AutoZone 2009 Annual Report Download - page 94
Download and view the complete annual report
Please find page 94 of the 2009 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.
E\WKH)$6%$PHULFDQ,QVWLWXWHRI&HUWLILHG3XEOLF$FFRXQWDQWVDQGWKH(PHUJLQJ,VVXHV7DVN)RUFHLQWRD
FRPSUHKHQVLYHWRSLFDOO\RUJDQL]HGRQOLQHGDWDEDVH
&ULWLFDO$FFRXQWLQJ(VWLPDWHV
3UHSDUDWLRQRIRXUFRQVROLGDWHGILQDQFLDOVWDWHPHQWVUHTXLUHVXVWRPDNHHVWLPDWHVDQGDVVXPSWLRQVDIIHFWLQJWKH
UHSRUWHGDPRXQWVRIDVVHWVDQGOLDELOLWLHVDWWKHGDWHRIWKHILQDQFLDOVWDWHPHQWVUHSRUWHGDPRXQWVRIUHYHQXHVDQG
H[SHQVHVGXULQJWKHUHSRUWLQJSHULRGDQGUHODWHGGLVFORVXUHVRIFRQWLQJHQWOLDELOLWLHV,QWKH1RWHVWR&RQVROLGDWHG
)LQDQFLDO6WDWHPHQWVZHGHVFULEHRXUVLJQLILFDQWDFFRXQWLQJSROLFLHVXVHGLQSUHSDULQJWKHFRQVROLGDWHGILQDQFLDO
VWDWHPHQWV2XUSROLFLHVDUHHYDOXDWHGRQDQRQJRLQJEDVLVDQGDUHGUDZQIURPKLVWRULFDOH[SHULHQFHDQGRWKHU
DVVXPSWLRQVWKDWZHEHOLHYHWREHUHDVRQDEOHXQGHUWKHFLUFXPVWDQFHV$FWXDOUHVXOWVFRXOGGLIIHUXQGHUGLIIHUHQW
DVVXPSWLRQVRUFRQGLWLRQV2XUVHQLRUPDQDJHPHQWKDVLGHQWLILHGWKHFULWLFDODFFRXQWLQJSROLFLHVIRUWKHDUHDVWKDW
DUHPDWHULDOO\LPSDFWHGE\HVWLPDWHVDQGDVVXPSWLRQVDQGKDYHGLVFXVVHGVXFKSROLFLHVZLWKWKH$XGLW&RPPLWWHHRI
RXU%RDUGRI'LUHFWRUV7KHIROORZLQJLWHPVLQRXUFRQVROLGDWHGILQDQFLDOVWDWHPHQWVUHTXLUHVLJQLILFDQWHVWLPDWLRQ
RUMXGJPHQW
,QYHQWRU\5HVHUYHVDQGFRVWRIVDOHV
/,)2
:HVWDWHRXULQYHQWRULHVDWWKHORZHURIFRVWRUPDUNHWXVLQJWKHODVWLQILUVWRXW³/,)2´PHWKRGIRUGRPHVWLF
PHUFKDQGLVHDQGWKHILUVWLQILUVWRXW),)2PHWKRGIRU0H[LFRLQYHQWRULHV'XHWRSULFHGHIODWLRQRQRXU
PHUFKDQGLVHSXUFKDVHVRXUGRPHVWLFLQYHQWRU\EDODQFHVDUHHIIHFWLYHO\PDLQWDLQHGXQGHUWKH),)2PHWKRG:HGR
QRWZULWHXSLQYHQWRU\IRUIDYRUDEOH/,)2DGMXVWPHQWVDQGGXHWRSULFHGHIODWLRQ/,)2FRVWVRIRXUGRPHVWLF
LQYHQWRULHVH[FHHGUHSODFHPHQWFRVWVE\PLOOLRQDW$XJXVWFDOFXODWHGXVLQJWKHGROODUYDOXH
PHWKRG
,QYHQWRU\2EVROHVFHQFHDQG6KULQNDJH
2XULQYHQWRU\SULPDULO\KDUGSDUWVPDLQWHQDQFHLWHPVDQGDFFHVVRULHVQRQDXWRPRWLYHSURGXFWVLVXVHGRQ
