What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-03-15 compared with 2023-12-18 · 129 added, 69 removed, 336 unchanged (37% of the section changed)

34 unchanged sentences

Common stock, par value $ .01 per share, authorized 200,000 shares;

18,984 shares issued and 17,326 shares outstanding as of November 18, 2023;

17,351 shares issued and 17,312 shares outstanding as of February 10, 2024;

18,936 shares issued and 17,857 shares outstanding as of August 26, 2023

6 unchanged sentences

( 2,684,961 )

Total stockholders’ deficit

6 unchanged sentences

Twelve Weeks Ended

Twenty-Four Weeks Ended

(in thousands, except per share data)

14 unchanged sentences

Twelve Weeks Ended

Twenty-Four Weeks Ended

(in thousands)

Other comprehensive income:

Other comprehensive income (loss):

Foreign currency translation adjustments

1 unchanged sentence

Net derivative activities, net of taxes

Total other comprehensive (loss) income

Total other comprehensive income (loss)

Comprehensive income

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Twelve Weeks Ended

Twenty-Four Weeks Ended

(in thousands)

16 unchanged sentences

Investment in tax credit equity investments

Proceeds from disposal of capital assets and other, net

Net cash used in investing activities

2 unchanged sentences

Proceeds from issuance of debt

Repayment of debt

Net proceeds from sale of common stock

1 unchanged sentence

( 1,709,034 )

( 1,799,997 )

Repayment of principal portion of finance lease liabilities

7 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

Twelve Weeks Ended November 18, 2023

Twelve Weeks Ended February 10, 2024

Comprehensive

(in thousands)

Balance at August 26, 2023

Balance at November 18, 2023

( 2,365,815 )

2 unchanged sentences

Total other comprehensive income

Retirement of treasury shares

( 4,128,131 )

Purchase of 84 shares of treasury stock

Issuance of common stock under stock options and stock purchase plans

Share-based compensation expense

Balance at February 10, 2024

( 5,978,916 )

( 4,837,321 )

Twelve Weeks Ended February 11, 2023

Comprehensive

(in thousands)

Balance at November 19, 2022

( 4,162,767 )

( 3,837,923 )

Total other comprehensive income

Retirement of treasury shares

( 4,157,637 )

Purchase of 372 shares of treasury stock

Issuance of common stock under stock options and stock purchase plans

Share-based compensation expense

Balance at November 18, 2023

Balance at February 11, 2023

( 4,471,842 )

( 4,184,170 )

Twenty-Four Weeks Ended February 10, 2024

Comprehensive

(in thousands)

Balance at August 26, 2023

( 2,959,278 )

Twelve Weeks Ended November 19, 2022

( 2,684,961 )

( 4,349,894 )

Total other comprehensive loss

Retirement of treasury shares

( 4,128,131 )

Purchase of 663 shares of treasury stock

( 1,725,047 )

Issuance of common stock under stock options and stock purchase plans

Share-based compensation expense

Balance at February 10, 2024

( 5,978,916 )

( 4,837,321 )

Twenty-Four Weeks Ended February 11, 2023

Comprehensive

5 unchanged sentences

Total other comprehensive income

Retirement of treasury shares

( 4,157,637 )

Purchase of 764 shares of treasury stock

( 1,805,790 )

Issuance of common stock under stock options and stock purchase plans

Share-based compensation expense

Balance at November 19, 2022

Balance at February 11, 2023

( 4,471,842 )

( 4,184,170 )

(1) Inclusive of excise tax of $ 14.4 million for the quarter ended November 18, 2023.

The excise tax is assessed at one percent of the fair value of net stock repurchases after December 31, 2022.

See Notes to Condensed Consolidated Financial Statements.

9 unchanged sentences

(“AutoZone” or the “Company”) Annual Report on Form 10-K for the year ended August 26, 2023.

Operating results for the twelve weeks ended November 18, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 31, 2024.

Operating results for the twelve and twenty-four weeks ended February 10, 2024 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 31, 2024.

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.

4 unchanged sentences

This ASU is effective for all companies for fiscal years beginning after December 15, 2022, including interim periods within those years, and requires retrospective adoption.

The Company adopted the required disclosures of this standard on a retrospective basis beginning with its first quarter ending November 18, 2023.

