Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 18, 2017 | Dec. 15, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 18, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | AZO | |
Entity Registrant Name | AUTOZONE INC | |
Entity Central Index Key | 866,787 | |
Current Fiscal Year End Date | --08-25 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,353,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Nov. 18, 2017 | Aug. 26, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 257,677 | $ 293,270 |
Accounts receivable | 272,450 | 280,733 |
Merchandise inventories | 4,012,104 | 3,882,086 |
Other current assets | 174,961 | 155,166 |
Total current assets | 4,717,192 | 4,611,255 |
Property and equipment: | ||
Property and equipment | 6,952,694 | 6,873,193 |
Less: Accumulated depreciation and amortization | (2,891,743) | (2,842,175) |
Property and equipment, net | 4,060,951 | 4,031,018 |
Goodwill | 391,887 | 391,887 |
Deferred income taxes | 33,990 | 35,308 |
Other long-term assets | 193,064 | 190,313 |
Other long-term assets, total | 618,941 | 617,508 |
Assets | 9,397,084 | 9,259,781 |
Current liabilities: | ||
Accounts payable | 4,326,737 | 4,168,940 |
Accrued expenses and other | 583,972 | 563,350 |
Income taxes payable | 156,931 | 34,011 |
Total current liabilities | 5,067,640 | 4,766,301 |
Long-term debt | 4,982,984 | 5,081,238 |
Deferred income taxes | 382,244 | 371,111 |
Other long-term liabilities | 489,315 | 469,508 |
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; 28,761 shares issued and 27,262 shares outstanding as of November 18, 2017; 28,735 shares issued and 27,833 shares outstanding as of August 26, 2017 | 288 | 287 |
Additional paid-in capital | 1,103,412 | 1,086,671 |
Retained deficit | (1,361,385) | (1,642,387) |
Accumulated other comprehensive loss | (296,451) | (254,557) |
Treasury stock, at cost | (970,963) | (618,391) |
Total stockholders' deficit | (1,525,099) | (1,428,377) |
Liabilities and Stockholders' Deficit | $ 9,397,084 | $ 9,259,781 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Nov. 18, 2017 | Aug. 26, 2017 |
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 | 28,761,000 | 28,735,000 |
Common stock, shares outstanding | 27,262,000 | 27,833,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 18, 2017 | Nov. 19, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 2,589,131 | $ 2,467,845 |
Cost of sales, including warehouse and delivery expenses | 1,223,283 | 1,166,303 |
Gross profit | 1,365,848 | 1,301,542 |
Operating, selling, general and administrative expenses | 897,094 | 842,640 |
Operating profit | 468,754 | 458,902 |
Interest expense, net | 38,889 | 33,306 |
Income before income taxes | 429,865 | 425,596 |
Income taxes | 148,862 | 147,471 |
Net income | $ 281,003 | $ 278,125 |
Weighted average shares for basic earnings per share | 27,638 | 28,951 |
Effect of dilutive stock equivalents | 458 | 752 |
Weighted average shares for diluted earnings per share | 28,096 | 29,703 |
Basic earnings per share | $ 10.17 | $ 9.61 |
Diluted earnings per share | $ 10 | $ 9.36 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 18, 2017 | Nov. 19, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 281,003 | $ 278,125 | |
Other comprehensive loss: | |||
Pension liability adjustments, net of taxes | [1] | 1,316 | 1,816 |
Foreign currency translation adjustments | (43,217) | (40,591) | |
Unrealized losses on marketable securities, net of taxes | [2] | (316) | (229) |
Net derivative activities, net of taxes | [3] | 323 | 330 |
Total other comprehensive loss | (41,894) | (38,674) | |
Comprehensive income | $ 239,109 | $ 239,451 | |
[1] | Pension liability adjustments are presented net of taxes of $1,161 in fiscal 2018 and $1,385 in fiscal 2017. | ||
[2] | Unrealized gains on marketable securities are presented net of taxes of $170 in fiscal 2018 and $144 in fiscal 2017. | ||
[3] | Net derivative activities are presented net of taxes of $186 in fiscal 2018 and $179 in fiscal 2017. |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 18, 2017 | Nov. 19, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Pension liability adjustments, taxes | $ 1,161 | $ 1,385 |
Unrealized gains on marketable securities, taxes | 170 | 144 |
Net derivative activities, taxes | $ 186 | $ 179 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 18, 2017 | Nov. 19, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 281,003 | $ 278,125 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment and intangibles | 77,986 | 71,812 |
Amortization of debt origination fees | 1,999 | 1,950 |
Deferred income taxes | 8,556 | 6,881 |
Share-based compensation expense | 11,086 | 9,787 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 6,671 | 14,935 |
Merchandise inventories | (151,396) | (160,918) |
Accounts payable and accrued expenses | 185,009 | 77,360 |
Income taxes payable | 123,292 | 95,523 |
Other, net | 20,811 | 11,045 |
Net cash provided by operating activities | 565,017 | 406,500 |
Cash flows from investing activities: | ||
Capital expenditures | (110,278) | (97,917) |
Purchase of marketable securities | (61,505) | (10,843) |
Proceeds from sale of marketable securities | 36,776 | 8,752 |
Disposal of capital assets and other, net | 354 | 357 |
Net cash used in investing activities | (134,653) | (99,651) |
Cash flows from financing activities: | ||
Net (payments) proceeds of commercial paper | (99,000) | 72,200 |
Net proceeds from sale of common stock | 7,033 | 5,742 |
Purchase of treasury stock | (352,572) | (362,634) |
Payments of capital lease obligations | (18,000) | (11,012) |
Other, net | (1,165) | (2,222) |
Net cash used in financing activities | (463,704) | (297,926) |
Effect of exchange rate changes on cash | (2,253) | (3,119) |
