Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒		Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
		For the quarterly period ended November 23, 2024, or

☐		Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
		For the transition period from _______ to ________.

		Commission file number 1-10714

AUTOZONE, INC.

(Exact name of registrant as specified in its charter)


Nevada	62-1482048
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)


123 South Front Street, Memphis, Tennessee	38103
(Address of principal executive offices)	(Zip Code)

(901) 495-6500

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on which Registered
Common Stock ($0.01 par value)		AZO		New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, $.01 Par Value – 16,782,160 shares outstanding as of December 13, 2024.

Table of Contents

TABLE OF CONTENTS


PART I.		FINANCIAL INFORMATION	3
	Item 1.	Financial Statements	3
		CONDENSED CONSOLIDATED BALANCE SHEETS	3
		CONDENSED CONSOLIDATED STATEMENTS OF INCOME	4
		CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	4
		CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	5
		CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT	6
		NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	7
		REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	16
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
	Item 4.	Controls and Procedures	25
PART II.		OTHER INFORMATION	25
	Item 1.	Legal Proceedings	25
	Item 1A.	Risk Factors	26
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
	Item 3.	Defaults Upon Senior Securities	26
	Item 4.	Mine Safety Disclosures	26
	Item 5.	Other Information	26
	Item 6.	Exhibits	26
SIGNATURES			28

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PART I. FINANCIAL INFORMATION

Item 1.Financial Statements.

AUTOZONE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	November 23,		August 31,
(in thousands)	2024		2024

Assets
Current assets:
Cash and cash equivalents	$	304,018	$	298,172
Accounts receivable		533,485		545,575
Merchandise inventories		6,274,070		6,155,218
Other current assets		308,977		307,794
Total current assets		7,420,550		7,306,759

Property and equipment:
Property and equipment		11,489,436		11,305,125
Less: Accumulated depreciation and amortization		(5,208,333)		(5,121,586)
		6,281,103		6,183,539

Operating lease right-of-use assets		3,086,857		3,057,780
Goodwill		302,645		302,645
Deferred income taxes		79,400		83,689
Other long-term assets		295,207		242,126
Total long-term assets		3,764,109		3,686,240
Total assets	$	17,465,762	$	17,176,538

Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	7,498,696	$	7,355,701
Current portion of operating lease liabilities		270,077		266,855
Accrued expenses and other		1,034,313		1,060,746
Income taxes payable		85,484		30,941
Total current liabilities		8,888,570		8,714,243

Long-term debt		9,012,539		9,024,381
Operating lease liabilities, less current portion		2,982,977		2,960,174
Deferred income taxes		496,003		447,067
Other long-term liabilities		758,594		780,287

Commitments and contingencies

Stockholders’ deficit:
Preferred stock, authorized 1,000 shares; no shares issued		—		—
Common stock, par value $.01 per share, authorized 200,000 shares; 17,495 shares issued and 16,810 shares outstanding as of November 23, 2024; 17,451 shares issued and 16,926 shares outstanding as of August 31, 2024		175		175
Additional paid-in capital		1,684,064		1,621,553
Retained deficit		(3,860,049)		(4,424,982)
Accumulated other comprehensive loss		(407,155)		(361,618)
Treasury stock, at cost		(2,089,956)		(1,584,742)
Total stockholders’ deficit		(4,672,921)		(4,749,614)
Total liabilities and stockholders' deficit	$	17,465,762	$	17,176,538

See Notes to Condensed Consolidated Financial Statements.

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AUTOZONE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Twelve Weeks Ended
	November 23,		November 18,
	2024		2023
(in thousands, except per share data)

Net sales	$	4,279,641	$	4,190,277
Cost of sales, including warehouse and delivery expenses		2,011,584		1,976,261
Gross profit		2,268,057		2,214,016
Operating, selling, general and administrative expenses		1,426,908		1,365,412
Operating profit		841,149		848,604
Interest expense, net		107,629		91,384
Income before income taxes		733,520		757,220
Income tax expense		168,587		163,757
Net income	$	564,933	$	593,463

Weighted average shares for basic earnings per share		16,913		17,709
Effect of dilutive stock equivalents		457		525
Weighted average shares for diluted earnings per share		17,370		18,234

Basic earnings per share	$	33.40	$	33.51
Diluted earnings per share	$	32.52	$	32.55

See Notes to Condensed Consolidated Financial Statements.

AUTOZONE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Twelve Weeks Ended
	November 23,		November 18,
	2024		2023
(in thousands)

Net income	$	564,933	$	593,463
Other comprehensive (loss) income:
Foreign currency translation adjustments		(44,989)		(20,221)
Unrealized (losses) gains on marketable debt securities, net of taxes		(952)		295
Net derivative activities, net of taxes		404		403
Total other comprehensive loss		(45,537)		(19,523)
Comprehensive income	$	519,396	$	573,940

See Notes to Condensed Consolidated Financial Statements.

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AUTOZONE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Twelve Weeks Ended
	November 23,		November 18,
	2024		2023
(in thousands)

Cash flows from operating activities:
Net income	$	564,933	$	593,463
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment		133,173		120,224
Other non-cash income		—		(2,000)
Amortization of debt origination fees		3,018		2,810
Deferred income taxes		(4,831)		882
Share-based compensation expense		26,117		22,913
Changes in operating assets and liabilities:
Accounts receivable		9,873		6,856
Merchandise inventories		(136,181)		(21,899)
Accounts payable and accrued expenses		170,032		33,762
Income taxes		103,019		96,793
Other, net		(57,350)		(23,545)
Net cash provided by operating activities		811,803		830,259

Cash flows from investing activities:
Capital expenditures		(247,035)		(235,428)
Purchase of marketable debt securities		(12,311)		(4,115)
Proceeds from sale of marketable debt securities		12,614		1,944
Investment in tax credit equity investments		(31,018)		(41,150)
Proceeds from disposal of capital assets and other, net		12,001		8,235
Net cash used in investing activities		(265,749)		(270,514)

Cash flows from financing activities:
Net payments of commercial paper		(15,000)		(76,900)
Proceeds from issuance of debt		—		1,000,000
Net proceeds from sale of common stock		36,002		41,448
Purchase of treasury stock		(540,086)		(1,486,876)
Repayment of principal portion of finance lease liabilities		(23,106)		(20,202)
Other, net		4,094		(9,696)
Net cash used in financing activities		(538,096)		(552,226)

Effect of exchange rate changes on cash		(2,112)		(1,592)

Net increase in cash and cash equivalents		5,846		5,927
Cash and cash equivalents at beginning of period		298,172		277,054
Cash and cash equivalents at end of period	$	304,018	$	282,981

See Notes to Condensed Consolidated Financial Statements.

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AUTOZONE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(Unaudited)


	Twelve Weeks Ended November 23, 2024
								Accumulated
	Common			Additional				Other
	Shares	Common		Paid-in		Retained		Comprehensive		Treasury
(in thousands)	Issued	Stock		Capital		Deficit		Loss		Stock		Total

Balance at August 31, 2024	17,451	$	175	$	1,621,553	$	(4,424,982)	$	(361,618)	$	(1,584,742)	$	(4,749,614)
Net income	—		—		—		564,933		—		—		564,933
Total other comprehensive loss	—		—		—		—		(45,537)		—		(45,537)
Purchase of 160 shares of treasury stock	—		—		—		—		—		(505,214)		(505,214)
Issuance of common stock under stock options and stock purchase plans	44		—		36,002		—		—		—		36,002
Share-based compensation expense	—		—		26,509		—		—		—		26,509
Balance at November 23, 2024	17,495	$	175	$	1,684,064	$	(3,860,049)	$	(407,155)	$	(2,089,956)	$	(4,672,921)


	Twelve Weeks Ended November 18, 2023
								Accumulated
	Common			Additional				Other
	Shares	Common		Paid-in		Retained		Comprehensive		Treasury
(in thousands)	Issued	Stock		Capital		Deficit		Loss		Stock		Total

Balance at August 26, 2023	18,936	$	189	$	1,484,992	$	(2,959,278)	$	(190,836)	$	(2,684,961)	$	(4,349,894)
Net income	—		—		—		593,463		—		—		593,463
Total other comprehensive loss	—		—		—		—		(19,523)		—		(19,523)
Purchase of 580 shares of treasury stock	—		—		—		—		—		(1,501,236)		(1,501,236)
Issuance of common stock under stock options and stock purchase plans	48		1		41,447		—		—		—		41,448
Share-based compensation expense	—		—		22,071		—		—		—		22,071
Balance at November 18, 2023	18,984	$	190	$	1,548,510	$	(2,365,815)	$	(210,359)	$	(4,186,197)	$	(5,213,671)

See Notes to Condensed Consolidated Financial Statements.

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AUTOZONE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note A – General

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission’s (the “SEC”) rules and regulations. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. For further information, refer to the consolidated financial statements and related notes included in the AutoZone, Inc. (“AutoZone” or the “Company”) Annual Report on Form 10-K for the year ended August 31, 2024.

Operating results for the twelve weeks ended November 23, 2024, are not necessarily indicative of the results that may be expected for the full fiscal year ending August 30, 2025. Each of the first three quarters of AutoZone’s fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarter of fiscal 2025 has 16 weeks, and the fourth quarter of fiscal 2024 had 17 weeks.

Recently Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280). The amendments in this ASU require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (CODM), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. This ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments in the update and existing segment disclosures in Topic 280. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company will adopt this standard beginning with our fiscal 2025 annual filing. The Company is currently evaluating these new disclosure requirements and the impact of adoption.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740). The amendments in this ASU are intended to enhance the transparency of income tax information by updating income tax disclosure requirements. The guidance is effective for public entities for annual periods beginning after December 15, 2024, and early adoption is permitted. The amendments in this ASU should be applied on a prospective basis; however, retrospective application is permitted. The Company will adopt this standard with our fiscal 2026 annual filing. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40). This ASU requires disclosure in the notes to financial statements, at each interim and annual reporting period, of specified information about certain costs and expenses including purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption. Also required is a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated. This ASU is effective for all public entities for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, and early adoption is permitted. This ASU should be applied either prospectively to financial statements issued after the effective date of this update or retrospectively to all prior periods presented in the financial statements. The Company will adopt this standard with our fiscal 2028 annual filing. The Company is currently evaluating these new disclosure requirements and the impact of adoption.

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Note B – Merchandise Inventories

Merchandise inventories include related purchasing, storage and handling costs. Inventory cost has been determined using the last-in, first-out (“LIFO”) method stated at the lower of cost or market for domestic inventories and the weighted average cost method stated at the lower of cost or net realizable value for Mexico and Brazil inventories. The Company’s policy is not to write up inventory in excess of replacement cost. Due to price changes on the Company’s merchandise purchases, primarily driven by fluctuating freight costs, the Company’s LIFO credit reserve balance was $19.0 million at November 23, 2024, and August 31, 2024. Increases to the Company’s LIFO credit reserve balance are recorded as a non-cash charge to cost of sales and decreases are recorded as a non-cash benefit to cost of sales.

Note C – Variable Interest Entities

The Company invests in certain tax credit funds that promote renewable energy and generate a return primarily through the realization of federal tax credits. The Company considers its investment in these tax credit funds as investments in variable interest entities (“VIEs”). The Company evaluates the investment in any VIE to determine whether it is the primary beneficiary. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. As of November 23, 2024, the Company held tax credit equity investments that were deemed to be VIEs and determined that it was not the primary beneficiary of the entities, as it did not have the power to direct the activities that most significantly impacted the entities and accounted for these investments using the equity method. The Company’s maximum exposure to losses is generally limited to its net investment, which was $84.9 million and $53.9 million as of November 23, 2024, and August 31, 2024, respectively, and was included within the Other long-term assets caption in the Condensed Consolidated Balance Sheets.

Note D – Fair Value Measurements

The Company defines fair value as the price received to transfer an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with ASC 820, Fair Value Measurements and Disclosures, the Company uses the fair value hierarchy, which prioritizes the inputs used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are set forth below:

Level 1 inputs—unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date.

Level 2 inputs—inputs other than quoted market prices included within Level 1 that are observable, either directly or indirectly, for the asset or liability.

Level 3 inputs—unobservable inputs for the asset or liability, which are based on the Company’s own assumptions as there is little, if any, observable activity in identical assets or liabilities.

