AutoZone 2008 Annual Report Download - page 107
Download and view the complete annual report
Please find page 107 of the 2008 AutoZone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.
'XULQJ-XO\RXUPLOOLRQ6HQLRU1RWHVPDWXULQJDWWKDWWLPHZHUHUHSDLGZLWKDQLQFUHDVHLQFRPPHUFLDO
SDSHU2Q$XJXVWZHLVVXHGPLOOLRQLQ6HQLRU1RWHVGXHDQGPLOOLRQLQ
6HQLRU1RWHVGXHXQGHURXUVKHOIUHJLVWUDWLRQVWDWHPHQWILOHGZLWKWKH6HFXULWLHVDQG([FKDQJH&RPPLVVLRQRQ
-XO\:HXVHGDSRUWLRQRIWKHSURFHHGVWRSD\GRZQRXUFRPPHUFLDOSDSHUDQGLQWHQGWRXVHWKH
UHPDLQLQJIRUJHQHUDOFRUSRUDWHSXUSRVHVLQFOXGLQJUHSD\LQJUHGHHPLQJRUUHSXUFKDVLQJRXWVWDQGLQJGHEWDQGIRU
ZRUNLQJFDSLWDOFDSLWDOH[SHQGLWXUHVQHZVWRUHRSHQLQJVVWRFNUHSXUFKDVHVDQGDFTXLVLWLRQV
7KHPLOOLRQEDQNWHUPORDQHQWHUHGLQ'HFHPEHUZDVDPHQGHGLQ$SULOWRKDYHVLPLODUWHUPVDQG
FRQGLWLRQVDVWKHELOOLRQFUHGLWIDFLOLWLHVEXWZLWKD'HFHPEHUPDWXULW\DQGZDVIXUWKHUDPHQGHGLQ
$XJXVWWRUHGXFHWKHLQWHUHVWUDWHRQ(XURGROODUORDQV7KDWFUHGLWDJUHHPHQWZLWKDJURXSRIEDQNVSURYLGHV
IRUDWHUPORDQZKLFKFRQVLVWVRIDWWKH&RPSDQ\¶VHOHFWLRQEDVHUDWHORDQV(XURGROODUORDQVRUDFRPELQDWLRQ
WKHUHRI7KHLQWHUHVWDFFUXHVRQEDVHUDWHORDQVDWDEDVHUDWHSHUDQQXPHTXDOWRWKHKLJKHURIWKHSULPHUDWHRUWKH
)HGHUDO)XQGV5DWHSOXVRI,QWHUHVWDFFUXHVRQ(XURGROODUORDQVDWDGHILQHG(XURGROODUUDWHSOXVWKH
DSSOLFDEOHSHUFHQWDJHZKLFKFDQUDQJHIURPEDVLVSRLQWVWREDVLVSRLQWVGHSHQGLQJXSRQWKH&RPSDQ\¶V
VHQLRUXQVHFXUHGQRQFUHGLWHQKDQFHGORQJWHUPGHEWUDWLQJ%DVHGRQ$XWR=RQH¶VUDWLQJVDW$XJXVWWKH
DSSOLFDEOHSHUFHQWDJHRQ(XURGROODUORDQVLVEDVLVSRLQWV7KH&RPSDQ\PD\VHOHFWLQWHUHVWSHULRGVRIRQHWZR
WKUHHRUVL[PRQWKVIRU(XURGROODUORDQVVXEMHFWWRDYDLODELOLW\,QWHUHVWLVSD\DEOHDWWKHHQGRIWKHVHOHFWHGLQWHUHVW
SHULRGEXWQROHVVIUHTXHQWO\WKDQTXDUWHUO\$XWR=RQHHQWHUHGLQWRDQLQWHUHVWUDWHVZDSDJUHHPHQWRQ'HFHPEHU
WRHIIHFWLYHO\IL[EDVHGRQFXUUHQWGHEWUDWLQJVWKHLQWHUHVWUDWHRIWKHWHUPORDQDW$XWR=RQHKDV
WKHRSWLRQWRH[WHQGORDQVLQWRVXEVHTXHQWLQWHUHVWSHULRGVRUFRQYHUWWKHPLQWRORDQVRIDQRWKHULQWHUHVWUDWHW\SH
7KHHQWLUHXQSDLGSULQFLSDODPRXQWRIWKHWHUPORDQZLOOEHGXHDQGSD\DEOHLQIXOORQ'HFHPEHUZKHQWKH
