Segment Reporting

6 Months Ended

Feb. 11, 2012

Segment Reporting [Abstract]

Segment Reporting

Note L – Segment Reporting

The Company’s two operating segments (Domestic Auto Parts and Mexico) 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 in its Annual Report on Form 10-K for the year ended August 27, 2011.

The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 4,867 stores in the United States, including Puerto Rico, and Mexico. 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 that are not separately reportable, including 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.

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						Twenty-Four Weeks Ended
(in thousands)	February 11, 2012			February 12, 2011			February 11, 2012			February 12, 2011
Net Sales
Auto Parts Stores	$	1,762,903		$	1,623,949		$	3,647,041		$	3,378,936
Other		41,166			36,997			81,370			73,672
Total	$	1,804,069		$	1,660,946		$	3,728,411		$	3,452,608
Segment Profit
Auto Parts Stores	$	894,493		$	816,692		$	1,846,850		$	1,695,558
Other		31,722			28,919			62,992			57,801
Gross profit		926,215			845,611			1,909,842			1,753,359
Operating, selling, general and administrative expenses		(625,564	)		(573,863	)		(1,268,257	)		(1,175,491	)
Interest expense, net		(38,923	)		(39,576	)		(78,017	)		(76,829	)
Income before income taxes	$	261,728		$	232,172		$	563,568		$	501,039