Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Aug. 28, 2021 | Oct. 18, 2021 | Feb. 13, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Aug. 28, 2021 | ||
Entity File Number | 1-10714 | ||
Entity Registrant Name | AUTOZONE, INC | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 62-1482048 | ||
Entity Address, Address Line One | 123 South Front Street | ||
Entity Address, City or Town | Memphis | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 38103 | ||
City Area Code | 901 | ||
Local Phone Number | 495-6500 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | AZO | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 20,967,962 | ||
Entity Public Float | $ 24,697,255,765 | ||
Current Fiscal Year End Date | --08-28 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000866787 | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | true |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 14,629,585 | $ 12,631,967 | $ 11,863,743 |
Cost of sales, including warehouse and delivery expenses | 6,911,800 | 5,861,214 | 5,498,742 |
Gross profit | 7,717,785 | 6,770,753 | 6,365,001 |
Operating, selling, general and administrative expenses | 4,773,258 | 4,353,074 | 4,148,864 |
Operating profit | 2,944,527 | 2,417,679 | 2,216,137 |
Interest expense, net | 195,337 | 201,165 | 184,804 |
Income before income taxes | 2,749,190 | 2,216,514 | 2,031,333 |
Income tax expense | 578,876 | 483,542 | 414,112 |
Net income | $ 2,170,314 | $ 1,732,972 | $ 1,617,221 |
Weighted average shares for basic earnings per share | 22,237 | 23,540 | 24,966 |
Effect of dilutive stock equivalents | 562 | 553 | 532 |
Weighted average shares for diluted earnings per share | 22,799 | 24,093 | 25,498 |
Basic earnings per share | $ 97.60 | $ 73.62 | $ 64.78 |
Diluted earnings per share | $ 95.19 | $ 71.93 | $ 63.43 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,170,314 | $ 1,732,972 | $ 1,617,221 |
Other comprehensive gain (loss) income: | |||
Foreign currency translation adjustments | 44,683 | (66,723) | (36,699) |
Unrealized (losses) gains on marketable debt securities, net of taxes | (1,256) | 1,254 | 1,464 |
Net derivative activities, net of taxes | 2,839 | (19,461) | 1,718 |
Total other comprehensive income (loss) | 46,266 | (84,930) | (33,517) |
Comprehensive income | $ 2,216,580 | $ 1,648,042 | $ 1,583,704 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,171,335 | $ 1,750,815 |
Accounts receivable | 378,392 | 364,774 |
Merchandise inventories | 4,639,813 | 4,473,282 |
Other current assets | 225,763 | 223,001 |
Total current assets | 6,415,303 | 6,811,872 |
Property and equipment: | ||
Land | 1,261,509 | 1,205,228 |
Buildings and improvements | 4,277,593 | 4,020,271 |
Equipment | 2,407,046 | 2,158,251 |
Leasehold improvements | 644,345 | 586,839 |
Construction in progress | 216,685 | 165,953 |
Property and equipment | 8,807,178 | 8,136,542 |
Less: Accumulated depreciation and amortization | (3,950,287) | (3,627,321) |
Property and equipment, net | 4,856,891 | 4,509,221 |
Operating lease right-of-use assets | 2,718,712 | 2,581,677 |
Goodwill | 302,645 | 302,645 |
Deferred income taxes | 41,043 | 27,843 |
Other long-term assets | 181,605 | 190,614 |
Other long-term assets, total | 3,244,005 | 3,102,779 |
Total assets | 14,516,199 | 14,423,872 |
Current liabilities: | ||
Accounts payable | 6,013,924 | 5,156,324 |
Current portion of operating lease liabilities | 236,568 | 223,846 |
Accrued expenses and other | 1,039,788 | 827,668 |
Income taxes payable | 79,474 | 75,253 |
Total current liabilities | 7,369,754 | 6,283,091 |
Long-term debt | 5,269,820 | 5,513,371 |
Operating lease liabilities, less current portion | 2,632,842 | 2,501,560 |
Deferred income taxes | 337,125 | 354,186 |
Other long-term liabilities | 704,194 | 649,641 |
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; 23,007 shares issued and 21,138 shares outstanding as of August 28, 2021; 23,697 shares issued and 23,376 shares outstanding as of August 29, 2020 | 230 | 237 |
Additional paid-in capital | 1,465,669 | 1,283,495 |
Retained deficit | (419,829) | (1,450,970) |
Accumulated other comprehensive loss | (307,986) | (354,252) |
Treasury stock, at cost | (2,535,620) | (356,487) |
Total stockholders' deficit | (1,797,536) | (877,977) |
Total liabilities and stockholders' deficit | $ 14,516,199 | $ 14,423,872 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 23,007 | 23,697 |
Common stock, shares outstanding | 21,138 | 23,376 |
Preferred Stock | ||
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 2,170,314 | $ 1,732,972 | $ 1,617,221 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment and intangibles | 407,683 | 397,466 | 369,957 |
Amortization of debt origination fees | 12,858 | 10,730 | 8,162 |
Deferred income taxes | (34,432) | 51,077 | 35,051 |
Share-based compensation expense | 56,112 | 44,835 | 43,255 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (11,039) | (58,564) | (48,512) |
Merchandise inventories | (138,517) | (184,174) | (394,147) |
Accounts payable and accrued expenses | 1,029,912 | 531,131 | 464,176 |
Income taxes payable | 29,467 | 90,172 | (10,489) |
Other, net | (3,815) | 104,463 | 43,839 |
Net cash provided by operating activities | 3,518,543 | 2,720,108 | 2,128,513 |
Cash flows from investing activities: | |||
Capital expenditures | (621,767) | (457,736) | (496,050) |
Purchase of marketable debt securities | (63,676) | (90,949) | (55,538) |
Proceeds from sale of marketable debt securities | 95,393 | 84,237 | 53,140 |
Investment in tax credit equity investments | (41,712) | (45,190) | |
Proceeds from disposal of capital assets and other, net | 29,984 | 11,763 | 6,602 |
Net cash used in investing activities | (601,778) | (497,875) | (491,846) |
Cash flows from financing activities: | |||
Net payments of commercial paper | (1,030,000) | (295,300) | |
Proceeds from issuance of debt | 1,850,000 | 750,000 | |
Repayment of debt | (250,000) | (500,000) | (250,000) |
Net proceeds from sale of common stock | 187,757 | 68,392 | 188,819 |
Purchase of treasury stock | (3,378,321) | (930,903) | (2,004,896) |
Repayment of principal portion of finance lease liabilities | (59,853) | (52,158) | (53,307) |
Other, net | (48,967) | (9,404) | |
Net cash used in financing activities | (3,500,417) | (643,636) | (1,674,088) |
Effect of exchange rate changes on cash | 4,172 | (4,082) | (4,103) |
Net (decrease)/increase in cash and cash equivalents | (579,480) | 1,574,515 | (41,524) |
Cash and cash equivalents at beginning of period | 1,750,815 | 176,300 | 217,824 |
Cash and cash equivalents at end of period | 1,171,335 | 1,750,815 | 176,300 |
Supplemental cash flow information: | |||
Interest paid, net of interest cost capitalized | 187,948 | 161,864 | 153,371 |
Income taxes paid | 574,854 | 339,486 | 383,871 |
Leased assets obtained in exchange for new finance lease liabilities | 112,095 | 115,867 | $ 147,699 |
Leased assets obtained in exchange for new operating lease liabilities | $ 444,626 | $ 425,018 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital | Retained DeficitCumulative effect of adoption of ASU 2014-09 | Retained Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Cumulative effect of adoption of ASU 2014-09 | Total |
Balance at August 25, 2018, as adjusted | $ 275 | $ 1,155,426 | $ (6,773) | $ (1,215,597) | $ (235,805) | $ (1,231,427) | $ (6,773) | $ (1,527,128) |
Balance at August 25, 2018, as adjusted, shares | 27,530 | |||||||
Balance at Aug. 25, 2018 | $ 275 | 1,155,426 | (1,208,824) | (235,805) | (1,231,427) | (1,520,355) | ||
Balance, Shares at Aug. 25, 2018 | 27,530 | |||||||
Net income | 1,617,221 | 1,617,221 | ||||||
Total other comprehensive income | (33,517) | (33,517) | ||||||
Purchase of treasury stock | (2,004,896) | (2,004,896) | ||||||
Retirement of treasury shares | $ (26) | (125,442) | (1,706,971) | 1,832,439 | ||||
Retirement of treasury shares, shares | (2,563) | |||||||
Issuance of common stock under stock options and stock purchase plans | $ 5 | 195,185 | 195,190 | |||||
Issuance of common stock under stock options and stock purchase plans, Shares | 478 | |||||||
Share-based compensation expense | 39,279 | 39,279 | ||||||
Balance at Aug. 31, 2019 | $ 254 | 1,264,448 | (1,305,347) | (269,322) | (1,403,884) | (1,713,851) | ||
Balance, shares at Aug. 31, 2019 | 25,445 | |||||||
Net income | 1,732,972 | 1,732,972 | ||||||
Total other comprehensive income | (84,930) | (84,930) | ||||||
Purchase of treasury stock | (930,903) | (930,903) | ||||||
Retirement of treasury shares | $ (19) | (99,686) | (1,878,595) | 1,978,300 | ||||
Retirement of treasury shares, shares | (1,912) | |||||||
Issuance of common stock under stock options and stock purchase plans | $ 2 | 74,985 | 74,987 | |||||
Issuance of common stock under stock options and stock purchase plans, Shares | 164 | |||||||
Share-based compensation expense | 43,748 | 43,748 | ||||||
Balance at Aug. 29, 2020 | $ 237 | 1,283,495 | (1,450,970) | (354,252) | (356,487) | (877,977) | ||
Balance, shares at Aug. 29, 2020 | 23,697 | |||||||
Net income | 2,170,314 | 2,170,314 | ||||||
Total other comprehensive income | 46,266 | 46,266 | ||||||
Purchase of treasury stock | (3,378,321) | (3,378,321) | ||||||
Retirement of treasury shares | $ (10) | (60,005) | (1,139,173) | 1,199,188 | ||||
Retirement of treasury shares, shares | (1,044) | |||||||
Issuance of common stock under stock options and stock purchase plans | $ 3 | 187,754 | 187,757 | |||||
Issuance of common stock under stock options and stock purchase plans, Shares | 354 | |||||||
Share-based compensation expense | 54,425 | 54,425 | ||||||
Balance at Aug. 28, 2021 | $ 230 | $ 1,465,669 | $ (419,829) | $ (307,986) | $ (2,535,620) | $ (1,797,536) | ||
Balance, shares at Aug. 28, 2021 | 23,007 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Deficit (Parenthetical) - shares shares in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Statement of Stockholders' Deficit | |||
Purchase of treasury stock, shares | 2,592 | 826 | 2,182 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Aug. 28, 2021 | |
Significant Accounting Policies | |
Significant Accounting Policies | Note A – Significant Accounting Policies Business: Fiscal Year: Basis of Presentation: Variable Interest Entities: The Company considers its investment in these tax credit funds as an investment in a variable interest entity (“VIE”). The Company evaluates the investment in any VIE to determine whether it is the primary beneficiary. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. As of August 28, 2021, the Company held tax credit equity investments that were deemed to be VIE’s and determined that it was not the primary beneficiary of the entities, as it did not have the power to direct the activities that most significantly impacted the entity and accounted for this investment using the equity method. The Company’s maximum exposure to losses is limited to its net investment, which was $11.8 million as of August 28, 2021 and $6.5 million as of August 29, 2020, and was included within the Other long-term assets caption in the accompanying Consolidated Balance Sheets. Use of Estimates: Cash and Cash Equivalents: Cash balances are held in various locations around the world. Cash and cash equivalents of $80.4 million and $62.4 million were held outside of the U.S. as of August 28, 2021, and August 29, 2020, respectively, and were generally utilized to support the liquidity needs in foreign operations. Accounts Receivable: Financial Instruments - Credit Losses (Topic 326) Receivables are presented net of an allowance for credit losses. Allowances for expected credit losses are determined based on historical experience, the current economic environment as well as our expectations of future economic conditions and the current evaluation of the composition of accounts receivable. The Company will apply adjustments for specific factors and current economic conditions as needed at each reporting date. The Company’s allowance for credit losses are included in “Accounts receivable” on the accompanying Consolidated Balance Sheets as of August 28, 2021 and August 29, 2020. The balance of the allowance for credit losses was $11.4 million at August 28, 2021, and $10.0 million at August 29, 2020. Vendor Receivables: Merchandise Inventories: Marketable Debt Securities: Property and Equipment: 40 5 3 Impairment of Long-Lived Assets: Goodwill: 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: The assumptions made by management in estimating its self-insurance reserves include consideration of historical cost experience, judgments about the present and expected levels of cost per claim and retention levels. The Company utilizes various methods, including analyses of historical trends and use of a specialist, to estimate the costs to settle reported claims and claims incurred but not yet reported. The actuarial methods develop estimates of the future ultimate claim costs based on claims incurred as of the balance sheet date. When estimating these liabilities, the Company considers factors, such as the severity, duration and frequency of claims, legal costs associated with claims, healthcare trends and projected inflation of related factors. The Company’s liabilities for workers’ compensation, general and product liability, property and vehicle claims do not have scheduled maturities; however, the timing of future payments is predictable based on historical patterns and is relied upon in determining the current portion of these liabilities. Accordingly, the Company reflects the net present value of the obligations it determines to be long-term using the risk-free interest rate as of the balance sheet date. Leases: one Lease-related assets and liabilities are recognized for all leases with an initial term of 12 months or greater. The exercise of lease renewal options is at the Company’s sole discretion. The Company evaluates renewal options at commencement and on an ongoing basis and includes options that are reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. Certain lease agreements require variable payments based upon actual costs of common-area maintenance, real estate taxes and insurance. Financial Instruments: Income Taxes: The Company recognizes liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company reevaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. The Company classifies interest related to income tax liabilities, and if applicable, penalties, as a component of Income tax expense. The income tax liabilities and accrued interest and penalties 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: The Company’s performance obligations are typically satisfied when the customer takes possession of the merchandise. Revenue from retail customers is recognized when the customer leaves our store with the purchased products, typically at the point of sale or for E-commerce orders when the product is shipped. Revenue from commercial customers is recognized upon delivery, typically same-day. Payment from retail customers is at the point of sale and payment terms for commercial customers are based on the Company’s pre-established credit requirements and generally range from 1 to 30 days. Discounts, sales incentives and rebates are treated as separate performance obligations, and revenue allocated to these performance obligations is recognized as the obligations to the customer are satisfied. Additionally, the Company estimates and records gift card breakage as redemptions occur. The Company offers diagnostic and repair information software used in the automotive repair industry through ALLDATA. This revenue is recognized as services are provided. Revenue from these services are recognized over the life of the contract. 