Autozone, Inc. .docx

Autozone, Inc.
1
Autozone, Inc.
2
Case Study 30
BNFN 4304 – Financial Policy
Instructor: Mr. Masood Aijazi
Done by:
Halah Bahanshal 1510635
Yusra Bashanfar 1410057
Yara Al-Feki 1410435
Hala Rajab 1310257
Due: 3rd of April, 2018
Introduction: 3
Question 1 4
Question 2 7
Question 3 11
Question 4 12
Question 5 15
Conclusion 17
References 18

Introduction:
AutoZone first store opened in 1979 under the name Auto Shack
in Forrest City, Arizona; while, in 1987 the name was changed
to Autozone. Autozone implemented the first electronic auto
parts catalog for the retail industry. After four years of steady
growth, Autozone went public and it was listed in New York
Stock Exchange in 1991. By 2012, AutoZone was one of the
biggest leading company in retailing and distributing
automotive parts and accessories in the United States with more
than 65,000 employees and 4,813 stores located in every state
contiguous United States, Mexico, Puerto Rico. In fact,
AutoZone has performed well in terms of profitability and stock
price appreciation over the previous 15 years.
In specific, this case is about Mark Johnson, a portfolio
manager of Johnson & Associates, who was reviewing his
holdings, including his position in AutoZone. Johnson was
concerned that Edward Lampert’s (a prominent shareholder
who had begun liquidating his position in AutoZone) reduced
position could lead the company to stop using share repurchases
as a method of distributing cash flows to shareholders. In this
case, students provide an overview of AutoZone’s stock price
performed over the previous five years, and how does a stock
repurchase work and its impact on EPS and ROIC as well.
Moreover, the case lists a number of alternative uses for the
free cash flows generated by Autozone if they decided to stop
the repurchases program they are undertaking. At the end,
recommendation is given to Mark Johnson about his holdings

of AutoZone shares and what should he do to deal with
it.Question 1
How has AutoZone’s stock price performed over the previous
five years? What other financial measures can you cite that are
consistent with the stock price performance?
Autozone shareholders had enjoyed strong price appreciation
since 1997, with an average annual return of 11.5%. The stock
price had dramatically increased in the previous five years
reaching $348. In 2008, U.S. economy had gone through the
worst recession since the great depression, and the recovery that
followed had been unusually slow. Strong appreciation of stock
price was a result of the recession of the U.S. economy because
auto-part business was somewhat a counter cyclical industry. To
illustrate more, the company’s growth and stock price are
directly related and connected to the economy and to the
number of miles driven by a car. When the economy struggled
and unemployment was high, fewer new cars were purchased
and older cars were kept on the road longer, requiring more
frequent repairs. As a result the auto parts retail business
enjoyed strong top line growth.By 2012, AutoZone had become
the leading retailer of automotive replacement parts and
accessories in the United States with more than 65,000
employees and 4,813 stores.
As illustrated in Exhibit 1,the financial statements of Autozone
reflect its stock price performance, net sales increased from
$6,169,804 to $8,072,973 from 2007 till 2011 which is equal a
30.85% increase. Moreover, cost of sales also increased from
$3,105,554 until $3,953,510 in the same period which is equal a
27.430% increase. The increase in cost of sales is lower than
the increase in net sales which results in an increase in gross
profit from $3,064,250 till $4,119,463 in the previous five years
which is equal to 34.4%. Furthermore, Autozone’s operating
profit increased by 41.65% ,where it was $1,055,266 in 2007
reaching to $1,494,803 in 2011 indicating the efficiency and the
profitability of the company. EPS is strongly related and is a
key driver of the stock price for Autozone company. Where

basic EPS increase by 130.97% from 2007 till 2011, and the
diluted EPS increase by 128.25% through the same period.
AutoZone Income Statements
(in thousands, except per share)
August 27,
2011
August 28,
2010
August 29, 2009
August 30, 2008
August 25,
2007
% change
Net sales
$8,072,973
$7,362,618
$6,816,824
$6,522,706
$6,169,804
30.85%
Cost of sales
3,953,510
3,650,874
3,400,375
3,254,645
3,105,554
27.30%
Gross profit
4,119,463
3,711,744
3,416,449
3,268,061

3,064,250
34.44%
Operating profit
1,494,803
1,319,414
1,176,062
1,124,134
1,055,266
41.65%
Net income
$848,974
$738,311
$657,049
$641,606
$595,672
42.52%
Wt. avg. shares for basic EPS
42,632
48,488
55,282
63,295
69,101
-38.30%
Effect of dilutive stock equivalents
971
816
710
580
743
30.69%
Adj. wt. avg. shares for diluted EPS
43,603
49,304
55,992
63,875
69,844

-37.57%
Basic earnings per share
$19.91
$15.23
$11.89
$10.14
$8.62
130.97%
Diluted earnings per share
$19.47
$14.97
$11.73
$10.04
$8.53
128.25%
Additionally, Autozone's management also focused on after tax
return on invested capital( ROIC) as the primary way to
measure value creation for the company's capital providers. In
1998, Autozone had restrained capital to its equity investors
through share repurchases which is funded through strong
operating cash flow and debt issuance. Thus, resulting in
reduction of the shares outstanding, which enhanced earning per
share. Share outstanding reduction reached 39% from 2007 to
2011, and the shareholders’ equity reached negative 1.2 billion
in 2011. The net result was that Autozone’s invested capital had
remained fairly constant since 2007, which combined of both
increased earning and create attractive ROIC level as shown in
exhibit 9 in the case. These two reasons result in the stock price
increasing in the previous five years. Autozone cash flow
statement in Exhibit 4 shows that net cash provided by
operating activities was $1,291,538 in 2011 and the debt is
$500,000, showing that the purchases of treasury stock totaling
$1,466,802 in 2001 was heavily funded by the free cash flow
and by debt as well.

August 27, 2011
August 28, 2010
August 29, 2009
August 30, 2008
August 25, 2007
Net cash provided by operating activities
1,291,538
1,196,252
923,808
921,100
845,194
Net cash used in investing activities
(318,994)
(307,447)
(263,722)
(243,150)
(228,715)
Cash flows from financing activities:
Proceeds from issuance of debt
500,000
-
500,000
750,000
-
Purchase of treasury stock
(1,466,802)
(1,123,655)
(1,300,002)
(849,196)
(761,887)
Question 2

How does a stock repurchase work? Why would a company use
this tactic? What impact does it have on: EPS? ROIC?
When we talk about free cash flow in a company, the first
decision they have to take is whether to retain the cash flow or
distribute it to the firm’s capital providers as a return to their
investment. If the firm chooses to retain cash flow, it will invest
in new projects or add to the cash reserves. If the firm chooses
to distribute cash flow, it can do so by repurchasing shares or
paying dividends. The way a firm chooses between alternatives
ways to pay out cash to shareholders is called Payout policy.
A share repurchase, also known as share buyback, is “the
transaction in which the stock issuer buys back its shares from
investors”. Once Shares are repurchased, these shares are
generally held in the corporate treasury and become treasury
shares (or treasury stock). The Accounting transaction that is
done to record it is that the dollar amount of the stocks
repurchased is debited to the Treasury Stock account and cash is
credited. The account of Treasury Stock cannot be considered as
an asset/investment, because stocks purchased are from the
company’s own shares. Treasury Stock account is a contra-
stockholders equity account and it is mainly found in the
Balance sheet, specifically stockholders equity section, as a
negative item.
So what are the motives and reasons behind repurchasing
shares,
· Management signaling that stock is undervalued.
Some companies use buybacks for signaling to the market, in
general, that their shares are undervalued. This is possibly
because inside information is more positive than the public’s
perception about the company’s strength. A large volume of
stock buyback in a given time signals that a wide number of
stocks in this specific market are undervalued.
· Attaining an advantage of income tax
When a company decide to distribute its cash flow and thus
returning part of their cash to shareholders, the option of Share
repurchases offer a tax advantage over dividends. In fact, when

shareholders receive cash dividends, dividends are treated as
ordinary income and the receipts are taxed at the current
personal income tax rate in the same year dividends are
received. On the other side, when companies buy back their own
shares, any capital gains created for the shareholders are not
taxed until the gains are realized; also, capital gains are taxed at
a much lower rate.
· Offset share increases from executive stock options.
· Maintain the optimal capital structure
One other reason behind stock buybacks comprises the
companies’ efforts to maintain the looked-for capital structure.
The existence of an optimal capital is believed by many finance
experts, which is the correct mix of debt and equity financing
that is most advantageous and beneficial for a company. Hence,
companies usually use purchasing of treasury stock to alter and
maintain such optimum balance of debt and equity levels.
· Flexibility
The share buyback is more flexible in nature than payment of
dividends. Cash dividends need to be paid immediately,
however, the share repurchase program is conducted over
extended period of time. Also, the company is under no
compulsion to conduct the repurchase program; It can cancel it
or modify it according to the company needs. However, a
company will never want to stop or cancel dividends payment.
Earnings per Share (EPS)
The most common and also the most important accounting item
of measurement for valuing a company is its Earnings per Share
(EPS). EPS is figured by dividing the total earnings of a
specific period by the number of shares outstanding (stock). For
the same level of earnings, if the number of outstanding shares
is reduced through stock buyback, the company’s EPS is
spontaneously increased without any corresponding increase in
total earnings. High EPS companies are regarded as a more
favorable option than companies with lower EPS. Therefore, by
purchasing shares back, EPS increases and stock prices would
probably be on the rise.

Return on Invested capital (ROIC)
Return on Invested capital, one of the best metrics to evaluate
corporates performance, is also affected by Share repurchases.
Return on Invested capital, one of the best metrics to evaluate
corporates performance, is also affected by Share repurchases.
When ROIC is calculated non-economic accounting issues and
financial leverage impacts are removed. AutoZone’s
management management focused on after-tax return on
invested capital (ROIC) as primary way to measure value
creation for the company's capital providers. As a result, while
Autozone management invested in opportunities that led to top
line result revenue growth and increased margins, it also
focused on capital stewardship. What resulted was an
aggressively managed working capital at the store level through
the efficient use of inventory as well as attractive terms from
suppliers in 1998. On the balance sheet, a share repurchase will
reduce a company’s cash holdings, and thus reduce the total
assets and total shareholders’ equity. This is clearly shown in
the case of Autozone where there was a significant reduction of
both the shares outstanding and equity capital. In particular,
shares outstanding had dropped 39% from 2007 to 2011, and
shareholders equity had been reduced to a negative $1.2 billion
in 2011.
Based on exhibit 9, which shows the relation between share
repurchased and ROIC, ROIC improve subsequent to a share
repurchase. The chart also shows the strong increase of ROIC
after an extensive repurchase program is undergone by
Autozone. Together with share repurchase program, the obvious
increase in growth of Autozone when the economy recession
occurred had a large impact on creating a desirable ROIC. At
the end, AutoZone’s ROIC is clearly demonstrating that the
company is proposing strong returns for its investors.
Question 3
How much of AutoZone’s stock price performance should we
attribute to the share repurchase program?
The increase in the company’s stock price is somehow

directly associated the company repurchase programs. Due to
the fact that a company’s repurchase program can result to the
following:
· An increase in the price of the stock.
· Created a strong earning per share (EPS)
· The reduction in the number of shares outstanding
The company’s earnings per share is absorbed by investors in
order to measure the company’s performance. Furthermore, the
company has a total of 43,603 shares outstanding in 2011
compared to 69,844 shares outstanding in 2007 which shows a
reduction in number of shares. This reduction in shares
outstanding resulted to an increase in diluted earnings per share
by 128% through previous five years. Increasing diluted
earnings per share from an $8.53 per share in 2007 to $19.47
per share in 2011. Moreover, the AutoZone’s stock price has
shown an increase in the same time period from $120 to $298.
Thus, the increase of shares outstanding will result to lower the
price of the stocks on the other hand, the decrease of price of
stocks will result to an increase in number of shares
outstanding. However, the stock price performance of Autozone
company was linked greatly to the good performance.
Net Income
Adj. wt. avg. shares for diluted EPS
Stock price
EPS before share repurchase
EPS after share repurchase
EPS differences
P/E Ratio
Stock Price contributed by Share Repurchase
Aug.25,2007
$595,672
69844

