Segment Reporting

12 Months Ended

Aug. 31, 2013

Segment Reporting [Abstract]

Segment Reporting

Note R – Segment Reporting

Three of 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.

The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 5,201 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 of three 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; E-commerce, which includes direct sales to customers through www.autozone.com; and AutoAnything, which includes direct sales to customers through www.autoanything.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 31, 2013			August 25, 2012			August 27, 2011
Net Sales:
Auto Parts Stores	$	8,858,723		$	8,422,559		$	7,906,692
Other		288,807			181,304			166,281
Total	$	9,147,530		$	8,603,863		$	8,072,973
Segment Profit:
Auto Parts Stores	$	4,568,190		$	4,292,474		$	3,989,852
Other		172,745			139,562			129,611
Gross profit		4,740,935			4,432,036			4,119,463
Operating, selling, general and administrative expenses		(2,967,837	)		(2,803,145	)		(2,624,660	)
Interest expense, net		(185,415	)		(175,905	)		(170,557	)
Income before income taxes	$	1,587,683		$	1,452,986		$	1,324,246
Segment Assets:
Auto Parts Stores	$	6,719,885		$	6,214,688		$	5,827,285
Other		172,204			50,951			42,317
Total	$	6,892,089		$	6,265,639		$	5,869,602
Capital Expenditures:
Auto Parts Stores	$	402,028		$	364,361		$	316,074
Other		12,423			13,693			5,530
Total	$	414,451		$	378,054		$	321,604
Auto Parts Stores Sales by Product Grouping:
Failure	$	4,214,642		$	3,793,963		$	3,530,497
Maintenance items		3,224,229			3,196,807			3,051,672
Discretionary		1,419,852			1,431,789			1,324,523
Auto Parts Stores net sales	$	8,858,723		$	8,422,559		$	7,906,692