Segment Reporting

12 Months Ended

Aug. 29, 2015

Segment Reporting [Abstract]

Segment Reporting

Note R – Segment Reporting

Four of the Company’s operating segments (Domestic Auto Parts, Mexico, Brazil, and IMC) are aggregated as one reportable segment: Auto Parts Locations. 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 Locations segment is a retailer and distributor of automotive parts and accessories through the Company’s 5,609 locations in the United States, Puerto Rico, Mexico and Brazil. Each location 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 29, 2015			August 30, 2014			August 31, 2013
Net Sales:
Auto Parts Locations	$	9,824,876		$	9,132,169		$	8,858,723
Other		362,464			343,144			288,807
Total	$	10,187,340		$	9,475,313		$	9,147,530
Segment Profit:
Auto Parts Locations	$	5,132,624		$	4,744,501		$	4,568,190
Other		194,407			190,406			172,745
Gross profit		5,327,031			4,934,907			4,740,935
Operating, selling, general and administrative expenses		(3,373,980	)		(3,104,684	)		(2,967,837	)
Interest expense, net		(150,439	)		(167,509	)		(185,415	)
Income before income taxes	$	1,802,612		$	1,662,714		$	1,587,683
Segment Assets:
Auto Parts Locations	$	7,883,720		$	7,279,665		$	6,696,963
Other		218,629			217,498			172,204
Total	$	8,102,349		$	7,497,163		$	6,869,167
Capital Expenditures:
Auto Parts Locations	$	464,246		$	423,951		$	402,028
Other		16,333			14,165			12,423
Total	$	480,579		$	438,116		$	414,451
Auto Parts Locations Sales by Product Grouping:
Failure	$	4,650,271		$	4,274,528		$	4,214,642
Maintenance items		3,618,779			3,362,969			3,224,229
Discretionary		1,555,826			1,494,672			1,419,852
Auto Parts Locations net sales	$	9,824,876		$	9,132,169		$	8,858,723