Net (decrease) increase in cash and cash equivalents | (35,593) | 5,804 |
Cash and cash equivalents at beginning of period | 293,270 | 189,734 |
Cash and cash equivalents at end of period | $ 257,677 | $ 195,538 |
General
General | 3 Months Ended |
Nov. 18, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | Note A – General The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q S-X 10-K Operating results for the twelve weeks ended November 18, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 25, 2018. Each of the first three quarters of AutoZone’s fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarters for fiscal 2018 and 2017 each have 16 weeks. Additionally, the Company’s business is somewhat seasonal in nature, with the highest sales generally occurring during the months of February through September and the lowest sales generally occurring in the months of December and January. Recently Issued Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers 2014-09, In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 2016-02 right-of-use 2016-02 In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory 2016-16 2016-16 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
Share-Based Payments | 3 Months Ended |
Nov. 18, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Note B – Share-Based Payments AutoZone recognizes compensation expense for share-based payments based on the fair value of the awards at the grant date. Share-based payments include stock option grants, restricted stock grants, restricted stock unit grants and the discount on shares sold to employees under share purchase plans. Additionally, directors’ fees are paid in restricted stock units with value equivalent to the value of shares of common stock as of the grant date. The change in fair value of liability-based stock awards is also recognized in share-based compensation expense. Total share-based compensation expense (a component of Operating, selling, general and administrative expenses) was $11.1 million for the twelve week period ended November 18, 2017, and $9.8 million for the comparable prior year period. During the twelve week period ended November 18, 2017, 24,761 stock options were exercised at a weighted average exercise price of $284.04. In the comparable prior year period, 22,612 stock options were exercised at a weighted average exercise price of $301.09. The Company made stock option grants of 282,820 shares during the twelve week period ended November 18, 2017, and granted options to purchase 288,305 shares during the comparable prior year period. The weighted average fair value of the stock option awards granted during the twelve week periods ended November 18, 2017, and November 19, 2016, using the Black-Scholes-Merton multiple-option pricing valuation model, was $128.93 and $139.66 per share, respectively, using the following weighted average key assumptions: Twelve Weeks Ended November 18, 2017 November 19, 2016 Expected price volatility 20% 18% Risk-free interest rate 1.9% 1.2% Weighted average expected lives (in years) 5.1 5.1 Forfeiture rate 10% 10% Dividend yield 0% 0% See AutoZone’s Annual Report on Form 10-K For the twelve week period ended November 18, 2017, 802,195 stock options were excluded from the diluted earnings per share computation because they would have been anti-dilutive. For the comparable prior year period, 564,119 anti-dilutive shares were excluded from the dilutive earnings per share computation. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Nov. 18, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note C – Fair Value Measurements The Company defines fair value as the price received to transfer an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the fair value hierarchy, which prioritizes the inputs used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are set forth below: Level 1 inputs Level 2 inputs Level 3 inputs Financial Assets & Liabilities Measured at Fair Value on a Recurring Basis The Company’s assets and liabilities measured at fair value on a recurring basis were as follows: November 18, 2017 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 42,587 $ 447 $ — $ 43,034 Other long-term assets 54,467 27,614 — 82,081 $ 97,054 $ 28,061 $ — $ 125,115 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 At November 18, 2017, the fair value measurement amounts for assets and liabilities recorded in the accompanying Condensed Consolidated Balance Sheet consisted of short-term marketable securities of $43.0 million, which are included within Other current assets, and long-term marketable securities of $82.1 million, which are included in Other long-term assets. The Company’s marketable securities are typically valued at the closing price in the principal active market as of the last business day of the quarter or through the use of other market inputs relating to the securities, including benchmark yields and reported trades. The fair values of the marketable securities, by asset class, are described in “Note D – Marketable Securities.” Non-Financial Non-Recurring Certain non-financial non-recurring non-financial non-financial non-recurring Financial Instruments not Recognized at Fair Value The Company has financial instruments, including cash and cash equivalents, accounts receivable, other current assets and accounts payable. The carrying amounts of these financial instruments approximate fair value because of their short maturities. A discussion of the carrying values and fair values of the Company’s debt is included in “Note H – Financing.” |
Marketable Securities
Marketable Securities | 3 Months Ended |
