Cover Page
Cover Page - shares | 3 Months Ended | |
Nov. 23, 2019 | Dec. 13, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 23, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | AUTOZONE INC | |
Entity Central Index Key | 0000866787 | |
Current Fiscal Year End Date | --08-29 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | AZO | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Address, State or Province | TN | |
Entity Common Stock, Shares Outstanding | 23,592,711 | |
City Area Code | 901 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-10714 | |
Local Phone Number | 495-6500 | |
Entity Address, Postal Zip Code | 38103 | |
Entity Tax Identification Number | 62-1482048 | |
Entity Address, Address Line One | 123 South Front Street | |
Entity Address, City or Town | Memphis | |
Entity Incorporation, State or Country Code | NV |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Nov. 23, 2019 | Aug. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 158,089 | $ 176,300 |
Accounts receivable | 333,246 | 308,995 |
Merchandise inventories | 4,463,124 | 4,319,113 |
Other current assets | 202,516 | 224,277 |
Total current assets | 5,156,975 | 5,028,685 |
Property and equipment: | ||
Property and equipment | 7,844,304 | 7,713,196 |
Less: Accumulated depreciation and amortization | (3,393,648) | (3,314,445) |
Property and equipment, net | 4,450,656 | 4,398,751 |
Operating lease right-of-use assets | 2,585,105 | 0 |
Goodwill | 302,645 | 302,645 |
Deferred income taxes | 27,365 | 26,861 |
Other long-term assets | 177,710 | 138,971 |
Other long-term assets, total | 3,092,825 | 468,477 |
Assets | 12,700,456 | 9,895,913 |
Current liabilities: | ||
Accounts payable | 4,922,148 | 4,864,912 |
Current portion of operating lease liabilities | 232,549 | 0 |
Accrued expenses and other | 618,654 | 621,932 |
Income taxes payable | 94,885 | 25,297 |
Total current liabilities | 5,868,236 | 5,512,141 |
Long-term debt | 5,287,324 | 5,206,344 |
Operating lease liabilities, less current portion | 2,506,829 | 0 |
Deferred income taxes | 315,602 | 311,980 |
Other long-term liabilities | 498,555 | 579,299 |
Stockholders' deficit: | ||
Preferred stock, authorized 1,000 shares; no shares issued | 0 | 0 |
Common stock, par value $.01 per share, authorized 200,000 shares; 25,465 shares issued and 23,655 shares outstanding as of November 23, 2019; 25,445 shares issued and 24,038 shares outstanding as of August 31, 2019 | 254 | 254 |
Additional paid-in capital | 1,282,629 | 1,264,448 |
Retained deficit | (955,009) | (1,305,347) |
Accumulated other comprehensive loss | (250,081) | (269,322) |
Treasury stock, at cost | (1,853,883) | (1,403,884) |
Total stockholders' deficit | (1,776,090) | (1,713,851) |
Liabilities and Stockholders' Deficit | $ 12,700,456 | $ 9,895,913 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Nov. 23, 2019 | Aug. 31, 2019 |
Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 25,465,000 | 25,445,000 |
Common stock, shares outstanding | 23,655,000 | 24,038,000 |
Preferred Stock [Member] | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 23, 2019 | Nov. 17, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 2,793,038 | $ 2,641,733 |
Cost of sales, including warehouse and delivery expenses | 1,291,970 | 1,224,259 |
Gross profit | 1,501,068 | 1,417,474 |
Operating, selling, general and administrative expenses | 1,001,045 | 929,656 |
Operating profit | 500,023 | 487,818 |
Interest expense, net | 43,743 | 39,006 |
Income before income taxes | 456,280 | 448,812 |
Income tax expense | 105,942 | 97,406 |
Net income | $ 350,338 | $ 351,406 |
Weighted average shares for basic earnings per share | 23,875 | 25,629 |
Effect of dilutive stock equivalents | 618 | 468 |
Weighted average shares for diluted earnings per share | 24,493 | 26,097 |
Basic earnings per share | $ 14.67 | $ 13.71 |
Diluted earnings per share | $ 14.30 | $ 13.47 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 23, 2019 | Nov. 17, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 350,338 | $ 351,406 | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 19,040 | (40,573) | |
Unrealized (losses) on marketable debt securities, net of taxes | [1] | (188) | (77) |
Net derivative activities, net of taxes | [2] | 389 | 389 |
Total other comprehensive income (loss) | 19,241 | (40,261) | |
Comprehensive income | $ 369,579 | $ 311,145 | |
[1] | Unrealized (losses) on marketable debt securities are presented net of tax benefit of $50 in fiscal 2020 and $20 in fiscal 2019. | ||
[2] | Net derivative activities are presented net of taxes of $120 in both fiscal 2020 and fiscal 2019. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 23, 2019 | Nov. 17, 2018 | |
Unrealized gains (losses) on marketable debt securities, net of taxes | $ 50 | $ 20 |
Net derivative activities, taxes | $ 120 | $ 120 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 23, 2019 | Nov. 17, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 350,338 | $ 351,406 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment and intangibles | 89,750 | 82,452 |
Amortization of debt origination fees | 2,195 | 1,864 |
Deferred income taxes | 1,940 | 7,420 |
Share-based compensation expense | 9,996 | 10,527 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (23,246) | (16,338) |
Merchandise inventories | (133,206) | (167,454) |
Accounts payable and accrued expenses | 48,270 | 67,762 |
Income taxes payable | 69,390 | 63,774 |
Other, net | 31,675 | 47,769 |
Net cash provided by operating activities | 447,102 | 449,182 |
Cash flows from investing activities: | ||
Capital expenditures | (101,407) | (98,168) |
Purchase of marketable debt securities | (35,448) | (7,480) |
Proceeds from sale of marketable debt securities | 45,765 | 13,116 |
Proceeds from disposal of capital assets and other, net | 379 | 633 |
Net cash used in investing activities | (90,711) | (91,899) |
Cash flows from financing activities: | ||
Net proceeds from commercial paper | 79,700 | 149,378 |
Net proceeds from sale of common stock | 8,822 | 44,671 |
Purchase of treasury stock | (449,999) | (497,060) |
Repayment of principal portion of finance lease liabilities | (14,331) | (12,597) |
Net cash used in financing activities | (375,808) | (315,608) |
Effect of exchange rate changes on cash | 1,206 | (7,413) |
Net (decrease) increase in cash and cash equivalents | (18,211) | 34,262 |
Cash and cash equivalents at beginning of period | 176,300 | 217,824 |
Cash and cash equivalents at end of period | $ 158,089 | $ 252,086 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) $ 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. 25, 2018 | $ (1,520,355) | $ 275 | $ 1,155,426 | $ (1,208,824) | $ (235,805) | $ (1,231,427) |
Balance, Shares at Aug. 25, 2018 | 27,530,000 | |||||
Cumulative effect of adoption of ASU 2014-09 at Aug. 25, 2018 | (6,773) | $ 0 | 0 | (6,773) | 0 | 0 |