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Marketable Debt Securities Measured at Fair Value on a Recurring Basis

The Company’s marketable debt securities measured at fair value on a recurring basis were as follows:


	November 23, 2024
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	21,486	$	12,849	$	—	$	34,335
Other long-term assets		31,153		55,155		—		86,308
	$	52,639	$	68,004	$	—	$	120,643


	August 31, 2024
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	26,697	$	11,734	$	—	$	38,431
Other long-term assets		27,031		56,696		—		83,727
	$	53,728	$	68,430	$	—	$	122,158

At November 23, 2024, the fair value measurement amounts for assets and liabilities recorded in the accompanying Condensed Consolidated Balance Sheets consisted of short-term marketable debt securities of $34.3 million, which are included within Other current assets, and long-term marketable debt securities of $86.3 million, which are included in Other long-term assets. The Company’s marketable debt securities are typically valued at the closing price in the principal active market as of the last business day of the quarter or through the use of other market inputs relating to the securities, including benchmark yields and reported trades. The fair values of the marketable debt securities, by asset class, are described in “Note E – Marketable Debt Securities.”

Financial Instruments not Recognized at Fair Value

The Company has financial instruments, including cash and cash equivalents, accounts receivable, other current assets and accounts payable. The carrying amounts of these financial instruments approximate fair value because of their short maturities. A discussion of the carrying values and fair values of the Company’s debt is included in “Note H – Financing.”

Note E – Marketable Debt Securities

Marketable debt securities are carried at fair value, with unrealized gains and losses, net of income taxes, recorded in Accumulated other comprehensive loss until realized, and any credit risk related losses are recognized in net income in the period incurred. The Company’s basis for determining the cost of a security sold is the “Specific Identification Model.”

The Company’s available-for-sale marketable debt securities consisted of the following:


	November 23, 2024
	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
(in thousands)	Basis		Gains		Losses		Value

Corporate debt securities	$	34,366	$	57	$	(243)	$	34,180
Government bonds		50,628		274		(714)		50,188
Mortgage-backed securities		22,014		59		(279)		21,794
Asset-backed securities and other		14,481		34		(34)		14,481
	$	121,489	$	424	$	(1,270)	$	120,643

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	August 31, 2024
	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
(in thousands)	Basis		Gains		Losses		Value

Corporate debt securities	$	32,355	$	183	$	(78)	$	32,460
Government bonds		50,251		483		(493)		50,241
Mortgage-backed securities		22,859		326		(95)		23,090
Asset-backed securities and other		16,327		66		(26)		16,367
	$	121,792	$	1,058	$	(692)	$	122,158

The contractual maturities of the Company’s available for sale marketable debt securities are as follows:


	November 23, 2024
	Amortized		Fair
(in thousands)	Cost Basis		Value

Due within one year	$	35,904	$	34,335
Due after one year through five years		50,134		51,471
Due after five years through ten years		18,540		18,085
Due after ten years		16,911		16,752
	$	121,489	$	120,643

At November 23, 2024, the Company held 92 securities that are in an unrealized loss position of approximately $1.3 million. In evaluating whether a credit loss exists for the securities, the Company considers factors such as the severity of the loss position, the credit worthiness of the investee, the term to maturity and the intent and ability to hold the investments until maturity or until recovery of fair value. An allowance for credit losses was deemed unnecessary given consideration of the factors above. The Company did not realize any material gains or losses on its marketable debt securities during the twelve week period ended November 23, 2024, and the comparable prior year period.

Included above in total available-for-sale marketable debt securities are $111.5 million of marketable debt securities transferred by the Company’s insurance captive to a trust account to secure its obligations to an insurance company related to future workers’ compensation and casualty losses as of November 23, 2024, and August 31, 2024.

Note F – Supplier Financing Programs

The Company has arrangements with third-party financial institutions to confirm invoice balances owed by the Company to certain suppliers and pay the financial institutions the confirmed amounts on the invoice due dates. These arrangements allow the Company’s inventory suppliers, at their sole discretion, to enter into agreements directly with these financial institutions to finance the Company’s obligations to the suppliers at terms negotiated between the suppliers and the financial institutions. Supplier participation is optional and our obligations to our suppliers, including the amount and dates due, are not impacted by our suppliers’ decision to enter into an agreement with a third-party financial institution. As of November 23, 2024, and August 31, 2024, the Company had supplier obligations outstanding that had been confirmed under these arrangements of $5.0 billion and $4.9 billion, respectively, which are included in Accounts payable and $206.5 million and $226.7 million, respectively, which are included in Other long-term liabilities in the Condensed Consolidated Balance Sheets.

Note G – Litigation

The Company is involved in various legal proceedings incidental to the conduct of its business, including, but not limited to, claims and allegations related to wage and hour violations, unlawful termination, employment practices, product liability, privacy and cybersecurity, environmental matters, intellectual property rights or regulatory compliance. The Company does not currently believe that, either individually or in the aggregate, these matters will result in liabilities material to the Company’s financial condition, results of operations or cash flows.

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Note H – Financing

The Company’s debt consisted of the following:


	November 23,		August 31,
(in thousands)	2024		2024

3.250% Senior Notes due April 2025, effective interest rate 3.36%	$	400,000	$	400,000
3.625% Senior Notes due April 2025, effective interest rate 3.78%		500,000		500,000
3.125% Senior Notes due April 2026, effective interest rate 3.28%		400,000		400,000
5.050% Senior Notes due July 2026, effective interest rate 5.09%		450,000		450,000
3.750% Senior Notes due June 2027, effective interest rate 3.83%		600,000		600,000
4.500% Senior Notes due February 2028, effective interest rate 4.43%		450,000		450,000
6.250% Senior Notes due November 2028, effective interest rate 6.46%		500,000		500,000
3.750% Senior Notes due April 2029, effective interest rate 3.86%		450,000		450,000
5.100% Senior Notes due July 2029, effective interest rate 5.30%		600,000		600,000
4.000% Senior Notes due April 2030, effective interest rate 4.09%		750,000		750,000
1.650% Senior Notes due January 2031, effective interest rate 2.19%		600,000		600,000
4.750% Senior Notes due August 2032, effective interest rate 4.76%		750,000		750,000
4.750% Senior Notes due February 2033, effective interest rate 4.70%		550,000		550,000
5.200% Senior Notes due August 2033, effective interest rate 5.22%		300,000		300,000
6.550% Senior Notes due November 2033, effective interest rate 6.71%		500,000		500,000
5.400% Senior Notes due July 2034, effective interest rate 5.54%		700,000		700,000
Commercial paper, weighted average interest rate 4.65% at November 23, 2024 and 5.40% at August 31, 2024		565,000		580,000
Total debt before discounts and debt issuance costs		9,065,000		9,080,000
Less: Discounts and debt issuance costs		52,461		55,619
Long-term debt	$	9,012,539	$	9,024,381

On November 15, 2021, the Company amended and restated its existing revolving credit facility (as amended from time to time, the “Revolving Credit Agreement”) pursuant to which the Company’s borrowing capacity was increased from $2.0 billion to $2.25 billion, and the maximum borrowing under the Revolving Credit Agreement may, at the Company’s option, subject to lenders’ approval, be increased from $2.25 billion to $3.25 billion. On November 15, 2022, the Company amended the Revolving Credit Agreement, extending the termination date by one year, and on November 15, 2024 the Company amended the Revolving Credit Agreement to extend the termination date an additional one year. As amended, the Revolving Credit Agreement will terminate, and all amounts borrowed will be due and payable on November 15, 2028. Revolving borrowings under the Revolving Credit Agreement may be base rate loans, Term Secured Overnight Financing Rate (“SOFR”) loans, or a combination of both, at AutoZone’s election. The Revolving Credit Agreement includes (i) a $75 million sublimit for swingline loans, (ii) a $50 million individual issuer letter of credit sublimit and (iii) a $250 million aggregate sublimit for all letters of credit.

Under the Company’s Revolving Credit Agreement, covenants include restrictions on liens, a maximum debt to earnings ratio, a minimum fixed charge coverage ratio and a change of control provision that may require acceleration of the repayment obligations under certain circumstances.

As of November 23, 2024, the Company had no outstanding borrowings and $1.7 million of outstanding letters of credit under the Revolving Credit Agreement.

The Company also maintains a letter of credit facility that allows it to request the participating bank to issue letters of credit on its behalf up to an aggregate amount of $25 million. The letter of credit facility is in addition to the letters of credit that may be issued under the Revolving Credit Agreement. As of November 23, 2024, and August 31, 2024, the Company had no letters of credit outstanding under the letter of credit facility, which expires in June 2025.

In addition to the outstanding letters of credit issued under the committed facilities discussed above, the Company had $141.6 million in letters of credit outstanding as of both November 23, 2024 and August 31, 2024. These letters of credit

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have various maturity dates and were issued on an uncommitted basis. Additionally, the Company’s total surety bonds commitment was $47.7 million at November 23, 2024, compared with $48.9 million at August 31, 2024. Since its fiscal year end, the Company has canceled, issued and modified stand-by letters of credit that are primarily renewed on an annual basis to cover deductible payments to its casualty insurance carriers.

As of November 23, 2024, the $565 million commercial paper borrowings, the $400 million 3.250% Senior Notes due April 2025 and the $500 million 3.625% Senior Notes due April 2025 were classified as long-term debt in the accompanying Condensed Consolidated Balance Sheets as the Company currently has the ability and intent to refinance them on a long-term basis through available capacity under its Revolving Credit Agreement. As of November 23, 2024, the Company had $2.2 billion of availability under its Revolving Credit Agreement, without giving effect to commercial paper borrowings, which would allow it to replace these short-term obligations with a long-term financing facility.

The Senior Notes contain a provision that repayment may be accelerated if the Company experiences both a change of control and a rating event (both as defined in the agreements). The Company’s borrowings under its Senior Notes contain minimal covenants, primarily restrictions on liens. All of the repayment obligations under its borrowing arrangements may be accelerated and come due prior to the scheduled payment date if covenants are breached or an event of default occurs. Interest for the Senior Notes is paid on a semi-annual basis.

As of November 23, 2024, the Company was in compliance with all covenants and expects to remain in compliance with all covenants under its borrowing arrangements.

Note I – Stock Repurchase Program

From January 1, 1998, to November 23, 2024, the Company has repurchased a total of 155.3 million shares of its common stock at an aggregate cost of $37.5 billion, including 160.1 thousand shares of its common stock at an aggregate cost of $505.2 million during the twelve week period ended November 23, 2024.

On June 19, 2024, the Board voted to authorize the repurchase of an additional $1.5 billion of the Company’s common stock in connection with its ongoing share repurchase program, which raised the total value of shares authorized to be repurchased to $39.2 billion. Considering the cumulative repurchases as of November 23, 2024, the Company had $1.7 billion remaining under the Board’s authorization to repurchase its common stock.

Subsequent to November 23, 2024, and through December 13, 2024, the Company has repurchased 38.2 thousand shares of its common stock at an aggregate cost of $123.2 million.

Note J – Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss includes foreign currency translation adjustments, unrealized (losses) gains on marketable debt securities, and net derivative activities.

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Changes in Accumulated other comprehensive loss for the twelve week periods ended November 23, 2024, and November 18, 2023, consisted of the following:


			Net
	Foreign		Unrealized
	Currency		Gain (Loss)
(in thousands)	and Other⁽¹⁾		on Securities		Derivatives		Total

Balance at August 31, 2024	$	(351,272)	$	300	$	(10,646)	$	(361,618)
Other comprehensive loss before reclassifications⁽²⁾		(44,989)		(952)		—		(45,941)
Amounts reclassified from Accumulated other comprehensive loss⁽²⁾		—		—		404		404
Balance at November 23, 2024	$	(396,261)	$	(652)	$	(10,242)	$	(407,155)


			Net
	Foreign		Unrealized
	Currency		Gain (Loss)
(in thousands)	and Other⁽¹⁾		on Securities		Derivatives		Total

Balance at August 26, 2023	$	(176,557)	$	(1,851)	$	(12,428)	$	(190,836)
Other comprehensive (loss) income before reclassifications⁽²⁾		(20,221)		295		—		(19,926)
Amounts reclassified from Accumulated other comprehensive loss⁽²⁾		—		—		403		403
Balance at November 18, 2023	$	(196,778)	$	(1,556)	$	(12,025)	$	(210,359)

(1)	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.

(2)	Amounts shown are net of taxes/tax benefits.

Note K – Share-Based Payments

AutoZone maintains several equity incentive plans, which provide equity-based compensation to non-employee directors and eligible employees for their service to AutoZone, its subsidiaries or affiliates. The Company recognizes compensation expense for share-based payments based on the fair value of the awards at the grant date. Share-based payments include stock option grants, restricted stock grants, restricted stock unit grants, stock appreciation rights, discounts on shares sold to employees under share purchase plans and other awards. Additionally, directors’ fees are paid in restricted stock units with value equivalent to the value of shares of common stock as of the grant date. The change in fair value of liability-based stock awards is also recognized in share-based compensation expense.