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. There were no material contract assets, liabilities or deferred costs recorded on the Consolidated Balance Sheet as of August 28, 2021 and August 29, 2020. Revenue related to unfulfilled performance obligations as of August 28, 2021 and August 29, 2020 is not significant. (Refer to “Note P – Segment Reporting” for additional information related to revenue recognized during the period.) 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 $85.9 million in fiscal 2021, $77.6 million in fiscal 2020 and $87.5 million in fiscal 2019. Vendor promotional funds, which reduced advertising expense, amounted to $53.2 million in fiscal 2021, $39.4 million in fiscal 2020 and $32.2 million in fiscal 2019. Cost of Sales and Operating, Selling, General and Administrative Expenses: Cost of Sales ● Total cost of merchandise sold, including: o Freight expenses associated with moving merchandise inventories from the Company’s vendors to the distribution centers; o Vendor allowances that are not reimbursements for specific, incremental and identifiable costs ● Costs associated with operating the Company’s supply chain, including payroll and benefits, warehouse occupancy, transportation and depreciation; and ● Inventory shrinkage Operating, Selling, General and Administrative Expenses ● Payroll and benefits for store, field leadership and store support employees; ● Occupancy of store and store support facilities; ● Depreciation and amortization related to store and store support assets; ● Transportation associated with field leadership, commercial sales force and deliveries from stores; ● Advertising; ● Self-insurance; and ● Other administrative costs, such as credit card transaction fees, legal costs, supplies and travel and lodging Warranty Costs: Shipping and Handling Costs: Pre-opening Expenses: Earnings per Share Share-Based Payments: Risk and Uncertainties: Recently Adopted Accounting Pronouncements: In 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 In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments Credit Losses. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Aug. 28, 2021 | |
Share-Based Payments | |
Share-Based Payments | Overview of Share-Based Payment Plans The Company has several active and inactive equity incentive plans under which the Company has been authorized to grant share-based awards to key employees and non-employee directors. Awards under these plans have been in the form of restricted stock, restricted stock units, stock options, stock appreciation rights and other awards as defined by the plans. The Company also has an Employee Stock Purchase Plan that allows employees to purchase Company shares at a discount subject to certain limitations. The Company also has an Executive Stock Purchase Plan which permits all eligible executives to purchase AutoZone’s common stock at a discount up to twenty-five percent of his or her annual salary and bonus. Amended and Restated AutoZone, Inc. 2011 Equity Incentive Award Plan On December 15, 2010, the Company’s stockholders approved the 2011 Equity Incentive Award Plan (the “2011 Plan”), allowing the Company to provide equity-based compensation to non-employee directors and employees for their service to AutoZone or its subsidiaries or affiliates. Prior to the Company’s adoption of the 2011 Plan, equity-based compensation was provided to employees under the 2006 Stock Option Plan and to non-employee directors under the 2003 Director Compensation Plan (the “2003 Comp Plan”). During fiscal 2016, the Company’s stockholders approved the Amended and Restated AutoZone, Inc. 2011 Equity Incentive Award Plan (the “Amended 2011 Equity Plan”). The Amended 2011 Equity Plan imposes a maximum limit on the compensation, measured as the sum of any cash compensation and the aggregate grant date fair value of awards granted under the Amended 2011 Equity Plan, which may be paid to non-employee directors for such service during any calendar year. The Amended 2011 Equity Plan also applies a ten-year term on the Amended 2011 Equity Plan through December 16, 2025 and extends the Company’s ability to grant incentive stock options under the Amended 2011 Equity Plan through October 7, 2025. AutoZone, Inc. 2020 Omnibus Incentive Award Plan On December 16, 2020, the Company’s stockholders approved the AutoZone, Inc. 2020 Omnibus Incentive Award Plan (the “2020 Omnibus Plan”), which serves as the successor to the Amended 2011 Equity Plan. The 2020 Omnibus Plan provides equity-based compensation to our non-employee directors and employees for their service to AutoZone or our subsidiaries or affiliates. Under the 2020 Omnibus Plan, participants may receive equity-based compensation in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalents, deferred stock, stock payments, performance based awards, cash based awards and other incentive awards structured by the Compensation Committee and the Board within parameters set forth in the 2020 Omnibus Plan. AutoZone, Inc. Director Compensation Program During fiscal 2020, the Company adopted the 2020 Director Compensation Program (the “Program”), which states that non-employee directors will receive their compensation in awards of restricted stock units under the Amended 2011 Equity Plan (or beginning January 1, 2021, the 2020 Omnibus Plan), with an option for a certain portion of a director’s compensation to be paid in cash at the non-employee director’s election. The Program replaced the 2018 Director Compensation Program. Under the Program, restricted stock units are granted January 1 of each year (the “Grant Date”). The number of restricted stock units is determined by dividing the amount of the annual retainer by the fair market value of the shares of common stock as of the Grant Date. The restricted stock units are fully vested on January 1 of each year and are paid in shares of the Company’s common stock on the fifth anniversary of the Grant Date or the date the non-employee director ceases to be a member of the Board (“Separation from Service”), whichever occurs first. Non-employee directors may elect to defer receipt of the restricted stock units until their Separation from Service. The cash portion of the award, if elected, is paid ratably over each calendar quarter. Total share-based compensation expense (a component of Operating, selling, general and administrative expenses) was $56.1 million for fiscal 2021, $44.8 million for fiscal 2020 and $43.3 million for fiscal 2019. As of August 28, 2021, share-based compensation expense for unvested awards not yet recognized in earnings is $52.7 million and will be recognized over a weighted average period of 1.7 years. General terms and methods of valuation for the Company’s share-based awards are as follows: Stock Options 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 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 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 28, August 29, August 31, 2021 2020 2019 Expected price volatility 28 % 22 % 21 % Risk-free interest rate 0.4 % 1.4 % 3.0 % Weighted average expected lives (in years) 5.6 5.5 5.6 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 $304.31 during fiscal 2021, $252.54 during fiscal 2020 and $208.37 during fiscal 2019. The intrinsic value of options exercised was $280.1 million in fiscal 2021, $101.9 million in fiscal 2020 and $227.4 million in fiscal 2019. The total fair value of options vested was $44.7 million in fiscal 2021, $39.1 million in fiscal 2020 and $34.5 million in fiscal 2019. The Company generally issues new shares when options are exercised. The following table summarizes information about stock option activity for the year ended August 28, 2021: Weighted Average Remaining Aggregate Weighted Contractual Intrinsic Number Average Term Value of Shares Exercise Price (in years) (in thousands) Outstanding – August 29, 2020 1,384,986 $ 677.15 Granted 202,820 1,152.54 Exercised (349,592) 541.80 Cancelled (30,160) 906.26 Outstanding – August 28, 2021 1,208,054 790.41 5.95 $ 915,807 Exercisable 766,453 669.30 4.68 673,858 Expected to vest 397,441 1,000.60 8.16 217,754 Available for future grants 1,188,220 Restricted Stock Units Restricted stock unit awards are valued at the market price of a share of the Company’s stock on the date of grant and vest ratably on an annual basis over a four-year service period and 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 forfeiture assumptions. As of August 28, 2021, total unrecognized stock-based compensation expense related to nonvested restricted stock unit awards, net of estimated forfeitures, was approximately $10.5 million, before income taxes, which we expect to recognize over an estimated weighted average period of 2.4 years. Transactions related to restricted stock units for the fiscal year ended August 28, 2021 are as follows: Weighted- Number Average Grant of Shares Date Fair Value Nonvested at August 29, 2020 14,160 $ 910.63 Granted 8,064 1,149.77 Vested (5,805) 977.48 Canceled or forfeited (668) 976.36 Nonvested at August 28, 2021 15,751 $ 1,005.41 Stock Appreciation Rights At August 28, 2021 and August 29, 2020, the Company had $7.5 million and $5.7 million, respectively of accrued compensation expense. There were 4,822 outstanding units issued under the 2003 Comp Plan and prior plans. As directors retire, this balance will be reduced. No additional shares of stock or units will be issued in future years under the 2003 Comp Plan or prior plans. Employee Stock Purchase Plan and Executive Stock Purchase Plan The Company recognized $2.5 million in compensation expense related to the discount on the selling of shares to employees and executives under the various share purchase plans in fiscal 2021, $3.1 million in fiscal 2020 and $2.8 million in fiscal 2019. Under the Employee Plan, 8,479, 10,525 and 11,011 shares were sold to employees in fiscal 2021, 2020 and 2019, respectively. The Company repurchased 7,611, 8,287 and 17,201 shares in fiscal 2021, 2020 and 2019, respectively, all at market value from employees electing to sell their stock. Purchases under the Executive Plan were 997, 1,204 and 1,483 shares in fiscal 2021, 2020 and 2019, respectively. 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 28, 2021, 133,762 shares of common stock were reserved for future issuance under the Employee Plan, and 234,364 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. 28, 2021 | |
Accrued Expenses and Other | |
Accrued Expenses and Other | Note C – Accrued Expenses and Other Accrued expenses and other consisted of the following: August 28, August 29, (in thousands) 2021 2020 Accrued compensation, related payroll taxes and benefits $ 470,561 $ 321,071 Property, sales and other taxes 135,831 121,196 Medical and casualty insurance claims (current portion) 121,237 112,746 Finance lease liabilities 89,932 67,498 Accrued interest 55,435 63,503 Accrued gift cards 50,369 43,876 Accrued sales and warranty returns 32,418 32,356 Other 84,005 65,422 $ 1,039,788 $ 827,668 The Company retains a significant portion of the insurance risks associated with workers’ compensation, employee health, general, product 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 per claim type are $2.0 million for workers’ compensation, $5.0 million for auto liability, $21.5 million for property and $1.0 million for general and product liability. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 28, 2021 | |
Income Taxes | |
