0001193125-20-076091 | 10-Q | XBRL Viewer

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Cover Page - shares	6 Months Ended
Cover Page - shares	Feb. 15, 2020	Mar. 13, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 15, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Registrant Name	AUTOZONE INC
Entity Central Index Key	0000866787
Current Fiscal Year End Date	--08-29
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Trading Symbol	AZO
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock
Security Exchange Name	NYSE
Entity Address, State or Province	TN
Entity Common Stock, Shares Outstanding		23,352,430
City Area Code	901
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-10714
Local Phone Number	495-6500
Entity Address, Postal Zip Code	38103
Entity Tax Identification Number	62-1482048
Entity Address, Address Line One	123 South Front Street
Entity Address, City or Town	Memphis
Entity Incorporation, State or Country Code	NV

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Feb. 15, 2020	Aug. 31, 2019
Current assets:
Cash and cash equivalents	$ 152,970	$ 176,300
Accounts receivable	340,280	308,995
Merchandise inventories	4,606,211	4,319,113
Other current assets	201,086	224,277
Total current assets	5,300,547	5,028,685
Property and equipment:
Property and equipment	7,948,231	7,713,196
Less: Accumulated depreciation and amortization	(3,471,805)	(3,314,445)
Property and equipment, net	4,476,426	4,398,751
Operating lease right-of-use assets	2,579,217	0
Goodwill	302,645	302,645
Deferred income taxes	27,945	26,861
Other long-term assets	176,969	138,971
Other long-term assets, total	3,086,776	468,477
Assets	12,863,749	9,895,913
Current liabilities:
Accounts payable	4,869,914	4,864,912
Current portion of operating lease liabilities	234,506	0
Accrued expenses and other	632,343	621,932
Income taxes payable	42,797	25,297
Total current liabilities	5,779,560	5,512,141
Long-term debt	5,451,471	5,206,344
Operating lease liabilities, less current portion	2,494,840	0
Deferred income taxes	325,263	311,980
Other long-term liabilities	523,734	579,299
Commitments and contingencies
Stockholders' deficit:
Preferred stock, authorized 1,000 shares; no shares issued	0	0
Common stock, par value $.01 per share, authorized 200,000 shares; 23,653 shares issued and 23,488 shares outstanding as of February 15, 2020; 25,445 shares issued and 24,038 shares outstanding as of August 31, 2019	237	254
Additional paid-in capital	1,241,733	1,264,448
Retained deficit	(2,534,322)	(1,305,347)
Accumulated other comprehensive loss	(228,337)	(269,322)
Treasury stock, at cost	(190,430)	(1,403,884)
Total stockholders' deficit	(1,711,119)	(1,713,851)
Liabilities and Stockholders' Deficit	$ 12,863,749	$ 9,895,913

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Feb. 15, 2020	Aug. 31, 2019
Common Stock [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	23,653,000	25,445,000
Common stock, shares outstanding	23,488,000	24,038,000
Preferred Stock [Member]
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		5 Months Ended	6 Months Ended
	Feb. 15, 2020	Feb. 09, 2019	Feb. 09, 2019	Feb. 15, 2020
Income Statement [Abstract]
Net sales	$ 2,513,663	$ 2,450,568	$ 5,092,302	$ 5,306,700
Cost of sales, including warehouse and delivery expenses	1,147,600	1,125,461	2,349,721	2,439,569
Gross profit	1,366,063	1,325,107	2,742,581	2,867,131
Operating, selling, general and administrative expenses	958,125	925,087	1,854,742	1,959,170
Operating profit	407,938	400,020	887,839	907,961
Interest expense, net	44,335	41,362	80,369	88,078
Income before income taxes	363,603	358,658	807,470	819,883
Income tax expense	64,321	64,020	161,426	170,263
Net income	$ 299,282	$ 294,638	$ 646,044	$ 649,620
Weighted average shares for basic earnings per share	23,570	25,166	25,397	23,722
Effect of dilutive stock equivalents	590	477	473	604
Weighted average shares for diluted earnings per share	24,160	25,643	25,870	24,326
Basic earnings per share	$ 12.70	$ 11.71	$ 25.44	$ 27.38
Diluted earnings per share	$ 12.39	$ 11.49	$ 24.97	$ 26.70

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands

3 Months Ended

5 Months Ended

6 Months Ended

Feb. 15, 2020

Feb. 09, 2019

Feb. 15, 2020

Statement of Comprehensive Income [Abstract]

Net income

$ 299,282

$ 294,638

$ 646,044

$ 649,620

Other comprehensive income (loss):

Foreign currency translation adjustments

21,178

39,332

(1,241)

40,218

Unrealized gains (losses) on marketable debt securities, net of taxes

^[1]

178

508

431

(10)

Net derivative activities, net of taxes

^[2]

388

389

778

777

Total other comprehensive income (loss)

21,744

40,229

(32)

40,985

Comprehensive income

$ 321,026

$ 334,867

$ 646,012

$ 690,605

[1]	Unrealized gains on marketable debt securities are presented net of taxes of $47 in fiscal 2020 and $135 in fiscal 2019 for the twelve weeks ended. Unrealized losses on marketable securities are presented net of tax benefit of $3 in fiscal 2020, and unrealized gains on marketable securities are presented net of taxes of $115 in fiscal 2019 for the twenty-four weeks ended.
[2]	Net derivative activities are presented net of taxes of $120 in fiscal 2020 and fiscal 2019 for the twelve weeks ended and $240 for fiscal 2020 and fiscal 2019 for the twenty-four weeks ended.

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		5 Months Ended	6 Months Ended
	Feb. 15, 2020	Feb. 09, 2019	Feb. 09, 2019	Feb. 15, 2020
Unrealized gains (losses) on marketable debt securities, net of taxes	$ 47	$ 135	$ 115	$ 3
Net derivative activities, taxes	$ 120	$ 120	$ 240	$ 240

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	5 Months Ended	6 Months Ended
	Feb. 09, 2019	Feb. 15, 2020
Cash flows from operating activities:
Net income	$ 646,044	$ 649,620
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment and intangibles	166,230	180,420
Amortization of debt origination fees	3,668	4,216
Deferred income taxes	7,211	11,154
Share-based compensation expense	21,558	22,107
Changes in operating assets and liabilities:
Accounts receivable	(38,338)	(28,897)
Merchandise inventories	(364,392)	(262,234)
Accounts payable and accrued expenses	256,969	6,571
Income taxes payable	31,701	11,124
Other, net	86,418	57,563
Net cash provided by operating activities	817,069	651,644
Cash flows from investing activities:
Capital expenditures	(195,832)	(190,563)
Purchase of marketable debt securities	(21,054)	(56,347)
Proceeds from sale of marketable debt securities	34,531	70,812
Proceeds from disposal of capital assets and other, net	6,152	1,185
Net cash used in investing activities	(176,203)	(174,913)
Cash flows from financing activities:
Net proceeds from commercial paper	103,500	242,700
Net proceeds from sale of common stock	107,578	48,705
Purchase of treasury stock	(847,097)	(764,846)
Repayment of principal portion of finance lease liabilities	(25,529)	(29,324)
Net cash used in financing activities	(661,548)	(502,765)
Effect of exchange rate changes on cash	(1,477)	2,704
Net (decrease) in cash and cash equivalents	(22,159)	(23,330)
Cash and cash equivalents at beginning of period	217,824	176,300
Cash and cash equivalents at end of period	$ 195,665	$ 152,970