Stock Options:

The Company made stock option grants for 118,813 shares during the twelve week period ended November 23, 2024, and granted options to purchase 130,723 shares during the comparable prior year period. The Company grants options to purchase common stock to certain of its employees under its equity incentive plans at prices equal to or above the market value of the stock on the date of grant. Option-vesting periods range from four to five years, with the vast majority of options vesting ratably over four years. The fair value of each option is amortized into compensation expense on a straight-line basis over the requisite service period, less estimated forfeitures. Employees who meet the qualified retirement provisions under the AutoZone, Inc. 2020 Omnibus Incentive Award Plan are assumed to have a 0% forfeiture rate. All other employee grants assume a 10% forfeiture rate, which is based on historical experience.

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The weighted average fair value of the stock option awards granted during the twelve week periods ended November 23, 2024, and November 18, 2023, using the Black-Scholes-Merton multiple-option pricing valuation model, was $1,020.28 and $913.31 per share, respectively, using the following weighted average key assumptions:


	Twelve Weeks Ended
	November 23,		November 18,
	2024		2023

Expected price volatility	26	%	29	%
Risk-free interest rate	3.9	%	4.8	%
Weighted average expected lives (in years)	5.5		5.4
Forfeiture rate	7	%	7	%
Dividend yield	0	%	0	%

During the twelve week period ended November 23, 2024, and the comparable prior year period, 41,085 and 44,644 stock options, respectively, were exercised at a weighted average exercise price of $872.81 and $931.85, respectively.

As of November 23, 2024, total unrecognized share-based expense related to stock options, net of estimated forfeitures, was approximately $196.7 million, before income taxes, which we expect to recognize over an estimated weighted average period of 3.3 years.

Restricted Stock Units:

Restricted stock unit awards are valued at the market price of a share of the Company’s stock on the date of grant. Grants of employee restricted stock units vest ratably on an annual basis over a four-year service period and are payable in shares of common stock on the vesting date. Compensation expense for grants of employee restricted stock units is recognized on a straight-line basis over the four-year service period, less estimated forfeitures, which are consistent with stock option forfeiture assumptions. Grants of non-employee director restricted stock units are made and expensed on January 1 of each year, as they vest immediately.

The Company made grants of 2,054 and 2,173 restricted stock unit awards at weighted average grant date fair values of $3,129.78 and $2,549.04, respectively, during the twelve week periods ended November 23, 2024, and November 18, 2023.

During the twelve week period ended November 23, 2024, and the comparable prior year period, 2,529 and 3,741 restricted stock unit awards, respectively, were vested at a weighted average grant date fair value of $1,716.43 and $1,383.34, respectively.

As of November 23, 2024, total unrecognized stock-based compensation expense related to nonvested restricted stock unit awards, net of estimated forfeitures, was approximately $11.8 million, before income taxes, which we expect to recognize over an estimated weighted average period of 3.1 years.

Total share-based compensation expense (a component of Operating, selling, general and administrative expenses) was $26.1 million and $22.9 million, respectively, for the twelve week periods ended November 23, 2024, and November 18, 2023.

For the twelve week period ended November 23, 2024, and the comparable prior year period, 81,028 and 169,798 stock options, respectively, were excluded from the diluted earnings per share computation because they would have been anti-dilutive.

See AutoZone’s Annual Report on Form 10-K for the year ended August 31, 2024, and other filings with the SEC, for a discussion regarding the methodology used in developing AutoZone’s assumptions to determine the fair value of the option awards and a description of AutoZone’s Amended and Restated 2011 Equity Incentive Award Plan, the AutoZone, Inc. 2020 Omnibus Incentive Award Plan and the Director Compensation Program.

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Note L – Segment Reporting

The Company’s primary 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, 2024.

The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 7,387 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 automotive diagnostic, repair and shop management 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
	November 23,		November 18,
(in thousands)	2024		2023

Net Sales
Auto Parts Stores	$	4,199,732	$	4,115,694
Other		79,909		74,583
Total	$	4,279,641	$	4,190,277

Segment Profit
Auto Parts Stores	$	2,220,608	$	2,170,025
Other		47,449		43,991
Gross profit		2,268,057		2,214,016
Operating, selling, general and administrative expenses		(1,426,908)		(1,365,412)
Interest expense, net		(107,629)		(91,384)
Income before income taxes	$	733,520	$	757,220

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Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors of

AutoZone, Inc.

Results of Review of Interim Financial Statements

We have reviewed the accompanying condensed consolidated balance sheet of AutoZone, Inc. (the Company) as of November 23, 2024, the related condensed consolidated statements of income, comprehensive income, stockholders’ deficit and cash flows for the twelve week periods ended November 23, 2024 and November 18, 2023, and the related notes (collectively referred to as the “condensed consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of August 31, 2024, the related consolidated statements of income, comprehensive income, stockholders’ deficit and cash flows for the year then ended, and the related notes (not presented herein); and in our report dated October 28, 2024, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of August 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Ernst & Young LLP

Memphis, Tennessee

December 20, 2024

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

In Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), we provide a historical and prospective narrative of our general financial condition, results of operations, liquidity and certain other factors that may affect the future results of AutoZone, Inc. (“AutoZone” or the “Company”). The following MD&A discussion should be read in conjunction with our Condensed Consolidated Financial Statements, related notes to those statements and other financial information, including forward-looking statements and risk factors, that appear elsewhere in this Quarterly Report on Form 10-Q, our Annual Report on Form 10-K for the year ended August 31, 2024, and our other filings with the SEC.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically use words such as “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “seek,” “may,” “could” and similar expressions. These are based on assumptions and assessments made by our management in light of experience, historical trends, current conditions, expected future developments and other factors that we believe appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: product demand, due to changes in fuel prices, miles driven or otherwise; energy prices; weather, including extreme temperatures and natural disasters; competition; credit market conditions; cash flows; access to financing on favorable terms; future stock repurchases; the impact of recessionary conditions; consumer debt levels; changes in laws or regulations; risks associated with self-insurance; war and the prospect of war, including terrorist activity; public health issues; inflation, including wage inflation; exchange rates; the ability to hire, train and retain qualified employees including members of management; construction delays; failure or interruption of our information technology systems; issues relating to the confidentiality, integrity or availability of information, including due to cyber-attacks; historic growth rate sustainability; downgrade of our credit ratings; damage to our reputation; challenges associated with doing business in and expanding into international markets; origin and raw material costs of suppliers; inventory availability; disruption in our supply chain; tariffs and trade policies; new accounting standards; our ability to execute our growth initiatives; and other business interruptions. These and other risks and uncertainties are discussed in more detail in the “Risk Factors” section contained in Item 1A under Part 1 of our Annual Report on Form 10-K for the year ended August 31, 2024. Forward-looking statements are not guarantees of future performance and actual results may differ materially from those contemplated by such forward-looking statements. Events described above and in the “Risk Factors” could materially and adversely affect our business. However, it is not possible to identify or predict all such risks and other factors that could affect these forward-looking statements. Forward-looking statements speak only as of the date made. Except as required by applicable law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Overview

We are the leading retailer and distributor of automotive replacement parts and accessories in the Americas. We began operations in 1979, and at November 23, 2024, operated 6,455 stores in the U.S., 800 stores in Mexico and 132 stores in Brazil. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products. At November 23, 2024, in 5,935 of our domestic stores as well as the vast majority of our stores in Mexico and Brazil, we had a commercial sales program that provided prompt delivery of parts and other products and commercial credit to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. We also sell automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and our commercial customers can make purchases through www.autozonepro.com. Additionally, we sell the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.alldata.com. We also provide product information on our Duralast branded products through www.duralastparts.com. We do not derive revenue from automotive repair or installation services. Our websites and the information contained therein or linked thereto are not intended to be incorporated into this report.

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Operating results for the twelve weeks ended November 23, 2024, are not necessarily indicative of the results that may be expected for the fiscal year ending August 30, 2025. Each of the first three quarters of our fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarter of fiscal 2025 has 16 weeks, and the fourth quarter of fiscal 2024 had 17 weeks. Our business is somewhat seasonal in nature, with the highest sales generally occurring during the months of February through September, and the lowest sales generally occurring in the months of December and January.

Executive Summary

Net sales increased to $4.3 billion, a 2.1% increase over the prior year period. Our retail and commercial sales in our domestic and international markets grew as we continue to make progress on our growth initiatives. Operating profit decreased 0.9% to $841.1 million. Operating profit was negatively impacted $17.0 million due to unfavorable exchange rates. Net income decreased 4.8% to $564.9 million and diluted earnings per share decreased 0.1% to $32.52.

During the first quarter of fiscal 2025, failure and maintenance related categories represented the largest portion of our sales mix at approximately 86% of total sales, which is consistent with the comparable prior year period. Failure related categories continue to be the largest portion of our sales mix. We did not experience any fundamental shifts in our category sales mix as compared to the previous year. Our sales mix can be impacted by weather over a short-term period. Over the long-term, we believe the impact of weather on our sales mix is not significant.

Our business is impacted by various factors within the economy that affect both our consumers and our industry, including but not limited to inflation, interest rates, levels of consumer debt, fuel and energy costs, prevailing wage rates, foreign exchange rate fluctuations, supply chain disruptions, tariffs and trade policies, hiring and other economic conditions. Given the nature of these macroeconomic factors, we cannot predict whether or for how long certain trends will continue, nor can we predict to what degree these trends will impact us in the future.

The two statistics we believe have the closest correlation to our market growth over the long-term are miles driven and the number of seven year old or older vehicles on the road. For the 12-month period ended in September 2024, miles driven in the U.S. increased 1.1% compared to the same period in the prior year, based on the latest information available from the U.S. Department of Transportation. According to S&P Global Mobility, as of January 1, 2024, the average age of light vehicles on the road was 12.6 years.

Twelve Weeks Ended November 23, 2024

Compared with Twelve Weeks Ended November 18, 2023

Net sales for the twelve weeks ended November 23, 2024, increased $89.4 million to $4.3 billion, or 2.1% over net sales for the comparable prior year period. This growth was driven primarily by an increase in total company same store sales of 1.8% on a constant currency basis and net sales of $71.9 million from new domestic and international stores. Domestic commercial sales increased $35.3 million to $1.1 billion, or 3.2% over the comparable prior year period.

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Same store sales, or sales for our domestic and international stores open at least one year, are as follows:


	Twelve Weeks Ended
						Constant Currency⁽¹⁾
		November 23, 2024		November 18, 2023		November 23, 2024		November 18, 2023
Domestic		0.3	%	1.2	%	0.3	%	1.2	%
International		1.0	%	25.1	%	13.7	%	10.9	%
Total Company		0.4	%	3.4	%	1.8	%	2.1	%

(1)	Constant currency same store sales exclude impacts from fluctuations of foreign exchange rates by converting both the current year and prior year international results at the prior year foreign currency exchange rate.

Gross profit for the twelve weeks ended November 23, 2024, was $2.3 billion, compared with $2.2 billion during the comparable prior year period. Gross profit, as a percentage of sales, was 53.0% compared to 52.8% during the comparable prior year period. The increase in gross margin was driven primarily by higher merchandise margins.

Operating, selling, general and administrative expenses for the twelve weeks ended November 23, 2024, and the comparable prior year period were $1.4 billion. As a percentage of sales, these expenses were 33.3% compared with 32.6% during the comparable prior year period.

Net interest expense for the twelve weeks ended November 23, 2024, was $107.6 million compared to $91.4 million during the comparable prior year period. Average borrowings were $8.9 billion and $8.1 billion, and weighted average borrowing rates were 4.43% and 4.23% for the twelve weeks ended November 23, 2024, and November 18, 2023, respectively.

Our effective income tax rate for the twelve weeks ended November 23, 2024, was 23.0% of pretax income compared to 21.6% for the comparable prior year period. The benefit from stock options exercised for the twelve week period ended November 23, 2024, was $5.3 million compared to $11.2 million in the comparable prior year period.

Net income for the twelve weeks ended November 23, 2024, decreased by $28.5 million from the comparable prior year period to $564.9 million due to the factors set forth above, and diluted earnings per share decreased by 0.1% to $32.52 from $32.55. The impact on current quarter diluted earnings per share from stock repurchases since the end of the comparable prior year period was an increase of $0.22.

