Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Aug. 25, 2018 | Oct. 22, 2018 | Feb. 10, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 25, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AZO | ||
Entity Registrant Name | AUTOZONE INC | ||
Entity Central Index Key | 866,787 | ||
Current Fiscal Year End Date | --08-25 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 25,559,353 | ||
Entity Public Float | $ 19,597,989,296 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 11,221,077 | $ 10,888,676 | $ 10,635,676 |
Cost of sales, including warehouse and delivery expenses | 5,247,331 | 5,149,056 | 5,026,940 |
Gross profit | 5,973,746 | 5,739,620 | 5,608,736 |
Operating, selling, general and administrative expenses | 4,162,890 | 3,659,551 | 3,548,341 |
Operating profit | 1,810,856 | 2,080,069 | 2,060,395 |
Interest expense, net | 174,527 | 154,580 | 147,681 |
Income before income taxes | 1,636,329 | 1,925,489 | 1,912,714 |
Income tax expense | 298,793 | 644,620 | 671,707 |
Net income | $ 1,337,536 | $ 1,280,869 | $ 1,241,007 |
Weighted average shares for basic earnings per share | 26,970 | 28,430 | 29,889 |
Effect of dilutive stock equivalents | 454 | 635 | 599 |
Weighted average shares for diluted earnings per share | 27,424 | 29,065 | 30,488 |
Basic earnings per share | $ 49.59 | $ 45.05 | $ 41.52 |
Diluted earnings per share | $ 48.77 | $ 44.07 | $ 40.70 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,337,536 | $ 1,280,869 | $ 1,241,007 | |
Other comprehensive income (loss): | ||||
Pension liability adjustments, net of taxes | [1] | 72,376 | 16,514 | (18,095) |
Foreign currency translation adjustments | (53,085) | 35,198 | (39,524) | |
Unrealized (losses) gains on marketable securities, net of taxes | [2] | (862) | (131) | 146 |
Net derivative activity, net of taxes | [3] | 323 | 1,391 | (538) |
Total other comprehensive income (loss) | 18,752 | 52,972 | (58,011) | |
Comprehensive income | $ 1,356,288 | $ 1,333,841 | $ 1,182,996 | |
[1] | Pension liability adjustments are presented net of taxes of $46,523 in 2018, which includes $13,122 related to the adoption of ASU 2018-02, $10,542 in 2017 and $11,394 in 2016. | |||
[2] | Unrealized (losses) gains on marketable securities are presented net of taxes of $234 in 2018, $69 in 2017 and $79 in 2016 | |||
[3] | Net derivative activities are presented net of taxes of $1,882 in 2018, which includes $1,367 related to the adoption of ASU 2018-02, $814 in 2017 and $315 in 2016 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Pension liability adjustments, taxes | $ 46,523 | $ 10,542 | $ 11,394 |
Unrealized (losses) gains on marketable securities, taxes | 234 | 69 | 79 |
Net derivative activities, taxes | 1,882 | $ 814 | $ 315 |
Accounting Standards Update 2018-02 [Member] | |||
Pension liability adjustments, taxes | 13,122 | ||
Net derivative activities, taxes | $ 1,367 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 217,824 | $ 293,270 |
Accounts receivable | 258,136 | 280,733 |
Merchandise inventories | 3,943,670 | 3,882,086 |
Other current assets | 216,239 | 155,166 |
Total current assets | 4,635,869 | 4,611,255 |
Property and equipment: | ||
Land | 1,107,092 | 1,056,187 |
Buildings and improvements | 3,698,010 | 3,423,056 |
Equipment | 1,841,330 | 1,704,653 |
Leasehold improvements | 504,656 | 470,998 |
Construction in progress | 140,535 | 218,299 |
Property and equipment | 7,291,623 | 6,873,193 |
Less: Accumulated depreciation and amortization | 3,073,223 | 2,842,175 |
Property and equipment, net | 4,218,400 | 4,031,018 |
Goodwill | 302,645 | 391,887 |
Deferred income taxes | 34,620 | 35,308 |
Other long-term assets | 155,446 | 190,313 |
Other long-term assets, total | 492,711 | 617,508 |
Assets | 9,346,980 | 9,259,781 |
Current liabilities: | ||
Accounts payable | 4,409,372 | 4,168,940 |
Accrued expenses and other | 606,894 | 563,350 |
Income taxes payable | 12,415 | 34,011 |
Total current liabilities | 5,028,681 | 4,766,301 |
Long-term debt | 5,005,930 | 5,081,238 |
Deferred income taxes | 285,204 | 371,111 |
Other long-term liabilities | 547,520 | 469,508 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, authorized 1,000 shares; no shares issued | ||
Common stock, par value $.01 per share, authorized 200,000 shares; 27,530 shares issued and 25,742 shares outstanding in 2018 and 28,735 shares issued and 27,833 shares outstanding in 2017 | 275 | 287 |
Additional paid-in capital | 1,155,426 | 1,086,671 |
Retained deficit | (1,208,824) | (1,642,387) |
Accumulated other comprehensive loss | (235,805) | (254,557) |
Treasury stock, at cost | (1,231,427) | (618,391) |
Total stockholders' deficit | (1,520,355) | (1,428,377) |
Liabilities and Stockholders' Deficit | $ 9,346,980 | $ 9,259,781 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 25, 2018 | 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 | 27,530,000 | 28,735,000 |
Common stock, shares outstanding | 25,742,000 | 27,833,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 1,337,536 | $ 1,280,869 | $ 1,241,007 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment and intangibles | 345,084 | 323,051 | 297,397 |
Amortization of debt origination fees | 8,393 | 8,369 | 7,980 |
Deferred income taxes | (124,261) | 74,902 | 45,019 |
Share-based compensation expense | 43,674 | 38,244 | 39,825 |
Pension plan contributions | (11,596) | (17,761) | (52,721) |
Pension termination charges | 130,263 | ||
Asset impairment | 193,162 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | 7,534 | 7,795 | (41,447) |
Merchandise inventories | (188,782) | (236,807) | (227,518) |
Accounts payable and accrued expenses | 319,609 | 82,614 | 271,198 |
Income taxes payable | (6,438) | (3,659) | 50,122 |
Other, net | 26,114 | 12,995 | 10,198 |
Net cash provided by operating activities | 2,080,292 | 1,570,612 | 1,641,060 |
Cash flows from investing activities: | |||
Capital expenditures | (521,788) | (553,832) | (488,791) |
Purchase of intangibles | (10,000) | ||
Proceeds from sale of assets | 35,279 | ||
Purchase of marketable securities | (104,536) | (85,711) | (130,170) |
Proceeds from sale of marketable securities | 69,644 | 82,993 | 120,472 |
(Payments) proceeds from disposal of capital assets and other, net | (459) | 2,951 | 2,654 |
Net cash used in investing activities | (521,860) | (553,599) | (505,835) |
Cash flows from financing activities: | |||
Net proceeds from (payments of) commercial paper | 170,200 | (42,400) | 149,900 |
Proceeds from issuance of debt | 600,000 | 650,000 | |
Repayment of debt | (250,000) | (400,000) | (500,000) |
Net proceeds from sale of common stock | 89,715 | 54,686 | 80,289 |
Purchase of treasury stock | (1,592,013) | (1,071,649) | (1,452,462) |
Payments of capital lease obligations | (49,004) | (47,604) | (36,320) |
Other, net | (1,052) | (7,362) | (7,935) |
Net cash used in financing activities | (1,632,154) | (914,329) | (1,116,528) |
Effect of exchange rate changes on cash | (1,724) | 852 | (4,272) |
Net (decrease) increase in cash and cash equivalents | (75,446) | 103,536 | 14,425 |
Cash and cash equivalents at beginning of year | 293,270 | 189,734 | 175,309 |
Cash and cash equivalents at end of year | 217,824 | 293,270 | 189,734 |
Supplemental cash flow information: | |||
Interest paid, net of interest cost capitalized | 163,965 | 135,331 | 136,731 |
Income taxes paid | 427,161 | 579,925 | 582,384 |
Assets acquired through capital lease | $ 98,782 | $ 84,011 | $ 94,052 |
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. 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 | |||||
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) | (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 | ||||
Net income | $ 1,337,536 | 1,337,536 | ||||
Total other comprehensive income (loss) | 18,752 | 18,752 | ||||
Purchase of treasury stock | $ (1,592,013) | (1,592,013) | ||||
Retirement of treasury shares | $ (15) | (60,500) | (918,462) | 978,977 | ||
Retirement of treasury shares, shares | (1,512) | (1,512) | ||||
Issuance of common stock under stock options and stock purchase plans | $ 89,715 | $ 3 | 89,712 | |||
Issuance of common stock under stock options and stock purchase plans, Shares | 307 | |||||
Adoption of ASU 2018-02 | 14,489 | 14,489 | ||||
Share-based compensation expense | 39,543 | 39,543 | ||||
Balance at Aug. 25, 2018 | $ (1,520,355) | $ 275 | $ 1,155,426 | $ (1,208,824) | $ (235,805) | $ (1,231,427) |
Balance, shares at Aug. 25, 2018 | 27,530 | 27,530 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Deficit (Parenthetical) - shares shares in Thousands | 12 Months Ended | 248 Months Ended | ||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | Aug. 25, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Purchase of treasury stock, shares | 2,398 | 1,495 | 1,903 | 144,700 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Aug. 25, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note A – Significant Accounting Policies Business: non-automotive non-automotive 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 $98.8 million and $148.4 million were held outside of the U.S. as of August 25, 2018, and August 26, 2017, respectively, and were generally utilized to support liquidity needs in foreign operations. Accounts Receivable: Merchandise Inventories: last-in, first-out The difference between LIFO cost and replacement cost, which will be reduced upon experiencing price inflation on the Company’s merchandise purchases, was $452.4 million at August 25, 2018, and $414.9 million at August 26, 2017. Marketable Securities: available-for-sale. 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 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 $95.2 million in fiscal 2018, $93.1 million in fiscal 2017, and $98.3 million in fiscal 2016. Vendor promotional funds, which reduced advertising expense, amounted to $25.3 million in fiscal 2018, $28.3 million in fiscal 2017, and $21.4 million in fiscal 2016. 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 Pre-opening Earnings per Share: Share-Based Payments: Risk and Uncertainties: Recently Adopted Accounting Pronouncements: In March 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 2018-05 one-year In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax effects from Accumulated Other Comprehensive Income 2018-02 2018-02 Recently Issued Accounting Pronouncements: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers 2014-09, 2014-09, In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 2016-02 right-of-use 2016-02 non-cash 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 |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Aug. 25, 2018 | |