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]
Balance at Aug. 25, 2018	$ (1,520,355)	$ 275	$ 1,155,426	$ (1,208,824)	$ (235,805)	$ (1,231,427)
Balance, Shares at Aug. 25, 2018		27,530,000
Cumulative effect of adoption of ASU 2014-09 at Aug. 25, 2018	(6,773)	$ 0	0	(6,773)	0	0
Balance at August 25, 2018, as adjusted at Aug. 25, 2018	(1,527,128)	$ 275	1,155,426	(1,215,597)	(235,805)	(1,231,427)
Balance at August 25, 2018, as adjusted, shares at Aug. 25, 2018		27,530,000
Net income	646,044	$ 0	0	646,044	0	0
Total other comprehensive gain (loss)	(32)	0	0	0	(32)	0
Retirement of treasury shares	0	$ (26)	(125,442)	(1,706,972)	0	1,832,440
Retirement of treasury shares, shares		(2,563,000)
Purchase of treasury stock	(847,097)	$ 0	0	0	0	(847,097)
Issuance of common stock under stock options and stock purchase plans	113,946	$ 4	113,942	0	0	0
Issuance of common stock under stock options and stock purchase plans, Shares		292,000
Share-based compensation expense	19,905	$ 0	19,905	0	0	0
Balance at Feb. 09, 2019	(1,594,362)	$ 253	1,163,831	(2,276,525)	(235,837)	(246,084)
Balance, shares at Feb. 09, 2019		25,259,000
Balance at Nov. 17, 2018	(1,658,616)	$ 277	1,209,851	(864,191)	(276,066)	(1,728,487)
Balance, Shares at Nov. 17, 2018		27,658,000
Net income	294,638	$ 0	0	294,638	0	0
Total other comprehensive gain (loss)	40,229	0	0	0	40,229	0
Retirement of treasury shares	0	$ (26)	(125,442)	(1,706,972)	0	1,832,440
Retirement of treasury shares, shares		(2,563,000)
Purchase of treasury stock	(350,037)	$ 0	0	0	0	(350,037)
Issuance of common stock under stock options and stock purchase plans	69,020	$ 2	69,018	0	0	0
Issuance of common stock under stock options and stock purchase plans, Shares		164,000
Share-based compensation expense	10,404	$ 0	10,404	0	0	0
Balance at Feb. 09, 2019	(1,594,362)	$ 253	1,163,831	(2,276,525)	(235,837)	(246,084)
Balance, shares at Feb. 09, 2019		25,259,000
Balance at Aug. 31, 2019	(1,713,851)	$ 254	1,264,448	(1,305,347)	(269,322)	(1,403,884)
Balance, Shares at Aug. 31, 2019		25,445,000
Net income	649,620	$ 0	0	649,620	0	0
Total other comprehensive gain (loss)	40,985	0	0	0	40,985	0
Retirement of treasury shares	0	$ (19)	(99,686)	(1,878,595)	0	1,978,300
Retirement of treasury shares, shares		(1,912,000)
Purchase of treasury stock	(764,846)	$ 0	0	0	0	(764,846)
Issuance of common stock under stock options and stock purchase plans	55,301	$ 2	55,299	0	0	0
Issuance of common stock under stock options and stock purchase plans, Shares		120,000
Share-based compensation expense	21,672	$ 0	21,672	0	0	0
Balance at Feb. 15, 2020	(1,711,119)	$ 237	1,241,733	(2,534,322)	(228,337)	(190,430)
Balance, shares at Feb. 15, 2020		23,653,000
Balance at Nov. 23, 2019	(1,776,090)	$ 254	1,282,629	(955,009)	(250,081)	(1,853,883)
Balance, Shares at Nov. 23, 2019		25,465,000
Net income	299,282	$ 0	0	299,282	0	0
Total other comprehensive gain (loss)	21,744	0	0	0	21,744	0
Retirement of treasury shares	0	$ (19)	(99,686)	(1,878,595)	0	1,978,300
Retirement of treasury shares, shares		(1,912,000)
Purchase of treasury stock	(314,847)	$ 0	0	0	0	(314,847)
Issuance of common stock under stock options and stock purchase plans	46,479	$ 2	46,477	0	0	0
Issuance of common stock under stock options and stock purchase plans, Shares		100,000
Share-based compensation expense	12,313	$ 0	12,313	0	0	0
Balance at Feb. 15, 2020	$ (1,711,119)	$ 237	$ 1,241,733	$ (2,534,322)	$ (228,337)	$ (190,430)
Balance, shares at Feb. 15, 2020		23,653,000

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Parenthetical) - shares	3 Months Ended		5 Months Ended	6 Months Ended	266 Months Ended
	Feb. 15, 2020	Feb. 09, 2019	Feb. 09, 2019	Feb. 15, 2020	Feb. 15, 2020
Statement of Stockholders' Equity [Abstract]
Purchase of treasury stock, shares	267,000	422,000	1,076,000	669,967	147,500,000

General	3 Months Ended
General	Feb. 15, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	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, 2019. Operating results for the twelve and twenty-four weeks ended February 15, 2020 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 29, 2020. 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 2020 has 16 weeks and fiscal 2019 had 17 weeks. Recently Adopted Accounting Pronouncements: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , and subsequently amended this update by issuing additional ASU’s that provided clarification and further guidance for areas identified as potential implementation issues. ASU 2016-02 requires a two-fold approach for lessee accounting, under which a lessee will account for leases as finance leases or operating leases. For all leases with original terms greater than 12 months, both lease classifications will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with differing methodologies for income statement recognition. This guidance also requires certain quantitative and qualitative disclosures about leasing arrangements. ASU 2016-02 and its amendments were effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption was permitted. The ASU’s transition provisions could be applied under a modified retrospective approach to each prior reporting period presented in the financial statements or only at the beginning of the period of adoption using the alternative transition method . The Company adopted this standard and its amendments as of September 1, 2019, using the modified retrospective transition method. Under this method, existing leases were recorded at the adoption date, comparative periods were not restated and prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for the prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of prior lease identification under Accounting Standards Codification (“ASC”) Topic 840. The Company made the accounting policy election for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term. The Company also elected the practical expedient to not separate lease components from the non-lease components (typically fixed common-area maintenance costs at its retail store locations) for all classes of leased assets, except vehicles. The Company chose not to elect the hindsight practical expedient to determine the reasonably certain lease term for existing leases. Adoption of the leasing standard resulted in operating lease right-of-use assets of approximately $2.5 billion and operating lease liabilities of approximately $2.7 billion as of September 1, 2019. Existing prepaid and deferred rent were netted and recorded as an offset to our gross operating lease right-of-use assets. There was no adjustment to the opening balance of retained earnings upon adoption. The standard did not have a material impact on the Company’s Condensed Consolidated Statements of Income, Condensed Consolidated Statement s of Cash Flows or covenant compliance under its existing credit agreement. Refer to “Note L – Leases”. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . ASU 2018-07 aims to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. The Company adopted this standard beginning with its first quarter ending November 23, 2019. The Company determined that the provisions of ASU 2018-07 did not have an impact on its Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets or Condensed Consolidated Statements of Cash Flows. Recently Issued Accounting Pronouncements: In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company will adopt this standard beginning with its first quarter ending November 21, 2020. The Company is currently evaluating the new guidance to determine the impact the adoption will have on its Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets or Condensed Consolidated Statements of Cash Flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which was subsequently amended in November 2018 through ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments Credit Losses . ASU 2016-13 will require entities to estimate lifetime expected credit losses for trade and other receivables, net investments in leases, financial receivables, debt securities, and other instruments, which will result in earlier recognition of credit losses. Further, the new credit loss model will affect how entities estimate their allowance for loss receivables that are current with respect to their payment terms. ASU 2016-13 will be effective for the Company at the beginning of its fiscal 2021 year. The Company will adopt this standard beginning with its first quarter ending November 21, 2020. The Company is currently evaluating the new guidance to determine the impact the adoption will have on the Company’s Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheet s or Condensed Consolidated Statement s of Cash Flows.

Share-Based Payments

3 Months Ended

Feb. 15, 2020

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Payments

Note B – 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 of

188,324

shares during the twenty-four week period ended February

2020

and granted options to purchase

172,588

shares during the comparable prior year period. The Company grants options to purchase common stock to certain of its employees under its plan at prices equal to the market value of the stock on the date of grant. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the award and each vesting date.

The weighted average fair value of the stock option awards granted during the twenty-four week periods ended February 15, 2020 and February 9, 2019, using the Black-Scholes-Merton multiple-option pricing valuation model, was $252.39 and $208.33 per share, respectively, using the following weighted average key assumptions:


	Twenty-Four Weeks Ended
	February 15, 2020		February 9, 2019

Expected price volatility		22%		21%
Risk-free interest rate		1.4%		3.0%
Weighted average expected lives (in years)		5.5		5.6
Forfeiture rate		10%		10%
Dividend yield		0%		0%

During the twenty-four week period ended February 15, 2020, 105,860 stock options were exercised at a weighted average exercise price of $476.60. In the comparable prior year period, 283,210 stock options were exercised at a weighted average exercise price of $390.26.

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.

As of February 15, 2020, total unrecognized stock-based compensation expense related to nonvested restricted stock unit awards, net of estimated forfeitures, was approximately $10.9 million, before income taxes, which we expect to recognize over an estimated weighted average period of 3.1 years.

Transactions related to restricted stock units for the twenty-four weeks ended February 15, 2020 were as follows:


	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested at August 31, 2019		10,049		$	773.61
Granted		8,735			1,086.61
Vested		(4,183	)		945.58
Canceled or forfeited		(165	)		929.33

Nonvested at February 15, 2020		14,436		$	911.39

Total share-based compensation expense (a component of Operating, selling, general and administrative expenses) was $12.1 million for the twelve week period ended February 15, 2020, and $11.0 million for the comparable prior year period. Total share-based compensation expense was $22.1 million for the twenty-four week period ended February 15, 2020, and $21.6 million for the comparable prior year period.

For the twelve week period ended February 15, 2020, 188,486 stock options were excluded from the diluted earnings per share computation because they would have been anti-dilutive. For the comparable prior year period, 170,069 anti-dilutive shares were excluded from the dilutive earnings per share computation. There were 147,998 anti-dilutive shares excluded from the diluted earnings per share computation for the twenty-four week period ended February 15, 2020, and 188,999 anti-dilutive shares excluded for the comparable prior year period.

See AutoZone’s Annual Report on Form

10-K

for the year ended August 31, 2019, 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 2011 Director Compensation Program and the 2014 Director Compensation Plan.

Fair Value Measurements

6 Months Ended

Feb. 15, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note C – 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.

Marketable Debt Securities Measured at Fair Value on a Recurring Basis

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


	February 15, 2020
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	47,079	$	872	$	–	$	47,951
Other long-term assets		67,355		9,141		–		76,496

	$	114,434	$	10,013	$	–	$	124,447


	August 31, 2019
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	65,344	$	2,614	$	–	$	67,958
Other long-term assets		65,573		5,395		–		70,968

	$	130,917	$	8,009	$	–	$	138,926

At February 15, 2020, 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 $48.0 million, which are included within Other current assets, and long-term marketable debt securities of $76.5 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 D – 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 G – Financing.”