Liquidity and Capital Resources

The primary source of our liquidity is our cash flows realized through the sale of automotive parts, products and accessories. We believe that our cash generated from operating activities and available credit, supplemented with our long-term borrowings will provide ample liquidity to fund our operations while allowing us to make strategic investments to support growth initiatives and return excess cash to shareholders in the form of share repurchases. As of November 23, 2024, we held $304.0 million of cash and cash equivalents, as well as $2.2 billion in undrawn capacity on our Revolving Credit Agreement, before giving effect to commercial paper borrowings. We believe our sources of liquidity will continue to be adequate to fund our operations and investments to grow our business, repay our debt as it becomes due and fund our share repurchases over the short-term and long-term. In addition, we believe we have the ability to obtain alternative sources of financing, if necessary. However, decreased demand for our products or changes in customer buying patterns would negatively impact our ability to generate cash from operating activities. Decreased demand or changes in buying patterns could also impact our ability to meet the debt covenants of our credit agreements and, therefore, negatively impact the funds available under our Revolving Credit Agreement. In the event our liquidity is insufficient, we may be required to limit our spending. All of our material borrowing arrangements are described in greater detail in Note H – Financing in the Notes to Condensed Consolidated Financial Statements. There were no significant changes to our contractual obligations as described in our Annual Report on Form 10-K for the year ended August 31, 2024.

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For the twelve week periods ended November 23, 2024, and November 18, 2023, our net cash flows from operating activities provided $811.8 million and $830.3 million, respectively.

Our net cash flows used in investing activities for the twelve weeks ended November 23, 2024, were $265.7 million as compared with $270.5 million in the comparable prior year period. Capital expenditures for the twelve weeks ended November 23, 2024, were $247.0 million compared to $235.4 million in the comparable prior year period. The increase in capital expenditures was primarily driven by our growth initiatives, including new stores, and hub and mega hub store expansion projects. During the twelve weeks ended November 23, 2024, and November 18, 2023, we opened 34 and 25 net new stores, respectively. Investing cash flows were impacted by our wholly owned captive, which purchased $12.3 million and $4.1 million, and sold $12.6 million and $1.9 million in marketable debt securities during the twelve weeks ended November 23, 2024 and the comparable prior year period, respectively. Our investment in tax credit equity investments was $31.0 million during the twelve weeks ended November 23, 2024, compared to $41.2 million during the comparable prior year period.

Our net cash flows used in financing activities for the twelve weeks ended November 23, 2024, were $538.1 million compared to $552.2 million in the comparable prior year period. During the twelve weeks ended November 23, 2024, we had no debt issuances compared to $1.0 billion in debt issuances received in the comparable prior year period. Stock repurchases were $540.1 million in the current twelve week period as compared with $1.5 billion in the comparable prior year period. The treasury stock repurchases were primarily funded by cash flows from operations. For the twelve week period ended November 23, 2024, and the comparable prior year period, we had $15.0 million and $76.9 million in net repayments of commercial paper, respectively. Proceeds from the sale of common stock and exercises of stock options for the twelve weeks ended November 23, 2024, and November 18, 2023, provided $36.0 million and $41.4 million, respectively.

During fiscal 2025, we expect to increase the investment in our business as compared to fiscal 2024. Our investments are expected to be directed primarily to our growth initiatives, which include new stores, new distribution centers, and hub and mega hub store expansion projects. The amount of investments in our new stores is impacted by different factors, including whether the building and land are purchased (requiring higher investment) or leased (generally lower investment) and whether such buildings are located in the U.S., Mexico or Brazil, or located in urban or rural areas.

In addition to the building and land costs, our new stores require working capital, predominantly for inventories. Historically, we have negotiated extended payment terms from suppliers, reducing the working capital required and resulting in a high accounts payable to inventory ratio. We plan to continue leveraging our inventory purchases; however, our ability to do so may be limited by our suppliers’ ability to factor their receivables from us. The Company has arrangements with third-party financial institutions to confirm invoice balances owed by the Company to certain suppliers and pay the financial institutions the confirmed amounts on the invoice due dates. These arrangements allow the Company’s inventory suppliers, at their sole discretion, to enter into agreements with these financial institutions to finance the Company’s obligations to the suppliers at terms negotiated between the suppliers and the financial institutions. Supplier participation is optional and our obligations to our suppliers, including the amount and dates due, are not impacted by our suppliers’ decision to enter into an agreement with a third-party financial institution. A downgrade in our credit or changes in the financial markets could limit the financial institutions’ and our suppliers’ willingness to participate in these arrangements; however, we do not believe such risk would have a material impact on our working capital or cash flows. We plan to continue negotiating extended terms with our suppliers, benefitting our working capital and resulting in a high accounts payable to inventory ratio. We had an accounts payable to inventory ratio of 119.5% at November 23, 2024, and 124.4% at November 18, 2023.

Depending on the timing and magnitude of our future investments (either in the form of leased or purchased properties or acquisitions), we anticipate that we will rely primarily on internally generated funds and available borrowing capacity to support a majority of our capital expenditures, working capital requirements and stock repurchases. The balance may be funded through new borrowings. We anticipate that we will be able to obtain such financing based on our current credit ratings and favorable experiences in the debt markets in the past.

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For the trailing four quarters ended November 23, 2024, our adjusted after-tax return on invested capital (“ROIC”), which is a non-GAAP measure, was 47.7% as compared to 55.0% for the comparable prior year period. Adjusted ROIC is calculated as after-tax operating profit (excluding rent charges) divided by invested capital (which includes a factor to capitalize operating leases). We use adjusted ROIC to evaluate whether we are effectively using our capital resources and believe it is an important indicator of our overall operating performance. Refer to the “Reconciliation of Non-GAAP Financial Measures” section for further details of our calculation.

Our adjusted debt to earnings before interest, taxes, depreciation, amortization, rent and share-based compensation expense (“EBITDAR”) ratio as of November 23, 2024, and November 18, 2023, was 2.5:1. We calculate adjusted debt as the sum of total debt, financing lease liabilities and rent times six; and we calculate EBITDAR by adding interest, taxes, depreciation, amortization, rent, and share-based compensation expense to net income. Adjusted debt to EBITDAR is calculated on a trailing four quarter basis. We target our debt levels to a ratio of adjusted debt to EBITDAR in order to maintain our investment grade credit ratings. We believe this is important information for the management of our debt levels. To the extent EBITDAR increases, we expect our debt levels to increase; conversely, if EBITDAR decreases, we would expect our debt levels to decrease. Refer to the “Reconciliation of Non-GAAP Financial Measures” section for further details of our calculation.

Debt Facilities

On November 15, 2024, we amended the Revolving Credit Agreement, extending the termination date by one year. As amended, the Revolving credit agreement will terminate, and all amounts borrowed will be due and payable, on November 15, 2028.

The Senior Notes contain a provision that repayment may be accelerated if we experience both a change of control and a rating event (both as defined in the agreements). Our borrowings under our Senior Notes contain minimal covenants, primarily restrictions on liens. All of the repayment obligations under our borrowing arrangements may be accelerated and come due prior to the scheduled payment date if covenants are breached or an event of default occurs. As of November 23, 2024, we were in compliance with all covenants and expect to remain in compliance with all covenants under our borrowing arrangements.

See Note H – Financing in the Notes to the Condensed Consolidated Financial Statements for additional information concerning our revolving credit agreement, outstanding letters of credit, surety bonds commitment and Senior Notes.

Stock Repurchases

See Note I – Stock Repurchase Program in the Notes to the Condensed Consolidated Financial Statements for information on our share repurchases.

Reconciliation of Non-GAAP Financial Measures

Management’s Discussion and Analysis of Financial Condition and Results of Operations includes certain financial measures not derived in accordance with GAAP, including Adjusted After-Tax ROIC and Adjusted Debt to EBITDAR. Non-GAAP financial measures should not be used as a substitute for GAAP financial measures, or considered in isolation, for the purpose of analyzing our operating performance, financial position or cash flows. However, we have presented non-GAAP financial measures, as we believe they provide additional information that is useful to investors. Additionally, our management uses these non-GAAP financial measures to review and assess our underlying operating results and the Compensation Committee of the Board uses select measures to determine payments of performance-based compensation against pre-established targets.

Adjusted After-Tax ROIC and Adjusted Debt to EBITDAR provide additional information for determining our optimal capital structure and are used to assist management in evaluating performance and in making appropriate business decisions to maximize stockholders’ value.

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We have included reconciliations of this information to the most comparable GAAP measures in the following reconciliation tables.

Reconciliation of Non-GAAP Financial Measure: Adjusted After-Tax ROIC

The following tables calculate the percentages of adjusted ROIC for the trailing four quarters ended November 23, 2024, and November 18, 2023.


	A		B		A-B=C		D		C+D
	Fiscal Year		Twelve		Forty-One		Twelve		Trailing Four
	Ended		Weeks Ended		Weeks Ended		Weeks Ended		Quarters Ended
	August 31,		November 18,		August 31,		November 23,		November 23,
(in thousands, except percentage)	2024		2023		2024		2024		2024

Net income	$	2,662,427	$	593,463	$	2,068,964	$	564,933	$	2,633,897
Adjustments:
Interest expense		451,578		91,384		360,194		107,629		467,823
Rent expense⁽¹⁾		447,693		98,693		349,000		105,189		454,189
Tax effect⁽²⁾		(184,351)		(38,966)		(145,385)		(43,628)		(189,013)
Adjusted after-tax return	$	3,377,347	$	744,574	$	2,632,773	$	734,123	$	3,366,896

Average debt⁽³⁾									$	8,849,457
Average stockholders’ deficit⁽³⁾										(4,862,353)
Add: Rent x 6⁽¹⁾										2,725,134
Average finance lease liabilities⁽³⁾										349,471
Invested capital									$	7,061,709

Adjusted after-tax ROIC										47.7%


	A		B		A-B=C		D		C+D
	Fiscal Year		Twelve		Forty		Twelve		Trailing Four
	Ended		Weeks Ended		Weeks Ended		Weeks Ended		Quarters Ended
	August 26,		November 19,		August 26,		November 18,		November 18,
(in thousands, except percentage)	2023		2022		2023		2023		2023

Net income	$	2,528,426	$	539,318	$	1,989,108	$	593,463	$	2,582,571
Adjustments:
Interest expense		306,372		57,723		248,649		91,384		340,033
Rent expense⁽¹⁾		406,398		92,881		313,517		98,693		412,210
Tax effect⁽²⁾		(148,256)		(31,326)		(116,930)		(39,536)		(156,466)
Adjusted after-tax return	$	3,092,940	$	658,596	$	2,434,344	$	744,004	$	3,178,348

Average debt⁽³⁾									$	7,392,640
Average stockholders' deficit⁽³⁾										(4,377,447)
Add: Rent x 6⁽¹⁾										2,473,260
Average finance lease liabilities⁽³⁾										291,567
Invested capital									$	5,780,020

Adjusted after-tax ROIC										55.0%

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Reconciliation of Non-GAAP Financial Measure: Adjusted Debt to EBITDAR

The following tables calculate the ratio of adjusted debt to EBITDAR for the trailing four quarters ended November 23, 2024, and November 18, 2023.


	A		B		A-B=C		D		C+D
	Fiscal Year		Twelve		Forty-One		Twelve		Trailing Four
	Ended		Weeks Ended		Weeks Ended		Weeks Ended		Quarters Ended
	August 31,		November 18,		August 31,		November 23,		November 23,
(in thousands, except ratio)	2024		2023		2024		2024		2024

Net income	$	2,662,427	$	593,463	$	2,068,964	$	564,933	$	2,633,897
Add: Interest expense		451,578		91,384		360,194		107,629		467,823
Income tax expense		674,703		163,757		510,946		168,587		679,533
EBIT		3,788,708		848,604		2,940,104		841,149		3,781,253
Add: Depreciation and amortization expense		549,755		120,224		429,531		133,173		562,704
Rent expense⁽¹⁾		447,693		98,693		349,000		105,189		454,189
Share-based expense		106,246		22,913		83,333		26,117		109,450
EBITDAR	$	4,892,402	$	1,090,434	$	3,801,968	$	1,105,628	$	4,907,596

Debt									$	9,012,539
Financing lease liabilities										388,847
Add: Rent x 6⁽¹⁾										2,725,134
Adjusted debt									$	12,126,520

Adjusted debt to EBITDAR										2.5


	A		B		A-B=C		D		C+D
	Fiscal Year		Twelve		Forty		Twelve		Trailing Four
	Ended		Weeks Ended		Weeks Ended		Weeks Ended		Quarters Ended
	August 26,		November 19,		August 26,		November 18,		November 18,
(in thousands, except ratio)	2023		2022		2023		2023		2023

Net income	$	2,528,426	$	539,318	$	1,989,108	$	593,463	$	2,582,571
Add: Interest expense		306,372		57,723		248,649		91,384		340,033
Income tax expense		639,188		125,992		513,196		163,757		676,953
EBIT		3,473,986		723,033		2,750,953		848,604		3,599,557
Add: Depreciation and amortization expense		497,577		109,253		388,324		120,224		508,548
Rent expense⁽¹⁾		406,398		92,881		313,517		98,693		412,210
Share-based expense		93,087		19,005		74,082		22,913		96,995
EBITDAR	$	4,471,048	$	944,172	$	3,526,876	$	1,090,434	$	4,617,310

Debt									$	8,583,523
Financing lease liabilities										285,145
Add: Rent x 6⁽¹⁾										2,473,260
Adjusted debt									$	11,341,928

Adjusted debt to EBITDAR										2.5

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(1)	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 trailing four quarters ended November 23, 2024, and November 18, 2023.