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 $43.7 million for fiscal 2018, $38.2 million for fiscal 2017, and $39.8 million for fiscal 2016. As of August 25, 2018, share-based compensation expense for unvested awards not yet recognized in earnings is $33.1 million and will be recognized over a weighted average period of 1.82 years. As a result of the adoption of the new accounting guidance for share-based payments in 2017, 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 for fiscal 2016. 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 non-employee 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 ten-year 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 one-fourth non-employee The 2011 Program replaced the 2003 Comp Plan and the 2003 Option Plan. Under the 2003 Comp Plan, non-employee one-half Under the 2003 Option Plan, each non-employee non-employee During fiscal 2014, the Company adopted the 2014 Director Compensation Program (the “Program”), which states that non-employee non-employee non-employee Non-employee 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 25, August 26, August 27, Expected price volatility 20 % 18 % 18 % Risk-free interest rates 1.9 % 1.2 % 1.5 % Weighted average expected lives (in years) 5.1 5.1 5.1 Forfeiture rate 10 % 10 % 10 % 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 $129.12 during fiscal 2018, $139.80 during fiscal 2017, and $156.20 during fiscal 2016. The intrinsic value of options exercised was $123.1 million in fiscal 2018, $93.9 million in fiscal 2017, and $178.0 million in fiscal 2016. The total fair value of options vested was $35.7 million in fiscal 2018, $34.7 million in fiscal 2017, and $32.2 million in fiscal 2016. The Company generally issues new shares when options are exercised. The following table summarizes information about stock option activity for the year ended August 25, 2018: Number of Shares Weighted Average Exercise Weighted- (in years) Aggregate Intrinsic (in thousands) Outstanding – August 26, 2017 1,798,055 $ 493.18 Granted 284,335 587.57 Exercised (297,616 ) 298.02 Cancelled (77,908 ) 672.61 Outstanding – August 25, 2018 1,706,866 534.74 6.06 $ 402,631 Exercisable 1,014,819 446.07 4.73 329,352 Expected to vest 622,842 664.77 8.02 38,387 Available for future grants 686,577 The Company recognized $2.1 million in expense related to the discount on the selling of shares to employees and executives under various share purchase plans in fiscal 2018, $1.8 million in fiscal 2017 and $2.0 million in fiscal 2016. 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, 14,523 shares were sold to employees in fiscal 2018, 14,205 shares were sold to employees in fiscal 2017, and 12,662 shares were sold to employees in fiscal 2016. The Company repurchased 11,816 shares at market value in fiscal 2018, 12,455 shares in fiscal 2017 and 12,460 shares in fiscal 2016 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 25, 2018, 163,777 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 1,840 shares in fiscal 2018, 1,865 shares in fiscal 2017 and 1,943 shares in fiscal 2016. At August 25, 2018, 238,048 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. 25, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other | Note C – Accrued Expenses and Other Accrued expenses and other consisted of the following: (in thousands) August 25, August 26, Accrued compensation, related payroll taxes and benefits $ 195,004 $ 181,591 Property, sales, and other taxes 106,050 98,829 Medical and casualty insurance claims (current portion) 88,761 84,756 Capital lease obligations 52,290 48,134 Accrued interest 36,902 41,047 Accrued gift cards 27,401 24,192 Accrued sales and warranty returns 20,025 19,520 Other 80,461 65,281 $ 606,894 $ 563,350 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 retained limits are per claim and are $2.0 million for workers’ compensation, $3.0 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. 25, 2018 | |
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 25, August 26, August 27, Domestic $ 1,412,963 $ 1,737,401 $ 1,737,727 International 223,366 188,088 174,987 $ 1,636,329 $ 1,925,489 $ 1,912,714 The provision for income tax expense consisted of the following: Year Ended (in thousands) August 25, August 26, August 27, Current: Federal $ 328,963 $ 487,492 $ 534,621 State 36,389 31,733 39,223 International 57,702 50,493 52,844 423,054 569,718 626,688 Deferred: Federal (131,926 ) 72,208 48,509 State 8,167 7,769 9,453 International (502 ) (5,075 ) (12,943 ) (124,261 ) 74,902 45,019 Income tax expense $ 298,793 $ 644,620 $ 671,707 A reconciliation of the provision for income taxes to the amount computed by applying the federal statutory tax rate to income before income taxes is as follows: Year Ended (in thousands) August 25, August 26, August 27, Federal tax at statutory U.S. income tax rate 25.9 % 35.0 % 35.0 % State income taxes, net 1.9 % 1.3 % 1.6 % Transition tax 1.6 % — — Share-based compensation (1.6 %) (1.4 %) — Impact of tax reform (9.6 %) — — Other 0.1 % (1.4 %) (1.5 %) Effective tax rate 18.3 % 33.5 % 35.1 % On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Reform”) was enacted into law. Tax Reform significantly revises the U.S. federal corporate income tax by, among other things, lowering the statutory federal corporate rate from 35% to 21%, eliminating certain deductions, imposing a mandatory one-time As a result of the decrease in the federal tax rate from 35% to 21%, effective January 1, 2018, the Company has computed its income tax expense for the year ended August 25, 2018 using a blended federal tax rate of 25.9%, which provided a benefit of $119.2 million on fiscal 2018 earnings before taxes. The Company’s federal statutory tax rate will be 21% for the year ending August 31, 2019 and each subsequent year. For the year ended August 25, 2018 and August 26, 2017, the Company recognized excess tax benefits from stock option exercises of $31.3 million and $31.2 million, respectively. The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of GAAP in situations where a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of Tax Reform. To the extent that a company’s accounting for certain income tax effects of Tax Reform is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of Tax Reform. The ultimate impact may differ from provisional amounts recorded, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, and additional regulatory guidance that may be issued. The accounting must be completed within one year from the enactment date of Tax Reform. As a result of the statutory rate changes of Tax Reform, the Company must remeasure its deferred tax assets and liabilities using the federal tax rate that will apply when the related temporary differences are expected to reverse. During the year ended August 25, 2018, the Company recorded a provisional tax benefit of $157.3 million related to the remeasurement of deferred taxes as a result of Tax Reform. The Company is continuing to analyze certain aspects of Tax Reform and is refining its calculations which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. As part of the transition to the new territorial tax system, Tax Reform imposes a one-time The other provisions of Tax Reform are either immaterial or not applicable for the year ended August 25, 2018. The provisions applicable for the year ended August 25, 2018, including the deductibility of certain expenditures, are provisional amounts that may also change as new guidance and clarifications are issued. Significant components of the Company’s deferred tax assets and liabilities were as follows: (in thousands) August 25, August 26, Deferred tax assets: Net operating loss and credit carryforwards $ 47,190 $ 48,062 Accrued benefits 62,867 96,664 Other 46,375 56,052 Total deferred tax assets 156,432 200,778 Less: Valuation allowances (19,619 ) (13,501 ) Net deferred tax assets 136,813 187,277 Deferred tax liabilities: Property and equipment (101,049 ) (117,580 ) Inventory (242,138 ) (333,422 ) Prepaid expenses (42,019 ) (60,920 ) Other (2,191 ) (11,158 ) Total deferred tax liabilities (387,397 ) (523,080 ) Net deferred tax liabilities $ (250,584 ) $ (335,803 ) The Company has historically asserted its intention to indefinitely reinvest foreign current and accumulated earnings and other basis differences in certain foreign subsidiaries. During the year ended August 25, 2018, the Company has reevaluated its assertion as a result of the enactment of Tax Reform and, with few exceptions, no longer considers the current and accumulated earnings to be indefinitely reinvested in our foreign subsidiaries. Where necessary, withholding tax provisions resulting from foreign distributions of current and accumulated earnings have been considered in the Company’s provision for income taxes. The Company maintains its assertion related to other basis differences in foreign subsidiaries. It is impracticable for the Company to determine the amount of unrecognized deferred tax liability on these indefinitely reinvested basis differences. At August 25, 2018 and August 26, 2017, the Company had deferred tax assets of $30.9 million and $30.8 million, respectively, from net operating loss (“NOL”) carryforwards available to reduce future taxable income totaling approximately $219.1 million and $198.2 million, respectively. Certain NOLs have no expiration date and others will expire, if not utilized, in various years from fiscal 2019 through 2038. At August 25, 2018 and August 26, 2017, the Company had deferred tax assets for income tax credit carryforwards of $16.3 million and $17.2 million, respectively. Income tax credit carryforwards will expire, if not utilized, in various years from fiscal 2023 through 2028. At August 25, 2018 and August 26, 2017, the Company had a valuation allowance of $19.6 million and $13.5 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 25, August 26, Beginning balance $ 22,201 $ 27,726 Additions based on tax positions related to the current year 8,184 7,089 Additions for tax positions of prior years 1,404 278 Reductions for tax positions of prior years (482 ) (6,954 ) Reductions due to settlements (1,930 ) (1,964 ) Reductions due to statute of limitations (3,300 ) (3,974 ) Ending balance $ 26,077 $ 22,201 Included in the August 25, 2018 and the August 26, 2017 balances are $13.5 million and $9.9 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 $0.7 million and $1.2 million accrued for the payment of interest and penalties associated with unrecognized tax benefits at August 25, 2018 and August 26, 2017, 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 U.S. federal, U.S. state and local, or Non-U.S. Non-U.S. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Aug. 25, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note E – 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. In accordance with ASC 820, Fair Value Measurements and Disclosures 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 25, 2018 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 55,711 $ 3,733 $ — $ 59,444 Other long-term assets 58,973 16,259 — 75,232 $ 114,684 $ 19,992 $ — $ 134,676 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 August 25, 2018, the fair value measurement amounts for assets and liabilities recorded in the accompanying Consolidated Balance Sheet consisted of short-term marketable securities of $59.4 million, which are included within Other current assets and long-term marketable securities of $75.2 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 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 I – Financing.” |
Marketable Securities
Marketable Securities | 12 Months Ended |
Aug. 25, 2018 | |
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 August 25, 2018 (in thousands) Amortized Basis Gross Gross Fair Value Corporate securities $ 50,306 $ — $ (684 ) $ 49,622 Government bonds 28,777 — (173 ) 28,604 Mortgage-backed securities 3,248 — (90 ) 3,158 Asset-backed securities and other 53,445 — (153 ) 53,292 $ 135,776 $ — $ (1,100 ) $ 134,676 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 August 25, 2018, 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 2018, 2017 or 2016. The Company holds 121 securities that are in an unrealized loss position of approximately $1.1 million at August 25, 2018. 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 $85.6 million and $85.4 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 25, 2018 and August 26, 2017, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Aug. 25, 2018 | |
