Cover Page
Cover Page - shares | 3 Months Ended | |
Nov. 18, 2023 | Dec. 11, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Nov. 18, 2023 | |
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 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 | 17,291,904 | |
Current Fiscal Year End Date | --08-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000866787 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Nov. 18, 2023 | Aug. 26, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 282,981 | $ 277,054 |
Accounts receivable | 511,907 | 520,385 |
Merchandise inventories | 5,774,467 | 5,764,143 |
Other current assets | 387,446 | 217,844 |
Total current assets | 6,956,801 | 6,779,426 |
Property and equipment: | ||
Property and equipment | 10,550,192 | 10,337,890 |
Less: Accumulated depreciation and amortization | (4,837,035) | (4,741,342) |
Property and equipment, net | 5,713,157 | 5,596,548 |
Operating lease right-of-use assets | 2,998,672 | 2,998,097 |
Goodwill | 302,645 | 302,645 |
Deferred income taxes | 84,087 | 86,002 |
Other long-term assets | 237,208 | 223,160 |
Total long-term assets | 3,622,612 | 3,609,904 |
Total assets | 16,292,570 | 15,985,878 |
Current liabilities: | ||
Accounts payable | 7,182,948 | 7,201,281 |
Current portion of operating lease liabilities | 288,854 | 257,256 |
Accrued expenses and other | 1,202,508 | 1,000,841 |
Income taxes payable | 111,312 | 52,478 |
Total current liabilities | 8,785,622 | 8,511,856 |
Long-term debt | 8,583,523 | 7,668,549 |
Operating lease liabilities, less current portion | 2,910,727 | 2,917,046 |
Deferred income taxes | 534,472 | 536,278 |
Other long-term liabilities | 691,897 | 702,043 |
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; 18,984 shares issued and 17,326 shares outstanding as of November 18, 2023; 18,936 shares issued and 17,857 shares outstanding as of August 26, 2023 | 190 | 189 |
Additional paid-in capital | 1,548,510 | 1,484,992 |
Retained deficit | (2,365,815) | (2,959,278) |
Accumulated other comprehensive loss | (210,359) | (190,836) |
Treasury stock, at cost | (4,186,197) | (2,684,961) |
Total stockholders' deficit | (5,213,671) | (4,349,894) |
Total liabilities and stockholders' deficit | $ 16,292,570 | $ 15,985,878 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Nov. 18, 2023 | Aug. 26, 2023 |
Preferred Stock | ||
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 18,984 | 18,936 |
Common stock, shares outstanding | 17,326 | 17,857 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 18, 2023 | Nov. 19, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||
Net sales | $ 4,190,277 | $ 3,985,067 |
Cost of sales, including warehouse and delivery expenses | 1,976,261 | 1,990,445 |
Gross profit | 2,214,016 | 1,994,622 |
Operating, selling, general and administrative expenses | 1,365,412 | 1,271,589 |
Operating profit | 848,604 | 723,033 |
Interest expense, net | 91,384 | 57,723 |
Income before income taxes | 757,220 | 665,310 |
Income tax expense | 163,757 | 125,992 |
Net income | $ 593,463 | $ 539,318 |
Weighted average shares for basic earnings per share | 17,709 | 19,007 |
Effect of dilutive stock equivalents | 525 | 638 |
Weighted average shares for diluted earnings per share | 18,234 | 19,645 |
Basic earnings per share | $ 33.51 | $ 28.37 |
Diluted earnings per share | $ 32.55 | $ 27.45 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 18, 2023 | Nov. 19, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||
Net income | $ 593,463 | $ 539,318 |
Other comprehensive income: | ||
Foreign currency translation adjustments | (20,221) | 3,335 |
Unrealized gains (losses) on marketable debt securities, net of taxes | 295 | (671) |
Net derivative activities, net of taxes | 403 | 607 |
Total other comprehensive (loss) income | (19,523) | 3,271 |
Comprehensive income | $ 573,940 | $ 542,589 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 18, 2023 | Nov. 19, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 593,463 | $ 539,318 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 120,224 | 109,253 |
Other non-cash (income) charges | (2,000) | 81,000 |
Amortization of debt origination fees | 2,810 | 1,905 |
Deferred income taxes | 882 | 13,816 |
Share-based compensation expense | 22,913 | 19,005 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 6,856 | 4,100 |
Merchandise inventories | (21,899) | (39,308) |
Accounts payable and accrued expenses | 33,762 | 6,574 |
Income taxes | 96,793 | 73,954 |
Other, net | (23,545) | (16,030) |
Net cash provided by operating activities | 830,259 | 793,587 |
Cash flows from investing activities: | ||
Capital expenditures | (235,428) | (114,397) |
Purchase of marketable debt securities | (4,115) | (11,989) |
Proceeds from sale of marketable debt securities | 1,944 | 4,893 |
Investment in tax credit equity investments | (41,150) | (2,474) |
Proceeds from disposal of capital assets and other, net | 8,235 | 10,080 |
Net cash used in investing activities | (270,514) | (113,887) |
Cash flows from financing activities: | ||
Net (payments of) proceeds from commercial paper | (76,900) | 204,900 |
Proceeds from issuance of debt | 1,000,000 | |
Net proceeds from sale of common stock | 41,448 | 40,828 |
Purchase of treasury stock | (1,486,876) | (899,998) |
Repayment of principal portion of finance lease liabilities | (20,202) | (20,598) |
Other, net | (9,696) | (783) |
Net cash used in financing activities | (552,226) | (675,651) |
Effect of exchange rate changes on cash | (1,592) | 1,361 |
Net increase in cash and cash equivalents | 5,927 | 5,410 |
Cash and cash equivalents at beginning of period | 277,054 | 264,380 |
Cash and cash equivalents at end of period | $ 282,981 | $ 269,790 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Total | |
Balance at Aug. 27, 2022 | $ 207 | $ 1,354,252 | $ (1,330,067) | $ (300,536) | $ (3,262,769) | $ (3,538,913) | |
Balance, shares at Aug. 27, 2022 | 20,732,000 | ||||||
Net income | 539,318 | 539,318 | |||||
Total other comprehensive income | 3,271 | 3,271 | |||||
Purchase of treasury stock | (899,998) | $ (899,998) | |||||
Purchase of treasury stock, shares | (392,000) | ||||||
Issuance of common stock under stock options and stock purchase plans | $ 1 | 40,828 | $ 40,829 | ||||
Issuance of common stock under stock options and stock purchase plans, shares | 62,000 | ||||||
Share-based compensation expense | 17,570 | 17,570 | |||||
Balance at Nov. 19, 2022 | $ 208 | 1,412,650 | (790,749) | (297,265) | (4,162,767) | (3,837,923) | |