120.5
N/A
$8.53
N/A
14.13
N/A
Aug.30,2008
$641,606
63875
138
$9.19
$10.04
$0.85
13.75
11.73
Aug.29,2009
$675,049
55992
149.6
$10.29
$11.73
$1.44
12.75
18.41
Aug.28,2010
$738,311
49304
211.66
$13.19
$14.97
$1.78
14.14
25.22
Aug.27,2011
$848,974
43603

297.96
$17.22
$19.47
$2.25
15.3
34.45
Question 4
Assume that AutoZone is planning to stop its share repurchase
program. What would be the best alternative use of those cash
flows? Why?
If AutoZone decided to stop its share repurchase program, the
company could use its cash flows in several ways. These
alternatives include distributing their cash flows through
dividends, increasing the number of stores, acquiring other
auto-parts retail stores, or retire some of the accumulated debt
that the company has made over the years.
After carefully looking at the alternatives, expanding the
business using the company’s operational cash flows is
considered a good alternative, which could be done in one of
two ways; either by initiating new stores (both domestically and
nationally) or by acquiring other existing auto-parts retail
stores. This expansion or growth is essential for AutoZone in
order to maintain the company’s position as the leading auto-
parts retailer in the United States and bar its competitors from
gaining a foothold in those new markets. AutoZone Inc. already
owns several stores abroad (outside the United States), in
Puerto Rico as well as Mexico. However, AutoZone’s
management must bear in mind the risk associated with such
expansion. There is no assurance that the expansion would bring
along the same returns that AutoZone is currently witnessing.
Since 1998, AutoZone was able to acquire almost 800 stores
from its rivals. Therefore, AutoZone is well-aware of using its
operational cash flows in acquiring its rivals’ existing stores as
an alternative to the share repurchasing program. These stores
would be considered a good investment as it would mean that

these stores would become productive and functional faster than
initiating new stores (due to the fact that they are already built
and available). However, there are a few drawbacks to this
strategy as well. The auto-parts market is considered an
oversaturated or mature market which means that there are a
few competitors to be acquired in the market (fewer targets for
acquisition). Moreover, this also indicates that the acquisition
action could be blocked by the U.S. Department of Justice (as it
would be considered a potential act of monopoly).
Hence, we suggest that AutoZone should not consider using its
operational cash flows to grow its business because:
· The auto-part retail market is already mature/oversaturated
· Fewer locations are available for expansion (domestically)
· Overseas expansion is considered risky and uncertain
· Acquisition of a higher proportion of the market would be
difficult without violating antitrust policy
Moreover, Autozone could use part or all of its operating cash
flows to retire some of the debts that the company had
accumulated over the years, where much of the debt had been
used to fund the share repurchase. However, with a negative
book- equity position and a such a large debt position, it is
recommended that Autozone could at least use part of its cash
flow to repay debt. This is because of two reasons: the first one
is that if Autozone ran into trouble, it could struggle under the
strain of making interest payments and rolling over maturing
debt. Another point is that Autozone was conceivable to lose its
investment grade, which would make future debt financing more
difficult to secure and more expensive.
Autozone could also distribute its operating cash flows to
shareholders through dividends, the company have the choice of
distributing the cash through dividend or share repurchases, or
some combination of the two. Dividends were seen a way to
provide cash to existing shareholders, whereas only those who
happened to be selling their shares would receive cash from a
share-repurchase program. On the other hand, dividends were
taxed at the shareholder level in the year received, whereas if a

share-repurchase program succeeded in increasing the share
price, the non-selling shareholders could defer paying taxes
until they sell the stock. Dividends were also generally
considered to be sticky, meaning that the market expected a
company to either keep its dividend steady or raise it each year.
However, share repurchases were not viewed as sticky by the
market because the amount of share repurchase vary every year.
Autozone can chose to return shareholder capital through both
dividends and share repurchases as some companies do. In most
of these cases, the company provided a stable but relatively
small cash dividend and then repurchased shares at varying
levels according to the circumstances each year. The benefit of
this approach was to give shareholders the benefit of a sticky
dividend while also receiving the price support of share
repurchases.
In conclusion, Autozone should make its mind up to benefit
from all these alternative and implement one or more of these
alternatives according to the company’s need.Question 5
What should Mark Johnson do about his holdings of AutoZone
shares?
Mark Johnson has three options on Autozone Shares holdings
either sell, buy or hold Autozon’s shares. Each of these options
have advantages and disadvantages which are discussed below:
If Mark Johnson sells his holdings, he will be given a chance of
getting a higher return before economy growth and became
strong because if the economy became strong, the value of
Autozone shares would decline which will reduce Mark Johnson
return.
Buying Autozone shares have a positive side in case the stock
price and the value increase; however, if the stock price and
value decline, it will be a loss for him, and it will be also the
same case if he hold Autozone shares.
Additionally, if Autozone decided to stop share repurchase, they
would have excess cash flow that could be used for expansion,
producing new product, or retiring some of their debt. Utilizing
this cash very well may affect Autozone positively; however,

the stock price and EPS might slightly decrease if the company
were able to handle its operations. On the other hand, if the
company could not handle its operation very well, the stock
price and EPS might drop which will disappoint its investors.
Johnson is one of the largest holdings in Autozone company
shares, where Johnson was concerned about the news that
Lampert, Autozone’s main shareholder, was rapidly liquidating
his stake in the company (Autozone). In addition, Johnson was
concerned about the future performance of Autozone’s stock
price because he did not know what is the reason behind
Lampert liquidating his stake as it might have a negative effect
among Autozones’ investors. However, it is not necessary that
Lampert liquidating his stake is a bad sign, he might liquidate
his Autozones’ stake because he is in need of fund for any other
personal causes, or for better investment chances as he is might
be a financial buyer seeking a greater return, so we believe that
Johnson should remain holdings shares in Autozone. Financial
measures of Autozones’ company show that the company is
steadily improving, where EPS, ROIC, and stock price which is
the most important measures for investors; are at a desirable
rate of increasing. As Autozones’ investors had been enjoying
the strong appreciation of Autozone’s stock prices, we believe
they will continue enjoying this strong appreciation in the
future. In fact, Autozones’ financial statement has no sign of a
decrease in its shares stock price, where the company created a
measured value since long time, we believe that it will continue
doing in the future.
Autozone faced bad debt ratio which affect the financial
security index and the complex of increase capital in debt to
develop or the company will forced to pay higher cost of
capital. Additionally, Autozone maintaining policy of using
debt is not efficient to repurchase its stock due to its high debt
ratio. If Autozone do not have enough capital to maintain such
policy, the stock prices would highly dropped. While the policy
of repurchasing shares by debt would create demand on
securities market, where the company stock price will be higher

than instinct value.
Our recommendation to Mark Johnson to hold Autozone share
as U.S. suffer a recession and recover from recession need many
years to improve its economy. Consequently, as U.S did reach
the economy improving, Mark Johnson will enjoy high stock
price, high value of Autozone stock resulted in high ESP.
Conclusion
Post analyzing all potential alternatives to managing their
operational cash flows, we strongly believe that AutoZone
should not consider stopping its share repurchasing program and
continue with it. By implementing their share repurchase
program/strategy, AutoZone was able to progressively improve
the price of their shares (as the market views their share
repurchases as indirect dividends). Any alteration away from
the company’s repurchasing program could be considered a
negative signal by the market, therefore, resulting in the
investors’ loss of confidence in the company.
Likewise, if AutoZone happens and decides to change their
strategy and instead issue dividends, they will have to keep it
constant or increment the dividends amount in order to keep the
investors satisfied at all times. Over the years, AutoZone has
been able to demonstrate progressively incremental and an
enhanced its ROIC. As per the other alternatives for using the
company’s operating cash flows, the undesirable facets as well
as the risks linked with the expansion plans, whether
domestically or nationally, would probably result in a
decrement in the company’s value. Consequently, foreseeing a
sustained upsurge in the price of AutoZone’s shares, Johnson &
Associates ought to retain its position and sturdily deliberate on
growing its venture inside the company itself.
References
Berk, J.,DeMarzo, P., Harford, J. (2015). Fundamentals of

Corporate Finance (3rd ed.). Pearson, pp. 290-291
Bruner, R., Eades, K., & Schill, M. (2014). Case Studies in
Finance: Managing for Corporate Value Creation (7th ed.).
NY:New York, pp. 409- 422.
CFA Institution. (n.d) Chapter 6 : Dividends and Share
repurchases: Basics
Yallapragada, R. (2014). Stock Buybacks: Good Or Bad For
Investors?. Retrieved from
file:///C:/Users/sarah/Downloads/8535-Article%20Text-33867-
1-10-20140329.pdf
Title PageThis spreadsheet supports STUDENT analysis of the
case “AutoZone, Inc.” (Case 30).This spreadsheet was prepared
by Professor Kenneth Eades, Paul Tudor Jones Research
Professor of Business Administration. Copyright © 2012 by the
University of Virginia Darden School Foundation,
Charlottesville, VA. All rights reserved. For customer service
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means—electronic, mechanical, photocopying, recording, or
otherwise—without the permission of the Darden School
Foundation. Rev. Jan. 18, 2013
Ex1_Price
Performance3/29/026/28/029/30/0212/31/023/31/036/30/039/30/
0312/31/033/31/046/30/049/30/0412/31/043/31/056/30/059/30/0
512/30/053/31/066/30/069/29/0612/29/063/30/076/29/079/28/07
12/31/073/31/086/30/089/30/0812/31/083/31/096/30/099/30/091
2/31/093/31/106/30/109/30/1012/31/103/31/116/30/119/30/111/
24/12RBS25.525.525.525.525.525.519.919.919.919.920.621.321
.321.321.3222222222222222222.922.922.922.923.323.420.920.

