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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 12/20/19 Autozone Inc 10-Q 11/23/19 74:10M Donnelley … Solutions/FA |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.13M 2: EX-15.1 Letter re: Unaudited Interim Financial Info HTML 24K 3: EX-31.1 Certification -- §302 - SOA'02 HTML 28K 4: EX-31.2 Certification -- §302 - SOA'02 HTML 28K 5: EX-32.1 Certification -- §906 - SOA'02 HTML 23K 6: EX-32.2 Certification -- §906 - SOA'02 HTML 23K 32: R1 Cover Page HTML 76K 74: R2 Condensed Consolidated Balance Sheets HTML 118K 52: R3 Condensed Consolidated Balance Sheets HTML 38K (Parenthetical) 24: R4 Condensed Consolidated Statements of Income HTML 68K 31: R5 Condensed Consolidated Statements of Comprehensive HTML 46K Income 73: R6 Condensed Consolidated Statements of Comprehensive HTML 27K Income (Parenthetical) 51: R7 Condensed Consolidated Statements of Cash Flows HTML 96K 23: R8 Condensed Consolidated Statements of Stockholders' HTML 67K Deficit 33: R9 Condensed Consolidated Statements of Stockholders' HTML 26K Deficit (Parenthetical) 57: R10 General HTML 43K 66: R11 Share-Based Payments HTML 94K 38: R12 Fair Value Measurements HTML 129K 14: R13 Marketable Debt Securities HTML 159K 56: R14 Derivative Financial Instruments HTML 26K 65: R15 Merchandise Inventories HTML 26K 37: R16 Financing HTML 118K 13: R17 Stock Repurchase Program HTML 27K 59: R18 Accumulated Other Comprehensive Loss HTML 153K 64: R19 Goodwill and Intangibles HTML 68K 36: R20 Litigation HTML 25K 26: R21 Leases HTML 336K 50: R22 Segment Reporting HTML 97K 72: R23 General (Policies) HTML 43K 35: R24 Share-Based Payments (Tables) HTML 87K 25: R25 Fair Value Measurements (Tables) HTML 123K 49: R26 Marketable Debt Securities (Tables) HTML 153K 71: R27 Financing (Tables) HTML 114K 34: R28 Accumulated Other Comprehensive Loss (Tables) HTML 152K 27: R29 Goodwill and Intangibles (Tables) HTML 66K 16: R30 Leases (Tables) HTML 338K 39: R31 Segment Reporting (Tables) HTML 94K 62: R32 General - Additional Information (Detail) HTML 27K 53: R33 Share-Based Payments - Weighted Average for Key HTML 36K Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense (Detail) 17: R34 Share-Based Payments - Schedule of Nonvested HTML 45K Restricted Stock Units Activity (Detail) 40: R35 Share-Based Payments - Additional Information HTML 51K (Detail) 63: R36 Fair Value Measurements - Company's marketable HTML 38K debt securities measured at Fair Value on Recurring Basis (Detail) 54: R37 Fair Value Measurements - Additional Information HTML 29K (Detail) 15: R38 Marketable Debt Securities - Available-for-Sale HTML 45K Marketable Securities (Detail) 41: R39 Marketable Debt Securities - Additional HTML 31K Information (Detail) 21: R40 Derivative Financial Instruments - Additional HTML 31K Information (Detail) 28: R41 Merchandise Inventories - Additional Information HTML 24K (Detail) 69: R42 Financing - Schedule of Debt (Detail) HTML 56K 47: R43 Financing - Schedule of Debt (Parenthetical) HTML 60K (Detail) 22: R44 Financing - Additional Information (Detail) HTML 59K 29: R45 Stock Repurchase Program - Additional Information HTML 38K (Detail) 70: R46 Accumulated Other Comprehensive Loss - Changes in HTML 45K Accumulated Other Comprehensive Loss (Detail) 48: R47 Accumulated Other Comprehensive Loss - Changes in HTML 32K Accumulated Other Comprehensive Loss (Parenthetical) (Detail) 20: R48 Goodwill and Intangibles - Additional Information HTML 26K (Detail) 30: R49 Goodwill and Intangibles - Schedule of Carrying HTML 45K Amounts of Intangible Assets (Detail) 45: R50 Leases - Additional Information (Detail) HTML 32K 19: R51 Lease - Summary of Lease-related assets and HTML 53K liabilities recorded on the Condensed Consolidated Balance Sheet (Detail) 61: R52 Leases - Lease Cost (Detail) HTML 35K 68: R53 Leases - Summary Of The Future Maturities Of The HTML 76K Company's Lease Liabilities (Detail) 44: R54 Leases - Future Minimum Annual Rental Commitments HTML 63K Under Non-Cancelable Operating Leases and Capital Leases (Detail) 