	Trailing Four Quarters Ended
(in thousands)	November 23, 2024		November 18, 2023

Total lease cost, per ASC 842	$	602,034	$	536,217
Less: Finance lease interest and amortization		(108,665)		(90,864)
Less: Variable operating lease components, related to insurance and common area maintenance		(39,180)		(33,143)
Rent expense	$	454,189	$	412,210

(2)	Effective tax rate over trailing four quarters ended November 23, 2024, and November 18, 2023, was 20.5% and 20.8%, respectively.

(3)	All averages are computed based on trailing five quarter balances.

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Recent Accounting Pronouncements

Refer to Note A in the Notes to Condensed Consolidated Financial Statements for the discussion of recent accounting pronouncements.

Critical Accounting Estimates

Our critical accounting estimates are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended August 31, 2024. There have been no significant changes to our critical accounting estimates since the filing of our Annual Report on Form 10-K for the year ended August 31, 2024.

Item 3.Quantitative and Qualitative Disclosures about Market Risk

At November 23, 2024, the only material change to our instruments and positions that are sensitive to market risk since the disclosures in our Annual Report on Form 10-K for the year ended August 31, 2024 was the $15.0 million net decrease in commercial paper.

The fair value of the Company’s debt was estimated at $8.9 billion as of November 23, 2024, and $9.0 billion as of August 31, 2024, based on the quoted market prices for the same or similar issues or on the current rates available to the Company for debt of the same terms (Level 2). Such fair value is less than the carrying value of debt by $120.8 million and greater than the carrying value of debt by $3.5 million at November 23, 2024, and August 31, 2024, respectively, which reflects their face amount, adjusted for any unamortized debt issuance costs and discounts. We had $565.0 million of variable rate debt outstanding at November 23, 2024, and $580.0 million in variable rate debt outstanding at August 31, 2024. At these borrowing levels for variable rate debt, a one percentage point increase in interest rates would have had an unfavorable annual impact on our pre-tax earnings and cash flows of $5.7 million in fiscal 2025. The primary interest rate exposure is based on the federal funds rate. We had outstanding fixed rate debt of $8.4 billion, net of unamortized debt issuance costs of $52.5 million at November 23, 2024, and $8.4 billion, net of unamortized debt issuance costs of $55.6 million at August 31, 2024. A one percentage point increase in interest rates would have reduced the fair value of our fixed rate debt by $344.5 million at November 23, 2024.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of November 23, 2024, an evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as amended. Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective as of November 23, 2024.

Changes in Internal Controls

There were no changes in our internal control over financial reporting that occurred during the quarter ended November 23, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

As of the date of this filing, there have been no additional material legal proceedings or material developments in the legal proceedings disclosed in Part 1, Item 3, of our Annual Report in Form 10-K for the fiscal year ended August 31, 2024.

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Item 1A. Risk Factors

As of the date of this filing, there have been no material changes in our risk factors from those disclosed in Part I, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended August 31, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Shares of common stock repurchased by the Company during the quarter ended November 23, 2024, were as follows:

Issuer Repurchases of Equity Securities


				Total Number of	Maximum Dollar
				Shares Purchased as	Value that May Yet
	Total Number	Average		Part of Publicly	Be Purchased Under
	of Shares	Price Paid		Announced Plans or	the Plans or
Period	Purchased	per Share		Programs	Programs

September 1, 2024 to September 28, 2024	8,279	$	3,168.11	8,279	$	2,137,740,614
September 29, 2024 to October 26, 2024	78,666		3,166.82	78,666		1,888,619,284
October 27, 2024 to November 23, 2024	73,136		3,142.97	73,136		1,658,755,024
Total	160,081	$	3,155.99	160,081	$	1,658,755,024

For more information on our stock repurchases, see Note I – Stock Repurchase Program in the Notes to the Condensed Consolidated Financial Statements.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Insider Trading Arrangements

During our fiscal quarter ended November 23, 2024, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” (as such terms are defined in Item 408 of Regulation S-K).

Item 6. Exhibits

The following exhibits are being filed herewith:

		Restated Articles of Incorporation of AutoZone, Inc. Incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended February 13, 1999.
3.1		Restated Articles of Incorporation of AutoZone, Inc. Incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended February 13, 1999.

3.2		Eighth Amended and Restated By-Laws of AutoZone, Inc. Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K dated March 23, 2023.
10.1**		Master Extension Agreement, dated November 15, 2024, among AutoZone, Inc. as borrower, the lenders party thereto, Bank of America, N.A., as administrative agent, and JPMorgan Chase Bank, N.A., as syndication agent.
15.1*		Letter Regarding Unaudited Interim Financial Statements.

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31.1*		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*		Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*		Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101. INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		The cover page for the Company’s Quarterly Report on Form 10-Q for the quarter ended November 23, 2024, has been formatted in Inline XBRL.

*	Furnished herewith.

**	Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	AUTOZONE, INC.

	By:	/s/ Jamere Jackson
	Jamere Jackson
	Chief Financial Officer
	(Principal Financial Officer)


	By:	/s/ J. Scott Murphy
	J. Scott Murphy
	Vice President, Controller (Principal Accounting Officer)

Dated: December 20, 2024

EXHIBIT 10.1

Exhibit 15.1

To the Stockholders and Board of Directors of

AutoZone, Inc.

We are aware of the incorporation by reference in the following Registration Statements:

Registration Statement (Form S-8 No. 333-139559) pertaining to the AutoZone, Inc. 2006 Stock Option Plan

Registration Statement (Form S-8 No. 333-103665) pertaining to the AutoZone, Inc. 2003 Director Compensation Award Plan

Registration Statement (Form S-8 No. 333-42797) pertaining to the AutoZone, Inc. Amended and Restated Employee Stock Purchase Plan

Registration Statement (Form S-8 No. 333-88241) pertaining to the AutoZone, Inc. Amended and Restated Director Compensation Plan

Registration Statement (Form S-8 No. 333-75140) pertaining to the AutoZone, Inc. Executive Stock Purchase Plan

Registration Statement (Form S-8 No. 333-171186) pertaining to the AutoZone, Inc. 2011 Equity Incentive Award Plan

Registration Statement (Form S-3ASR No. 333-180768) pertaining to a shelf registration to sell debt securities

Registration Statement (Form S-3ASR No. 333-203439) pertaining to a shelf registration to sell debt securities

Registration Statement (Form S-3ASR No. 333-230719) pertaining to a shelf registration to sell debt securities

Registration Statement (Form S-8 No. 333-251506) pertaining to the AutoZone, Inc. 2020 Omnibus Incentive Award Plan

Registration Statement (Form S-3ASR No. 333-266209) pertaining to a shelf registration to sell debt securities;

and in the related Prospectuses of our report dated December 20, 2024, relating to the unaudited condensed consolidated interim financial statements of AutoZone, Inc. that are included in its Form 10-Q for the quarter ended November 23, 2024.

/s/ Ernst & Young LLP

Memphis, Tennessee

December 20, 2024

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Phillip B. Daniele, III, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of AutoZone, Inc. (“registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


December 20, 2024

	/s/ PHILIP B. DANIELE, III
	Philip B. Daniele, III
	President and Chief Executive Officer
	(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jamere Jackson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of AutoZone, Inc. (“registrant”);

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

une
December 20, 2024

	/s/ JAMERE JACKSON
	Jamere Jackson
	Chief Financial Officer
	(Principal Financial Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AutoZone, Inc. (the “Company”) on Form 10-Q for the period ended November 23, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Philip B. Daniele, III, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i) the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


December 20, 2024

	/s/ PHILIP B. DANIELE, III
	Philip B. Daniele, III
	President and Chief Executive Officer
	(Principal Executive Officer)

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AutoZone, Inc. (the “Company”) on Form 10-Q for the period ended November 23, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jamere Jackson, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)

the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


December 20, 2024

	/s/ JAMERE JACKSON
	Jamere Jackson
	Chief Financial Officer
	(Principal Financial Officer)

Cover Page - shares	3 Months Ended
Cover Page - shares	Nov. 23, 2024	Dec. 13, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Nov. 23, 2024
Securities Act File Number	1-10714
Entity Registrant Name	AUTOZONE INC
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	62-1482048
Entity Address, Address Line One	123 South Front Street
Entity Address, City or Town	Memphis
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	38103
City Area Code	901
Local Phone Number	495-6500
Title of 12(b) Security	Common Stock
Trading Symbol	AZO
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,782,160
Current Fiscal Year End Date	--08-30
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000866787
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Nov. 23, 2024	Aug. 31, 2024
Current assets:
Cash and cash equivalents	$ 304,018	$ 298,172
Accounts receivable	533,485	545,575
Merchandise inventories	6,274,070	6,155,218
Other current assets	308,977	307,794
Total current assets	7,420,550	7,306,759
Property and equipment:
Property and equipment	11,489,436	11,305,125
Less: Accumulated depreciation and amortization	(5,208,333)	(5,121,586)
Property and equipment, net	6,281,103	6,183,539
Operating lease right-of-use assets	3,086,857	3,057,780
Goodwill	302,645	302,645
Deferred income taxes	79,400	83,689
Other long-term assets	295,207	242,126
Total long-term assets	3,764,109	3,686,240
Total assets	17,465,762	17,176,538
Current liabilities:
Accounts payable	7,498,696	7,355,701
Current portion of operating lease liabilities	270,077	266,855
Accrued expenses and other	1,034,313	1,060,746
Income taxes payable	85,484	30,941
Total current liabilities	8,888,570	8,714,243
Long-term debt	9,012,539	9,024,381
Operating lease liabilities, less current portion	2,982,977	2,960,174
Deferred income taxes	496,003	447,067
Other long-term liabilities	758,594	780,287
Commitments and contingencies
Stockholders' deficit:
Preferred stock, authorized 1,000 shares; no shares issued
Common stock, par value $.01 per share, authorized 200,000 shares; 17,495 shares issued and 16,810 shares outstanding as of November 23, 2024; 17,451 shares issued and 16,926 shares outstanding as of August 31, 2024	175	175
Additional paid-in capital	1,684,064	1,621,553
Retained deficit	(3,860,049)	(4,424,982)
Accumulated other comprehensive loss	(407,155)	(361,618)
Treasury stock, at cost	(2,089,956)	(1,584,742)
Total stockholders' deficit	(4,672,921)	(4,749,614)
Total liabilities and stockholders' deficit	$ 17,465,762	$ 17,176,538

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Nov. 23, 2024	Aug. 31, 2024
Preferred Stock
Preferred stock, shares authorized	1,000	1,000
Preferred stock, shares issued	0	0
Common Stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	17,495	17,451
Common stock, shares outstanding	16,810	16,926

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Nov. 23, 2024	Nov. 18, 2023
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Net sales	$ 4,279,641	$ 4,190,277
Cost of sales, including warehouse and delivery expenses	2,011,584	1,976,261
Gross profit	2,268,057	2,214,016
Operating, selling, general and administrative expenses	1,426,908	1,365,412
Operating profit	841,149	848,604
Interest expense, net	107,629	91,384
Income before income taxes	733,520	757,220
Income tax expense	168,587	163,757
Net income	$ 564,933	$ 593,463
Weighted average shares for basic earnings per share	16,913	17,709
Effect of dilutive stock equivalents	457	525
Weighted average shares for diluted earnings per share	17,370	18,234
Basic earnings per share	$ 33.4	$ 33.51
Diluted earnings per share	$ 32.52	$ 32.55

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Nov. 23, 2024	Nov. 18, 2023
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 564,933	$ 593,463
Other comprehensive (loss) income:
Foreign currency translation adjustments	(44,989)	(20,221)
Unrealized (losses) gains on marketable debt securities, net of taxes	(952)	295
Net derivative activities, net of taxes	404	403
Total other comprehensive loss	(45,537)	(19,523)
Comprehensive income	$ 519,396	$ 573,940