Nov. 18, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Note D – Marketable Securities The Company’s basis for determining the cost of a security sold is the “Specific Identification Model.” Unrealized gains (losses) on marketable securities are recorded in Accumulated other comprehensive loss. The Company’s available-for-sale November 18, 2017 (in thousands) Amortized Basis Gross Gross Fair Value Corporate securities $ 75,729 $ 8 $ (302 ) $ 75,435 Government bonds 18,685 — (82 ) 18,603 Mortgage-backed securities 4,385 1 (52 ) 4,334 Asset-backed securities and other 26,813 1 (71 ) 26,743 $ 125,612 $ 10 $ (507 ) $ 125,115 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 The debt securities held at November 18, 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 the twelve week period ended November 18, 2017. The Company holds 102 securities that are in an unrealized loss position of approximately $507 thousand at November 18, 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 the intent and ability to hold the investments until maturity or until recovery of fair value. Included above in total marketable securities are $85.3 million of marketable securities transferred by the Company’s insurance captive to a trust account to secure its obligations to an insurance company related to future workers’ compensation and casualty losses. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Nov. 18, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note E – Derivative Financial Instruments At November 18, 2017, the Company had $9.6 million recorded in Accumulated other comprehensive loss related to realized losses associated with terminated interest rate swap and treasury rate lock derivatives which were designated as hedging instruments. Net losses are amortized into Interest expense over the remaining life of the associated debt. During the twelve week period ended November 18, 2017, the Company reclassified $509 thousand of net losses from Accumulated other comprehensive loss to Interest expense. In the comparable prior year period, the Company reclassified $509 thousand of net losses from Accumulated other comprehensive loss to Interest expense. The Company expects to reclassify $2.2 million of net losses from Accumulated other comprehensive loss to Interest expense over the next 12 months. |
Merchandise Inventories
Merchandise Inventories | 3 Months Ended |
Nov. 18, 2017 | |
Inventory Disclosure [Abstract] | |
Merchandise Inventories | Note F – Merchandise Inventories Merchandise inventories are stated at the lower of cost or market. Merchandise inventories include related purchasing, storage and handling costs. Inventory cost has been determined using the last-in, first-out |
Pension and Savings Plans
Pension and Savings Plans | 3 Months Ended |
Nov. 18, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Savings Plans | Note G – Pension and Savings Plans The components of net periodic pension expense related to the Company’s pension plans consisted of the following: Twelve Weeks Ended (in thousands) November 18, November 19, Interest cost $ 2,390 $ 2,385 Expected return on plan assets (4,384 ) (4,628 ) Amortization of net loss 2,477 3,201 Net periodic pension expense $ 483 $ 958 The Company makes contributions in amounts at least equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act of 2006. During the twelve week period ended November 18, 2017, the Company did not make contributions to its funded plan. The Company expects to contribute approximately $20.3 million to the plan during the remainder of fiscal 2018; however, a change to the expected cash funding may be impacted by a change in interest rates, a change in the actual or expected return on plan assets or through other plans initiated by management. |
Financing
Financing | 3 Months Ended |
Nov. 18, 2017 | |
Debt Disclosure [Abstract] | |
Financing | Note H – Financing The Company’s long-term debt consisted of the following: (in thousands) November 18, 2017 August 26, 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% 600,000 600,000 Commercial paper, weighted average interest rate of 1.44% and 1.44% at November 18, 2017 and August 26, 2017, respectively 1,056,100 1,155,100 Total debt before discounts and debt issuance costs 5,006,100 5,105,100 Less: Discounts and debt issuance costs 23,116 23,862 Long-term debt $ 4,982,984 $ 5,081,238 As of November 18, 2017, the commercial paper borrowings and the $250 million 7.125% Senior Notes due August 2018 were classified as long-term in the accompanying Consolidated Balance Sheets as the Company had the ability and intent to refinance on a long-term basis through available capacity in its revolving credit facilities. As of November 18, 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. The Company entered into a Master Extension, New Commitment and Amendment Agreement dated as of November 18, 2017 (the “Extension Amendment”) to the Third Amended and Restated Credit Agreement dated as of November 18, 2016, as amended, modified, extended or restated from time to time among AutoZone as Borrower, the several lenders from time to time party thereto, and Bank of America, N.A. as Administrative Agent and Swingline Lender, JPMorgan Chase Bank, N.A. as Syndication Agent (“JPMorgan”), arranged by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) and J.P. Morgan as Joint Lead Arrangers and Merrill Lynch, J.P. Morgan, SunTrust Robinson Humphrey, Inc., U.S. Bank National Association, Wells Fargo Securities, LLC and Barclays Capital as Joint Book Runners (the “Revolving Credit Agreement”). Under the Extension Amendment: (i) the Company’s borrowing capacity under the Revolving Credit Agreement was increased from $1.6 billion to $2.0 billion; (ii) the Company’s option to increase its borrowing capacity under the Revolving Credit Agreement was “refreshed” and the amount of such option remains at $400 million; the maximum borrowing under the Revolving Credit Agreement may, at the Company’s option, subject to lenders approval, be increased from $2.0 billion to $2.4 billion; (iii) the termination date of the Revolving Credit Agreement was extended from November 18, 2021 until November 18, 2022; and (iv) the Company has the option to make one additional written request of the lenders to extend the termination date then in effect for an additional one year. 