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Marketable Debt Securities

6 Months Ended

Feb. 15, 2020

Investments, Debt and Equity Securities [Abstract]

Marketable Debt Securities

Note D – Marketable Debt Securities

The Company’s basis for determining the cost of a security sold is the “Specific Identification Model.” Unrealized gains (losses) on marketable debt securities are recorded in Accumulated other comprehensive loss. The Company’s available-for-sale marketable debt securities consisted of the following:


	February 15, 2020
(in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value

Corporate debt securities	$	33,784	$	62	$	–		$	33,846
Government bonds		57,554		662		–			58,216
Mortgage-backed securities		3,414		12		(8	)		3,418
Asset-backed securities and other		28,956		13		(2	)		28,967

	$	123,708	$	749	$	(10	)	$	124,447


	August 31, 2019
(in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value

Corporate debt securities	$	36,998	$	29	$	(19	)	$	37,008
Government bonds		45,741		763		–			46,504
Mortgage-backed securities		2,089		2		(15	)		2,076
Asset-backed securities and other		53,345		–		(7	)		53,338

	$	138,173	$	794	$	(41	)	$	138,926

The debt securities held at February 15, 2020, had effective maturities ranging from less than one year to approximately three years. The Company did not realize any material gains or losses on its marketable debt securities during the twenty-four week period ended February 15, 2020.

The Company holds 19 securities that are in an unrealized loss position of approximately $10 thousand at February 15, 2020. The Company has the intent and ability to hold these investments until recovery of fair value or maturity and does not deem the investments to be impaired on an other than temporary basis. In evaluating whether the securities are deemed to be impaired on an other than temporary basis, the Company considers factors such as the duration and 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.

Included above in total

available-for-sale

marketable debt securities are $29.5 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.

Derivative Financial Instruments	6 Months Ended
Derivative Financial Instruments	Feb. 15, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Note E – Derivative Financial Instruments At February 15, 2020, the Company had $4.6 million recorded in Accumulated other comprehensive loss related to realized losses associated with terminated interest rate swap and treasury rate lock derivatives, which were designated as hedging instruments. Net losses are amortized into Interest expense over the remaining life of the associated debt. During the twelve week period ended February 15, 2020, the Company reclassified $508 thousand of net losses from Accumulated other comprehensive loss to Interest expense. During the comparable prior year period, the Company reclassified $509 thousand of net losses from Accumulated other comprehensive loss to Interest expense. During the twenty-four week period ended February 15, 2020 and the comparable prior year period, the Company reclassified $1.0 million of net losses from Accumulated other comprehensive loss to Interest expense. The Company expects to reclassify $1.8 million of net losses from Accumulated other comprehensive loss to Interest expense over the next 12 months.

Merchandise Inventories	6 Months Ended
Merchandise Inventories	Feb. 15, 2020
Inventory Disclosure [Abstract]
Merchandise Inventories	Note F – Merchandise Inventories Merchandise inventories are stated at the lower of cost or market. Merchandise inventories include related purchasing, storage and handling costs. Inventory cost has been determined using the last-in, first-out (“LIFO”) method for domestic inventories and the weighted average cost method for Mexico and Brazil inventories. Due to historical price deflation on the Company’s merchandise purchases, the Company has exhausted its LIFO reserve balance. The Company’s policy is not to write up inventory in excess of replacement cost, which is based on average cost. The difference between LIFO cost and replacement cost, which has been slightly reduced due to recent price inflation on the Company’s merchandise purchases, was $354.7 million at February 15, 2020 and $404.9 million at August 31, 2019.

Financing

6 Months Ended

Feb. 15, 2020

Debt Disclosure [Abstract]

Financing

Note G – Financing

The Company’s long-term debt consisted of the following:


(in thousands)	February 15, 2020			August 31, 2019

4.000% Senior Notes due November 2020, effective interest rate of 4.43%		$	500,000		$	500,000
2.500% Senior Notes due April 2021, effective interest rate of 2.62%			250,000			250,000
3.700% Senior Notes due April 2022, effective interest rate of 3.85%			500,000			500,000
2.875% Senior Notes due January 2023, effective interest rate of 3.21%			300,000			300,000
3.125% Senior Notes due July 2023, effective interest rate of 3.26%			500,000			500,000
3.125% Senior Notes due April 2024, effective interest rate 3.32%			300,000			300,000
3.250% Senior Notes due April 2025, effective interest rate 3.36%			400,000			400,000
3.125% Senior Notes due April 2026, effective interest rate of 3.28%			400,000			400,000
3.750% Senior Notes due June 2027, effective interest rate of 3.83%			600,000			600,000
3.750% Senior Notes due April 2029, effective interest rate of 3.86%			450,000			450,000
Commercial paper, weighted average interest rate of 1.72% and 2.28% at February 15, 2020 and August 31, 2019, respectively			1,272,700			1,030,000

Total debt before discounts and debt issuance costs			5,472,700			5,230,000
Less: Discounts and debt issuance costs			21,229			23,656

Long-term debt		$	5,451,471		$	5,206,344

As of February 15, 2020, the commercial paper borrowings and the $500 million 4.000% Senior Notes due November 2020 are classified as long-term in the accompanying Consolidated Balance Sheets as the Company has the ability and intent to refinance them on a long-term basis through available capacity in its revolving credit facility. As of February 15, 2020, the Company had $1.997 billion of availability under its $2.0 billion revolving credit facility, which would allow it to replace these short-term obligations with long-term financing facilities.

The Company entered into a Master Extension, New Commitment and Amendment Agreement dated as of November 18, 2017 (the “Extension Amendment”) to the Third Amended and Restated Credit Agreement dated as of November 18, 2016, as amended, modified, extended or restated from time to time (the “Revolving Credit Agreement”). Under the Extension Amendment: (i) the Company’s borrowing capacity under the Revolving Credit Agreement was increased from $1.6 billion to $2.0 billion; (ii) the Company’s option to increase its borrowing capacity under the Revolving Credit Agreement was “refreshed” and the amount of such option remained at $400 million; (iii) the maximum borrowing under the Revolving Credit Agreement may, at the Company’s option, subject to lenders approval, be increased from $2.0 billion to $2.4 billion; (iv) the termination date of the Revolving Credit Agreement was extended from November 18, 2021 until November 18, 2022; and (v) the Company has the option to make one additional written request of the lenders to extend the termination date then in effect for an additional year. Under the Revolving Credit Agreement, the Company may borrow funds consisting of Eurodollar loans, base rate loans or a combination of both. Interest accrues on Eurodollar loans at a defined Eurodollar rate, defined as LIBOR plus the applicable percentage, as defined in the Revolving Credit Agreement, depending upon the Company’s senior, unsecured,

(non-credit

enhanced) long-term debt ratings. Interest accrues on base rate loans as defined in the Revolving Credit Agreement. As of February 15, 2020, the Company had $3.2 million of outstanding letters of credit under the Revolving Credit Agreement.

The fair value of the Company’s debt was estimated at $5.678 billion as of February 15, 2020, and $5.419 billion as of August 31, 2019, 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

greater

than the carrying value of debt by $226.6 million at February 15, 2020, which reflects their face amount, adjusted for any unamortized debt issuance costs and discounts. At August 31, 2019, the fair value was greater than the carrying value of debt by $212.7 million.

All senior notes are subject to an interest rate adjustment if the debt ratings assigned to the senior notes are downgraded (as defined in the agreements). Further, the senior notes contain a provision that repayment of the senior notes may be accelerated if the Company experiences a change in control (as defined in the agreements). The Company’s borrowings under its senior notes contain minimal covenants, primarily restrictions on liens. Under its revolving credit facilities, 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. 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. As of February 15, 2020, the Company was in compliance with all covenants and expects to remain in compliance with all covenants under its borrowing arrangements.

Stock Repurchase Program	6 Months Ended
Stock Repurchase Program	Feb. 15, 2020
Equity [Abstract]
Stock Repurchase Program	Note H – Stock Repurchase Program From January 1, 1998 to February 15, 2020, the Company has repurchased a total of 147.5 million shares of its common stock at an aggregate cost of $22.188 billion, including 669,967 shares of its common stock at an aggregate cost of $764.8 million during the twenty-four week period ended February 15, 2020. On October 7, 2019, the Board voted to increase the repurchase authorization by $1.25 billion. This raised the total value of shares authorized to be repurchased to $23.15 billion. Considering the cumulative repurchases as of February 15, 2020, the Company had $961.9 million remaining under the Board’s authorization to repurchase its common stock. During the twenty-four week period ended February 15, 2020, the Company retired 1.9 million shares of treasury stock which had previously been repurchased under the Company’s share repurchase program. The retirement increased Retained deficit by $1.879 billion and decreased Additional paid-in capital by $99.7 million. During the comparable prior year period, the Company retired 2.6 million shares of treasury stock, which increased Retained deficit by $1.707 billion and decreased Additional paid-in capital by $125.4 million. Subsequent to February 15, 2020, the Company has repurchased 156,035 shares of its common stock at an aggregate cost of $166.1 million.

Accumulated Other Comprehensive Loss

6 Months Ended

Feb. 15, 2020

Equity [Abstract]

Accumulated Other Comprehensive Loss

Note I – Accumulated Other Comprehensive Loss

Accumulated

other comprehensive loss includes foreign currency translation adjustments, activity for interest rate swaps and treasury rate locks that qualify as cash flow hedges and unrealized gains (losses) on

available-for-sale

debt securities. Changes in Accumulated other comprehensive loss for the twelve week periods ended February 15, 2020 and February 9, 2019 consisted of the following:


(in thousands)	Foreign Currency and Other (2)			Net Unrealized Gain (Loss) on Securities			Derivatives			Total

Balance at November 23, 2019	$	(246,558	)	$	403		$	(3,926	)	$	(250,081	)
Other comprehensive income before reclassifications (1)		21,178			180			–			21,358
Amounts reclassified from Accumulated other comprehensive (loss) income ( 1 )		–			(2	)		388	(3)		386

Balance at February 15, 2020	$	(225,380	)	$	581		$	(3,538	)	$	(228,337	)


(in thousands)	Foreign Currency and Other (2)			Net Unrealized Gain (Loss) on Securities			Derivatives			Total

Balance at November 17, 2018	$	(269,472	)	$	(950	)	$	(5,644	)	$	(276,066	)
Other comprehensive income before reclassifications (1)		39,332			507			–			39,839
Amounts reclassified from Accumulated other comprehensive income ( 1 )		–			1			389	(3)		390

Balance at February 9, 2019	$	(230,140	)	$	(442	)	$	(5,255	)	$	(235,837	)

(1)	Amounts in parentheses indicate debits to Accumulated other comprehensive loss.