The adoption of ASU 2022-04 did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures.

The Company adopted this standard on a retrospective basis beginning with its first quarter ended November 18, 2023.

The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements.

Refer to “Note F – Supplier Financing Programs.”

6 unchanged sentences

Early adoption is permitted.

The Company will adopt this standard beginning with our fiscal year ending August 30, 2025.

The Company will adopt this standard with our fiscal 2025 annual filing.

The Company is currently evaluating these new disclosure requirements and the impact of adoption.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) .

The amendments in this ASU are intended to enhance the transparency of income tax information by updating income tax disclosure requirements.

The guidance is effective for public entities for annual periods beginning after December 15, 2024, and early adoption is permitted.

The amendments in this ASU should be applied on a prospective basis;

however, retrospective application is permitted.

The Company will adopt this standard with our fiscal 2026 annual filing.

The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact.

2 unchanged sentences

Inventory cost has been determined using the last-in, first-out (“LIFO”) method stated at the lower of cost or net realizable value for domestic inventories and the weighted average cost method stated at the lower of cost or net realizable value for Mexico and Brazil inventories.

The Company’s policy is not to write up inventory in excess of replacement cost.

Due to price inflation on the Company’s merchandise purchases, primarily driven by increased freight costs, the Company’s LIFO credit reserve

balance was $ 57.0 million at November 18, 2023, and $ 59.0 million at August 26, 2023.

Increases to the Company’s LIFO credit reserve balance are recorded as a non-cash charge to cost of sales and decreases are recorded as a non-cash benefit to cost of sales.

The Company’s LIFO credit reserve balance decreased to $ 43.0 million at February 10, 2024 from $ 59.0 million at August 26, 2023 as a result of net deflation, primarily driven by reduced freight costs.

Until the credit reserve balance is exhausted, decreases are recorded as a non-cash benefit to cost of sales and increases are recorded as a non-cash charge to cost of sales.

Debit LIFO reserve balances are not recorded as the Company’s policy is not to write up inventory in excess of replacement cost.

Note C – Variable Interest Entities

3 unchanged sentences

The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities.

As of November 18, 2023, the Company held tax credit equity investments that were deemed to be VIE’s and determined that it was not the primary beneficiary of the entities, as it did not have the power to direct the activities that most significantly impacted the entity and accounted for this investment using the equity method.

The Company’s maximum exposure to losses is generally limited to its net investment, which was $ 23.8 million as of November 18, 2023.

As of February 10, 2024, the Company held tax credit equity investments that were deemed to be VIE’s and determined that it was not the primary beneficiary of the entities, as it did not have the power to direct the activities that most significantly impacted the entity and accounted for this investment using the equity method.

The Company’s maximum exposure to losses is generally limited to its net investment, which was $ 29.9 million as of February 10, 2024.

Note D – Fair Value Measurements

8 unchanged sentences

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

November 18, 2023

February 10, 2024

(in thousands)

5 unchanged sentences

Other long-term assets

At November 18, 2023, the fair value measurement amounts for assets and liabilities recorded in the accompanying Condensed Consolidated Balance Sheets consisted of short-term marketable debt securities, which are included within Other current assets, and long-term marketable debt securities, which are included in Other long-term assets.

At February 10, 2024 and August 26, 2023, the fair value measurement amounts for assets and liabilities recorded in the accompanying Condensed Consolidated Balance Sheets consisted of short-term marketable debt securities, which are included within Other current assets, and long-term marketable debt securities, 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.

8 unchanged sentences

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

November 18, 2023

February 10, 2024

(in thousands)

9 unchanged sentences

Asset-backed securities and other

The marketable debt securities held at November 18, 2023, had effective maturities ranging from less than one year to approximately twelve years .

At November 18, 2023, the Company held 73 securities that are in an unrealized loss position of approximately $ 2.5 million.

The marketable debt securities held at February 10, 2024 had effective maturities ranging from less than one year to approximately twelve years .

In evaluating whether a credit loss exists for the securities, the Company considers factors such as the severity of the loss position, the credit worthiness of the investee, the term to maturity and the intent and ability to hold the investments until maturity or until recovery of fair value.

An allowance for credit losses was deemed unnecessary given consideration of the factors above.