Balance, shares at Nov. 19, 2022 | 20,794,000 | ||||||
Balance at Aug. 26, 2023 | $ 189 | 1,484,992 | (2,959,278) | (190,836) | (2,684,961) | (4,349,894) | |
Balance, shares at Aug. 26, 2023 | 18,936,000 | ||||||
Net income | 593,463 | 593,463 | |||||
Total other comprehensive income | (19,523) | (19,523) | |||||
Purchase of treasury stock | [1] | (1,501,236) | $ (1,501,236) | ||||
Purchase of treasury stock, shares | (579,700) | ||||||
Issuance of common stock under stock options and stock purchase plans | $ 1 | 41,447 | $ 41,448 | ||||
Issuance of common stock under stock options and stock purchase plans, shares | 48,000 | ||||||
Share-based compensation expense | 22,071 | 22,071 | |||||
Balance at Nov. 18, 2023 | $ 190 | $ 1,548,510 | $ (2,365,815) | $ (210,359) | $ (4,186,197) | $ (5,213,671) | |
Balance, shares at Nov. 18, 2023 | 18,984,000 | ||||||
[1] Inclusive of excise tax of $14.4 million for the quarter ended November 18, 2023. The excise tax is assessed at one percent of the fair value of net stock repurchases after December 31, 2022. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 311 Months Ended | |
Nov. 18, 2023 | Nov. 19, 2022 | Nov. 18, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Unaudited) | |||
Purchase of treasury stock, shares | 579,700 | 392,000 | 154,600,000 |
Excise tax | $ 14.4 |
General
General | 3 Months Ended |
Nov. 18, 2023 | |
General | |
General | Note A – General The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission’s (the “SEC”) rules and regulations. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. For further information, refer to the consolidated financial statements and related notes included in the AutoZone, Inc. (“AutoZone” or the “Company”) Annual Report on Form 10-K for the year ended August 26, 2023. Operating results for the twelve weeks ended November 18, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 31, 2024. Each of the first three quarters of AutoZone’s fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarter of fiscal 2024 has 17 weeks, and the fourth quarter of fiscal 2023 had 16 weeks. Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, Liabilities – Supplier Finance Programs (Subtopic 405-50) Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) R |
Merchandise Inventories
Merchandise Inventories | 3 Months Ended |
Nov. 18, 2023 | |
Merchandise Inventories | |
Merchandise Inventories | Note B – Merchandise Inventories Merchandise inventories include related purchasing, storage and handling costs. Inventory cost has been determined using the last-in, first-out (“LIFO”) method stated at the lower of cost or net realizable value for domestic inventories and the weighted average cost method stated at the lower of cost or net realizable value for Mexico and Brazil inventories. The Company’s policy is not to write up inventory in excess of replacement cost. Due to price inflation on the Company’s merchandise purchases, primarily driven by increased freight costs, the Company’s LIFO credit reserve balance was $57.0 million at November 18, 2023, and $59.0 million at August 26, 2023. Increases to the Company’s LIFO credit reserve balance are recorded as a non-cash charge to cost of sales and decreases are recorded as a non-cash benefit to cost of sales. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Nov. 18, 2023 | |
Variable Interest Entities | |
Variable Interest Entities | Note C – Variable Interest Entities The Company invests in certain tax credit funds that promote renewable energy and generate a return primarily through the realization of federal tax credits. 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 November 18, 2023, 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 generally limited to its net investment, which was $23.8 million as of November 18, 2023. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Nov. 18, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note D – 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: November 18, 2023 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 46,696 $ 3,741 $ — $ 50,437 Other long-term assets 63,519 10,099 — 73,618 $ 110,215 $ 13,840 $ — $ 124,055 August 26, 2023 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 35,349 $ 4,290 $ — $ 39,639 Other long-term assets 71,028 10,846 — 81,874 $ 106,377 $ 15,136 $ — $ 121,513 At November 18, 2023, the fair value measurement amounts for assets and liabilities recorded in the accompanying Condensed Consolidated Balance Sheets consisted of short-term marketable debt securities, which are included within Other current assets, and long-term marketable debt securities, which are included in Other long-term assets. The Company’s marketable debt securities are typically valued at the closing price in the principal active market as of the last business day of the quarter or through the use of other market inputs relating to the securities, including benchmark yields and reported trades. Financial Instruments not Recognized at Fair Value The Company has financial instruments, including cash and cash equivalents, accounts receivable, other current assets and accounts payable. The carrying amounts of these financial instruments approximate fair value because of their short maturities. A discussion of the carrying values and fair values of the Company’s debt is included in “Note H – Financing.” |
Marketable Debt Securities
Marketable Debt Securities | 3 Months Ended |
Nov. 18, 2023 | |
Marketable Debt Securities | |