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 On November 18, 2016, the Company amended and restated its existing 364-Day 364-Day (non-credit 364-Day The fair value of the Company’s debt was estimated at $5.052 billion as of November 18, 2017, and $5.171 billion as of August 26, 2017, 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 $69.1 million at November 18, 2017, and $90.3 million at August 26, 2017, which reflects their face amount, adjusted for any unamortized debt issuance costs and discounts. 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 we experience a change in control (as defined in the agreements). Our borrowings under our senior notes contain minimal covenants, primarily restrictions on liens. Under our 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 our 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 November 18, 2017, we were in compliance with all covenants and expect to remain in compliance with all covenants under our borrowing arrangements. |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Nov. 18, 2017 | |
Equity [Abstract] | |
Stock Repurchase Program | Note I – Stock Repurchase Program From January 1, 1998 to November 18, 2017, the Company has repurchased a total of 142.9 million shares of its common stock at an aggregate cost of $18.179 billion, including 597,430 shares of its common stock at an aggregate cost of $352.6 million during the twelve week period ended November 18, 2017. On March 21, 2017, the Board voted to increase the authorization by $750 million. This raised the total value of shares authorized to be repurchased to $18.65 billion. Considering the cumulative repurchases as of November 18, 2017, the Company had $471.1 million remaining under the Board’s authorization to repurchase its common stock. Subsequent to November 18, 2017, the Company has repurchased 13,002 shares of its common stock at an aggregate cost of $8.0 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Nov. 18, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note J – Accumulated Other Comprehensive Loss Accumulated other comprehensive loss includes certain adjustments to pension liabilities, foreign currency translation adjustments, certain activity for interest rate swaps and treasury rate locks that qualify as cash flow hedges and unrealized gains (losses) on available-for-sale (in thousands) Pension Liability Foreign (3) Net Unrealized Derivatives Total Balance at August 26, 2017 $ (72,376 ) $ (175,814 ) $ (11 ) $ (6,356 ) $ (254,557 ) Other comprehensive (loss) before reclassifications (1) — (43,217 ) (314 ) — (43,531 ) Amounts reclassified from Accumulated other comprehensive loss ( 1 ) 1,316 (2) — (2) (4) 323 (5) 1,637 Balance at November 18, 2017 $ (71,060 ) $ (219,031 ) $ (327 ) $ (6,033 ) $ (296,451 ) (in thousands) Pension Liability Foreign (3) Net Derivatives Total Balance at August 27, 2016 $ (88,890 ) $ (211,012 ) $ 120 $ (7,747 ) $ (307,529 ) Other comprehensive (loss) before reclassifications (1) — (40,591 ) (235 ) — (40,826 ) Amounts reclassified from Accumulated other comprehensive loss ( 1 ) 1,816 (2) — 6 (4) 330 (5) 2,152 Balance at November 19, 2016 $ (87,074 ) $ (251,603 ) $ (109 ) $ (7,417 ) $ (346,203 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Represents amortization of pension liability adjustments, net of taxes of $1,161 in fiscal 2018 and $1,385 in fiscal 2017, which is recorded in Operating, selling, general and administrative expenses on the Condensed Consolidated Statements of Income. See “Note G – Pension and Savings Plans” for further discussion. (3) Foreign currency is not shown net of additional U.S. tax as earnings of non-U.S. (4) Represents realized losses on marketable securities, net of taxes of $1 in fiscal 2018 and $3 in fiscal 2017, which is recorded in Operating, selling, general and administrative expenses on the Condensed Consolidated Statements of Income. See “Note D – Marketable Securities” for further discussion. (5) Represents gains and losses on derivatives, net of taxes of $186 in fiscal 2018 and $179 in fiscal 2017, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion. |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Nov. 18, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Note K – Goodwill and Intangibles As of November 18, 2017, there were no changes to the carrying amount of goodwill as described in our Annual Report on Form 10-K The carrying amounts of intangible assets are included in Other long-term assets as follows: (in thousands) Estimated Gross Accumulated Net Carrying Amortizing intangible assets: Technology 3-5 years $ 10,570 $ (9,994 ) $ 576 Noncompete agreements 5 years 1,300 (1,223 ) 77 Customer relationships 3-10 years 49,676 (26,161 ) 23,515 $ 61,546 $ (37,378 ) 24,168 Non-amortizing Trade name 26,900 Total intangible assets other than goodwill $ 51,068 Amortization expense of intangible assets for the twelve week periods ended November 18, 2017 and November 19, 2016 was $1.4 million and $2.0 million, respectively. |
Litigation
Litigation | 3 Months Ended |