Balance at August 25, 2018, as adjusted at Aug. 25, 2018 | (1,527,128) | $ 275 | 1,155,426 | (1,215,597) | (235,805) | (1,231,427) |
Balance at August 25, 2018, as adjusted, shares at Aug. 25, 2018 | 27,530,000 | |||||
Net income | 351,406 | $ 0 | 0 | 351,406 | 0 | 0 |
Total other comprehensive gain (loss) | (40,261) | 0 | 0 | 0 | (40,261) | 0 |
Purchase of treasury stock | (497,060) | 0 | 0 | 0 | 0 | (497,060) |
Issuance of common stock under stock options and stock purchase plans | 44,926 | $ 2 | 44,924 | 0 | 0 | 0 |
Issuance of common stock under stock options and stock purchase plans, Shares | 128,000 | |||||
Share-based compensation expense | 9,501 | $ 0 | 9,501 | 0 | 0 | 0 |
Share-based compensation expense, Shares | 0 | |||||
Balance at Nov. 17, 2018 | (1,658,616) | $ 277 | 1,209,851 | (864,191) | (276,066) | (1,728,487) |
Balance, shares at Nov. 17, 2018 | 27,658,000 | |||||
Balance at Aug. 31, 2019 | (1,713,851) | $ 254 | 1,264,448 | (1,305,347) | (269,322) | (1,403,884) |
Balance, Shares at Aug. 31, 2019 | 25,445,000 | |||||
Net income | 350,338 | $ 0 | 0 | 350,338 | 0 | 0 |
Total other comprehensive gain (loss) | 19,241 | 0 | 0 | 0 | 19,241 | 0 |
Purchase of treasury stock | (449,999) | 0 | 0 | 0 | 0 | (449,999) |
Issuance of common stock under stock options and stock purchase plans | 8,822 | $ 0 | 8,822 | 0 | 0 | 0 |
Issuance of common stock under stock options and stock purchase plans, Shares | 20,000 | |||||
Share-based compensation expense | 9,359 | $ 0 | 9,359 | 0 | 0 | 0 |
Share-based compensation expense, Shares | 0 | |||||
Balance at Nov. 23, 2019 | $ (1,776,090) | $ 254 | $ 1,282,629 | $ (955,009) | $ (250,081) | $ (1,853,883) |
Balance, shares at Nov. 23, 2019 | 25,465,000 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Parenthetical) - shares shares in Thousands | 3 Months Ended | 263 Months Ended | |
Nov. 23, 2019 | Nov. 17, 2018 | Nov. 23, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Purchase of treasury stock, shares | 403 | 654 | 147,300 |
General
General | 3 Months Ended |
Nov. 23, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | Note A – General The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q S-X 10-K Operating results for the twelve weeks ended November 23, 2019 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 29, 2020. Each of the first three quarters of AutoZone’s fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarter of fiscal 2020 has 16 weeks and the fourth quarter of fiscal 2019 had 17 weeks. Recently Adopted Accounting Pronouncements: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) 2016-02 two-fold right-of-use 2016-02 T , 2019 , using the modified retrospective transition method. Under this method, existing leases were recorded at the adoption date, comparative periods were not restated and prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for the prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of prior lease identification under Accounting Standards Codification (“ASC”) Topic 840 . The Company made the accounting policy election for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term. The Company also elected the practical expedient to not separate lease components from the non-lease to determine the reasonably certain lease term for existing leases operating lease - -u September 1, . Existing prepaid and deferred rent were netted and right-of-use There was no adjustment to the opening balance of retained earnings upon adoption. The standard did not have a material impact on the Company’s Condensed Consolidated Statements of Income, Condensed Consolidated Statement of Cash Flows or covenant compliance under its existing credit agreement. Refer to “Note L- Leases”. In June 2018 , the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting 2018-07 its , 2019 . The Company determined that the provisions of ASU 2018-07 Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheet or Condensed Consolidated Statement of Cash Flows. Recently Issued Accounting Pronouncements: In August 2018 , the FASB issued ASU 2018-15, Intangibles – Goodwill and Other Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract internal-use 2018-15 , 2019 , including interim periods within those fiscal years. Early adoption is permitted. The Company will adopt this standard beginning with its , 2020 . The Company is currently evaluating the new guidance to determine the impact the adoption will have on its Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheet or Condensed Consolidated Statement of Cash Flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2018-19, Codific a 2016-13 investments in leases, financial receivables, debt securities, and other instruments, which will result in earlier recognition of credit losses . Further, the new credit loss model will affect how entities estimate their allowance for loss receivables that are current with respect to their payment terms. ASU 2016-13 |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Nov. 23, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Note B – Share-Based Payments AutoZone maintains several equity incentive plans, which provide equity-based compensation to non-employee Stock Options The Company made stock option grants of 188,324 shares during the twelve week period ended November 23, 2019 and granted options to purchase 171,293 shares during the comparable prior year period. 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. 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. The weighted aver a , 2019 and November 17, 2018, using the Black-Scholes-Merton multiple-option pricing valuation model, was $252.39 Twelve Weeks Ended November 23, 2019 November 17, 2018 22 % 21 % 1.4 % 3.1 % 5.5 5.6 10 % 10 % 0 % 0 % During the twelve week period ended November 23, 2019, 18,407 stock options were exercised at a weighted average exercise price of $568.16. In the comparable prior year period, 129,559 stock options were exercised at a weighted average exercise price of $359.94. Restricted Stock Units The Company made restricted stock unit grants of 7,008 shares to eligible employees during the twelve week period ended November 23, 2019 and 10,474 in the comparable prior year period. The fair value of the restricted stock unit grants is the closing price of the Company’s common stock on the grant date and the grants vest ratably on an annual basis over a four-year service period. Restricted stock unit awards are payable in shares of common stock on the vesting date. Compensation expense for grants of employee restricted stock units is recognized on a straight-line basis over the four-year service period, less estimated forfeitures, which are consistent with stock option grant forfeiture assumptions. The weighted average fair value per restricted stock unit granted during the t welve week period ended November 23, 2019, was Transactions related to restricted