(2)	Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. subsidiaries earnings. Other foreign currency is not shown net of additional U.S. tax as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested.

(3)	Represents gains on derivatives, net of taxes of $120 for the twelve weeks ended February 15, 2020 and February 9, 2019, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion.

Changes in Accumulated other comprehensive loss for the twenty-four week periods ended February 15, 2020 and February 9, 2019 consisted of the following:


(in th ousands)	Foreign Currency and Other (2)			Net Unrealized Gain (Loss) on Securities			Derivatives			Total

Balance at August 31, 2019	$	(265,598	)	$	591		$	(4,315	)	$	(269,322	)
Other comprehensive income (loss) before reclassifications (1)		40,218			(53	)		–			40,165
Amounts reclassified from Accumulated other comprehensive income (loss) (1)		–			43	(3)		777	(4)		820

Balance at February 15, 2020	$	(225,380	)	$	581		$	(3,538	)	$	(228,337	)

(in th ousands)	Foreign Currency and Other (2)			Net Unrealized Gain (Loss) on Securities			Derivatives			Total

Balance at August 25, 2018	$	(228,899	)	$	(873	)	$	(6,033	)	$	(235,805	)
Other comprehensive income (loss) before reclassifications (1)		(1,241	)		430			–			(811	)
Amounts reclassified from Accumulated other comprehensive (loss) (1)		–			1			778	(4)		779
Balance at February 9, 2019	$	(230,140	)	$	(442	)	$	(5,255	)	$	(235,837	)

(1)

Amounts in parentheses indicate debits to Accumulated other comprehensive loss.

(2)

Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed

non-U.S.

subsidiaries earnings. Other foreign currency is not shown net of additional U.S. tax as other basis differences of

non-U.S.

subsidiaries are intended to be permanently reinvested.

(3)

Represents realized losses on marketable debt securities, net of tax benefit of $12 for the twenty-four weeks ended February 15, 2020, which is recorded in Operating, selling general and administrative expenses on the Condensed Consolidated Statements of Income. See “Note D – Marketable Debt Securities” for further discussion.

(4)

Represents gains on derivatives, net of taxes of $240 for the twenty-four weeks ended February 15, 2020 and February 9, 2019, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion.

Goodwill and Intangibles

6 Months Ended

Feb. 15, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles

Note J – Goodwill and Intangibles

As of February 15, 2020, there were no changes to the carrying amount of goodwill as described in our Annual Report on Form

10-K

for the year ended August 31, 2019.

The carrying amounts of intangible assets are included in Other long-term assets as follows:


(in thousands)	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount

Amortizing intangible assets:
Technology		3-5 years	$	870	$	(870	)	$	–
Customer relationships		3-10 years		29,376		(25,685	)		3,691

Total intangible assets other than goodwill			$	30,246	$	(26,555	)	$	3,691

Amortization expense of intangible assets for the twelve and twenty-four week periods ended February 15, 2020 and February 9, 2019 were $1.0 million and $1.9 million, respectively.

Litigation	6 Months Ended
Litigation	Feb. 15, 2020
Commitments and Contingencies Disclosure [Abstract]
Litigation	Note K – Litigation The Company is involved in various legal proceedings incidental to the conduct of its business, including, but not limited to, several lawsuits containing class-action allegations in which the plaintiffs are current and former hourly and salaried employees who allege various wage and hour violations and unlawful termination practices. While the resolution of these matters cannot be predicted with certainty, management does not currently believe that, either individually or in the aggregate, these matters will result in liabilities material to the Company’s Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets or Condensed Consolidated Statements of Cash Flows.

Leases

6 Months Ended

Feb. 15, 2020

Leases [Abstract]

Leases

Note L – Leases

The Company adopted ASU

2016-02,

Leases (Topic 842)

, beginning with its first quarter ended November 23, 2019 which requires leases to be recognized on the balance sheet. Leases with an original term of 12 months or less are not recognized in the Company’s Condensed Consolidated Balance Sheet

, and the lease expense related to these short-term leases is recognized over the lease term. The Company elected the practical expedient to not separate lease components from the

non-lease

components, which includes fixed common-area maintenance costs at its retail store locations, for all classes of leased assets, except vehicles. Our vehicle leases typically include variable

non-lease

components, such as maintenance and fuel charges, which contain observable standalone prices. We have elected to exclude these variable

non-lease

components from vehicle lease payments for the purpose of calculating the

right-of-use

assets and liabilities. These variable lease payments are expensed as incurred.

The Company’s leases primarily relate to its retail stores, distribution centers and vehicles under various

non-callable

leases. Leases are categorized at their commencement date, which is the date the Company takes possession or control of the underlying asset. Most of the Company’s leases are operating leases; however, certain land and vehicles are leased under finance leases. The leases have varying terms and expire at various dates through 2040. Retail leases typically have initial terms of between one and 20 years, with one to six optional renewal periods of one to five years each. Finance leases for vehicles typically have original terms between one and five years and finance leases for real estate leases typically have terms of 20 or more years. The exercise of lease renewal options is at our sole discretion. The Company evaluates renewal options at lease commencement and on an ongoing basis and includes options that are reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. The Company subleases certain properties that are not used in its operations. Sublease income was not significant for the periods presented. Certain lease agreements require variable payments based upon actual costs of common-area maintenance, real estate taxes and insurance. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Our finance leases for vehicles have a stated borrowing rate which we use in determining the present value of the lease payments over the lease term. Substantially all our operating leases and finance leases for real estate do not provide a stated borrowing rate. Accordingly, we use the Company’s incremental borrowing rate at commencement or modification date in determining the present value of lease payments over the lease term. For operating leases that commenced prior to the date of adoption of the new standard, the Company used the incremental borrowing rate that corresponded to the remaining lease term as of the date of adoption.

Lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet are as follows:


(in thousands)	Classification	February 15 , 2020

Assets:
Operating	Operating lease right-of-use assets	$	2,579,217
Finance	Property and equipment		294,449

Total lease assets		$	2,873,666

Liabilities: Current:
Operating	Current portion of operating lease liabilities	$	234,506
Finance	Accrued expenses and other		58,864
Noncurrent:
Operating	Operating lease liabilities, less current portion		2,494,840
Finance	Other long-term liabilities		137,182

Total lease liabilities		$	2,925,392

Accumulated amortization related to

inance lease assets was $93.4 million as of February 15, 2020.

Lease costs for finance and operating leases for the twelve and twenty-four weeks ended February 15, 2020 are as follows:


(in thousands)	Statement of Income Location	Twelve Weeks Ended February 15, 2020		Twenty-Four Weeks Ended February 15, 2020

Finance lease cost:
Amortization of lease assets	Depreciation and amortization	$	12,872	$	25,528
Interest on lease liabilities	Interest expense, net		1,282		2,667
Operating lease cost (1)	Selling, general and administrative expenses		80,396		162,195

Total lease cost		$	94,550	$	190,390

(

1) Includes short-term leases, variable lease costs and sublease income, which are immaterial.

The future rental payments, inclusive of renewal options that have been included in defining the expected lease term, of our operating and finance lease obligations as of February 15, 2020 having initial or remaining lease terms in excess of one year are as follows:


(in thousands)	Finance Leases			Operating Leases			Total

2020	$	30,419		$	159,455		$	189,874
2021		61,560			320,472			382,032
2022		48,694			310,948			359,642
2023		33,567			291,256			324,823
2024		11,328			267,176			278,504
Thereafter		39,598			2,232,620			2,272,218

Total lease payments		225,166			3,581,927			3,807,093
Less: Interest		(29,120	)		(852,581	)		(881,701	)

Present value of lease liabilities	$	196,046		$	2,729,346		$	2,925,392

The following table summarizes the Company’s lease term and discount rate assumptions:


	February 15, 2020
Weighted-average remaining lease term in years, inclusive of renewal options that are reasonably certain to be exercised
Finance leases – real estate		30
Finance leases – vehicles		3
Operating leases		15
Weighted-average discount rate:
Finance leases – real estate		3.23%
Finance leases – vehicles		2.72%
Operating leases		3.55%

The following table summarizes the other information related to the Company’s lease liabilities:


(in thousands)	Twenty-Four Weeks Ended February 15, 2020

Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases	$	98,021
Leased assets obtained in exchange for new finance lease liabilities		45,582
Leased assets obtained in exchange for new operating lease liabilities		174,038

As of February 15

, 2020

, the Company has entered into additional leases which have not yet commenced and are therefore not part of the

right-of-use

asset and liability. These leases are generally for real estate and have undiscounted future payments of approximately $31.1

million and will commence when the Company obtains possession of the underlying leased asset. Commencement dates are expected to be from fiscal 2020

to fiscal 2022

Segment Reporting

6 Months Ended

Feb. 15, 2020

Segment Reporting [Abstract]

Segment Reporting

Note M – Segment Reporting

The Company’s operating segments (Domestic Auto Parts, Mexico and Brazil) are aggregated as one reportable segment: Auto Parts Stores. The criteria the Company used to identify the reportable segment are primarily the nature of the products the Company sells and the operating results that are regularly reviewed by the Company’s chief operating decision maker to make decisions about the resources to be allocated to the business units and to assess performance. The accounting policies of the Company’s reportable segment are the same as those described in “Note A – Significant Accounting Policies” in its Annual Report on Form

10-K

for the year ended August 31, 2019.