Income Taxes | Note D – Income Taxes The components of income from continuing operations before income taxes are as follows: Year Ended August 28, August 29, August 31, (in thousands) 2021 2020 2019 Domestic $ 2,436,548 $ 1,960,320 $ 1,745,625 International 312,642 256,194 285,708 $ 2,749,190 $ 2,216,514 $ 2,031,333 The provision for income tax expense consisted of the following: Year Ended August 28, August 29, August 31, (in thousands) 2021 2020 2019 Current: Federal $ 438,686 $ 324,156 $ 274,504 State 79,271 47,880 45,457 International 95,351 60,429 59,100 613,308 432,465 379,061 Deferred: Federal (21,366) 43,706 25,757 State (1,707) 12,544 6,914 International (11,359) (5,173) 2,380 (34,432) 51,077 35,051 Income tax expense $ 578,876 $ 483,542 $ 414,112 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 August 28, August 29, August 31, (in thousands) 2021 2020 2019 Federal tax at statutory U.S. income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net 2.2 % 2.2 % 2.0 % Share-based compensation (1.7) % (0.7) % (1.8) % Impact of tax reform — — (0.4) % Global intangible lower-taxed income ("GILTI") 0.8 % 1.0 % 1.3 % Foreign Tax Credits (1.7) % (1.1) % (1.1) % Other 0.5 % (0.6) % (0.6) % Effective tax rate 21.1 % 21.8 % 20.4 % For the year ended August 28, 2021, August 29, 2020, and August 31, 2019, the Company recognized excess tax benefits from stock option exercises of $56.4 million, $20.9 million, and $46.0 million, respectively. Beginning with the year ended August 31, 2019, the Company is subject to a new tax on global intangible low-taxed income (“GILTI”) which is imposed on foreign earnings. The Company has made the election to record this tax as a period cost, thus has not adjusted the deferred tax assets or liabilities of its foreign subsidiaries for the new tax. Net impacts for GILTI are included in the provision for income taxes for the years ending August 28, 2021, August 29, 2020 and August 31, 2019. Significant components of the Company's deferred tax assets and liabilities were as follows: August 28, August 29, (in thousands) 2021 2020 Deferred tax assets: Net operating loss and credit carryforwards $ 41,825 $ 41,437 Accrued benefits 126,086 88,226 Operating lease liabilities 646,938 617,002 Other 69,340 69,788 Total deferred tax assets 884,189 816,453 Valuation allowances (31,098) (28,373) Net deferred tax assets 853,091 788,080 Deferred tax liabilities: Property and equipment (185,985) (173,696) Inventory (316,736) (298,585) Prepaid expenses (28,676) (55,827) Operating lease assets (609,336) (581,381) Other (8,440) (4,934) Deferred tax liabilities (1,149,173) (1,114,423) Net deferred tax liabilities $ (296,082) $ (326,343) For the year ended August 31, 2019, the Company held the assertion, with few exceptions, that current and accumulated earnings from foreign operations were not indefinitely reinvested. During the year ended August 29, 2020, the Company asserted indefinite reinvestment for basis differences and accumulated earnings through fiscal 2020 with respect to its foreign subsidiaries. For the year ended August 28, 2021, the Company does not assert permanent reinvestment of current year earnings with respect to its Mexican subsidiaries while maintaining its assertion of indefinite reinvestment of earnings of other foreign subsidiaries. Where necessary, taxes resulting from foreign distributions of current and accumulated earnings (e.g., withholding taxes) have been considered in the Company’s provision for income taxes. As of August 28, 2021, we have not recorded incremental income taxes for outside basis differences of $443.3 million in our investments in foreign subsidiaries, as these amounts are indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to the outside basis differences in these entities is not practicable. At August 28, 2021 and August 29, 2020, the Company had net operating loss (“NOL”) carryforwards totaling $259.1 million ($35.9 million tax effected) and $247.1 million ($32.2 million tax effected), respectively. Certain NOLs have no expiration date and others will expire, if not utilized, in various years from fiscal 2022 through 2041. At August 28, 2021 and August 29, 2020, the Company had deferred tax assets for income tax credit carryforwards of $6.0 and $9.2 million, respectively. Income tax credit carryforwards will expire, if not utilized, in various years from fiscal 2022 through 2037. At August 28, 2021 and August 29, 2020, the Company had a valuation allowance of $31.1 million and $28.4 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: August 28, August 29, (in thousands) 2021 2020 Beginning balance $ 31,942 $ 30,892 Additions based on tax positions related to the current year 10,806 8,512 Additions for tax positions of prior years 4,009 946 Reductions for tax positions of prior years (886) (4,124) Reductions due to settlements (2,204) — Reductions due to statute of limitations (3,870) (4,284) Ending balance $ 39,797 $ 31,942 Included in the August 28, 2021 and the August 29, 2020 balances are $25.8 million and $18.9 million, respectively, of unrecognized tax benefits that, if recognized, would reduce the Company’s effective tax rate. The balances above also include amounts of $10.4 million and $10.5 million for August 28, 2021 and the August 29, 2020, respectively, that are accounted for as reductions to deferred tax assets for NOL carryforwards and tax credit carryforwards. It is anticipated that in the event the associated uncertain tax positions are disallowed, the NOL carryforwards and tax credit carryforwards would be utilized to settle the liability. 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 $2.4 million and $1.6 million accrued for the payment of interest and penalties associated with unrecognized tax benefits at August 28, 2021 and August 29, 2020, 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. examinations by tax authorities for fiscal year 2016 and prior. The Company is typically engaged in various tax examinations at any given time by U.S. federal, U.S. state and local, and Non-U.S. taxing jurisdictions. As of August 28, 2021, the Company estimates that the amount of unrecognized tax benefits could be reduced by approximately $2.2 million over the next twelve months as a result of tax audit settlements. While the Company believes that it is adequately accrued for possible audit adjustments, the final resolution of these examinations cannot be determined at this time and could result in final settlements that differ from current estimates. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Aug. 28, 2021 | |
Fair Value Measurements | |
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 — 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: August 28, 2021 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 46,007 $ — $ — $ 46,007 Other long-term assets 54,105 13,806 — 67,911 $ 100,112 $ 13,806 $ — $ 113,918 August 29, 2020 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 75,651 $ 467 $ — $ 76,118 Other long-term assets 58,792 12,329 — 71,121 $ 134,443 $ 12,796 $ — $ 147,239 At August 28, 2021, the fair value measurement amounts for assets and liabilities recorded in the accompanying Consolidated Balance Sheet consisted of short-term marketable debt securities of $46.0 million, which are included within Other current assets and long-term marketable debt securities of $67.9 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 debt 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 values of the marketable debt securities by asset class are described in “Note F – Marketable Debt Securities.” Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis Certain non-financial assets and liabilities are required to be measured at fair value on a non-recurring basis in certain circumstances, including the event of impairment. These non-financial assets and liabilities could include assets and liabilities acquired in an acquisition as well as goodwill, intangible assets and property, plant and equipment that are determined to be impaired. At August 28, 2021, the Company did not have any other significant non-financial assets or liabilities that had been measured at fair value on a non-recurring basis subsequent to initial recognition. Financial Instruments not Recognized at Fair Value The Company has financial instruments, including cash and cash equivalents, accounts receivable, other current assets and accounts payable. The carrying amounts of these financial instruments approximate fair value because of their short maturities. A discussion of the carrying values and fair values of the Company’s debt is included in “Note I – Financing.” |
Marketable Debt Securities
Marketable Debt Securities | 12 Months Ended |
Aug. 28, 2021 | |
Marketable Debt Securities | |
Marketable Debt Securities | Note F – 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. The Company’s available-for-sale marketable debt securities consisted of the following: August 28, 2021 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 23,650 $ 329 $ (2) $ 23,977 Government bonds 65,416 338 (2) 65,752 Mortgage-backed securities 6,552 58 (8) 6,602 Asset-backed securities and other 17,551 43 (7) 17,587 $ 113,169 $ 768 $ (19) $ 113,918 August 29, 2020 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 46,652 $ 970 $ (4) $ 47,618 Government bonds 44,594 1,172 — 45,766 Mortgage-backed securities 4,842 75 — 4,917 Asset-backed securities and other 48,798 143 (3) 48,938 $ 144,886 $ 2,360 $ (7) $ 147,239 The marketable debt securities held at August 28, 2021, had effective maturities ranging from less than one year to approximately four years. The Company did not realize any material gains or losses on its marketable debt securities during fiscal 2021, 2020 or 2019. In evaluating whether a credit loss exists for the marketable debt securities, the Company considers factors such as the severity of the loss position, the credit worthiness of the investee, the term to maturity and the intent and ability to hold the investments until maturity or recovery of fair value. An allowance for credit losses was deemed unnecessary given consideration of the factors above. Included above in total marketable debt securities are $62.5 million and $30.1 million of marketable debt 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 28, 2021 and August 29, 2020, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Aug. 28, 2021 | |
Equity | |
Accumulated Other Comprehensive Loss | Note G – Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss includes certain adjustments to 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 marketable debt securities. Changes in Accumulated Other Comprehensive Loss consisted of the following: Net Unrealized Foreign Gain (Loss) (in thousands) Currency (1) on Securities Derivatives Total Balance at August 31, 2019 $ (265,598) $ 591 $ (4,315) $ (269,322) Other Comprehensive (Loss) Income before reclassifications (66,723) 1,117 (28,197) (93,803) Amounts reclassified from Accumulated Other Comprehensive Income (Loss) (2)(3) — 137 8,736 8,873 Balance at August 29, 2020 (332,321) 1,845 (23,776) (354,252) Other Comprehensive Income (Loss) before reclassifications 44,683 (1,379) — 43,304 Amounts reclassified from Accumulated Other Comprehensive (Loss) Income (2)(3) — 123 2,839 2,962 Balance at August 28, 2021 $ (287,638) $ 589 $ (20,937) $ (307,986) (1) Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. subsidiaries earnings. Other foreign currency is not shown net of additional U.S. tax as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested (2) Amounts in parentheses indicate debits to Accumulated Other Comprehensive Loss. (3) Amounts shown are net of taxes/tax benefits. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Aug. 28, 2021 | |
Derivative Financial Instruments | |
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 28, 2021, the Company had $27.5 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 fiscal 2021, the Company reclassified $3.7 million of net losses from Accumulated Other Comprehensive Loss to Interest expense. During fiscal 2020, the Company reclassified $2.6 million of net losses from Accumulated Other Comprehensive Loss to Interest expense. The Company expects to reclassify $3.6 million of net losses from Accumulated Other Comprehensive Loss to Interest expense over the next 12 months. |
Financing
Financing | 12 Months Ended |
Aug. 28, 2021 | |
Financing | |