stock units for the twelve weeks ended November 23, 2019 were s Number of Shares Weighted - 10,049 $ 773.61 7,008 1,060.81 (2,456 ) 772.80 (66 ) 772.80 14,535 $ 912.23 Total share-based compensation expense (a component of Operating, selling, general and administrative expenses) was $10.0 million for the twelve week period ended November 23, 2019, and $10.5 million for the comparable prior year period. For the twelve week period ended November 23, 2019, 107,511 stock options were excluded from the diluted earnings per share computation because they would have been anti-dilutive. For the comparable prior year period, 427,407 anti-dilutive shares were excluded from the dilutive earnings per share computation. See AutoZone’s Annual Report on Form 10-K |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Nov. 23, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note C – Fair Value Measurements The Company defines fair value as the price received to transfer an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with ASC 820, Fair Value Measurements and Disclosures Level 1 inputs Level 2 inputs that are observable, either directly or indirectly, for the asset or liability. Level 3 inputs Marketable Debt Securities Measured at Fair Value on a Recurring Basis The Company’s marketable debt securities measured at fair value on a recurring basis were as follows: November 23, 2019 (in thousands) Level 1 L Level 3 Fair Value $ 50,015 $ 2,350 $ – $ 52,365 72,075 3,931 – 76,006 $ 122,090 $ 6,281 $ – $ 128,371 August 31, 2019 (in thousands) Level 1 Level 2 Level 3 Fair Value $ 65,344 $ 2,614 $ – $ 67,958 65,573 5,395 – 70,968 $ 130,917 $ 8,009 $ – $ 138,926 At November 23, 2019, the fair value measurement amounts for assets and liabilities recorded in the accompanying Condensed Consolidated Balance Sheets consisted of short-term marketable debt securities of $52.4 million, which are included within Other current assets, and long-term marketable debt securities of $76.0 million, which are included in Other long-term assets. The Company’s marketable debt securities are typically valued at the closing price in the principal active market as of the last business day of the quarter or through the use of other market inputs relating to the securities, including benchmark yields and reported trades. The fair values of the marketable debt securities, by asset class, are described in “Note D – Marketable Debt Securities.” 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 G – Financing.” |
Marketable Debt Securities
Marketable Debt Securities | 3 Months Ended |
Nov. 23, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Debt Securities | Note D – Marketable Debt Securities The Company’s basis for determining the cost of a security sold is the “Specific Identification Model.” Unrealized gains (losses) on marketable debt securities are recorded in Accumulated other comprehensive loss. available-for-sale November 23, 2019 (in thousands) Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value $ 35,093 $ 34 $ (6 ) $ 35,121 60,901 515 (18 ) 61,398 1,787 1 (14 ) 1,774 30,076 4 (2 ) 30,078 $ $ $ ) $ 128,371 August 31, 2019 (in thousands) Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value $ 36,998 $ 29 $ (19 ) $ 37,008 45,741 763 – 46,504 2,089 2 (15 ) 2,076 53,345 – (7 ) 53,338 $ $ 794 $ (41 ) $ 138,926 The debt securities held at November 23, 2019, had effective maturities ranging from less than one year to approximately three years y The Company holds 41 securities that are in an unrealized loss position of approximately $40 thousand Included above in total available - - |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Nov. 23, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note E – Derivative Financial Instruments At November 23, 2019, the Company had $5.1 million recorded in Accumulated other comprehensive loss related to realized losses associated with terminated interest rate swap and treasury rate lock derivatives, which were designated as hedging instruments. Net losses are amortized into Interest expense over the remaining life of the associated debt. During the twelve week period ended November 23, 2019 and the comparable prior year period, the Company reclassified $509 thousand of net losses from Accumulated other comprehensive loss to Interest expense. The Company expects to reclassify $2.1 million of net losses from Accumulated other comprehensive loss to Interest expense over the next 12 months. |
Merchandise Inventories
Merchandise Inventories | 3 Months Ended |
Nov. 23, 2019 | |
Inventory Disclosure [Abstract] | |
Merchandise Inventories | Note F – Merchandise Inventories Merchandise inventories are stated at the lower of cost or market. Merchandise inventories include related purchasing, storage and handling costs. Inventory cost has been determined using the last-in, first-out has been slightly due to recent , 2019 and $404.9 million at August 31 , 2019 . |
Financing
Financing | 3 Months Ended |
Nov. 23, 2019 | |
Debt Disclosure [Abstract] | |
Financing | Note G – Financing The Company’s debt consisted of the following : (in thousands) November 23, 2019 August 31, $ 500,000 $ 500,000 250,000 250,000 500,000 500,000 300,000 300,000 500,000 500,000 300,000 300,000 400,000 400,000 400,000 400,000 600,000 600,000 450,000 450,000 1,109,700 1,030,000 5,309,700 5,230,000 22,376 23,656 $ 5,287,324 $ 5,206,344 As of November 23, 2019, the commercial paper borrowings and the $500 million 4.000% Senior Notes due November 2020 are classified as long-term in the accompanying Condensed 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; (iii) 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; (iv) the termination date of the Revolving Credit Agreement was extended from November 18, 2021 until November 18, 2022; and (v) the Company has the option to make one an additional year The fair value of the Company’s debt was estimated at $5.468 billion as of November 23, 2019, and $5.419 billion as of August 31, 2019, based on the quoted market prices for the same or similar issues or on the current rates available to the Company for debt of the same terms (Level 2). Such fair value is greater greater 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 November 23, 2019, the Company was in compliance with all covenants and expect s |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Nov. 23, 2019 | |
Equity [Abstract] | |