Nov. 18, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Note L – Litigation In July 2014, the Company received a subpoena from the District Attorney of the County of Alameda, along with other environmental prosecutorial offices in the State of California, seeking documents and information related to the handling, storage and disposal of hazardous waste. The Company received notice that the District Attorney will seek injunctive and monetary relief. The Company is cooperating fully with the request and cannot predict the ultimate outcome of these efforts, although the Company has accrued all amounts it believes to be probable and reasonably estimable. The Company does not believe the ultimate resolution of this matter will have a material adverse effect on its consolidated financial position, results of operations or cash flows. The Company is involved in various other legal proceedings incidental to the conduct of its business, including, 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 its consolidated financial condition, results of operations or cash flows. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Nov. 18, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note M – Segment Reporting The Company’s four operating segments (Domestic Auto Parts, Mexico, Brazil and IMC) are aggregated as one reportable segment: Auto Parts Locations. The criteria the Company used to identify the reportable segment are primarily the nature of the products the Company sells and the operating results that are regularly reviewed by the Company’s chief operating decision maker to make decisions about the resources to be allocated to the business units and to assess performance. The accounting policies of the Company’s reportable segment are the same as those described in Note A in its Annual Report on Form 10-K The Auto Parts Locations segment is a retailer and distributor of automotive parts and accessories through the Company’s 6,049 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 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, The Company evaluates its reportable segment primarily on the basis of net sales and segment profit, which is defined as gross profit. Segment results for the periods presented were as follows: Twelve Weeks Ended (in thousands) November 18, November 19, Net Sales Auto Parts Locations $ 2,510,128 $ 2,389,561 Other 79,003 78,284 Total $ 2,589,131 $ 2,467,845 Segment Profit Auto Parts Locations $ 1,322,444 $ 1,257,767 Other 43,404 43,775 Gross profit 1,365,848 1,301,542 Operating, selling, general and administrative expenses (897,094 ) (842,640 ) Interest expense, net (38,889 ) (33,306 ) Income before income taxes $ 429,865 $ 425,596 |
General (Policies)
General (Policies) | 3 Months Ended |
Nov. 18, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period | Operating results for the twelve weeks ended November 18, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 25, 2018. Each of the first three quarters of AutoZone’s fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarters for fiscal 2018 and 2017 each have 16 weeks. Additionally, the Company’s business is somewhat seasonal in nature, with the highest sales generally occurring during the months of February through September and the lowest sales generally occurring in the months of December and January. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers 2014-09, In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 2016-02 right-of-use 2016-02 In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory 2016-16 2016-16 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) | 3 Months Ended |
Nov. 18, 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 weighted average fair value of the stock option awards granted during the twelve week periods ended November 18, 2017, and November 19, 2016, using the Black-Scholes-Merton multiple-option pricing valuation model, was $128.93 and $139.66 per share, respectively, using the following weighted average key assumptions: Twelve Weeks Ended November 18, 2017 November 19, 2016 Expected price volatility 20% 18% Risk-free interest rate 1.9% 1.2% Weighted average expected lives (in years) 5.1 5.1 Forfeiture rate 10% 10% Dividend yield 0% 0% |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 18, 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: November 18, 2017 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 42,587 $ 447 $ — $ 43,034 Other long-term assets 54,467 27,614 — 82,081 $ 97,054 $ 28,061 $ — $ 125,115 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 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Nov. 18, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Marketable Securities | The Company’s available-for-sale November 18, 2017 (in thousands) Amortized Basis Gross Gross Fair Value Corporate securities $ 75,729 $ 8 $ (302 ) $ 75,435 Government bonds 18,685 — (82 ) 18,603 Mortgage-backed securities 4,385 1 (52 ) 4,334 Asset-backed securities and other 26,813 1 (71 ) 26,743 $ 125,612 $ 10 $ (507 ) $ 125,115 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 |
Pension and Savings Plans (Tabl
Pension and Savings Plans (Tables) | 3 Months Ended |
Nov. 18, 2017 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Expense | The components of net periodic pension expense related to the Company’s pension plans consisted of the following: Twelve Weeks Ended (in thousands) November 18, November 19, Interest cost $ 2,390 $ 2,385 Expected return on plan assets (4,384 ) (4,628 ) Amortization of net loss 2,477 3,201 Net periodic pension expense $ 483 $ 958 |
Financing (Tables)
Financing (Tables) | 3 Months Ended |
