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Segment Reporting
 6 Months Ended
Feb. 15, 2020
Segment Reporting [Abstract]  
Segment Reporting
Note M – Segment Reporting
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 – Significant Accounting Policies” in its Annual Report on Form
10-K
for the year ended August 31, 2019.
The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 6,461 stores in the U.S., 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 two 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, and
E-commerce,
which includes direct sales to customers through www.autozone.com for sales that are not fulfilled by local stores.
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 15,    

2020
 
 
    February 9,    

2019
 
 
    February 15,    

2020
 
 
    February 9,    

2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
 
 
 
 
Auto Parts Stores
 
$
2,464,988
 
 
$
2,402,833
 
 
$
5,208,226
 
 
$
4,996,273
 
Other
 
 
48,675
 
 
 
47,735
 
 
 
98,474
 
 
 
96,029
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
2,513,663
 
 
$
2,450,568
 
 
$
5,306,700
 
 
$
5,092,302
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Profit
 
 
 
 
 
 
 
 
 
 
 
 
Auto Parts Stores
 
$
1,331,270
 
 
$
1,291,186
 
 
$
2,797,431
 
 
$
2,674,751
 
Other
 
 
34,793
 
 
 
33,921
 
 
 
69,700
 
 
 
67,830
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
 
 
1,366,063
 
 
 
1,325,107
 
 
 
2,867,131
 
 
 
2,742,581
 
Operating, selling, general and administrative expenses
 
 
(958,125
) 
 
 
(925,087
)
 
 
(1,959,170
) 
 
 
(1,854,742
)
Interest expense, net
 
 
(44,335
) 
 
 
(41,362
)
 
 
(88,078
) 
 
 
(80,369
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
363,603
 
 
$
358,658
 
 
$
819,883
 
 
$
807,470