AutoZone 2008 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 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.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

:HEHOLHYHWKDWWKHVDWLVIDFWLRQRI',<FXVWRPHUVDQGSURIHVVLRQDOWHFKQLFLDQVLVRIWHQLPSDFWHGE\RXUDELOLW\WR
SURYLGHVSHFLILFDXWRPRWLYHSURGXFWVDVUHTXHVWHG(DFKVWRUHFDUULHVWKHVDPHEDVLFSURGXFWOLQHVEXWZHWDLORURXU
SDUWVLQYHQWRU\WRWKHPDNHVDQGPRGHOVRIWKHYHKLFOHVLQHDFKVWRUH¶VWUDGHDUHD2XUKXEVWRUHVFDUU\DODUJHU
DVVRUWPHQWRISURGXFWVWKDWFDQEHGHOLYHUHGWRFRPPHUFLDOFXVWRPHUVRUORFDOVDWHOOLWHVWRUHV
:HDUHFRQVWDQWO\XSGDWLQJWKHSURGXFWVWKDWZHRIIHUWRDVVXUHWKDWRXULQYHQWRU\PDWFKHVWKHSURGXFWVWKDWRXU
FXVWRPHUVGHPDQG
3ULFLQJ
:HZDQWWREHSHUFHLYHGE\RXUFXVWRPHUVDVWKHYDOXHOHDGHULQRXULQGXVWU\E\FRQVLVWHQWO\SURYLGLQJTXDOLW\
PHUFKDQGLVHDWWKHULJKWSULFHEDFNHGE\DJRRGZDUUDQW\DQGRXWVWDQGLQJFXVWRPHUVHUYLFH2QPDQ\RIRXU
SURGXFWVZHRIIHUPXOWLSOHYDOXHFKRLFHVLQDJRRGEHWWHUEHVWDVVRUWPHQWZLWKDSSURSULDWHSULFHDQGTXDOLW\
GLIIHUHQFHVIURPWKH³JRRG´SURGXFWVWRWKH³EHWWHU´DQG³EHVW´SURGXFWV$NH\FRPSRQHQWLVRXUH[FOXVLYHOLQHRI
LQKRXVHEUDQGV9DOXFUDIW$XWR=RQH'XUDODVWDQG'XUDODVW*ROG:HEHOLHYHWKDWRXURYHUDOOSULFHVDQGYDOXH
FRPSDUHIDYRUDEO\WRWKRVHRIRXUFRPSHWLWRUV
0DUNHWLQJ$GYHUWLVLQJDQG3URPRWLRQV
:HEHOLHYHWKDWWDUJHWHGDGYHUWLVLQJDQGSURPRWLRQVSOD\LPSRUWDQWUROHVLQVXFFHHGLQJLQWRGD\¶VHQYLURQPHQW:H
DUHFRQVWDQWO\ZRUNLQJWRXQGHUVWDQGRXUFXVWRPHUV¶ZDQWVDQGQHHGVVRWKDWZHFDQEXLOGORQJODVWLQJOR\DO
UHODWLRQVKLSV:HXWLOL]HSURPRWLRQVDQGDGYHUWLVLQJSULPDULO\WRDGYLVHFXVWRPHUVDERXWWKHRYHUDOOLPSRUWDQFHRI
YHKLFOHPDLQWHQDQFHRXUJUHDWYDOXHDQGWKHDYDLODELOLW\RIKLJKTXDOLW\SDUWV%URDGFDVWLQJLVRXUSULPDU\
PDUNHWLQJPHWKRGRIGULYLQJWUDIILFWRRXUVWRUHV:HXWLOL]HLQVWRUHVLJQDJHFUHDWLYHSURGXFWSODFHPHQWDQG
SURPRWLRQVWRKHOSHGXFDWHFXVWRPHUVDERXWSURGXFWVWKH\QHHG
6WRUH'HVLJQDQG9LVXDO0HUFKDQGLVLQJ
:HGHVLJQDQGEXLOGVWRUHVIRUDKLJKYLVXDOLPSDFW7KHW\SLFDO$XWR=RQHVWRUHXWLOL]HVFRORUIXOH[WHULRUDQG
LQWHULRUVLJQDJHH[SRVHGEHDPVDQGGXFWZRUNDQGEULJKWO\OLJKWHGLQWHULRUV0DLQWHQDQFHSURGXFWVDFFHVVRULHVDQG
PLVFHOODQHRXVLWHPVDUHDWWUDFWLYHO\GLVSOD\HGIRUHDV\EURZVLQJE\FXVWRPHUV,QVWRUHVLJQDJHDQGVSHFLDOGLVSOD\V
SURPRWHSURGXFWVRQIORRUGLVSOD\VHQGFDSVDQGRQWKHVKHOI
&RPPHUFLDO
2XUFRPPHUFLDOVDOHVSURJUDPRSHUDWHVLQDKLJKO\IUDJPHQWHGPDUNHWDQGLVRQHRIWKHOHDGLQJGLVWULEXWRUVRI
DXWRPRWLYHSDUWVDQGRWKHUSURGXFWVWRORFDOUHJLRQDODQGQDWLRQDOUHSDLUJDUDJHVGHDOHUVVHUYLFHVWDWLRQVDQG
JRYHUQPHQWDJHQFLHVLQWKH8QLWHG6WDWHV3XHUWR5LFRDQG0H[LFR$VDSDUWRIWKHSURJUDPZHRIIHUFUHGLWDQG
GHOLYHU\WRRXUFRPPHUFLDOFXVWRPHUV7KHSURJUDPRSHUDWHGRXWRIGRPHVWLFVWRUHVDVRI$XJXVW
7KURXJKRXUKXEVWRUHVZHRIIHUDJUHDWHUUDQJHRISDUWVDQGSURGXFWVGHVLUHGE\SURIHVVLRQDOWHFKQLFLDQVDQGWKLV
DGGLWLRQDOLQYHQWRU\LVDYDLODEOHIRURXU',<FXVWRPHUVDVZHOO:HKDYHVDOHVWHDPVIRFXVHGRQQDWLRQDOUHJLRQDO
DQGSXEOLFVHFWRUFRPPHUFLDODFFRXQWV
6WRUH2SHUDWLRQV
6WRUH)RUPDWV
6XEVWDQWLDOO\DOO$XWR=RQHVWRUHVDUHEDVHGRQVWDQGDUGVWRUHIRUPDWVUHVXOWLQJLQJHQHUDOO\FRQVLVWHQWDSSHDUDQFH
PHUFKDQGLVLQJDQGSURGXFWPL[$SSUR[LPDWHO\WRRIHDFKVWRUH¶VVTXDUHIRRWDJHLVVHOOLQJVSDFHRI
ZKLFKDSSUR[LPDWHO\WRLVGHGLFDWHGWRKDUGSDUWVLQYHQWRU\7KHKDUGSDUWVLQYHQWRU\DUHDLVJHQHUDOO\
IURQWHGE\FRXQWHUVRUSRGVWKDWUXQWKHGHSWKRUOHQJWKRIWKHVWRUHGLYLGLQJWKHKDUGSDUWVDUHDIURPWKHUHPDLQGHU
RIWKHVWRUH7KHUHPDLQLQJVHOOLQJVSDFHFRQWDLQVGLVSOD\VRIPDLQWHQDQFHDFFHVVRULHVDQGQRQDXWRPRWLYHLWHPV
:HEHOLHYHWKDWRXUVWRUHVDUH³GHVWLQDWLRQVWRUHV´JHQHUDWLQJWKHLURZQWUDIILFUDWKHUWKDQUHO\LQJRQWUDIILFFUHDWHG
E\DGMDFHQWVWRUHV7KHUHIRUHZHVLWXDWHPRVWVWRUHVRQPDMRUWKRURXJKIDUHVZLWKHDV\DFFHVVDQGJRRGSDUNLQJ
6WRUH3HUVRQQHODQG7UDLQLQJ
(DFKVWRUHW\SLFDOO\HPSOR\VIURPWR$XWR=RQHUVLQFOXGLQJDPDQDJHUDQGLQVRPHFDVHVDQDVVLVWDQW
PDQDJHU$XWR=RQHUVW\SLFDOO\KDYHSULRUDXWRPRWLYHH[SHULHQFH$OO$XWR=RQHUVDUHHQFRXUDJHGWRFRPSOHWH
FRXUVHVUHVXOWLQJLQFHUWLILFDWLRQE\WKH1DWLRQDO,QVWLWXWHIRU$XWRPRWLYH6HUYLFH([FHOOHQFH³$6(´ZKLFKLV
10-K