Nov. 18, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s long-term debt consisted of the following: (in thousands) November 18, 2017 August 26, 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% 600,000 600,000 Commercial paper, weighted average interest rate of 1.44% and 1.44% at November 18, 2017 and August 26, 2017, respectively 1,056,100 1,155,100 Total debt before discounts and debt issuance costs 5,006,100 5,105,100 Less: Discounts and debt issuance costs 23,116 23,862 Long-term debt $ 4,982,984 $ 5,081,238 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Nov. 18, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss for the twelve week periods ended November 18, 2017 and November 19, 2016 consisted of the following: (in thousands) Pension Liability Foreign (3) Net Unrealized Derivatives Total Balance at August 26, 2017 $ (72,376 ) $ (175,814 ) $ (11 ) $ (6,356 ) $ (254,557 ) Other comprehensive (loss) before reclassifications (1) — (43,217 ) (314 ) — (43,531 ) Amounts reclassified from Accumulated other comprehensive loss ( 1 ) 1,316 (2) — (2) (4) 323 (5) 1,637 Balance at November 18, 2017 $ (71,060 ) $ (219,031 ) $ (327 ) $ (6,033 ) $ (296,451 ) (in thousands) Pension Liability Foreign (3) Net Derivatives Total Balance at August 27, 2016 $ (88,890 ) $ (211,012 ) $ 120 $ (7,747 ) $ (307,529 ) Other comprehensive (loss) before reclassifications (1) — (40,591 ) (235 ) — (40,826 ) Amounts reclassified from Accumulated other comprehensive loss ( 1 ) 1,816 (2) — 6 (4) 330 (5) 2,152 Balance at November 19, 2016 $ (87,074 ) $ (251,603 ) $ (109 ) $ (7,417 ) $ (346,203 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Represents amortization of pension liability adjustments, net of taxes of $1,161 in fiscal 2018 and $1,385 in fiscal 2017, which is recorded in Operating, selling, general and administrative expenses on the Condensed Consolidated Statements of Income. See “Note G – Pension and Savings Plans” for further discussion. (3) Foreign currency is not shown net of additional U.S. tax as earnings of non-U.S. (4) Represents realized losses on marketable securities, net of taxes of $1 in fiscal 2018 and $3 in fiscal 2017, which is recorded in Operating, selling, general and administrative expenses on the Condensed Consolidated Statements of Income. See “Note D – Marketable Securities” for further discussion. (5) Represents gains and losses on derivatives, net of taxes of $186 in fiscal 2018 and $179 in fiscal 2017, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion. |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Nov. 18, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Amounts of Intangible Assets | The carrying amounts of intangible assets are included in Other long-term assets as follows: (in thousands) Estimated Gross Accumulated Net Carrying Amortizing intangible assets: Technology 3-5 years $ 10,570 $ (9,994 ) $ 576 Noncompete agreements 5 years 1,300 (1,223 ) 77 Customer relationships 3-10 years 49,676 (26,161 ) 23,515 $ 61,546 $ (37,378 ) 24,168 Non-amortizing Trade name 26,900 Total intangible assets other than goodwill $ 51,068 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Nov. 18, 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. Segment results for the periods presented were as follows: Twelve Weeks Ended (in thousands) November 18, November 19, Net Sales Auto Parts Locations $ 2,510,128 $ 2,389,561 Other 79,003 78,284 Total $ 2,589,131 $ 2,467,845 Segment Profit Auto Parts Locations $ 1,322,444 $ 1,257,767 Other 43,404 43,775 Gross profit 1,365,848 1,301,542 Operating, selling, general and administrative expenses (897,094 ) (842,640 ) Interest expense, net (38,889 ) (33,306 ) Income before income taxes $ 429,865 $ 425,596 |
General - Additional Informatio
General - Additional Information (Detail) | 3 Months Ended |
Nov. 18, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of reporting periods | Operating results for the twelve weeks ended November 18, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 25, 2018. Each of the first three quarters of AutoZone’s fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarters for fiscal 2018 and 2017 each have 16 weeks. Additionally, the Company’s business is somewhat seasonal in nature, with the highest sales generally occurring during the months of February through September and the lowest sales generally occurring in the months of December and January. |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Nov. 18, 2017 | Nov. 19, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense related to stock options and share purchase plans | $ 11,086 | $ 9,787 |
Stock options exercised - Shares | 24,761 | 22,612 |
Stock options exercised - Weighted average exercise price | $ 284.04 | $ 301.09 |
Weighted average grant date fair value of options granted | $ 128.93 | $ 139.66 |
Stock options granted | 282,820 | 288,305 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Anti-dilutive shares excluded from the computation of earnings per share | 802,195 | 564,119 |
Share-Based Payments - Weighted
Share-Based Payments - Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense (Detail) | 3 Months Ended | |
Nov. 18, 2017 | Nov. 19, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected price volatility | 20.00% | 18.00% |
Risk-free interest rate | 1.90% | 1.20% |
Weighted average expected lives (in years) | 5 years 1 month 6 days | 5 years 1 month 6 days |
Forfeiture rate | 10.00% | 10.00% |
Dividend yield | 0.00% | 0.00% |
Fair Value Measurements - Compa
Fair Value Measurements - Company's Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Nov. 18, 2017 | Aug. 26, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 125,115 | $ 100,873 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 43,034 | 18,573 |
Other long-term assets | 82,081 | 82,300 |
Total | 125,115 | 100,873 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 42,587 | 18,453 |
Other long-term assets | 54,467 | 53,319 |
Total | 97,054 | 71,772 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 447 | 120 |
Other long-term assets | 27,614 | 28,981 |
