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Item 6. Selected Financial Data

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Item 6. Selected Financial Data

(in thousands, except per share data, same store sales and selected operating data)Fiscal Year Ended August
2019(1)2018(2)201720162015
Income Statement Data
Net sales$11,863,743$11,221,077$10,888,676$10,635,676$10,187,340
Cost of sales, including warehouse and delivery expenses5,498,7425,247,3315,149,0565,026,9404,860,309
Gross profit6,365,0015,973,7465,739,6205,608,7365,327,031
Operating, selling, general and administrative expenses4,148,8644,162,8903,659,5513,548,3413,373,980
Operating profit2,216,1371,810,8562,080,0692,060,3951,953,051
Interest expense, net184,804174,527154,580147,681150,439
Income before income taxes2,031,3331,636,3291,925,4891,912,7141,802,612
Income tax expense(3)414,112298,793644,620671,707642,371
Net income(3)$1,617,221$1,337,536$1,280,869$1,241,007$1,160,241
Diluted earnings per share(3)$63.43$48.77$44.07$40.70$36.03
Weighted average shares for diluted earnings per share(3)25,49827,42429,06530,48832,206
Same Store Sales
Increase in domestic comparable store net sales(4)3.0%1.8%0.5%2.4%3.8%
Balance Sheet Data
Current assets$5,028,685$4,635,869$4,611,255$4,239,573$3,970,294
Working capital (deficit)(483,456)(392,812)(155,046)(450,747)(742,579)
Total assets9,895,9139,346,9809,259,7818,599,7878,102,349
Current liabilities5,512,1415,028,6814,766,3014,690,3204,712,873
Debt5,206,3445,005,9305,081,2384,924,1194,624,876
Long-term capital leases123,659102,013102,322102,45187,639
Stockholders’ (deficit)(1,713,851)(1,520,355)(1,428,377)(1,787,538)(1,701,390)
Selected Operating Data
Number of locations at beginning of year6,2026,0295,8145,6095,391
Acquired locations(5)————17
Sold locations(6)—26———
New locations209201215205202
Closed locations—2——1
Net new locations209199215205201
Relocated locations27565
Number of locations at end of year6,4116,2026,0295,8145,609
AutoZone domestic commercial programs4,8934,7414,5924,3904,141
Inventory per location (in thousands)$674$636$644$625$610
Total AutoZone store square footage (in thousands)42,52641,06639,68438,19836,815
Average square footage per AutoZone store6,6336,6216,6116,6006,587
Increase in AutoZone store square footage3.6%3.5%3.9%3.8%3.9%
Average net sales per AutoZone store (in thousands)$1,847$1,778$1,756$1,773$1,761
Net sales per AutoZone store average square foot$279$269$266$269$268
Total employees at end of year (in thousands)9689878481
Inventory turnover(7)1.3x1.3x1.4x1.4x1.4x
Accounts payable to inventory ratio112.6%111.8%107.4%112.8%112.9%
After-tax return on invested capital(8)35.7%32.1%29.9%31.3%31.2%
Adjusted debt to EBITDAR(9)2.52.52.62.52.5
Net cash provided by operating activities (in thousands)(3)$2,128,513$2,080,292$1,570,612$1,641,060$1,573,018
Cash flow before share repurchases and changes in debt (in thousands)(10)$1,758,672$1,596,367$1,017,585$1,166,987$1,018,440
Share repurchases (in thousands)$2,004,896$1,592,013$1,071,649$1,452,462$1,271,416
Number of shares repurchased (in thousands)2,1822,3981,4951,9032,010
(1)The fiscal year ended August 31, 2019 consisted of 53 weeks.
(2)Fiscal 2018 was negatively impacted by pension termination charges of $130.3 million (pre-tax) recognized in the fourth quarter and asset impairments of $193.2 million (pre-tax) recognized in the second quarter of fiscal 2018. See “Note L – Pension and Savings Plans” and “Note M – Sale of Assets” of the Notes to Consolidated Financial Statements for more information. Fiscal 2018 also includes a benefit to net income related to the Tax Cuts and Jobs Act (“Tax Reform”). See “Note D- Income Taxes” of the Notes to Consolidated Financial Statements for more information.
Table of Contents
(3)Fiscal 2019, 2018 and 2017 include excess tax benefits from stock option exercises of $46.0 million, $31.3 million and $31.2 million, respectively, related to the adoption of Accounting Standards Update (“ASU”) 2016-09, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting. The Company adopted ASU 2016-09 effective August 28, 2016 and applied the recognition of excess tax deficiencies and tax benefits in the income statement on a prospective basis. Income tax expense, net income and diluted earnings per share amounts presented for prior periods were not restated. The Company applied ASU 2016-09 relating to the presentation of the excess tax benefits on the Consolidated Statements of Cash Flows retrospectively. Prior period amounts for net cash provided by operating activities for all years presented above were restated to conform to the current period presentation.
(4)The domestic comparable sales increases are based on sales for all AutoZone domestic stores open at least one year. Same store sales are computed on a 52-week basis. Relocated stores are included in the same store sales computation based on the year the original store was opened. Closed store sales are included in the same store sales computation up to the week it closes, and excluded from the computation for all periods subsequent to closing. All sales through our www.autozone.com website, including consumer direct ship-to-home sales, are also included in the computation.
(5)17 IMC branches were acquired on September 27, 2014.
(6)26 IMC branches were sold on April 4, 2018. See “Note M – Sale of Assets” of the Notes to Consolidated Financial Statements for more information.
(7)Inventory turnover is calculated as cost of sales divided by the average merchandise inventory balance over the trailing 5 quarters.
(8)After-tax return on invested capital is defined as after-tax operating profit (excluding rent charges) divided by invested capital (which includes a factor to capitalize operating leases). For fiscal 2019, after-tax operating profit was adjusted for the impact of the revaluation of deferred tax liabilities, net of repatriation tax. For fiscal 2018, after-tax operating profit was adjusted for impairment charges, pension termination charges and the impact of the revaluation of deferred tax liabilities, net of repatriation tax. See Reconciliation of Non-GAAP Financial Measures in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
(9)Adjusted debt to EBITDAR is defined as the sum of total debt, capital lease obligations and annual rents times six; divided by net income plus interest, taxes, depreciation, amortization, rent and share-based compensation expense. For fiscal 2018, net income was adjusted for impairment charges and pension termination charges before tax impact. See Reconciliation of Non-GAAP Financial Measures in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
(10)Cash flow before share repurchases and changes in debt is defined as the change in cash and cash equivalents less the change in debt plus treasury stock purchases. See Reconciliation of Non-GAAP Financial Measures in Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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