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 (in thousands) Pension Liability Foreign (4) Net Derivatives Total Balance at August 27, 2016 $ (88,890 ) $ (211,012 ) $ 120 $ (7,747 ) $ (307,529 ) Other comprehensive income (loss) before reclassifications 8,046 35,198 (60 ) — 43,184 Amounts reclassified from Accumulated other comprehensive loss (1) 8,468 (3) — (71 ) (5) 1,391 (6) 9,788 Balance at August 26, 2017 (72,376 ) (175,814 ) (11 ) (6,356 ) (254,557 ) Other comprehensive income (loss) before reclassifications 77,774 (53,085 ) (800 ) — 23,889 Amounts reclassified from Accumulated other comprehensive loss (1) 7,724 (3) — (62 ) (5) 1,690 (6) 9,352 Adoption of ASU 2018- 02 (2) (13,122 ) — — (1,367 ) (14,489 ) Balance at August 25, 2018 $ — $ (228,899 ) $ (873 ) $ (6,033 ) $ (235,805 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss (AOCL). (2) Represents the tax effects from deferred tax items reclassified from AOCL to retained earnings related to the adoption of ASU 2018-02. (3) The amounts reclassified from AOCL associated with our pension plans have been reclassified to Operating, selling, general and administrative expenses on the Consolidated Statements of Income as a result of the termination of the plans. See “Note L – Pension and Savings Plans” for further discussion. (4) Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. non-U.S. (5) Represents realized losses on marketable securities, net of taxes of $234 in fiscal 2018 and $38 in fiscal 2017, which is recorded in Operating, selling, general, and administrative expenses on the Consolidated Statements of Income. See “Note F – Marketable Securities” for further discussion. (6) Represents gains and losses on derivatives, net of taxes of $515 in fiscal 2018 and $814 in fiscal 2017, which is recorded in Interest expense, net, on the Consolidated Statements of Income. See “Note H – Derivative Financial Instruments” for further discussion. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Aug. 25, 2018 | |
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 25, 2018, the Company had $7.9 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 2018 and 2017, the Company reclassified $2.2 million of net losses from Accumulated other comprehensive loss to Interest expense and expects the same level of expense in fiscal 2019. |
Financing
Financing | 12 Months Ended |
Aug. 25, 2018 | |
Debt Disclosure [Abstract] | |
Financing | Note I – Financing The Company’s debt consisted of the following: (in thousands) August 25, 2018 August 26, 2017 7.125% Senior Notes due August 2018, effective interest rate of 7.28% $ — $ 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 2.29% and 1.44% at August 25, 2018 and August 26, 2017, respectively 1,325,300 1,155,100 Total debt before discounts and debt issuance costs 5,025,300 5,105,100 Less: Discounts and debt issuance costs 19,370 23,862 Long-term debt $ 5,005,930 $ 5,081,238 As of August 25, 2018, the commercial paper borrowings and the $250 million 1.625% Senior Notes due April 2019 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 25, 2018, 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 (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 remained 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 year. Under the Revolving Credit Agreement, 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 Agreement, depending upon the Company’s senior, unsecured, (non-credit The Revolving Credit Agreement requires 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 25, 2018 was 5.8:1. As of August 25, 2018, the Company had no outstanding borrowings under each of the revolving credit facilities, and $3.3 million of outstanding letters of credit under the 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 Revolving Credit Agreement. As of August 25, 2018, the Company had $71.0 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 $32.5 million in letters of credit outstanding as of August 25, 2018. 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 allowed 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. 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 25, 2018, 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 2019 $ 1,575,300 2020 — 2021 750,000 2022 500,000 2023 800,000 Thereafter 1,400,000 Subtotal 5,025,300 Discount and debt issuance costs 19,370 Total Debt $ 5,005,930 The fair value of the Company’s debt was estimated at $4.948 billion as of August 25, 2018, 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 less than the carrying value of debt by $57.5 million at August 25, 2018, which reflects face amount, adjusted for any unamortized debt issuance costs and discounts. At August 26, 2017, the fair value was greater than the carrying value of debt by $90.3 million. |
Interest Expense
Interest Expense | 12 Months Ended |
Aug. 25, 2018 | |
Banking and Thrift, Interest [Abstract] | |
Interest Expense | Note J – Interest Expense Net interest expense consisted of the following: Year Ended (in thousands) August 25, August 26, August 27, Interest expense $ 181,668 $ 159,329 $ 150,961 Interest income (5,636 ) (3,502 ) (2,371 ) Capitalized interest (1,505 ) (1,247 ) (909 ) $ 174,527 $ 154,580 $ 147,681 |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Aug. 25, 2018 | |
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 amended on March 20, 2018 to increase the repurchase authorization to $19.65 billion from $18.65 billion. From January 1998 to August 25, 2018, the Company has repurchased a total of 144.7 million shares at an aggregate cost of $19.418 billion. The Company’s share repurchase activity consisted of the following: Year Ended (in thousands) August 25, August 26, August 27, Amount $ 1,592,013 $ 1,071,649 $ 1,452,462 Shares 2,398 1,495 1,903 During fiscal year 2018, the Company retired 1.5 million shares of treasury stock which had previously been repurchased under the Company’s share repurchase program. The retirement increased Retained deficit by $918.5 million and decreased Additional paid-in paid-in On September 26, 2018, the Board voted to increase the authorization by $1.25 billion. This brings the total value of the shares authorized to $20.9 billion. Subsequent to August 25, 2018, the Company has repurchased 346,979 shares of common stock at an aggregate cost of $263.4 million. Considering the cumulative repurchases and the increase in authorization subsequent to August 25, 2018, the Company has $1.22 billion remaining under the Board’s authorization to repurchase its common stock. |
Pension and Savings Plans
Pension and Savings Plans | 12 Months Ended |
Aug. 25, 2018 | |
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, resulting in pension plan participants earning no new benefits under the plan formula and no new participants joining the pension plan. On January 1, 2003, the Company’s supplemental defined benefit pension plan for certain highly compensated employees was also frozen, resulting in pension plan participants earning no new benefits under the plan formula and no new participants joining the pension plan. On December 19, 2017, the Board of Directors approved a resolution to terminate both of the Company’s pension plans, effective March 15, 2018. The Company offered plan participants the option to receive an annuity purchased from an insurance carrier or a lump-sum lump-sum non-cash The following table sets forth the plans’ funded status and amounts recognized in the Company’s Consolidated Balance Sheets: (in thousands) August 25, August 26, Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 314,724 $ 328,511 Interest cost 10,356 10,335 Actuarial (gains) losses (676 ) (8,746 ) Annuities purchased (157,589 ) — Benefits and settlements paid (166,815 ) (15,376 ) Benefit obligations at end of year $ — $ 314,724 Change in Plan Assets: Fair value of plan assets at beginning of year $ 316,267 $ 289,386 Actual return on plan assets (3,428 ) 24,496 Employer contributions 11,596 17,761 Annuities purchased (157,589 ) — Benefits and settlements paid (166,815 ) (15,376 ) Asset reversion upon termination (31 ) — Fair value of plan assets at end of year $ — $ 316,267 Amount Recognized in the Statement of Financial Position: Current liabilities $ — $ (283 ) Long-term assets — 8,686 Long-term liabilities — (6,860 ) Net amount recognized $ — $ 1,543 Amount Recognized in Accumulated Other Comprehensive Loss and not yet reflected in Net Periodic Benefit Cost: Net actuarial loss $ — $ (118,889 ) Accumulated other comprehensive loss $ — $ (118,889 ) Net periodic benefit expense consisted of the following: Year Ended (in thousands) August 25, August 26, August 27, Interest cost $ 10,356 $ 10,335 $ 11,272 Expected return on plan assets (18,997 ) (20,056 ) (16,512 ) Recognized net actuarial losses 10,736 13,873 10,506 Settlement loss 130,263 — — Net periodic benefit expense $ 132,358 $ 4,152 $ 5,266 The blended actuarial assumptions used in determining the projected benefit obligation include the following: Year Ended August 25, August 26, August 27, Discount rate to determine benefit obligation 3.86 % 3.86 % 3.72 % Discount rate to determine net interest cost 3.36 % 3.21 % 3.90 % Expected long-term rate of return on plan assets 6.00 % 7.00 % 7.00 % 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 $23.1 million in fiscal 2018, $21.0 million in fiscal 2017, and $19.7 million in fiscal 2016. |
Sale of Assets
Sale of Assets | 12 Months Ended |
Aug. 25, 2018 | |
Property, Plant and Equipment [Abstract] | |
Sale of Assets | Note M – Sale of Assets During the second quarter of fiscal 2018, the Company determined that the approximate fair value less costs to sell its IMC and AutoAnything businesses was significantly lower than the carrying value of the net assets based on recent offers received and recorded impairment charges totaling $193.2 million within Operating, selling, general and administrative expenses in its Condensed Consolidated Statements of Income. The Company recorded an impairment charge of $93.6 million for its IMC business, which is reflected as a component of Auto Parts Locations in its segment reporting. Impairment charges for AutoAnything, which is reflected as a component of the Other category in the Company’s segment reporting, totaled $99.6 million. During the third quarter of fiscal 2018, the Company completed the IMC and AutoAnything transactions for total consideration that approximated the remaining net book value at the closing date. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Aug. 25, 2018 | |