The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 6,461 stores in the U.S., Mexico and Brazil. Each store carries an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and

non-automotive

products.

The Other category reflects business activities of two operating segments that are not separately reportable due to the materiality of these operating segments. The operating segments include ALLDATA, which produces, sells and maintains diagnostic and repair information software used in the automotive repair industry, and

E-commerce,

which includes direct sales to customers through www.autozone.com for sales that are not fulfilled by local stores.

The Company evaluates its reportable segment primarily on the basis of net sales and segment profit, which is defined as gross profit. Segment results for the periods presented were as follows:


	Twelve Weeks Ended						Twenty-Four Weeks Ended

(in thousands)	February 15, 2020			February 9, 2019			February 15, 2020			February 9, 2019

Net Sales
Auto Parts Stores	$	2,464,988		$	2,402,833		$	5,208,226		$	4,996,273
Other		48,675			47,735			98,474			96,029

Total	$	2,513,663		$	2,450,568		$	5,306,700		$	5,092,302


Segment Profit
Auto Parts Stores	$	1,331,270		$	1,291,186		$	2,797,431		$	2,674,751
Other		34,793			33,921			69,700			67,830

Gross profit		1,366,063			1,325,107			2,867,131			2,742,581
Operating, selling, general and administrative expenses		(958,125	)		(925,087	)		(1,959,170	)		(1,854,742	)
Interest expense, net		(44,335	)		(41,362	)		(88,078	)		(80,369	)

Income before income taxes	$	363,603		$	358,658		$	819,883		$	807,470

General (Policies)	6 Months Ended
General (Policies)	Feb. 15, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fiscal Period	Operating results for the twelve and twenty-four weeks ended February 15, 2020 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 29, 2020. 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 2020 has 16 weeks and fiscal 2019 had 17 weeks.
Recently Adopted and Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , and subsequently amended this update by issuing additional ASU’s that provided clarification and further guidance for areas identified as potential implementation issues. ASU 2016-02 requires a two-fold approach for lessee accounting, under which a lessee will account for leases as finance leases or operating leases. For all leases with original terms greater than 12 months, both lease classifications will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with differing methodologies for income statement recognition. This guidance also requires certain quantitative and qualitative disclosures about leasing arrangements. ASU 2016-02 and its amendments were effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption was permitted. The ASU’s transition provisions could be applied under a modified retrospective approach to each prior reporting period presented in the financial statements or only at the beginning of the period of adoption using the alternative transition method . The Company adopted this standard and its amendments as of September 1, 2019, using the modified retrospective transition method. Under this method, existing leases were recorded at the adoption date, comparative periods were not restated and prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for the prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of prior lease identification under Accounting Standards Codification (“ASC”) Topic 840. The Company made the accounting policy election for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term. The Company also elected the practical expedient to not separate lease components from the non-lease components (typically fixed common-area maintenance costs at its retail store locations) for all classes of leased assets, except vehicles. The Company chose not to elect the hindsight practical expedient to determine the reasonably certain lease term for existing leases. Adoption of the leasing standard resulted in operating lease right-of-use assets of approximately $2.5 billion and operating lease liabilities of approximately $2.7 billion as of September 1, 2019. Existing prepaid and deferred rent were netted and recorded as an offset to our gross operating lease right-of-use assets. There was no adjustment to the opening balance of retained earnings upon adoption. The standard did not have a material impact on the Company’s Condensed Consolidated Statements of Income, Condensed Consolidated Statement s of Cash Flows or covenant compliance under its existing credit agreement. Refer to “Note L – Leases”. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . ASU 2018-07 aims to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. The Company adopted this standard beginning with its first quarter ending November 23, 2019. The Company determined that the provisions of ASU 2018-07 did not have an impact on its Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets or Condensed Consolidated Statements of Cash Flows. Recently Issued Accounting Pronouncements: In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company will adopt this standard beginning with its first quarter ending November 21, 2020. The Company is currently evaluating the new guidance to determine the impact the adoption will have on its Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets or Condensed Consolidated Statements of Cash Flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which was subsequently amended in November 2018 through ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments Credit Losses . ASU 2016-13 will require entities to estimate lifetime expected credit losses for trade and other receivables, net investments in leases, financial receivables, debt securities, and other instruments, which will result in earlier recognition of credit losses. Further, the new credit loss model will affect how entities estimate their allowance for loss receivables that are current with respect to their payment terms. ASU 2016-13 will be effective for the Company at the beginning of its fiscal 2021 year. The Company will adopt this standard beginning with its first quarter ending November 21, 2020. The Company is currently evaluating the new guidance to determine the impact the adoption will have on the Company’s Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheet s or Condensed Consolidated Statement s of Cash Flows.

Share-Based Payments (Tables)

6 Months Ended

Feb. 15, 2020

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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


	Twenty-Four Weeks Ended
	February 15, 2020		February 9, 2019

Expected price volatility		22%		21%
Risk-free interest rate		1.4%		3.0%
Weighted average expected lives (in years)		5.5		5.6
Forfeiture rate		10%		10%
Dividend yield		0%		0%

Schedule of Nonvested Restricted Stock Units Activity

Transactions related to restricted stock units for the twenty-four weeks ended February 15, 2020 were as follows:


	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested at August 31, 2019		10,049		$	773.61
Granted		8,735			1,086.61
Vested		(4,183	)		945.58
Canceled or forfeited		(165	)		929.33

Nonvested at February 15, 2020		14,436		$	911.39

Fair Value Measurements (Tables)

6 Months Ended

Feb. 15, 2020

Fair Value Disclosures [Abstract]

Company's marketable debt securities measured at Fair Value on Recurring Basis

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


	February 15, 2020
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	47,079	$	872	$	–	$	47,951
Other long-term assets		67,355		9,141		–		76,496

	$	114,434	$	10,013	$	–	$	124,447


	August 31, 2019
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	65,344	$	2,614	$	–	$	67,958
Other long-term assets		65,573		5,395		–		70,968

	$	130,917	$	8,009	$	–	$	138,926

Marketable Debt Securities (Tables)

6 Months Ended

Feb. 15, 2020

Investments, Debt and Equity Securities [Abstract]

Available-for-Sale Marketable Securities

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


	February 15, 2020
(in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value

Corporate debt securities	$	33,784	$	62	$	–		$	33,846
Government bonds		57,554		662		–			58,216
Mortgage-backed securities		3,414		12		(8	)		3,418
Asset-backed securities and other		28,956		13		(2	)		28,967

	$	123,708	$	749	$	(10	)	$	124,447


	August 31, 2019
(in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value

Corporate debt securities	$	36,998	$	29	$	(19	)	$	37,008
Government bonds		45,741		763		–			46,504
Mortgage-backed securities		2,089		2		(15	)		2,076
Asset-backed securities and other		53,345		–		(7	)		53,338

	$	138,173	$	794	$	(41	)	$	138,926

Financing (Tables)

6 Months Ended

Feb. 15, 2020

Debt Disclosure [Abstract]

Schedule of Debt

The Company’s long-term debt consisted of the following:


(in thousands)	February 15, 2020			August 31, 2019

4.000% Senior Notes due November 2020, effective interest rate of 4.43%		$	500,000		$	500,000
2.500% Senior Notes due April 2021, effective interest rate of 2.62%			250,000			250,000
3.700% Senior Notes due April 2022, effective interest rate of 3.85%			500,000			500,000
2.875% Senior Notes due January 2023, effective interest rate of 3.21%			300,000			300,000
3.125% Senior Notes due July 2023, effective interest rate of 3.26%			500,000			500,000
3.125% Senior Notes due April 2024, effective interest rate 3.32%			300,000			300,000
3.250% Senior Notes due April 2025, effective interest rate 3.36%			400,000			400,000
3.125% Senior Notes due April 2026, effective interest rate of 3.28%			400,000			400,000
3.750% Senior Notes due June 2027, effective interest rate of 3.83%			600,000			600,000
3.750% Senior Notes due April 2029, effective interest rate of 3.86%			450,000			450,000
Commercial paper, weighted average interest rate of 1.72% and 2.28% at February 15, 2020 and August 31, 2019, respectively			1,272,700			1,030,000

Total debt before discounts and debt issuance costs			5,472,700			5,230,000
Less: Discounts and debt issuance costs			21,229			23,656

Long-term debt		$	5,451,471		$	5,206,344

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Feb. 15, 2020

Equity [Abstract]

Changes in Accumulated Other Comprehensive Loss

Changes in Accumulated other comprehensive loss for the twelve week periods ended February 15, 2020 and February 9, 2019 consisted of the following:


(in thousands)	Foreign Currency and Other (2)			Net Unrealized Gain (Loss) on Securities			Derivatives			Total

Balance at November 23, 2019	$	(246,558	)	$	403		$	(3,926	)	$	(250,081	)
Other comprehensive income before reclassifications (1)		21,178			180			–			21,358
Amounts reclassified from Accumulated other comprehensive (loss) income ( 1 )		–			(2	)		388	(3)		386

Balance at February 15, 2020	$	(225,380	)	$	581		$	(3,538	)	$	(228,337	)


(in thousands)	Foreign Currency and Other (2)			Net Unrealized Gain (Loss) on Securities			Derivatives			Total

Balance at November 17, 2018	$	(269,472	)	$	(950	)	$	(5,644	)	$	(276,066	)
Other comprehensive income before reclassifications (1)		39,332			507			–			39,839
Amounts reclassified from Accumulated other comprehensive income ( 1 )		–			1			389	(3)		390

Balance at February 9, 2019	$	(230,140	)	$	(442	)	$	(5,255	)	$	(235,837	)

(1)	Amounts in parentheses indicate debits to Accumulated other comprehensive loss.