Total | $ 28,061 | $ 29,101 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Nov. 18, 2017 | Aug. 26, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | $ 43,034 | $ 18,573 |
Long-term marketable securities | $ 82,081 | $ 82,300 |
Marketable Securities - Availab
Marketable Securities - Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Nov. 18, 2017 | Aug. 26, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | $ 125,612 | $ 100,885 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 10 | 152 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (507) | (164) |
Available-For-Sale Marketable Securities, Fair Value | 125,115 | 100,873 |
Corporate Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 75,729 | 39,917 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 8 | 73 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (302) | (13) |
Available-For-Sale Marketable Securities, Fair Value | 75,435 | 39,977 |
Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 18,685 | 31,076 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 49 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (82) | (74) |
Available-For-Sale Marketable Securities, Fair Value | 18,603 | 31,051 |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 4,385 | 4,850 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 1 | 2 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (52) | (42) |
Available-For-Sale Marketable Securities, Fair Value | 4,334 | 4,810 |
Asset-Backed Securities and Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 26,813 | 25,042 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 1 | 28 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (71) | (35) |
Available-For-Sale Marketable Securities, Fair Value | $ 26,743 | $ 25,035 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Nov. 18, 2017USD ($)Securities | Aug. 26, 2017USD ($) | |
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 | 102 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | $ 507 | $ 164 |
Marketable securities transferred | $ 85,300 |
Derivative Financial Instrume37
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 18, 2017 | Nov. 19, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative losses recorded in Accumulated other comprehensive loss | $ 9,600 | |
Net derivative losses amortized into Interest expense | 509 | $ 509 |
Net derivative loss expected to be reclassified over next 12 months | $ 2,200 |
Merchandise Inventories - Addit
Merchandise Inventories - Additional Information (Detail) - USD ($) $ in Millions | Nov. 18, 2017 | Aug. 26, 2017 |
Inventory Disclosure [Abstract] | ||
Unrecorded adjustment for LIFO value in excess of replacement value | $ 425.9 | $ 414.9 |
Pension and Savings Plans - Net
Pension and Savings Plans - Net Periodic Benefit Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 18, 2017 | Nov. 19, 2016 | |
Retirement Benefits [Abstract] | ||
Interest cost | $ 2,390 | $ 2,385 |
Expected return on plan assets | (4,384) | (4,628) |
Amortization of net loss | 2,477 | 3,201 |
Net periodic pension expense | $ 483 | $ 958 |
Pension and Savings Plans - Add
Pension and Savings Plans - Additional Information (Detail) | 3 Months Ended |
Nov. 18, 2017USD ($) | |
Retirement Benefits [Abstract] | |
Annual contributions by the Company to pension plans | $ 0 |
Expected contributions to the plans by the Company in fiscal 2018 | $ 20,300,000 |
Financing - Schedule of Debt (D
Financing - Schedule of Debt (Detail) - USD ($) $ in Thousands | Nov. 18, 2017 | Aug. 26, 2017 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 1,056,100 | $ 1,155,100 |
Total debt before discounts and debt issuance costs | 5,006,100 | 5,105,100 |
Less: Discounts and debt issuance costs | 23,116 | 23,862 |
Long-term debt | 4,982,984 | 5,081,238 |
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 | $ 600,000 |
Financing - Schedule of Debt (P
Financing - Schedule of Debt (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Nov. 18, 2017 | Aug. 26, 2017 | |
Commercial paper, weighted average interest rate of 1.44% and 1.44% at November 18, 2017 and August 26, 2017, respectively [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate of commercial paper | 1.44% | 1.44% |
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% |
Effective interest rate | 2.62% | 2.62% |
Debt instrument maturity, month and year | 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% |
Effective interest rate | 3.36% | 3.36% |
Debt instrument maturity, month and year | 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% |
Effective interest rate | 3.83% | 3.83% |
Debt instrument maturity, month and year | 2027-06 | 2027-06 |
Financing - Additional Informat
Financing - Additional Information (Detail) - USD ($) | Nov. 18, 2016 | Nov. 18, 2017 | Aug. 26, 2017 |
Debt Instrument [Line Items] | |||
Remaining borrowing capacity under revolving credit facility | $ 1,997,000,000 | ||
Amount available under credit facility | 2,000,000,000 | ||
Fair value of the Company's debt | 5,052,000,000 | $ 5,171,000,000 | |
Excess (shortfall) of fair value of debt over (from) carrying value | 69,100,000 | 90,300,000 | |
Third Amended and Restated Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Amount available under credit facility | $ 1,600,000,000 | ||
New 364-Day Revolving Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Maximum amount available under credit facility | $ 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. 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 expired on November 17, 2017 and the Company did not renew this revolving credit facility. | ||
Extended expiration of credit facility | 1 year | ||
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. | ||