18: R55 Leases - Information On Lease Term And Discount HTML 37K Rate (Detail) 60: R56 Leases - Other Information Related To Lease HTML 30K Liabilities (Detail) 67: R57 Segment Reporting - Additional Information HTML 25K (Detail) 42: R58 Segment Reporting - Segment Results (Detail) HTML 42K 12: XML IDEA XML File -- Filing Summary XML 129K 43: XML XBRL Instance -- d824424d10q_htm XML 2.70M 55: EXCEL IDEA Workbook of Financial Reports XLSX 59K 8: EX-101.CAL XBRL Calculations -- azo-20191123_cal XML 173K 9: EX-101.DEF XBRL Definitions -- azo-20191123_def XML 451K 10: EX-101.LAB XBRL Labels -- azo-20191123_lab XML 931K 11: EX-101.PRE XBRL Presentations -- azo-20191123_pre XML 713K 7: EX-101.SCH XBRL Schema -- azo-20191123 XSD 134K 58: JSON XBRL Instance as JSON Data -- MetaLinks 291± 438K 46: ZIP XBRL Zipped Folder -- 0001193125-19-320984-xbrl Zip 186K
Form 10-Q |
i ☒ |
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended i November 23, 2019, or |
|||
i ☐ |
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _______ to ________. |
i Nevada |
i 62-1482048 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
i 123 South Front Street, i Memphis, i Tennessee
|
i 38103 | |
(Address of principal executive offices) |
(Zip Code) |
Title of Each Class |
Trading Symbol(s) |
Name of Each Exchange on which Registered | ||
i Common Stock ($0.01 par value) |
i AZO |
i New York Stock Exchange |
Large accelerated filer ☒ |
Accelerated filer ☐ | |
Non-accelerated filer ☐ Emerging growth company i ☐ |
Smaller reporting company i ☐ |
PART I. |
3 |
|||||
Item 1. |
3 |
|||||
3 |
||||||
4 |
||||||
4 |
||||||
5 |
||||||
6 |
||||||
7 |
||||||
17 |
||||||
Item 2. |
18 |
|||||
Item 3. |
24 |
|||||
Item 4. |
24 |
|||||
PART II. |
25 |
|||||
Item 1. |
25 |
|||||
Item 1A. |
25 |
|||||
Item 2. |
25 |
|||||
Item 3. |
26 |
|||||
Item 4. |
26 |
|||||
Item 5. |
26 |
|||||
Item 6. |
27 |
|||||
28 |
(in thousands) |
November 23 , 2019 |
|
|
August 31 , 2019 |
|
| ||||||
|
|
|
||||||||||
Assets |
|
|||||||||||
Current assets: |
|
|
||||||||||
Cash and cash equivalents |
|
$ |
i 158,089 |
|
|
|
$ |
i 176,300 |
|
| ||
Accounts receivable |
|
i 333,246 |
|
|
|
i 308,995 |
|
| ||||
Merchandise inventories |
|
i 4,463,124 |
|
|
|
i 4,319,113 |
|
| ||||
Other current assets |
|
i 202,516 |
|
|
|
i 224,277 |
|
| ||||
Total current assets |
|
i 5,156,975 |
|
|
|
i 5,028,685 |
|
| ||||
|
|
|
|
|
|
|
|
| ||||
Property and equipment: |
|
|
|
| ||||||||
Property and equipment |
|
i 7,844,304 |
|
|
|
i 7,713,196 |
|
| ||||
Less: Accumulated depreciation and amortization |
|
( i 3,393,648 |
) |
|
|
( i 3,314,445 |
) |
| ||||
|
i 4,450,656 |
|
|
|
i 4,398,751 |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease right-of-use assets |
|
i 2,585,105 |
|
|
|
i – |
|
| ||||
Goodwill |
|
i 302,645 |
|
|
|
i 302,645 |
|
| ||||
Deferred income taxes |
|
i 27,365 |
|
|
|
i 26,861 |
|
| ||||
Other long-term assets |
|
i 177,710 |
|
|
|
i 138,971 |
|
| ||||
|
i 3,092,825 |
|
|
|
i 468,477 |
|
| |||||
|
$ |
i 12,700,456 |
|
|
|
$ |
i 9,895,913 |
|
| |||
|
|
|
|
|
|
|
|
| ||||
Liabilities and Stockholders’ Deficit |
|
|
|
| ||||||||
Current liabilities: |
|
|
|
| ||||||||
Accounts payable |
|
$ |
i 4,922,148 |
|
|
|
$ |
i 4,864,912 |
|
| ||
Current portion of operating lease liabilities |
|
i 232,549 |
|
|
|
i – |
|
| ||||
Accrued expenses and other |
|
i 618,654 |
|
|
|
i 621,932 |
|
| ||||
Income taxes payable |
|
i 94,885 |
|
|
|
i 25,297 |
|
| ||||
Total current liabilities |
|
i 5,868,236 |
|
|
|
i 5,512,141 |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
i 5,287,324 |
|
|
|
i 5,206,344 |
|
| ||||
Operating lease liabilities, less current portion |
|
i 2,506,829 |
|
|
|
i – |
|
| ||||
Deferred income taxes |
|
i 315,602 |
|
|
|
i 311,980 |
|
| ||||
Other long-term liabilities |
|
i 498,555 |
|
|
|
i 579,299 |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
| ||||
Stockholders’ deficit: |
|
|
|
| ||||||||
Preferred stock, authorized i i 1,000 /
shares; i i no /
shares issued |
|
i – |
|
|
|
i – |
|
| ||||
Common stock, par value $.01 per share, authorized i i 200,000 /