Marketable Debt Securities | Note E – Marketable Debt Securities Marketable debt securities are carried at fair value, with unrealized gains and losses, net of income taxes, recorded in Accumulated other comprehensive loss until realized, and any credit risk related losses are recognized in net income in the period incurred. The Company’s basis for determining the cost of a security sold is the “Specific Identification Model.” The Company’s available-for-sale marketable debt securities consisted of the following: November 18, 2023 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 30,998 $ — $ (477) $ 30,521 Government bonds 63,885 475 (1,655) 62,705 Mortgage-backed securities 2,838 — (151) 2,687 Asset-backed securities and other 28,334 — (192) 28,142 $ 126,055 $ 475 $ (2,475) $ 124,055 August 26, 2023 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 31,683 $ 17 $ (504) $ 31,196 Government bonds 63,747 — (1,440) 62,307 Mortgage-backed securities 3,215 — (213) 3,002 Asset-backed securities and other 25,242 — (234) 25,008 $ 123,887 $ 17 $ (2,391) $ 121,513 The marketable debt securities held at November 18, 2023, had effective maturities ranging from less than one year to approximately twelve years. At November 18, 2023, the Company held 73 securities that are in an unrealized loss position of approximately $2.5 million. In evaluating whether a credit loss exists for the 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 until recovery of fair value. An allowance for credit losses was deemed unnecessary given consideration of the factors above. The Company did not realize any material gains or losses on its marketable debt securities during the twelve week period ended November 18, 2023 and the comparable prior year period. Included above in total available-for-sale marketable debt securities are $106.4 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. |
Supplier Financing Programs
Supplier Financing Programs | 3 Months Ended |
Nov. 18, 2023 | |
Supplier Financing Programs | |
Supplier Financing Programs | Note F – Supplier Financing Programs The Company has arrangements with third-party financial institutions to confirm invoice balances owed by the Company to certain suppliers and pay the financial institutions the confirmed amounts on the invoice due dates. These arrangements allow the Company’s inventory suppliers, at their sole discretion, to enter into agreements directly with these financial institutions to finance the Company’s obligations to the suppliers at terms negotiated between the suppliers and the financial institutions. Supplier participation is optional and our obligations to our suppliers, including the amount and dates due, are not impacted by our suppliers’ decision to enter into an agreement with a third-party financial institution. As of November 18, 2023 and August 26, 2023, the Company had supplier obligations outstanding that had been confirmed under these arrangements of $4.8 billion for each period, which are included in Accounts payable and $209.6 million and $224.8 million, respectively, which are included in Other long-term liabilities in the Condensed Consolidated Balance Sheets. |
Litigation
Litigation | 3 Months Ended |
Nov. 18, 2023 | |
Litigation | |
Litigation | Note G – Litigation The Company is involved in various legal proceedings incidental to the conduct of its business, including, but not limited to, claims and allegations related to wage and hour violations, unlawful termination, employment practices, product liability, privacy and cybersecurity, environmental matters, intellectual property rights or regulatory compliance. 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. |
Financing
Financing | 3 Months Ended |
Nov. 18, 2023 | |
Financing | |
Financing | Note H – Financing The Company’s debt consisted of the following: November 18, August 26, (in thousands) 2023 2023 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 3.28% 400,000 400,000 5.050% Senior Notes due July 2026, effective interest rate 5.09% 450,000 450,000 3.750% Senior Notes due June 2027, effective interest rate 3.83% 600,000 600,000 4.500% Senior Notes due February 2028, effective interest rate 4.43% 450,000 450,000 6.250% Senior Notes due November 2028, effective interest rate 6.46% 500,000 — 3.750% Senior Notes due April 2029, effective interest rate 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 2.19% 600,000 600,000 4.750% Senior Notes due August 2032, effective interest rate 4.76% 750,000 750,000 4.750% Senior Notes due February 2033, effective interest rate 4.70% 550,000 550,000 5.200% Senior Notes due August 2033, effective interest rate 5.22% 300,000 300,000 6.550% Senior Notes due November 2033, effective interest rate 6.71% 500,000 — Commercial paper, weighted average interest rate 5.43% at November 18, 2023 and August 26, 2023 1,132,700 1,209,600 Total debt before discounts and debt issuance costs 8,632,700 7,709,600 Less: Discounts and debt issuance costs 49,177 41,051 Long-term Debt $ 8,583,523 $ 7,668,549 On November 15, 2021, the Company amended and restated its existing revolving credit facility (as amended from time to time, the “Revolving Credit Agreement”) pursuant to which the Company’s borrowing capacity was increased from $2.0 billion to $2.25 billion, and the maximum borrowing under the Revolving Credit Agreement may, at the Company’s option, subject to lenders’ approval, be increased from $2.25 billion to $3.25 billion. On November 15, 2022, the Company amended the Revolving Credit Agreement, extending the termination date by one year. As amended, the Revolving Credit Agreement will terminate, and all amounts borrowed will be due and payable on November 15, 2027, but AutoZone may make one additional request to extend the termination date for an additional period of one year. Revolving borrowings under the Revolving Credit Agreement may be base rate loans, Term Secured Overnight Financing Rate (“SOFR”) loans, or a combination of both, at AutoZone’s election. The Revolving Credit Agreement includes (i) a $75 million sublimit for swingline loans, (ii) a $50 million individual issuer letter of credit sublimit and (iii) a $250 million aggregate sublimit for all letters of credit. 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. As of November 18, 2023, the Company had no outstanding borrowings and $1.8 million of outstanding letters of credit under the Revolving Credit Agreement. The Company also maintains a letter of credit facility that allows it to request the participating bank to issue letters of credit on its behalf up to an aggregate amount of $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 November 18, 2023, the Company had $25.0 million in letters of credit outstanding under the letter of credit facility, which expires in June 2025. In addition to the outstanding letters of credit issued under the committed facilities discussed above, the Company had $120.5 million in letters of credit outstanding as of November 18, 2023. These letters of credit have various maturity dates and were issued on an uncommitted basis. As of November 18, 2023, the $1.1 billion commercial paper borrowings and the $300 million 3.125% Senior Notes due April 2024 were classified as long-term in the accompanying Consolidated Balance Sheets as the Company currently has the ability and intent to refinance them on a long-term basis through