P - Segment Reporting

12 Months Ended

Aug. 25, 2012

P - Segment Reporting

Note P – Segment Reporting

The Company’s two operating segments (Domestic Auto Parts and Mexico) have been 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.

The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 5,006 stores in the United States, 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.

The following table shows segment results for the following fiscal years:

	Year Ended
(in thousands)	August 25, 2012			August 27, 2011			August 28, 2010
Net Sales:
Auto Parts Stores	$	8,422,559		$	7,906,692		$	7,213,753
Other		181,304			166,281			148,865
Total	$	8,603,863		$	8,072,973		$	7,362,618
Segment Profit:
Auto Parts Stores	$	4,292,474		$	3,989,852		$	3,591,464
Other		139,562			129,611			120,280
Gross profit		4,432,036			4,119,463			3,711,744
Operating, selling, general and administrative expenses		(2,803,145	)		(2,624,660	)		(2,392,330	)
Interest expense, net		(175,905	)		(170,557	)		(158,909	)
Income before income taxes	$	1,452,986		$	1,324,246		$	1,160,505
Segment Assets:
Auto Parts Stores	$	6,214,688		$	5,827,285		$	5,531,955
Other		50,951			42,317			39,639
Total	$	6,265,639		$	5,869,602		$	5,571,594
Capital Expenditures:
Auto Parts Stores	$	364,361		$	316,074		$	307,725
Other		13,693			5,530			7,675
Total	$	378,054		$	321,604		$	315,400
Auto Parts Stores Sales by Product Grouping:
Failure	$	3,793,963		$	3,530,497		$	3,145,528
Maintenance items		3,196,807			3,051,672			2,792,610
Discretionary		1,431,789			1,324,523			1,275,615
Auto Parts Stores net sales	$	8,422,559		$	7,906,692		$	7,213,753