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 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 Goodwill added through acquisition — — — Goodwill adjustments (24,058 ) (65,184 ) (89,242 ) Net balance as of August 25, 2018 $ 302,645 $ — $ 302,645 During the second quarter of fiscal 2018, the Company recorded impairment charges related to its IMC and AutoAnything businesses as the Company determined that the approximate fair value less costs to sell the businesses was significantly lower than the carrying value of the net assets. The impairment charge for the IMC business is reflected as a component of Auto Parts Locations, and the impairment charge for AutoAnything is reflected as a component of the Other category in our segment reporting. See “Note M – Sale of Assets” for further discussion. The Company performs its annual goodwill and intangibles impairment test in the fourth quarter of each fiscal year. In the fourth quarter of fiscal 2018, the Company concluded its remaining goodwill was not impaired. In the fourth quarter of fiscal 2017, the Company concluded that its goodwill was not impaired. Total accumulated goodwill impairment as of August 25, 2018 is $107.5 million compared to $18.3 million as of August 26, 2017. The carrying amounts of intangible assets are included in Other long-term assets as follows: August 25, 2018 (in thousands) Estimated Gross Accumulated Net Carrying Amortizing intangible assets: Technology 3-5 $ 870 $ (870 ) $ — Customer relationships 3-10 years 29,376 (19,587 ) 9,789 $ 30,246 $ (20,457 ) 9,789 Total intangible assets other than goodwill $ 9,789 August 26, 2017 (in thousands) Estimated Gross Accumulated Net Carrying Amortizing intangible assets: Technology 3-5 $ 10,570 $ (9,994 ) $ 576 Noncompete agreements 5 years 1,300 (1,223 ) 77 Customer relationships 3-10 49,676 (24,730 ) 24,946 $ 61,546 $ (35,947 ) 25,599 Non-amortizing Trade names 26,900 Total intangible assets other than goodwill $ 52,499 During the second quarter of fiscal 2018, the Company recorded $26.9 million of impairment charges related to AutoAnything’s and IMC’s trade names as the Company determined that the approximate fair value less costs to sell the businesses was significantly lower than the carrying value of the net assets. See “Note M – Sale of Assets” for further discussion. Trade names at August 25, 2018 and August 26, 2017 reflect a total accumulated impairment of $31.0 million and $4.1 million, respectively. Amortization expense of intangible assets for the years ended August 25, 2018 and August 26, 2017 was $5.1 million and $8.5 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 25, 2018, is estimated as follows: (in thousands) Total 2019 $ 4,173 2020 4,173 2021 1,443 Thereafter — $ 9,789 |
Leases
Leases | 12 Months Ended |
Aug. 25, 2018 | |
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 $315.6 million in fiscal 2018, $302.9 million in fiscal 2017, and $280.5 million in fiscal 2016. 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 $139.6 million on August 25, 2018, and $130.2 million on August 26, 2017. 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 25, 2018, the Company had capital lease assets of $156.8 million, net of accumulated amortization of $79.9 million, and capital lease obligations of $154.3 million, of which $52.3 million is classified as Accrued expenses and other as it represents the current portion of these obligations. 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. Future minimum annual rental commitments under non-cancelable (in thousands) Operating Capital 2019 $ 300,866 $ 52,290 2020 289,007 50,777 2021 267,298 38,290 2022 244,786 21,211 2023 215,237 3,118 Thereafter 823,969 — Total minimum payments required $ 2,141,163 165,686 Less: Interest (11,383 ) Present value of minimum capital lease payments $ 154,303 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 25, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note P – Commitments and Contingencies Construction commitments, primarily for new stores, totaled approximately $41.3 million at August 25, 2018. The Company had $106.8 million in outstanding standby letters of credit and $23.6 million in surety bonds as of August 25, 2018, 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 Sheets. The standby letters of credit and surety bonds arrangements have automatic renewal clauses. |
Litigation
Litigation | 12 Months Ended |
Aug. 25, 2018 | |
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. Arising out of an April 2016 letter from the California Air Resources Board (“CARB”), one of the Company’s formerly-owned subsidiaries was sued in March 2018 by CARB seeking penalties, among other relief, for alleged violations of the California Health and Safety Code, Title 13 of the California Code of Regulations and the California Vehicle Code related to the sale and advertisement of certain aftermarket motor vehicle pollution control parts in the State of California. On February 26, 2018, the Company completed its transaction to sell substantially all of the assets, net of assumed liabilities related to its AutoAnything operations. As part of the sale, the Company retained the liability related to this lawsuit. The Company is cooperating fully with the lawsuit and cannot predict the ultimate outcome of these efforts. 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. 25, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note R – Segment Reporting The Company’s operating segments (Domestic Auto Parts, Mexico and Brazil; and IMC results through April 4, 2018) 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 – Significant Accounting Policies.” The Auto Parts Locations segment is a retailer and distributor of automotive parts and accessories through the Company’s 6,202 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. The following table shows segment results for the following fiscal years: Year Ended (in thousands) August 25, August 26, August 27, Net Sales: Auto Parts Locations $ 10,951,498 $ 10,523,272 $ 10,261,112 Other 269,579 365,404 374,564 Total $ 11,221,077 $ 10,888,676 $ 10,635,676 Segment Profit: Auto Parts Locations $ 5,805,561 $ 5,544,494 $ 5,410,477 Other 168,185 195,126 198,259 Gross profit 5,973,746 5,739,620 5,608,736 Operating, selling, general and administrative expenses (1) (4,162,890 ) (3,659,551 ) (3,548,341 ) Interest expense, net (174,527 ) (154,580 ) (147,681 ) Income before income taxes $ 1,636,329 $ 1,925,489 $ 1,912,714 Segment Assets: Auto Parts Locations $ 9,231,021 $ 8,964,371 $ 8,351,883 Other 115,959 295,410 247,904 Total $ 9,346,980 $ 9,259,781 $ 8,599,787 Capital Expenditures: Auto Parts Locations $ 499,762 $ 533,304 $ 470,631 Other 22,026 20,528 18,160 Total $ 521,788 $ 553,832 $ 488,791 Auto Parts Locations Sales by Product Grouping: Failure $ 5,338,890 $ 5,100,702 $ 4,913,423 Maintenance items 3,914,546 3,774,386 3,721,240 Discretionary 1,698,062 1,648,184 1,626,449 Auto Parts Locations net sales $ 10,951,498 $ 10,523,272 $ 10,261,112 (1) Operating, selling, general and administrative expenses for fiscal 2018 include $130.3 million related to pension termination charges and $193.2 million related to impairment charges. |
Quarterly Summary
Quarterly Summary | 12 Months Ended |
Aug. 25, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary | Note S – Quarterly Summary (1) (Unaudited) Twelve Weeks Ended Sixteen Weeks Ended (in thousands, except per share data) November 18, February 10, (3)(5) May 5, 2018 (5) August 25, (2)(4)(5) Net sales $ 2,589,131 $ 2,413,026 $ 2,660,152 $ 3,558,769 Gross profit 1,365,848 1,277,046 1,422,974 1,907,879 Operating profit 468,754 205,098 545,765 591,239 Income before income taxes 429,865 165,758 503,807 536,899 Net income 281,003 289,530 366,721 400,282 Basic earnings per share 10.17 10.58 13.62 15.27 Diluted earnings per share 10.00 10.38 13.42 15.02 Twelve Weeks Ended Sixteen Weeks Ended (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 278,125 237,145 331,700 433,899 Basic earnings per share 9.61 8.28 11.70 15.52 Diluted earnings per share 9.36 8.08 11.44 15.27 (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 2018 and fiscal 2017 are based on a 16-week 12-week (3) The second quarter of fiscal 2018 includes impairment charges of $193.2 million. See “Note M – Sale of Assets.” (4) The fourth quarter of fiscal 2018 includes pension termination charges of $130.3 million. See “Note L - Pension and Savings Plans.” (5) Net income of the second, third and fourth quarter of fiscal 2018 benefitted from changes due to Tax Reform. See “Note D – Income Taxes.” |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 25, 2018 | |
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 $98.8 million and $148.4 million were held outside of the U.S. as of August 25, 2018, and August 26, 2017, respectively, and were generally utilized to support liquidity needs in foreign operations. |
Accounts Receivable | Accounts Receivable: |
Merchandise Inventories | Merchandise Inventories: last-in, first-out The difference between LIFO cost and replacement cost, which will be reduced upon experiencing price inflation on the Company’s merchandise purchases, was $452.4 million at August 25, 2018, and $414.9 million at August 26, 2017. |
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: |
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 $95.2 million in fiscal 2018, $93.1 million in fiscal 2017, and $98.3 million in fiscal 2016. Vendor promotional funds, which reduced advertising expense, amounted to $25.3 million in fiscal 2018, $28.3 million in fiscal 2017, and $21.4 million in fiscal 2016. |
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 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 2018-05 one-year In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax effects from Accumulated Other Comprehensive Income 2018-02 2018-02 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers 2014-09, 2014-09, In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 2016-02 right-of-use 2016-02 non-cash 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 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
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 25, August 26, August 27, Expected price volatility 20 % 18 % 18 % Risk-free interest rates 1.9 % 1.2 % 1.5 % Weighted average expected lives (in years) 5.1 5.1 5.1 Forfeiture rate 10 % 10 % 10 % Dividend yield 0 % 0 % 0 % |
Stock Option Activity | The following table summarizes information about stock option activity for the year ended August 25, 2018: Number of Shares Weighted Average Exercise Weighted- (in years) Aggregate Intrinsic (in thousands) Outstanding – August 26, 2017 1,798,055 $ 493.18 Granted 284,335 587.57 Exercised (297,616 ) 298.02 Cancelled (77,908 ) 672.61 Outstanding – August 25, 2018 1,706,866 534.74 6.06 $ 402,631 Exercisable 1,014,819 446.07 4.73 329,352 Expected to vest 622,842 664.77 8.02 38,387 Available for future grants 686,577 |
Accrued Expenses and Other (Tab
Accrued Expenses and Other (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses and other consisted of the following: (in thousands) August 25, August 26, Accrued compensation, related payroll taxes and benefits $ 195,004 $ 181,591 Property, sales, and other taxes 106,050 98,829 Medical and casualty insurance claims (current portion) 88,761 84,756 Capital lease obligations 52,290 48,134 Accrued interest 36,902 41,047 Accrued gift cards 27,401 24,192 Accrued sales and warranty returns 20,025 19,520 Other 80,461 65,281 $ 606,894 $ 563,350 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
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 25, August 26, August 27, Domestic $ 1,412,963 $ 1,737,401 $ 1,737,727 International 223,366 188,088 174,987 $ 1,636,329 $ 1,925,489 $ 1,912,714 |
Provision for Income Tax Expense | The provision for income tax expense consisted of the following: Year Ended (in thousands) August 25, August 26, August 27, Current: Federal $ 328,963 $ 487,492 $ 534,621 State 36,389 31,733 39,223 International 57,702 50,493 52,844 423,054 569,718 626,688 Deferred: Federal (131,926 ) 72,208 48,509 State 8,167 7,769 9,453 International (502 ) (5,075 ) (12,943 ) (124,261 ) 74,902 45,019 Income tax expense $ 298,793 $ 644,620 $ 671,707 |
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 to income before income taxes is as follows: Year Ended (in thousands) August 25, August 26, August 27, Federal tax at statutory U.S. income tax rate 25.9 % 35.0 % 35.0 % State income taxes, net 1.9 % 1.3 % 1.6 % Transition tax 1.6 % — — Share-based compensation (1.6 %) (1.4 %) — Impact of tax reform (9.6 %) — — Other 0.1 % (1.4 %) (1.5 %) Effective tax rate 18.3 % 33.5 % 35.1 % |