shares; i 25,465 shares issued and i 23,655 shares outstanding as of November 23,
2019; i 25,445 shares issued and i 24,038 shares outstanding as of August 31,
2019 |
|
i 254 |
|
|
|
i 254 |
|
| ||||
Additional paid-in capital |
|
i 1,282,629 |
|
|
|
i 1,264,448 |
|
| ||||
Retained deficit |
|
( i 955,009 |
) |
|
|
( i 1,305,347 |
) |
| ||||
Accumulated other comprehensive loss |
|
( i 250,081 |
) |
|
|
( i 269,322 |
) |
| ||||
Treasury stock, at cost |
|
( i 1,853,883 |
) |
|
|
( i 1,403,884 |
) |
| ||||
Total stockholders’ deficit |
|
( i 1,776,090 |
) |
|
|
( i 1,713,851 |
) |
| ||||
|
$ |
i 12,700,456 |
|
|
|
$ |
i 9,895,913 |
|
|
Twelve Weeks Ended |
||||||||||||
(in thousands, except per share data) |
||||||||||||
$ |
i 2,793,038 |
$ |
i 2,641,733 |
|||||||||
i 1,291,970 |
i 1,224,259 |
|||||||||||
i 1,501,068 |
i 1,417,474 |
|||||||||||
i 1,001,045 |
i 929,656 |
|||||||||||
i 500,023 |
i 487,818 |
|||||||||||
i 43,743 |
i 39,006 |
|||||||||||
i 456,280 |
i 448,812 |
|||||||||||
i 105,942 |
i 97,406 |
|||||||||||
$ |
i 350,338 |
$ |
i 351,406 |
|||||||||
i 23,875 |
i 25,629 |
|||||||||||
i 618 |
i 468 |
|||||||||||
i 24,493 |
i 26,097 |
|||||||||||
$ |
i 14.67 |
$ |
i 13.71 |
|||||||||
$ |
i 14.30 |
$ |
i 13.47 |
Twelve Weeks Ended |
||||||||||||
$ |
i 350,338 |
$ |
i 351,406 |
|||||||||
income ( loss) : |
||||||||||||
i 19,040 |
( i 40,573 |
) |
||||||||||
(1) |
( i 188 |
) |
( i 77 |
) |
||||||||
(2) |
i 389 |
i 389 |
||||||||||
income ( loss) |
i 19,241 |
( i 40,261 |
) |
|||||||||
$ |
i 369,579 |
$ |
i 311,145 |
|||||||||
(1) |
Unrealized (losses) on marketable debt securities are presented net of tax benefit of $ i 50 in fiscal 2020 and $ i 20
in fiscal 2019. |
(2) |
Net derivative activities are presented net of taxes of $ i i 120 /
in both fiscal 2020 and fiscal 2019. |
Twelve Weeks Ended |
| |||||||||||
(in thousands) |
2019 |
|
2018 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
| ||
Cash flows from operating activities: |
|
|
|
| ||||||||
Net income |
|
$ |
i 350,338 |
|
|
$ |
i 351,406 |
| ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
| ||||||||
Depreciation and amortization of property and equipment and intangibles |
|
i 89,750 |
|
|
i 82,452 |
| ||||||
Amortization of debt origination fees |
|
i 2,195 |
|
|
i 1,864 |
| ||||||
Deferred income taxes |
|
i 1,940 |
|
|
i 7,420 |
| ||||||
Share-based compensation expense |
|
i 9,996 |
|
|
i 10,527 |
| ||||||
Changes in operating assets and liabilities: |
|
|
|
| ||||||||
Accounts receivable |
|
( i 23,246 |
) |
|
|
( i 16,338 |
) |
| ||||
Merchandise inventories |
|
( i 133,206 |
) |
|
|
( i 167,454 |
) |
| ||||
Accounts payable and accrued expenses |
|
i 48,270 |
|
|
i 67,762 |
| ||||||
Income taxes payable |
|
i 69,390 |
|
|
i 63,774 |
| ||||||
Other, net |
|
i 31,675 |
|
|
i 47,769 |
| ||||||
Net cash provided by operating activities |
|
i 447,102 |
|
|
i 449,182 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
| ||||||||
Capital expenditures |
|
( i 101,407 |
) |
|
|
( i 98,168 |
) |
| ||||
Purchase of marketable debt securities |
|
( i 35,448 |
) |
|
|
( i 7,480 |
) |
| ||||
Proceeds from sale of marketable debt securities |
|
i 45,765 |
|
|
i 13,116 |
| ||||||
Proceeds from disposal of capital assets and other, net |
|
i 379 |
|
|
i 633 |
| ||||||
Net cash used in investing activities |
|
( i 90,711 |
) |
|
|
( i 91,899 |
) |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
| ||||||||
Net proceeds from commercial paper |
|
i 79,700 |
|
|
i 149,378 |
| ||||||
Net proceeds from sale of common stock |
|
i 8,822 |
|
|
i 44,671 |
| ||||||
Purchase of treasury stock |
|
( i 449,999 |
) |
|
|
( i 497,060 |
) |
| ||||
Re ayment of p principal porti lease on of financ e liabilities |
|
( i 14,331 |
) |
|
|
( i 12,597 |
) |
| ||||
Net cash used in financing activities |
|
( i 375,808 |
) |
|
|
( i 315,608 |
) |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
i 1,206 |
|
|
( i 7,413 |
) |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
( i 18,211 |
) |
|
|
i 34,262 |
| |||||