219.319.313.512.511.210.69.69.22.3ESL0000000000000000000
00000000000000.94.443.53.53.131.5Total
(mm)25.525.525.525.525.525.519.919.919.919.920.621.321.321
.321.3222222222222222222.922.922.922.923.323.420.920.219.
320.217.916.514.714.112.712.23.8Value$1,755.68$1,971.15$2,0
10.93$1,801.58$1,752.11$1,937.24$1,781.65$1,695.68$1,710.8
0$1,593.99$1,591.35$1,944.90$1,825.41$1,969.40$1,773.23$2,
018.50$2,193.18$1,940.40$2,272.60$2,542.32$2,819.08$3,005.
64$2,555.08$2,745.94$2,606.71$2,771.13$2,824.49$3,249.65$3
,805.31$3,158.20$2,953.64$3,050.75$3,496.42$3,458.64$3,777.
02$4,007.07$3,857.20$3,744.60$3,894.12$1,317.65BB Last
Pr68.8577.378.8670.6568.7175.9789.5385.2185.9780.177.2591.
3185.792.4683.2591.7599.6988.2103.3115.56128.14136.62116.
14119.91113.83121.01123.34139.47162.62151.11146.22158.071
73.09193.22228.91272.59273.56294.85319.19346.75Indexed to
Time 0Absolute NumbersDateAutoZoneS&P 500S&P
500AZOSPXSPXT12/31/96100.0%100.0%100.0%27.5740.7497
3.91/31/9778.6%106.1%106.2%21.625786.161034.742/28/9790.
0%106.8%107.1%24.75790.821042.853/31/9781.8%102.2%102.
7%22.5757.1210004/30/9789.1%108.2%108.8%24.5801.341059.
75/30/9785.0%114.5%115.4%23.375848.281124.226/30/9785.0
%119.5%120.6%23.375885.141174.597/31/97104.3%128.8%130
.2%28.688954.291268.058/29/97102.7%121.4%122.9%28.25899
.471197.019/30/97108.6%127.9%129.6%29.875947.281262.561
0/31/97107.5%123.5%125.3%29.563914.621220.411/28/97109.
1%129.0%131.1%30955.41276.8912/31/97105.5%131.0%133.4
%29970.431298.821/30/9899.8%132.3%134.8%27.438980.2813
13.192/27/98110.0%141.7%144.6%30.251049.341407.93/31/98
123.2%148.7%152.0%33.8751101.7514804/30/98109.8%150.1%
153.5%30.1881111.751494.895/29/98120.9%147.3%150.9%33.2
51090.821469.196/30/98116.1%153.1%157.0%31.9381133.8415
28.877/31/98124.5%151.3%155.3%34.251120.671512.598/31/9
894.3%129.2%132.9%25.938957.281293.99/30/9889.5%137.3%
141.4%24.6251017.011376.7910/30/9895.7%148.3%152.9%26.3
131098.671488.7811/30/98109.5%157.1%162.1%30.1251163.63
1579.0212/31/98119.8%165.9%171.5%32.9381229.231670.011/

29/99123.2%172.8%178.6%33.8751279.641739.842/26/99127.3
%167.2%173.1%351238.331685.773/31/99110.5%173.7%180.0
%30.3751286.371753.214/30/99109.1%180.2%187.0%301335.1
81821.115/31/99105.2%175.7%182.6%28.9381301.841778.16/3
0/99109.5%185.3%192.7%30.1251372.711876.787/30/9989.8%1
79.4%186.7%24.6881328.721818.188/31/9986.6%178.3%185.8
%23.8131320.411809.199/30/99102.0%173.2%180.7%28.06312
82.711759.5910/29/9996.6%184.0%192.1%26.5631362.931870.
9411/30/99100.2%187.5%196.0%27.5631388.911908.9712/31/9
9117.5%198.3%207.6%32.3131469.252021.41/31/0095.5%188.3
%197.1%26.251394.461919.842/29/0087.3%184.5%193.4%2413
66.421883.53/31/00100.9%202.3%212.3%27.751498.582067.76
4/28/0083.4%196.1%205.9%22.9381452.432005.555/31/00101.
8%191.8%201.7%281420.61964.46/30/0080.1%196.4%206.7%2
2.0161454.62012.837/31/0083.2%193.2%203.4%22.8751430.83
1981.368/31/0081.9%204.9%216.1%22.521517.682104.439/29/
0082.5%193.9%204.7%22.6881436.511993.3310/31/0097.5%19
3.0%203.8%26.8131429.41984.911/30/0093.9%177.5%187.7%2
5.8131314.951828.4212/29/00103.6%178.2%188.7%28.51320.2
81837.361/31/0194.7%184.4%195.4%26.031366.021902.552/28
/0191.9%167.4%177.5%25.261239.951729.073/30/01101.9%156
.6%166.3%28.021160.331619.544/30/01114.0%168.7%179.2%3
1.341249.471745.395/31/01120.3%169.5%180.4%33.071255.83
1757.096/29/01136.4%165.3%176.0%37.51224.421714.327/31/
01172.1%163.5%174.3%47.331211.231697.448/31/01168.0%15
3.0%163.4%46.21133.591591.189/28/01188.6%140.5%150.2%5
1.861040.951462.6910/31/01212.8%143.1%153.1%58.531059.7
81490.5811/30/01244.7%153.8%164.8%67.31139.461604.9212/
31/01261.1%155.0%166.2%71.81148.081618.981/31/02246.0%1
52.6%163.8%67.651130.21595.352/28/02241.3%149.4%160.7%
66.361106.731564.593/29/02250.4%154.9%166.7%68.851147.3
91623.434/30/02276.4%145.4%156.6%761076.9215255/31/0229
7.6%144.1%155.4%81.851067.141513.776/28/02281.1%133.6%
144.4%77.3989.811405.947/31/02268.2%123.1%133.1%73.7591
1.621296.348/30/02263.1%123.7%134.0%72.35916.071304.869/
30/02286.8%110.1%119.4%78.86815.281163.0410/31/02311.9%

119.6%129.9%85.77885.761265.4111/29/02297.1%126.4%137.6
%81.7936.311339.8912/31/02256.9%118.8%129.5%70.65879.82
1261.181/31/03238.9%115.5%126.1%65.71855.71228.142/28/0
3239.3%113.6%124.2%65.8841.151209.713/31/03249.9%114.5
%125.4%68.71848.181221.464/30/03293.9%123.8%135.8%80.8
1916.921322.075/30/03304.3%130.1%142.9%83.68963.591391.
726/30/03276.3%131.6%144.7%75.97974.51409.487/31/03302.
8%133.7%147.3%83.26990.311434.338/29/03333.8%136.1%150
.1%91.81008.011462.39/30/03325.6%134.5%148.6%89.53995.9
71446.7710/31/03349.5%141.8%157.0%96.11050.711528.6211/
28/03347.9%142.9%158.3%95.661058.21542.0712/31/03309.9%
150.1%166.6%85.211111.921622.941/30/04306.6%152.7%169.7
%84.321131.131652.732/27/04326.2%154.6%172.1%89.71144.9
41675.73/31/04312.6%152.0%169.5%85.971126.211650.424/30
/04318.4%149.5%166.8%87.571107.31624.515/31/04315.5%151
.3%169.1%86.751120.681646.86/30/04291.3%154.0%172.4%80
.11140.841678.837/30/04280.7%148.7%166.7%77.21101.72162
3.268/31/04269.3%149.1%167.4%74.061104.241629.839/30/04
280.9%150.5%169.2%77.251114.581647.4810/29/04297.5%152.
6%171.7%81.811130.21672.6511/30/04311.3%158.5%178.7%85
.61173.821740.3312/31/04332.0%163.6%184.8%91.311211.921
799.551/31/05324.5%159.5%180.3%89.251181.271755.682/28/
05352.4%162.5%184.1%96.91203.61792.633/31/05311.6%159.4
%180.8%85.71180.591760.894/29/05301.8%156.2%177.4%8311
56.851727.495/31/05329.2%160.9%183.0%90.521191.51782.46
6/30/05336.2%160.8%183.3%92.461191.331784.997/29/05354.
3%166.6%190.1%97.441234.181851.378/31/05343.6%164.7%18
8.4%94.51220.331834.489/30/05302.7%165.9%189.9%83.25122
8.811849.3310/31/05294.2%162.9%186.7%80.91207.011818.51
1/30/05323.9%168.7%193.8%89.061249.481887.2812/30/05333
.6%168.5%193.9%91.751248.291887.941/31/06355.5%172.8%1
99.0%97.751280.081937.932/28/06351.6%172.9%199.5%96.681
280.661943.193/31/06362.5%174.8%202.0%99.691294.831967.
384/28/06340.4%176.9%204.7%93.611310.611993.795/31/0632
9.9%171.5%198.8%90.731270.091936.416/30/06320.7%171.5%
199.1%88.21270.21939.037/31/06319.5%172.3%200.3%87.8712

76.661950.998/31/06328.4%176.0%205.1%90.31303.821997.42
9/29/06375.6%180.3%210.4%103.31335.852048.8910/31/06407
.3%186.0%217.2%1121377.942115.6511/30/06413.1%189.1%22
1.4%113.611400.632155.8912/29/06420.2%191.5%224.5%115.5
61418.32186.13AutoZoneS&P 500S&P 500 Total
Return1/31/07456.8%194.2%227.9%125.631438.242219.19100
%100%100%2/28/07456.2%189.9%223.4%125.461406.822175.
78100%98%98%3/30/07466.0%191.8%225.9%128.141420.8622
00.12102%99%99%4/30/07483.8%200.1%235.9%133.041482.3
72297.57106%103%104%5/31/07467.7%206.6%244.1%128.631
530.622377.75102%106%107%6/29/07496.8%203.0%240.1%13
6.621503.352338.25109%105%105%7/31/07461.1%196.5%232.
6%126.811455.272265.75101%101%102%8/31/07441.1%199.0
%236.1%121.291473.992299.7197%102%104%9/28/07422.3%2
06.1%245.0%116.141526.752385.7292%106%108%10/31/07452
.4%209.2%248.9%124.411549.382423.6799%108%109%11/30/
07405.9%200.0%238.5%111.631481.142322.3489%103%105%1
2/31/07436.0%198.2%236.8%119.911468.362306.2395%102%1
04%1/31/08438.7%186.1%222.6%120.651378.552167.996%96
%98%2/29/08418.5%179.6%215.4%115.081330.632097.4892%
93%95%3/31/08413.9%178.6%214.4%113.831322.72088.4291
%92%94%4/30/08439.1%187.1%224.9%120.751385.592190.13
96%96%99%5/30/08460.2%189.1%227.8%126.561400.382218.
5101%97%100%6/30/08440.0%172.8%208.6%121.0112802031.
4796%89%92%7/31/08473.8%171.1%206.8%130.291267.38201
4.39104%88%91%8/29/08499.0%173.2%209.8%137.231282.83
2043.53109%89%92%9/30/08448.5%157.5%191.1%123.341166
.361861.4498%81%84%10/31/08462.9%130.8%159.0%127.299
68.751548.81101%67%70%11/28/08397.2%121.0%147.6%109.
22896.241437.6887%62%65%12/31/08507.2%121.9%149.2%13
9.47903.251452.98111%63%65%1/30/09483.2%111.5%136.6%
132.89825.881330.51106%57%60%2/27/09517.2%99.2%122.1
%142.23735.091188.84113%51%54%3/31/09591.3%107.7%132
.8%162.62797.871292.98129%55%58%4/30/09605.1%117.8%1
45.5%166.39872.811416.73132%61%64%5/29/09553.3%124.1
%153.6%152.15919.141495.97121%64%67%6/30/09549.5%124