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 25, August 26, Deferred tax assets: Net operating loss and credit carryforwards $ 47,190 $ 48,062 Accrued benefits 62,867 96,664 Other 46,375 56,052 Total deferred tax assets 156,432 200,778 Less: Valuation allowances (19,619 ) (13,501 ) Net deferred tax assets 136,813 187,277 Deferred tax liabilities: Property and equipment (101,049 ) (117,580 ) Inventory (242,138 ) (333,422 ) Prepaid expenses (42,019 ) (60,920 ) Other (2,191 ) (11,158 ) Total deferred tax liabilities (387,397 ) (523,080 ) Net deferred tax liabilities $ (250,584 ) $ (335,803 ) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in thousands) August 25, August 26, Beginning balance $ 22,201 $ 27,726 Additions based on tax positions related to the current year 8,184 7,089 Additions for tax positions of prior years 1,404 278 Reductions for tax positions of prior years (482 ) (6,954 ) Reductions due to settlements (1,930 ) (1,964 ) Reductions due to statute of limitations (3,300 ) (3,974 ) Ending balance $ 26,077 $ 22,201 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
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 25, 2018 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 55,711 $ 3,733 $ — $ 59,444 Other long-term assets 58,973 16,259 — 75,232 $ 114,684 $ 19,992 $ — $ 134,676 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) | 12 Months Ended |
Aug. 25, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Marketable Securities | The Company’s available-for-sale August 25, 2018 (in thousands) Amortized Basis Gross Gross Fair Value Corporate securities $ 50,306 $ — $ (684 ) $ 49,622 Government bonds 28,777 — (173 ) 28,604 Mortgage-backed securities 3,248 — (90 ) 3,158 Asset-backed securities and other 53,445 — (153 ) 53,292 $ 135,776 $ — $ (1,100 ) $ 134,676 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 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss consisted of the following: (in thousands) Pension Liability Foreign (4) Net Derivatives Total Balance at August 27, 2016 $ (88,890 ) $ (211,012 ) $ 120 $ (7,747 ) $ (307,529 ) Other comprehensive income (loss) before reclassifications 8,046 35,198 (60 ) — 43,184 Amounts reclassified from Accumulated other comprehensive loss (1) 8,468 (3) — (71 ) (5) 1,391 (6) 9,788 Balance at August 26, 2017 (72,376 ) (175,814 ) (11 ) (6,356 ) (254,557 ) Other comprehensive income (loss) before reclassifications 77,774 (53,085 ) (800 ) — 23,889 Amounts reclassified from Accumulated other comprehensive loss (1) 7,724 (3) — (62 ) (5) 1,690 (6) 9,352 Adoption of ASU 2018- 02 (2) (13,122 ) — — (1,367 ) (14,489 ) Balance at August 25, 2018 $ — $ (228,899 ) $ (873 ) $ (6,033 ) $ (235,805 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss (AOCL). (2) Represents the tax effects from deferred tax items reclassified from AOCL to retained earnings related to the adoption of ASU 2018-02. (3) The amounts reclassified from AOCL associated with our pension plans have been reclassified to Operating, selling, general and administrative expenses on the Consolidated Statements of Income as a result of the termination of the plans. See “Note L – Pension and Savings Plans” for further discussion. (4) Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. non-U.S. (5) Represents realized losses on marketable securities, net of taxes of $234 in fiscal 2018 and $38 in fiscal 2017, which is recorded in Operating, selling, general, and administrative expenses on the Consolidated Statements of Income. See “Note F – Marketable Securities” for further discussion. (6) Represents gains and losses on derivatives, net of taxes of $515 in fiscal 2018 and $814 in fiscal 2017, 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. 25, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consisted of the following: (in thousands) August 25, 2018 August 26, 2017 7.125% Senior Notes due August 2018, effective interest rate of 7.28% $ — $ 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 2.29% and 1.44% at August 25, 2018 and August 26, 2017, respectively 1,325,300 1,155,100 Total debt before discounts and debt issuance costs 5,025,300 5,105,100 Less: Discounts and debt issuance costs 19,370 23,862 Long-term debt $ 5,005,930 $ 5,081,238 |
Scheduled Maturities of Debt | Scheduled maturities of debt are as follows: (in thousands) Scheduled 2019 $ 1,575,300 2020 — 2021 750,000 2022 500,000 2023 800,000 Thereafter 1,400,000 Subtotal 5,025,300 Discount and debt issuance costs 19,370 Total Debt $ 5,005,930 |
Interest Expense (Tables)
Interest Expense (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Banking and Thrift, Interest [Abstract] | |
Net Interest Expense | Net interest expense consisted of the following: Year Ended (in thousands) August 25, August 26, August 27, Interest expense $ 181,668 $ 159,329 $ 150,961 Interest income (5,636 ) (3,502 ) (2,371 ) Capitalized interest (1,505 ) (1,247 ) (909 ) $ 174,527 $ 154,580 $ 147,681 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Equity [Abstract] | |
Summarize Company's Share Repurchase Activity | The Company’s share repurchase activity consisted of the following: Year Ended (in thousands) August 25, August 26, August 27, Amount $ 1,592,013 $ 1,071,649 $ 1,452,462 Shares 2,398 1,495 1,903 |
Pension and Savings Plans (Tabl
Pension and Savings Plans (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Retirement Benefits [Abstract] | |
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 25, August 26, Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 314,724 $ 328,511 Interest cost 10,356 10,335 Actuarial (gains) losses (676 ) (8,746 ) Annuities purchased (157,589 ) — Benefits and settlements paid (166,815 ) (15,376 ) Benefit obligations at end of year $ — $ 314,724 Change in Plan Assets: Fair value of plan assets at beginning of year $ 316,267 $ 289,386 Actual return on plan assets (3,428 ) 24,496 Employer contributions 11,596 17,761 Annuities purchased (157,589 ) — Benefits and settlements paid (166,815 ) (15,376 ) Asset reversion upon termination (31 ) — Fair value of plan assets at end of year $ — $ 316,267 Amount Recognized in the Statement of Financial Position: Current liabilities $ — $ (283 ) Long-term assets — 8,686 Long-term liabilities — (6,860 ) Net amount recognized $ — $ 1,543 Amount Recognized in Accumulated Other Comprehensive Loss and not yet reflected in Net Periodic Benefit Cost: Net actuarial loss $ — $ (118,889 ) Accumulated other comprehensive loss $ — $ (118,889 ) |
Net Periodic Benefit Expense | Net periodic benefit expense consisted of the following: Year Ended (in thousands) August 25, August 26, August 27, Interest cost $ 10,356 $ 10,335 $ 11,272 Expected return on plan assets (18,997 ) (20,056 ) (16,512 ) Recognized net actuarial losses 10,736 13,873 10,506 Settlement loss 130,263 — — Net periodic benefit expense $ 132,358 $ 4,152 $ 5,266 |
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 25, August 26, August 27, Discount rate to determine benefit obligation 3.86 % 3.86 % 3.72 % Discount rate to determine net interest cost 3.36 % 3.21 % 3.90 % Expected long-term rate of return on plan assets 6.00 % 7.00 % 7.00 % |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
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 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 Goodwill added through acquisition — — — Goodwill adjustments (24,058 ) (65,184 ) (89,242 ) Net balance as of August 25, 2018 $ 302,645 $ — $ 302,645 |
Schedule of Carrying Amounts of Intangible Assets | The carrying amounts of intangible assets are included in Other long-term assets as follows: August 25, 2018 (in thousands) Estimated Gross Accumulated Net Carrying Amortizing intangible assets: Technology 3-5 $ 870 $ (870 ) $ — Customer relationships 3-10 years 29,376 (19,587 ) 9,789 $ 30,246 $ (20,457 ) 9,789 Total intangible assets other than goodwill $ 9,789 August 26, 2017 (in thousands) Estimated Gross Accumulated Net Carrying Amortizing intangible assets: Technology 3-5 $ 10,570 $ (9,994 ) $ 576 Noncompete agreements 5 years 1,300 (1,223 ) 77 Customer relationships 3-10 49,676 (24,730 ) 24,946 $ 61,546 $ (35,947 ) 25,599 Non-amortizing Trade names 26,900 Total intangible assets other than goodwill $ 52,499 |
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 25, 2018, is estimated as follows: (in thousands) Total 2019 $ 4,173 2020 4,173 2021 1,443 Thereafter — $ 9,789 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Leases [Abstract] | |
Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases and Capital Leases | Future minimum annual rental commitments under non-cancelable (in thousands) Operating Capital 2019 $ 300,866 $ 52,290 2020 289,007 50,777 2021 267,298 38,290 2022 244,786 21,211 2023 215,237 3,118 Thereafter 823,969 — Total minimum payments required $ 2,141,163 165,686 Less: Interest (11,383 ) Present value of minimum capital lease payments $ 154,303 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
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 25, August 26, August 27, Net Sales: Auto Parts Locations $ 10,951,498 $ 10,523,272 $ 10,261,112 Other 269,579 365,404 374,564 Total $ 11,221,077 $ 10,888,676 $ 10,635,676 Segment Profit: Auto Parts Locations $ 5,805,561 $ 5,544,494 $ 5,410,477 Other 168,185 195,126 198,259 Gross profit 5,973,746 5,739,620 5,608,736 Operating, selling, general and administrative expenses (1) (4,162,890 ) (3,659,551 ) (3,548,341 ) Interest expense, net (174,527 ) (154,580 ) (147,681 ) Income before income taxes $ 1,636,329 $ 1,925,489 $ 1,912,714 Segment Assets: Auto Parts Locations $ 9,231,021 $ 8,964,371 $ 8,351,883 Other 115,959 295,410 247,904 Total $ 9,346,980 $ 9,259,781 $ 8,599,787 Capital Expenditures: Auto Parts Locations $ 499,762 $ 533,304 $ 470,631 Other 22,026 20,528 18,160 Total $ 521,788 $ 553,832 $ 488,791 Auto Parts Locations Sales by Product Grouping: Failure $ 5,338,890 $ 5,100,702 $ 4,913,423 Maintenance items 3,914,546 3,774,386 3,721,240 Discretionary 1,698,062 1,648,184 1,626,449 Auto Parts Locations net sales $ 10,951,498 $ 10,523,272 $ 10,261,112 (1) Operating, selling, general and administrative expenses for fiscal 2018 include $130.3 million related to pension termination charges and $193.2 million related to impairment charges. |
Quarterly Summary (Tables)
Quarterly Summary (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary | Twelve Weeks Ended Sixteen Weeks Ended (in thousands, except per share data) November 18, February 10, (3)(5) May 5, 2018 (5) August 25, (2)(4)(5) Net sales $ 2,589,131 $ 2,413,026 $ 2,660,152 $ 3,558,769 Gross profit 1,365,848 1,277,046 1,422,974 1,907,879 Operating profit 468,754 205,098 545,765 591,239 Income before income taxes 429,865 165,758 503,807 536,899 Net income 281,003 289,530 366,721 400,282 Basic earnings per share 10.17 10.58 13.62 15.27 Diluted earnings per share 10.00 10.38 13.42 15.02 Twelve Weeks Ended Sixteen Weeks Ended (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 278,125 237,145 331,700 433,899 Basic earnings per share 9.61 8.28 11.70 15.52 Diluted earnings per share 9.36 8.08 11.44 15.27 (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 2018 and fiscal 2017 are based on a 16-week 12-week (3) The second quarter of fiscal 2018 includes impairment charges of $193.2 million. See “Note M – Sale of Assets.” (4) The fourth quarter of fiscal 2018 includes pension termination charges of $130.3 million. See “Note L - Pension and Savings Plans.” (5) Net income of the second, third and fourth quarter of fiscal 2018 benefitted from changes due to Tax Reform. See “Note D – Income Taxes.” |
Significant Accounting polici_3