Cash and cash equivalents at beginning of period |
|
i 176,300 |
|
|
i 217,824 |
| ||||||
Cash and cash equivalents at end of period |
|
$ |
i 158,089 |
|
|
$ |
i 252,086 |
| ||||
|
|
|
|
Twelve Weeks Ended |
||||||||||||||||||||||||||||||||
(in thousa nds) |
Common Shares Issued |
Common Stock |
Additional Paid-in Capital |
Retained Deficit |
Accumulated Other Comprehensive Loss |
Treasury Stock |
Total |
|||||||||||||||||||||||||
i 25,445 |
$ |
i 254 |
$ |
i 1,264,448 |
$ |
( i 1,305,347 |
) |
$ |
( i 269,322 |
) |
$ |
( i 1,403,884 |
) |
$ |
( i 1,713,851 |
) |
||||||||||||||||
– |
i – |
i – |
i 350,338 |
i – |
i – |
i 350,338 |
||||||||||||||||||||||||||
gain |
– |
i – |
i – |
i – |
i 19,241 |
i – |
i 19,241 |
|||||||||||||||||||||||||
– |
i – |
i – |
i – |
i – |
( i 449,999 |
) |
( i 449,999 |
) |
||||||||||||||||||||||||
i 20 |
i – |
i 8,822 |
i – |
i – |
i – |
i 8,822 |
||||||||||||||||||||||||||
i – |
i – |
i 9,359 |
i – |
i – |
i – |
i 9,359 |
||||||||||||||||||||||||||
i 25,465 |
$ |
i 254 |
$ |
i 1,282,629 |
$ |
( i 955,009 |
) |
$ |
( i 250,081 |
) |
$ |
( i 1,853,883 |
) |
$ |
( i 1,776,090 |
) |
||||||||||||||||
Twelve Weeks Ended November 17 , 2018 |
||||||||||||||||||||||||||||||||
(in thousands) |
Common Shares Issued |
Common Stock |
Additional Paid-in Capital |
Retained Deficit |
Accumulated Other Comprehensive Loss |
Treasury Stock |
Total |
|||||||||||||||||||||||||
i 27,530 |
$ |
i 275 |
$ |
i 1,155,426 |
$ |
( i 1,208,824 |
) |
$ |
( i 235,805 |
) |
$ |
( i 1,231,427 |
) |
$ |
( i 1,520,355 |
) |
||||||||||||||||
2014-09 |
– |
i – |
i – |
( i 6,773 |
) |
i – |
i – |
( i 6,773 |
) |
|||||||||||||||||||||||
i 27,530 |
i 275 |
i 1,155,426 |
( i 1,215,597 |
) |
( i 235,805 |
) |
( i 1,231,427 |
) |
( i 1,527,128 |
) |
||||||||||||||||||||||
– |
i – |
i – |
i 351,406 |
i – |
i – |
i 351,406 |
||||||||||||||||||||||||||
loss |
– |
i – |
i – |
i – |
( i 40,261 |
) |
i – |
( i 40,261 |
) |
|||||||||||||||||||||||
– |
i – |
i – |
i – |
i – |
( i 497,060 |
) |
( i 497,060 |
) |
||||||||||||||||||||||||
i 128 |
i 2 |
i 44,924 |
i – |
i – |
i – |
i 44,926 |
||||||||||||||||||||||||||
i – |
i – |
i 9,501 |
i – |
i – |
i – |
i 9,501 |
||||||||||||||||||||||||||
i 27,658 |
$ |
i 277 |
$ |
i 1,209,851 |
$ |
( i 864,191 |
) |
$ |
( i 276,066 |
) |
$ |
( i 1,728,487 |
) |
$ |
( i 1,658,616 |
) |
Twelve Weeks Ended |
|||||||||
2018 |
|||||||||
i 22 |
% |
i 21 |
% |
||||||
i 1.4 |
% |
i 3.1 |
% |
||||||
i 5.5 |
i 5.6 |
||||||||
i 10 |
% |
i 10 |
% |
||||||
i 0 |
% |
i 0 |
% |
Number of Shares |
Weighted - AverageGrant Date Fair Value |
|||||||||||
i 10,049 |
$ |
i 773.61 |
||||||||||
i 7,008 |
i 1,060.81 |
|||||||||||
( i 2,456 |
) |
i 772.80 |
||||||||||
( i 66 |
) |
i 772.80 |
||||||||||
i 14,535 |
$ |
i 912.23 |
(in thousands) |
Level 1 |
L evel 2 |
Level 3 |
Fair Value |
||||||||||||||||||||
$ |
i 50,015 |
$ |
i 2,350 |
$ |
– |
$ |
i 52,365 |
|||||||||||||||||
i 72,075 |
i 3,931 |
– |
i 76,006 |
|||||||||||||||||||||
$ |
i 122,090 |
$ |
i 6,281 |
$ |
– |
$ |
i 128,371 |
|||||||||||||||||
(in thousands) |
Level 1 |
Level 2 |
Level 3 |
Fair Value |
||||||||||||||||||||
$ |
i 65,344 |
$ |
i 2,614 |
$ |
– |
$ |
i 67,958 |
|||||||||||||||||
i 65,573 |
i 5,395 |
– |
i 70,968 |
|||||||||||||||||||||
$ |
i 130,917 |
$ |
i 8,009 |
$ |
– |
$ |
i 138,926 |
|||||||||||||||||
(in thousands) |
Amortized Cost Basis |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
|||||||||||||||||||
$ |
i 35,093 |
$ |
i 34 |
$ |
( i 6 |
) |
$ |
i 35,121 |
|||||||||||||||
i 60,901 |
i 515 |
( i 18 |
) |
i 61,398 |
|||||||||||||||||||
i 1,787 |
i 1 |
( i 14 |
) |
i 1,774 |
|||||||||||||||||||
i 30,076 |
i 4 |
( i 2 |
) |
i 30,078 |
|||||||||||||||||||
$ |
$ |
$ |
) |
$ |
i 128,371 |
||||||||||||||||||
(in thousands) |
Amortized Cost Basis |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
|||||||||||||||||||
$ |
i 36,998 |
$ |
i 29 |
$ |
( i 19 |
) |
$ |
i 37,008 |
|||||||||||||||
i 45,741 |
i 763 |
i – |
i 46,504 |
||||||||||||||||||||
i 2,089 |
i 2 |
( i 15 |
) |
i 2,076 |
|||||||||||||||||||
i 53,345 |
i – |
( i 7 |
) |
i 53,338 |