The Company did not realize any material gains or losses on its marketable debt securities during the twelve week period ended November 18, 2023 and the comparable prior year period.

Included above in total available-for-sale marketable debt securities are $ 106.4 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.

The Company did not realize any material gains or losses on its marketable debt securities during the twenty-four week period ended February 10, 2024 and the comparable prior year period.

Included above in total available-for-sale marketable debt securities are $ 107.9 million and $ 105.0 million of marketable debt securities transferred by the Company’s insurance captive to a trust account to secure its obligations to an insurance company related to future workers’ compensation and casualty losses as of February 10, 2024 and August 26, 2023, respectively.

Note F – Supplier Financing Programs

2 unchanged sentences

Supplier participation is optional and our obligations to our suppliers, including the amount and dates due, are not impacted by our suppliers’ decision to enter into an agreement with a third-party financial institution.

As of November 18, 2023 and August 26, 2023, the Company had supplier obligations outstanding that had been confirmed under these arrangements of $ 4.8 billion for each period, which are included in Accounts payable and $ 209.6 million and $ 224.8 million, respectively, which are included in Other long-term liabilities in the Condensed Consolidated Balance Sheets.

As of February 10, 2024 and August 26, 2023, the Company had supplier obligations outstanding that had been confirmed under these arrangements of $ 4.8 billion for each period, which are included in Accounts payable and $ 197.6 million and $ 224.8 million, respectively, which are included in Other long-term liabilities in the Condensed Consolidated Balance Sheets.

Note G – Litigation

19 unchanged sentences

6.550 % Senior Notes due November 2033 , effective interest rate 6.71 %

Commercial paper, weighted average interest rate 5.43 % at November 18, 2023 and August 26, 2023

Commercial paper, weighted average interest rate 5.43 % at February 10, 2024 and August 26, 2023

Total debt before discounts and debt issuance costs

7 unchanged sentences

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

As of November 18, 2023, the Company had no outstanding borrowings and $ 1.8 million of outstanding letters of credit under the Revolving Credit Agreement.

As of February 10, 2024 and August 26, 2023, the Company had no outstanding borrowings and $ 1.8 million of outstanding letters of credit under the Revolving Credit Agreement.

The Company also maintains a letter of credit facility that allows it to request the participating bank to issue letters of credit on its behalf up to an aggregate amount of $ 25 million.

The letter of credit facility is in addition to the letters of credit that may be issued under the Revolving Credit Agreement.

As of November 18, 2023, the Company had $ 25.0 million in letters of credit outstanding under the letter of credit facility, which expires in June 2025.

In addition to the outstanding letters of credit issued under the committed facilities discussed above, the Company had $ 120.5 million in letters of credit outstanding as of November 18, 2023.

As of February 10, 2024 and August 26, 2023, the Company had $ 16.1 million and $ 25.0 million, respectively, in letters of credit outstanding under the letter of credit facility, which expires in June 2025.

In addition to the outstanding letters of credit issued under the committed facilities discussed above, the Company had $ 128.4 million and $ 107.2 million in letters of credit outstanding as of February 10, 2024 and August 26, 2023, respectively.

These letters of credit have various maturity dates and were issued on an uncommitted basis.

As of November 18, 2023, the $ 1.1 billion commercial paper borrowings and the $ 300 million 3.125 % Senior Notes due April 2024 were classified as long-term in the accompanying Consolidated Balance Sheets as the Company currently has the ability and intent to refinance them on a long-term basis through available capacity under its Revolving Credit Agreement.

As of November 18, 2023, the Company had $ 2.2 billion of availability under its Revolving Credit Agreement, without giving effect to commercial paper borrowings, which would allow it to replace these short-term obligations with a long-term financing facility.

As of February 10, 2024 and August 26, 2023, the $ 1.2 billion commercial paper borrowings and the $ 300 million 3.125 % Senior Notes due April 2024 were included in Long-term debt in the accompanying Condensed Consolidated Balance Sheets as the Company currently has the ability and intent to refinance them on a long-term basis through available capacity under its Revolving Credit Agreement.

As of February 10, 2024 and August 26, 2023, the Company had $ 2.2 billion of availability under its Revolving Credit Agreement, without giving effect to commercial paper borrowings, which would allow it to replace these short-term obligations with a long-term financing facility.

