Reconciliation of Non-GAAP Financial Measure—Fiscal 2003, Fiscal 2002 and Fiscal 2001 Excluding Nonrecurring/Infrequent Items: The following table summarizes the effect of nonrecurring or infrequent items on operating results for fiscal 2003. The nonrecurring or infrequent items include a pre-tax gain of $4.6 million as a result of the disposition of properties associated with the fiscal 2001 restructuring and impairment charges, a $4.7 million pre-tax gain associated with the settlement of certain liabilities and the payment of a note from the TruckPro sale in December 2001, and a $10.0 million pre-tax negative impact and the reclassification of certain vendor funding to increase operating expenses by $53 million and decrease cost of goods sold by $43 million, both related to the implementation of EITF Issue No. 02-16. Fiscal 2002 Results of Results of Fiscal 2002 Operations Operations Results of Percent of for Excluding Percent of (in thousands, except per share and percentage data) Operations Revenue 53rd Week 53rd Week Revenue Net sales $5,325,510 100.0% $(109,079) $5,216,431 100.0% Cost of goods sold 2,950,123 55.4% (58,688) 2,891,435 55.4% Gross profit 2,375,387 44.6% (50,391) 2,324,996 44.6% Operating expenses 1,604,379 30.1% (20,911) 1,583,468 30.4% Operating profit 771,008 14.5% (29,480) 741,528 14.2% Interest expense, net 79,860 1.5% — 79,860 1.5% Income before taxes 691,148 13.0% (29,480) 661,668 12.7% Income taxes 263,000 5.0% (11,210) 251,790 4.8% Net income $ 428,148 8.0% $ (18,270) $ 409,878 7.9% Diluted earnings per share $ 4.00 $ (0.17) $ 3.83 Fiscal 2003 Results of Operations Excluding Fiscal 2003 Nonrecurring Nonrecurring Results of Percent of or Infrequent or Infrequent Percent of (in thousands, except per share and percentage data) Operations Revenue Items Items Revenue Net sales $5,457,123 100.0% $ — $5,457,123 100.0% Cost of goods sold 2,942,114 53.9% 42,600 2,984,714 54.7% Gross profit 2,515,009 46.1% (42,600) 2,472,409 45.3% Operating expenses 1,597,212 29.3% (43,300) 1,553,912 28.5% Operating profit 917,797 16.8% 700 918,497 16.8% Interest expense, net 84,790 1.5% — 84,790 1.5% Income before taxes 833,007 15.3% 700 833,707 15.3% Income taxes 315,403 5.8% 265 315,668 5.8% Net income $ 517,604 9.5% $ 435 $ 518,039 9.5% Diluted earnings per share $ 5.34 $ — $ 5.34 The following table summarizes the favorable impact of the additional week of the 53 week fiscal year ended August 31, 2002. AutoZone, Inc. 2003 Annual Report 29