Stock Repurchase Program | Note H – Stock Repurchase Program From January 1, 1998 to November 23, 2019, the Company has repurchased a total of 147.3 million shares of its common stock at an aggregate cost of $21.873 billion, including 403,107 shares of its common stock at an aggregate cost of $450.0 million during the twelve week period ended November 23, 2019. On October 7, 2019, the Board voted to increase the repurchase b Subsequent to November 23, 2019, the Company has repurchased 101,815 120.0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Nov. 23, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note I – Accumulated Other Comprehensive Loss Accumulated other comprehensive loss includes foreign currency translation adjustments, 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) Foreign (2) Net Derivatives Total $ (265,598 ) $ 591 $ (4,315 ) $ (269,322 ) (1) 19,040 (233 ) – 18,807 (1) – 45 (3) 389 (4) 434 $ (246,558 ) $ 403 $ (3,926 ) $ (250,081 ) (in thousands) Foreign (2) Net Derivatives Total $ (228,899 ) $ (873 ) $ (6,033 ) $ (235,805 ) (1) (40,573 ) (77 ) – (40,650 ) c – – 389 (4) 389 $ (269,472 ) $ (950 ) $ (5,644 ) $ (276,066 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. non-U.S. (3) Represents realized losses on marketable debt securities, net of tax benefit (4) Represents losses on derivatives, net of taxes of $120 in both |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Nov. 23, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Note J – Goodwill and Intangibles As of November 23, 2019, there were no changes to the carrying amount of goodwill as described in our Annual Report on Form 10-K The carrying amounts of intangible assets are included in Other long-term assets as follows: (in thousands) Estimated Gross Accumulated Net Carrying Amortizing intangible assets: Technology 3-5 $ 870 $ (870 ) $ – Customer relationships 3-10 29,376 (24,722 ) 4,654 Total intangible assets other than goodwill $ 30,246 $ (25,592 ) $ 4,654 Amortization expense of intangible assets was $1.0 million |
Litigation
Litigation | 3 Months Ended |
Nov. 23, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Note K – Litigation The Company is involved in various 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. W hile |
Leases
Leases | 3 Months Ended |
Nov. 23, 2019 | |
Leases [Abstract] | |
Leases | Note L – Leases The Company adopted ASU 2016-02, Leases (Topic 842) non-lease non-lease non-lease right-of-use The Company’s leases primarily relate to its retail stores, distribution centers and vehicles under various non-callable The leases have varying terms and expire at various dates through 2040. Retail leases typically have initial terms of between one and 20 years, with one to six optional renewal periods of one to five years each. Our finance leases for vehicles have a stated borrowing rate which we use in determining the present value of the lease payments over the lease term. Substantially all our operating leases and finance leases for real estate do not provide a stated borrowing rate. Accordingly, we use the Company’s incremental borrowing rate at commencement or modification date in determining the present value of lease payments over the lease term. For operating leases that commenced prior to the date of adoption of the new standard, the Company used the incremental borrowing rate that corresponded to the remaining lease term as of the date of adoption. Lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet are as follows: (in thousands) Classification November 23, 2019 Operating lease right-of-use $ 2,585,105 (1) Property and equipment, less accumulated depreciation and 284,383 $ 2,869,488 Current portion of operating lease liab i $ 232,549 Accrued expenses and other 57,808 Operating lease liabilities, less current portion 2,506,829 Other long-term liabilities 137,856 $ 2,935,042 (1) Finance lease assets are net of accumulated amortization of $85,107. Lease costs for finance and operating leases for the twelve-week period ended November 23, 2019 are as follows: (in thousands) Statement of Income Location Twelve Weeks Ended November 23, 2019 Finance lease cost: Amortization of lease assets Depreciation and amortization $ 12,656 Interest on lease liabilities Interest expense, net 1,385 Operating lease cost (1) Selling, general and administrative expenses 81,799 Total lease cost $ 95,840 (1) Includes short-term leases, variable lease costs and sublease income, which are immaterial. The future rental payments, inclusive of renewal options that have been included in defining the expected lease term, of our operating and finance lease obligations as of November 23, 2019 having initial or remaining lease terms in excess of one year are as follows: (in thousands) Finance Operating Total 2020 $ 44,456 $ 238,345 $ 282,801 2021 55,841 318,198 374,039 2022 43,890 304,855 348,745 2023 30,643 285,161 315,804 2024 9,512 261,818 271,330 Thereafter 25,914 2,201,994 2,227,908 Total lease payments 210,256 3,610,371 3,820,627 Less: Interest (14,592 ) (870,993 ) (885,585 ) Present value of lease liabilities $ 195,664 $ 2,739,378 $ Prior Period Disclosures As a result of the adoption of ASU 2016-02, Leases (Topic 842), non-cancelable 10-K (in thousands) Operating Capital 2020 $ 315,424 $ 56,246 2021 302,056 51,679 2022 281,287 39,094 2023 252,868 28,401 2024 221,213 7,300 Thereafter 824,244 – Total minimum payments required $ 2,197,092 182,720 Less: Interest (2,815 ) Present value of minimum capital lease payments $ 179,905 The following table summarizes the Company’s lease term and discount rate assumptions: ve Weeks E nded 29 vehicles 4 15 Weighted-average discount rate: 3.20% vehicles 2.70% 3.56% The following table summarizes the other information related to the Company’s lease liabilities: (in thousands) Twelve Weeks Ended November 23, 2019 Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases $ 50,526 Leased assets obtained in exchange for new finance lease liabilities 18,297 Leased assets obtained in exchange for new operating lease liabilities 19,656 As of November 23, 2019, the Company has entered into additional leases which have not yet commenced and are therefore not part of the right-of-use |
Segment Reporting
Segment Reporting | 3 Months Ended |
Nov. 23, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note M – Segment Reporting The Company’s operating segments (Do m one Store s 10-K The Auto Parts Stores s stores in the U.S., Mexico and Brazil. Each store 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 product s . The Other category reflects business activities of t wo , E-commerce, . The Company evaluates its reportable segment primarily on the basis of net sales and segment profit, which is defined as gross profit. Segment results for the periods presented were as follows: Twelve Weeks Ended November 23, November 17, Stores $ 2,743,239 $ 2,593,440 49,799 48,293 $ 2,793,038 $ 2,641,733 Stores $ 1,466,161 $ 1,383,564 34,907 33,910 1,501,068 1,417,474 (1,001,045 ) (929,656 ) (43,743 ) (39,006 ) $ 456,280 $ 448,812 |
General (Policies)
General (Policies) | 3 Months Ended |