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Nov. 23, 2024	Nov. 18, 2023
Cash flows from operating activities:
Net income	$ 564,933	$ 593,463
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	133,173	120,224
Other non-cash income		(2,000)
Amortization of debt origination fees	3,018	2,810
Deferred income taxes	(4,831)	882
Share-based compensation expense	26,117	22,913
Changes in operating assets and liabilities:
Accounts receivable	9,873	6,856
Merchandise inventories	(136,181)	(21,899)
Accounts payable and accrued expenses	170,032	33,762
Income taxes	103,019	96,793
Other, net	(57,350)	(23,545)
Net cash provided by operating activities	811,803	830,259
Cash flows from investing activities:
Capital expenditures	(247,035)	(235,428)
Purchase of marketable debt securities	(12,311)	(4,115)
Proceeds from sale of marketable debt securities	12,614	1,944
Investment in tax credit equity investments	(31,018)	(41,150)
Proceeds from disposal of capital assets and other, net	12,001	8,235
Net cash used in investing activities	(265,749)	(270,514)
Cash flows from financing activities:
Net payments of commercial paper	(15,000)	(76,900)
Proceeds from issuance of debt		1,000,000
Net proceeds from sale of common stock	36,002	41,448
Purchase of treasury stock	(540,086)	(1,486,876)
Repayment of principal portion of finance lease liabilities	(23,106)	(20,202)
Other, net	4,094	(9,696)
Net cash used in financing activities	(538,096)	(552,226)
Effect of exchange rate changes on cash	(2,112)	(1,592)
Net increase in cash and cash equivalents	5,846	5,927
Cash and cash equivalents at beginning of period	298,172	277,054
Cash and cash equivalents at end of period	$ 304,018	$ 282,981

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Deficit	Accumulated Other Comprehensive Loss	Treasury Stock	Total
Balance at Aug. 26, 2023	$ 189	$ 1,484,992	$ (2,959,278)	$ (190,836)	$ (2,684,961)	$ (4,349,894)
Balance, shares at Aug. 26, 2023	18,936
Net income			593,463			593,463
Total other comprehensive loss				(19,523)		(19,523)
Purchase of treasury stock					(1,501,236)	(1,501,236)
Issuance of common stock under stock options and stock purchase plans	$ 1	41,447				41,448
Issuance of common stock under stock options and stock purchase plans, shares	48
Share-based compensation expense		22,071				22,071
Balance at Nov. 18, 2023	$ 190	1,548,510	(2,365,815)	(210,359)	(4,186,197)	(5,213,671)
Balance, shares at Nov. 18, 2023	18,984
Balance at Aug. 31, 2024	$ 175	1,621,553	(4,424,982)	(361,618)	(1,584,742)	(4,749,614)
Balance, shares at Aug. 31, 2024	17,451
Net income			564,933			564,933
Total other comprehensive loss				(45,537)		(45,537)
Purchase of treasury stock					(505,214)	(505,214)
Issuance of common stock under stock options and stock purchase plans		36,002				36,002
Issuance of common stock under stock options and stock purchase plans, shares	44
Share-based compensation expense		26,509				26,509
Balance at Nov. 23, 2024	$ 175	$ 1,684,064	$ (3,860,049)	$ (407,155)	$ (2,089,956)	$ (4,672,921)
Balance, shares at Nov. 23, 2024	17,495

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Parenthetical) - shares	3 Months Ended		323 Months Ended
	Nov. 23, 2024	Nov. 18, 2023	Nov. 23, 2024
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
Purchase of treasury stock, shares	160,100	580,000	155,300,000

General

3 Months Ended

Nov. 23, 2024

General

General

Note A – General

Recently Issued Accounting Pronouncements

Merchandise Inventories

3 Months Ended

Nov. 23, 2024

Merchandise Inventories

Merchandise Inventories

Note B – Merchandise Inventories

Variable Interest Entities

3 Months Ended

Nov. 23, 2024

Variable Interest Entities

Variable Interest Entities

Note C – Variable Interest Entities

Fair Value Measurements

3 Months Ended

Nov. 23, 2024

Fair Value Measurements

Fair Value Measurements

Note D – Fair Value Measurements

Level 1 inputs—unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date.

Level 2 inputs—inputs other than quoted market prices included within Level 1 that are observable, either directly or indirectly, for the asset or liability.

Marketable Debt Securities Measured at Fair Value on a Recurring Basis

The Company’s marketable debt securities measured at fair value on a recurring basis were as follows:


	November 23, 2024
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	21,486	$	12,849	$	—	$	34,335
Other long-term assets		31,153		55,155		—		86,308
	$	52,639	$	68,004	$	—	$	120,643


	August 31, 2024
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	26,697	$	11,734	$	—	$	38,431
Other long-term assets		27,031		56,696		—		83,727
	$	53,728	$	68,430	$	—	$	122,158

Financial Instruments not Recognized at Fair Value

Marketable Debt Securities

3 Months Ended

Nov. 23, 2024

Marketable Debt Securities

Marketable Debt Securities

Note E – Marketable Debt Securities

The Company’s available-for-sale marketable debt securities consisted of the following:


	November 23, 2024
	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
(in thousands)	Basis		Gains		Losses		Value

Corporate debt securities	$	34,366	$	57	$	(243)	$	34,180
Government bonds		50,628		274		(714)		50,188
Mortgage-backed securities		22,014		59		(279)		21,794
Asset-backed securities and other		14,481		34		(34)		14,481
	$	121,489	$	424	$	(1,270)	$	120,643


	August 31, 2024
	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
(in thousands)	Basis		Gains		Losses		Value

Corporate debt securities	$	32,355	$	183	$	(78)	$	32,460
Government bonds		50,251		483		(493)		50,241
Mortgage-backed securities		22,859		326		(95)		23,090
Asset-backed securities and other		16,327		66		(26)		16,367
	$	121,792	$	1,058	$	(692)	$	122,158

The contractual maturities of the Company’s available for sale marketable debt securities are as follows:


	November 23, 2024
	Amortized		Fair
(in thousands)	Cost Basis		Value

Due within one year	$	35,904	$	34,335
Due after one year through five years		50,134		51,471
Due after five years through ten years		18,540		18,085
Due after ten years		16,911		16,752
	$	121,489	$	120,643

Supplier Financing Programs

3 Months Ended

Nov. 23, 2024

Supplier Financing Programs

Supplier Financing Programs

Note F – Supplier Financing Programs

Litigation

3 Months Ended

Nov. 23, 2024

Litigation

Litigation

Note G – Litigation

Financing

3 Months Ended

Nov. 23, 2024

Financing

Financing

Note H – Financing

The Company’s debt consisted of the following:


	November 23,		August 31,
(in thousands)	2024		2024

3.250% Senior Notes due April 2025, effective interest rate 3.36%	$	400,000	$	400,000
3.625% Senior Notes due April 2025, effective interest rate 3.78%		500,000		500,000
3.125% Senior Notes due April 2026, effective interest rate 3.28%		400,000		400,000
5.050% Senior Notes due July 2026, effective interest rate 5.09%		450,000		450,000
3.750% Senior Notes due June 2027, effective interest rate 3.83%		600,000		600,000
4.500% Senior Notes due February 2028, effective interest rate 4.43%		450,000		450,000
6.250% Senior Notes due November 2028, effective interest rate 6.46%		500,000		500,000
3.750% Senior Notes due April 2029, effective interest rate 3.86%		450,000		450,000
5.100% Senior Notes due July 2029, effective interest rate 5.30%		600,000		600,000
4.000% Senior Notes due April 2030, effective interest rate 4.09%		750,000		750,000
1.650% Senior Notes due January 2031, effective interest rate 2.19%		600,000		600,000
4.750% Senior Notes due August 2032, effective interest rate 4.76%		750,000		750,000
4.750% Senior Notes due February 2033, effective interest rate 4.70%		550,000		550,000
5.200% Senior Notes due August 2033, effective interest rate 5.22%		300,000		300,000
6.550% Senior Notes due November 2033, effective interest rate 6.71%		500,000		500,000
5.400% Senior Notes due July 2034, effective interest rate 5.54%		700,000		700,000
Commercial paper, weighted average interest rate 4.65% at November 23, 2024 and 5.40% at August 31, 2024		565,000		580,000
Total debt before discounts and debt issuance costs		9,065,000		9,080,000
Less: Discounts and debt issuance costs		52,461		55,619
Long-term debt	$	9,012,539	$	9,024,381

As of November 23, 2024, the Company had no outstanding borrowings and $1.7 million of outstanding letters of credit under the Revolving Credit Agreement.

As of November 23, 2024, the Company was in compliance with all covenants and expects to remain in compliance with all covenants under its borrowing arrangements.

Stock Repurchase Program

3 Months Ended

Nov. 23, 2024

Stock Repurchase Program

Stock Repurchase Program

Note I – Stock Repurchase Program

Subsequent to November 23, 2024, and through December 13, 2024, the Company has repurchased 38.2 thousand shares of its common stock at an aggregate cost of $123.2 million.

Accumulated Other Comprehensive Loss

3 Months Ended

Nov. 23, 2024

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

Note J – Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss includes foreign currency translation adjustments, unrealized (losses) gains on marketable debt securities, and net derivative activities.

Changes in Accumulated other comprehensive loss for the twelve week periods ended November 23, 2024, and November 18, 2023, consisted of the following:


			Net
	Foreign		Unrealized
	Currency		Gain (Loss)
(in thousands)	and Other⁽¹⁾		on Securities		Derivatives		Total

Balance at August 31, 2024	$	(351,272)	$	300	$	(10,646)	$	(361,618)
Other comprehensive loss before reclassifications⁽²⁾		(44,989)		(952)		—		(45,941)
Amounts reclassified from Accumulated other comprehensive loss⁽²⁾		—		—		404		404
Balance at November 23, 2024	$	(396,261)	$	(652)	$	(10,242)	$	(407,155)


			Net
	Foreign		Unrealized
	Currency		Gain (Loss)
(in thousands)	and Other⁽¹⁾		on Securities		Derivatives		Total

Balance at August 26, 2023	$	(176,557)	$	(1,851)	$	(12,428)	$	(190,836)
Other comprehensive (loss) income before reclassifications⁽²⁾		(20,221)		295		—		(19,926)
Amounts reclassified from Accumulated other comprehensive loss⁽²⁾		—		—		403		403
Balance at November 18, 2023	$	(196,778)	$	(1,556)	$	(12,025)	$	(210,359)

(1)	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.

(2)	Amounts shown are net of taxes/tax benefits.

Share-Based Payments

3 Months Ended

Nov. 23, 2024

Share-Based Payments

Share-Based Payments

Note K – Share-Based Payments

Stock Options:


	Twelve Weeks Ended
	November 23,		November 18,
	2024		2023

Expected price volatility	26	%	29	%
Risk-free interest rate	3.9	%	4.8	%
Weighted average expected lives (in years)	5.5		5.4
Forfeiture rate	7	%	7	%
Dividend yield	0	%	0	%

Restricted Stock Units:

Segment Reporting

3 Months Ended

Nov. 23, 2024

Segment Reporting

Segment Reporting

Note L – Segment Reporting

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
	November 23,		November 18,
(in thousands)	2024		2023

Net Sales
Auto Parts Stores	$	4,199,732	$	4,115,694
Other		79,909		74,583
Total	$	4,279,641	$	4,190,277

Segment Profit
Auto Parts Stores	$	2,220,608	$	2,170,025
Other		47,449		43,991
Gross profit		2,268,057		2,214,016
Operating, selling, general and administrative expenses		(1,426,908)		(1,365,412)
Interest expense, net		(107,629)		(91,384)
Income before income taxes	$	733,520	$	757,220

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Nov. 23, 2024	Nov. 18, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 564,933	$ 593,463

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Nov. 23, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

General (Policies)	3 Months Ended
General (Policies)	Nov. 23, 2024
General
Basis of Accounting	The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission’s (the “SEC”) rules and regulations. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. For further information, refer to the consolidated financial statements and related notes included in the AutoZone, Inc. (“AutoZone” or the “Company”) Annual Report on Form 10-K for the year ended August 31, 2024.
Fiscal Period	Operating results for the twelve weeks ended November 23, 2024, are not necessarily indicative of the results that may be expected for the full fiscal year ending August 30, 2025. Each of the first three quarters of AutoZone’s fiscal year consists of 12 weeks, and the fourth quarter consists of 16 or 17 weeks. The fourth quarter of fiscal 2025 has 16 weeks, and the fourth quarter of fiscal 2024 had 17 weeks.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280). The amendments in this ASU require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (CODM), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. This ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments in the update and existing segment disclosures in Topic 280. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company will adopt this standard beginning with our fiscal 2025 annual filing. The Company is currently evaluating these new disclosure requirements and the impact of adoption. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740). The amendments in this ASU are intended to enhance the transparency of income tax information by updating income tax disclosure requirements. The guidance is effective for public entities for annual periods beginning after December 15, 2024, and early adoption is permitted. The amendments in this ASU should be applied on a prospective basis; however, retrospective application is permitted. The Company will adopt this standard with our fiscal 2026 annual filing. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact. In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40). This ASU requires disclosure in the notes to financial statements, at each interim and annual reporting period, of specified information about certain costs and expenses including purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption. Also required is a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated. This ASU is effective for all public entities for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, and early adoption is permitted. This ASU should be applied either prospectively to financial statements issued after the effective date of this update or retrospectively to all prior periods presented in the financial statements. The Company will adopt this standard with our fiscal 2028 annual filing. The Company is currently evaluating these new disclosure requirements and the impact of adoption.