Significant Accounting policies - Additional Information (Detail) $ in Thousands | Dec. 31, 2017 | Aug. 25, 2018USD ($)Store | Aug. 25, 2018USD ($)Store | Aug. 25, 2018USD ($)StoreProductVendorshares | Aug. 26, 2017USD ($)shares | Aug. 27, 2016USD ($)shares | Aug. 29, 2015USD ($) |
Significant Accounting Policies [Line Items] | |||||||
Number of stores with commercial sales program | Store | 4,741 | 4,741 | 4,741 | ||||
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 2018, 2017 and 2016 represented 52 weeks. | ||||||
Cash and cash equivalents | $ 217,824 | $ 217,824 | $ 217,824 | $ 293,270 | $ 189,734 | $ 175,309 | |
Allowances for uncollectible accounts | 6,100 | 6,100 | 6,100 | 5,900 | |||
Unrecorded adjustment for LIFO value in excess of replacement value | 452,400 | 452,400 | 452,400 | 414,900 | |||
Deferred rent | 139,600 | $ 139,600 | $ 139,600 | 130,200 | |||
Measure of income tax benefit for uncertain income tax positions | More than 50% | ||||||
Advertising expense, net of vendor promotional funds | $ 95,200 | 93,100 | 98,300 | ||||
Vendor promotional funds, which reduced advertising expense | $ 25,300 | $ 28,300 | $ 21,400 | ||||
Limited warranty period, minimum period (Days) | 30 days | ||||||
Products accounted for total revenues | One class of similar products accounted for approximately 12 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 12 percent of the Company’s total purchases.no other individual vendor provided more than 10 percent of total purchases. | ||||||
U.S. corporate income tax rate | 35.00% | 21.00% | 25.90% | 35.00% | 35.00% | ||
Reclassification from accumulated other comprehensive income to retained deficit | $ 14,489 | ||||||
Accounting Standards Update 2018-02 [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Reclassification from accumulated other comprehensive income to retained deficit | 14,489 | ||||||
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 | ||||||
Stock Options [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Anti-dilutive shares excluded from the computation of earnings per share | shares | 847,279 | 620,025 | 329,900 | ||||
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 | $ 51,000 | $ 51,000 | $ 51,000 | $ 48,300 | |||
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 | 12.00% | ||||||
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Minimum [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Concentration risk percentage | 10.00% | ||||||
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 | 12.00% | ||||||
Supplier Concentration Risk [Member] | Cost of Goods, Total [Member] | Minimum [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 | 5,618 | 5,618 | 5,618 | ||||
Brazil [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Number of stores | Store | 20 | 20 | 20 | ||||
Mexico [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Number of stores | Store | 564 | 564 | 564 | ||||
Non-US [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Cash and cash equivalents | $ 98,800 | $ 98,800 | $ 98,800 | $ 148,400 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 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 | $ 43,674,000 | $ 38,244,000 | $ 39,825,000 |
Share-based compensation expense for unvested awards not yet recognized in earnings | $ 33,100,000 | ||
Weighted average period recognition of share-based compensation expense for unvested awards | 1 year 9 months 25 days | ||
Excess tax benefit | $ 63,700,000 | ||
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 | 1,706,866 | 1,798,055 | |
Common stock reserved for future issuance | 163,777 | ||
Weighted average grant date fair value of options granted | $ 129.12 | $ 139.80 | $ 156.20 |
Intrinsic value of options exercised | $ 123,100,000 | $ 93,900,000 | $ 178,000,000 |
Total fair value of options vested | 35,700,000 | 34,700,000 | 32,200,000 |
Expense related to the discount on the selling of shares to employees and executives | $ 2,100,000 | $ 1,800,000 | $ 2,000,000 |
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 | 14,523 | 14,205 | 12,662 |
Shares purchased from employees at fair value | 11,816 | 12,455 | 12,460 |
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 | $ 13,600,000 | $ 9,500,000 | |
Accrued Director fees in shares | 17,710 | 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 | 13,000 | 19,000 | |
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 | 238,048 | ||
Maximum permitted annual purchases per employee, Percent of Compensation | 25.00% | ||
Shares sold to employees under employee stock purchase plan | 1,840 | 1,865 | 1,943 |
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. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected price volatility | 20.00% | 18.00% | 18.00% |
Risk-free interest rates | 1.90% | 1.20% | 1.50% |
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% | 10.00% |
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. 25, 2018USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding, Beginning balance, Number of Shares | 1,798,055 |
Granted, Number of Shares | 284,335 |
Exercised, Number of Shares | (297,616) |
Cancelled, Number of Shares | (77,908) |
Outstanding, Ending balance, Number of Shares | 1,706,866 |
Exercisable, Number of Shares | 1,014,819 |
Expected to vest, Number of Shares | 622,842 |
Available for future grants, Number of Shares | 686,577 |
Outstanding, Beginning balance, Weighted Average Exercise Price | $ / shares | $ 493.18 |
Granted, Weighted Average Exercise Price | $ / shares | 587.57 |
Exercised, Weighted Average Exercise Price | $ / shares | 298.02 |
Cancelled, Weighted Average Exercise Price | $ / shares | 672.61 |
Outstanding, Ending balance, Weighted Average Exercise Price | $ / shares | 534.74 |
Exercisable, Weighted Average Exercise Price | $ / shares | 446.07 |
Expected to vest, Weighted Average Exercise Price | $ / shares | $ 664.77 |
Outstanding , Weighted-Average Remaining Contractual Term | 6 years 21 days |
Exercisable, Weighted-Average Remaining Contractual Term | 4 years 8 months 23 days |
Expected to vest, Weighted-Average Remaining Contractual Term | 8 years 7 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 402,631 |
Exercisable, Aggregate Intrinsic Value | $ | 329,352 |
Expected to vest, Aggregate Intrinsic Value | $ | $ 38,387 |
Accrued Expenses and Other - Ac
Accrued Expenses and Other - Accrued Expenses (Detail) - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Other Income and Expenses [Abstract] | ||
Accrued compensation, related payroll taxes and benefits | $ 195,004 | $ 181,591 |
Property, sales, and other taxes | 106,050 | 98,829 |
Medical and casualty insurance claims (current portion) | 88,761 | 84,756 |
Capital lease obligations | 52,290 | 48,134 |
Accrued interest | 36,902 | 41,047 |
Accrued gift cards | 27,401 | 24,192 |
Accrued sales and warranty returns | 20,025 | 19,520 |
Other | 80,461 | 65,281 |
Total | $ 606,894 | $ 563,350 |
Accrued Expenses and Other - Ad
Accrued Expenses and Other - Additional Information (Detail) | 12 Months Ended |
Aug. 25, 2018USD ($) | |
Workers' Compensation [Member] | |
Loss Contingencies [Line Items] | |
Maximum limits per claim for self-insured plan, per annum | $ 2,000,000 |
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 | 3,000,000 |
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 05, 2018 | Feb. 10, 2018 | Nov. 18, 2017 | May 06, 2017 | Feb. 11, 2017 | Nov. 19, 2016 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 1,412,963 | $ 1,737,401 | $ 1,737,727 | ||||||||
International | 223,366 | 188,088 | 174,987 | ||||||||
Income before income taxes | $ 503,807 | $ 165,758 | $ 429,865 | $ 493,895 | $ 349,771 | $ 425,596 | $ 536,899 | $ 656,227 | $ 1,636,329 | $ 1,925,489 | $ 1,912,714 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Current: | |||
Federal | $ 328,963 | $ 487,492 | $ 534,621 |
State | 36,389 | 31,733 | 39,223 |
International | 57,702 | 50,493 | 52,844 |
Total | 423,054 | 569,718 | 626,688 |
Deferred: | |||
Federal | (131,926) | 72,208 | 48,509 |
State | 8,167 | 7,769 | 9,453 |
International | (502) | (5,075) | (12,943) |
Total | (124,261) | 74,902 | 45,019 |
Income tax expense | $ 298,793 | $ 644,620 | $ 671,707 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Detail) | Dec. 31, 2017 | Aug. 25, 2018 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 |
Income Tax Disclosure [Abstract] | |||||
Federal tax at statutory U.S. income tax rate | 35.00% | 21.00% | 25.90% | 35.00% | 35.00% |
State income taxes, net | 1.90% | 1.30% | 1.60% | ||
Transition tax | 1.60% | ||||
Share-based compensation | (1.60%) | (1.40%) | |||
Impact of tax reform | (9.60%) | ||||
Other | 0.10% | (1.40%) | (1.50%) | ||
Effective tax rate | 18.30% | 33.50% | 35.10% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Aug. 25, 2018 | Aug. 31, 2019 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 |
Operating Loss Carryforwards [Line Items] | ||||||
U.S. corporate income tax rate | 35.00% | 21.00% | 25.90% | 35.00% | 35.00% | |
Tax benefit from reduction of U.S. statutory rate | $ 119,200 | |||||
Excess tax benefits from stock option exercises | 31,300 | $ 31,200 | ||||
Tax cuts and jobs act of 2017, incomplete accounting, provisional income tax expense (benefit) | (157,300) | |||||
Tax cuts and jobs act of 2017, transition tax, provisional income tax expense | 25,800 | |||||
Deferred tax assets from net operating loss carryforwards | $ 30,900 | 30,900 | 30,800 | |||
Future taxable income | $ 219,100 | 198,200 | ||||
Expiration date of NOLs start year | 2,019 | |||||
Expiration date of NOLs end year | 2,038 | |||||
Deferred tax assets for income tax credit carryforwards | 16,300 | $ 16,300 | 17,200 | |||
Expiration date of tax credit carryforwards start year | 2,023 | |||||
Expiration date of tax credit carryforwards end year | 2,028 | |||||
Operating loss carryforwards expiration period description | fiscal 2019 through 2038 | |||||
Tax credit carryforwards expiration period description | fiscal 2023 through 2028 | |||||
Valuation allowances on deferred tax assets | 19,619 | $ 19,619 | 13,501 | |||
Unrecognized tax benefits, if recognized would reduce effective tax rate, amount | 13,500 | 13,500 | 9,900 | |||
Accrued for payment of interest and penalties associated with unrecognized tax benefits | 700 | 700 | $ 1,200 | |||
Amount of unrecognized tax benefits that could be reduced over next twelve months | $ 1,100 | $ 1,100 | ||||
Scenario, Plan [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
U.S. corporate income tax rate | 21.00% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Deferred tax assets: | ||
Net operating loss and credit carryforwards | $ 47,190 | $ 48,062 |
Accrued benefits | 62,867 | 96,664 |
Other | 46,375 | 56,052 |
Total deferred tax assets | 156,432 | 200,778 |
Less: Valuation allowances | (19,619) | (13,501) |
Net deferred tax assets | 136,813 | 187,277 |
Deferred tax liabilities: | ||
Property and equipment | (101,049) | (117,580) |
Inventory | (242,138) | (333,422) |
Prepaid expenses | (42,019) | (60,920) |
Other | (2,191) | (11,158) |
Total deferred tax liabilities | (387,397) | (523,080) |
Net deferred tax liabilities | $ (250,584) | $ (335,803) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 25, 2018 | Aug. 26, 2017 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 22,201 | $ 27,726 |
Additions based on tax positions related to the current year | 8,184 | 7,089 |
Additions for tax positions of prior years | 1,404 | 278 |
Reductions for tax positions of prior years | (482) | (6,954) |
Reductions due to settlements | (1,930) | (1,964) |
Reductions due to statute of limitations | (3,300) | (3,974) |
Ending balance | $ 26,077 | $ 22,201 |
Fair Value Measurements - Compa