YHKLFOHVWKDWKDYHUDWKHUORQJOLYHVDQGWKHUHIRUHWKHULVNRIREVROHVFHQFHLVPLQLPDODQGWKHPDMRULW\RIH[FHVV
LQYHQWRU\KDVKLVWRULFDOO\EHHQUHWXUQHGWRRXUYHQGRUVIRUFUHGLW,QWKHLVRODWHGLQVWDQFHVZKHUHOHVVWKDQIXOOFUHGLW
ZLOOEHUHFHLYHGIRUVXFKUHWXUQVDQGZKHUHZHDQWLFLSDWHWKDWLWHPVZLOOEHVROGDWUHWDLOSULFHVWKDWDUHOHVVWKDQ
UHFRUGHGFRVWVZHUHFRUGDFKDUJHOHVVWKDQPLOOLRQLQHDFKRIWKHODVWWKUHH\HDUVWKURXJKFRVWRIVDOHVIRUWKH
GLIIHUHQFH7KHVHFKDUJHVDUHEDVHGRQPDQDJHPHQW¶VMXGJPHQWLQFOXGLQJHVWLPDWHVDQGDVVXPSWLRQVUHJDUGLQJ
PDUNHWDELOLW\RISURGXFWVDQGWKHPDUNHWYDOXHRILQYHQWRU\WREHVROGLQIXWXUHSHULRGV
+LVWRULFDOO\ZHKDYHQRWHQFRXQWHUHGPDWHULDOH[SRVXUHWRLQYHQWRU\REVROHVFHQFHRUH[FHVVLQYHQWRU\QRUKDYHZH
H[SHULHQFHGPDWHULDOFKDQJHVWRRXUHVWLPDWHV+RZHYHUZHPD\EHH[SRVHGWRPDWHULDOORVVHVVKRXOGRXUYHQGRUV
DOWHUWKHLUSROLF\ZLWKUHJDUGWRDFFHSWLQJH[FHVVLQYHQWRU\UHWXUQV
$GGLWLRQDOO\ZHUHGXFHLQYHQWRU\IRUSURMHFWHGORVVHVUHODWHGWRVKULQNDJHZKLFKLVHVWLPDWHGEDVHGRQKLVWRULFDO
ORVVHVDQGFXUUHQWLQYHQWRU\ORVVWUHQGVUHVXOWLQJIURPSUHYLRXVSK\VLFDOLQYHQWRULHV6KULQNDJHPD\RFFXUGXHWR
WKHIWORVVRULQDFFXUDWHUHFRUGVIRUWKHUHFHLSWRIJRRGVDPRQJRWKHUWKLQJV7KURXJKRXWWKH\HDUZHWDNHSK\VLFDO
LQYHQWRU\FRXQWVRIRXUVWRUHVDQGGLVWULEXWLRQFHQWHUVWRYHULI\WKHVHHVWLPDWHV:HPDNHDVVXPSWLRQVUHJDUGLQJ
XSFRPLQJSK\VLFDOLQYHQWRU\FRXQWVWKDWPD\GLIIHUIURPDFWXDOUHVXOWV2YHUWKHODVWWKUHH\HDUVWKHUHKDVEHHQ
OHVVWKDQDEDVLVSRLQWIOXFWXDWLRQLQRXUVKULQNDJHUDWH
(DFKTXDUWHUZHHYDOXDWHWKHDFFUXHGVKULQNDJHLQOLJKWRIWKHDFWXDOVKULQNUHVXOWV7RWKHH[WHQWRXUDFWXDO
SK\VLFDOLQYHQWRU\FRXQWUHVXOWVGLIIHUIURPRXUHVWLPDWHVZHPD\H[SHULHQFHPDWHULDODGMXVWPHQWVWRRXUILQDQFLDO
VWDWHPHQWV+LVWRULFDOO\ZHKDYHQRWH[SHULHQFHGPDWHULDODGMXVWPHQWVWRRXUVKULQNDJHHVWLPDWHVDQGGRQRW
EHOLHYHWKHUHLVDUHDVRQDEOHOLNHOLKRRGWKDWWKHUHZLOOEHDPDWHULDOFKDQJHLQWKHIXWXUHHVWLPDWHVRUDVVXPSWLRQVZH
XVH
$GLIIHUHQFHLQRXULQYHQWRU\UHVHUYHVDVRI$XJXVWZRXOGKDYHDIIHFWHGQHWLQFRPHE\
DSSUR[LPDWHO\PLOOLRQLQILVFDO
30
10-K