|||||||||||||||||||
$ |
$ |
i 794 |
$ |
( i 41 |
) |
$ |
i 138,926 |
||||||||||||||||
(in thousands) |
2019 |
|||||||||||
$ |
i 500,000 |
$ |
i 500,000 |
|||||||||
i 250,000 |
i 250,000 |
|||||||||||
i 500,000 |
i 500,000 |
|||||||||||
i 300,000 |
i 300,000 |
|||||||||||
i 500,000 |
i 500,000 |
|||||||||||
i 300,000 |
i 300,000 |
|||||||||||
i 400,000 |
i 400,000 |
|||||||||||
i 400,000 |
i 400,000 |
|||||||||||
i 600,000 |
i 600,000 |
|||||||||||
i 450,000 |
i 450,000 |
|||||||||||
i 1,109,700 |
i 1,030,000 |
|||||||||||
i 5,309,700 |
i 5,230,000 |
|||||||||||
i 22,376 |
i 23,656 |
|||||||||||
$ |
i 5,287,324 |
$ |
i 5,206,344 |
|||||||||
(in thousands) |
Foreign Currency and Other (2) |
Net Unrealized Gain (Loss) on Securities |
Derivatives |
Total |
||||||||||||||||||||
$ |
( i 265,598 |
) |
$ |
i 591 |
$ |
( i 4,315 |
) |
$ |
( i 269,322 |
) |
||||||||||||||
(1) |
i 19,040 |
( i 233 |
) |
– |
i 18,807 |
|||||||||||||||||||
(loss) (1) |
– |
i 45 |
(3) |
i 389 |
(4) |
i 434 |
||||||||||||||||||
$ |
( i 246,558 |
) |
$ |
i 403 |
$ |
( i 3,926 |
) |
$ |
( i 250,081 |
) |
||||||||||||||
(in thousands) |
Foreign Currency and Other (2) |
Net Unrealized Gain (Loss) on Securities |
Derivatives |
Total |
||||||||||||||||||||
$ |
( i 228,899 |
) |
$ |
( i 873 |
) |
$ |
( i 6,033 |
) |
$ |
( i 235,805 |
) |
|||||||||||||
(1) |
( i 40,573 |
) |
( i 77 |
) |
– |
( i 40,650 |
) |
|||||||||||||||||
c omprehensive loss |
– |
i – |
i 389 |
(4) |
i 389 |
|||||||||||||||||||
$ |
( i 269,472 |
) |
$ |
( i 950 |
) |
$ |
( i 5,644 |
) |
$ |
( i 276,066 |
) |
|||||||||||||
(1) |
Amounts in parentheses indicate debits to Accumulated other comprehensive loss. |
(2) |
Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. subsidiaries earnings. Other foreign currency is not shown net of additional U.S. tax as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested. |
(3) |
Represents realized losses on marketable debt securities, net of tax benefit of $ i 12 in fiscal 2020, which is recorded in Operating, selling, general and administrative expenses on the Condensed Consolidated Statements of Income. See “Note D – Marketable Debt Securities” for further discussion. |
(4) |
Represents losses on derivatives, net of taxes of $ i i 120 /
in both fiscal 2020 and fiscal 2019, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion. |
(in thousands) |
Estimated Useful Life |
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
||||||||||||||||||||
Amortizing intangible assets: |
||||||||||||||||||||||||
Technology |
i 3- i 5
years |
$ |
i 870 |
$ |
( i 870 |
) |
$ |
– |
||||||||||||||||
Customer relationships |
i 3- i 10 years |
i 29,376 |
( i 24,722 |
) |
i 4,654 |
|||||||||||||||||||
Total intangible assets other than goodwill |
$ |
i 30,246 |
$ |
( i 25,592 |
) |
$ |
i 4,654 |
(in thousands) |
Classification |
||||||
Operating lease right-of-use assets |
$ |
i 2,585,105 |
|||||
(1) |
Property and equipment, less accumulated depreciation and amortization |
i 284,383 |
|||||
$ |
i 2,869,488 |
||||||
Current portion of operating lease liab i lities |
$ |
i 232,549 |
|||||
Accrued expenses and other |
i 57,808 |
||||||
Operating lease liabilities, less current portion |
i 2,506,829 |
||||||
Other long-term liabilities |
i 137,856 |
||||||
$ |
i 2,935,042 |
(1) |
Finance lease assets are net of accumulated amortization of $ i 85,107. |
(in thousands) |
Statement of Income Location |
Twelve Weeks Ended |
||||||||||||
Finance lease cost: |
||||||||||||||
Amortization of lease assets |
Depreciation and amortization |
$ |
i 12,656 |
|||||||||||
Interest on lease liabilities |
Interest expense, net |
i 1,385 |
||||||||||||
Operating lease cost (1) |
Selling, general and administrative expenses |
i 81,799 |
||||||||||||
Total lease cost |
$ |
i 95,840 |
||||||||||||
(1) |
Includes short-term leases, variable lease costs and sublease income, which are immaterial. |
(in thousands) |
Finance Leases |
Operating Leases |
Total |
|||||||||||||||||||||||||||||||||
2020 |
$ |
i 44,456 |
$ |
i 238,345 |
$ |
i 282,801 |
||||||||||||||||||||||||||||||