available capacity under its Revolving Credit Agreement. As of November 18, 2023, the Company had $2.2 billion of availability under its Revolving Credit Agreement, without giving effect to commercial paper borrowings, which would allow it to replace these short-term obligations with a long-term financing facility. On October 25, 2023, the Company issued $500 million in 6.250% Senior Notes due November 2028 and $500 million in 6.550% Senior Notes due November 2033. Proceeds from the debt issuances were used for general corporate purposes. The Senior Notes contain a provision that repayment may be accelerated if the Company experiences a change of 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 the Senior Notes is paid on a semi-annual basis. The fair value of the Company’s debt was estimated at $8.2 billion as of November 18, 2023, and $7.3 billion as of August 26, 2023, based on the quoted market prices for the same or similar issues or on the current rates available to the Company for debt of the same terms (Level 2). Such fair value is less than the carrying value of debt by $372.0 million and $406.6 million at November 18, 2023 and August 26, 2023, respectively, which reflects their face amount, adjusted for any unamortized debt issuance costs and discounts. As of November 18, 2023, the Company was in compliance with all covenants and expects to remain in compliance with all covenants under its borrowing arrangements. |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Nov. 18, 2023 | |
Equity [Abstract] | |
Stock Repurchase Program | Note I – Stock Repurchase Program From January 1, 1998 to November 18, 2023, the Company has repurchased a total of 154.6 million shares of its common stock at an aggregate cost of $35.3 billion, including 579.7 thousand shares of its common stock at an aggregate cost of $1.5 billion (inclusive of excise tax of $14.4 million) during the twelve week period ended November 18, 2023. The excise tax is assessed at one percent of the fair market value of net stock repurchases after December 31, 2022. On June 14, 2023, the Board voted to authorize the repurchase of an additional $2.0 billion of the Company’s common stock in connection with its ongoing share repurchase program, which raised the total value of shares authorized to be repurchased to $35.7 billion. Considering the cumulative repurchases as of November 18, 2023, the Company had $333.1 million remaining under the Board’s authorization to repurchase its common stock. Subsequent to November 18, 2023 and through December 11, 2023, the Company has repurchased 40.1 thousand shares of its common stock at an aggregate cost of $106.0 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Nov. 18, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note J – Accumulated Other Comprehensive Loss Accumulated other comprehensive loss includes foreign currency translation adjustments, activity for interest rate swaps and treasury rate locks that qualified as cash flow hedges and unrealized gains (losses) on available-for-sale marketable debt securities. Changes in Accumulated other comprehensive loss for the twelve week periods ended November 18, 2023 and November 19, 2022 consisted of the following: Net Foreign Unrealized Currency Gain (Loss) (in thousands) and Other (1) on Securities Derivatives Total Balance at August 26, 2023 $ (176,557) $ (1,851) $ (12,428) $ (190,836) Other comprehensive income (loss) before reclassifications (2)(3) (20,221) 295 — (19,926) Amounts reclassified from Accumulated other comprehensive loss (3) — — 403 403 Balance at November 18, 2023 $ (196,778) $ (1,556) $ (12,025) $ (210,359) Net Foreign Unrealized Currency Gain (Loss) (in thousands) and Other (1) on Securities Derivatives Total Balance at August 27, 2022 $ (280,190) $ (2,171) $ (18,175) $ (300,536) Other comprehensive income (loss) before reclassifications (2)(3) 3,335 (671) — 2,664 Amounts reclassified from Accumulated other comprehensive loss (3) — — 607 607 Balance at November 19, 2022 $ (276,855) $ (2,842) $ (17,568) $ (297,265) (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 tax . |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Nov. 18, 2023 | |
Share-Based Payments | |
Share-Based Payments | Note K – Share-Based Payments AutoZone maintains several equity incentive plans, which provide equity-based compensation to non-employee directors and eligible employees for their service to AutoZone, its subsidiaries or affiliates. The Company recognizes compensation expense for share-based payments based on the fair value of the awards at the grant date. Share-based payments include stock option grants, restricted stock grants, restricted stock unit grants, stock appreciation rights, discounts on shares sold to employees under share purchase plans and other awards. Additionally, directors’ fees are paid in restricted stock units with value equivalent to the value of shares of common stock as of the grant date. The change in fair value of liability-based stock awards is also recognized in share-based compensation expense. Stock Options: The Company made stock option grants for 130,723 shares during the twelve week period ended November 18, 2023 and granted options to purchase 157,113 shares during the comparable prior year period. The Company grants options to purchase common stock to certain of its employees under its equity incentive plans at prices equal to or above the market value of the stock on the date of grant. Option-vesting periods range from four The weighted average fair value of the stock option awards granted during the twelve week period ended November 18, 2023 and November 19, 2022, using the Black-Scholes-Merton multiple-option pricing valuation model, was $913.31 and $760.82 per share, respectively, using the following weighted average key assumptions: Twelve Weeks Ended November 18, November 19, 2023 2022 Expected price volatility 29 % 29 % Risk-free interest rate 4.8 % 3.8 % Weighted average expected lives (in years) 5.4 5.4 Forfeiture rate 7 % 10 % Dividend yield 0 % 0 % During the twelve week period ended November 18, 2023, and the comparable prior year period, 44,644 and 57,092 stock options, respectively, were exercised at a weighted average exercise price of $931.85 and $725.86, respectively. As of November 18, 2023, total unrecognized share-based expense related to stock options, net of estimated forfeitures, was approximately $177.9 million, before income taxes, which we expect to recognize over an estimated weighted average period of 3.5 years. 