AutoZone 2010 Annual Report Download - page 142

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Note F — Marketable Securities
The Company’s basis for determining the cost of a security sold is the “Specific Identification Model”.
Unrealized gains (losses) on marketable securities are recorded in accumulated other comprehensive loss. The
Company’s available-for-sale marketable securities consisted of the following:
(in thousands)
Amortized
Cost
Basis
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
August 28, 2010
Corporate securities ...................................................... $28,707 $ 490 $ (1) $29,196
Government bonds ....................................................... 24,560 283 — 24,843
Mortgage-backed securities ......................................... 8,603 192 — 8,795
Asset-backed securities and other................................ 9,831 47 (11) 9,867
$71,701 $1,012 $ (12) $72,701
(in thousands)
Amortized
Cost
Basis
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
August 29, 2009
Corporate securities ...................................................... $28,302 $ 654 $ (5) $28,951
Government bonds ....................................................... 18,199 283 — 18,482
Mortgage-backed securities ......................................... 14,772 366 (119) 15,019
Asset-backed securities and other................................ 7,589 207 (210) 7,586
$68,862 $1,510 $ (334) $70,038
The debt securities held at August 28, 2010, had effective maturities ranging from less than one year to
approximately 3 years. The Company did not realize any material gains or losses on its marketable securities
during fiscal 2010.
The Company holds two securities that are in an unrealized loss position of approximately $12 thousand at
August 28, 2010. The Company has the intent and ability to hold these investments until recovery of fair value
or maturity, and does not deem the investments to be impaired on an other than temporary basis. In evaluating
whether the securities are deemed to be impaired on an other than temporary basis, the Company considers
factors such as the duration and severity of the loss position, the credit worthiness of the investee, the term to
maturity and our intent and ability to hold the investments until maturity or until recovery of fair value.
Note G — Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss includes certain adjustments to pension liabilities, foreign currency
translation adjustments, certain activity for interest rate swaps that qualify as cash flow hedges and unrealized
gains (losses) on available-for-sale securities.
52
10-K