Fair Value Measurements - Company's Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 134,676 | $ 100,873 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 59,444 | 18,573 |
Other long-term assets | 75,232 | 82,300 |
Total | 134,676 | 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 | 55,711 | 18,453 |
Other long-term assets | 58,973 | 53,319 |
Total | 114,684 | 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 | 3,733 | 120 |
Other long-term assets | 16,259 | 28,981 |
Total | $ 19,992 | $ 29,101 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | $ 59,444 | $ 18,573 |
Long-term marketable securities | $ 75,232 | $ 82,300 |
Marketable Securities - Availab
Marketable Securities - Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | $ 135,776 | $ 100,885 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 152 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (1,100) | (164) |
Available-For-Sale Marketable Securities, Fair Value | 134,676 | 100,873 |
Corporate Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 50,306 | 39,917 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 73 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (684) | (13) |
Available-For-Sale Marketable Securities, Fair Value | 49,622 | 39,977 |
Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 28,777 | 31,076 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 49 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (173) | (74) |
Available-For-Sale Marketable Securities, Fair Value | 28,604 | 31,051 |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 3,248 | 4,850 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 2 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (90) | (42) |
Available-For-Sale Marketable Securities, Fair Value | 3,158 | 4,810 |
Asset-Backed Securities and Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 53,445 | 25,042 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 28 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (153) | (35) |
Available-For-Sale Marketable Securities, Fair Value | $ 53,292 | $ 25,035 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Aug. 25, 2018USD ($)Securities | Aug. 26, 2017USD ($) | |
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 | 121 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | $ 1,100 | $ 164 |
Marketable securities transferred | $ 85,600 | $ 85,400 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended | |
Aug. 25, 2018 | Aug. 25, 2018 | Aug. 26, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | $ (1,428,377) | $ (1,787,538) | |
Balance | $ (1,520,355) | (1,520,355) | (1,428,377) |
Adoption of ASU 2018-02 | 14,489 | ||
Accounting Standards Update 2018-02 [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Adoption of ASU 2018-02 | 14,489 | ||
Pension Liability [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (72,376) | (88,890) | |
Other comprehensive income (loss) before reclassifications | 77,774 | 8,046 | |
Amounts reclassified from Accumulated other comprehensive loss | 7,724 | 8,468 | |
Balance | (72,376) | ||
Pension Liability [Member] | Accounting Standards Update 2018-02 [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Adoption of ASU 2018-02 | (13,122) | ||
Net Unrealized Gain (Loss) on Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (11) | 120 | |
Other comprehensive income (loss) before reclassifications | (800) | (60) | |
Amounts reclassified from Accumulated other comprehensive loss | (62) | (71) | |
Balance | (873) | (873) | (11) |
Derivatives [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (6,356) | (7,747) | |
Amounts reclassified from Accumulated other comprehensive loss | 1,690 | 1,391 | |
Balance | (6,033) | (6,033) | (6,356) |
Derivatives [Member] | Accounting Standards Update 2018-02 [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Adoption of ASU 2018-02 | (1,367) | ||
Foreign Currency [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (175,814) | (211,012) | |
Other comprehensive income (loss) before reclassifications | (53,085) | 35,198 | |
Balance | (228,899) | (228,899) | (175,814) |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (254,557) | (307,529) | |
Other comprehensive income (loss) before reclassifications | 23,889 | 43,184 | |
Amounts reclassified from Accumulated other comprehensive loss | 9,352 | 9,788 | |
Balance | $ (235,805) | (235,805) | $ (254,557) |
Accumulated Other Comprehensive Loss [Member] | Accounting Standards Update 2018-02 [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Adoption of ASU 2018-02 | $ (14,489) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - Reclassified from Accumulated Other Comprehensive Income [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 25, 2018 | Aug. 26, 2017 | |
Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses) on marketable securities, taxes | $ 234 | $ 38 |
Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net derivative activities, taxes | $ 515 | $ 814 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 25, 2018 | Aug. 26, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative losses recorded in Accumulated other comprehensive loss | $ 7.9 | |
Net derivative losses amortized into Interest expense | $ 2.2 | $ 2.2 |
Financing - Schedule of Debt (D
Financing - Schedule of Debt (Detail) - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 1,325,300 | $ 1,155,100 |
Total debt before discounts and debt issuance costs | 5,025,300 | 5,105,100 |
Less: Discounts and debt issuance costs | 19,370 | 23,862 |
Long-term debt | 5,005,930 | 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 | |
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) | Apr. 18, 2017 | Aug. 25, 2018 | Aug. 26, 2017 |
Commercial paper, weighted average interest rate of 0% and 1.44% at August 25, 2018 and August 26, 2017, respectively [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate of commercial paper | 2.29% | 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% | 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 ($) | Apr. 21, 2016USD ($) | Aug. 25, 2018USD ($) | Aug. 26, 2017USD ($) | Aug. 27, 2016USD ($) |
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 Agreement requires 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 25, 2018 was 5.8:1. | ||||
Minimum debt covenant interest coverage ratio to be maintained quarterly | 2.5 | ||||
Debt covenant interest coverage ratio | 5.8 | ||||
Proceeds from issuance of debt | $ 600,000,000 | $ 650,000,000 | |||
Fair value of the Company's debt | $ 4,948,000,000 | 5,171,000,000 | |||
Excess (shortfall) of fair value of debt over (from) carrying value | 57,500,000 | 90,300,000 | |||
Other Letters Of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings, outstanding | 32,500,000 | ||||
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] | |||||
Borrowings, outstanding | 0 | ||||
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 Agreement, 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 Agreement, depending upon the Company’s senior, unsecured, (non-credit enhanced) long-term debt ratings. Interest accrues on base rate loans as defined in the Revolving Credit Agreement. | ||||
Extended expiration of credit facility | 1 year | ||||
Letters of credit, outstanding | $ 3,300,000 | ||||
Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum amount available under credit facility | 75,000,000 | ||||
Borrowings, outstanding | 71,000,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of credit, outstanding | 3,300,000 | ||||
Borrowings, outstanding | 0 | ||||
3.750% Senior Notes due June 2027, effective interest rate of 3.83% [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 600,000,000 | $ 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 | ||||
1.625% Senior Notes due April 2019, effective interest rate of 1.77% [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 250,000,000 | $ 250,000,000 | |||
Stated interest rate percentage | 1.625% | 1.625% | |||
Debt instrument maturity, month and year | 2019-04 | 2019-04 | |||
3.125% Senior Notes Due April 2026 [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 | ||||
1.625% Senior Notes due April 2019 [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 |
Financing - Scheduled Maturitie
Financing - Scheduled Maturities of Debt (Detail) - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 1,575,300 | |
2,020 | 0 | |
2,021 | 750,000 | |
2,022 | 500,000 | |
2,023 | 800,000 | |
Thereafter | 1,400,000 | |
Subtotal | 5,025,300 | |
Discount and debt issuance costs | 19,370 | $ 23,862 |
Long-term debt | $ 5,005,930 | $ 5,081,238 |
Interest Expense - Net Interest
Interest Expense - Net Interest Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Other Income and Expenses [Abstract] | |||
Interest expense | $ 181,668 | $ 159,329 | $ 150,961 |
Interest income | (5,636) | (3,502) | (2,371) |
Capitalized interest | (1,505) | (1,247) | (909) |
Net Interest Expense | $ 174,527 | $ 154,580 | $ 147,681 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) shares in Thousands | Sep. 26, 2018 | Oct. 23, 2018 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | Aug. 25, 2018 | Mar. 20, 2018 |
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased cumulative, shares | 2,398 | 1,495 | 1,903 | 144,700 | |||
Purchase of treasury stock | $ 1,592,013,000 | $ 1,071,649,000 | $ 1,452,462,000 | $ 19,418,000,000 | |||
Stock repurchase authorized amended value | $ 18,650,000,000 | $ 19,650,000,000 | |||||
Share of treasury stock retired | 1,512 | 1,804 | |||||
Subsequent Events [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased cumulative, shares | 346,979 | ||||||
Purchase of treasury stock | $ 263,400,000 | ||||||
Stock repurchase authorized amended value | $ 20,900,000,000 | ||||||
Increase in authorization of stock repurchase, value | $ 1,250,000,000 | ||||||
Remaining value authorized for share repurchases | $ 1,220,000,000 | ||||||
Retained Deficit [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Retirement of treasury shares | $ (918,462,000) | $ (1,321,070,000) | (1,424,455,000) | ||||
Additional Paid-In Capital [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Retirement of treasury shares | $ (60,500,000) | $ (64,943,000) | $ (67,023,000) |
Stock Repurchase Program - Summ
Stock Repurchase Program - Summarize Company's Share Repurchase Activity (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | 248 Months Ended | ||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | Aug. 25, 2018 | |
Equity [Abstract] | ||||
Amount | $ 1,592,013 | $ 1,071,649 | $ 1,452,462 | |
Shares | 2,398 | 1,495 | 1,903 | 144,700 |
Pension and Savings Plans - Add
Pension and Savings Plans - Additional Information (Detail) - USD ($) | 4 Months Ended | 12 Months Ended | ||
Aug. 25, 2018 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Retirement Benefits [Abstract] | ||||
Consecutive years of highest compensation used to determine defined benefit pension plan benefits | 5 years | |||
Annual contributions by the Company to pension plans | $ 11,400,000 | $ 11,596,000 | $ 17,761,000 | |
Termination settlement costs | 130,300,000 | |||
Periodic pension benefit expense | $ 0 | |||
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 | $ 23,100,000 | $ 21,000,000 | $ 19,700,000 |
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 | 4 Months Ended | 12 Months Ended | ||
Aug. 25, 2018 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Change in Projected Benefit Obligation: | ||||
Projected benefit obligation at beginning of year | $ 314,724 | $ 328,511 | ||
Interest cost | 10,356 | 10,335 | $ 11,272 | |
Actuarial (gains) losses | (676) | (8,746) | ||