Nov. 23, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period | Operating results for the twelve weeks ended November 23, 2019 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 29, 2020. Each of the first three quarters of AutoZone’s fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarter of fiscal 2020 has 16 weeks and the fourth quarter of fiscal 2019 had 17 weeks. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) 2016-02 two-fold right-of-use 2016-02 T , 2019 , using the modified retrospective transition method. Under this method, existing leases were recorded at the adoption date, comparative periods were not restated and prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for the prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of prior lease identification under Accounting Standards Codification (“ASC”) Topic 840 . The Company made the accounting policy election for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term. The Company also elected the practical expedient to not separate lease components from the non-lease to determine the reasonably certain lease term for existing leases operating lease - -u September 1, . Existing prepaid and deferred rent were netted and right-of-use There was no adjustment to the opening balance of retained earnings upon adoption. The standard did not have a material impact on the Company’s Condensed Consolidated Statements of Income, Condensed Consolidated Statement of Cash Flows or covenant compliance under its existing credit agreement. Refer to “Note L- Leases”. In June 2018 , the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting 2018-07 its , 2019 . The Company determined that the provisions of ASU 2018-07 Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheet or Condensed Consolidated Statement of Cash Flows. Recently Issued Accounting Pronouncements: In August 2018 , the FASB issued ASU 2018-15, Intangibles – Goodwill and Other Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract internal-use 2018-15 , 2019 , including interim periods within those fiscal years. Early adoption is permitted. The Company will adopt this standard beginning with its , 2020 . The Company is currently evaluating the new guidance to determine the impact the adoption will have on its Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheet or Condensed Consolidated Statement of Cash Flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2018-19, Codific a 2016-13 investments in leases, financial receivables, debt securities, and other instruments, which will result in earlier recognition of credit losses . Further, the new credit loss model will affect how entities estimate their allowance for loss receivables that are current with respect to their payment terms. ASU 2016-13 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Nov. 23, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense | The weighted aver a , 2019 and November 17, 2018, using the Black-Scholes-Merton multiple-option pricing valuation model, was $252.39 Twelve Weeks Ended November 23, 2019 November 17, 2018 22 % 21 % 1.4 % 3.1 % 5.5 5.6 10 % 10 % 0 % 0 % |
Schedule of Nonvested Restricted Stock Units Activity | Transactions related to restricted stock units for the twelve weeks ended November 23, 2019 were s Number of Shares Weighted - 10,049 $ 773.61 7,008 1,060.81 (2,456 ) 772.80 (66 ) 772.80 14,535 $ 912.23 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 23, 2019 | |
Fair Value Disclosures [Abstract] | |
Company's marketable debt securities measured at Fair Value on Recurring Basis | The Company’s marketable debt securities measured at fair value on a recurring basis were as follows: November 23, 2019 (in thousands) Level 1 L Level 3 Fair Value $ 50,015 $ 2,350 $ – $ 52,365 72,075 3,931 – 76,006 $ 122,090 $ 6,281 $ – $ 128,371 August 31, 2019 (in thousands) Level 1 Level 2 Level 3 Fair Value $ 65,344 $ 2,614 $ – $ 67,958 65,573 5,395 – 70,968 $ 130,917 $ 8,009 $ – $ 138,926 |
Marketable Debt Securities (Tab
Marketable Debt Securities (Tables) | 3 Months Ended |
Nov. 23, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Marketable Securities | The Company’s available-for-sale November 23, 2019 (in thousands) Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value $ 35,093 $ 34 $ (6 ) $ 35,121 60,901 515 (18 ) 61,398 1,787 1 (14 ) 1,774 30,076 4 (2 ) 30,078 $ $ $ ) $ 128,371 August 31, 2019 (in thousands) Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value $ 36,998 $ 29 $ (19 ) $ 37,008 45,741 763 – 46,504 2,089 2 (15 ) 2,076 53,345 – (7 ) 53,338 $ $ 794 $ (41 ) $ 138,926 |
Financing (Tables)
Financing (Tables) | 3 Months Ended |
Nov. 23, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consisted of the following : (in thousands) November 23, 2019 August 31, $ 500,000 $ 500,000 250,000 250,000 500,000 500,000 300,000 300,000 500,000 500,000 300,000 300,000 400,000 400,000 400,000 400,000 600,000 600,000 450,000 450,000 1,109,700 1,030,000 5,309,700 5,230,000 22,376 23,656 $ 5,287,324 $ 5,206,344 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Nov. 23, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss for the twelve week periods ended November 23, 2019 and November 17, 2018 consisted of the following: (in thousands) Foreign (2) Net Derivatives Total $ (265,598 ) $ 591 $ (4,315 ) $ (269,322 ) (1) 19,040 (233 ) – 18,807 (1) – 45 (3) 389 (4) 434 $ (246,558 ) $ 403 $ (3,926 ) $ (250,081 ) (in thousands) Foreign (2) Net Derivatives Total $ (228,899 ) $ (873 ) $ (6,033 ) $ (235,805 ) (1) (40,573 ) (77 ) – (40,650 ) c – – 389 (4) 389 $ (269,472 ) $ (950 ) $ (5,644 ) $ (276,066 ) (1) Amounts in parentheses indicate debits to Accumulated other comprehensive loss. (2) Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. non-U.S. (3) Represents realized losses on marketable debt securities, net of tax benefit (4) Represents losses on derivatives, net of taxes of $120 in both |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Nov. 23, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Amounts of Intangible Assets | The carrying amounts of intangible assets are included in Other long-term assets as follows: (in thousands) Estimated Gross Accumulated Net Carrying Amortizing intangible assets: Technology 3-5 $ 870 $ (870 ) $ – Customer relationships 3-10 29,376 (24,722 ) 4,654 Total intangible assets other than goodwill $ 30,246 $ (25,592 ) $ 4,654 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Nov. 23, 2019 | |
Leases [Abstract] | |
Balance Sheet Information Related To Leases | Lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet are as follows: (in thousands) Classification November 23, 2019 Operating lease right-of-use $ 2,585,105 (1) Property and equipment, less accumulated depreciation and 284,383 $ 2,869,488 Current portion of operating lease liab i $ 232,549 Accrued expenses and other 57,808 Operating lease liabilities, less current portion 2,506,829 Other long-term liabilities 137,856 $ 2,935,042 (1) Finance lease assets are net of accumulated amortization of $85,107. |