Financing | Note I – Financing The Company’s debt consisted of the following: August 28, August 29, (in thousands) 2021 2020 2.500% Senior Notes due April 2021, effective interest rate of 2.62% $ — $ 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 3.125% Senior Notes due April 2024, effective interest rate 3.32% 300,000 300,000 3.250% Senior Notes due April 2025, effective interest rate 3.36% 400,000 400,000 3.625% Senior Notes due April 2025, effective interest rate 3.78% 500,000 500,000 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 3.750% Senior Notes due April 2029, effective interest rate of 3.86% 450,000 450,000 4.000% Senior Notes due April 2030, effective interest rate 4.09% 750,000 750,000 1.650% Senior Notes due January 2031, effective interest rate of 2.19% 600,000 600,000 Total debt before discounts and debt issuance costs 5,300,000 5,550,000 Less: Discounts and debt issuance costs 30,180 36,629 Long-term debt $ 5,269,820 $ 5,513,371 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 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 As of August 28, 2021, the Company had no outstanding borrowings and $1.7 million of outstanding letters of credit under the Revolving Credit Agreement. The Company intends to amend and restate its Revolving Credit Agreement and anticipates closing the agreement during the first quarter of fiscal year 2022. Under the Company’s Revolving Credit Agreement, 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. 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 28, 2021 was 6.9:1. On April 3, 2020, the Company entered into a 364-Day Credit Agreement (the “364-Day Credit Agreement”) to supplement the Company’s existing Revolving Credit Agreement. The 364-day Credit Agreement had a termination date of, and any amounts borrowed under the 364-Day Credit Agreement were due and payable on, April 2, 2021. Revolving loans under the 364-Day Credit Agreement could be base rate loans, Eurodollar Loans, or a combination of both, at the Company’s election. Effective February 22, 2021, the Company terminated the 364-Day Credit Agreement. There were no borrowings outstanding under the 364-Day Credit Agreement. The Company entered into the 364-Day Credit Agreement to augment its access to liquidity due to macroeconomic conditions existing at the time, and the Company determined the additional access to liquidity was no longer necessary. As of August 28, 2021, the $500 million 3.700% Senior Notes due April 2022 are classified as long-term in the accompanying Consolidated Balance Sheets as the Company has the ability and intent to refinance them on a long-term basis through available capacity in its Revolving Credit Agreement. As of August 28, 2021, the Company had $1.998 billion of availability under its $2.0 billion Revolving Credit Agreement, which would allow the Company to replace these short-term obligations with a long-term financing facility. On March 15, 2021 the Company repaid the $250 million 2.500% Senior Notes due April 2021, which were callable at par in March 2021. On August 14, 2020, the Company issued $600 million in 1.650% Senior Notes due January 2031 under its automatic shelf registration statement on Form S-3, filed with the SEC on April 4, 2019 (File No. 333-230719) (the “2019 Shelf Registration Statement”). The 2019 Shelf Registration Statement allows the Company to sell an indeterminate amount in debt securities to fund general corporate purposes, including repaying, redeeming or repurchasing outstanding debt and for working capital, capital expenditures, new store openings, stock repurchases and acquisitions. Proceeds from the debt issuance were used for general corporate purposes, including the repayment of the $500 million in 4.000% Senior Notes due in November 2020 that were callable at par in August 2020. On March 30, 2020, the Company issued $500 million in 3.625% Senior Notes due April 2025 and $750 million in 4.000% Senior Notes due April 2030 under the 2019 Shelf Registration Statement. Proceeds from the debt issuance were used to repay a portion of the outstanding commercial paper borrowings and for other general corporate purposes. On April 18, 2019, the Company issued $300 million in 3.125% Senior Notes due April 2024 and $450 million in 3.750% Senior Notes due April 2029 under the 2019 Shelf Registration Statement. Proceeds from the debt issuance were used to repay a portion of the outstanding commercial paper borrowings, the $250 million in 1.625% Senior Notes due in April 2019 and for other 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. 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. Interest for Senior Notes is paid on a semi-annual basis. 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 $25 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 28, 2021, the Company had $23.9 million in letters of credit outstanding under the letter of credit facility which expires in June 2022. In addition to the outstanding letters of credit issued under the committed facility discussed above, the Company had $136.8 million in letters of credit outstanding as of August 28, 2021. These letters of credit have various maturity dates and were issued on an uncommitted basis. As of August 28, 2021, the Company was in compliance with all covenants related to its borrowing arrangements. The fair value of the Company’s debt was estimated at $5.683 billion as of August 28, 2021, and $6.081 billion as of August 29, 2020, based on the quoted market prices for the same or similar issues or on the current rates available to the Company for debt of the same terms (Level 2). Such fair value is greater than the carrying value of debt by $413.1 million and $567.5 million at August 28, 2021 and August 29, 2020, respectively. This amount reflects face amount, adjusted for any unamortized debt issuance costs and discounts. All of the Company’s debt is unsecured. Scheduled maturities of debt are as follows: Scheduled (in thousands) Maturities 2022 $ 500,000 2023 800,000 2024 300,000 2025 900,000 2026 400,000 Thereafter 2,400,000 Subtotal 5,300,000 Discount and debt issuance costs 30,180 Total Debt $ 5,269,820 |
Interest Expense
Interest Expense | 12 Months Ended |
Aug. 28, 2021 | |
Interest Expense. | |
Interest Expense | Note J – Interest Expense Net interest expense consisted of the following: Year Ended August 28, August 29, August 31, (in thousands) 2021 2020 2019 Interest expense $ 202,326 $ 208,021 $ 193,671 Interest income (5,417) (5,689) (7,396) Capitalized interest (1,572) (1,167) (1,471) $ 195,337 $ 201,165 $ 184,804 |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Aug. 28, 2021 | |
Equity | |
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 Company’s Board of Directors. The share repurchase program was amended on December 15, 2020 to increase the repurchase authorization to $24.65 billion from $23.15 billion and on March 23, 2021 to increase the repurchase authorization to $26.15 billion. The Company has $417.6 million remaining under the Board’s authorization to repurchase its common stock. The Company’s share repurchase activity consisted of the following: Year Ended August 28, August 29, August 31, (in thousands) 2021 2020 2019 Amount $ 3,378,321 $ 930,903 $ 2,004,896 Shares 2,592 826 2,182 During fiscal year 2021, the Company retired 1.0 million shares of treasury stock which had previously been repurchased under the Company’s share repurchase program. The retirement increased Retained deficit by $1.139 billion and decreased Additional paid-in capital by $60.0 million. During the comparable prior year period, the Company retired 1.9 million shares of treasury stock, which increased Retained deficit by $1.879 billion and decreased Additional paid-in capital by $99.7 million. Beginning in the first quarter of fiscal 2021, the Company restarted share repurchases under its share repurchase program, which had been temporarily suspended during fiscal 2020 in response to the uncertainty surrounding the COVID-19 pandemic. The Company will continue to evaluate current and expected business conditions and adjust the level of share repurchases under its share repurchase program as it deems appropriate. On October 5, 2021, the Board voted to authorize the repurchase of an additional $1.5 billion of the Company’s common stock in connection with the Company’s ongoing share repurchase program. Since the inception of the repurchase program in 1998, the Board has authorized $27.65 billion in share repurchases. Subsequent to August 28, 2021 and through October 18, 2021, the Company has repurchased 220,022 shares of common stock at an aggregate cost of $362.8 million. Considering the cumulative repurchases and the increase in authorization subsequent to August 28, 2021, the Company has $1.555 billion remaining under the Board’s authorization to repurchase its common stock. |
401(k) Savings Plans
401(k) Savings Plans | 12 Months Ended |
Aug. 28, 2021 | |
401(k) Savings Plans | |
401(k) Savings Plans | Note L – 401(k) Savings Plan 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 $34.1 million in fiscal 2021, $29.8 million in fiscal 2020 and $25.8 million in fiscal 2019. |
Leases
Leases | 12 Months Ended |
Aug. 28, 2021 | |
Leases. | |
Leases | Note M – Leases Lease-related assets and liabilities recorded on the Consolidated Balance Sheets are as follows: (in thousands) Classification August 28, 2021 August 29, 2020 Assets: Operating Operating lease right-of-use assets $ 2,718,712 $ 2,581,677 Finance Property and equipment 383,736 327,006 Total lease assets $ 3,102,448 $ 2,908,683 Liabilities: Current: Operating Current portion of operating lease liabilities $ 236,568 $ 223,846 Finance Accrued expenses and other 89,932 67,498 Noncurrent: Operating Operating lease liabilities, less current portion 2,632,842 2,501,560 Finance Other long-term liabilities 186,122 155,855 Total lease liabilities $ 3,145,464 $ 2,948,759 Accumulated amortization related to finance lease assets was $107.0 million as of August 28, 2021 and $107.3 million as of August 29, 2020. Lease costs for finance and operating leases for the 52 weeks ended August 28, 2021 and August 29, 2020 are as follows: For the year ended (in thousands) Statement of Income Location August 28, 2021 August 29, 2020 Finance lease cost: Amortization of lease assets Depreciation and amortization $ 53,377 $ 55,920 Interest on lease liabilities Interest expense, net 2,957 4,355 Operating lease cost (1) Selling, general and administrative expenses 371,109 355,230 Total lease cost $ 427,443 $ 415,505 (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 August 28, 2021 having initial or remaining lease terms in excess of one year are as follows: Finance Operating (in thousands) Leases Leases Total 2022 $ 91,228 $ 323,245 $ 414,473 2023 56,534 346,367 402,901 2024 50,435 325,775 376,210 2025 39,628 300,916 340,544 2026 18,294 272,157 290,451 Thereafter 48,380 2,114,538 2,162,918 Total lease payments 304,499 3,682,998 3,987,497 Less: Interest (28,445) (813,588) (842,033) Present value of lease liabilities $ 276,054 $ 2,869,410 $ 3,145,464 The following table summarizes the Company’s lease term and discount rate assumptions: August 28, 2021 Weighted-average remaining lease term in years, inclusive of renewal options that are reasonably certain to be exercised: Finance leases – real estate 25 Finance leases – vehicles 4 Operating leases 15 Weighted-average discount rate: Finance leases – real estate 3.75 % Finance leases – vehicles 1.37 % Operating leases 3.44 % Cash paid for amounts included in the measurement of operating lease liabilities of $300.6 million and $352.9 million was reflected in cash flows from operating activities in the consolidated statement of cash flows for fiscal years 2021 and 2020, respectively. As of August 28, 2021, the Company has entered into additional leases which have not yet commenced and are therefore not part of the right-of-use asset and liability. These leases have undiscounted future payments of approximately $40.1 million and $69.2 million for real estate and vehicles, respectively, and will commence when the Company obtains possession of the underlying leased asset. Commencement dates are expected to be from fiscal 2022 to fiscal 2023. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 28, 2021 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note N – Commitments and Contingencies Construction commitments, primarily for new stores, totaled approximately $48.2 million at August 28, 2021. The Company had $162.4 million in outstanding standby letters of credit and $35.4 million in surety bonds as of August 28, 2021, 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. 28, 2021 | |
Litigation | |
Litigation | Note O – 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. 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. 28, 2021 | |
Segment Reporting | |
Segment Reporting | Note P – Segment Reporting The Company’s operating segments (Domestic Auto Parts, Mexico and Brazil) are aggregated as one reportable segment: Auto Parts Stores. 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 Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 6,767 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 products. The Other category reflects business activities of two 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 and E-commerce, which includes direct sales to customers through www.autozone.com for sales that are not fulfilled by local stores. 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 August 28, August 29, August 31, (in thousands) 2021 2020 2019 Net Sales Auto Parts Stores $ 14,381,712 $ 12,405,929 $ 11,645,235 Other 247,873 226,038 218,508 Total $ 14,629,585 $ 12,631,967 $ 11,863,743 Segment Profit Auto Parts Stores $ 7,556,889 $ 6,617,508 $ 6,209,229 Other 160,896 153,245 155,772 Gross profit 7,717,785 6,770,753 6,365,001 Operating, selling, general and administrative expenses (4,773,258) (4,353,074) (4,148,864) Interest expense, net (195,337) (201,165) (184,804) Income before income taxes $ 2,749,190 $ 2,216,514 $ 2,031,333 Segment Assets: Auto Parts Stores $ 14,398,581 $ 14,303,427 $ 9,781,926 Other 117,618 120,445 113,987 Total $ 14,516,199 $ 14,423,872 $ 9,895,913 Capital Expenditures: Auto Parts Stores $ 602,329 $ 432,067 $ 479,120 Other 19,438 25,669 16,930 Total $ 621,767 $ 457,736 $ 496,050 Auto Parts Stores Sales by Product Grouping: Failure $ 7,048,700 $ 6,088,859 $ 5,728,294 Maintenance items 4,888,763 4,284,913 4,140,987 Discretionary 2,444,249 2,032,157 1,775,954 Auto Parts Stores net sales $ 14,381,712 $ 12,405,929 $ 11,645,235 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 28, 2021 | |
Significant Accounting Policies | |
Business | Business: |
Fiscal Year | Fiscal Year: |
Basis of Presentation | Basis of Presentation: |
Variable Interest Entities | Variable Interest Entities: The Company considers its investment in these tax credit funds as an investment in a variable interest entity (“VIE”). The Company evaluates the investment in any VIE to determine whether it is the primary beneficiary. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. As of August 28, 2021, the Company held tax credit equity investments that were deemed to be VIE’s and determined that it was not the primary beneficiary of the entities, as it did not have the power to direct the activities that most significantly impacted the entity and accounted for this investment using the equity method. The Company’s maximum exposure to losses is limited to its net investment, which was $11.8 million as of August 28, 2021 and $6.5 million as of August 29, 2020, and was included within the Other long-term assets caption in the accompanying Consolidated Balance Sheets. |
