AutoZone 2013 Annual Report Download - page 122

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60
As of August 31, 2013, 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
2014 ............................................................................................................................................. $ 963,267
2015 ............................................................................................................................................. 500,000
2016 ............................................................................................................................................. 500,000
2017 ............................................................................................................................................. -
2018 ............................................................................................................................................. 250,000
Thereafte
r
..................................................................................................................................... 1,800,000
$ 4,013,267
The fair value of the Company’s debt was estimated at $4.259 billion as of August 31, 2013, and $4.055 billion as
of August 25, 2012, 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 terms (Level 2). Such fair value is greater than the carrying value
of debt by $72.2 million at August 31, 2013 and $286.6 million at August 25, 2012.
Note J – Interest Expense
Net interest expense consisted of the following:
Year Ended
(in thousands)
August 31,
2013
August 25,
2012
August 27,
2011
Interest expense ................................................................... $ 188,324 $ 178,547 $ 173,674
Interest income .................................................................... ( 1,606) (1,397) (2,058)
Capitalized interest .............................................................. (1,303 ) (1,245) (1,059)
$185,415 $175,905
$ 170,557
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 Board. The program was last amended on
June 11, 2013 to increase the repurchase authorization to $13.40 billion from $12.65 billion. From January 1998
to August 31, 2013, the Company has repurchased a total of 134.6 million shares at an aggregate cost of $12.93
billion.
The Company’s share repurchase activity consisted of the following:
Year Ended
(in thousands)
August 31,
2013
August 25,
2012
August 27,
2011
Amount ............................................................................... $ 1,387,315 $ 1,362,869 $ 1,466,802
Shares .................................................................................. 3,511 3,795 5,598
During the fiscal year 2013, the Company retired 3.9 million shares of treasury stock which had previously been
repurchased under the Company’s share repurchase program. The retirement increased Retained deficit by
$1,362.2 million and decreased Additional paid-in capital by $75.7 million. During the comparable prior year
period, the Company retired 4.9 million shares of treasury stock, which increased Retained deficit by $1,319.6
million and decreased Additional paid-in capital by $72.5 million.
10-K