AutoZone 2013 Annual Report Download - page 113

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51
The Company generally issues new shares when options are exercised. The following table summarizes
information about stock option activity for the year ended August 31, 2013:
Number
of Shares
Weighted
Average
Exercise
Price
Wei
g
hted-
Average
Remaining
Contractual
Term
(in years)
Aggregate
Intrinsic
Value
(in thousands)
Outstanding
–
August 25, 2012 ....... 2,262,679 $173.01
Granted ........................................ 364,160 371.76
Exercised ..................................... (773,942) 128.68
Cancelled ..................................... (56,909) 282.28
Outstanding
–
August 31, 2013 ....... 1,795,988 228.95 6.56 $ 343,015
Exercisable ...................................... 899,079 152.35 5.05 240,584
Expected to vest .............................. 896,909 305.74 8.07 92,187
Available for future grants .............. 2,085,615
The Company recognized $1.5 million in expense related to the discount on the selling of shares to employees and
executives under various share purchase plans in fiscal 2013, $1.5 million in fiscal 2012 and $1.4 million in fiscal
2011. The Sixth Amended and Restated AutoZone, Inc. Employee Stock Purchase Plan (the “Employee Plan”),
which is qualified under Section 423 of the Internal Revenue Code, permits all eligible employees to purchase
AutoZone’s common stock at 85% of the lower of the market price of the common stock on the first day or last
day of each calendar quarter through payroll deductions. Maximum permitted annual purchases are $15,000 per
employee or 10 percent of compensation, whichever is less. Under the Employee Plan, 18,228 shares were sold to
employees in fiscal 2013, 19,403 shares were sold to employees in fiscal 2012, and 21,608 shares were sold to
employees in fiscal 2011. The Company repurchased 22,915 shares at fair value in fiscal 2013, 24,113 shares at
fair value in fiscal 2012, and 30,864 shares at fair value in fiscal 2011 from employees electing to sell their stock.
Issuances of shares under the Employee Plan are netted against repurchases and such repurchases are not included
in share repurchases disclosed in “Note K – Stock Repurchase Program.” At August 31, 2013, 234,744 shares of
common stock were reserved for future issuance under the Employee Plan.
Once executives have reached the maximum purchases under the Employee Plan, the Fifth Amended and Restated
Executive Stock Purchase Plan (the “Executive Plan”) permits all eligible executives to purchase AutoZone’s
common stock up to 25 percent of his or her annual salary and bonus. Purchases under the Executive Plan were
3,454 shares in fiscal 2013, 3,937 shares in fiscal 2012, and 1,719 shares in fiscal 2011. At August 31, 2013,
248,953 shares of common stock were reserved for future issuance under the Executive Plan.
Note C – Accrued Expenses and Other
Accrued expenses and other consisted of the following:
(in thousands)
August 31,
2013
August 25,
2012
Medical and casualty insurance claims (current portion)................................
.
$ 66,133 $ 63,484
Accrued compensation, related payroll taxes and benefits .............................
.
137,165 151,669
Property, sales, and other taxes .......................................................................
.
90,944 97,542
Accrued interes
t
..............................................................................................
.
40,442 39,220
Accrued gift cards ...........................................................................................
.
32,160 29,060
Accrued sales and warranty returns ................................................................
.
14,171 17,276
Capital lease obligations .................................................................................
.
32,246 29,842
Othe
r
...............................................................................................................
.
54,570 49,992
$467,831
$ 478,085
The Company retains a significant portion of the insurance risks associated with workers’ compensation,
employee health, general, products liability, property and vehicle insurance. A portion of these self-insured losses
10-K