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. Grants of employee restricted stock units 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 requisite service period, less estimated forfeitures, which are consistent with stock option forfeiture assumptions. Grants of non-employee director restricted stock units are made and expensed on January 1 of each year, as they vest immediately. As of November 18, 2023, total unrecognized stock-based compensation expense related to nonvested restricted stock unit awards, net of estimated forfeitures, was approximately $12.0 million, before income taxes, which we expect to recognize over an estimated weighted average period of 2.9 years. Transactions related to restricted stock units for the twelve weeks ended November 18, 2023 were as follows: Weighted- Number Average Grant of Shares Date Fair Value Nonvested at August 26, 2023 8,133 $ 1,572.87 Granted 2,173 2,549.04 Vested (3,741) 1,383.34 Forfeited (183) 1,933.41 Nonvested at November 18, 2023 6,382 $ 2,000.23 Total share-based compensation expense (a component of Operating, selling, general and administrative expenses) for the twelve week period ended November 18, 2023, was $22.9 million and $19.0 million for the comparable prior year period. For the twelve week periods ended November 18, 2023 and November 19, 2022, 169,798 and 87,696 stock options, respectively, were excluded from the diluted earnings per share computation because they would have been anti-dilutive. See AutoZone’s Annual Report on Form 10-K for the year ended August 26, 2023 and other filings with the SEC, for a discussion regarding the methodology used in developing AutoZone’s assumptions to determine the fair value of the option awards and a description of AutoZone’s Amended and Restated 2011 Equity Incentive Award Plan, the AutoZone, Inc. 2020 Omnibus Incentive Award Plan and the Director Compensation Program. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Nov. 18, 2023 | |
Segment Reporting | |
Segment Reporting | Note L – 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” in its Annual Report on Form 10-K for the year ended August 26, 2023. The Auto Parts Stores segment is a retailer and distributor of automotive replacement parts and accessories through the Company’s 7,165 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, repair, collision and shop management 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. Segment results for the periods presented were as follows: Twelve Weeks Ended November 18, November 19, (in thousands) 2023 2022 Net Sales Auto Parts Stores $ 4,115,694 $ 3,915,907 Other 74,583 69,160 Total $ 4,190,277 $ 3,985,067 Segment Profit Auto Parts Stores $ 2,170,025 $ 1,953,728 Other 43,991 40,894 Gross profit 2,214,016 1,994,622 Operating, selling, general and administrative expenses (1,365,412) (1,271,589) Interest expense, net (91,384) (57,723) Income before income taxes $ 757,220 $ 665,310 |
General (Policies)
General (Policies) | 3 Months Ended |
Nov. 18, 2023 | |
General | |
Basis of Accounting | The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission’s (the “SEC”) rules and regulations. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. For further information, refer to the consolidated financial statements and related notes included in the AutoZone, Inc. (“AutoZone” or the “Company”) Annual Report on Form 10-K for the year ended August 26, 2023. |
Fiscal Period | Operating results for the twelve weeks ended November 18, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 31, 2024. Each of the first three quarters of AutoZone’s fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarter of fiscal 2024 has 17 weeks, and the fourth quarter of fiscal 2023 had 16 weeks. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, Liabilities – Supplier Finance Programs (Subtopic 405-50) Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 18, 2023 | |
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: November 18, 2023 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 46,696 $ 3,741 $ — $ 50,437 Other long-term assets 63,519 10,099 — 73,618 $ 110,215 $ 13,840 $ — $ 124,055 August 26, 2023 (in thousands) Level 1 Level 2 Level 3 Fair Value Other current assets $ 35,349 $ 4,290 $ — $ 39,639 Other long-term assets 71,028 10,846 — 81,874 $ 106,377 $ 15,136 $ — $ 121,513 |
Marketable Debt Securities (Tab
Marketable Debt Securities (Tables) | 3 Months Ended |
Nov. 18, 2023 | |
Marketable Debt Securities | |
Available-for-Sale Marketable Securities | The Company’s available-for-sale marketable debt securities consisted of the following: November 18, 2023 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 30,998 $ — $ (477) $ 30,521 Government bonds 63,885 475 (1,655) 62,705 Mortgage-backed securities 2,838 — (151) 2,687 Asset-backed securities and other 28,334 — (192) 28,142 $ 126,055 $ 475 $ (2,475) $ 124,055 August 26, 2023 Amortized Gross Gross Cost Unrealized Unrealized Fair (in thousands) Basis Gains Losses Value Corporate debt securities $ 31,683 $ 17 $ (504) $ 31,196 Government bonds 63,747 — (1,440) 62,307 Mortgage-backed securities 3,215 — (213) 3,002 Asset-backed securities and other 25,242 — (234) 25,008 $ 123,887 $ 17 $ (2,391) $ 121,513 |
Financing (Tables)
Financing (Tables) | 3 Months Ended |
Nov. 18, 2023 | |
Financing | |
Schedule of Debt | The Company’s debt consisted of the following: November 18, August 26, (in thousands) 2023 2023 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 3.28% 400,000 400,000 5.050% Senior Notes due July 2026, effective interest rate 5.09% 450,000 450,000 3.750% Senior Notes due June 2027, effective interest rate 3.83% 600,000 600,000 4.500% Senior Notes due February 2028, effective interest rate 4.43% 450,000 450,000 6.250% Senior Notes due November 2028, effective interest rate 6.46% 500,000 — 3.750% Senior Notes due April 2029, effective interest rate 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 2.19% 600,000 600,000 4.750% Senior Notes due August 2032, effective interest rate 4.76% 750,000 750,000 4.750% Senior Notes due February 2033, effective interest rate 4.70% 550,000 550,000 5.200% Senior Notes due August 2033, effective interest rate 5.22% 300,000 300,000 6.550% Senior Notes due November 2033, effective interest rate 6.71% 500,000 — Commercial paper, weighted average interest rate 5.43% at November 