Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

AutoZone Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Federal	423,301)	293,022)	438,686)	324,156)	274,504)	328,963)
State	86,687)	48,490)	79,271)	47,880)	45,457)	36,389)
International	154,907)	122,381)	95,351)	60,429)	59,100)	57,702)
Current	664,895)	463,893)	613,308)	432,465)	379,061)	423,054)
Federal	20,266)	160,749)	(21,366)	43,706)	25,757)	(131,926)
State	(21,847)	34,564)	(1,707)	12,544)	6,914)	8,167)
International	(24,126)	(9,719)	(11,359)	(5,173)	2,380)	(502)
Deferred	(25,707)	185,594)	(34,432)	51,077)	35,051)	(124,261)
Income tax expense	639,188)	649,487)	578,876)	483,542)	414,112)	298,793)

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	AutoZone Inc. current decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	AutoZone Inc. deferred increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	AutoZone Inc. income tax expense increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

AutoZone Inc., effective income tax rate (EITR) reconciliation

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Federal tax at statutory U.S. income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	25.90%
State income taxes, net	1.60%	2.10%	2.20%	2.20%	2.00%	1.90%
Transition tax	0.00%	0.00%	0.00%	0.00%	0.00%	1.60%
Share-based compensation	-2.30%	-1.60%	-1.70%	-0.70%	-1.80%	-1.60%
US Tax on Non-US Income, GILTI and Subpart F	3.30%	3.10%	2.80%	3.20%	1.30%	0.00%
Non-US Permanent Differences	-1.40%	-1.50%	-0.40%	-0.50%	0.00%	0.00%
Foreign Tax Credits	-2.30%	-1.90%	-1.70%	-1.10%	-1.10%	0.00%
Other	0.30%	-0.10%	-1.10%	-2.30%	-0.60%	0.10%
Effective tax rate, before impact of tax reform	20.20%	21.10%	21.10%	21.80%	20.80%	27.90%
Impact of tax reform	0.00%	0.00%	0.00%	0.00%	-0.40%	-9.60%
Effective tax rate	20.20%	21.10%	21.10%	21.80%	20.40%	18.30%

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

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Item	Description	The company
Effective tax rate, before impact of tax reform	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

AutoZone Inc., components of deferred tax assets and liabilities

US$ in thousands

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Net operating loss and credit carryforwards	45,081)	33,924)	41,825)	41,437)	42,958)	47,190)
Accrued benefits	82,318)	60,561)	126,086)	88,226)	58,900)	62,867)
Operating lease liabilities	698,728)	692,730)	646,938)	617,002)	—)	—)
Other	90,897)	79,850)	69,340)	69,788)	59,237)	46,375)
Deferred tax assets	917,024)	867,065)	884,189)	816,453)	161,095)	156,432)
Valuation allowances	(24,940)	(27,790)	(31,098)	(28,373)	(23,923)	(19,619)
Net deferred tax assets	892,084)	839,275)	853,091)	788,080)	137,172)	136,813)
Property and equipment	(194,686)	(197,482)	(185,985)	(173,696)	(114,956)	(101,049)
Inventory	(451,360)	(448,273)	(316,736)	(298,585)	(259,827)	(242,138)
Operating lease assets	(652,652)	(650,145)	(609,336)	(581,381)	—)	—)
Other	(43,662)	(25,211)	(37,116)	(60,761)	(47,508)	(44,210)
Deferred tax liabilities	(1,342,360)	(1,321,111)	(1,149,173)	(1,114,423)	(422,291)	(387,397)
Net deferred tax assets (liabilities)	(450,276)	(481,836)	(296,082)	(326,343)	(285,119)	(250,584)

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	AutoZone Inc. deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	AutoZone Inc. net deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	AutoZone Inc. net deferred tax assets (liabilities) decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

AutoZone Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
	Deferred tax assets	86,002)	52,047)	41,043)	27,843)	26,861)	34,620)
	Deferred tax liabilities	536,278)	533,884)	337,125)	354,186)	311,980)	285,204)

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	AutoZone Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	AutoZone Inc. deferred tax liabilities increased from 2021 to 2022 and from 2022 to 2023.

AutoZone Inc., adjustments to financial statements

US$ in thousands

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Adjustment to Total Assets
Total assets (as reported)	15,985,878)	15,275,043)	14,516,199)	14,423,872)	9,895,913)	9,346,980)
Less: Noncurrent deferred tax assets, net	86,002)	52,047)	41,043)	27,843)	26,861)	34,620)
Total assets (adjusted)	15,899,876)	15,222,996)	14,475,156)	14,396,029)	9,869,052)	9,312,360)
Adjustment to Total Liabilities
Total liabilities (as reported)	20,335,772)	18,813,956)	16,313,735)	15,301,849)	11,609,764)	10,867,335)
Less: Noncurrent deferred tax liabilities, net	536,278)	533,884)	337,125)	354,186)	311,980)	285,204)
Total liabilities (adjusted)	19,799,494)	18,280,072)	15,976,610)	14,947,663)	11,297,784)	10,582,131)
Adjustment to Stockholders’ Deficit
Stockholders’ deficit (as reported)	(4,349,894)	(3,538,913)	(1,797,536)	(877,977)	(1,713,851)	(1,520,355)
Less: Net deferred tax assets (liabilities)	(450,276)	(481,836)	(296,082)	(326,343)	(285,119)	(250,584)
Stockholders’ deficit (adjusted)	(3,899,618)	(3,057,077)	(1,501,454)	(551,634)	(1,428,732)	(1,269,771)
Adjustment to Net Income
Net income (as reported)	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Add: Deferred income tax expense (benefit)	(25,707)	185,594)	(34,432)	51,077)	35,051)	(124,261)
Net income (adjusted)	2,502,719)	2,615,198)	2,135,882)	1,784,049)	1,652,272)	1,213,275)