IDFLOLW\WHUPLQDWHV7KH&RPSDQ\PD\SUHSD\WKHWHUPORDQLQZKROHRULQSDUWDWDQ\WLPHZLWKRXWSHQDOW\VXEMHFW
WRUHLPEXUVHPHQWRIWKHOHQGHUV¶EUHDNDJHDQGUHGHSOR\PHQWFRVWVLQWKHFDVHRISUHSD\PHQWRI(XURGROODU
ERUURZLQJV
'XULQJ$SULOWKHPLOOLRQ6HQLRU1RWHVPDWXULQJDWWKDWWLPHZHUHUHSDLGZLWKDQLQFUHDVHLQ
FRPPHUFLDOSDSHU2Q-XQHWKH&RPSDQ\LVVXHGPLOOLRQLQ6HQLRU1RWHVGXHXQGHULWV
H[LVWLQJVKHOIUHJLVWUDWLRQVWDWHPHQWILOHGZLWKWKH6HFXULWLHVDQG([FKDQJH&RPPLVVLRQRQ$XJXVW7KDW
VKHOIUHJLVWUDWLRQDOORZHGWKH&RPSDQ\WRVHOOXSWRPLOOLRQLQGHEWVHFXULWLHVWRIXQGJHQHUDOFRUSRUDWH
SXUSRVHVLQFOXGLQJUHSD\LQJUHGHHPLQJRUUHSXUFKDVLQJRXWVWDQGLQJGHEWDQGIRUZRUNLQJFDSLWDOFDSLWDO
H[SHQGLWXUHVQHZVWRUHRSHQLQJVVWRFNUHSXUFKDVHVDQGDFTXLVLWLRQV7KHUHPDLQGHURIWKHVKHOIUHJLVWUDWLRQZDV
FDQFHOOHGLQ)HEUXDU\
7KHDQGQRWHVLVVXHGGXULQJ$XJXVWDUHVXEMHFWWRDQLQWHUHVWUDWHDGMXVWPHQWLIWKHGHEW
UDWLQJVDVVLJQHGWRWKHQRWHVDUHGRZQJUDGHGDQGDSURYLVLRQZKHUHUHSD\PHQWRIWKHQRWHVPD\EHDFFHOHUDWHGLI
$XWR=RQHH[SHULHQFHVDFKDQJHLQFRQWURODVGHILQHGLQWKHDJUHHPHQWV7KH&RPSDQ\¶VERUURZLQJVXQGHULWV
RWKHU6HQLRU1RWHVDUUDQJHPHQWVFRQWDLQPLQLPDOFRYHQDQWVSULPDULO\UHVWULFWLRQVRQOLHQV8QGHULWVRWKHU
ERUURZLQJDUUDQJHPHQWVFRYHQDQWVLQFOXGHOLPLWDWLRQVRQWRWDOLQGHEWHGQHVVUHVWULFWLRQVRQOLHQVDPLQLPXPIL[HG
FKDUJHFRYHUDJHUDWLRDQGDFKDQJHRIFRQWUROSURYLVLRQWKDWPD\UHTXLUHDFFHOHUDWLRQRIWKHUHSD\PHQWREOLJDWLRQV
XQGHUFHUWDLQFLUFXPVWDQFHV$OORIWKHUHSD\PHQWREOLJDWLRQVXQGHUWKH&RPSDQ\¶VERUURZLQJDUUDQJHPHQWVPD\EH
DFFHOHUDWHGDQGFRPHGXHSULRUWRWKHVFKHGXOHGSD\PHQWGDWHLIFRYHQDQWVDUHEUHDFKHGRUDQHYHQWRIGHIDXOW
RFFXUV$VRI$XJXVWWKH&RPSDQ\ZDVLQFRPSOLDQFHZLWKDOOFRYHQDQWVDQGH[SHFWVWRUHPDLQLQ
FRPSOLDQFHZLWKDOOFRYHQDQWV
$OORIWKH&RPSDQ\¶VGHEWLVXQVHFXUHG6FKHGXOHGPDWXULWLHVRIORQJWHUPGHEWDUHDVIROORZV
)LVFDO<HDU
$PRXQW
LQWKRXVDQGV
²
²
7KHUHDIWHU
7KHIDLUYDOXHRIWKH&RPSDQ\¶VGHEWZDVHVWLPDWHGDWELOOLRQDVRI$XJXVWDQGELOOLRQDVRI
$XJXVWEDVHGRQWKHTXRWHGPDUNHWSULFHVIRUWKHVDPHRUVLPLODULVVXHVRURQWKHFXUUHQWUDWHVDYDLODEOHWR
10-K