Segment Reporting

3 Months Ended

Nov. 17, 2012

Segment Reporting

Note L – Segment Reporting

The Company’s three 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 in its Annual Report on Form 10-K for the year ended August 25, 2012.

The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 5,029 stores in the United States, Puerto Rico, 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 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
(in thousands)	November 17, 2012			November 19, 2011
Net Sales
Auto Parts Stores	$	1,948,724		$	1,884,138
Other		42,316			40,203
Total	$	1,991,040		$	1,924,341
Segment Profit
Auto Parts Stores	$	999,335		$	952,357
Other		32,531			31,270
Gross profit		1,031,866			983,627
Operating, selling, general and administrative expenses		(668,590	)		(642,693	)
Interest expense, net		(41,104	)		(39,094	)
Income before income taxes	$	322,172		$	301,840