(2)	Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed non-U.S. subsidiaries earnings. Other foreign currency is not shown net of additional U.S. tax as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested.

(3)	Represents gains on derivatives, net of taxes of $120 for the twelve weeks ended February 15, 2020 and February 9, 2019, which is recorded in Interest expense, net, on the Condensed Consolidated Statements of Income. See “Note E – Derivative Financial Instruments” for further discussion.

Changes in Accumulated other comprehensive loss for the twenty-four week periods ended February 15, 2020 and February 9, 2019 consisted of the following:


(in th ousands)	Foreign Currency and Other (2)			Net Unrealized Gain (Loss) on Securities			Derivatives			Total

Balance at August 31, 2019	$	(265,598	)	$	591		$	(4,315	)	$	(269,322	)
Other comprehensive income (loss) before reclassifications (1)		40,218			(53	)		–			40,165
Amounts reclassified from Accumulated other comprehensive income (loss) (1)		–			43	(3)		777	(4)		820

Balance at February 15, 2020	$	(225,380	)	$	581		$	(3,538	)	$	(228,337	)

(in th ousands)	Foreign Currency and Other (2)			Net Unrealized Gain (Loss) on Securities			Derivatives			Total

Balance at August 25, 2018	$	(228,899	)	$	(873	)	$	(6,033	)	$	(235,805	)
Other comprehensive income (loss) before reclassifications (1)		(1,241	)		430			–			(811	)
Amounts reclassified from Accumulated other comprehensive (loss) (1)		–			1			778	(4)		779
Balance at February 9, 2019	$	(230,140	)	$	(442	)	$	(5,255	)	$	(235,837	)

(1)

Amounts in parentheses indicate debits to Accumulated other comprehensive loss.

(2)

Foreign currency is shown net of U.S. tax to account for foreign currency impacts of certain undistributed

non-U.S.

subsidiaries earnings. Other foreign currency is not shown net of additional U.S. tax as other basis differences of

non-U.S.

subsidiaries are intended to be permanently reinvested.

(3)

(4)

Goodwill and Intangibles (Tables)

6 Months Ended

Feb. 15, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Carrying Amounts of Intangible Assets

The carrying amounts of intangible assets are included in Other long-term assets as follows:


(in thousands)	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount

Amortizing intangible assets:
Technology		3-5 years	$	870	$	(870	)	$	–
Customer relationships		3-10 years		29,376		(25,685	)		3,691

Total intangible assets other than goodwill			$	30,246	$	(26,555	)	$	3,691

Leases (Tables)

6 Months Ended

Feb. 15, 2020

Leases [Abstract]

Balance Sheet Information Related To Leases

Lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet are as follows:


(in thousands)	Classification	February 15 , 2020

Assets:
Operating	Operating lease right-of-use assets	$	2,579,217
Finance	Property and equipment		294,449

Total lease assets		$	2,873,666

Liabilities: Current:
Operating	Current portion of operating lease liabilities	$	234,506
Finance	Accrued expenses and other		58,864
Noncurrent:
Operating	Operating lease liabilities, less current portion		2,494,840
Finance	Other long-term liabilities		137,182

Total lease liabilities		$	2,925,392

Lease Cost


(in thousands)	Statement of Income Location	Twelve Weeks Ended February 15, 2020		Twenty-Four Weeks Ended February 15, 2020

Finance lease cost:
Amortization of lease assets	Depreciation and amortization	$	12,872	$	25,528
Interest on lease liabilities	Interest expense, net		1,282		2,667
Operating lease cost (1)	Selling, general and administrative expenses		80,396		162,195

Total lease cost		$	94,550	$	190,390

(

1) Includes short-term leases, variable lease costs and sublease income, which are immaterial.

Summary Of The Future Maturities Of The Company's Lease Liabilities


(in thousands)	Finance Leases			Operating Leases			Total

2020	$	30,419		$	159,455		$	189,874
2021		61,560			320,472			382,032
2022		48,694			310,948			359,642
2023		33,567			291,256			324,823
2024		11,328			267,176			278,504
Thereafter		39,598			2,232,620			2,272,218

Total lease payments		225,166			3,581,927			3,807,093
Less: Interest		(29,120	)		(852,581	)		(881,701	)

Present value of lease liabilities	$	196,046		$	2,729,346		$	2,925,392

Information On Lease Term And Discount Rate

The following table summarizes the Company’s lease term and discount rate assumptions:


	February 15, 2020
Weighted-average remaining lease term in years, inclusive of renewal options that are reasonably certain to be exercised
Finance leases – real estate		30
Finance leases – vehicles		3
Operating leases		15
Weighted-average discount rate:
Finance leases – real estate		3.23%
Finance leases – vehicles		2.72%
Operating leases		3.55%

Other Information Related To Lease Liabilities

The following table summarizes the other information related to the Company’s lease liabilities:


(in thousands)	Twenty-Four Weeks Ended February 15, 2020

Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases	$	98,021
Leased assets obtained in exchange for new finance lease liabilities		45,582
Leased assets obtained in exchange for new operating lease liabilities		174,038

Segment Reporting (Tables)

6 Months Ended

Feb. 15, 2020

Segment Reporting [Abstract]

Segment Results


	Twelve Weeks Ended						Twenty-Four Weeks Ended

(in thousands)	February 15, 2020			February 9, 2019			February 15, 2020			February 9, 2019

Net Sales
Auto Parts Stores	$	2,464,988		$	2,402,833		$	5,208,226		$	4,996,273
Other		48,675			47,735			98,474			96,029

Total	$	2,513,663		$	2,450,568		$	5,306,700		$	5,092,302


Segment Profit
Auto Parts Stores	$	1,331,270		$	1,291,186		$	2,797,431		$	2,674,751
Other		34,793			33,921			69,700			67,830

Gross profit		1,366,063			1,325,107			2,867,131			2,742,581
Operating, selling, general and administrative expenses		(958,125	)		(925,087	)		(1,959,170	)		(1,854,742	)
Interest expense, net		(44,335	)		(41,362	)		(88,078	)		(80,369	)

Income before income taxes	$	363,603		$	358,658		$	819,883		$	807,470

General - Additional Information (Detail) - USD ($) $ in Thousands	Feb. 15, 2020	Sep. 01, 2019	Aug. 31, 2019
Lease Right Of Use Assets	$ 2,579,217		$ 0
Lease Liabilities	$ 2,729,346
Accounting Standards Update 2016-02 [Member]
Lease Right Of Use Assets		$ 2,500,000
Lease Liabilities		$ 2,700,000

Share-Based Payments - Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted and Related Share-Based Compensation Expense (Detail)	5 Months Ended	6 Months Ended
	Feb. 09, 2019	Feb. 15, 2020
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected price volatility	21.00%	22.00%
Risk-free interest rates	3.00%	1.40%
Weighted average expected lives (in years)	5 years 7 months 6 days	5 years 6 months
Forfeiture rate	10.00%	10.00%
Dividend yield	0.00%	0.00%

Share-Based Payments - Schedule of Nonvested Restricted Stock Units Activity (Detail)	6 Months Ended
	Feb. 15, 2020 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested, Beginning balance, Number of Shares \| shares	10,049
Granted, Number of Shares \| shares	8,735
Vested, Number of Shares \| shares	(4,183)
Canceled or forfeited, Number of Shares \| shares	(165)
Nonvested, Ending balance, Number of Shares \| shares	14,436
Nonvested, Beginning balance, Weighted Average Exercise Price \| $ / shares	$ 773.61
Granted, Weighted Average Exercise Price \| $ / shares	1,086.61
Vested, Weighted Average Exercise Price \| $ / shares	945.58
Canceled or forfeited, Weighted Average Exercise Price \| $ / shares	929.33
Nonvested, Ending balance, Weighted Average Exercise Price \| $ / shares	$ 911.39

Share-Based Payments - Additional Information (Detail) - USD ($)	3 Months Ended		5 Months Ended	6 Months Ended
	Feb. 15, 2020	Feb. 09, 2019	Feb. 09, 2019	Feb. 15, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value of options granted			$ 208.33	$ 252.39
Stock options granted			172,588	188,324
Stock options exercised - Shares			283,210	105,860
Stock options exercised - Weighted average exercise price			$ 390.26	$ 476.60
Share-based compensation expense	$ 12,100,000	$ 11,000,000	$ 21,600,000	$ 22,100,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non vested restricted stock unit award	$ 10,900,000			$ 10,900,000
Estimated weighted average period				3 years 1 month 6 days
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Anti-dilutive shares excluded from the computation of earnings per share	188,486	170,069	188,999	147,998

Fair Value Measurements - Company's marketable debt securities measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Feb. 15, 2020	Aug. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 124,447	$ 138,926
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current assets	47,951	67,958
Other long-term assets	76,496	70,968
Total	124,447	138,926
Level 1 [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current assets	47,079	65,344
Other long-term assets	67,355	65,573
Total	114,434	130,917
Level 2 [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current assets	872	2,614
Other long-term assets	9,141	5,395
Total	10,013	8,009
Level 3 [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current assets
Other long-term assets
Total

Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Feb. 15, 2020	Aug. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term marketable debt securities	$ 47,951	$ 67,958
Long-term marketable debt securities	$ 76,496	$ 70,968