.1%153.9%151.11919.321498.94120%64%68%7/31/09558.4%1
33.3%165.6%153.57987.481612.31122%69%73%8/31/09535.5
%137.8%171.5%147.251020.621670.52117%71%75%9/30/0953
1.7%142.7%177.9%146.221057.081732.86116%73%78%10/30/
09492.0%139.9%174.6%135.311036.191700.67108%72%77%11
/30/09537.7%147.9%185.1%147.871095.631802.68118%76%81
%12/31/09574.8%150.5%188.7%158.071115.11837.5126%78%
83%1/29/10563.7%145.0%181.9%155.031073.871771.4123%75
%80%2/26/10603.4%149.1%187.5%165.931104.491826.27132
%77%82%3/31/10629.4%157.9%198.8%173.091169.431936.48
138%81%87%4/30/10672.8%160.2%202.0%185.011186.691967
.05147%83%89%5/31/10694.1%147.1%185.8%190.881089.411
809.98152%76%82%6/30/10702.6%139.1%176.1%193.221030.
711715.23154%72%77%7/30/10769.3%148.7%188.5%211.5711
01.61835.4168%77%83%8/31/10762.8%141.7%180.0%209.781
049.331752.55167%73%79%9/30/10832.4%154.1%196.0%228.
911141.21908.95182%79%86%10/29/10864.1%159.7%203.5%2
37.631183.261981.59189%82%89%11/30/10943.3%159.4%203.
5%259.411180.551981.84206%82%89%12/31/10991.2%169.8%
217.1%272.591257.642114.29217%87%95%1/31/11921.9%173.
6%222.2%253.531286.122164.4202%89%98%2/28/11938.0%17
9.2%229.9%257.951327.222238.55205%92%101%3/31/11994.8
%179.0%229.9%273.561325.832239.44218%92%101%4/29/111
026.8%184.1%236.8%282.381363.612305.76225%95%104%5/3
1/111069.1%181.6%234.1%2941345.22279.66234%94%103%6/
30/111072.2%178.3%230.2%294.851320.642241.66235%92%10
1%7/29/111038.0%174.5%225.5%285.451292.282196.08227%9
0%99%8/31/111116.4%164.6%213.2%3071218.892076.78244%
85%94%9/30/111160.7%152.7%198.3%319.191131.421930.792
54%79%87%10/31/111176.7%169.2%219.9%323.591253.32141
.81258%87%97%11/30/111194.1%168.3%219.4%328.381246.9
62137.08261%87%96%12/30/111181.7%169.8%221.7%324.971
257.62158.94259%87%97%1/31/121265.0%177.2%231.6%347.
881312.412255.69277%91%102%
AutoZone Stock Price Performance
AutoZone 35430 35461 35489 35520 35550

35580 35611 35642 35671 35703 35734
35762 35795 35825 35853 35885 35915
35944 35976 36007 36038 36068 36098
36129 36160 36189 36217 36250 36280
36311 36341 36371 36403 36433 36462
36494 36525 36556 36585 36616 36644
36677 36707 36738 36769 36798 36830
36860 36889 36922 36950 36980 37011
37042 37071 37103 37134 37162 37195
37225 37256 37287 37315 37344 37376
37407 37435 37468 37498 37529 37560
37589 37621 37652 37680 37711 37741
37771 37802 37833 37862 37894 37925
37953 37986 38016 38044 38077 38107
38138 38168 38198 38230 38260 38289
38321 38352 38383 38411 38442 38471
38503 38533 38562 38595 38625 38656
38686 38716 38748 38776 38807 38835
38868 38898 38929 38960 38989 39021
39051 39080 39113 39141 39171 39202
39233 39262 39294 39325 39353 39386
39416 39447 39478 39507 39538 39568
39598 39629 39660 39689 39721 39752
39780 39813 39843 39871 39903 39933
39962 39994 40025 40056 40086 40116
40147 40178 40207 40235 40268 40298
40329 40359 40389 40421 40451 40480
40512 40543 40574 40602 40633 40662
40694 40724 40753 40786 40816 40847
40877 40907 40939 1 0.78636363636363638
0.9 0.81818181818181823 0.89090909090909087
0.85 0.85 1.0431999999999999 1.0272727272727273
1.0863636363636364 1.0750181818181819
1.0909090909090908 1.0545454545454545
0.99774545454545449 1.1000000000000001
1.2318181818181819 1.0977454545454546

1.209090909090909 1.1613818181818181
1.2454545454545454 0.94319999999999993
0.8954545454545455 0.9568363636363636
1.0954545454545455 1.1977454545454547
1.2318181818181819 1.2727272727272727
1.1045454545454545 1.0909090909090908
1.0522909090909089 1.0954545454545455
0.89774545454545451 0.86592727272727266
1.0204727272727272 0.96592727272727263
1.0022909090909091 1.175018181818182
0.95454545454545459 0.87272727272727268
1.009090909090909 0.83410909090909091
1.0181818181818181 0.80058181818181817
0.83181818181818179 0.81890909090909092
0.82501818181818176 0.97501818181818178
0.93865454545454541 1.0363636363636364
0.94654545454545458 0.91854545454545455
1.018909090909091 1.1396363636363636
1.2025454545454546 1.3636363636363635
1.721090909090909 1.6800000000000002
1.8858181818181818 2.1283636363636362
2.4472727272727273 2.6109090909090908
2.4600000000000004 2.4130909090909092
2.5036363636363634 2.7636363636363637
2.9763636363636361 2.810909090909091
2.6818181818181817 2.6309090909090909
2.8676363636363638 3.1189090909090909
2.9709090909090912 2.5690909090909093
2.3894545454545453 2.3927272727272726
2.4985454545454542 2.9385454545454546
3.0429090909090912 2.7625454545454544
3.0276363636363639 3.3381818181818179
3.2556363636363637 3.4945454545454542
3.4785454545454546 3.0985454545454543
3.0661818181818181 3.2618181818181817
3.1261818181818182 3.1843636363636363

3.1545454545454548 2.9127272727272726
2.8072727272727276 2.693090909090909
2.8090909090909091 2.9749090909090912
3.1127272727272723 3.3203636363636364
3.2454545454545456 3.5236363636363639
3.1163636363636367 3.0181818181818181
3.2916363636363637 3.3621818181818179
3.5432727272727274 3.4363636363636365
3.0272727272727273 2.9418181818181819
3.2385454545454548 3.3363636363636364
3.5545454545454547 3.5156363636363639
3.6250909090909089 3.4039999999999999
3.2992727272727276 3.2072727272727275
3.1952727272727275 3.2836363636363637
3.7563636363636363 4.0727272727272723
4.1312727272727274 4.2021818181818187
4.5683636363636362 4.5621818181818181
4.6596363636363636 4.8378181818181814
4.6774545454545455 4.968 4.611272727272727
4.4105454545454545 4.2232727272727271 4.524
4.0592727272727274 4.360363636363636
4.3872727272727277 4.1847272727272724
4.1392727272727274 4.3909090909090907
4.6021818181818182 4.4003636363636369
4.7378181818181817 4.9901818181818181
4.4850909090909088 4.6287272727272732
3.9716363636363634 5.0716363636363635
4.8323636363636355 5.1719999999999997
5.9134545454545453 6.0505454545454542
5.5327272727272732 5.4949090909090916
5.5843636363636362 5.3545454545454545
5.3170909090909086 4.9203636363636365
5.3770909090909091 5.7479999999999993
5.6374545454545455 6.033818181818182
6.2941818181818183 6.7276363636363632
6.9410909090909092 7.0261818181818185

7.6934545454545455 7.6283636363636367
8.3239999999999998 8.6410909090909094
9.4330909090909092 9.9123636363636347
9.2192727272727275 9.379999999999999
9.9476363636363629 10.268363636363636
10.690909090909091 10.721818181818183
10.379999999999999 11.163636363636364
11.60690909090909 11.76690909090909
11.941090909090908 11.81709090909091
12.650181818181817 S & P 500 35430
35461 35489 35520 35550 35580 35611
35642 35671 35703 35734 35762 35795
35825 35853 35885 35915 35944 35976
36007 36038 36068 36098 36129 36160
36189 36217 36250 36280 36311 36341
36371 36403 36433 36462 36494 36525
36556 36585 36616 36644 36677 36707
36738 36769 36798 36830 36860 36889
36922 36950 36980 37011 37042 37071
37103 37134 37162 37195 37225 37256
37287 37315 37344 37376 37407 37435
37468 37498 37529 37560 37589 37621
37652 37680 37711 37741 37771 37802
37833 37862 37894 37925 37953 37986
38016 38044 38077 38107 38138 38168
38198 38230 38260 38289 38321 38352
38383 38411 38442 38471 38503 38533
38562 38595 38625 38656 38686 38716
38748 38776 38807 38835 38868 38898
38929 38960 38989 39021 39051 39080
39113 39141 39171 39202 39233 39262
39294 39325 39353 39386 39416 39447
39478 39507 39538 39568 39598 39629
39660 39689 39721 39752 39780 39813
39843 39871 39903 39933 39962 39994
40025 40056 40086 40116 40147 40178

40207 40235 40268 40298 40329 40359
40389 40421 40451 40480 40512 40543
40574 40602 40633 40662 40694 40724
40753 40786 40816 40847 40877 40907
40939 1 1.0624704795153508
1.0707978231851318 1.0267994660642776
1.088099394188315 1.1543484957387822
1.2060683848444398 1.3020330629428072
1.2290892288736011 1.2963959338741144
1.2531060683848445 1.3111099702228157
1.3336276825136051 1.3483827908409489
1.4456309682718966 1.519663209775131
1.5349522538248281 1.5085635075469761
1.569842899681692 1.5531266043741656
1.3285758291405689 1.4136872368826368
1.5286785090871753 1.6213368929048158
1.7147653763220043 1.7864667830372727
1.7309477359071774 1.8001950918985523
1.8699147756443166 1.825752130608892
1.9270767019201149 1.8669062532087484
1.8576753260088306 1.8067460724920423
1.9210801930382997 1.9601293767327241
2.0755724407023308 1.9712906869288427
1.9339767943320669 2.1231748639490711
2.0592976691652121 2.0170448711366671
2.0667727692781601 2.0344593900811172
2.1608276003696476 2.0467501796899064
2.0380942601909848 1.8774206797412467
1.8866002669678612 1.9535373241605913
1.7754081527877605 1.6629428072697403
1.7921655200739297 1.8041790738268815
1.7602628606633124 1.7429304856761476
1.6338227744121574 1.5018893110175584
1.5305267481260909 1.6479309990758806
1.6623677995687443 1.6381045281856452
1.6065201766095081 1.6669370571927304