2021 |
i 55,841 |
i 318,198 |
i 374,039 |
|||||||||||||||||||||||||||||||||
2022 |
i 43,890 |
i 304,855 |
i 348,745 |
|||||||||||||||||||||||||||||||||
2023 |
i 30,643 |
i 285,161 |
i 315,804 |
|||||||||||||||||||||||||||||||||
2024 |
i 9,512 |
i 261,818 |
i 271,330 |
|||||||||||||||||||||||||||||||||
Thereafter |
i 25,914 |
i 2,201,994 |
i 2,227,908 |
|||||||||||||||||||||||||||||||||
Total lease payments |
i 210,256 |
i 3,610,371 |
i 3,820,627 |
|||||||||||||||||||||||||||||||||
Less: Interest |
( i 14,592 |
) |
( i 870,993 |
) |
( i 885,585 |
) |
||||||||||||||||||||||||||||||
Present value of lease liabilities |
$ |
i 195,664 |
$ |
i 2,739,378 |
$ |
|||||||||||||||||||||||||||||||
(in thousands) |
Operating Leases |
Capital Leases |
||||||||||||||||||||||
2020 |
$ |
i 315,424 |
$ |
i 56,246 |
||||||||||||||||||||
2021 |
i 302,056 |
i 51,679 |
||||||||||||||||||||||
2022 |
i 281,287 |
i 39,094 |
||||||||||||||||||||||
2023 |
i 252,868 |
i 28,401 |
||||||||||||||||||||||
2024 |
i 221,213 |
i 7,300 |
||||||||||||||||||||||
Thereafter |
i 824,244 |
i – |
||||||||||||||||||||||
Total minimum payments required |
$ |
i 2,197,092 |
i 182,720 |
|||||||||||||||||||||
Less: Interest |
( i 2,815 |
) |
||||||||||||||||||||||
Present value of minimum capital lease payments |
$ |
i 179,905 |
||||||||||||||||||||||
i 29 |
||||
vehicles |
i 4 |
|||
i 15 |
||||
Weighted-average discount rate: |
||||
i 3.20% |
||||
vehicles |
i 2.70% |
|||
i 3.56% |
(in thousands) |
Twelve Weeks Ended |
|||
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases |
$ |
i 50,526 |
||
Leased assets obtained in exchange for new finance lease liabilities |
i 18,297 |
|||
Leased assets obtained in exchange for new operating lease liabilities |
i 19,656 |
Twelve Weeks Ended |
||||||||||||
Stores |
$ |
i 2,743,239 |
$ |
i 2,593,440 |
||||||||
i 49,799 |
i 48,293 |
|||||||||||
$ |
i 2,793,038 |
$ |
i 2,641,733 |
|||||||||
Stores |
$ |
i 1,466,161 |
$ |
i 1,383,564 |
||||||||
i 34,907 |
i 33,910 |
|||||||||||
i 1,501,068 |
i 1,417,474 |
|||||||||||
( i 1,001,045 |
) |
( i 929,656 |
) |
|||||||||
( i 43,743 |
) |
( i 39,006 |
) |
|||||||||
$ |
i 456,280 |
$ |
i 448,812 |
|||||||||
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
A |
B |
A-B=C |
D |
C+D |
||||||||||||||||||||||||
(in thousands, except percentage) |
Fiscal Year Ended 2019 |
Twelve Weeks Ended 2018 |
Forty-One Weeks Ended 2019 |
Twelve Weeks Ended 2019 |
2019 |
|||||||||||||||||||||||
Net income |
$ | 1,617,221 |
$ | 351,406 |
$ | 1,265,815 |
$ | 350,338 |
$ | 1,616,153 |
||||||||||||||||||
Adjustments: |
||||||||||||||||||||||||||||
Interest expense |
184,804 |
39,006 |
145,798 |
43,743 |
189,541 |
|||||||||||||||||||||||
Rent expense (1) |
332,726 |
71,216 |
261,510 |
75,592 |
337,102 |
|||||||||||||||||||||||
Tax effect (2) |
(107,129 |
) | (22,816 |
) | (84,313 |
) | (24,702 |
) | (109,015 |
) | ||||||||||||||||||
Deferred tax liabilities, net of repatriation tax |
(6,340 |
) | – |
(6,340 |
) | – |
(6,340 |
) | ||||||||||||||||||||
Adjusted after-tax return |
$ | 2,021,282 |
$ | 438,812 |
$ | 1,582,470 |
$ | 444,971 |
$ | 2,027,441 |
||||||||||||||||||
Average debt (3) |
$ | 5,182,565 |
||||||||||||||||||||||||||
Average stockholders’ deficit (3) |
(1,666,486 |
) | ||||||||||||||||||||||||||
Add: Rent x 6 (1) |
2,022,612 |
|||||||||||||||||||||||||||
Average finance lease liabilities (3) |
170,863 |
|||||||||||||||||||||||||||
Pre-tax invested capital |
$ | 5,709,554 |
||||||||||||||||||||||||||
Adjusted after-tax ROIC |
35.5% |
|||||||||||||||||||||||||||
A |
B |
A-B=C |
D |
C+D |
||||||||||||||||||||||||
(in thousands, except percentage) |
Fiscal Year Ended 2018 |
Twelve Weeks Ended 2017 |
Forty Weeks Ended 2018 |
Twelve Weeks Ended 2018 |
2018 |
|||||||||||||||||||||||
Net income |
$ | 1,337,536 |
$ | 281,003 |
$ | 1,056,533 |
$ | 351,406 |
$ | 1,407,939 |
||||||||||||||||||
Adjustments: |
||||||||||||||||||||||||||||
Impairment before tax |
193,162 |
– |
193,162 |
– |
193,162 |
|||||||||||||||||||||||
Pension termination charges before tax |
130,263 |
– |
130,263 |
– |