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 $80.4 million and $62.4 million were held outside of the U.S. as of August 28, 2021, and August 29, 2020, respectively, and were generally utilized to support the liquidity needs in foreign operations. |
Accounts Receivable | Accounts Receivable: Financial Instruments - Credit Losses (Topic 326) Receivables are presented net of an allowance for credit losses. Allowances for expected credit losses are determined based on historical experience, the current economic environment as well as our expectations of future economic conditions and the current evaluation of the composition of accounts receivable. The Company will apply adjustments for specific factors and current economic conditions as needed at each reporting date. The Company’s allowance for credit losses are included in “Accounts receivable” on the accompanying Consolidated Balance Sheets as of August 28, 2021 and August 29, 2020. The balance of the allowance for credit losses was $11.4 million at August 28, 2021, and $10.0 million at August 29, 2020. |
Vendor Receivables | Vendor Receivables: |
Merchandise Inventories | Merchandise Inventories: |
Marketable Debt Securities | Marketable Debt Securities: |
Property and Equipment | Property and Equipment: 40 5 3 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: |
Goodwill | Goodwill: |
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: The assumptions made by management in estimating its self-insurance reserves include consideration of historical cost experience, judgments about the present and expected levels of cost per claim and retention levels. The Company utilizes various methods, including analyses of historical trends and use of a specialist, to estimate the costs to settle reported claims and claims incurred but not yet reported. The actuarial methods develop estimates of the future ultimate claim costs based on claims incurred as of the balance sheet date. When estimating these liabilities, the Company considers factors, such as the severity, duration and frequency of claims, legal costs associated with claims, healthcare trends and projected inflation of related factors. The Company’s liabilities for workers’ compensation, general and product liability, property and vehicle claims do not have scheduled maturities; however, the timing of future payments is predictable based on historical patterns and is relied upon in determining the current portion of these liabilities. Accordingly, the Company reflects the net present value of the obligations it determines to be long-term using the risk-free interest rate as of the balance sheet date. |
Leases | Leases: one Lease-related assets and liabilities are recognized for all leases with an initial term of 12 months or greater. The exercise of lease renewal options is at the Company’s sole discretion. The Company evaluates renewal options at commencement and on an ongoing basis and includes options that are reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. Certain lease agreements require variable payments based upon actual costs of common-area maintenance, real estate taxes and insurance. |
Financial Instruments | Financial Instruments: |
Income Taxes | Income Taxes: The Company recognizes liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company reevaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. The Company classifies interest related to income tax liabilities, and if applicable, penalties, as a component of Income tax expense. The income tax liabilities and accrued interest and penalties 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: The Company’s performance obligations are typically satisfied when the customer takes possession of the merchandise. Revenue from retail customers is recognized when the customer leaves our store with the purchased products, typically at the point of sale or for E-commerce orders when the product is shipped. Revenue from commercial customers is recognized upon delivery, typically same-day. Payment from retail customers is at the point of sale and payment terms for commercial customers are based on the Company’s pre-established credit requirements and generally range from 1 to 30 days. Discounts, sales incentives and rebates are treated as separate performance obligations, and revenue allocated to these performance obligations is recognized as the obligations to the customer are satisfied. Additionally, the Company estimates and records gift card breakage as redemptions occur. The Company offers diagnostic and repair information software used in the automotive repair industry through ALLDATA. This revenue is recognized as services are provided. Revenue from these services are recognized over the life of the contract. 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. There were no material contract assets, liabilities or deferred costs recorded on the Consolidated Balance Sheet as of August 28, 2021 and August 29, 2020. Revenue related to unfulfilled performance obligations as of August 28, 2021 and August 29, 2020 is not significant. (Refer to “Note P – Segment Reporting” for additional information related to revenue recognized during the period.) |
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 $85.9 million in fiscal 2021, $77.6 million in fiscal 2020 and $87.5 million in fiscal 2019. Vendor promotional funds, which reduced advertising expense, amounted to $53.2 million in fiscal 2021, $39.4 million in fiscal 2020 and $32.2 million in fiscal 2019. |
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: o Freight expenses associated with moving merchandise inventories from the Company’s vendors to the distribution centers; o Vendor allowances that are not reimbursements for specific, incremental and identifiable costs ● Costs associated with operating the Company’s supply chain, including payroll and benefits, warehouse occupancy, transportation and depreciation; and ● Inventory shrinkage Operating, Selling, General and Administrative Expenses ● Payroll and benefits for store, field leadership and store support employees; ● Occupancy of store and store support facilities; ● Depreciation and amortization related to store and store support assets; ● Transportation associated with field leadership, commercial sales force and deliveries from stores; ● Advertising; ● Self-insurance; 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 Expenses: |
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 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 In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments Credit Losses. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Share-Based Payments | |
Schedule of Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense | Year Ended August 28, August 29, August 31, 2021 2020 2019 Expected price volatility 28 % 22 % 21 % Risk-free interest rate 0.4 % 1.4 % 3.0 % Weighted average expected lives (in years) 5.6 5.5 5.6 Forfeiture rate 10 % 10 % 10 % Dividend yield 0 % 0 % 0 % |
Schedule of Stock Option Activity | The Company generally issues new shares when options are exercised. The following table summarizes information about stock option activity for the year ended August 28, 2021: Weighted Average Remaining Aggregate Weighted Contractual Intrinsic Number Average Term Value of Shares Exercise Price (in years) (in thousands) Outstanding – August 29, 2020 1,384,986 $ 677.15 Granted 202,820 1,152.54 Exercised (349,592) 541.80 Cancelled (30,160) 906.26 Outstanding – August 28, 2021 1,208,054 790.41 5.95 $ 915,807 Exercisable 766,453 669.30 4.68 673,858 Expected to vest 397,441 1,000.60 8.16 217,754 Available for future grants 1,188,220 |
Schedule of Nonvested Restricted Stock Units Activity | Transactions related to restricted stock units for the fiscal year ended August 28, 2021 are as follows: Weighted- Number Average Grant of Shares Date Fair Value Nonvested at August 29, 2020 14,160 $ 910.63 Granted 8,064 1,149.77 Vested (5,805) 977.48 Canceled or forfeited (668) 976.36 Nonvested at August 28, 2021 15,751 $ 1,005.41 |
Accrued Expenses and Other (Tab
Accrued Expenses and Other (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Accrued Expenses and Other | |
Schedule of Accrued Expenses | Accrued expenses and other consisted of the following: August 28, August 29, (in thousands) 2021 2020 Accrued compensation, related payroll taxes and benefits $ 470,561 $ 321,071 Property, sales and other taxes 135,831 121,196 Medical and casualty insurance claims (current portion) 121,237 112,746 Finance lease liabilities 89,932 67,498 Accrued interest 55,435 63,503 Accrued gift cards 50,369 43,876 Accrued sales and warranty returns 32,418 32,356 Other 84,005 65,422 $ 1,039,788 $ 827,668 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Income Taxes | |
Components of Income from Continuing Operations | The components of income from continuing operations before income taxes are as follows: Year Ended August 28, August 29, August 31, (in thousands) 2021 2020 2019 Domestic $ 2,436,548 $ 1,960,320 $ 1,745,625 International 312,642 256,194 285,708 $ 2,749,190 $ 2,216,514 $ 2,031,333 |
Provision for Income Tax Expense | The provision for income tax expense consisted of the following: Year Ended August 28, August 29, August 31, (in thousands) 2021 2020 2019 Current: Federal $ 438,686 $ 324,156 $ 274,504 State 79,271 47,880 45,457 International 95,351 60,429 59,100 613,308 432,465 379,061 Deferred: Federal (21,366) 43,706 25,757 State (1,707) 12,544 6,914 International (11,359) (5,173) 2,380 (34,432) 51,077 35,051 Income tax expense $ 578,876 $ 483,542 $ 414,112 |
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 August 28, August 29, August 31, (in thousands) 2021 2020 2019 Federal tax at statutory U.S. income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net 2.2 % 2.2 % 2.0 % Share-based compensation (1.7) % (0.7) % (1.8) % Impact of tax reform — — (0.4) % Global intangible lower-taxed income ("GILTI") 0.8 % 1.0 % 1.3 % Foreign Tax Credits (1.7) % (1.1) % (1.1) % Other 0.5 % (0.6) % (0.6) % Effective tax rate 21.1 % 21.8 % 20.4 % |
Significant Components of Company's Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and liabilities were as follows: August 28, August 29, (in thousands) 2021 2020 Deferred tax assets: Net operating loss and credit carryforwards $ 41,825 $ 41,437 Accrued benefits 126,086 88,226 Operating lease liabilities 646,938 617,002 Other 69,340 69,788 Total deferred tax assets 884,189 816,453 Valuation allowances (31,098) (28,373) Net deferred tax assets 853,091 788,080 Deferred tax liabilities: Property and equipment (185,985) (173,696) Inventory (316,736) (298,585) Prepaid expenses (28,676) (55,827) Operating lease assets (609,336) (581,381) Other (8,440) (4,934) Deferred tax liabilities (1,149,173) (1,114,423) Net deferred tax liabilities $ (296,082) $ (326,343) |
Reconciliation of Unrecognized Tax Benefits | At August 28, 2021 and August 29, 2020, the Company had a valuation allowance of $31.1 million and $28.4 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: August 28, August 29, (in thousands) 2021 2020 Beginning balance $ 31,942 $ 30,892 Additions based on tax positions related to the current year 10,806 8,512 Additions for tax positions of prior years 4,009 946 Reductions for tax positions of prior years (886) (4,124) Reductions due to settlements (2,204) — Reductions due to statute of limitations (3,870) (4,284) Ending balance $ 39,797 $ 31,942 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Fair Value Measurements | |
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: August 28, 2021 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 46,007 $ — $ — $ 46,007 Other long-term assets 54,105 13,806 — 67,911 $ 100,112 $ 13,806 $ — $ 113,918 August 29, 2020 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 75,651 $ 467 $ — $ 76,118 Other long-term assets 58,792 12,329 — 71,121 $ 134,443 $ 12,796 $ — $ 147,239 |
Marketable Debt Securities (Tab
Marketable Debt Securities (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Marketable Debt Securities | |
Available-for-Sale Marketable Securities | August 28, 2021 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 23,650 $ 329 $ (2) $ 23,977 Government bonds 65,416 338 (2) 65,752 Mortgage-backed securities 6,552 58 (8) 6,602 Asset-backed securities and other 17,551 43 (7) 17,587 $ 113,169 $ 768 $ (19) $ 113,918 August 29, 2020 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 46,652 $ 970 $ (4) $ 47,618 Government bonds 44,594 1,172 — 45,766 Mortgage-backed securities 4,842 75 — 4,917 Asset-backed securities and other 48,798 143 (3) 48,938 $ 144,886 $ 2,360 $ (7) $ 147,239 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Equity | |
Changes in Accumulated Other Comprehensive Loss | Net Unrealized Foreign Gain (Loss) (in thousands) Currency (1) on Securities Derivatives Total Balance at August 31, 2019 $ (265,598) $ 591 $ (4,315) $ (269,322) Other Comprehensive (Loss) Income before reclassifications (66,723) 1,117 (28,197) (93,803) Amounts reclassified from Accumulated Other Comprehensive Income (Loss) (2)(3) — 137 8,736 8,873 Balance at August 29, 2020 (332,321) 1,845 (23,776) (354,252) Other Comprehensive Income (Loss) before reclassifications 44,683 (1,379) — 43,304 Amounts reclassified from Accumulated Other Comprehensive (Loss) Income (2)(3) — 123 2,839 2,962 Balance at August 28, 2021 $ (287,638) $ 589 $ (20,937) $ (307,986) (1) Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. subsidiaries earnings. Other foreign currency is not shown net of additional U.S. tax as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested (2) Amounts in parentheses indicate debits to Accumulated Other Comprehensive Loss. (3) Amounts shown are net of taxes/tax benefits. |