Marketable Debt Securities - Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands	Feb. 15, 2020	Aug. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Available-For-Sale Marketable Securities, Amortized Cost Basis	$ 123,708	$ 138,173
Available-For-Sale Marketable Securities, Gross Unrealized Gains	749	794
Available-For-Sale Marketable Securities, Gross Unrealized Losses	(10)	(41)
Available-For-Sale Marketable Securities, Fair Value	124,447	138,926
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-For-Sale Marketable Securities, Amortized Cost Basis	33,784	36,998
Available-For-Sale Marketable Securities, Gross Unrealized Gains	62	29
Available-For-Sale Marketable Securities, Gross Unrealized Losses		(19)
Available-For-Sale Marketable Securities, Fair Value	33,846	37,008
Government Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-For-Sale Marketable Securities, Amortized Cost Basis	57,554	45,741
Available-For-Sale Marketable Securities, Gross Unrealized Gains	662	763
Available-For-Sale Marketable Securities, Gross Unrealized Losses
Available-For-Sale Marketable Securities, Fair Value	58,216	46,504
Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-For-Sale Marketable Securities, Amortized Cost Basis	3,414	2,089
Available-For-Sale Marketable Securities, Gross Unrealized Gains	12	2
Available-For-Sale Marketable Securities, Gross Unrealized Losses	(8)	(15)
Available-For-Sale Marketable Securities, Fair Value	3,418	2,076
Asset-Backed Securities and Other [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-For-Sale Marketable Securities, Amortized Cost Basis	28,956	53,345
Available-For-Sale Marketable Securities, Gross Unrealized Gains	13	0
Available-For-Sale Marketable Securities, Gross Unrealized Losses	(2)	(7)
Available-For-Sale Marketable Securities, Fair Value	$ 28,967	$ 53,338

Marketable Debt Securities - Additional Information (Detail) $ in Thousands	6 Months Ended
	Feb. 15, 2020 USD ($) Securities	Aug. 31, 2019 USD ($)
Investments, Debt and Equity Securities [Abstract]
Available for sale securities debt maturity period range	less than one year to approximately three years
Number of securities available for sale loss position \| Securities	19
Available-For-Sale Marketable Securities, Gross Unrealized Losses	$ 10	$ 41
Marketable securities transferred	$ 29,500

Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	5 Months Ended	6 Months Ended
	Feb. 09, 2019	Feb. 15, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative losses recorded in Accumulated other comprehensive loss		$ 4,600
Net derivative losses amortized into Interest expense	$ 509	508
Net derivative loss expected to be reclassified over next 12 months	$ 1,000	$ 1,800

Merchandise Inventories - Additional Information (Detail) - USD ($) $ in Millions	Feb. 15, 2020	Aug. 31, 2019
Inventory Disclosure [Abstract]
Unrecorded adjustment for LIFO value in excess of replacement value	$ 354.7	$ 404.9

Financing - Schedule of Debt (Detail) - USD ($) $ in Thousands	Feb. 15, 2020	Aug. 31, 2019
Debt Instrument [Line Items]
Commercial paper	$ 1,272,700	$ 1,030,000
Total debt before discounts and debt issuance costs	5,472,700	5,230,000
Less: Discounts and debt issuance costs	21,229	23,656
Long-term debt	5,451,471	5,206,344
4.000% Senior Notes due November 2020, effective interest rate of 4.43% [Member]
Debt Instrument [Line Items]
Senior notes	500,000	500,000
2.500% Senior Notes due April 2021, effective interest rate of 2.62% [Member]
Debt Instrument [Line Items]
Senior notes	250,000	250,000
3.700% Senior Notes due April 2022, effective interest rate of 3.85% [Member]
Debt Instrument [Line Items]
Senior notes	500,000	500,000
2.875% Senior Notes due January 2023, effective interest rate of 3.21% [Member]
Debt Instrument [Line Items]
Senior notes	300,000	300,000
3.125% Senior Notes due July 2023, effective interest rate of 3.26% [Member]
Debt Instrument [Line Items]
Senior notes	500,000	500,000
3.125% Senior Notes due April 2024, effective interest rate 3.32% [Member]
Debt Instrument [Line Items]
Senior notes	300,000	300,000
3.250% Senior Notes due April 2025, effective interest rate 3.36% [Member]
Debt Instrument [Line Items]
Senior notes	400,000	400,000
3.125% Senior Notes due April 2026, effective interest rate of 3.28% [Member]
Debt Instrument [Line Items]
Senior notes	400,000	400,000
3.750% Senior Notes due June 2027, effective interest rate of 3.83% [Member]
Debt Instrument [Line Items]
Senior notes	600,000	600,000
3.750% Senior Notes due April 2029, effective interest rate of 3.86% [Member]
Debt Instrument [Line Items]
Senior notes	$ 450,000	$ 450,000

Financing - Schedule of Debt (Parenthetical) (Detail)	6 Months Ended	12 Months Ended
Financing - Schedule of Debt (Parenthetical) (Detail)	Feb. 15, 2020	Aug. 31, 2019
Commercial paper, weighted average interest rate of 1.72% and 2.28% at February 15, 2020 and August 31, 2019, respectively [Member]
Debt Instrument [Line Items]
Weighted average interest rate of commercial paper	1.72%	2.28%
4.000% Senior Notes due November 2020, effective interest rate of 4.43% [Member]
Debt Instrument [Line Items]
Stated interest rate percentage	4.00%	4.00%
Effective interest rate	4.43%	4.43%
Debt instrument maturity, month and year	2020-11	2020-11
2.500% Senior Notes due April 2021, effective interest rate of 2.62% [Member]
Debt Instrument [Line Items]
Stated interest rate percentage	2.50%	2.50%
Effective interest rate	2.62%	2.62%
Debt instrument maturity, month and year	2021-04	2021-04
3.700% Senior Notes due April 2022, effective interest rate of 3.85% [Member]
Debt Instrument [Line Items]
Stated interest rate percentage	3.70%	3.70%
Effective interest rate	3.85%	3.85%
Debt instrument maturity, month and year	2022-04	2022-04
2.875% Senior Notes due January 2023, effective interest rate of 3.21% [Member]
Debt Instrument [Line Items]
Stated interest rate percentage	2.875%	2.875%
Effective interest rate	3.21%	3.21%
Debt instrument maturity, month and year	2023-01	2023-01
3.125% Senior Notes due July 2023, effective interest rate of 3.26% [Member]
Debt Instrument [Line Items]
Stated interest rate percentage	3.125%	3.125%
Effective interest rate	3.26%	3.26%
Debt instrument maturity, month and year	2023-07	2023-07
3.125% Senior Notes due April 2024, effective interest rate 3.32% [Member]
Debt Instrument [Line Items]
Stated interest rate percentage	3.125%	3.125%
Effective interest rate	3.32%	3.32%
Debt instrument maturity, month and year	2024-04	2024-04
3.250% Senior Notes due April 2025, effective interest rate 3.36% [Member]
Debt Instrument [Line Items]
Stated interest rate percentage	3.25%	3.25%
Effective interest rate	3.36%	3.36%
Debt instrument maturity, month and year	2025-04	2025-04
3.125% Senior Notes due April 2026, effective interest rate of 3.28% [Member]
Debt Instrument [Line Items]
Stated interest rate percentage	3.125%	3.125%
Effective interest rate	3.28%	3.28%
Debt instrument maturity, month and year	2026-04	2026-04
3.750% Senior Notes due June 2027, effective interest rate of 3.83% [Member]
Debt Instrument [Line Items]
Stated interest rate percentage	3.75%	3.75%
Effective interest rate	3.83%	3.83%
Debt instrument maturity, month and year	2027-06	2027-06
3.750% Senior Notes due April 2029, effective interest rate of 3.86% [Member]
Debt Instrument [Line Items]
Stated interest rate percentage	3.75%	3.75%
Effective interest rate	3.86%	3.86%
Debt instrument maturity, month and year	2029-04	2029-04

Financing - Additional Information (Detail) - USD ($)	6 Months Ended
Financing - Additional Information (Detail) - USD ($)	Feb. 15, 2020	Aug. 31, 2019
Debt Instrument [Line Items]
Remaining borrowing capacity under revolving credit facility	$ 1,997,000,000
Amount available under credit facility	$ 2,000,000,000
Extended expiration of credit facility	1 year
Fair value of the Company's debt	$ 5,678,000,000	$ 5,419,000,000
Excess (shortfall) of fair value of debt over (from) carrying value	226,600,000	212,700,000
Third Amended and Restated Credit Agreement [Member]
Debt Instrument [Line Items]
Amount available under credit facility	1,600,000,000
Master Extension Agreement [Member]
Debt Instrument [Line Items]
Amount available under credit facility	2,000,000,000
Revolving credit agreement, available additional borrowing capacity	400,000,000
Maximum amount available under credit facility	$ 2,400,000,000
Credit Agreement description	Under the Revolving Credit Agreement, the Company may borrow funds consisting of Eurodollar loans, base rate loans or a combination of both. Interest accrues on Eurodollar loans at a defined Eurodollar rate, defined as LIBOR plus the applicable percentage, as defined in the Revolving Credit Agreement, depending upon the Company’s senior, unsecured, (non-credit enhanced) long-term debt ratings. Interest accrues on base rate loans as defined in the Revolving Credit Agreement. As of February 15, 2020, the Company had $3.2 million of outstanding letters of credit under the Revolving Credit Agreement.
Letters of credit, outstanding	$ 3,200,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Remaining borrowing capacity under revolving credit facility	2,000,000,000
4.000% Senior Notes due November 2020, effective interest rate of 4.43% [Member]
Debt Instrument [Line Items]
Long-term debt	$ 500,000,000	$ 500,000,000
Stated interest rate percentage	4.00%	4.00%