18, 2023 and August 26, 2023 1,132,700 1,209,600 Total debt before discounts and debt issuance costs 8,632,700 7,709,600 Less: Discounts and debt issuance costs 49,177 41,051 Long-term Debt $ 8,583,523 $ 7,668,549 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Nov. 18, 2023 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Net Foreign Unrealized Currency Gain (Loss) (in thousands) and Other (1) on Securities Derivatives Total Balance at August 26, 2023 $ (176,557) $ (1,851) $ (12,428) $ (190,836) Other comprehensive income (loss) before reclassifications (2)(3) (20,221) 295 — (19,926) Amounts reclassified from Accumulated other comprehensive loss (3) — — 403 403 Balance at November 18, 2023 $ (196,778) $ (1,556) $ (12,025) $ (210,359) Net Foreign Unrealized Currency Gain (Loss) (in thousands) and Other (1) on Securities Derivatives Total Balance at August 27, 2022 $ (280,190) $ (2,171) $ (18,175) $ (300,536) Other comprehensive income (loss) before reclassifications (2)(3) 3,335 (671) — 2,664 Amounts reclassified from Accumulated other comprehensive loss (3) — — 607 607 Balance at November 19, 2022 $ (276,855) $ (2,842) $ (17,568) $ (297,265) (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 tax . |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Nov. 18, 2023 | |
Share-Based Payments | |
Schedule of Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense | The weighted average fair value of the stock option awards granted during the twelve week period ended November 18, 2023 and November 19, 2022, using the Black-Scholes-Merton multiple-option pricing valuation model, was $913.31 and $760.82 per share, respectively, using the following weighted average key assumptions: Twelve Weeks Ended November 18, November 19, 2023 2022 Expected price volatility 29 % 29 % Risk-free interest rate 4.8 % 3.8 % Weighted average expected lives (in years) 5.4 5.4 Forfeiture rate 7 % 10 % Dividend yield 0 % 0 % |
Schedule of Nonvested Restricted Stock Units Activity | Transactions related to restricted stock units for the twelve weeks ended November 18, 2023 were as follows: Weighted- Number Average Grant of Shares Date Fair Value Nonvested at August 26, 2023 8,133 $ 1,572.87 Granted 2,173 2,549.04 Vested (3,741) 1,383.34 Forfeited (183) 1,933.41 Nonvested at November 18, 2023 6,382 $ 2,000.23 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Nov. 18, 2023 | |
Segment Reporting | |
Segment Results | Twelve Weeks Ended November 18, November 19, (in thousands) 2023 2022 Net Sales Auto Parts Stores $ 4,115,694 $ 3,915,907 Other 74,583 69,160 Total $ 4,190,277 $ 3,985,067 Segment Profit Auto Parts Stores $ 2,170,025 $ 1,953,728 Other 43,991 40,894 Gross profit 2,214,016 1,994,622 Operating, selling, general and administrative expenses (1,365,412) (1,271,589) Interest expense, net (91,384) (57,723) Income before income taxes $ 757,220 $ 665,310 |
Merchandise Inventories (Detail
Merchandise Inventories (Detail) - USD ($) $ in Millions | Nov. 18, 2023 | Aug. 26, 2023 |
Merchandise Inventories | ||
LIFO credit reserve balance | $ 57 | $ 59 |
Variable Interest Entities (Det
Variable Interest Entities (Detail) $ in Millions | Nov. 18, 2023 USD ($) |
Variable Interest Entity Not Primary Beneficiary Member | |
Variable Interest Entities | |
Maximum exposure to losses amount | $ 23.8 |
Fair Value Measurements - Compa
Fair Value Measurements - Company's Marketable Debt Securities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Nov. 18, 2023 | Aug. 26, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 124,055 | $ 121,513 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 50,437 | 39,639 |
Other long-term assets | 73,618 | 81,874 |
Total | 124,055 | 121,513 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 46,696 | 35,349 |
Other long-term assets | 63,519 | 71,028 |
Total | 110,215 | 106,377 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current assets | 3,741 | 4,290 |
Other long-term assets | 10,099 | 10,846 |
Total | $ 13,840 | $ 15,136 |
Marketable Debt Securities - Av
Marketable Debt Securities - Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Nov. 18, 2023 | Aug. 26, 2023 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | $ 126,055 | $ 123,887 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 475 | 17 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (2,475) | (2,391) |
Available-For-Sale Marketable Securities, Fair Value | 124,055 | 121,513 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 30,998 | 31,683 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 17 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (477) | (504) |
Available-For-Sale Marketable Securities, Fair Value | 30,521 | 31,196 |
Government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 63,885 | 63,747 |
Available-For-Sale Marketable Securities, Gross Unrealized Gains | 475 | |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (1,655) | (1,440) |
Available-For-Sale Marketable Securities, Fair Value | 62,705 | 62,307 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 2,838 | 3,215 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (151) | (213) |
Available-For-Sale Marketable Securities, Fair Value | 2,687 | 3,002 |
Asset-backed securities and other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-For-Sale Marketable Securities, Amortized Cost Basis | 28,334 | 25,242 |
Available-For-Sale Marketable Securities, Gross Unrealized Losses | (192) | (234) |
Available-For-Sale Marketable Securities, Fair Value | $ 28,142 | $ 25,008 |
Marketable Debt Securities - Ad
Marketable Debt Securities - Additional Information (Detail) $ in Thousands | Nov. 18, 2023 USD ($) security | Aug. 26, 2023 USD ($) |
Marketable Debt Securities | ||
Available for sale securities debt maturity period range | less than one year to approximately twelve years | |
Number of securities available for sale loss position | security | 73 | |
Unrealized loss on securities | $ 2,475 | $ 2,391 |
Marketable securities transferred | $ 106,400 |
Supplier Financing Programs (De
Supplier Financing Programs (Details) - Supplier Financing - USD ($) $ in Millions | Nov. 18, 2023 | Aug. 26, 2023 |
Accounts payable | ||
Loss Contingencies [Line Items] | ||
Obligations outstanding under supplier financing arrangements | $ 4,800 | $ 4,800 |
Other long-term liabilities | ||
Loss Contingencies [Line Items] | ||
Obligations outstanding under supplier financing arrangements | $ 209.6 | $ 224.8 |