Financing (Tables)
Financing (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Financing | |
Schedule of Debt | The Company’s debt consisted of the following: August 28, August 29, (in thousands) 2021 2020 2.500% Senior Notes due April 2021, effective interest rate of 2.62% $ — $ 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 3.125% Senior Notes due April 2024, effective interest rate 3.32% 300,000 300,000 3.250% Senior Notes due April 2025, effective interest rate 3.36% 400,000 400,000 3.625% Senior Notes due April 2025, effective interest rate 3.78% 500,000 500,000 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 3.750% Senior Notes due April 2029, effective interest rate of 3.86% 450,000 450,000 4.000% Senior Notes due April 2030, effective interest rate 4.09% 750,000 750,000 1.650% Senior Notes due January 2031, effective interest rate of 2.19% 600,000 600,000 Total debt before discounts and debt issuance costs 5,300,000 5,550,000 Less: Discounts and debt issuance costs 30,180 36,629 Long-term debt $ 5,269,820 $ 5,513,371 |
Scheduled Maturities of Debt | Scheduled (in thousands) Maturities 2022 $ 500,000 2023 800,000 2024 300,000 2025 900,000 2026 400,000 Thereafter 2,400,000 Subtotal 5,300,000 Discount and debt issuance costs 30,180 Total Debt $ 5,269,820 |
Interest Expense (Tables)
Interest Expense (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Interest Expense. | |
Net Interest Expense | Net interest expense consisted of the following: Year Ended August 28, August 29, August 31, (in thousands) 2021 2020 2019 Interest expense $ 202,326 $ 208,021 $ 193,671 Interest income (5,417) (5,689) (7,396) Capitalized interest (1,572) (1,167) (1,471) $ 195,337 $ 201,165 $ 184,804 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Equity | |
Summarize Company's Share Repurchase Activity | The Company’s share repurchase activity consisted of the following: Year Ended August 28, August 29, August 31, (in thousands) 2021 2020 2019 Amount $ 3,378,321 $ 930,903 $ 2,004,896 Shares 2,592 826 2,182 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Leases. | |
Lease related assets and liabilities recorded on the Balance Sheet | (in thousands) Classification August 28, 2021 August 29, 2020 Assets: Operating Operating lease right-of-use assets $ 2,718,712 $ 2,581,677 Finance Property and equipment 383,736 327,006 Total lease assets $ 3,102,448 $ 2,908,683 Liabilities: Current: Operating Current portion of operating lease liabilities $ 236,568 $ 223,846 Finance Accrued expenses and other 89,932 67,498 Noncurrent: Operating Operating lease liabilities, less current portion 2,632,842 2,501,560 Finance Other long-term liabilities 186,122 155,855 Total lease liabilities $ 3,145,464 $ 2,948,759 |
Lease Cost | For the year ended (in thousands) Statement of Income Location August 28, 2021 August 29, 2020 Finance lease cost: Amortization of lease assets Depreciation and amortization $ 53,377 $ 55,920 Interest on lease liabilities Interest expense, net 2,957 4,355 Operating lease cost (1) Selling, general and administrative expenses 371,109 355,230 Total lease cost $ 427,443 $ 415,505 (1) Includes short-term leases, variable lease costs and sublease income, which are immaterial. |
Lease Term and Discount Rate Assumptions | August 28, 2021 Weighted-average remaining lease term in years, inclusive of renewal options that are reasonably certain to be exercised: Finance leases – real estate 25 Finance leases – vehicles 4 Operating leases 15 Weighted-average discount rate: Finance leases – real estate 3.75 % Finance leases – vehicles 1.37 % Operating leases 3.44 % |
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 August 28, 2021 having initial or remaining lease terms in excess of one year are as follows: Finance Operating (in thousands) Leases Leases Total 2022 $ 91,228 $ 323,245 $ 414,473 2023 56,534 346,367 402,901 2024 50,435 325,775 376,210 2025 39,628 300,916 340,544 2026 18,294 272,157 290,451 Thereafter 48,380 2,114,538 2,162,918 Total lease payments 304,499 3,682,998 3,987,497 Less: Interest (28,445) (813,588) (842,033) Present value of lease liabilities $ 276,054 $ 2,869,410 $ 3,145,464 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Segment Reporting | |
Segment Results | Year Ended August 28, August 29, August 31, (in thousands) 2021 2020 2019 Net Sales Auto Parts Stores $ 14,381,712 $ 12,405,929 $ 11,645,235 Other 247,873 226,038 218,508 Total $ 14,629,585 $ 12,631,967 $ 11,863,743 Segment Profit Auto Parts Stores $ 7,556,889 $ 6,617,508 $ 6,209,229 Other 160,896 153,245 155,772 Gross profit 7,717,785 6,770,753 6,365,001 Operating, selling, general and administrative expenses (4,773,258) (4,353,074) (4,148,864) Interest expense, net (195,337) (201,165) (184,804) Income before income taxes $ 2,749,190 $ 2,216,514 $ 2,031,333 Segment Assets: Auto Parts Stores $ 14,398,581 $ 14,303,427 $ 9,781,926 Other 117,618 120,445 113,987 Total $ 14,516,199 $ 14,423,872 $ 9,895,913 Capital Expenditures: Auto Parts Stores $ 602,329 $ 432,067 $ 479,120 Other 19,438 25,669 16,930 Total $ 621,767 $ 457,736 $ 496,050 Auto Parts Stores Sales by Product Grouping: Failure $ 7,048,700 $ 6,088,859 $ 5,728,294 Maintenance items 4,888,763 4,284,913 4,140,987 Discretionary 2,444,249 2,032,157 1,775,954 Auto Parts Stores net sales $ 14,381,712 $ 12,405,929 $ 11,645,235 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Aug. 28, 2021USD ($)classstoreshares | Aug. 29, 2020USD ($)shares | Aug. 31, 2019USD ($)shares | Aug. 25, 2018USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Number of stores with commercial sales program | store | 5,179 | |||
Description of reporting periods | The Company’s fiscal year consists of 52 or 53 weeks ending on the last Saturday in August. Fiscal 2021 and 2020 represented 52 weeks and 2019 represented 53 weeks. | |||
Cash and cash equivalents | $ 1,171,335 | $ 1,750,815 | $ 176,300 | $ 217,824 |
Allowances for credit losses | 11,400 | 10,000 | ||
Unrecorded adjustment for LIFO value in excess of replacement value | 335,300 | 357,000 | ||
Goodwill | 302,645 | 302,645 | ||
Self insurance reserve | $ 284,000 | 288,600 | ||
Renewal options and lease term | The leases have varying terms and expire at various dates through 2046. Retail leases typically have initial terms between one and 20 years, with one to six optional renewal periods of one to five years each. | |||
Measure of income tax benefit for uncertain income tax positions | more than 50% | |||
Advertising expense, net of vendor promotional funds | $ 85,900 | 77,600 | 87,500 | |
Vendor promotional funds, which reduced advertising expense | $ 53,200 | 39,400 | $ 32,200 | |
Limited warranty period, minimum period (Days) | 30 days | |||
Products accounted for total revenues | one class of similar products accounted for approximately 13 percent of the Company’s total revenues, and one vendor supplied approximately 10 percent of the Company’s total purchases. No other class of similar products accounted for 10 percent or more of total revenues | |||
Products accounted for total purchases | one vendor supplied approximately 10 percent of the Company’s total purchases. No other class of similar products accounted for 10 percent or more of total revenues | |||
Auto Parts Stores | ||||
Significant Accounting Policies [Line Items] | ||||
Goodwill | $ 302,600 | 302,600 | ||
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 | $ 70,500 | $ 63,700 | ||
Product Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Number of class of similar products accounted for approximately 13% of the company's total revenues | class | 1 | |||
Stock Options | ||||
Significant Accounting Policies [Line Items] | ||||
Anti-dilutive shares excluded from the computation of earnings per share | shares | 171,652 | 169,460 | 90,314 | |
Minimum | Building | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 40 years | |||
Minimum | Building Improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 5 years | |||
Minimum | Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Minimum | Vehicles | ||||
Significant Accounting Policies [Line Items] | ||||
Finance lease term | 1 year | |||
Minimum | Land and Building | ||||
Significant Accounting Policies [Line Items] | ||||
Finance lease term | 20 years | |||
Minimum | Product Concentration Risk | Sales Revenue, Net | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Minimum | Supplier Concentration Risk | Cost of Goods, Total | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Maximum | Building | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 50 years | |||
Maximum | Building Improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 15 years | |||
Maximum | Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 10 years | |||
Maximum | Vehicles | ||||
Significant Accounting Policies [Line Items] | ||||
Finance lease term | 5 years | |||
Maximum | Product Concentration Risk | Sales Revenue, Net | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 13.00% | |||
Maximum | Supplier Concentration Risk | Cost of Goods, Total | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Variable Interest Entity Not Primary Beneficiary Member | Other long-term assets | ||||
Significant Accounting Policies [Line Items] | ||||
Maximum exposure to losses amount | $ 11,800 | $ 6,500 | ||
Stores in the United States Including Puerto Rico [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of stores | store | 6,051 | |||
Brazil [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of stores | store | 52 | |||
Mexico [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of stores | store | 664 | |||
Non-US [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 80,400 | $ 62,400 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum percentage of discount on salary and bonus | 25.00% | ||
Share-based compensation expense | $ 56,112 | $ 44,835 | $ 43,255 |
Share-based compensation expense for unvested awards not yet recognized in earnings | $ 52,700 | ||
Weighted average period recognition of share-based compensation expense for unvested awards | 1 year 8 months 12 days | ||
Exercise period of vested options after death | 1 year | ||
Weighted average grant date fair value of options granted | $ 304.31 | $ 252.54 | $ 208.37 |
Intrinsic value of options exercised | $ 280,100 | $ 101,900 | $ 227,400 |
Total fair value of options vested | 44,700 | 39,100 | 34,500 |
Expense related to the discount on the selling of shares to employees and executives | $ 2,500 | $ 3,100 | $ 2,800 |
Shares sold to employees under employee stock purchase plan | 8,479 | 10,525 | 11,011 |
Shares purchased from employees at fair value | 7,611 | 8,287 | 17,201 |
Common stock reserved for future issuance | 133,762 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise period of vested options after service period | 90 days | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise period of vested options after service period | 30 days | ||
Two Thousand Three Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Accrued director fees | $ 7,500 | $ 5,700 | |
Additional shares of stock or units | 0 | ||
Accrued director fees in shares | 4,822 | 4,822 | |
Executive Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares sold to employees under employee stock purchase plan | 997 | 1,204 | 1,483 |
Common stock reserved for future issuance | 234,364 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non vested restricted stock unit award | $ 10,500 | ||
Estimated weighted average period | 2 years 4 months 24 days | ||
Service period | 4 years | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of options from grant date | 10 years or 10 years and one day | ||
2011 Equity Incentive Award Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Debt instrument term | 10 years |
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. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Share-Based Payments | |||
Expected price volatility | 28.00% | 22.00% | 21.00% |
Risk-free interest rate | 0.40% | 1.40% | 3.00% |
Weighted average expected lives (in years) | 5 years 7 months 6 days | 5 years 6 months | 5 years 7 months 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. 28, 2021USD ($)$ / sharesshares | |
Share-Based Payments | |
Outstanding, Beginning balance, Number of Shares | 1,384,986 |
Granted, Number of Shares | 202,820 |
Exercised, Number of Shares | (349,592) |
Cancelled, Number of Shares | (30,160) |
Outstanding, Ending balance, Number of Shares | 1,208,054 |
Exercisable, Number of Shares | 766,453 |
Expected to vest, Number of Shares | 397,441 |
Available for future grants, Number of Shares | 1,188,220 |
Outstanding, Beginning balance, Weighted Average Exercise Price | $ / shares | $ 677.15 |
Granted, Weighted Average Exercise Price | $ / shares | 1,152.54 |
Exercised, Weighted Average Exercise Price | $ / shares | 541.80 |
Cancelled, Weighted Average Exercise Price | $ / shares | 906.26 |
Outstanding, Ending balance, Weighted Average Exercise Price | $ / shares | 790.41 |
Exercisable, Weighted Average Exercise Price | $ / shares | 669.30 |
Expected to vest, Weighted Average Exercise Price | $ / shares | $ 1,000.60 |
Outstanding , Weighted-Average Remaining Contractual Term | 5 years 11 months 12 days |
Exercisable, Weighted-Average Remaining Contractual Term | 4 years 8 months 4 days |
Expected to vest, Weighted-Average Remaining Contractual Term | 8 years 1 month 28 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 915,807 |
Exercisable, Aggregate Intrinsic Value | $ | 673,858 |
Expected to vest, Aggregate Intrinsic Value | $ | $ 217,754 |
Share-Based Payments - Schedule
Share-Based Payments - Schedule of Nonvested Restricted Stock Units Activity (Detail) | 12 Months Ended |