364-Day Revolving Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Maximum amount available under credit facility | $ 500,000,000 | ||
Master Extension Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Amount available under credit facility | $ 2,000,000,000 | ||
Revolving credit agreement, available additional borrowing capacity | 400,000,000 | ||
Maximum amount available under credit facility | $ 2,400,000,000 | ||
Credit facility expiration date | Nov. 18, 2022 | ||
Credit Agreement description | 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. | ||
Extended expiration of credit facility | 1 year | ||
Letters of credit, outstanding | $ 3,300,000 | ||
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 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) | Mar. 21, 2017 | Dec. 14, 2017 | Nov. 18, 2017 | Nov. 19, 2016 | Nov. 18, 2017 |
Stock Repurchase Program [Line Items] | |||||
Stock repurchased cumulative, shares | 597,430 | 142,900,000 | |||
Purchase of treasury stock | $ 352,572,000 | $ 362,634,000 | $ 18,179,000,000 | ||
Repurchased shares of common stock at an aggregate cost | 352,600,000 | ||||
Increase in authorization of stock repurchase, value | $ 750,000,000 | ||||
Stock repurchase authorized amended value | $ 18,650,000,000 | ||||
Remaining value authorized for share repurchases | $ 471,100,000 | $ 471,100,000 | |||
Subsequent Events [Member] | |||||
Stock Repurchase Program [Line Items] | |||||
Stock repurchased cumulative, shares | 13,002 | ||||
Repurchased shares of common stock at an aggregate cost | $ 8,000,000 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 18, 2017 | Nov. 19, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ (1,428,377) | |
Ending Balance | (1,525,099) | |
Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (72,376) | $ (88,890) |
Amounts reclassified from Accumulated other comprehensive loss | 1,316 | 1,816 |
Ending Balance | (71,060) | (87,074) |
Foreign Currency [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (175,814) | (211,012) |
Other comprehensive (loss) before reclassifications | (43,217) | (40,591) |
Ending Balance | (219,031) | (251,603) |
Net Unrealized Gain (Loss) on Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (11) | 120 |
Other comprehensive (loss) before reclassifications | (314) | (235) |
Amounts reclassified from Accumulated other comprehensive loss | (2) | 6 |
Ending Balance | (327) | (109) |
Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (6,356) | (7,747) |
Amounts reclassified from Accumulated other comprehensive loss | 323 | 330 |
Ending Balance | (6,033) | (7,417) |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (254,557) | (307,529) |
Other comprehensive (loss) before reclassifications | (43,531) | (40,826) |
Amounts reclassified from Accumulated other comprehensive loss | 1,637 | 2,152 |
Ending Balance | $ (296,451) | $ (346,203) |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 18, 2017 | Nov. 19, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pension liability adjustments, taxes | $ 1,161 | $ 1,385 |
Unrealized gains (losses) on marketable securities, taxes | 170 | 144 |
Net derivative activities, taxes | 186 | 179 |
Reclassified from Accumulated Other Comprehensive Income [Member] | Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pension liability adjustments, taxes | 1,161 | 1,385 |
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 | 1 | 3 |
Reclassified from Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net derivative activities, taxes | $ 186 | $ 179 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Carrying Amounts of Intangible Assets (Detail) $ in Thousands | 3 Months Ended |
Nov. 18, 2017USD ($) | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | $ 61,546 |
Finite Lived, Accumulated Amortization | (37,378) |
Finite Lived, Net Carrying Amount | 24,168 |
Total intangible assets other than goodwill, Net Carrying Amount | 51,068 |
Technology [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | 10,570 |
Finite Lived, Accumulated Amortization | (9,994) |
Finite Lived, Net Carrying Amount | $ 576 |
Technology [Member] | Minimum [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Technology [Member] | Maximum [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
Noncompete Agreements [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
Finite Lived, Gross Carrying Amount | $ 1,300 |
Finite Lived, Accumulated Amortization | (1,223) |
Finite Lived, Net Carrying Amount | 77 |
Customer Relationships [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | 49,676 |
Finite Lived, Accumulated Amortization | (26,161) |
Finite Lived, Net Carrying Amount | $ 23,515 |
Customer Relationships [Member] | Minimum [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
Trade Names [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Non-amortizing intangible asset - Trade name, Net Carrying Amount | $ 26,900 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 18, 2017 | Nov. 19, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense of intangible assets | $ 1.4 | $ 2 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Nov. 18, 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 | 6,049 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 18, 2017 | Nov. 19, 2016 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 2,589,131 | $ 2,467,845 |
Gross profit | 1,365,848 | 1,301,542 |
Operating, selling, general and administrative expenses | (897,094) | (842,640) |
Interest expense, net | (38,889) | (33,306) |
Income before income taxes | 429,865 | 425,596 |
Auto Parts Locations [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,510,128 | 2,389,561 |
Gross profit | 1,322,444 | 1,257,767 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 79,003 | 78,284 |
Gross profit | $ 43,404 | $ 43,775 |