Lease Cost | Lease costs for finance and operating leases for the twelve-week period ended November 23, 2019 are as follows: (in thousands) Statement of Income Location Twelve Weeks Ended November 23, 2019 Finance lease cost: Amortization of lease assets Depreciation and amortization $ 12,656 Interest on lease liabilities Interest expense, net 1,385 Operating lease cost (1) Selling, general and administrative expenses 81,799 Total lease cost $ 95,840 (1) Includes short-term leases, variable lease costs and sublease income, which are immaterial. |
Summary Of The Future Maturities Of The Company's Lease Liabilities | The future rental payments, inclusive of renewal options that have been included in defining the expected lease term, of our operating and finance lease obligations as of November 23, 2019 having initial or remaining lease terms in excess of one year are as follows: (in thousands) Finance Operating Total 2020 $ 44,456 $ 238,345 $ 282,801 2021 55,841 318,198 374,039 2022 43,890 304,855 348,745 2023 30,643 285,161 315,804 2024 9,512 261,818 271,330 Thereafter 25,914 2,201,994 2,227,908 Total lease payments 210,256 3,610,371 3,820,627 Less: Interest (14,592 ) (870,993 ) (885,585 ) Present value of lease liabilities $ 195,664 $ 2,739,378 $ |
Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases and Capital Leases | Future minimum annual rental commitments under non-cancelable operating leases and capital leases were as follows as of August 31, 2019: (in thousands) Operating Capital 2020 $ 315,424 $ 56,246 2021 302,056 51,679 2022 281,287 39,094 2023 252,868 28,401 2024 221,213 7,300 Thereafter 824,244 – Total minimum payments required $ 2,197,092 182,720 Less: Interest (2,815 ) Present value of minimum capital lease payments $ 179,905 |
Information On Lease Term And Discount Rate | The following table summarizes the Company’s lease term and discount rate assumptions: ve Weeks E nded 29 vehicles 4 15 Weighted-average discount rate: 3.20% vehicles 2.70% 3.56% |
Other Information Related To Lease Liabilities | The following table summarizes the other information related to the Company’s lease liabilities: (in thousands) Twelve Weeks Ended November 23, 2019 Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases $ 50,526 Leased assets obtained in exchange for new finance lease liabilities 18,297 Leased assets obtained in exchange for new operating lease liabilities 19,656 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Nov. 23, 2019 | |
Segment Reporting [Abstract] | |
Segment Results | The Company evaluates its reportable segment primarily on the basis of net sales and segment profit, which is defined as gross profit. Segment results for the periods presented were as follows: Twelve Weeks Ended November 23, November 17, Stores $ 2,743,239 $ 2,593,440 49,799 48,293 $ 2,793,038 $ 2,641,733 Stores $ 1,466,161 $ 1,383,564 34,907 33,910 1,501,068 1,417,474 (1,001,045 ) (929,656 ) (43,743 ) (39,006 ) $ 456,280 $ 448,812 |
General - Additional Informatio
General - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 23, 2019 | Sep. 01, 2019 | Aug. 31, 2019 |
Lease Right Of Use Assets | $ 2,585,105 | $ 0 | |
Lease Liabilities | $ 2,739,378 | ||
Accounting Standards Update 2016-02 [Member] | |||
Lease Right Of Use Assets | $ 2,500,000 | ||
Lease Liabilities | $ 2,700,000 |
Share-Based Payments - Weighted
Share-Based Payments - Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense (Detail) | 3 Months Ended | |
Nov. 23, 2019 | Nov. 17, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected price volatility | 22.00% | 21.00% |
Risk-free interest rates | 1.40% | 3.10% |
Weighted average expected lives (in years) | 5 years 6 months | 5 years 7 months 6 days |
Forfeiture rate | 10.00% | 10.00% |
Dividend yield | 0.00% | 0.00% |
Share-Based Payments - Schedule
Share-Based Payments - Schedule of Nonvested Restricted Stock Units Activity (Detail) | 3 Months Ended |
Nov. 23, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested, Beginning balance, Number of Shares | shares | 10,049 |
Granted, Number of Shares | shares | 7,008 |
Vested, Number of Shares | shares | (2,456) |
Canceled or forfeited, Number of Shares | shares | (66) |
Nonvested, Ending balance, Number of Shares | shares | 14,535 |
Nonvested, Beginning balance, Weighted Average Exercise Price | $ / shares | $ 773.61 |
Granted, Weighted Average Exercise Price | $ / shares | 1,060.81 |
Vested, Weighted Average Exercise Price | $ / shares | 772.80 |
Canceled or forfeited, Weighted Average Exercise Price | $ / shares | 772.80 |
Nonvested, Ending balance, Weighted Average Exercise Price | $ / shares | $ 912.23 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Nov. 23, 2019 | Nov. 17, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value of options granted | $ 252.39 | $ 208.31 |
Stock options granted | 188,324 | 171,293 |
Stock options exercised - Shares | 18,407 | 129,559 |
Stock options exercised - Weighted average exercise price | $ 568.16 | $ 359.94 |
Restricted stock units granted | 7,008 | |
share-based compensation expense | $ 10,000 | $ 10,500 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value of options granted | $ 1,060.81 | |
Restricted stock units granted | 7,008 | 10,474 |
Non vested restricted stock unit award | $ 11,700,000 | |
Estimated weighted average period | 3 years 3 months 18 days | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Anti-dilutive shares excluded from the computation of earnings per share | 107,511 | 427,407 |
Fair Value Measurements - Compa
Fair Value Measurements - Company's marketable debt securities measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Nov. 23, 2019 | Aug. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 128,371 | $ 138,926 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 52,365 | 67,958 |
Other long-term assets | 76,006 | 70,968 |
Total | 128,371 | 138,926 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 50,015 | 65,344 |
Other long-term assets | 72,075 | 65,573 |
Total | 122,090 | 130,917 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 2,350 | 2,614 |
Other long-term assets | 3,931 | 5,395 |
Total | $ 6,281 | $ 8,009 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Nov. 23, 2019 | Aug. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable debt securities | $ 52,365 | $ 67,958 |
Long-term marketable debt securities | $ 76,006 | $ 70,968 |
Marketable Debt Securities - Av
Marketable Debt Securities - Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Nov. 23, 2019 | Aug. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | $ 127,857 | $ 138,173 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 554 | 794 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (40) | (41) |
Available-For-Sale Marketable Securities, Fair Value | 128,371 | 138,926 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 35,093 | 36,998 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 34 | 29 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (6) | (19) |
