] | Discretionary [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,648,184 | 1,626,449 | 1,555,826 | ||||||||
Net sales | 1,648,184 | 1,626,449 | 1,555,826 | ||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 365,404 | 374,564 | 362,464 | ||||||||
Gross profit | 195,126 | 198,259 | 194,407 | ||||||||
Assets | $ 295,410 | $ 247,904 | 295,410 | 247,904 | 218,629 | ||||||
Capital Expenditures | 20,528 | 18,160 | 16,333 | ||||||||
Net sales | $ 365,404 | $ 374,564 | $ 362,464 |
Quarterly Summary - Quarterly S
Quarterly Summary - Quarterly Summary (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
May 06, 2017 | Feb. 11, 2017 | Nov. 19, 2016 | May 07, 2016 | Feb. 13, 2016 | Nov. 21, 2015 | Aug. 26, 2017 | Aug. 27, 2016 | Aug. 26, 2017 | Aug. 27, 2016 | Aug. 29, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 2,619,007 | $ 2,289,219 | $ 2,467,845 | $ 2,593,672 | $ 2,257,192 | $ 2,386,043 | $ 3,512,605 | $ 3,398,769 | $ 10,888,676 | $ 10,635,676 | $ 10,187,340 |
Gross profit | 1,378,418 | 1,205,536 | 1,301,542 | 1,370,458 | 1,190,596 | 1,252,934 | 1,854,125 | 1,794,748 | 5,739,620 | 5,608,736 | 5,327,031 |
Operating profit | 529,570 | 383,969 | 458,902 | 536,374 | 382,660 | 437,995 | 707,628 | 703,366 | 2,080,069 | 2,060,395 | 1,953,051 |
Income before income taxes | 493,895 | 349,771 | 425,596 | 502,323 | 349,828 | 402,985 | 656,227 | 657,577 | 1,925,489 | 1,912,714 | 1,802,612 |
Net income | $ 331,700 | $ 237,145 | $ 278,125 | $ 327,515 | $ 228,613 | $ 258,112 | $ 433,899 | $ 426,768 | $ 1,280,869 | $ 1,241,007 | $ 1,160,241 |
Basic earnings per share | $ 11.70 | $ 8.28 | $ 9.61 | $ 10.99 | $ 7.58 | $ 8.46 | $ 15.52 | $ 14.58 | $ 45.05 | $ 41.52 | $ 36.76 |
Diluted earnings per share | $ 11.44 | $ 8.08 | $ 9.36 | $ 10.77 | $ 7.43 | $ 8.29 | $ 15.27 | $ 14.30 | $ 44.07 | $ 40.70 | $ 36.03 |
Quarterly Summary - Quarterly90
Quarterly Summary - Quarterly Summary (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||
May 06, 2017 | Feb. 11, 2017 | Nov. 19, 2016 | Aug. 26, 2017 | Aug. 26, 2017 | |
Selected Quarterly Financial Information [Line Items] | |||||
Increase in diluted earnings per share | $ 0.81 | ||||
ASU 2016-09 [Member] | |||||
Selected Quarterly Financial Information [Line Items] | |||||
Increase in net income | $ 11.4 | $ 12.5 | $ 3.1 | $ 4.1 | |
Increase in basic earnings per share | $ 0.40 | $ 0.43 | $ 0.11 | $ 0.15 | |
Increase in diluted earnings per share | $ 0.32 | $ 0.37 | $ 0.03 | $ 0.09 |