130,263 |
|||||||||||||||||||||||
Interest expense |
174,527 |
38,889 |
135,638 |
39,006 |
174,644 |
|||||||||||||||||||||||
Rent expense |
315,580 |
69,655 |
245,925 |
71,216 |
317,141 |
|||||||||||||||||||||||
Tax effect (2) |
(211,806 |
) | (36,362 |
) | (175,444 |
) | (25,773 |
) | (201,217 |
) | ||||||||||||||||||
Deferred tax liabilities, net of repatriation tax |
(132,113 |
) | – |
(132,113 |
) | – |
(132,113 |
) | ||||||||||||||||||||
Adjusted after-tax return |
$ | 1,807,149 |
$ | 353,185 |
$ | 1,453,964 |
$ | 435,855 |
$ | 1,889,819 |
||||||||||||||||||
Average debt (3) |
$ | 5,028,638 |
||||||||||||||||||||||||||
Average stockholders’ deficit (3) |
(1,479,244 |
) | ||||||||||||||||||||||||||
Add: Rent x 6 |
1,902,846 |
|||||||||||||||||||||||||||
Average finance lease liabilities (3) |
157,763 |
|||||||||||||||||||||||||||
Pre-tax invested capital |
$ | 5,610,003 |
||||||||||||||||||||||||||
Adjusted after-tax ROIC |
33.7% |
|||||||||||||||||||||||||||
(1) |
Effective September 2016-02, Leases (Topic 842), the new lease accounting standard that required the Company to recognize operating lease assets and liabilities in the balance sheet. The table below outlines the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the 12 weeks ended November 23, 2019. |
Total lease cost per ASC 842, for the 12 weeks ended November 23, 2019 |
$ | 95,840 |
||
Less: Finance lease interest and amortization |
(14,041 |
) | ||
Less: Variable operating lease components, related to insurance and common area maintenance for the 12 weeks ended November 23, 2019 |
(6,207 |
) | ||
Rent expense for the 12 weeks ended November 23, 2019 |
75,592 |
|||
Add: Rent expense for the 41 weeks ended August 31, 2019, as previously reported prior to the adoption of ASC 842 |
261,510 |
|||
Rent expense for the 53 weeks ended November 23, 2019 |
$ | 337,102 |
||
(2) | Effective tax rate over trailing four quarters ended November 23, 2019 is 20.7%. Effective tax rate over trailing four quarters ended November 17, 2018 is 24.2% for impairment, 28.1% for pension termination and 23.4% for interest and rent expense. |
(3) | All averages are computed based on trailing 5 quarter balances. |
A |
B |
A-B=C |
D |
C+D |
||||||||||||||||||||||||
(in thousands, except ratio) |
Fiscal Year Ended 2019 |
Twelve Weeks Ended 2018 |
Forty-One Weeks Ended 2019 |
Twelve Weeks Ended 2019 |
Trailing Four Quarters Ended 2019 |
|||||||||||||||||||||||
Net income |
$ | 1,617,221 |
$ | 351,406 |
$ | 1,265,815 |
$ | 350,338 |
$ | 1,616,153 |
||||||||||||||||||
Add: Interest expense |
184,804 |
39,006 |
145,798 |
43,743 |
189,541 |
|||||||||||||||||||||||
Income tax expense |
414,112 |
97,406 |
316,706 |
105,942 |
422,648 |
|||||||||||||||||||||||
Adjusted EBIT |
2,216,137 |
487,818 |
1,728,319 |
500,023 |
2,228,342 |
|||||||||||||||||||||||
Add: Depreciation expense |
369,957 |
82,452 |
287,505 |
89,750 |
377,255 |
|||||||||||||||||||||||
Rent expense |
332,726 |
71,216 |
261,510 |
75,592 |
337,102 |
|||||||||||||||||||||||
Share-based expense |
43,255 |
10,527 |
32,728 |
9,996 |
42,724 |
|||||||||||||||||||||||
Adjusted EBITDAR |
$ | 2,962,075 |
$ | 652,013 |
$ | 2,310,062 |
$ | 675,361 |
$ | 2,985,423 |
||||||||||||||||||
Debt |
$ | 5,287,324 |
||||||||||||||||||||||||||
Finance lease liabilities |
195,663 |
|||||||||||||||||||||||||||
Add : Rent x 6 (1) |
2,022,612 |
|||||||||||||||||||||||||||
Adjusted debt |
$ | 7,505,599 |
||||||||||||||||||||||||||
Adjusted debt to EBITDAR |
2.5 |
|||||||||||||||||||||||||||
A |
B |
A-B=C |
D |
C+D |
||||||||||||||||||||||||
(in thousands, except ratio) |
Fiscal Year Ended 2018 |
Twelve Weeks Ended 2017 |
Forty Weeks Ended 2018 |
Twelve Weeks Ended 2018 |
Trailing Four Quarters Ended 2018 |
|||||||||||||||||||||||
Net income |
$ | 1,337,536 |
$ | 281,003 |
$ | 1,056,533 |
$ | 351,406 |
$ | 1,407,939 |
||||||||||||||||||
Add: Impairment before tax |
193,162 |
– |
193,162 |
– |
193,162 |
|||||||||||||||||||||||
Pension termination charges before tax |
130,263 |
– |
130,263 |
– |
130,263 |
|||||||||||||||||||||||
Interest expense |