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

AutoZone Inc., Financial Data: Reported vs. Adjusted

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AutoZone Inc., adjusted financial ratios

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Net Profit Margin
Reported net profit margin	14.48%	14.95%	14.84%	13.72%	13.63%	11.92%
Adjusted net profit margin	14.34%	16.09%	14.60%	14.12%	13.93%	10.81%
Total Asset Turnover
Reported total asset turnover	1.09	1.06	1.01	0.88	1.20	1.20
Adjusted total asset turnover	1.10	1.07	1.01	0.88	1.20	1.20
Financial Leverage
Reported financial leverage	—	—	—	—	—	—
Adjusted financial leverage	—	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	—	—	—	—	—	—
Adjusted ROE	—	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	15.82%	15.91%	14.95%	12.01%	16.34%	14.31%
Adjusted ROA	15.74%	17.18%	14.76%	12.39%	16.74%	13.03%

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	AutoZone Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	AutoZone Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	AutoZone Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

AutoZone Inc., Financial Ratios: Reported vs. Adjusted

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	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Net sales	17,457,209)	16,252,230)	14,629,585)	12,631,967)	11,863,743)	11,221,077)
Profitability Ratio
Net profit margin¹	14.48%	14.95%	14.84%	13.72%	13.63%	11.92%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	2,502,719)	2,615,198)	2,135,882)	1,784,049)	1,652,272)	1,213,275)
Net sales	17,457,209)	16,252,230)	14,629,585)	12,631,967)	11,863,743)	11,221,077)
Profitability Ratio
Adjusted net profit margin²	14.34%	16.09%	14.60%	14.12%	13.93%	10.81%

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Net sales
= 100 × 2,528,426 ÷ 17,457,209 = 14.48%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 2,502,719 ÷ 17,457,209 = 14.34%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	AutoZone Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net sales	17,457,209)	16,252,230)	14,629,585)	12,631,967)	11,863,743)	11,221,077)
Total assets	15,985,878)	15,275,043)	14,516,199)	14,423,872)	9,895,913)	9,346,980)
Activity Ratio
Total asset turnover¹	1.09	1.06	1.01	0.88	1.20	1.20
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net sales	17,457,209)	16,252,230)	14,629,585)	12,631,967)	11,863,743)	11,221,077)
Adjusted total assets	15,899,876)	15,222,996)	14,475,156)	14,396,029)	9,869,052)	9,312,360)
Activity Ratio
Adjusted total asset turnover²	1.10	1.07	1.01	0.88	1.20	1.20

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 17,457,209 ÷ 15,985,878 = 1.09

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 17,457,209 ÷ 15,899,876 = 1.10

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	AutoZone Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	15,985,878)	15,275,043)	14,516,199)	14,423,872)	9,895,913)	9,346,980)
Stockholders’ deficit	(4,349,894)	(3,538,913)	(1,797,536)	(877,977)	(1,713,851)	(1,520,355)
Solvency Ratio
Financial leverage¹	—	—	—	—	—	—
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	15,899,876)	15,222,996)	14,475,156)	14,396,029)	9,869,052)	9,312,360)
Adjusted stockholders’ deficit	(3,899,618)	(3,057,077)	(1,501,454)	(551,634)	(1,428,732)	(1,269,771)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—	—

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ deficit
= 15,985,878 ÷ -4,349,894 = —

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ deficit
= 15,899,876 ÷ -3,899,618 = —

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	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Stockholders’ deficit	(4,349,894)	(3,538,913)	(1,797,536)	(877,977)	(1,713,851)	(1,520,355)
Profitability Ratio
ROE¹	—	—	—	—	—	—
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	2,502,719)	2,615,198)	2,135,882)	1,784,049)	1,652,272)	1,213,275)
Adjusted stockholders’ deficit	(3,899,618)	(3,057,077)	(1,501,454)	(551,634)	(1,428,732)	(1,269,771)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—	—

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ deficit
= 100 × 2,528,426 ÷ -4,349,894 = —

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ deficit
= 100 × 2,502,719 ÷ -3,899,618 = —

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	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Total assets	15,985,878)	15,275,043)	14,516,199)	14,423,872)	9,895,913)	9,346,980)
Profitability Ratio
ROA¹	15.82%	15.91%	14.95%	12.01%	16.34%	14.31%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	2,502,719)	2,615,198)	2,135,882)	1,784,049)	1,652,272)	1,213,275)
Adjusted total assets	15,899,876)	15,222,996)	14,475,156)	14,396,029)	9,869,052)	9,312,360)
Profitability Ratio
Adjusted ROA²	15.74%	17.18%	14.76%	12.39%	16.74%	13.03%

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 2,528,426 ÷ 15,985,878 = 15.82%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,502,719 ÷ 15,899,876 = 15.74%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	AutoZone Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

AutoZone Inc. (NYSE:AZO)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

AutoZone Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

AutoZone Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)