Aug. 28, 2021$ / sharesshares | |
Share-Based Payments | |
Nonvested, Beginning balance, Number of Shares | shares | 14,160 |
Granted, Number of Shares | shares | 8,064 |
Vested, Number of Shares | shares | (5,805) |
Canceled or forfeited, Number of Shares | shares | (668) |
Nonvested, Ending balance, Number of Shares | shares | 15,751 |
Nonvested, Beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 910.63 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 1,149.77 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 977.48 |
Canceled or forfeited, Weighted Average Grant Date Fair Value | $ / shares | 976.36 |
Nonvested, Ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 1,005.41 |
Accrued Expenses and Other - Ac
Accrued Expenses and Other - Accrued Expenses (Detail) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Other Income and Expenses [Abstract] | ||
Accrued compensation, related payroll taxes and benefits | $ 470,561 | $ 321,071 |
Property, sales, and other taxes | 135,831 | 121,196 |
Medical and casualty insurance claims (current portion) | 121,237 | 112,746 |
Finance lease liabilities | 89,932 | 67,498 |
Accrued interest | 55,435 | 63,503 |
Accrued gift cards | 50,369 | 43,876 |
Accrued sales and warranty returns | 32,418 | 32,356 |
Other | 84,005 | 65,422 |
Total | $ 1,039,788 | $ 827,668 |
Accrued Expenses and Other - Ad
Accrued Expenses and Other - Additional Information (Detail) $ in Millions | 12 Months Ended |
Aug. 28, 2021USD ($) | |
Workers Compensation | |
Maximum limits per claim for self-insured plan, per annum | $ 2 |
Auto Liability | |
Maximum limits per claim for self-insured plan, per annum | 5 |
Property | |
Maximum limits per claim for self-insured plan, per annum | 21.5 |
General and product liability | |
Maximum limits per claim for self-insured plan, per annum | $ 1 |
Income Taxes - Components of In
Income Taxes - Components of Income from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Income Taxes | |||
Domestic | $ 2,436,548 | $ 1,960,320 | $ 1,745,625 |
International | 312,642 | 256,194 | 285,708 |
Income before income taxes | $ 2,749,190 | $ 2,216,514 | $ 2,031,333 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Current: | |||
Federal | $ 438,686 | $ 324,156 | $ 274,504 |
State | 79,271 | 47,880 | 45,457 |
International | 95,351 | 60,429 | 59,100 |
Total | 613,308 | 432,465 | 379,061 |
Deferred: | |||
Federal | (21,366) | 43,706 | 25,757 |
State | (1,707) | 12,544 | 6,914 |
International | (11,359) | (5,173) | 2,380 |
Total | (34,432) | 51,077 | 35,051 |
Income tax expense | $ 578,876 | $ 483,542 | $ 414,112 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Detail) | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Income Taxes | |||
Federal tax at statutory U.S. income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net | 2.20% | 2.20% | 2.00% |
Share-based compensation | (1.70%) | (0.70%) | (1.80%) |
Impact of tax reform | (0.40%) | ||
Global intangible lower-taxed income ("GILTI") | 0.80% | 1.00% | 1.30% |
Foreign Tax Credits | (1.70%) | (1.10%) | (1.10%) |
Other | 0.50% | (0.60%) | (0.60%) |
Effective tax rate | 21.10% | 21.80% | 20.40% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Income Taxes | |||
Additional excess tax benefits from stock option exercises compared to prior year | $ 56,400 | $ 20,900 | $ 46,000 |
Outside basis differences in foreign subsidiaries investments | 443,300 | ||
Future taxable income | 259,100 | 247,100 | |
Deferred tax assets from net operating loss carryforwards | $ 35,900 | 32,200 | |
Expiration date of NOLs start year | 2022 | ||
Expiration date of NOLs end year | 2041 | ||
Deferred tax assets for income tax credit carryforwards | $ 6,000 | 9,200 | |
Expiration date of tax credit carryforwards start year | 2022 | ||
Expiration date of tax credit carryforwards end year | 2037 | ||
Valuation allowances on deferred tax assets | $ 31,098 | 28,373 | |
Unrecognized tax benefits, if recognized would reduce effective tax rate, amount | 25,800 | 18,900 | |
Deferred tax assets operating loss carryforwards and tax credits | 10,400 | 10,500 | |
Accrued for payment of interest and penalties associated with unrecognized tax benefits | 2,400 | $ 1,600 | |
Amount of unrecognized tax benefits that could be reduced over next twelve months | $ 2,200 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Deferred tax assets: | ||
Net operating loss and credit carryforwards | $ 41,825 | $ 41,437 |
Accrued benefits | 126,086 | 88,226 |
Operating lease liabilities | 646,938 | 617,002 |
Other | 69,340 | 69,788 |
Total deferred tax assets | 884,189 | 816,453 |
Valuation allowances | (31,098) | (28,373) |
Net deferred tax assets | 853,091 | 788,080 |
Deferred tax liabilities: | ||
Property and equipment | (185,985) | (173,696) |
Inventory | (316,736) | (298,585) |
Prepaid expenses | (28,676) | (55,827) |
Operating lease assets | (609,336) | (581,381) |
Other | (8,440) | (4,934) |
Deferred tax liabilities | (1,149,173) | (1,114,423) |
Net deferred tax liabilities | $ (296,082) | $ (326,343) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Income Taxes | ||
Beginning balance | $ 31,942 | $ 30,892 |
Additions based on tax positions related to the current year | 10,806 | 8,512 |
Additions for tax positions of prior years | 4,009 | 946 |
Reductions for tax positions of prior years | (886) | (4,124) |
Reductions due to settlements | (2,204) | |
Reductions due to statute of limitations | (3,870) | (4,284) |
Ending balance | $ 39,797 | $ 31,942 |
Fair Value Measurements - Compa
Fair Value Measurements - Company's marketable debt securities measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 113,918 | $ 147,239 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 46,007 | 76,118 |
Other long-term assets | 67,911 | 71,121 |
Total | 113,918 | 147,239 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 46,007 | 75,651 |
Other long-term assets | 54,105 | 58,792 |
Total | 100,112 | 134,443 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 467 | |
Other long-term assets | 13,806 | 12,329 |
Total | $ 13,806 | $ 12,796 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable debt securities | $ 46,007 | $ 76,118 |
Long-term marketable debt securities | $ 67,911 | $ 71,121 |
Marketable Debt Securities - Av
Marketable Debt Securities - Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | $ 113,169 | $ 144,886 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 768 | 2,360 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (19) | (7) |
Available-For-Sale Marketable Securities, Fair Value | 113,918 | 147,239 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 23,650 | 46,652 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 329 | 970 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (2) | (4) |
Available-For-Sale Marketable Securities, Fair Value | 23,977 | 47,618 |
Government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 65,416 | 44,594 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 338 | 1,172 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (2) | |
Available-For-Sale Marketable Securities, Fair Value | 65,752 | 45,766 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 6,552 | 4,842 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 58 | 75 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (8) | |
Available-For-Sale Marketable Securities, Fair Value | 6,602 | 4,917 |
Asset-backed securities and other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 17,551 | 48,798 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 43 | 143 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (7) | (3) |
Available-For-Sale Marketable Securities, Fair Value | $ 17,587 | $ 48,938 |
Marketable Debt Securities - Ad
Marketable Debt Securities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Marketable Debt Securities | ||
Available for sale securities debt maturity period range | less than one year to approximately four years | |
Marketable securities transferred | $ 62.5 | $ 30.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ (877,977) | $ (1,713,851) |
Balance | (1,797,536) | (877,977) |
Foreign Currency | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (332,321) | (265,598) |
Other Comprehensive (Loss) Income before reclassifications | 44,683 | (66,723) |
Balance | (287,638) | (332,321) |
Net Unrealized Gain (Loss) on Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 1,845 | 591 |
Other Comprehensive (Loss) Income before reclassifications | (1,379) | 1,117 |
Amounts reclassified from Accumulated Other Comprehensive Income (Loss) | 123 | 137 |
Balance | 589 | 1,845 |
Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (23,776) | (4,315) |
Other Comprehensive (Loss) Income before reclassifications | (28,197) | |
Amounts reclassified from Accumulated Other Comprehensive Income (Loss) | 2,839 | 8,736 |
Balance | (20,937) | (23,776) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (354,252) | (269,322) |
Other Comprehensive (Loss) Income before reclassifications | 43,304 | (93,803) |
Amounts reclassified from Accumulated Other Comprehensive Income (Loss) | 2,962 | 8,873 |
Balance | $ (307,986) | $ (354,252) |
Derivative Financial Instrume_2
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 29, 2022 | |
Derivative losses recorded in Accumulated other comprehensive loss | $ 27.5 | ||
Net derivative losses amortized into Interest expense | $ 3.7 | $ 2.6 | |
Scenario Forecast | |||
Net derivative loss expected to be reclassified over next 12 months | $ 3.6 |
Financing - Schedule of Debt (D
Financing - Schedule of Debt (Detail) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 | Aug. 14, 2020 | Mar. 30, 2020 | Apr. 18, 2019 |
Debt Instrument [Line Items] | |||||
Total debt before discounts and debt issuance costs | $ 5,300,000 | $ 5,550,000 | |||
Less: Discounts and debt issuance costs | 30,180 | 36,629 | |||
Long-term debt | 5,269,820 | 5,513,371 | |||
2.500% Senior Notes due April 2021, effective interest rate of 2.62% | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 250,000 | ||||
3.700% Senior Notes due April 2022, effective interest rate of 3.85% | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 500,000 | 500,000 | |||
2.875% Senior Notes due January 2023, effective interest rate of 3.21% | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 300,000 | 300,000 | |||
3.125% Senior Notes due July 2023, effective interest rate of 3.26% | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 500,000 | 500,000 | |||
3.125% Senior Notes due April 2024, effective interest rate 3.32% | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 300,000 | 300,000 | $ 300,000 | ||
3.250% Senior Notes due April 2025, effective interest rate 3.36% | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 400,000 | 400,000 | |||
3.625% Senior Notes due April 2025, effective interest rate 3.78% | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 500,000 | 500,000 | $ 500,000 | ||
3.125% Senior Notes due April 2026, effective interest rate of 3.28% | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 400,000 | 400,000 | |||
3.750% Senior Notes due June 2027, effective interest rate of 3.83% | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 600,000 | 600,000 | |||
3.750% Senior Notes due April 2029, effective interest rate of 3.86% | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 450,000 | 450,000 | $ 450,000 | ||
4.000% Senior Notes due April 2030, effective interest rate 4.09% | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 750,000 | 750,000 | $ 750,000 | ||
1.650% Senior Notes due January 2031, effective interest rate of 2.19% | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 600,000 | $ 600,000 | $ 600,000 |
Financing - Schedule of Debt -
Financing - Schedule of Debt - Parenthetical (Details) | 12 Months Ended | |||||
Aug. 28, 2021 | Aug. 29, 2020 | Mar. 15, 2021 | Aug. 14, 2020 | Mar. 30, 2020 | Apr. 18, 2019 | |
4.000% Senior Notes due November 2020, effective interest rate of 4.43% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 4.00% | |||||
2.500% Senior Notes due April 2021, effective interest rate of 2.62% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 2.50% | 2.50% | 2.50% | |||
Debt instrument maturity, month and year | 2021-04 | 2021-04 | ||||
Effective interest rate | 2.62% | 2.62% | ||||
3.700% Senior Notes due April 2022, effective interest rate of 3.85% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 3.70% | 3.70% | ||||
Debt instrument maturity, month and year | 2022-04 | 2022-04 | ||||
Effective interest rate | 3.85% | 3.85% | ||||
2.875% Senior Notes due January 2023, effective interest rate of 3.21% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 2.875% | 2.875% | ||||
Debt instrument maturity, month and year | 2023-01 | 2023-01 | ||||
Effective interest rate | 3.21% | 3.21% | ||||
3.125% Senior Notes due July 2023, effective interest rate of 3.26% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 3.125% | |||||
Debt instrument maturity, month and year | 2023-07 | 2023-07 | ||||
Effective interest rate | 3.26% | 3.26% | ||||
3.125% Senior Notes due April 2024, effective interest rate 3.32% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 3.125% | 3.125% | 3.125% | |||
Debt instrument maturity, month and year | 2024-04 | 2024-04 | ||||
Effective interest rate | 3.32% | 3.32% | ||||
3.250% Senior Notes due April 2025, effective interest rate 3.36% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 3.25% | 3.25% | ||||
Debt instrument maturity, month and year | 2025-04 | 2025-04 | ||||
Effective interest rate | 3.36% | 3.36% | ||||
3.625% Senior Notes due April 2025, effective interest rate 3.78% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 3.625% | 3.625% | 3.625% | |||
Debt instrument maturity, month and year | 2025-04 | 2025-04 | ||||