On October 25, 2023, the Company issued $ 500 million in 6.250 % Senior Notes due November 2028 and $ 500 million in 6.550 % Senior Notes due November 2033.

Proceeds from the debt issuances were used for general corporate purposes.

The Senior Notes contain a provision that repayment may be accelerated if the Company experiences a change of control (as defined in the agreements).

The Senior Notes contain a provision that repayment may be accelerated if the Company experiences both a change of control and a rating event (both as defined in the agreements).

The Company’s borrowings under its Senior Notes contain minimal covenants, primarily restrictions on liens.

1 unchanged sentence

Interest for the Senior Notes is paid on a semi-annual basis.

The fair value of the Company’s debt was estimated at $ 8.2 billion as of November 18, 2023, and $ 7.3 billion as of August 26, 2023, based on the quoted market prices for the same or similar issues or on the current rates available to the Company for debt of the same terms (Level 2).

Such fair value is less than the carrying value of debt by $ 372.0 million and $ 406.6 million at November 18, 2023 and August 26, 2023, respectively, which reflects their face amount, adjusted for any unamortized debt issuance costs and discounts.

As of November 18, 2023, the Company was in compliance with all covenants and expects to remain in compliance with all covenants under its borrowing arrangements.

The fair value of the Company’s debt was estimated at $ 8.4 billion as of February 10, 2024, and $ 7.3 billion as of August 26, 2023, based on the quoted market prices for the same or similar issues or on the current rates available to the Company for debt of the same terms (Level 2).

Such fair value is less than the carrying value of debt by $ 189.0 million and $ 406.6 million at February 10, 2024 and August 26, 2023, respectively, which reflects their face amount, adjusted for any unamortized debt issuance costs and discounts.

As of February 10, 2024, the Company was in compliance with all covenants and expects to remain in compliance with all covenants under its borrowing arrangements.

Note I – Stock Repurchase Program

From January 1, 1998 to November 18, 2023, the Company has repurchased a total of 154.6 million shares of its common stock at an aggregate cost of $ 35.3 billion, including 579.7 thousand shares of its common stock at an aggregate cost of $ 1.5 billion (inclusive of excise tax of $ 14.4 million) during the twelve week period ended November 18, 2023.

The excise tax is assessed at one percent of the fair market value of net stock repurchases after December 31, 2022.

On June 14, 2023, the Board voted to authorize the repurchase of an additional $ 2.0 billion of the Company’s common stock in connection with its ongoing share repurchase program, which raised the total value of shares authorized to be repurchased to $ 35.7 billion.

Considering the cumulative repurchases as of November 18, 2023, the Company had $ 333.1 million remaining under the Board’s authorization to repurchase its common stock.

Subsequent to November 18, 2023 and through December 11, 2023, the Company has repurchased 40.1 thousand shares of its common stock at an aggregate cost of $ 106.0 million.

From January 1, 1998 to February 10, 2024, the Company has repurchased a total of 154.7 million shares of its common stock at an aggregate cost of $ 35.5 billion, including 663.4 thousand shares of its common stock at an aggregate cost of $ 1.7 billion during the twenty-four week period ended February 10, 2024.

On December 20, 2023, the Board voted to authorize the repurchase of an additional $ 2.0 billion of the Company’s common stock in connection with its ongoing share repurchase program, which raised the total value of shares authorized to be repurchased to $ 37.7 billion.

Considering the cumulative repurchases as of February 10, 2024, the Company had $ 2.1 billion remaining under the Board’s authorization to repurchase its common stock.

During the twenty-four week period ended February 10, 2024, the Company retired 1.7 million shares of treasury stock which had been previously repurchased under the Company’s share repurchase program.

The retirement increased Retained deficit by $ 4.1 billion and decreased Additional paid-in capital by $ 142.4 million.

During the comparable prior year period, the Company retired 2.1 million shares of treasury stock, which increased Retained deficit by $ 4.2 billion and decreased Additional paid-in capital by $ 143.4 million.

Subsequent to February 10, 2024 and through March 8, 2024, the Company has repurchased 63.0 thousand shares of its common stock at an aggregate cost of $ 180.7 million.