174,527 |
38,889 |
135,638 |
39,006 |
174,644 |
|||||||||||||||||||||||
Income tax expense |
298,793 |
148,862 |
149,931 |
97,406 |
247,337 |
|||||||||||||||||||||||
Adjusted EBIT |
2,134,281 |
468,754 |
1,665,527 |
487,818 |
2,153,345 |
|||||||||||||||||||||||
Add: Depreciation expense |
345,084 |
77,986 |
267,098 |
82,452 |
349,550 |
|||||||||||||||||||||||
Rent expense |
315,580 |
69,655 |
245,925 |
71,216 |
317,141 |
|||||||||||||||||||||||
Share-based expense |
43,674 |
11,086 |
32,588 |
10,527 |
43,115 |
|||||||||||||||||||||||
Adjusted EBITDAR |
$ | 2,838,619 |
$ | 627,481 |
$ | 2,211,138 |
$ | 652,013 |
$ | 2,863,151 |
||||||||||||||||||
Debt |
$ | 5,156,037 |
||||||||||||||||||||||||||
Finance lease liabilities |
158,284 |
|||||||||||||||||||||||||||
Add: Rent x 6 |
1,902,846 |
|||||||||||||||||||||||||||
Adjusted debt |
$ | 7,217,167 |
||||||||||||||||||||||||||
Adjusted debt to EBITDAR |
2.5 |
|||||||||||||||||||||||||||
(1) | Effective September 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), the new lease accounting standard that required the Company to recognize operating lease assets and liabilities in the balance sheet. The table below outlines the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the 12 weeks ended November 23, 2019. |
Total lease cost per ASC 842, for the 12 weeks ended November 23, 2019 |
$ | 95,840 |
||
Less: Finance lease interest and amortization |
(14,041 |
) | ||
Less: Variable operating lease components, related to insurance and common area maintenance for the 12 weeks ended November 23, 2019 |
(6,207 |
) | ||
Rent expense for the 12 weeks ended November 23, 2019 |
75,592 |
|||
Add: Rent expense for the 41 weeks ended August 31, 2019, as previously reported prior to the adoption of ASC 842 |
261,510 |
|||
Rent expense for the 53 weeks ended November 23, 2019 |
$ | 337,102 |
||
Item 3. |
Quantitative and Qualitative Disclosures about Market Risk |
Item 4. |
Controls and Procedures |
Item 1. |
Legal Proceedings |
Item 1A. |
Risk Factors |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
Period |
Total Number of Shares Purchased |
Average Price Paid per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs |
||||||||||||
97,846 |
$ | 1,124.20 |
97,846 |
$ | 1,616,794,844 |
|||||||||||
179,671 |
1,083.27 |
179,671 |
1,422,162,936 |
|||||||||||||
125,590 |
1,157.49 |
125,590 |
1,276,793,619 |
|||||||||||||
Total |
403,107 |
$ | 1,116.33 |
403,107 |
$ | 1,276,793,619 |
||||||||||
Item 3. |
Defaults Upon Senior Securities |
Item 4. |
Mine Safety Disclosures |
Item 5. |
Other Information |
Item 6. |
Exhibits |
3.1 |
||
3.2 |
||
15.1 |
||
31.1 |
||
31.2 |
||
32.1* |
||
32.2* |
||
101. INS |
XBRL Instance Document | |
101.SCH |
XBRL Taxonomy Extension Schema Document | |
101.CAL |
XBRL Taxonomy Extension Calculation Document | |
101.LAB |
XBRL Taxonomy Extension Labels Document | |
101.PRE |
XBRL Taxonomy Extension Presentation Document | |
101.DEF |
XBRL Taxonomy Extension Definition Document | |
104. |
Cover Page formatted as Inline XBRL and contained in Exhibits 101 |
AUTOZONE, INC. | ||
By: |
/s/ WILLIAM T. GILES | |
Chief Financial Officer and Executive Vice President | ||
Finance, Information Technology and Store Development | ||
(Principal Financial Officer) | ||
By: |
||
Senior Vice President, Controller | ||
(Principal Accounting Officer) |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
11/18/22 | ||||
11/18/21 | ||||
11/21/20 | ||||
8/29/20 | ||||
Filed on: | 12/20/19 | 4 | ||
12/13/19 | 4 | |||
For Period end: | 11/23/19 | |||
10/28/19 | 10-K, DEF 14A | |||
10/27/19 | ||||
10/26/19 | ||||
10/7/19 | 3, 4 | |||
9/29/19 | ||||
9/28/19 | ||||
9/1/19 | ||||
8/31/19 | 10-K | |||
1/1/19 | 4 | |||
12/15/18 | ||||
11/17/18 | 10-Q | |||
8/25/18 | 10-K | |||
11/18/17 | 10-Q, 8-K | |||
11/18/16 | 8-K | |||
1/29/16 | ||||
4/23/15 | ||||
1/13/14 | ||||
2/19/13 | ||||
1/1/98 | ||||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 8/06/20 AutoZone, Inc. 424B2 1:510K Broadridge Fin’l So… Inc 8/04/20 AutoZone, Inc. 424B5 1:487K Broadridge Fin’l So… Inc |