Available-For-Sale Marketable Securities, Fair Value | 35,121 | 37,008 |
Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 60,901 | 45,741 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 515 | 763 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (18) | 0 |
Available-For-Sale Marketable Securities, Fair Value | 61,398 | 46,504 |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 1,787 | 2,089 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 1 | 2 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (14) | (15) |
Available-For-Sale Marketable Securities, Fair Value | 1,774 | 2,076 |
Asset-Backed Securities and Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 30,076 | 53,345 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 4 | 0 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (2) | (7) |
Available-For-Sale Marketable Securities, Fair Value | $ 30,078 | $ 53,338 |
Marketable Debt Securities - Ad
Marketable Debt Securities - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Nov. 23, 2019USD ($)Securities | Aug. 31, 2019USD ($) | |
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 | 41 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | $ 40 | $ 41 |
Marketable securities transferred | $ 29,200 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Nov. 23, 2019USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative losses recorded in Accumulated other comprehensive loss | $ 5,100 |
Net derivative losses amortized into Interest expense | 509 |
Net derivative loss expected to be reclassified over next 12 months | $ 2,100 |
Merchandise Inventories - Addit
Merchandise Inventories - Additional Information (Detail) - USD ($) $ in Millions | Nov. 23, 2019 | Aug. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Unrecorded adjustment for LIFO value in excess of replacement value | $ 374.8 | $ 404.9 |
Financing - Schedule of Debt (D
Financing - Schedule of Debt (Detail) - USD ($) $ in Thousands | Nov. 23, 2019 | Aug. 31, 2019 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 1,109,700 | $ 1,030,000 |
Total debt before discounts and debt issuance costs | 5,309,700 | 5,230,000 |
Less: Discounts and debt issuance costs | 22,376 | 23,656 |
Long-term debt | 5,287,324 | 5,206,344 |
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 |
3.125% Senior Notes due April 2024, effective interest rate 3.32% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 300,000 | 300,000 |
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 |
3.750% Senior Notes due April 2029, effective interest rate of 3.86% [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 450,000 | $ 450,000 |
Financing - Schedule of Debt (P
Financing - Schedule of Debt (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Nov. 23, 2019 | Aug. 31, 2019 | |
Commercial paper, weighted average interest rate of 1.76% and 2.28% at November 23, 2019 and August 31, 2019, respectively [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate of commercial paper | 1.76% | 2.28% |
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 |
3.125% Senior Notes due April 2024, effective interest rate 3.32% [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.125% | 3.125% |
Effective interest rate | 3.32% | 3.32% |
Debt instrument maturity, month and year | 2024-04 | 2024-04 |
3.250% Senior Notes due April 2025, effective interest rate 3.36% [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.25% | 3.25% |
Effective interest rate | 3.36% | 3.36% |
Debt instrument maturity, month and year | 2025-04 | 2025-04 |
3.125% Senior Notes due April 2026, effective interest rate of 3.28% [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.125% | 3.125% |
Effective interest rate | 3.28% | 3.28% |
Debt instrument maturity, month and year | 2026-04 | 2026-04 |
3.750% Senior Notes due June 2027, effective interest rate of 3.83% [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.75% | 3.75% |
Effective interest rate | 3.83% | 3.83% |
Debt instrument maturity, month and year | 2027-06 | 2027-06 |
3.750% Senior Notes due April 2029, effective interest rate of 3.86% [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.75% | 3.75% |
Effective interest rate | 3.86% | 3.86% |
Debt instrument maturity, month and year | 2029-04 | 2029-04 |
Financing - Additional Informat
Financing - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Nov. 23, 2019 | Aug. 31, 2019 | |
Debt Instrument [Line Items] | ||
Remaining borrowing capacity under revolving credit facility | $ 1,997,000,000 | |
Amount available under credit facility | 2,000,000,000 | |
Fair value of the Company's debt | 5,468,000,000 | $ 5,419,000,000 |
Excess (shortfall) of fair value of debt over (from) carrying value | 180,600,000 | 212,700,000 |
Third Amended and Restated Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Amount available under credit facility | 1,600,000,000 | |
Master Extension Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Amount available under credit facility | 2,000,000,000 | |
Revolving credit agreement, available additional borrowing capacity | 400,000,000 | |
Maximum amount available under credit facility | $ 2,400,000,000 | |
Credit facility expiration date | Nov. 18, 2022 | |
Credit Agreement description | Under the Revolving Credit 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 | $ 3,200,000 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Remaining borrowing capacity under revolving credit facility | 2,000,000,000 | |
4.000% Senior Notes due November 2020, effective interest rate of 4.43% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 500,000,000 | $ 500,000,000 |
Stated interest rate percentage | 4.00% | 4.00% |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) shares in Thousands | Oct. 07, 2019 | Dec. 13, 2019 | Nov. 23, 2019 | Nov. 17, 2018 | Nov. 23, 2019 |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchased cumulative, shares | 403 | 654 | 147,300 | ||
Purchase of treasury stock | $ 449,999,000 | $ 497,060,000 | $ 21,873,000,000 | ||
Increase in authorization of stock repurchase, value | $ 1,250,000,000 | ||||
Stock repurchase authorized | $ 23,150,000,000 | ||||
Remaining value authorized for share repurchases | $ 1,277,000 | $ 1,277,000 | |||
Subsequent Events [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchased cumulative, shares | 101,815 | ||||
Purchase of treasury stock | $ 120,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 23, 2019 | Nov. 17, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ (1,713,851) | $ (1,520,355) |
Balance | (1,776,090) | (1,658,616) |
Foreign Currency and Other [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (265,598) | (228,899) |
Other comprehensive income (loss) before reclassifications | 19,040 | (40,573) |
Balance | (246,558) | (269,472) |