Stock Repurchase Program - Additional Information (Detail) - USD ($)		1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended	266 Months Ended
	Oct. 07, 2019	Mar. 13, 2020	Feb. 15, 2020	Feb. 09, 2019	Feb. 09, 2019	Feb. 15, 2020	Feb. 15, 2020
Equity, Class of Treasury Stock [Line Items]
Stock repurchased cumulative, shares			267,000	422,000	1,076,000	669,967	147,500,000
Purchase of treasury stock					$ 847,097,000	$ 764,846,000	$ 22,188,000,000
Increase in authorization of stock repurchase, value	$ 1,250,000,000
Stock repurchase authorized	$ 23,150,000,000
Remaining value authorized for share repurchases			$ 961,900,000			961,900,000	$ 961,900,000
Retirement of treasury shares			0	$ 0	0	0
Retained Deficit [Member]
Equity, Class of Treasury Stock [Line Items]
Retirement of treasury shares			1,878,595,000	1,706,972,000	1,706,972,000	1,878,595,000
Additional Paid-In Capital [Member]
Equity, Class of Treasury Stock [Line Items]
Retirement of treasury shares			$ 99,686,000	$ 125,442,000	$ 125,442,000	$ 99,686,000
Common Stock [Member]
Equity, Class of Treasury Stock [Line Items]
Share of treasury stock retired			1,912,000	2,563,000	2,563,000	1,912,000
Retirement of treasury shares			$ 19,000	$ 26,000	$ 26,000	$ 19,000
Subsequent Events [Member]
Equity, Class of Treasury Stock [Line Items]
Stock repurchased cumulative, shares		156,035
Purchase of treasury stock		$ 166,100,000

Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		5 Months Ended	6 Months Ended
	Feb. 15, 2020	Feb. 09, 2019	Feb. 09, 2019	Feb. 15, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ (1,776,090)	$ (1,658,616)	$ (1,520,355)	$ (1,713,851)
Balance	(1,711,119)	(1,594,362)	(1,594,362)	(1,711,119)
Foreign Currency and Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(246,558)	(269,472)	(228,899)	(265,598)
Other comprehensive income (loss) before reclassifications	21,178	39,332	(1,241)	40,218
Amounts reclassified from Accumulated other comprehensive income (loss)
Balance	(225,380)	(230,140)	(230,140)	(225,380)
Net Unrealized Gain (Loss) on Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	403	(950)	(873)	591
Other comprehensive income (loss) before reclassifications	180	507	430	(53)
Amounts reclassified from Accumulated other comprehensive income (loss)	(2)	1	1	43
Balance	581	(442)	(442)	581
Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(3,926)	(5,644)	(6,033)	(4,315)
Other comprehensive income (loss) before reclassifications
Amounts reclassified from Accumulated other comprehensive income (loss)	388	389	778	777
Balance	(3,538)	(5,255)	(5,255)	(3,538)
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(250,081)	(276,066)	(235,805)	(269,322)
Other comprehensive income (loss) before reclassifications	21,358	39,839	(811)	40,165
Amounts reclassified from Accumulated other comprehensive income (loss)	386	390	779	820
Balance	$ (228,337)	$ (235,837)	$ (235,837)	$ (228,337)

Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended		5 Months Ended	6 Months Ended
	Feb. 15, 2020	Feb. 09, 2019	Feb. 09, 2019	Feb. 15, 2020
Net Unrealized Gain (Loss) on Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses) on marketable securities, taxes				$ 12
Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net derivative activities, taxes	$ 120	$ 120	$ 240	$ 240

Goodwill and Intangibles - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		5 Months Ended	6 Months Ended
	Feb. 15, 2020	Feb. 09, 2019	Feb. 09, 2019	Feb. 15, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense of intangible assets	$ 1.0	$ 1.0	$ 1.9	$ 1.9

Goodwill and Intangibles - Schedule of Carrying Amounts of Intangible Assets (Detail) $ in Thousands	6 Months Ended
	Feb. 15, 2020 USD ($)
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite Lived, Gross Carrying Amount	$ 30,246
Finite Lived, Accumulated Amortization	(26,555)
Finite Lived, Net Carrying Amount	3,691
Technology [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite Lived, Gross Carrying Amount	870
Finite Lived, Accumulated Amortization	(870)
Finite Lived, Net Carrying Amount	$ 0
Technology [Member] \| Minimum [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Estimated Useful Life	3 years
Technology [Member] \| Maximum [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Estimated Useful Life	5 years
Customer Relationships [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite Lived, Gross Carrying Amount	$ 29,376
Finite Lived, Accumulated Amortization	(25,685)
Finite Lived, Net Carrying Amount	$ 3,691
Customer Relationships [Member] \| Minimum [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Estimated Useful Life	3 years
Customer Relationships [Member] \| Maximum [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Estimated Useful Life	10 years

Leases - Additional Information (Detail) $ in Millions	6 Months Ended
Leases - Additional Information (Detail) $ in Millions	Feb. 15, 2020 USD ($)
Renewal Options And Lease term	The leases have varying terms and expire at various dates through 2040. Retail leases typically have initial terms of between one and 20 years, with one to six optional renewal periods of one to five years each.
Lease Accumulated Amortization	$ 93.4
Additional leases not yet commenced, undiscounted future payments	$ 31.1
Minimum [Member]
Operating lease commencement date	2020
Maximum [Member]
Operating lease commencement date	2022

Lease - Summary of Lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Feb. 15, 2020	Aug. 31, 2019
Assets
Operating	$ 2,579,217	$ 0
Total lease assets	2,873,666
Current
Operating	234,506	0
Noncurrent
Operating	2,494,840	$ 0
Total lease liabilities	2,925,392
Operating lease right-of-use assets
Assets
Operating	2,579,217
Property And Equipment
Assets
Finance	294,449
Current portion of operating lease liablities
Current
Operating	234,506
Accrued expenses and other
Current
Finance	58,864
Operating lease liabilities, less current portion
Noncurrent
Operating	2,494,840
Other long-term liabilities
Noncurrent
Finance	$ 137,182

Leases - Lease Cost (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
Leases - Lease Cost (Detail) - USD ($) $ in Thousands	Feb. 15, 2020	Feb. 15, 2020
Amortization of lease assets		$ 93,400
Total lease cost	$ 94,550	190,390
Depreciation and amortization
Amortization of lease assets	12,872	25,528
Interest expense, net
Interest on lease liabilities	1,282	2,667
Selling, general and administrative expenses
Operating lease cost	$ 80,396	$ 162,195

Leases - Summary Of The Future Maturities Of The Company's Lease Liabilities (Detail) $ in Thousands	Feb. 15, 2020 USD ($)
Leases [Abstract]
2020	$ 30,419
2021	61,560
2022	48,694
2023	33,567
2024	11,328
Thereafter	39,598
Total Lease Payments	225,166
Less: Interest	(29,120)
Present value of lease liabilities	196,046
2020	159,455
2021	320,472
2022	310,948
2023	291,256
2024	267,176
Thereafter	2,232,620
Total Lease Payments	3,581,927
Less: Interest	(852,581)
Present value of lease liabilities	2,729,346
2020	189,874
2021	382,032
2022	359,642
2023	324,823
2024	278,504
Thereafter	2,272,218
Total Lease Payments	3,807,093
Less: Interest	(881,701)
Present value of lease liabilities	$ 2,925,392

Leases - Information On Lease Term And Discount Rate (Detail)	6 Months Ended
	Feb. 15, 2020
Weighted-average remaining lease term (years)
Finance leases – real estate	30 years
Finance leases – vehicles	3 years
Operating leases	15 years
Weighted-average discount rate:
Finance leases – real estate	3.23%
Finance leases – vehicles	2.72%
Operating leases	3.55%

Leases - Other Information Related To Lease Liabilities (Detail) $ in Thousands	6 Months Ended
	Feb. 15, 2020 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases	$ 98,021
Leased assets obtained in exchange for new finance lease liabilities	45,582
Leased assets obtained in exchange for new operating lease liabilities	$ 174,038

Segment Reporting - Additional Information (Detail)	6 Months Ended
Segment Reporting - Additional Information (Detail)	Feb. 15, 2020 Segments Store
Segment Reporting [Abstract]
Number of reportable segments \| Segments	2
Number of automotive parts and accessories locations in the United States, Puerto Rico, Mexico, and Brazil \| Store	6,461

Segment Reporting - Segment Results (Detail) - USD ($) $ in Thousands	3 Months Ended		5 Months Ended	6 Months Ended
	Feb. 15, 2020	Feb. 09, 2019	Feb. 09, 2019	Feb. 15, 2020
Segment Reporting Information [Line Items]
Net sales	$ 2,513,663	$ 2,450,568	$ 5,092,302	$ 5,306,700
Gross profit	1,366,063	1,325,107	2,742,581	2,867,131
Operating, selling, general and administrative expenses	(958,125)	(925,087)	(1,854,742)	(1,959,170)
Interest expense, net	(44,335)	(41,362)	(80,369)	(88,078)
Income before income taxes	363,603	358,658	807,470	819,883
Auto Parts Stores [ Member]
Segment Reporting Information [Line Items]
Net sales	2,464,988	2,402,833	4,996,273	5,208,226
Gross profit	1,331,270	1,291,186	2,674,751	2,797,431
Other [Member]
Segment Reporting Information [Line Items]
Net sales	48,675	47,735	96,029	98,474
Gross profit	$ 34,793	$ 33,921	$ 67,830	$ 69,700