1.5658691857480234 1.5543382277441216
1.4436184413184106 1.3310812198377657
1.3398295512886333 1.1942088510113975
1.2993223123523976 1.3757983365848652
1.2949789506109457 1.261053496252182
1.2421295820926175 1.2541944758188726
1.3575007700995996 1.4290173529109766
1.4472533114282782 1.4727692781599753
1.5014888592257931 1.4855426635178151
1.5695861998151761 1.5833966526337406
1.6664339254543588 1.6970222815484137
1.7206078652839101 1.6946503747818051
1.6680460006160798 1.6909333607146524
1.7238217476126911 1.6667625012834995
1.6735085737755415 1.6916315843515761
1.7174761269124141 1.7869699147756444
1.8477769791559708 1.8027312865797311
1.8406715268508063 1.808080911797926
1.773785809631379 1.8302289762809325
1.832826778930075 1.9009857274874216
1.883643084505596 1.8988910565766506
1.8672348290378888 1.9378580963137899
1.9385357839613924 1.9898654892699457
1.9952664544614438 2.0201047335455389
2.047222507444296 1.988304754081528
1.9909949686826163 2.0032754902967449
2.0509497895061095 2.103799158024438
2.1723482903788893 2.2136667008933153
2.2447171167470996 2.2786631070951846
2.2340897422733343 2.2590820412773387
2.3591436492453024 2.4414724304343363
2.4009138515247974 2.3264708902351372
2.36134100010268 2.4496560221788681
2.4886230619160079 2.3845774720197146
2.368035732621419 2.2259985624807475
2.1536913440805012 2.1443885409179591

2.2488243146113565 2.2779546154635999
2.0859123113255982 2.0683745764452204
2.0982955128863332 1.9113255981106891
1.5903172810350139 1.4762090563712909
1.4919190882020741 1.3661669575931821
1.2207002772358557 1.3276311736317898
1.4546976075572442 1.5360611972481775
1.5391107916623885 1.6555190471300956
1.7152890440496971 1.7792997227641441
1.7462470479515351 1.8509908614847521
1.8867440188931102 1.8188725741862615
1.8752130608892084 1.9883766300441525
2.0197658897217372 1.8584864975870212
1.761197248177431 1.8845877400143753
1.7995174042509499 1.9601088407434029
2.0346955539583118 2.0349522538248279
2.1709518431050414 2.2224047643495228
2.2985419447581892 2.2994557962829862
2.367553136872369 2.3407536708080912
2.3017352910976485 2.2549337714344388
2.1324365951329707 1.9825341410822466
2.1992093644111304 2.1943526029366462
2.2167984392648119 2.3161412876065306
Relative Cumulative Return
Lampert Position in AutoZone
Shares 37344 37435 37529 37621 37711
37802 37894 37986 38077 38168 38260
38352 38442 38533 38625 38716 38807
38898 38989 39080 39171 39262 39353
39447 39538 39629 39721 39813 39903
39994 40086 40178 40268 40359 40451
40543 40633 40724 40816 40932 25.5
25.5 25.5 25.5 25.5 25.5 19.899999999999999
19.899999999999999 19.899999999999999
19.899999999999999 20.6 21.3 21.3 21.3 21.3 22 22

22 22 22 22 22 22 22.9 22.9 22.9 22.9 23.3
23.4 20.9 20.2 19.3 20.2 17.899999999999999 16.5
14.7 14.1 12.7 12.2 3.8
Shares Held (millions)
AutoZone Stock Price Performance
AutoZone 35430 35461 35489 35520 35550
35580 35611 35642 35671 35703 35734
35762 35795 35825 35853 35885 35915
35944 35976 36007 36038 36068 36098
36129 36160 36189 36217 36250 36280
36311 36341 36371 36403 36433 36462
36494 36525 36556 36585 36616 36644
36677 36707 36738 36769 36798 36830
36860 36889 36922 36950 36980 37011
37042 37071 37103 37134 37162 37195
37225 37256 37287 37315 37344 37376
37407 37435 37468 37498 37529 37560
37589 37621 37652 37680 37711 37741
37771 37802 37833 37862 37894 37925
37953 37986 38016 38044 38077 38107
38138 38168 38198 38230 38260 38289
38321 38352 38383 38411 38442 38471
38503 38533 38562 38595 38625 38656
38686 38716 38748 38776 38807 38835
38868 38898 38929 38960 38989 39021
39051 39080 39113 39141 39171 39202
39233 39262 39294 39325 39353 39386
39416 39447 39478 39507 39538 39568
39598 39629 39660 39689 39721 39752
39780 39813 39843 39871 39903 39933
39962 39994 40025 40056 40086 40116
40147 40178 40207 40235 40268 40298
40329 40359 40389 40421 40451 40480
40512 40543 40574 40602 40633 40662
40694 40724 40753 40786 40816 40847

40877 40907 40939 1 0.78636363636363638
0.9 0.81818181818181823 0.89090909090909087
0.85 0.85 1.0431999999999999 1.0272727272727273
1.0863636363636364 1.0750181818181819
1.0909090909090908 1.0545454545454545
0.99774545454545449 1.1000000000000001
1.2318181818181819 1.0977454545454546
1.209090909090909 1.1613818181818181
1.2454545454545454 0.94319999999999993
0.8954545454545455 0.9568363636363636
1.0954545454545455 1.1977454545454547
1.2318181818181819 1.2727272727272727
1.1045454545454545 1.0909090909090908
1.0522909090909089 1.0954545454545455
0.89774545454545451 0.86592727272727266
1.0204727272727272 0.96592727272727263
1.0022909090909091 1.175018181818182
0.95454545454545459 0.87272727272727268
1.009090909090909 0.83410909090909091
1.0181818181818181 0.80058181818181817
0.83181818181818179 0.81890909090909092
0.82501818181818176 0.97501818181818178
0.93865454545454541 1.0363636363636364
0.94654545454545458 0.91854545454545455
1.018909090909091 1.1396363636363636
1.2025454545454546 1.3636363636363635
1.721090909090909 1.6800000000000002
1.8858181818181818 2.1283636363636362
2.4472727272727273 2.6109090909090908
2.4600000000000004 2.4130909090909092
2.5036363636363634 2.7636363636363637
2.9763636363636361 2.810909090909091
2.6818181818181817 2.6309090909090909
2.8676363636363638 3.1189090909090909
2.9709090909090912 2.5690909090909093
2.3894545454545453 2.3927272727272726

2.4985454545454542 2.9385454545454546
3.0429090909090912 2.7625454545454544
3.0276363636363639 3.3381818181818179
3.2556363636363637 3.4945454545454542
3.4785454545454546 3.0985454545454543
3.0661818181818181 3.2618181818181817
3.1261818181818182 3.1843636363636363
3.1545454545454548 2.9127272727272726
2.8072727272727276 2.693090909090909
2.8090909090909091 2.9749090909090912
3.1127272727272723 3.3203636363636364
3.2454545454545456 3.5236363636363639
3.1163636363636367 3.0181818181818181
3.2916363636363637 3.3621818181818179
3.5432727272727274 3.4363636363636365
3.0272727272727273 2.9418181818181819
3.2385454545454548 3.3363636363636364
3.5545454545454547 3.5156363636363639
3.6250909090909089 3.4039999999999999
3.2992727272727276 3.2072727272727275
3.1952727272727275 3.2836363636363637
3.7563636363636363 4.0727272727272723
4.1312727272727274 4.2021818181818187
4.5683636363636362 4.5621818181818181
4.6596363636363636 4.8378181818181814
4.6774545454545455 4.968 4.611272727272727
4.4105454545454545 4.2232727272727271 4.524
4.0592727272727274 4.360363636363636
4.3872727272727277 4.1847272727272724
4.1392727272727274 4.3909090909090907
4.6021818181818182 4.4003636363636369
4.7378181818181817 4.9901818181818181
4.4850909090909088 4.6287272727272732
3.9716363636363634 5.0716363636363635
4.8323636363636355 5.1719999999999997
5.9134545454545453 6.0505454545454542

5.5327272727272732 5.4949090909090916
5.5843636363636362 5.3545454545454545
5.3170909090909086 4.9203636363636365
5.3770909090909091 5.7479999999999993
5.6374545454545455 6.033818181818182
6.2941818181818183 6.7276363636363632
6.9410909090909092 7.0261818181818185
7.6934545454545455 7.6283636363636367
8.3239999999999998 8.6410909090909094
9.4330909090909092 9.9123636363636347
9.2192727272727275 9.379999999999999
9.9476363636363629 10.268363636363636
10.690909090909091 10.721818181818183
10.379999999999999 11.163636363636364
11.60690909090909 11.76690909090909
11.941090909090908 11.81709090909091
12.650181818181817 S & P 500 35430
35461 35489 35520 35550 35580 35611
35642 35671 35703 35734 35762 35795
35825 35853 35885 35915 35944 35976
36007 36038 36068 36098 36129 36160
36189 36217 36250 36280 36311 36341
36371 36403 36433 36462 36494 36525
36556 36585 36616 36644 36677 36707
36738 36769 36798 36830 36860 36889
36922 36950 36980 37011 37042 37071
37103 37134 37162 37195 37225 37256
37287 37315 37344 37376 37407 37435
37468 37498 37529 37560 37589 37621
37652 37680 37711 37741 37771 37802
37833 37862 37894 37925 37953 37986
38016 38044 38077 38107 38138 38168
38198 38230 38260 38289 38321 38352
38383 38411 38442 38471 38503 38533
38562 38595 38625 38656 38686 38716
38748 38776 38807 38835 38868 38898

38929 38960 38989 39021 39051 39080
39113 39141 39171 39202 39233 39262
39294 39325 39353 39386 39416 39447
39478 39507 39538 39568 39598 39629
39660 39689 39721 39752 39780 39813
39843 39871 39903 39933 39962 39994
40025 40056 40086 40116 40147 40178
40207 40235 40268 40298 40329 40359
40389 40421 40451 40480 40512 40543
40574 40602 40633 40662 40694 40724
40753 40786 40816 40847 40877 40907
40939 1 1.0624704795153508
1.0707978231851318 1.0267994660642776
1.088099394188315 1.1543484957387822
1.2060683848444398 1.3020330629428072
1.2290892288736011 1.2963959338741144
1.2531060683848445 1.3111099702228157
1.3336276825136051 1.3483827908409489
1.4456309682718966 1.519663209775131
1.5349522538248281 1.5085635075469761
1.569842899681692 1.5531266043741656
1.3285758291405689 1.4136872368826368
1.5286785090871753 1.6213368929048158
1.7147653763220043 1.7864667830372727
1.7309477359071774 1.8001950918985523
1.8699147756443166 1.825752130608892
1.9270767019201149 1.8669062532087484
1.8576753260088306 1.8067460724920423
1.9210801930382997 1.9601293767327241
2.0755724407023308 1.9712906869288427
1.9339767943320669 2.1231748639490711
2.0592976691652121 2.0170448711366671
2.0667727692781601 2.0344593900811172
2.1608276003696476 2.0467501796899064
2.0380942601909848 1.8774206797412467
1.8866002669678612 1.9535373241605913