Net Unrealized Gain (Loss) on Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 591 | (873) |
Other comprehensive income (loss) before reclassifications | (233) | (77) |
Amounts reclassified from Accumulated other comprehensive income (loss) | 45 | 0 |
Balance | 403 | (950) |
Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (4,315) | (6,033) |
Amounts reclassified from Accumulated other comprehensive income (loss) | 389 | 389 |
Balance | (3,926) | (5,644) |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (269,322) | (235,805) |
Other comprehensive income (loss) before reclassifications | 18,807 | (40,650) |
Amounts reclassified from Accumulated other comprehensive income (loss) | 434 | 389 |
Balance | $ (250,081) | $ (276,066) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 23, 2019 | Nov. 17, 2018 | |
Net Unrealized Gain (Loss) on Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses) on marketable securities, taxes | $ 12 | |
Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net derivative activities, taxes | $ 120 | $ 120 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 23, 2019 | Nov. 17, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense of intangible assets | $ 1 | $ 1 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Carrying Amounts of Intangible Assets (Detail) $ in Thousands | 3 Months Ended |
Nov. 23, 2019USD ($) | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | $ 30,246 |
Finite Lived, Accumulated Amortization | (25,592) |
Total intangible assets other than goodwill, Net Carrying Amount | 4,654 |
Technology [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | 870 |
Finite Lived, Accumulated Amortization | $ (870) |
Technology [Member] | Minimum [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Technology [Member] | Maximum [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
Customer Relationships [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Finite Lived, Gross Carrying Amount | $ 29,376 |
Finite Lived, Accumulated Amortization | (24,722) |
Finite Lived, Net Carrying Amount | $ 4,654 |
Customer Relationships [Member] | Minimum [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Nov. 23, 2019USD ($) | |
Renewal Options And Lease term | The leases have varying terms and expire at various dates through 2040. Retail leases typically have initial terms of between one and 20 years, with one to six optional renewal periods of one to five years each. |
Lease Accumulated Amortization | $ 85,107 |
Additional leases not yet commenced, undiscounted future payments | $ 30,600 |
Minimum [Member] | |
Operating lease commencement date | 2020 |
Maximum [Member] | |
Operating lease commencement date | 2022 |
Lease - Summary of Lease-relate
Lease - Summary of Lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Nov. 23, 2019 | Aug. 31, 2019 |
Assets | ||
Operating lease assets | $ 2,585,105 | $ 0 |
Total lease assets | 2,869,488 | |
Current | ||
Operating | 232,549 | 0 |
Noncurrent | ||
Operating | 2,506,829 | $ 0 |
Total lease liabilities | 2,935,042 | |
Operating lease right-of-use assets | ||
Assets | ||
Operating lease assets | 2,585,105 | |
Property and equipment, less accumulated depreciation and amortization | ||
Assets | ||
Finance lease assets | 284,383 | |
Current portion of operating lease liablities | ||
Current | ||
Operating | 232,549 | |
Accrued expenses and other | ||
Current | ||
Finance | 57,808 | |
Operating lease liabilities, less current portion | ||
Noncurrent | ||
Operating | 2,506,829 | |
Other long-term liabilities | ||
Noncurrent | ||
Finance | $ 137,856 |
Leases - Lease Cost (Detail)
Leases - Lease Cost (Detail) $ in Thousands | 3 Months Ended |
Nov. 23, 2019USD ($) | |
Amortization of lease assets | $ 85,107 |
Total lease cost | 95,840 |
Depreciation and amortization | |
Amortization of lease assets | 12,656 |
Interest expense, net | |
Interest on lease liabilities | 1,385 |
Selling, general and administrative expenses | |
Operating lease cost | $ 81,799 |
Leases - Summary Of The Future
Leases - Summary Of The Future Maturities Of The Company's Lease Liabilities (Detail) $ in Thousands | Nov. 23, 2019USD ($) |
2020 | $ 44,456 |
2021 | 55,841 |
2022 | 43,890 |
2023 | 30,643 |
2024 | 9,512 |
Thereafter | 25,914 |
Total Lease Payments | 210,256 |
Less: Interest | (14,592) |
Present value of lease liabilities | 195,664 |
2020 | 238,345 |
2021 | 318,198 |
2022 | 304,855 |
2023 | 285,161 |
2024 | 261,818 |
Thereafter | 2,201,994 |
Total Lease Payments | 3,610,371 |
Less: Interest | (870,993) |
Present value of lease liabilities | 2,739,378 |
2020 | 282,801 |
2021 | 374,039 |
2022 | 348,745 |
2023 | 315,804 |
2024 | 271,330 |
Thereafter | 2,227,908 |
Total Lease Payments | 3,820,627 |
Less: Interest | (885,585) |
Present value of lease liabilities | $ 2,935,042 |
Leases - Future Minimum Annual
Leases - Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases and Capital Leases (Detail) $ in Thousands | Aug. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 315,424 |
2021 | 302,056 |
2022 | 281,287 |
2023 | 252,868 |
2024 | 221,213 |
Thereafter | 824,244 |
Total minimum payments required | 2,197,092 |
2020 | 56,246 |
2021 | 51,679 |
2022 | 39,094 |
2023 | 28,401 |
2024 | 7,300 |
Thereafter | 0 |
Total minimum payments required | 182,720 |
Less: Interest | (2,815) |
Present value of minimum capital lease payments | $ 179,905 |
Leases - Information On Lease T
Leases - Information On Lease Term And Discount Rate (Detail) | 3 Months Ended |
Nov. 23, 2019 | |
Weighted-average remaining lease term (years) | |
Finance leases – real estate | 29 years |
Finance leases – vehicles | 4 years |
Operating leases | 15 years |
Weighted-average discount rate: | |
Finance leases – real estate | 3.20% |
Finance leases – vehicles | 2.70% |
Operating leases | 3.56% |
Leases - Other Information Rela
Leases - Other Information Related To Lease Liabilities (Detail) $ in Thousands | 3 Months Ended |
Nov. 23, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases | $ 50,526 |
Leased assets obtained in exchange for new finance lease liabilities | 18,297 |
Leased assets obtained in exchange for new operating lease liabilities | $ 19,656 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Nov. 23, 2019ItemLocation | |
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 | 6,433 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 23, 2019 | Nov. 17, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 2,793,038 | $ 2,641,733 |
Gross profit | 1,501,068 | 1,417,474 |
Operating, selling, general and administrative expenses | (1,001,045) | (929,656) |
Interest expense, net | (43,743) | (39,006) |
Income before income taxes | 456,280 | 448,812 |
Auto Parts Stores [ Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,743,239 | 2,593,440 |
Gross profit | 1,466,161 | 1,383,564 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 49,799 | 48,293 |
Gross profit | $ 34,907 | $ 33,910 |