Segment Reporting

6 Months Ended

Feb. 09, 2013

Segment Reporting

Note N – Segment Reporting

Three of 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 in its Annual Report on Form 10-K for the year ended August 25, 2012.

The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 5,070 stores in the United States, Puerto Rico, 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 three operating segments that are not separately reportable due to the materiality of these operating segments, including ALLDATA, which produces, sells and maintains diagnostic and repair information software used in the automotive repair industry, E-commerce, which includes direct sales to customers through www.autozone.com, and AutoAnything, which includes direct sales to customers through www.autoanything.com.

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

	Twelve Weeks Ended						Twenty-Four Weeks Ended
(in thousands)	February 9, 2013			February 11, 2012			February 9, 2013			February 11, 2012
Net Sales
Auto Parts Stores	$	1,796,280		$	1,762,903		$	3,745,003		$	3,647,041
Other		58,918			41,166			101,235			81,370
Total	$	1,855,198		$	1,804,069		$	3,846,238		$	3,728,411
Segment Profit
Auto Parts Stores	$	924,704		$	894,493		$	1,924,039		$	1,846,850
Other		37,277			31,722			69,808			62,992
Gross profit		961,981			926,215			1,993,847			1,909,842
Operating, selling, general and administrative expenses		(644,410	)		(625,564	)		(1,312,999	)		(1,268,257	)
Interest expense, net		(41,323	)		(38,923	)		(82,428	)		(78,017	)
Income before income taxes	$	276,248		$	261,728		$	598,420		$	563,568