1.7754081527877605 1.6629428072697403
1.7921655200739297 1.8041790738268815
1.7602628606633124 1.7429304856761476
1.6338227744121574 1.5018893110175584
1.5305267481260909 1.6479309990758806
1.6623677995687443 1.6381045281856452
1.6065201766095081 1.6669370571927304
1.5658691857480234 1.5543382277441216
1.4436184413184106 1.3310812198377657
1.3398295512886333 1.1942088510113975
1.2993223123523976 1.3757983365848652
1.2949789506109457 1.261053496252182
1.2421295820926175 1.2541944758188726
1.3575007700995996 1.4290173529109766
1.4472533114282782 1.4727692781599753
1.5014888592257931 1.4855426635178151
1.5695861998151761 1.5833966526337406
1.6664339254543588 1.6970222815484137
1.7206078652839101 1.6946503747818051
1.6680460006160798 1.6909333607146524
1.7238217476126911 1.6667625012834995
1.6735085737755415 1.6916315843515761
1.7174761269124141 1.7869699147756444
1.8477769791559708 1.8027312865797311
1.8406715268508063 1.808080911797926
1.773785809631379 1.8302289762809325
1.832826778930075 1.9009857274874216
1.883643084505596 1.8988910565766506
1.8672348290378888 1.9378580963137899
1.9385357839613924 1.9898654892699457
1.9952664544614438 2.0201047335455389
2.047222507444296 1.988304754081528
1.9909949686826163 2.0032754902967449
2.0509497895061095 2.103799158024438
2.1723482903788893 2.2136667008933153
2.2447171167470996 2.2786631070951846

2.2340897422733343 2.2590820412773387
2.3591436492453024 2.4414724304343363
2.4009138515247974 2.3264708902351372
2.36134100010268 2.4496560221788681
2.4886230619160079 2.3845774720197146
2.368035732621419 2.2259985624807475
2.1536913440805012 2.1443885409179591
2.2488243146113565 2.2779546154635999
2.0859123113255982 2.0683745764452204
2.0982955128863332 1.9113255981106891
1.5903172810350139 1.4762090563712909
1.4919190882020741 1.3661669575931821
1.2207002772358557 1.3276311736317898
1.4546976075572442 1.5360611972481775
1.5391107916623885 1.6555190471300956
1.7152890440496971 1.7792997227641441
1.7462470479515351 1.8509908614847521
1.8867440188931102 1.8188725741862615
1.8752130608892084 1.9883766300441525
2.0197658897217372 1.8584864975870212
1.761197248177431 1.8845877400143753
1.7995174042509499 1.9601088407434029
2.0346955539583118 2.0349522538248279
2.1709518431050414 2.2224047643495228
2.2985419447581892 2.2994557962829862
2.367553136872369 2.3407536708080912
2.3017352910976485 2.2549337714344388
2.1324365951329707 1.9825341410822466
2.1992093644111304 2.1943526029366462
2.2167984392648119 2.3161412876065306
Relative Cumulative Return
Lampert Position in AutoZone
Shares 37344 37435 37529 37621 37711
37802 37894 37986 38077 38168 38260
38352 38442 38533 38625 38716 38807

38898 38989 39080 39171 39262 39353
39447 39538 39629 39721 39813 39903
39994 40086 40178 40268 40359 40451
40543 40633 40724 40816 40932 25.5
25.5 25.5 25.5 25.5 25.5 19.899999999999999
19.899999999999999 19.899999999999999
19.899999999999999 20.6 21.3 21.3 21.3 21.3 22 22
22 22 22 22 22 22 22.9 22.9 22.9 22.9 23.3
23.4 20.9 20.2 19.3 20.2 17.899999999999999 16.5
14.7 14.1 12.7 12.2 3.8
Shares Held (millions)
Ex2_Inc StatementsAutoZone Income StatementsYear
endedYear endedYear ended(in thousands, except August
27,August 28,August 29,August 30,August 25,August 26,August
28,August 29,August 30,August 31,% change per share
data)201120102009200820072006200520042003200220012000
1999199819971996Net
sales$8,072,973$7,362,618$6,816,824$6,522,706$6,169,804$5,
948,355$5,710,882$5,637,025$5,457,123$5,325,510$4,818,185
$4,482,696$4,116,392$3,242,922$2,691,440$2,242,63330.85%C
ost of
sales3,953,5103,650,8743,400,3753,254,6453,105,5543,009,835
2,918,3342,880,4462,942,1142,950,1232,804,8962,602,3862,38
4,9701,889,8471,559,2961,307,63827.30%Gross
profit4,119,4633,711,7443,416,4493,268,0613,064,2502,938,52
02,792,5482,756,5792,515,0092,375,3872,013,2891,880,3101,7
31,4221,353,0751,132,144934,99534.44%ERROR:#DIV/0!SG&
A2,624,6602,392,3302,240,3872,143,9272,008,9841,928,5951,8
16,8841,757,8731,597,2121,604,3791,625,5981,368,2901,298,3
27970,768810,793666,06130.65%Operating
profit1,494,8031,319,4141,176,0621,124,1341,055,2661,009,92
5975,664998,706917,797771,008387,691512,020433,095382,30
7321,351268,93441.65%ERROR:#DIV/0!Interest expense,
net170,557158,909142,316116,745119,116107,889102,44392,80

484,79079,860100,66576,83045,31218,2048,8431,96943.19%In
come before income
taxes1,324,2461,160,5051,033,7461,007,389936,150902,036873
,221905,902833,007691,148287,026435,190387,783364,103312,
508266,96541.46%ERROR:#DIV/0!Income tax
expense475,272422,194376,697365,783340,478332,761302,202
339,700315,403263,000111,500167,600143,000136,200117,500
99,80039.59%Net
income$848,974$738,311$657,049$641,606$595,672$569,275$
571,019$566,202$517,604$428,148$175,526$267,590$244,783$
227,903$195,008$167,16542.52%Wt. avg. shares for basic
EPS42,63248,48855,28263,29569,101-38.30%Effect of dilutive
stock equivalents97181671058074330.69%Adj. wt. avg. shares
for diluted
EPS43,60349,30455,99263,87569,84475,85979,50886,35096,96
3107,111113,801133,869150,257154,070152,535151,238-
37.57%ERROR:#DIV/0!Basic earnings per
share$19.91$15.23$11.89$10.14$8.62$7.57130.97%Diluted
earnings per
share$19.47$14.97$11.73$10.04$8.53$7.50$7.18$6.56$5.34$4.0
0$1.54$2.00$1.63$1.48$1.28$1.11128.25%Other
information:EBIT$1,494,803$1,319,414$1,176,062$1,124,134$
1,055,266$1,009,925$975,664$998,706$917,797$771,008$387,6
91$512,020$433,095$382,307$321,351$268,93441.65%Depr. &
Amort.196,209192,084180,433169,509159,411139,465135,5971
06,891109,748118,255131,333126,800128,53196,59977,82163,5
4123.08%EBITDA$1,691,012$1,511,498$1,356,495$1,293,643$
1,214,677$1,149,390$1,111,261$1,105,597$1,027,545$889,263
$519,024$638,820$561,626$478,906$399,172$332,47539.21%E
RROR:#DIV/0!EBITDA/Interest9.9x9.5x9.5x11.1x10.2x-
2.77%Data source: AutoZone annual
reports.EPS$19.47$14.97$11.73$10.04$8.53Net IncomeAdj. wt.
avg. shares for diluted EPSStock price EPS before share
repurchaseEPS after share repurchaseEPS diffrencesP/E
RatioStock Price contributed by Share RepurchaseEPS
diffrencesP/E RatioStock Price contributed by Share

RepurchaseAug.25,2007$ 595,67269844120.5N/A$
8.53N/A14.13N/AN/A14.13N/AAug.30,2008$
641,60663875138$ 9.19$ 10.04$ 0.8513.7511.73$
0.8513.7511.73Aug.29,2009$ 675,04955992149.6$ 10.29$
11.73$ 1.4412.7518.41$ 1.4412.7518.41Aug.28,2010$
738,31149304211.66$ 13.19$ 14.97$ 1.7814.1425.22$
1.7814.1425.22Aug.27,2011$ 848,97443603297.96$ 17.22$
19.47$ 2.2515.334.45$ 2.2515.334.45
Ex3_Bal SheetsAutoZone Balance Sheet Statements ($
thousands)August 27,August 28,August 29,August 30,August
25,August 26,August 28,August 29,August 30,August
31,20112010200920082007200620052004200320022001200019
99199819971996AssetsCurrent assets:Cash and cash
equivalents$97,606$98,280$92,706$242,461$86,654$91,558$74
,810$76,852$93,102$6,498$7,286$6,969$5,918$6,631$4,668$3,
904Accounts
receivable140,690125,802126,51471,24159,87680,363118,2636
8,37243,74623,78219,13521,40725,91742,25218,71315,466Mer
chandise
inventories2,466,1072,304,5792,207,4972,150,1092,007,4301,8
46,6501,663,8601,561,4791,511,3161,375,5841,242,8961,108,9
781,129,693966,560709,446555,894Other current
assets88,02283,160135,013122,490116,495100,35672,52649,05
419,19411,69018,42630,21433,46839,68320,98719,225Deferred
income taxes--------
3,99632,57440,76819,21230,08861,96424,98818,608Total
current
assets2,792,4252,611,8212,561,7302,586,3012,270,4552,118,92
71,929,4591,755,7571,671,3541,450,1281,328,5111,186,7801,2
25,0841,117,090778,802613,097Property and
equipment:Land740,276690,098656,516643,699625,992588,444
559,231538,920525,473502,302492,287458,217390,920320,203
243,587190,660Buildings and
improvements2,177,4762,013,3011,900,6101,814,6681,720,172
1,566,0021,450,8141,370,0791,325,7591,228,6041,182,8801,14

9,9001,003,308851,083682,710523,240Equipment994,369923,5
95887,521850,679780,199729,426662,495574,882551,465533,1
21505,282484,967438,855374,465267,536248,275Leasehold
improvements275,299247,748219,606202,098183,601165,57715
0,846137,562125,592114,317116,639117,452102,64682,27345,6
6736,708Construction in
progress184,452192,519145,161128,13385,581134,359155,2518
7,69444,87153,78675,223109,840153,323150,46197,41162,283
Gross property and
equipment4,371,8724,067,2613,809,4143,639,2773,395,5453,18
3,8082,978,6372,709,1372,573,1602,432,1302,372,3112,320,37
62,089,0521,778,4851,336,9111,061,166Less: Accumulated
depreciation and
amortization1,702,9971,547,3151,455,0571,349,6211,217,7031,
132,5001,041,022919,048857,407770,402661,868561,936450,56
6350,979255,783198,292Net property and
equipment2,668,8752,519,9462,354,3572,289,6562,177,8422,05
1,3081,937,6151,790,0891,715,7531,661,7281,710,4431,758,44
01,638,4861,427,5061,081,128862,874Goodwill302,645302,645
302,645302,645302,645302,645302,699301,015294,348305,390
305,390324,494337,261181,31516,57017,187Deferred income
taxes10,66146,22359,06738,28321,33120,64332,917-
25,54360,30480,59352,18276,4123,5104,3392,938Other long-
term
assets94,99690,95940,60640,22732,43632,78342,56765,70459,8
282417,57511,3227,52418,6923,1782,301Total
assets$5,869,602$5,571,594$5,318,405$5,257,112$4,804,709$4,
526,306$4,245,257$3,912,565$3,766,826$3,477,791$3,432,512
$3,333,218$3,284,767$2,748,113$1,884,017$1,498,397Liabiliti
es and Stockholders’ DeficitCurrent liabilities:Accounts
payable$2,755,853$2,433,050$2,118,746$2,043,271$1,870,668$
1,699,667$1,539,776$1,429,128$1,360,482$1,145,533$945,666
$788,825$757,447$683,372$449,793$401,309Accrued expenses
and
other449,327432,368381,271327,664307,633280,419255,67224
3,816310,944344,600292,153227,682230,036176,457122,58010

4,909Income taxes
payable25,18525,38535,14511,58225,44224,3784,75372,09639,
97843,43828,83518,03713,071-20,07912,260Deferred income
taxes166,449146,971171,590136,80382,15250,10410,9586,011-
-------Short-term borrowings34,08226,186-------------
94,400Total current
liabilities3,430,8963,063,9602,706,7522,519,3202,285,8952,054
,5681,811,1591,751,0511,711,4041,533,5711,266,6541,034,544
1,000,554859,829592,452612,878Long-term
debt3,317,6002,882,3002,726,9002,250,0001,935,6181,857,157
1,861,8501,869,2501,546,8451,194,5171,225,4021,249,937888,
340545,067198,400-Other long-term
liabilities375,338364,099317,827258,105179,996145,053181,24
1120,870134,81960,57674,24356,55872,07241,16017,95719,937
Stockholders’ deficit:Common stock, par:
$0.01/share4415015796367137728118941,0071,1001,1951,5431
,5401,5301,5131,501Additional paid-in
capital591,384557,955549,326537,005545,404500,880462,2894
14,231410,962370,457295,629301,901289,084277,528249,8532
35,247Retained
earnings(643,998)(245,344)136,935206,099546,049559,208370,
276580,147869,739974,141825,1961,564,1181,296,5281,051,74
5823,842628,834Accumulated other comprehensive
loss(119,691)(106,468)(92,035)(4,135)(9,550)(15,500)(36,581)(
15,653)(37,297)(11,603)(7,219)(4,468)(3)---Treasury stock, at
cost(1,082,368)(945,409)(1,027,879)(509,918)(679,416)(575,83
2)(405,788)(808,226)(870,653)(644,968)(248,588)(870,915)(26
3,348)(28,746)--Total stockholders’
equity(1,254,232)(738,765)(433,074)229,687403,200469,52839
1,007171,393373,758689,127866,213992,1791,323,8011,302,05
71,075,208865,582Total liabilities and stockholders’
equity$5,869,602$5,571,594$5,318,405$5,257,112$4,804,709$4
,526,306$4,245,257$3,912,565$3,766,826$3,477,791$3,432,512
$3,333,218$3,284,767$2,748,113$1,884,017$1,498,397Shares
issued44,08450,06157,88163,60071,25077,24081,11189,393100
,670109,962119,518154,328153,963153,039151,313150,137Sha

res
outstanding40,10945,10750,80159,60865,96071,08276,53979,62
888,70899,268109,408121,510144,353152,086151,313150,137O
ther information:Capital lease
obligations86,65688,28054,76464,06155,088-----------Data
source: AutoZone annual reports.
Ex4_Cash FlowsAutoZone Cash Flow Statements ($
thousands)Year endedYear endedYear endedAugust 27,August
29,August 30,August
31,20112010200920082007200620052004200320022001200019
99199819971996Cash flows from operating activities:Net
income$848,974$738,311$657,049$641,606$595,672$569,275$
571,019$566,202$517,604$428,148$175,526$267,590$244,783$
227,903$195,008$167,165Adjustments to reconcile net income
tonet cash provided by operating activities:Depreciation and
amortization of property and
equipment196,209192,084180,433169,509159,411139,465135,5
97106,891109,748118,255131,333126,800128,53196,59977,821
63,541Amortization of debt origination
fees8,9626,4953,6441,8371,7191,5592,3434,2307,3342,283-----
-Income tax benefit from exercise of stock
options(34,945)(22,251)(8,407)(10,142)(16,523)(10,608)31,828
24,33937,40242,15913,4954,0504,30016,200--Deferred income
taxes44,667(9,023)46,31867,47424,84436,306(16,628)44,49865,
70128,483(46,981)39,33842,92920,241(7,781)6,082Share-based
compensation expense26,62519,12019,13518,38818,46217,370--
--------Other------19,791(42,094)(8,695)-156,822-----Changes in
operating assets and liabilities:Accounts
receivable(14,605)782(56,823)(11,145)20,48737,900(42,485)3,7
59(19,964)(12,879)10,5627,76420,399(15,260)(5,009)(7,564)M
erchandise
inventories(155,421)(96,077)(76,337)(137,841)(160,780)(182,7
90)(124,566)(119,539)(135,732)(168,150)(164,164)20,715(201,
553)(47,285)(153,552)(158,673)Accounts payable and accrued

expenses342,826349,122137,158175,733186,228184,986109,34
143,612164,201282,408187,80161,38270,304127,68366,15594,9
16Income taxes
payable34,31912,47432,264(3,861)17,58728,676(67,343)32,118
(3,460)13,74310,7984,96613,367(22,230)7,8196,493Other,
net(6,073)5,215(10,626)9,542(1,913)60829,186(25,637)(13,332)
1,720(16,255)(19,645)(11,392)(20,813)(2,898)2,930Net cash
provided by operating
activities1,291,5381,196,252923,808921,100845,194822,747648
,083638,379720,807736,170458,937512,960311,668383,038177,
563174,890Cash flows from investing activities:Capital
expenditures(321,604)(315,400)(272,247)(243,594)(224,474)(26
3,580)(283,478)(184,870)(182,242)(117,239)(169,296)(249,657)
(428,315)(337,202)(295,417)(280,237)Purchase of marketable
securities(43,772)(56,156)(48,444)(54,282)(94,615)(159,957)---
--(4,463)----Proceeds from sale of marketable
securities43,08152,62046,30650,71286,921145,369---
1,9112,552-----Acquisitions------(3,090)(11,441)-----(100,031)--
Disposal of capital
assets3,30111,48910,6634,0143,4539,8453,7972,59014,44350,8
1744,60111,771----Net cash used in investing
activities(318,994)(307,447)(263,722)(243,150)(228,715)(268,3
23)(282,771)(193,721)(167,799)(64,511)(122,143)(242,349)(42
8,315)(437,233)(295,417)(280,237)Cash flows from financing
activities:Net proceeds from commercial
paper134,600155,400277,600(206,700)84,300(51,993)(304,700)
254,40044,800(162,247)(381,853)234,300228,000305,000--Net
proceeds from short-term borrowings6,90126,186---000--
104,00084,900Proceeds from issuance of debt500,000-
500,000750,000-
200,000300,000500,000500,000150,000465,000120,000114,863
33,401--Repayment of debt(199,300)-
(300,700)(229,827)(5,839)(150,000)-
(431,995)(215,000)(15,000)(105,000)--(265,429)-(4,003)Net
proceeds from sale of common
stock55,84652,92239,85527,06558,95238,25364,54733,55245,3

0355,67648,4105,4557,26611,49214,61817,699Purchase of
treasury
stock(1,466,802)(1,123,655)(1,300,002)(849,196)(761,887)(578
,066)(426,852)(848,102)(891,095)(698,983)(366,097)(639,925)(
234,602)(28,746)--Income tax benefit from exercise of stock
options34,94522,2518,40710,14216,52310,608----------
Payments of capital lease
obligations(22,781)(16,597)(17,040)(15,880)(11,360)-----------
Other(17,180)-
(15,016)(8,286)(2,072)(6,478)(349)31,237(14,220)(4,814)3,063
10,610407440-4,244Net cash used in financing
activities(973,771)(883,493)(806,896)(522,682)(621,383)(537,6
76)(367,354)(460,908)(530,212)(675,368)(336,477)(269,560)11
5,93456,158118,618102,840Effect of exchange rate changes on
cash553262(2,945)539------------Net (decrease) increase in cash
and cash
equivalents(674)5,574(149,755)155,807(4,904)16,748(2,042)(16
,250)22,796(3,709)3171,051(713)1,963764(2,507)Cash and cash
equivalents at beginning of
year98,28092,706242,46186,65491,55874,81076,85293,10270,3
0674,0156,9695,9186,6314,6683,9046,411Cash and cash
equivalents at end of
year$97,606$98,280$92,706$242,461$86,654$91,558$74,810$7
6,852$93,102$70,306$7,286$6,969$5,918$6,631$4,668$3,904S
upplemental cash flow information:Interest paid, net of interest
cost
capitalized$155,531$150,745$132,905$107,477$116,580$104,9
29$98,937$77,871$77,533$77,935$97,968$74,745$41,533$17,0
42$8,779$1,971Income taxes
paid$405,654$420,575$299,021$313,875$299,566$267,913$339
,245$237,010$215,760$178,417$100,702$123,036$93,073$122,
529$109,681$69,791Assets acquired through capital
lease$32,301$75,881$16,880$61,572$69,325--Data source:
AutoZone annual reports.
Ex5_Stockholders EquityAutoZone 2011 Statement of
Stockholders’ Equity ($

thousands)AccumulatedCommonAdditionalRetainedOtherShares
CommonPaid-in(Deficit)ComprehensiveTreasury(in
thousands)Issued
(000)StockCapitalEarningsLossStockTotalBalance at August 30,
200863,600$636$537,005$206,099($4,135)($509,918)$229,687
Net income657,049657,049Pension liability adjustments, net of
taxes of ($29,481)(46,956)(46,956)Foreign currency translation
adjustment(43,655)(43,655)Unrealized gain adjustment on
marketable securities, net of taxes of
$306568568Reclassification of net loss on termination of swap
into earnings, net of taxes of $1,6012,7442,744Reclassification
of net gain on derivatives into
earnings(612)(612)Comprehensive income569,138Cumulative
effect of adopting ASC Topic 715 measurement date, net of
taxes of $19830011311Purchase of 9,313 shares of treasury
stock(1,300,002)(1,300,002)Issuance of 3 shares of common
stock395395Retirement of treasury
shares(6,223)(62)(55,071)(726,513)781,646—Sale of common
stock under stock option and stock purchase
plans504539,85039,855Share-based compensation
expense19,13519,135Income tax benefit from exercise of stock
options8,4078,407Balance at August 29,
200957,881$579$549,326$136,935($92,035)($1,027,879)($433,
074)Net income738,311738,311Pension liability adjustments,
net of taxes of ($5,504)(8,133)(8,133)Foreign currency
translation adjustment705705Unrealized loss adjustment on
marketable securities, net of taxes of ($56)(104)(104)Net losses
on outstanding derivatives, net of taxes of
($3,700)(6,278)(6,278)Reclassification of net gain on
derivatives into earnings(612)(612)Comprehensive
income723,889Purchase of 6,376 shares of treasury
stock(1,123,655)(1,123,655)Retirement of treasury
shares(8,504)(85)(85,657)(1,120,289)1,206,031—Sale of
common stock under stock options and stock purchase
plan684752,91552,922Share-based compensation