Financing - Schedule of Debt (D
Financing - Schedule of Debt (Detail) - USD ($) $ in Thousands | Nov. 18, 2023 | Oct. 25, 2023 | Aug. 26, 2023 |
Debt Instrument [Line Items] | |||
Total debt before discounts and debt issuance costs | $ 8,632,700 | $ 7,709,600 | |
Less: Discounts and debt issuance costs | 49,177 | 41,051 | |
Long-term debt | 8,583,523 | 7,668,549 | |
3.125% Senior Notes due April 2024, effective interest rate 3.32% | |||
Debt Instrument [Line Items] | |||
Senior notes | 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 | |
3.125% Senior Notes due April 2026, effective interest rate 3.28% | |||
Debt Instrument [Line Items] | |||
Senior notes | 400,000 | 400,000 | |
5.050% Senior Notes due July 2026, effective interest rate 5.09% | |||
Debt Instrument [Line Items] | |||
Senior notes | 450,000 | 450,000 | |
3.750% Senior Notes due June 2027, effective interest rate 3.83% | |||
Debt Instrument [Line Items] | |||
Senior notes | 600,000 | 600,000 | |
4.500% Senior Notes due February 2028, effective interest rate 4.43% | |||
Debt Instrument [Line Items] | |||
Senior notes | 450,000 | 450,000 | |
6.250% Senior Notes due November 2028, effective interest rate 6.46% | |||
Debt Instrument [Line Items] | |||
Senior notes | 500,000 | $ 500,000 | |
3.750% Senior Notes due April 2029, effective interest rate 3.86% | |||
Debt Instrument [Line Items] | |||
Senior notes | 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 | |
1.650% Senior Notes due January 2031, effective interest rate 2.19% | |||
Debt Instrument [Line Items] | |||
Senior notes | 600,000 | 600,000 | |
4.750% Senior Notes due August 2032, effective interest rate 4.76% | |||
Debt Instrument [Line Items] | |||
Senior notes | 750,000 | 750,000 | |
4.750% Senior Notes due February 2033, effective interest rate 4.70% | |||
Debt Instrument [Line Items] | |||
Senior notes | 550,000 | 550,000 | |
5.200% Senior Notes due August 2033, effective interest rate 5.22% | |||
Debt Instrument [Line Items] | |||
Senior notes | 300,000 | 300,000 | |
6.550% Senior Notes due November 2033, effective interest rate 6.71% | |||
Debt Instrument [Line Items] | |||
Senior notes | 500,000 | $ 500,000 | |
Commercial paper | |||
Debt Instrument [Line Items] | |||
Commercial paper | $ 1,132,700 | $ 1,209,600 |
Financing - Schedule of Debt -
Financing - Schedule of Debt - Interest Rates And Maturity (Detail) | 3 Months Ended | 12 Months Ended | |
Nov. 18, 2023 | Aug. 26, 2023 | Oct. 25, 2023 | |
3.125% Senior Notes due April 2024, effective interest rate 3.32% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 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% | |
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 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% | |
5.050% Senior Notes due July 2026, effective interest rate 5.09% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 5.05% | 5.05% | |
Debt instrument maturity, month and year | 2026-07 | 2026-07 | |
Effective interest rate | 5.09% | 5.09% | |
3.750% Senior Notes due June 2027, effective interest rate 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% | |
4.500% Senior Notes due February 2028, effective interest rate 4.43% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 4.50% | 4.50% | |
Debt instrument maturity, month and year | 2028-02 | 2028-02 | |
Effective interest rate | 4.43% | 4.43% | |
6.250% Senior Notes due November 2028, effective interest rate 6.46% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 6.25% | 6.25% | |
Debt instrument maturity, month and year | 2028-11 | ||
Effective interest rate | 6.46% | ||
3.750% Senior Notes due April 2029, effective interest rate 3.86% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 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% | 4% | |
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 2.19% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 1.65% | 1.65% | |
Debt instrument maturity, month and year | 2031-01 | 2031-01 | |
Effective interest rate | 2.19% | 2.19% | |
4.750% Senior Notes due August 2032, effective interest rate 4.76% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 4.75% | 4.75% | |
Debt instrument maturity, month and year | 2032-08 | 2032-08 | |
Effective interest rate | 4.76% | 4.76% | |
4.750% Senior Notes due February 2033, effective interest rate 4.70% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 4.75% | 4.75% | |
Debt instrument maturity, month and year | 2033-02 | 2033-02 | |
Effective interest rate | 4.70% | 4.70% | |
5.200% Senior Notes due August 2033, effective interest rate 5.22% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 5.20% | 5.20% | |
Debt instrument maturity, month and year | 2033-08 | 2033-08 | |
Effective interest rate | 5.22% | 5.22% | |
6.550% Senior Notes due November 2033, effective interest rate 6.71% | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 6.55% | 6.55% | |
Debt instrument maturity, month and year | 2033-11 | ||
Effective interest rate | 6.71% | ||
Commercial paper | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate of commercial paper | 5.43% | 5.43% |
Financing - Additional Informat
Financing - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 15, 2022 | Nov. 15, 2021 | Nov. 18, 2023 | Oct. 25, 2023 | Aug. 26, 2023 | Nov. 14, 2021 |
Debt Instrument [Line Items] | ||||||
Remaining borrowing capacity under revolving credit agreement | $ 2,200,000 | |||||
Fair value of the Company's debt | 8,200,000 | $ 7,300,000 | ||||
Excess (shortfall) of fair value of debt over (from) carrying value | (372,000) | (406,600) | ||||
Revolving Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Amount available under credit facility | $ 2,250,000 | $ 2,000,000 | ||||
Maximum amount available under credit facility | $ 3,250,000 | $ 2,250,000 | ||||
Additional amount of year(s) to extend termination date of agreement | 1 year | |||||
Borrowings, outstanding | 0 | |||||
Letters of credit, outstanding | 1,800 | |||||
Swingline Loans | ||||||
Debt Instrument [Line Items] | ||||||
Maximum amount available under credit facility | $ 75,000 | |||||
Individual Issuer, Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum amount available under credit facility | 50,000 | |||||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum amount available under credit facility | $ 250,000 | 25,000 | ||||
Borrowings, outstanding | 120,500 | |||||
Letters of credit, outstanding | 25,000 | |||||