Fair Value Measurements (Tables)

3 Months Ended

Nov. 23, 2024

Fair Value Measurements

Company's Marketable Debt Securities measured at Fair Value on Recurring Basis

The Company’s marketable debt securities measured at fair value on a recurring basis were as follows:


	November 23, 2024
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	21,486	$	12,849	$	—	$	34,335
Other long-term assets		31,153		55,155		—		86,308
	$	52,639	$	68,004	$	—	$	120,643


	August 31, 2024
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	26,697	$	11,734	$	—	$	38,431
Other long-term assets		27,031		56,696		—		83,727
	$	53,728	$	68,430	$	—	$	122,158

Marketable Debt Securities (Tables)

3 Months Ended

Nov. 23, 2024

Marketable Debt Securities

Available-for-Sale Marketable Securities

The Company’s available-for-sale marketable debt securities consisted of the following:


	November 23, 2024
	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
(in thousands)	Basis		Gains		Losses		Value

Corporate debt securities	$	34,366	$	57	$	(243)	$	34,180
Government bonds		50,628		274		(714)		50,188
Mortgage-backed securities		22,014		59		(279)		21,794
Asset-backed securities and other		14,481		34		(34)		14,481
	$	121,489	$	424	$	(1,270)	$	120,643


	August 31, 2024
	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
(in thousands)	Basis		Gains		Losses		Value

Corporate debt securities	$	32,355	$	183	$	(78)	$	32,460
Government bonds		50,251		483		(493)		50,241
Mortgage-backed securities		22,859		326		(95)		23,090
Asset-backed securities and other		16,327		66		(26)		16,367
	$	121,792	$	1,058	$	(692)	$	122,158

Contractual maturities Available for Sale Marketable Debt Securities

The contractual maturities of the Company’s available for sale marketable debt securities are as follows:


	November 23, 2024
	Amortized		Fair
(in thousands)	Cost Basis		Value

Due within one year	$	35,904	$	34,335
Due after one year through five years		50,134		51,471
Due after five years through ten years		18,540		18,085
Due after ten years		16,911		16,752
	$	121,489	$	120,643

Financing (Tables)

3 Months Ended

Nov. 23, 2024

Financing

Schedule of Debt

The Company’s debt consisted of the following:


	November 23,		August 31,
(in thousands)	2024		2024

3.250% Senior Notes due April 2025, effective interest rate 3.36%	$	400,000	$	400,000
3.625% Senior Notes due April 2025, effective interest rate 3.78%		500,000		500,000
3.125% Senior Notes due April 2026, effective interest rate 3.28%		400,000		400,000
5.050% Senior Notes due July 2026, effective interest rate 5.09%		450,000		450,000
3.750% Senior Notes due June 2027, effective interest rate 3.83%		600,000		600,000
4.500% Senior Notes due February 2028, effective interest rate 4.43%		450,000		450,000
6.250% Senior Notes due November 2028, effective interest rate 6.46%		500,000		500,000
3.750% Senior Notes due April 2029, effective interest rate 3.86%		450,000		450,000
5.100% Senior Notes due July 2029, effective interest rate 5.30%		600,000		600,000
4.000% Senior Notes due April 2030, effective interest rate 4.09%		750,000		750,000
1.650% Senior Notes due January 2031, effective interest rate 2.19%		600,000		600,000
4.750% Senior Notes due August 2032, effective interest rate 4.76%		750,000		750,000
4.750% Senior Notes due February 2033, effective interest rate 4.70%		550,000		550,000
5.200% Senior Notes due August 2033, effective interest rate 5.22%		300,000		300,000
6.550% Senior Notes due November 2033, effective interest rate 6.71%		500,000		500,000
5.400% Senior Notes due July 2034, effective interest rate 5.54%		700,000		700,000
Commercial paper, weighted average interest rate 4.65% at November 23, 2024 and 5.40% at August 31, 2024		565,000		580,000
Total debt before discounts and debt issuance costs		9,065,000		9,080,000
Less: Discounts and debt issuance costs		52,461		55,619
Long-term debt	$	9,012,539	$	9,024,381

Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Nov. 23, 2024

Accumulated Other Comprehensive Loss

Changes in Accumulated Other Comprehensive Loss


			Net
	Foreign		Unrealized
	Currency		Gain (Loss)
(in thousands)	and Other⁽¹⁾		on Securities		Derivatives		Total

Balance at August 31, 2024	$	(351,272)	$	300	$	(10,646)	$	(361,618)
Other comprehensive loss before reclassifications⁽²⁾		(44,989)		(952)		—		(45,941)
Amounts reclassified from Accumulated other comprehensive loss⁽²⁾		—		—		404		404
Balance at November 23, 2024	$	(396,261)	$	(652)	$	(10,242)	$	(407,155)


			Net
	Foreign		Unrealized
	Currency		Gain (Loss)
(in thousands)	and Other⁽¹⁾		on Securities		Derivatives		Total

Balance at August 26, 2023	$	(176,557)	$	(1,851)	$	(12,428)	$	(190,836)
Other comprehensive (loss) income before reclassifications⁽²⁾		(20,221)		295		—		(19,926)
Amounts reclassified from Accumulated other comprehensive loss⁽²⁾		—		—		403		403
Balance at November 18, 2023	$	(196,778)	$	(1,556)	$	(12,025)	$	(210,359)

(1)	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.

(2)	Amounts shown are net of taxes/tax benefits.

Share-Based Payments (Tables)

3 Months Ended

Nov. 23, 2024

Share-Based Payments

Schedule of Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense


	Twelve Weeks Ended
	November 23,		November 18,
	2024		2023

Expected price volatility	26	%	29	%
Risk-free interest rate	3.9	%	4.8	%
Weighted average expected lives (in years)	5.5		5.4
Forfeiture rate	7	%	7	%
Dividend yield	0	%	0	%

Segment Reporting (Tables)

3 Months Ended

Nov. 23, 2024

Segment Reporting

Segment Results


	Twelve Weeks Ended
	November 23,		November 18,
(in thousands)	2024		2023

Net Sales
Auto Parts Stores	$	4,199,732	$	4,115,694
Other		79,909		74,583
Total	$	4,279,641	$	4,190,277

Segment Profit
Auto Parts Stores	$	2,220,608	$	2,170,025
Other		47,449		43,991
Gross profit		2,268,057		2,214,016
Operating, selling, general and administrative expenses		(1,426,908)		(1,365,412)
Interest expense, net		(107,629)		(91,384)
Income before income taxes	$	733,520	$	757,220

Merchandise Inventories (Detail) - USD ($) $ in Millions	Nov. 23, 2024	Aug. 31, 2024
Merchandise Inventories
LIFO credit reserve balance	$ 19.0	$ 19.0

Variable Interest Entities (Detail) - USD ($) $ in Millions	Nov. 23, 2024	Aug. 31, 2024
Variable Interest Entity Not Primary Beneficiary
Variable Interest Entities
Maximum exposure to losses amount	$ 84.9	$ 53.9

Fair Value Measurements - Company's Marketable Debt Securities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Nov. 23, 2024	Aug. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 120,643	$ 122,158
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current assets	34,335	38,431
Other long-term assets	86,308	83,727
Total	120,643	122,158
Level 1 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current assets	21,486	26,697
Other long-term assets	31,153	27,031
Total	52,639	53,728
Level 2 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current assets	12,849	11,734
Other long-term assets	55,155	56,696
Total	$ 68,004	$ 68,430

Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Nov. 23, 2024	Aug. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term marketable debt securities	$ 34,335	$ 38,431
Long-term marketable debt securities	$ 86,308	$ 83,727

Marketable Debt Securities - Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands	Nov. 23, 2024	Aug. 31, 2024
Schedule of Available-for-sale Securities [Line Items]
Total	$ 121,489	$ 121,792
Available-For-Sale Marketable Securities, Gross Unrealized Gains	424	1,058
Available-For-Sale Marketable Securities, Gross Unrealized Losses	(1,270)	(692)
Available-For-Sale Marketable Securities, Fair Value	120,643	122,158
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Total	34,366	32,355
Available-For-Sale Marketable Securities, Gross Unrealized Gains	57	183
Available-For-Sale Marketable Securities, Gross Unrealized Losses	(243)	(78)
Available-For-Sale Marketable Securities, Fair Value	34,180	32,460
Government bonds
Schedule of Available-for-sale Securities [Line Items]
Total	50,628	50,251
Available-For-Sale Marketable Securities, Gross Unrealized Gains	274	483
Available-For-Sale Marketable Securities, Gross Unrealized Losses	(714)	(493)
Available-For-Sale Marketable Securities, Fair Value	50,188	50,241
Mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Total	22,014	22,859
Available-For-Sale Marketable Securities, Gross Unrealized Gains	59	326
Available-For-Sale Marketable Securities, Gross Unrealized Losses	(279)	(95)
Available-For-Sale Marketable Securities, Fair Value	21,794	23,090
Asset-backed securities and other
Schedule of Available-for-sale Securities [Line Items]
Total	14,481	16,327
Available-For-Sale Marketable Securities, Gross Unrealized Gains	34	66
Available-For-Sale Marketable Securities, Gross Unrealized Losses	(34)	(26)
Available-For-Sale Marketable Securities, Fair Value	$ 14,481	$ 16,367

Marketable Debt Securities - Contractual Maturities of Available-for-Sale Marketable Debt Securities (Detail) - USD ($) $ in Thousands	Nov. 23, 2024	Aug. 31, 2024
Amortized Cost Basis
Due within one year	$ 35,904
Due after one year through five years	50,134
Due after five years through ten years	18,540
Due after ten years	16,911
Total	121,489	$ 121,792
Fair Value
Due within one year	34,335
Due after one year through five years	51,471
Due after five years through ten years	18,085
Due after ten years	16,752
Total	$ 120,643	$ 122,158

Marketable Debt Securities - Additional Information (Detail) $ in Thousands	Nov. 23, 2024 USD ($) security	Aug. 31, 2024 USD ($)
Marketable Debt Securities
Marketable securities held in trust	$ 111,500	$ 111,500
Number of securities available for sale loss position \| security	92
Available-For-Sale Marketable Securities, Gross Unrealized Losses	$ 1,270	$ 692

Supplier Financing Programs (Detail) - USD ($) $ in Millions	Nov. 23, 2024	Aug. 31, 2024
Supplier Financing Programs
Obligations outstanding under supplier financing arrangements, current	$ 5,000.0	$ 4,900.0
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration]	Accounts Payable, Current	Accounts Payable, Current
Obligations outstanding under supplier financing arrangements, noncurrent	$ 206.5	$ 226.7
Supplier Finance Program, Obligation, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent

Financing - Schedule of Debt (Detail) - USD ($) $ in Thousands	Nov. 23, 2024	Aug. 31, 2024
Debt Instrument [Line Items]
Total debt before discounts and debt issuance costs	$ 9,065,000	$ 9,080,000
Less: Discounts and debt issuance costs	52,461	55,619
Long-term debt	9,012,539	9,024,381
3.250% Senior Notes due April 2025, effective interest rate 3.36%
Debt Instrument [Line Items]
Senior notes	400,000	400,000
3.625% Senior Notes due April 2025, effective interest rate 3.78%
Debt Instrument [Line Items]
Senior notes	500,000	500,000
3.125% Senior Notes due April 2026, effective interest rate of 3.28%
Debt Instrument [Line Items]
Senior notes	400,000	400,000
5.050% Senior Notes due July 2026, effective interest rate 5.09%
Debt Instrument [Line Items]
Senior notes	450,000	450,000
3.750% Senior Notes due June 2027, effective interest rate of 3.83%
Debt Instrument [Line Items]
Senior notes	600,000	600,000
4.500% Senior Notes due February 2028, effective interest rate 4.43%
Debt Instrument [Line Items]
Senior notes	450,000	450,000
6.250% Senior Notes due November 2028, effective interest rate 6.46%
Debt Instrument [Line Items]
Senior notes	500,000	500,000
3.750% Senior Notes due April 2029, effective interest rate 3.86%
Debt Instrument [Line Items]
Senior notes	450,000	450,000
5.100% Senior Notes due July 2029, effective interest rate 5.30%
Debt Instrument [Line Items]
Senior notes	600,000	600,000
4.000% Senior Notes due April 2030, effective interest rate 4.09%
Debt Instrument [Line Items]
Senior notes	750,000	750,000
1.650% Senior Notes due January 2031, effective interest rate 2.19%
Debt Instrument [Line Items]
Senior notes	600,000	600,000
4.750% Senior Notes due August 2032, effective interest rate 4.76%
Debt Instrument [Line Items]
Senior notes	750,000	750,000
4.750% Senior Notes due February 2033, effective interest rate 4.70%
Debt Instrument [Line Items]
Senior notes	550,000	550,000
5.200% Senior Notes due August 2033, effective interest rate 5.22%
Debt Instrument [Line Items]
Senior notes	300,000	300,000
6.550% Senior Notes due November 2033, effective interest rate 6.71%
Debt Instrument [Line Items]
Senior notes	500,000	500,000
5.400% Senior Notes due July 2034, effective interest rate 5.54%
Debt Instrument [Line Items]
Senior notes	700,000	700,000
Commercial paper
Debt Instrument [Line Items]
Commercial paper	$ 565,000	$ 580,000

Financing - Schedule of Debt - Interest Rates And Maturity (Detail)	3 Months Ended	12 Months Ended
	Nov. 23, 2024	Aug. 31, 2024
3.250% Senior Notes due April 2025, effective interest rate 3.36%
Debt Instrument [Line Items]
Stated interest rate percentage	3.25%	3.25%
Debt instrument maturity, month and year	2025-04	2025-04
Effective interest rate	3.36%	3.36%
3.625% Senior Notes due April 2025, effective interest rate 3.78%
Debt Instrument [Line Items]
Stated interest rate percentage	3.625%	3.625%
Debt instrument maturity, month and year	2025-04	2025-04
Effective interest rate	3.78%	3.78%
3.125% Senior Notes due April 2026, effective interest rate of 3.28%
Debt Instrument [Line Items]
Stated interest rate percentage	3.125%	3.125%
Debt instrument maturity, month and year	2026-04	2026-04
Effective interest rate	3.28%	3.28%
5.050% Senior Notes due July 2026, effective interest rate 5.09%
Debt Instrument [Line Items]
Stated interest rate percentage	5.05%	5.05%
Debt instrument maturity, month and year	2026-07	2026-07
Effective interest rate	5.09%	5.09%
3.750% Senior Notes due June 2027, effective interest rate of 3.83%
Debt Instrument [Line Items]
Stated interest rate percentage	3.75%	3.75%
Debt instrument maturity, month and year	2027-06	2027-06
Effective interest rate	3.83%	3.83%
4.500% Senior Notes due February 2028, effective interest rate 4.43%
Debt Instrument [Line Items]
Stated interest rate percentage	4.50%	4.50%
Debt instrument maturity, month and year	2028-02	2028-02
Effective interest rate	4.43%	4.43%
6.250% Senior Notes due November 2028, effective interest rate 6.46%
Debt Instrument [Line Items]
Stated interest rate percentage	6.25%	6.25%
Debt instrument maturity, month and year	2028-11	2028-11
Effective interest rate	6.46%	6.46%
3.750% Senior Notes due April 2029, effective interest rate 3.86%
Debt Instrument [Line Items]
Stated interest rate percentage	3.75%	3.75%
Debt instrument maturity, month and year	2029-04	2029-04
Effective interest rate	3.86%	3.86%
5.100% Senior Notes due July 2029, effective interest rate 5.30%
Debt Instrument [Line Items]
Stated interest rate percentage	5.10%	5.10%
Debt instrument maturity, month and year	2029-07	2029-07
Effective interest rate	5.30%	5.30%
4.000% Senior Notes due April 2030, effective interest rate 4.09%
Debt Instrument [Line Items]
Stated interest rate percentage	4.00%	4.00%
Debt instrument maturity, month and year	2030-04	2030-04
Effective interest rate	4.09%	4.09%
1.650% Senior Notes due January 2031, effective interest rate 2.19%
Debt Instrument [Line Items]
Stated interest rate percentage	1.65%	1.65%
Debt instrument maturity, month and year	2031-01	2031-01
Effective interest rate	2.19%	2.19%
4.750% Senior Notes due August 2032, effective interest rate 4.76%
Debt Instrument [Line Items]
Stated interest rate percentage	4.75%	4.75%
Debt instrument maturity, month and year	2032-08	2032-08
Effective interest rate	4.76%	4.76%
4.750% Senior Notes due February 2033, effective interest rate 4.70%
Debt Instrument [Line Items]
Stated interest rate percentage	4.75%	4.75%
Debt instrument maturity, month and year	2033-02	2033-02
Effective interest rate	4.70%	4.70%
5.200% Senior Notes due August 2033, effective interest rate 5.22%
Debt Instrument [Line Items]
Stated interest rate percentage	5.20%	5.20%
Debt instrument maturity, month and year	2033-08	2033-08
Effective interest rate	5.22%	5.22%
6.550% Senior Notes due November 2033, effective interest rate 6.71%
Debt Instrument [Line Items]
Stated interest rate percentage	6.55%	6.55%
Debt instrument maturity, month and year	2033-11	2033-11
Effective interest rate	6.71%	6.71%
5.400% Senior Notes due July 2034, effective interest rate 5.54%
Debt Instrument [Line Items]
Stated interest rate percentage	5.40%	5.40%
Debt instrument maturity, month and year	2034-07	2034-07
Effective interest rate	5.54%	5.54%
Commercial paper
Debt Instrument [Line Items]
Weighted average interest rate of commercial paper	4.65%	5.40%

Financing - Additional Information (Detail) - USD ($) $ in Thousands	Nov. 15, 2024	Nov. 15, 2022	Nov. 23, 2024	Aug. 31, 2024	Nov. 15, 2021	Nov. 14, 2021
Debt Instrument [Line Items]
Remaining borrowing capacity under revolving credit agreement			$ 2,200,000
Fair value of the Company's debt			8,900,000	$ 9,000,000
Excess (shortfall) of fair value of debt over (from) carrying value			(120,800)	3,500
Surety Bond
Debt Instrument [Line Items]
Guarantee obligations			47,700	48,900
Revolving Credit Agreement
Debt Instrument [Line Items]
Amount available under credit facility					$ 2,250,000	$ 2,000,000
Maximum amount available under credit facility					$ 3,250,000	$ 2,250,000
Extended expiration of credit facility	1 year	1 year
Borrowings, outstanding			0
Letters of credit, outstanding			1,700
Swingline Loans
Debt Instrument [Line Items]
Maximum amount available under credit facility		$ 75,000
Individual Issuer, Letter of Credit
Debt Instrument [Line Items]
Maximum amount available under credit facility		50,000
Letter of Credit
Debt Instrument [Line Items]
Maximum amount available under credit facility		$ 250,000	25,000
Letters of credit, outstanding			141,600	141,600
Master Extension Agreement
Debt Instrument [Line Items]
Credit facility expiration date		Nov. 15, 2028
Revolving Credit Facility
Debt Instrument [Line Items]
Letters of credit, outstanding			0	0
Commercial paper
Debt Instrument [Line Items]
Commercial paper borrowings			565,000	580,000
3.250% Senior Notes due April 2025, effective interest rate 3.36%
Debt Instrument [Line Items]
Senior notes			$ 400,000	$ 400,000
Stated interest rate percentage			3.25%	3.25%
3.625% Senior Notes due April 2025, effective interest rate 3.78%
Debt Instrument [Line Items]
Senior notes			$ 500,000	$ 500,000
Stated interest rate percentage			3.625%	3.625%

Stock Repurchase Program - Additional Information (Detail) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		323 Months Ended
	Jun. 19, 2024	Dec. 13, 2024	Nov. 23, 2024	Nov. 18, 2023	Nov. 23, 2024
Stock Repurchase Program
Increase in authorization of stock repurchase, value	$ 1,500,000
Purchase of treasury stock, shares			160,100	580,000	155,300,000
Purchase of treasury stock			$ 505,214	$ 1,501,236	$ 37,500,000
Stock repurchase authorized	$ 39,200,000
Remaining value authorized for share repurchases			$ 1,700,000		$ 1,700,000
Subsequent Events
Stock Repurchase Program
Purchase of treasury stock, shares		38,200
Purchase of treasury stock		$ 123,200

Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended
	Nov. 23, 2024	Nov. 18, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ (4,749,614)	$ (4,349,894)
Balance	(4,672,921)	(5,213,671)
Foreign Currency
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(351,272)	(176,557)
Other comprehensive loss before reclassifications	(44,989)	(20,221)
Balance	(396,261)	(196,778)
Net Unrealized Gain (Loss) on Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	300	(1,851)
Other comprehensive loss before reclassifications	(952)	295
Balance	(652)	(1,556)
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(10,646)	(12,428)
Other comprehensive loss before reclassifications	0
Amounts reclassified from Accumulated other comprehensive loss	404	403
Balance	(10,242)	(12,025)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(361,618)	(190,836)
Other comprehensive loss before reclassifications	(45,941)	(19,926)
Amounts reclassified from Accumulated other comprehensive loss	404	403
Balance	$ (407,155)	$ (210,359)

Share-Based Payments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Nov. 23, 2024	Nov. 18, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted	118,813	130,723
Forfeiture rate	7.00%	7.00%
Weighted average grant date fair value of options granted	$ 1,020.28	$ 913.31
Stock options exercised - shares	41,085	44,644
Stock options exercised - weighted average exercise price	$ 872.81	$ 931.85
Unrecognized share-based compensation expense related to stock options, net of forfeitures	$ 196,700
Estimated weighted average period	3 years 3 months 18 days
Share-based compensation expense	$ 26,117	$ 22,913
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Anti-dilutive shares excluded from the computation of earnings per share	81,028	169,798
Share-Based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture rate	10.00%
Omnibus Incentive Award Plan 2020 \| Share-Based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture rate	0.00%
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated weighted average period	3 years 1 month 6 days
Service period	4 years
Restricted stock unit awards, number of shares granted	2,054	2,173
Restricted stock unit awards, granted, weighted average grant date fair value	$ 3,129.78	$ 2,549.04
Restricted stock unit awards, number of shares vested	2,529	3,741
Restricted stock unit awards, vested, weighted average grant date fair value	$ 1,716.43	$ 1,383.34
Non vested restricted stock unit award	$ 11,800
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option-vesting periods	4 years
Stock Options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option-vesting periods	4 years
Stock Options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option-vesting periods	5 years

Share-Based Payments - Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense (Detail)	3 Months Ended
	Nov. 23, 2024	Nov. 18, 2023
Share-Based Payments
Expected price volatility	26.00%	29.00%
Risk-free interest rate	3.90%	4.80%
Weighted average expected lives (in years)	5 years 6 months	5 years 4 months 24 days
Forfeiture rate	7.00%	7.00%
Dividend yield	0.00%	0.00%

Segment Reporting - Additional Information (Detail)	3 Months Ended
Segment Reporting - Additional Information (Detail)	Nov. 23, 2024 store segment
Segment Reporting Information [Line Items]
Number of reportable segments	1
Number of automotive parts and accessories locations in the United States, Mexico, and Brazil \| store	7,387
Other
Segment Reporting Information [Line Items]
Number of operating segments	2

Segment Reporting - Segment Results (Detail) - USD ($) $ in Thousands	3 Months Ended
	Nov. 23, 2024	Nov. 18, 2023
Segment Reporting Information [Line Items]
Net Sales	$ 4,279,641	$ 4,190,277
Gross profit	2,268,057	2,214,016
Operating, selling, general and administrative expenses	(1,426,908)	(1,365,412)
Interest expense, net	(107,629)	(91,384)
Income before income taxes	733,520	757,220
Auto Parts Stores
Segment Reporting Information [Line Items]
Net Sales	4,199,732	4,115,694
Gross profit	2,220,608	2,170,025
Other
Segment Reporting Information [Line Items]
Net Sales	79,909	74,583
Gross profit	$ 47,449	$ 43,991

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