Note J – Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss includes foreign currency translation adjustments, activity for interest rate swaps and treasury rate locks that qualified as cash flow hedges and unrealized gains (losses) on available-for-sale marketable debt securities.

Changes in Accumulated other comprehensive loss for the twelve week periods ended November 18, 2023 and November 19, 2022 consisted of the following:

Changes in Accumulated other comprehensive loss for the twelve week periods ended February 10, 2024 and February 11, 2023 consisted of the following:

(in thousands)

1 unchanged sentence

on Securities

Balance at August 26, 2023

Other comprehensive income (loss) before reclassifications (2)(3)

Balance at November 18, 2023

Other comprehensive income before reclassifications (2)(3)

Amounts reclassified from Accumulated other comprehensive loss (3)

Balance at February 10, 2024

(in thousands)

and Other (1)

on Securities

Balance at November 19, 2022

Other comprehensive income before reclassifications (2)(3)

Amounts reclassified from Accumulated other comprehensive loss (3)

Balance at February 11, 2023

Changes in Accumulated other comprehensive loss for the twenty-four week periods ended February 10, 2024 and February 11, 2023 consisted of the following:

(in thousands)

2 unchanged sentences

Balance at August 26, 2023

Other comprehensive (loss) income before reclassifications (2)(3)

Amounts reclassified from Accumulated other comprehensive loss (3)

Balance at February 10, 2024

(in thousands)

and Other (1)

on Securities

Balance at August 27, 2022

Other comprehensive income (loss) before reclassifications (2)(3)

Amounts reclassified from Accumulated other comprehensive loss (3)

Balance at November 19, 2022

Balance at February 11, 2023

(1) Foreign currency is shown net of U.S.

13 unchanged sentences

Stock Options:

The Company made stock option grants for 130,723 shares during the twelve week period ended November 18, 2023 and granted options to purchase 157,113 shares during the comparable prior year period.

The Company made stock option grants for 133,466 shares during the twenty-four week period ended February 10, 2024 and granted options to purchase 157,870 shares during the comparable prior year period.

The Company grants options to purchase common stock to certain of its employees under its equity incentive plans at prices equal to or above the market value of the stock on the date of grant.

4 unchanged sentences

All other employee grants assume a 10 % forfeiture rate, which is based on historical experience.

The weighted average fair value of the stock option awards granted during the twelve week period ended November 18, 2023 and November 19, 2022, using the Black-Scholes-Merton multiple-option pricing valuation model, was $ 913.31 and $ 760.82 per share, respectively, using the following weighted average key assumptions:

Twelve Weeks Ended

The weighted average fair value of the stock option awards granted during the twenty-four week periods ended February 10, 2024 and February 11, 2023, using the Black-Scholes-Merton multiple-option pricing valuation model, was $ 913.56 and $ 760.98 per share, respectively, using the following weighted average key assumptions:

Twenty-Four Weeks Ended

Expected price volatility

3 unchanged sentences

Dividend yield

During the twelve week period ended November 18, 2023, and the comparable prior year period, 44,644 and 57,092 stock options, respectively, were exercised at a weighted average exercise price of $ 931.85 and $ 725.86 , respectively.

As of November 18, 2023, total unrecognized share-based expense related to stock options, net of estimated forfeitures, was approximately $ 177.9 million, before income taxes, which we expect to recognize over an estimated weighted average period of 3.5 years.

During the twenty-four week period ended February 10, 2024, and the comparable prior year period, 112,394 and 96,080 stock options, respectively, were exercised at a weighted average exercise price of $ 848.57 and $ 709.98 , respectively.

As of February 10, 2024, total unrecognized share-based expense related to stock options, net of estimated forfeitures, was approximately $ 152.9 million, before income taxes, which we expect to recognize over an estimated weighted average period of 3.3 years.

Restricted Stock Units:

1 unchanged sentence

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 requisite service period, less estimated forfeitures, which are consistent with stock option forfeiture assumptions.

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 November 18, 2023, total unrecognized stock-based compensation expense related to nonvested restricted stock unit awards, net of estimated forfeitures, was approximately $ 12.0 million, before income taxes, which we expect to recognize over an estimated weighted average period of 2.9 years.