options22,25122,251Other(301)(11)94(218)Balance at
August 28,
201050,061$501$557,955($245,344)($106,468)($945,409)($738
,765)Net income848,974848,974Pension liability adjustments,
net of taxes of ($3,998)(17,346)(17,346)Foreign currency
translation adjustment8,3478,347Unrealized loss adjustment on
marketable securities, net of taxes of ($91)(171)(171)Net losses
on terminated derivatives(5,453)(5,453)Reclassification of net
losses on derivatives into earnings1,4001,400Comprehensive
income835,751Purchase of 5,598 shares of treasury
stock(1,466,802)(1,466,802)Retirement of treasury
shares(6,577)(66)(82,150)(1,247,627)1,329,843—Sale of
common stock under stock options and stock purchase
plan600655,84055,846Share-based compensation
options34,94534,945Other(1)(1)Balance at August 27,
201144,084$441$591,384($643,998)($119,691)($1,082,368)($1,
254,232)Data source: AutoZone annual reports.
Ex6_Capital StructureYearInterest Expense ($mm)Depr Expense
($mm)Debt ($B)Equity ($B)EBITEBITDACoverage
Ratio1996$1.97$63.540.090.87268.93332.48168.9x1997$8.84$7
7.820.201.08321.35399.1745.1x1998$18.20$96.600.551.30382.
31478.9126.3x1999$45.31$128.530.891.32433.10561.6312.4x20
00$76.83$126.801.250.99512.02638.828.3x2001$100.67$131.33
1.230.87387.69519.025.2x2002$79.86$118.261.190.69771.0188
9.2611.1x2003$84.79$109.751.550.37917.801,027.5512.1x2004
$92.80$106.891.870.17998.711,105.6011.9x2005$102.44$135.6
01.860.39975.661,111.2610.8x2006$107.89$139.471.860.471,0
09.931,149.3910.7x2007$119.12$159.411.940.401,055.271,214.
6810.2x2008$116.75$169.512.250.231,124.131,293.6411.1x200
9$142.32$180.432.73(0.43)1,176.061,356.509.5x2010$158.91$1
92.082.91(0.74)1,319.411,511.509.5x2011$170.56$196.213.35(
1.25)1,494.801,691.019.9xNote: Coverage ratio is defined as
EBITDA divided by interest expense.Data source: AutoZone
annual reports.
AutoZone Capital Structure and Coverage Ratio

Debt ($B) 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
2006 2007 2008 2009 2010 2011 9.4399999999999998E-2
0.19839999999999999 0.54506699999999997
0.88834000000000002 1.2499370000000001
1.2254020000000001 1.1945170000000001
1.546845 1.8692500000000001 1.86185
1.8571569999999999 1.9356180000000001 2.25
2.7269000000000001 2.9084859999999999
3.3516819999999998 Equity ($B) 1996 1997 1998
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
2010 2011 0.86558199999999996 1.0752079999999999
1.302057 1.323801 0.99217900000000003
0.86621300000000001 0.68912700000000005
0.37375799999999998 0.17139299999999999
0.39100699999999999 0.469528 0.4032 0.229687 -
0.43307400000000001 -0.73876500000000001 -1.254232
Coverage Ratio1996 1997 1998 1999 2000 2001 2002 2003
2004 2005 2006 2007 2008 2009 2010 2011
168.85474860335196 45.139884654529006
26.307734563832124 12.394641596045197
8.3147208121827401 5.1559529131277007
11.135274229902329 12.118705035971223
11.913247273824403 10.847603057309918
10.653449378527931 10.19742939655462
11.080928519422674 9.5315705893926186
9.5117205444625554 9.9146443710900183
Book Values ($ billions)
Coverage Ratio
Ex7_Cars,MilesAverage age for:DateAnnual Vehicle-Distance
Traveled (Billion Miles)YearPassengerLight TrucksAverage
ageDistance traveledJan-861,78419958.48.38.42.3Feb-
861,78819968.58.38.52.4Mar-861,79519978.78.58.62.4Apr-
861,79719988.98.58.82.5May-861,80119999.18.58.82.6Jun-
861,80520009.18.48.92.6Jul-861,80920019.38.48.92.7Aug-

861,81320029.48.49.02.8Sep-861,81820039.68.59.12.8Oct-
861,82320049.88.69.42.9Nov-861,830200510.18.79.52.9Dec-
861,838200610.38.99.73.0Jan-871,845200710.49.09.83.0Feb-
871,858200810.69.310.03.0Mar-
871,864200910.89.810.33.0Apr-
871,874201011.010.110.63.0May-
871,881201111.110.410.83.0Jun-871,886Jul-871,891Aug-
871,894Sep-871,903Oct-871,911Nov-871,918Dec-871,924Jan-
881,933Feb-881,939Mar-881,949Apr-881,956May-881,967Jun-
881,977Jul-881,986Aug-881,994Sep-882,000Oct-882,009Nov-
882,016Dec-882,026Jan-892,036Feb-892,041Mar-892,049Apr-
892,056May-892,063Jun-892,068Jul-892,075Aug-892,084Sep-
892,090Oct-892,098Nov-892,104Dec-892,107Jan-902,111Feb-
902,118Mar-902,121Apr-902,126May-902,131Jun-902,136Jul-
902,141Aug-902,143Sep-902,145Oct-902,145Nov-902,146Dec-
902,148Jan-912,142Feb-912,142Mar-912,142Apr-912,142May-
912,145Jun-912,149Jul-912,152Aug-912,159Sep-912,164Oct-
912,170Nov-912,168Dec-912,172Jan-922,182Feb-922,189Mar-
922,194Apr-922,200May-922,205Jun-922,209Jul-922,217Aug-

112,962Nov-112,960Dec-112,963Data source: U.S. Department
of Transportation (miles driven) and, Polk Research (vehicle
age).
Miles Driven and Average Vehicle Age
Distance traveled 1995 1996 1997 1998 1999 2000 2001 2002
2003 2004 2005 2006 2007 2008 2009 2010 2011
2.3260000000000001 2.407 2.4460000000000002

2.536 2.5910000000000002 2.649
2.7370000000000001 2.7679999999999998
2.8330000000000002 2.8690000000000002
2.9420000000000002 2.9870000000000001 3
3.028 3.0059999999999998 2.972
2.9809999999999999 Average age 8.4 8.5 8.6
8.8000000000000007 8.8000000000000007 8.9
8.9 9 9.1 9.4 9.5 9.6999999999999993
9.8000000000000007 10 10.3 10.6 10.8
Distance traveled (trillion miles)
Average Vehicle Age (years)
Ex9_Repurchase & ROIC$ 000, except share repurchases in $
millions1995199619971998199920002001200220032004200520
0620072008200920102011Share
repurchases$0$0$29$235$640$366$699$891$848$427$578$762
$849$1,300$1,124$1,467Net
income$167,165$195,008$227,903$244,783$267,590$175,526$
428,148$517,604$566,202$571,019$569,275$595,672$641,606$
657,049$738,311$848,974AdjustmentsInterest
expense1,9698,84318,20445,31276,830100,66579,86084,79092,
804102,443107,889119,116116,745142,316158,909170,557Rent
expense30,62639,07856,41096,20095,700100,39799,032110,665
118,087150,645143,888152,523165,121181,308195,632213,846
Tax
effect(12,185)(18,018)(27,911)(52,184)(66,445)(78,106)(68,073
)(74,006)(79,081)(87,588)(92,881)(98,795)(102,346)(117,929)(
128,983)(137,962)After-tax
return$187,575$224,911$274,606$334,111$373,675$298,482$5
38,967$639,054$698,012$736,519$728,172$768,516$821,126$8
62,744$963,869$1,095,415Average
debt$53,952$146,400$371,734$716,704$1,069,139$1,237,670$1
,209,960$1,370,681$1,708,048$1,865,550$1,859,504$1,896,388
$2,092,809$2,488,450$2,817,693$3,130,084Average
equity775,146970,3951,188,6331,312,9291,157,990929,196777,

670531,443272,576281,200430,268436,364316,444(101,694)(58
5,920)(996,499)Rent x
6183,756234,468338,460577,200574,200602,381594,195663,99
3708,521774,706863,331915,138990,7261,087,8481,173,7921,2
83,076Average capital lease
obligations0000000000027,54459,57559,41371,52287,468Pre-
tax invested
capital$1,012,854$1,351,263$1,898,826$2,606,833$2,801,329$
2,769,246$2,581,824$2,566,116$2,689,144$2,921,456$3,153,10
2$3,275,434$3,459,553$3,534,017$3,477,088$3,504,130ROIC1
8.5%16.6%14.5%12.8%13.3%10.8%20.9%24.9%26.0%25.2%23.
1%23.5%23.7%24.4%27.7%31.3%Effective Tax
Rate37.4%37.6%37.4%36.9%38.5%38.8%38.1%37.9%37.5%34.
6%36.9%36.4%36.3%36.4%36.4%35.9%Note: ROIC is
calculated as the sum of net income and tax-adjusted interest
and rent expenses divided by the sum of average debt, average
equity, six times rent expense (to approximate capitalizing
rent), and average capital lease obligations.Data source:
AutoZone annual reports
AutoZone’s Share Repurchases and ROIC
Share repurchases 1996 1997 1998 1999 2000 2001 2002 2003
2004 2005 2006 2007 2008 2009 2010 2011 0 0
28.745999999999999 234.602 639.92499999999995
366.09699999999998 698.98299999999995
891.09500000000003 848.10199999999998
426.85199999999998 578.06600000000003
761.88699999999994 849.19600000000003
1300.002 1123.655 1466.8019999999999 ROIC
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
2007 2008 2009 2010 2011 0.18519455505759524
0.16644514447340705 0.1446189081608131
0.12816727523878865 0.13339220808828336
0.10778456805656289 0.20875440028672923
0.24903539590786553 0.25956655813703933
0.25210681880488633 0.23093824960360473
0.23463026332523743 0.23735044390500662

0.24412571520559256 0.27720593379985026
0.31260680611117803
Share Repurchase Amount ($ millions)
Returns
Ex10_Industry StructureYearIndustryTop 10 Auto Parts
Stores200135,23830%200235,59031%200335,35732%200435,4
0534%200535,69036%200635,85038%200736,22441%200836,1
5242%200935,70844%201035,42745%Top 10
StoresPos.StoresCompany14728AutoZone23657O'Reilly Auto
Parts33627Advance Auto Parts41500General Parts /
CARQUEST51035Genuine Parts / NAPA6630Pep
Boys7406Fisher Auto Parts8273Uni-Select9155Replacement
Parts10128Auto-Wares GroupNote: The top 10 companies
(stores) as of August 2010: AutoZone (4,728), O’Reilly Auto
Parts (3,657), Advance Auto Parts (3,627), General
Parts/CARQUEST (1,500), Genuine Parts/NAPA (1,035), Pep
Boys (630), Fisher Auto Parts (406), Uni-Select (273),
Replacement Parts (155), and Auto-Wares Group (128).Data
source: AAIA Factbook and SEC filings
Aftermarket Auto Parts Industry
Industry 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
35238 35590 35357 35405 35690 35850
36224 36152 35708 35427 Top 10 Auto
Parts Stores 2001 2002 2003 2004 2005 2006 2007 2008 2009
2010 0.3 0.31 0.32 0.34 0.36 0.38 0.41 0.42 0.44 0.45
Total Stores for Inudstry
Concentration of Top 10 Retailers

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