AutoZone 2010 Annual Report Download - page 146

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As of August 28, 2010, the Company was in compliance with all covenants related to its borrowing
arrangements. All of the Company’s debt is unsecured. Scheduled maturities of long-term debt are as follows:
(in thousands)
Scheduled
Maturities
2011........................................................................................................................................................ $ 632,300
2012........................................................................................................................................................ —
2013........................................................................................................................................................ 500,000
2014........................................................................................................................................................ 500,000
2015........................................................................................................................................................ 500,000
Thereafter ............................................................................................................................................... 750,000
$2,882,300
The fair value of the Company’s debt was estimated at $3.182 billion as of August 28, 2010, and $2.853 billion
as of August 29, 2009, based on the quoted market prices for the same or similar issues or on the current rates
available to the Company for debt of the same remaining maturities. Such fair value is greater than the
carrying value of debt by $273.5 million and $126.5 million at August 28, 2010 and August 29, 2009,
respectively.
Note J — Interest Expense
Net interest expense consisted of the following:
(in thousands)
August 28,
2010
August 29,
2009
August 30,
2008
Year Ended
Interest expense..................................................................................... $162,628 $147,504 $121,843
Interest income...................................................................................... (2,626) (3,887) (3,785)
Capitalized interest ............................................................................... (1,093) (1,301) (1,313)
$158,909 $142,316 $116,745
Note K — Stock Repurchase Program
During 1998, the Company announced a program permitting the Company to repurchase a portion of its
outstanding shares not to exceed a dollar maximum established by the Company’s Board of Directors. The
program was last amended on June 15, 2010 to increase the repurchase authorization to $8.9 billion from
$8.4 billion. From January 1998 to August 28, 2010, the Company has repurchased a total of 121.7 million
shares at an aggregate cost of $8.7 billion.
The following table summarizes our share repurchase activity for the following fiscal years:
(in thousands)
August 28,
2010
August 29,
2009
August 30,
2008
Year Ended
Amount.................................................................................................. $1,123,655 $1,300,002 $849,196
Shares .................................................................................................... 6,376 9,313 6,802
On September 28, 2010, the Board of Directors voted to increase the authorization by $500 million to raise
the cumulative share repurchase authorization from $8.9 billion to $9.4 billion. From August 29, 2010 to
October 25, 2010, the Company repurchased approximately 800 thousand shares for $185.9 million.
56
10-K