Annuities purchased | (157,589) | |||
Benefits and settlements paid | (166,815) | (15,376) | ||
Benefit obligations at end of year | 314,724 | 328,511 | ||
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 316,267 | 289,386 | ||
Actual return on plan assets | (3,428) | 24,496 | ||
Employer contributions | $ 11,400 | 11,596 | 17,761 | |
Annuities purchased | (157,589) | |||
Benefits and settlements paid | (166,815) | (15,376) | ||
Asset reversion upon termination | $ (31) | |||
Fair value of plan assets at end of year | 316,267 | $ 289,386 | ||
Amount Recognized in the Statement of Financial Position: | ||||
Current liabilities | (283) | |||
Long-term assets | 8,686 | |||
Long-term liabilities | (6,860) | |||
Net amount recognized | 1,543 | |||
Amount Recognized in Accumulated Other Comprehensive Loss and not yet reflected in Net Periodic Benefit Cost: | ||||
Net actuarial loss | (118,889) | |||
Accumulated other comprehensive loss | $ (118,889) |
Pension and Savings Plans - Net
Pension and Savings Plans - Net Periodic Benefit Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Retirement Benefits [Abstract] | |||
Interest cost | $ 10,356 | $ 10,335 | $ 11,272 |
Expected return on plan assets | (18,997) | (20,056) | (16,512) |
Recognized net actuarial losses | 10,736 | 13,873 | 10,506 |
Settlement loss | 130,263 | ||
Net periodic benefit expense | $ 132,358 | $ 4,152 | $ 5,266 |
Pension and Savings Plans - Act
Pension and Savings Plans - Actuarial Assumptions Used in Determining Projected Benefit Obligation (Detail) | 12 Months Ended | ||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Retirement Benefits [Abstract] | |||
Discount rate to determine benefit obligation | 3.86% | 3.86% | 3.72% |
Discount rate to determine net interest cost | 3.36% | 3.21% | 3.90% |
Expected long-term rate of return on plan assets | 6.00% | 7.00% | 7.00% |
Sale of Assets - Additional Inf
Sale of Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Feb. 10, 2018 | Aug. 25, 2018 | |
Business Acquisition [Line Items] | ||
Asset impairment charges | $ 193,162 | |
Auto Anything and IMC Businesses [Member] | ||
Business Acquisition [Line Items] | ||
Asset impairment charges | $ 193,162 | |
IMC Businesses [Member] | Auto Parts Locations [Member] | ||
Business Acquisition [Line Items] | ||
Asset impairment charges | 93,600 | |
Auto Anything [Member] | Other [Member] | ||
Business Acquisition [Line Items] | ||
Asset impairment charges | $ 99,600 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 25, 2018 | Aug. 26, 2017 | |
Goodwill [Line Items] | ||
Goodwill, Beginning balance | $ 391,887 | $ 391,887 |
Goodwill added through acquisition | 0 | 0 |
Goodwill adjustments | (89,242) | |
Goodwill, Ending balance | 302,645 | 391,887 |
Auto Parts Locations [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 326,703 | 326,703 |
Goodwill added through acquisition | 0 | 0 |
Goodwill adjustments | (24,058) | |
Goodwill, Ending balance | 302,645 | 326,703 |
Other [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 65,184 | 65,184 |
Goodwill added through acquisition | 0 | 0 |
Goodwill adjustments | $ (65,184) | |
Goodwill, Ending balance | $ 65,184 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Detail) - USD ($) | 4 Months Ended | 12 Months Ended | |||
Aug. 25, 2018 | Feb. 10, 2018 | Aug. 26, 2017 | Aug. 25, 2018 | Aug. 26, 2017 | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |||||
Goodwill impairment charge | $ 0 | $ 0 | |||
Accumulated goodwill impairment | 107,500,000 | 18,300,000 | $ 107,500,000 | $ 18,300,000 | |
Amortization expense of intangible assets | 5,100,000 | 8,500,000 | |||
Trade Name [Member] | AutoAnything's and Interamerican Motor Corporation [Member] | |||||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |||||
Impairment charge | $ 26,900,000 | ||||
Accumulated impairment | $ 31,000,000 | $ 4,100,000 | $ 31,000,000 | $ 4,100,000 |
Goodwill and Intangibles - Sc_2
Goodwill and Intangibles - Schedule of Carrying Amounts of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 25, 2018 | Aug. 26, 2017 | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | $ 30,246 | $ 61,546 |
Finite Lived, Accumulated Amortization | (20,457) | (35,947) |
Finite Lived, Net Carrying Amount | 9,789 | 25,599 |
Total intangible assets other than goodwill, Net Carrying Amount | $ 9,789 | 52,499 |
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 | $ 870 | 10,570 |
Finite Lived, Accumulated Amortization | $ (870) | (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 | 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 | |
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 | $ 29,376 | 49,676 |
Finite Lived, Accumulated Amortization | (19,587) | (24,730) |
Finite Lived, Net Carrying Amount | $ 9,789 | $ 24,946 |
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 Name [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Non-amortizing intangible asset - Trade name, Net Carrying Amount | $ 26,900 |
Goodwill and Intangibles - Sc_3
Goodwill and Intangibles - Schedule of Future Amortization Expense for Finite Lived Intangible Assets (Detail) - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 4,173 | |
2,020 | 4,173 | |
2,021 | 1,443 | |
Thereafter | 0 | |
Finite Lived, Net Carrying Amount | $ 9,789 | $ 25,599 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Leases [Abstract] | |||
Rental expense | $ 315,600 | $ 302,900 | $ 280,500 |
Deferred rent | 139,600 | 130,200 | |
Capital lease assets | 156,800 | 152,000 | |
Capital lease, accumulated amortization | 79,900 | 70,200 | |
Capital lease obligations | 154,300 | 150,500 | |
Current portion of capital lease obligations | $ 52,290 | $ 48,134 |
Leases - Future Minimum Annual
Leases - Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases and Capital Leases (Detail) $ in Thousands | Aug. 25, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 300,866 |
2,020 | 289,007 |
2,021 | 267,298 |
2,022 | 244,786 |
2,023 | 215,237 |
Thereafter | 823,969 |
Total minimum payments required | 2,141,163 |
2,019 | 52,290 |
2,020 | 50,777 |
2,021 | 38,290 |
2,022 | 21,211 |
2,023 | 3,118 |
Thereafter | 0 |
Total minimum payments required | 165,686 |
Less: Interest | (11,383) |
Present value of minimum capital lease payments | $ 154,303 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended |
Aug. 25, 2018USD ($) | |
Loss Contingencies [Line Items] | |
Commitment for construction | $ 41.3 |
Surety bonds | $ 23.6 |
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 | $ 106.8 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Aug. 25, 2018ItemLocation | |
Segment Reporting [Abstract] | |
Number of reportable segments | Item | 1 |
Number of automotive parts and accessories locations in the United States, Puerto Rico, Mexico, and Brazil | Location | 6,202 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
May 05, 2018 | Feb. 10, 2018 | Nov. 18, 2017 | May 06, 2017 | Feb. 11, 2017 | Nov. 19, 2016 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2,660,152 | $ 2,413,026 | $ 2,589,131 | $ 2,619,007 | $ 2,289,219 | $ 2,467,845 | $ 3,558,769 | $ 3,512,605 | $ 11,221,077 | $ 10,888,676 | $ 10,635,676 |
Gross profit | 1,422,974 | 1,277,046 | 1,365,848 | 1,378,418 | 1,205,536 | 1,301,542 | 1,907,879 | 1,854,125 | 5,973,746 | 5,739,620 | 5,608,736 |
Operating, selling, general and administrative expenses | (4,162,890) | (3,659,551) | (3,548,341) | ||||||||
Interest expense, net | (174,527) | (154,580) | (147,681) | ||||||||
Income before income taxes | 503,807 | 165,758 | 429,865 | 493,895 | 349,771 | 425,596 | 536,899 | 656,227 | 1,636,329 | 1,925,489 | 1,912,714 |
Assets | 9,346,980 | 9,259,781 | 9,346,980 | 9,259,781 | 8,599,787 | ||||||
Capital Expenditures | 521,788 | 553,832 | 488,791 | ||||||||
Net sales | $ 2,660,152 | $ 2,413,026 | $ 2,589,131 | $ 2,619,007 | $ 2,289,219 | $ 2,467,845 | 3,558,769 | 3,512,605 | 11,221,077 | 10,888,676 | 10,635,676 |
Auto Parts Locations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 10,951,498 | 10,523,272 | 10,261,112 | ||||||||
Gross profit | 5,805,561 | 5,544,494 | 5,410,477 | ||||||||
Assets | 9,231,021 | 8,964,371 | 9,231,021 | 8,964,371 | 8,351,883 | ||||||
Capital Expenditures | 499,762 | 533,304 | 470,631 | ||||||||
Net sales | 10,951,498 | 10,523,272 | 10,261,112 | ||||||||
Auto Parts Locations [Member] | Failure [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 5,338,890 | 5,100,702 | 4,913,423 | ||||||||
Net sales | 5,338,890 | 5,100,702 | 4,913,423 | ||||||||
Auto Parts Locations [Member] | Maintenance Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,914,546 | 3,774,386 | 3,721,240 | ||||||||
Net sales | 3,914,546 | 3,774,386 | 3,721,240 | ||||||||
Auto Parts Locations [Member] | Discretionary [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,698,062 | 1,648,184 | 1,626,449 | ||||||||
Net sales | 1,698,062 | 1,648,184 | 1,626,449 | ||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 269,579 | 365,404 | 374,564 | ||||||||
Gross profit | 168,185 | 195,126 | 198,259 | ||||||||
Assets | $ 115,959 | $ 295,410 | 115,959 | 295,410 | 247,904 | ||||||
Capital Expenditures | 22,026 | 20,528 | 18,160 | ||||||||
Net sales | $ 269,579 | $ 365,404 | $ 374,564 |
Segment Reporting - Segment R_2
Segment Reporting - Segment Results (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended |
Feb. 10, 2018 | Aug. 25, 2018 | Aug. 25, 2018 | |
Segment Reporting Information [Line Items] | |||
Termination settlement costs | $ 130,300 | ||
Asset impairment charges | $ 193,162 | ||
Operating, Selling, General and Administrative Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Termination settlement costs | 130,300 | ||
Auto Anything and IMC Businesses [Member] | |||
Segment Reporting Information [Line Items] | |||
Asset impairment charges | $ 193,162 | ||
Auto Anything and IMC Businesses [Member] | Operating, Selling, General and Administrative Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Asset impairment charges | $ 193,162 |
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 05, 2018 | Feb. 10, 2018 | Nov. 18, 2017 | May 06, 2017 | Feb. 11, 2017 | Nov. 19, 2016 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 2,660,152 | $ 2,413,026 | $ 2,589,131 | $ 2,619,007 | $ 2,289,219 | $ 2,467,845 | $ 3,558,769 | $ 3,512,605 | $ 11,221,077 | $ 10,888,676 | $ 10,635,676 |
Gross profit | 1,422,974 | 1,277,046 | 1,365,848 | 1,378,418 | 1,205,536 | 1,301,542 | 1,907,879 | 1,854,125 | 5,973,746 | 5,739,620 | 5,608,736 |
Operating profit | 545,765 | 205,098 | 468,754 | 529,570 | 383,969 | 458,902 | 591,239 | 707,628 | 1,810,856 | 2,080,069 | 2,060,395 |
Income before income taxes | 503,807 | 165,758 | 429,865 | 493,895 | 349,771 | 425,596 | 536,899 | 656,227 | 1,636,329 | 1,925,489 | 1,912,714 |
Net income | $ 366,721 | $ 289,530 | $ 281,003 | $ 331,700 | $ 237,145 | $ 278,125 | $ 400,282 | $ 433,899 | $ 1,337,536 | $ 1,280,869 | $ 1,241,007 |
Basic earnings per share | $ 13.62 | $ 10.58 | $ 10.17 | $ 11.70 | $ 8.28 | $ 9.61 | $ 15.27 | $ 15.52 | $ 49.59 | $ 45.05 | $ 41.52 |
Diluted earnings per share | $ 13.42 | $ 10.38 | $ 10 | $ 11.44 | $ 8.08 | $ 9.36 | $ 15.02 | $ 15.27 | $ 48.77 | $ 44.07 | $ 40.70 |
Quarterly Summary - Quarterly_2
Quarterly Summary - Quarterly Summary (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended |
Feb. 10, 2018 | Aug. 25, 2018 | Aug. 25, 2018 | |
Selected Quarterly Financial Information [Line Items] | |||
Asset impairment charges | $ 193,162 | ||
Termination settlement costs | $ 130,300 | ||
Auto Anything and IMC Businesses [Member] | |||
Selected Quarterly Financial Information [Line Items] | |||
Asset impairment charges | $ 193,162 |