Effective interest rate | 3.78% | 3.78% | ||||
3.125% Senior Notes due April 2026, effective interest rate of 3.28% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 3.125% | 3.125% | ||||
Debt instrument maturity, month and year | 2026-04 | 2026-04 | ||||
Effective interest rate | 3.28% | 3.28% | ||||
3.750% Senior Notes due June 2027, effective interest rate of 3.83% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 3.75% | 3.75% | ||||
Debt instrument maturity, month and year | 2027-06 | 2027-06 | ||||
Effective interest rate | 3.83% | 3.83% | ||||
3.750% Senior Notes due April 2029, effective interest rate of 3.86% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 3.75% | 3.75% | 3.75% | |||
Debt instrument maturity, month and year | 2029-04 | 2029-04 | ||||
Effective interest rate | 3.86% | 3.86% | ||||
4.000% Senior Notes due April 2030, effective interest rate 4.09% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 4.00% | 4.00% | 4.00% | |||
Debt instrument maturity, month and year | 2030-04 | 2030-04 | ||||
Effective interest rate | 4.09% | 4.09% | ||||
1.650% Senior Notes due January 2031, effective interest rate of 2.19% | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate percentage | 1.65% | 1.65% | 1.65% | |||
Debt instrument maturity, month and year | 2031-01 | 2031-01 | ||||
Effective interest rate | 2.19% | 2.19% |
Financing - Additional Informat
Financing - Additional Information (Detail) $ in Thousands | Aug. 28, 2021USD ($) | Mar. 15, 2021USD ($) | Nov. 18, 2017USD ($) | Nov. 17, 2017USD ($) | Aug. 28, 2021USD ($) | Aug. 29, 2020USD ($) | Aug. 31, 2019USD ($) | Feb. 22, 2021USD ($) | Aug. 14, 2020USD ($) | Mar. 30, 2020USD ($) | Apr. 18, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||||
Amount available under credit facility | $ 2,000,000 | $ 2,000,000 | |||||||||
Credit Agreement description | less than one year | ||||||||||
Minimum debt covenant interest coverage ratio to be maintained quarterly | 2.5 | ||||||||||
Debt covenant interest coverage ratio | 6.9 | ||||||||||
Remaining borrowing capacity under revolving credit facility | $ 1,998,000 | $ 1,998,000 | |||||||||
Repayments of Long-term Debt | 250,000 | $ 500,000 | $ 250,000 | ||||||||
Fair value of the Company's debt | 5,683,000 | 5,683,000 | 6,081,000 | ||||||||
Excess (shortfall) of fair value of debt over (from) carrying value | 413,100 | 413,100 | 567,500 | ||||||||
Other Letters Of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowings, outstanding | 136,800 | $ 136,800 | |||||||||
Third Amended and Restated Credit Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amount available under credit facility | $ 1,600,000 | ||||||||||
Maximum amount available under credit facility | $ 2,000,000 | ||||||||||
Credit facility expiration date | Nov. 18, 2021 | ||||||||||
Master Extension Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amount available under credit facility | $ 2,000,000 | ||||||||||
Maximum amount available under credit facility | $ 2,400,000 | ||||||||||
Credit facility expiration date | Nov. 18, 2022 | ||||||||||
Extended expiration of credit facility | 1 year | ||||||||||
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. | ||||||||||
Letters of credit, outstanding | 1,700 | $ 1,700 | |||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowings, outstanding | 0 | 0 | $ 0 | ||||||||
Letter of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum amount available under credit facility | 25,000 | 25,000 | |||||||||
Letters of credit, outstanding | 23,900 | 23,900 | |||||||||
1.650% Senior Notes due January 2031, effective interest rate of 2.19% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 600,000 | $ 600,000 | $ 600,000 | $ 600,000 | |||||||
Stated interest rate percentage | 1.65% | 1.65% | 1.65% | 1.65% | |||||||
2.500% Senior Notes due April 2021, effective interest rate of 2.62% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 250,000 | ||||||||||
Stated interest rate percentage | 2.50% | 2.50% | 2.50% | 2.50% | |||||||
Repayments of Long-term Debt | $ 250,000 | ||||||||||
3.700% Senior Notes due April 2022, effective interest rate of 3.85% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 500,000 | $ 500,000 | $ 500,000 | ||||||||
Stated interest rate percentage | 3.70% | 3.70% | 3.70% | ||||||||
4.000% Senior Notes due November 2020, effective interest rate of 4.43% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate percentage | 4.00% | 4.00% | |||||||||
Repayment of debt | $ 500,000 | ||||||||||
3.625% Senior Notes due April 2025, effective interest rate 3.78% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 500,000 | $ 500,000 | $ 500,000 | $ 500,000 | |||||||
Stated interest rate percentage | 3.625% | 3.625% | 3.625% | 3.625% | |||||||
4.000% Senior Notes due April 2030, effective interest rate 4.09% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | |||||||
Stated interest rate percentage | 4.00% | 4.00% | 4.00% | 4.00% | |||||||
3.125% Senior Notes due April 2024, effective interest rate 3.32% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | |||||||
Stated interest rate percentage | 3.125% | 3.125% | 3.125% | 3.125% | |||||||
3.750% Senior Notes due April 2029, effective interest rate of 3.86% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 450,000 | $ 450,000 | $ 450,000 | $ 450,000 | |||||||
Stated interest rate percentage | 3.75% | 3.75% | 3.75% | 3.75% | |||||||
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% | |||||||||
Repayment of debt | $ 250,000 |
Financing - Scheduled Maturitie
Financing - Scheduled Maturities of Debt (Detail) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Financing | ||
2022 | $ 500,000 | |
2023 | 800,000 | |
2024 | 300,000 | |
2025 | 900,000 | |
2026 | 400,000 | |
Thereafter | 2,400,000 | |
Subtotal | 5,300,000 | |
Discount and debt issuance costs | 30,180 | $ 36,629 |
Long-term debt | $ 5,269,820 | $ 5,513,371 |
Interest Expense - Net Interest
Interest Expense - Net Interest Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Interest expense | $ 202,326 | $ 208,021 | $ 193,671 |
Interest income | (5,417) | (5,689) | (7,396) |
Capitalized interest | (1,572) | (1,167) | (1,471) |
Net Interest Expense | $ 195,337 | $ 201,165 | $ 184,804 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | Mar. 23, 2021 | Dec. 15, 2020 | Dec. 14, 2020 | |
Stock Repurchase Program 1998 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase authorized | $ 26,150,000 | $ 24,650,000 | $ 23,150,000 | |||
Remaining value authorized for share repurchases | $ 417,600 | |||||
Retained Deficit | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Retirement of treasury shares | 1,139,173 | $ 1,878,595 | $ 1,706,971 | |||
Additional Paid-In Capital | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Retirement of treasury shares | $ 60,005 | $ 99,686 | $ 125,442 | |||
Common Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Retirement of treasury shares, shares | 1,044 | 1,912 | 2,563 | |||
Retirement of treasury shares | $ 10 | $ 19 | $ 26 |
Stock Repurchase Program - Shar
Stock Repurchase Program - Share Repurchase Activity (Detail) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||||||
Oct. 18, 2021 | Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | Oct. 05, 2021 | Mar. 23, 2021 | Dec. 15, 2020 | Dec. 14, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Amount | $ 3,378,321 | $ 930,903 | $ 2,004,896 | |||||
Shares | 2,592,000 | 826,000 | 2,182,000 | |||||
Subsequent Events [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Amount | $ 362,800 | |||||||
Shares | 220,022 | |||||||
Remaining value authorized for share repurchases | $ 1,555,000 | |||||||
Stock Repurchase Program 1998 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Stock repurchase authorized | $ 26,150,000 | $ 24,650,000 | $ 23,150,000 | |||||
Remaining value authorized for share repurchases | $ 417,600 | |||||||
Stock Repurchase Program 1998 | Subsequent Events [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Stock repurchase authorized | $ 27,650,000 | |||||||
Common Stock | Subsequent Events [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Stock repurchase authorized | $ 1,500,000 |
401(k) Savings Plans - Addition
401(k) Savings Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
401(k) Savings Plans | |||
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 | $ 34.1 | $ 29.8 | $ 25.8 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | Aug. 28, 2021 | Aug. 28, 2021 | Aug. 29, 2020 |
Accumulated amortization related to finance lease assets | $ 107 | $ 107.3 | |
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases | 300.6 | $ 352.9 | |
Land and Building | |||
Additional leases not yet commenced, undiscounted future payments | $ 40.1 | 40.1 | |
Vehicles | |||
Additional leases not yet commenced, undiscounted future payments | $ 69.2 | $ 69.2 | |
Minimum | |||
Operating lease commencement date | 2022 | ||
Maximum | |||
Operating lease commencement date | 2023 |
Leases - Summary of Lease-relat
Leases - Summary of Lease-related assets and liabilities recorded on the Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Assets | ||
Operating | $ 2,718,712 | $ 2,581,677 |
Total lease assets | 3,102,448 | 2,908,683 |
Current | ||
Operating | 236,568 | 223,846 |
Finance | $ 89,932 | $ 67,498 |
Accrued expenses and other | Accrued expenses and other | Accrued expenses and other |
Noncurrent | ||
Operating | $ 2,632,842 | $ 2,501,560 |
Finance | $ 186,122 | $ 155,855 |
Other long-term liabilities | Other long-term liabilities | Other long-term liabilities |
Total lease liabilities | $ 3,145,464 | $ 2,948,759 |
Operating lease right-of-use assets | ||
Assets | ||
Operating | 2,718,712 | 2,581,677 |
Property and equipment | ||
Assets | ||
Finance | 383,736 | 327,006 |
Current portion of operating lease liabilities | ||
Current | ||
Operating | 236,568 | 223,846 |
Operating lease liabilities, less current portion | ||
Noncurrent | ||
Operating | $ 2,632,842 | $ 2,501,560 |
Leases - Lease Cost (Detail)
Leases - Lease Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Amortization of lease assets | $ 107,000 | $ 107,300 |
Total lease cost | 427,443 | 415,505 |
Depreciation and amortization | ||
Amortization of lease assets | 53,377 | 55,920 |
Interest expense, net | ||
Interest on lease liabilities | 2,957 | 4,355 |
Selling, general and administrative expenses | ||
Operating lease cost | $ 371,109 | $ 355,230 |
Leases - Summary of future matu
Leases - Summary of future maturities of the Company's lease liabilities (Details) $ in Thousands | Aug. 28, 2021USD ($) |
Finance Leases | |
2022 | $ 91,228 |
2023 | 56,534 |
2024 | 50,435 |
2025 | 39,628 |
2026 | 18,294 |
Thereafter | 48,380 |
Total Lease Payments | 304,499 |
Less: Interest | (28,445) |
Present value of lease liabilities | 276,054 |
Operating Leases | |
2022 | 323,245 |
2023 | 346,367 |
2024 | 325,775 |
2025 | 300,916 |
2026 | 272,157 |
Thereafter | 2,114,538 |
Total Lease Payments | 3,682,998 |
Less: Interest | (813,588) |
Present value of lease liabilities | 2,869,410 |
Operating And Finance Leases | |
2022 | 414,473 |
2023 | 402,901 |
2024 | 376,210 |
2025 | 340,544 |
2026 | 290,451 |
Thereafter | 2,162,918 |
Total Lease Payments | 3,987,497 |
Less: Interest | (842,033) |
Present value of lease liabilities | $ 3,145,464 |
Leases - Information on lease t
Leases - Information on lease term and discount rate (Detail) | 12 Months Ended |
Aug. 28, 2021 | |
Weighted-average remaining lease term (years) | |
Finance leases - real estate | 25 years |
Finance leases - vehicles | 4 years |
Operating leases | 15 years |
Weighted-average discount rate: | |
Finance leases - real estate | 3.75% |
Finance leases - vehicles | 1.37% |
Operating leases | 3.44% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Aug. 28, 2021USD ($) |
Loss Contingencies [Line Items] | |
Commitment for construction | $ 48.2 |
Surety bonds | $ 35.4 |
The period of time before expiration of standby letters of credit and surety bonds | less than one year |
Standby Letters of Credit | |
Loss Contingencies [Line Items] | |
Borrowings, outstanding | $ 162.4 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Aug. 28, 2021segmentstore | |
Segment Reporting | |
Number of reportable segments | 1 |
Number of automotive parts and accessories locations in the United States, Mexico, and Brazil | store | 6,767 |
Number of operating segments | 2 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 14,629,585 | $ 12,631,967 | $ 11,863,743 |
Gross profit | 7,717,785 | 6,770,753 | 6,365,001 |
Operating, selling, general and administrative expenses | (4,773,258) | (4,353,074) | (4,148,864) |
Interest expense, net | (195,337) | (201,165) | (184,804) |
Income before income taxes | 2,749,190 | 2,216,514 | 2,031,333 |
Segment Assets | 14,516,199 | 14,423,872 | 9,895,913 |
Capital Expenditures | 621,767 | 457,736 | 496,050 |
Auto Parts Stores | |||
Segment Reporting Information [Line Items] | |||
Net sales | 14,381,712 | 12,405,929 | 11,645,235 |
Gross profit | 7,556,889 | 6,617,508 | 6,209,229 |
Segment Assets | 14,398,581 | 14,303,427 | 9,781,926 |
Capital Expenditures | 602,329 | 432,067 | 479,120 |
Auto Parts Stores | Failure | |||
Segment Reporting Information [Line Items] | |||
Net sales | 7,048,700 | 6,088,859 | 5,728,294 |
Auto Parts Stores | Maintenance Items | |||
Segment Reporting Information [Line Items] | |||
Net sales | 4,888,763 | 4,284,913 | 4,140,987 |
Auto Parts Stores | Discretionary | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,444,249 | 2,032,157 | 1,775,954 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 247,873 | 226,038 | 218,508 |
Gross profit | 160,896 | 153,245 | 155,772 |
Segment Assets | 117,618 | 120,445 | 113,987 |
Capital Expenditures | $ 19,438 | $ 25,669 | $ 16,930 |