AUTOZONE INC Segments Disclosure
Note P – Segment Reporting
The Company is a leading retailer and distributor of automotive parts and accessories through the Company’s 7,657 stores in the Americas. The Company adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, during the fourth quarter of fiscal 2025.
The Company determines its segments based on how the business is managed and evaluated. During the fourth quarter of fiscal 2025, the Company combined all its previously defined operating segments into a operating and reportable segment to align with how the Company is currently managed and evaluated. This operating segment includes all operations which are designed to enable customers to purchase products seamlessly in stores and from our online platforms. We carry an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products. The Company’s chief operating decision maker (“CODM”), the Chief Executive Officer, regularly reviews consolidated net income, as well as significant segment expenses included in the table below, to evaluate performance and allocate resources. The CODM also evaluates consolidated actual results versus forecasts, budgets and prior year results. The measure of segment assets is reported as “Total assets” on the Consolidated Balance Sheets as of August 30, 2025, and August 31, 2024. Expenditures for long-lived segment assets are reported as “Capital Expenditures” on the Consolidated Statements of Cash Flows for the fiscal years ended 2025, 2024 and 2023. Segment information for previous periods has been recast to conform to the current-period presentation.
The following table represents significant expenses that are regularly provided to the CODM for the following fiscal years:
Year Ended | |||||||||
| August 30, |
| August 31, |
| August 26, | ||||
(in thousands) | 2025 | 2024 | 2023 | ||||||
Auto Parts Segment |
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Net sales | $ | 18,938,717 | $ | 18,490,268 | $ | 17,457,209 | |||
Cost of sales, including warehouse and delivery expenses | 8,972,243 | 8,673,216 | 8,386,787 | ||||||
Gross profit | 9,966,474 | 9,817,052 | 9,070,422 | ||||||
Less: | |||||||||
Compensation expense(1) | 3,858,570 | 3,708,476 | 3,471,566 | ||||||
Rent expense(2) | 478,106 | 456,862 | 410,975 | ||||||
Depreciation & amortization | 544,117 | 498,391 | 451,522 | ||||||
Advertising expense | 109,531 | 102,656 | 99,510 | ||||||
Other segment expenses(3) | 1,365,994 | 1,261,959 | 1,162,863 | ||||||
Interest expense, net | 475,824 | 451,578 | 306,372 | ||||||
Income tax expense | 636,085 | 674,703 | 639,188 | ||||||
Consolidated net income | $ | 2,498,247 | $ | 2,662,427 | $ | 2,528,426 | |||
Auto Parts Segment Sales by Product Grouping: |
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Failure | $ | 9,291,584 | $ | 8,979,152 | $ | 8,407,690 | |||
Maintenance items |
| 6,807,347 |
| 6,618,494 |
| 6,223,620 | |||
Accessories and other |
| 2,839,786 |
| 2,892,622 |
| 2,825,899 | |||
Auto Parts net sales | $ | 18,938,717 | $ | 18,490,268 | $ | 17,457,209 | |||
| (1) | Compensation expense includes operating, selling, general and administrative expenses for payroll expense, benefits, related taxes, share-based compensation and other employee costs. |
| (2) | Rent expense includes rent and variable operating lease components, related to insurance and common area maintenance included in selling, general and administrative expenses. Rent expense related to supply chain is included in cost of sales, including warehouse and delivery expenses. |
| (3) | Other segment items include vehicle expense, utilities expense, real estate taxes and insurance expense, service charges and other operating expenses. |
The following table presents the Company’s net sales classified by geography:
Year Ended | |||||||||
August 30, | August 31, | August 26, | |||||||
(in thousands) | 2025 | 2024 | 2023 | ||||||
In the United States | $ | 16,671,606 | $ | 16,219,570 | $ | 15,619,789 | |||
Outside the United States | 2,267,111 | 2,270,698 | 1,837,420 | ||||||
Total | $ | 18,938,717 | $ | 18,490,268 | $ | 17,457,209 | |||
The following table presents the Company’s long-lived assets, consisting primarily of property and equipment, less accumulated depreciation and amortization and operating lease right-of-use assets, classified by geography:
August 30, | August 31, | |||||
(in thousands) | 2025 | 2024 | ||||
In the United States | $ | 8,847,597 | $ | 8,222,624 | ||
Outside the United States | 1,409,578 | 1,018,695 | ||||
Total | $ | 10,257,175 | $ | 9,241,319 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Oct 27, 2025 | Showing above |
| 2024 | Oct 28, 2024 | |
| 2023 | Oct 24, 2023 | |
| 2022 | Oct 24, 2022 | |
| 2021 | Oct 25, 2021 | |
| 2020 | Oct 26, 2020 | |
| 2019 | Oct 28, 2019 | |
| 2018 | Oct 24, 2018 | |
| 2017 | Oct 25, 2017 | |
| 2016 | Oct 24, 2016 | |
| 2015 | Oct 26, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.