Transactions related to restricted stock units for the twelve weeks ended November 18, 2023 were as follows:

Average Grant

Date Fair Value

Nonvested at August 26, 2023

Nonvested at November 18, 2023

Total share-based compensation expense (a component of Operating, selling, general and administrative expenses) for the twelve week period ended November 18, 2023, was $ 22.9 million and $ 19.0 million for the comparable prior year period.

For the twelve week periods ended November 18, 2023 and November 19, 2022, 169,798 and 87,696 stock options, respectively, were excluded from the diluted earnings per share computation because they would have been anti-dilutive.

The Company made grants of 3,173 and 3,584 restricted stock unit awards at weighted average grant date fair values of $ 2,560.56 and $ 2,267.40 , respectively, during the twenty-four week periods ended February 10, 2024 and February 11, 2023.

During the twenty-four week period ended February 10, 2024, and the comparable prior year period, 4,741 and 6,635 restricted stock unit awards, respectively, were vested at a weighted average grant date fair value of $ 1,617.00 and $ 1,276.65 , respectively.

As of February 10, 2024, total unrecognized stock-based compensation expense related to nonvested restricted stock unit awards, net of estimated forfeitures, was approximately $ 9.7 million, before income taxes, which we expect to recognize over an estimated weighted average period of 2.8 years.

Total share-based compensation expense (a component of Operating, selling, general and administrative expenses) for the twelve and twenty-four week periods ended February 10, 2024, was $ 23.0 million and $ 46.0 million, respectively.

For the comparable prior year periods, total share-based compensation expense was $ 23.4 million and $ 42.4 million, respectively.

For the twelve and twenty-four week periods ended February 10, 2024, 135,981 and 107,267 , respectively, stock options were excluded from the diluted earnings per share computation because they would have been anti-dilutive.

For the comparable prior year periods, 156,925 and 122,072 anti-dilutive stock options were excluded from the dilutive earnings per share computation.

See AutoZone’s Annual Report on Form 10-K for the year ended August 26, 2023 and other filings with the SEC for a discussion regarding the methodology used in developing AutoZone’s assumptions to determine the fair value of the

2 unchanged sentences

Note L – Segment Reporting

The Company’s operating segments (Domestic Auto Parts, Mexico and Brazil) are aggregated as one reportable segment:

The Company’s primary operating segments (Domestic Auto Parts, Mexico and Brazil) are aggregated as one reportable segment:

Auto Parts Stores.

1 unchanged sentence

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 26, 2023.

The Auto Parts Stores segment is a retailer and distributor of automotive replacement parts and accessories through the Company’s 7,165 stores in the U.S., Mexico and Brazil.

The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 7,191 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, repair, collision and shop management software used in the automotive repair industry and E-commerce, which includes direct sales to customers through www.autozone.com for sales that are not fulfilled by local stores.

The operating segments include ALLDATA, which produces, sells and maintains automotive diagnostic, repair and shop management software used in the automotive repair industry and E-commerce, which includes direct sales to customers through www.autozone.com for sales that are not fulfilled by local stores.

The Company evaluates its reportable segment primarily on the basis of net sales and segment profit, which is defined as gross profit.

1 unchanged sentence

Twelve Weeks Ended

Twenty-Four Weeks Ended

(in thousands)

5 unchanged sentences

( 1,260,026 )

( 2,701,822 )

( 2,531,615 )

Interest expense, net

5 unchanged sentences

We have reviewed the accompanying condensed consolidated balance sheet of AutoZone, Inc.

(the Company) as of November 18, 2023, the related condensed consolidated statements of income, comprehensive income, stockholders’ deficit and cash flows for the twelve week periods ended November 18, 2023 and November 19, 2022, and the related notes (collectively referred to as the “condensed consolidated interim financial statements”).

(the Company) as of February 10, 2024, the related condensed consolidated statements of income, comprehensive income and stockholders’ deficit for the twelve and twenty-four week periods ended February 10, 2024 and February 11, 2023, the condensed consolidated statements of cash flows for the twenty-four week periods ended February 10, 2024 and February 11, 2023 and the related notes (collectively referred to as the “condensed consolidated interim financial statements”).

Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated interim financial statements for them to be in conformity with U.S.

13 unchanged sentences

Memphis, Tennessee

December 18, 2023

March 15, 2024

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements