Consolidated Statements of Income Year Ended August 30, August 31, August 25, 2003 2002 2001 (in thousands, except per share data) (52 Weeks) (53 Weeks) (52 Weeks) Net sales $5,457,123 $5,325,510 $4,818,185 Cost of sales, including warehouse and delivery expenses 2,942,114 2,950,123 2,804,896 Operating, selling, general and administrative expenses 1,597,212 1,604,379 1,498,909 Restructuring and impairment charges — — 126,689 Operating profit 917,797 771,008 387,691 Interest expense—net 84,790 79,860 100,665 Income before income taxes 833,007 691,148 287,026 Income taxes 315,403 263,000 111,500 Net income $ 517,604 $ 428,148 $ 175,526 Weighted average shares for basic earnings per share 94,906 104,446 112,834 Effect of dilutive stock equivalents 2,057 2,665 967 Adjusted weighted average shares for diluted earnings per share 96,963 107,111 113,801 Basic earnings per share $ 5.45 $ 4.10 $ 1.56 Diluted earnings per share $ 5.34 $ 4.00 $ 1.54 See Notes to Consolidated Financial Statements. AutoZone, Inc. 2003 Annual Report 31