Master Extension Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility expiration date | Nov. 15, 2027 | |||||
3.125% Senior Notes due April 2024, effective interest rate 3.32% | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | $ 300,000 | $ 300,000 | ||||
Stated interest rate percentage | 3.125% | 3.125% | ||||
6.250% Senior Notes due November 2028, effective interest rate 6.46% | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | $ 500,000 | $ 500,000 | ||||
Stated interest rate percentage | 6.25% | 6.25% | ||||
6.550% Senior Notes due November 2033, effective interest rate 6.71% | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | $ 500,000 | $ 500,000 | ||||
Stated interest rate percentage | 6.55% | 6.55% | ||||
Commercial paper | ||||||
Debt Instrument [Line Items] | ||||||
Commercial paper borrowings | $ 1,132,700 | $ 1,209,600 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 311 Months Ended | |||
Jun. 14, 2023 | Dec. 11, 2023 | Nov. 18, 2023 | Nov. 19, 2022 | Nov. 18, 2023 | ||
Equity, Class of Treasury Stock [Line Items] | ||||||
Purchase of treasury stock, shares | 579,700 | 392,000 | 154,600,000 | |||
Purchase of treasury stock | $ 1,501,236 | [1] | $ 899,998 | $ 35,300,000 | ||
Excise tax | 14,400 | |||||
Increase in authorization of stock repurchase, value | $ 2,000,000 | |||||
Stock repurchase authorized | $ 35,700,000 | |||||
Remaining value authorized for share repurchases | $ 333,100 | $ 333,100 | ||||
Subsequent Events | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Purchase of treasury stock, shares | 40,100 | |||||
Purchase of treasury stock | $ 106,000 | |||||
[1] Inclusive of excise tax of $14.4 million for the quarter ended November 18, 2023. The excise tax is assessed at one percent of the fair value of net stock repurchases after December 31, 2022. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 18, 2023 | Nov. 19, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ (4,349,894) | $ (3,538,913) |
Balance | (5,213,671) | (3,837,923) |
Foreign Currency and Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (176,557) | (280,190) |
Other comprehensive income (loss) before reclassifications | (20,221) | 3,335 |
Balance | (196,778) | (276,855) |
Net Unrealized Gain (Loss) on Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (1,851) | (2,171) |
Other comprehensive income (loss) before reclassifications | 295 | (671) |
Balance | (1,556) | (2,842) |
Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (12,428) | (18,175) |
Other comprehensive income (loss) before reclassifications | 0 | |
Amounts reclassified from Accumulated other comprehensive loss | 403 | 607 |
Balance | (12,025) | (17,568) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (190,836) | (300,536) |
Other comprehensive income (loss) before reclassifications | (19,926) | 2,664 |
Amounts reclassified from Accumulated other comprehensive loss | 403 | 607 |
Balance | $ (210,359) | $ (297,265) |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Nov. 18, 2023 | Nov. 19, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted | 130,723 | 157,113 |
Forfeiture rate | 7% | 10% |
Weighted average grant date fair value of options granted | $ 913.31 | $ 760.82 |
Stock options exercised - shares | 44,644 | 57,092 |
Stock options exercised - weighted average exercise price | $ 931.85 | $ 725.86 |
Unrecognized share-based compensation expense related to stock options, net of forfeitures | $ 177.9 | |
Estimated weighted average period | 3 years 6 months | |
Share-based compensation expense | $ 22.9 | $ 19 |
Share-Based Payment Arrangement, Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Forfeiture rate | 10% | |
Omnibus Incentive Award Plan 2020 | Share-Based Payment Arrangement, Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Forfeiture rate | 0% | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated weighted average period | 2 years 10 months 24 days | |
Service period | 4 years | |
Non vested restricted stock unit award | $ 12 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option-vesting periods | 4 years | |
Anti-dilutive shares excluded from the computation of earnings per share | 169,798 | 87,696 |
Stock Options | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option-vesting periods | 4 years | |
Stock Options | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option-vesting periods | 5 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) | 3 Months Ended | |
Nov. 18, 2023 | Nov. 19, 2022 | |
Share-Based Payments | ||
Expected price volatility | 29% | 29% |
Risk-free interest rate | 4.80% | 3.80% |
Weighted average expected lives (in years) | 5 years 4 months 24 days | 5 years 4 months 24 days |
Forfeiture rate | 7% | 10% |
Dividend yield | 0% | 0% |
Share-Based Payments - Schedule
Share-Based Payments - Schedule of Nonvested Restricted Stock Units Activity (Detail) | 3 Months Ended |
Nov. 18, 2023 $ / shares shares | |
Share-Based Payments | |
Nonvested, Beginning balance, Number of Shares | shares | 8,133 |
Granted, Number of Shares | shares | 2,173 |
Vested, Number of Shares | shares | (3,741) |
Forfeited, Number of Shares | shares | (183) |
Nonvested, Ending balance, Number of Shares | shares | 6,382 |
Nonvested, Beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 1,572.87 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 2,549.04 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 1,383.34 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 1,933.41 |
Nonvested, Ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 2,000.23 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Nov. 18, 2023 segment store | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |
Number of automotive parts and accessories locations in the United States, Mexico, and Brazil | store | 7,165 |
Other | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 2 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 18, 2023 | Nov. 19, 2022 | |
Segment Reporting Information [Line Items] | ||
Net Sales | $ 4,190,277 | $ 3,985,067 |
Gross profit | 2,214,016 | 1,994,622 |
Operating, selling, general and administrative expenses | (1,365,412) | (1,271,589) |
Interest expense, net | (91,384) | (57,723) |
Income before income taxes | 757,220 | 665,310 |
Auto Parts Stores | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 4,115,694 | 3,915,907 |
Gross profit | 2,170,025 | 1,953,728 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 74,583 | 69,160 |
Gross profit | $ 43,991 | $ 40,894 |