Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 02, 2017 | Dec. 27, 2017 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 2, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | MSC INDUSTRIAL DIRECT CO INC | |
Entity Central Index Key | 1,003,078 | |
Current Fiscal Year End Date | --09-01 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | msm | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 45,054,928 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 11,402,636 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 02, 2017 | Sep. 02, 2017 | |
Current Assets: | |||
Cash and cash equivalents | $ 20,252 | $ 16,083 | |
Accounts receivable, net of allowance for doubtful accounts of $13,385 and $13,278, respectively | 479,391 | 471,795 | |
Inventories | 469,432 | 464,959 | |
Prepaid expenses and other current assets | 54,441 | 52,742 | |
Total current assets | 1,023,516 | 1,005,579 | |
Property, plant and equipment, net | 311,846 | 316,305 | |
Goodwill | 633,529 | 633,728 | |
Identifiable intangibles, net | 107,731 | 110,429 | |
Other assets | 31,590 | 32,871 | |
Total assets | 2,108,212 | 2,098,912 | |
Current Liabilities: | |||
Short-term debt | [1] | 291,679 | 331,986 |
Accounts payable | 124,917 | 121,266 | |
Accrued liabilities | 115,527 | 104,473 | |
Total current liabilities | 532,123 | 557,725 | |
Long-term debt | 201,002 | 200,991 | |
Deferred income taxes and tax uncertainties | 115,056 | 115,056 | |
Total liabilities | 848,181 | 873,772 | |
Commitments and Contingencies | |||
Shareholders' Equity: | |||
Preferred stock; $0.001 par value; 5,000,000 shares authorized; none issued and outstanding | |||
Additional paid-in capital | 633,944 | 626,995 | |
Retained earnings | 1,201,128 | 1,168,812 | |
Accumulated other comprehensive loss | (18,106) | (17,263) | |
Class A treasury stock, at cost, 9,010,839 and 8,972,729 shares, respectively | (557,000) | (553,470) | |
Total shareholders' equity | 1,260,031 | 1,225,140 | |
Total liabilities and shareholders' equity | 2,108,212 | 2,098,912 | |
Class A Common Stock [Member] | |||
Shareholders' Equity: | |||
Common stock | 54 | 54 | |
Class B Common Stock [Member] | |||
Shareholders' Equity: | |||
Common stock | $ 11 | $ 12 | |
[1] | Net of unamortized debt issuance costs expected to be amortized in the next twelve months. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 02, 2017 | Sep. 02, 2017 | |
Accounts receivable, allowance for doubtful accounts | $ 13,385 | $ 13,278 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A treasury stock, at cost, shares | 9,010,839 | 8,972,729 |
Class A Common Stock [Member] | ||
Common stock, votes per share | 1 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 54,063,976 | 53,513,806 |
Class B Common Stock [Member] | ||
Common stock, votes per share | 10 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 11,402,636 | 11,850,636 |
Common stock, shares outstanding | 11,402,636 | 11,850,636 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 02, 2017 | Dec. 03, 2016 | |
Net sales | $ 768,561 | $ 686,271 |
Cost of goods sold | 433,492 | 377,536 |
Gross profit | 335,069 | 308,735 |
Operating expenses | 235,791 | 218,135 |
Income from operations | 99,278 | 90,600 |
Other (expense) income: | ||
Interest expense | (3,237) | (2,934) |
Interest income | 163 | 163 |
Other (expense) income, net | (408) | (284) |
Total other expense | (3,482) | (3,055) |
Income before provision for income taxes | 95,796 | 87,545 |
Provision for income taxes | 36,211 | 33,257 |
Net income | $ 59,585 | $ 54,288 |
Net income per common share: | ||
Basic | $ 1.06 | $ 0.96 |
Diluted | $ 1.05 | $ 0.96 |
Weighted average shares used in computing net income per common share: | ||
Basic | 56,287 | 56,381 |
Diluted | 56,504 | 56,608 |
Cash dividends declared per common share | $ 0.48 | $ 0.45 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 02, 2017 | Dec. 03, 2016 | |
Net income, as reported | $ 59,585 | $ 54,288 |
Foreign currency translation adjustments | (843) | (1,547) |
Comprehensive income | $ 58,742 | $ 52,741 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement Of Shareholders' Equity - 3 months ended Dec. 02, 2017 - USD ($) shares in Thousands, $ in Thousands | Restricted Stock Units [Member]Class A Common Stock [Member] | Restricted Stock Units [Member]Additional Paid-In Capital [Member] | Restricted Stock Units [Member] | Class A Common Stock [Member]Common Stock [Member] | Class A Common Stock [Member]Retained Earnings [Member] | Class A Common Stock [Member] | Class B Common Stock [Member]Common Stock [Member] | Class B Common Stock [Member]Retained Earnings [Member] | Class B Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Class A Treasury Stock [Member] | Total |
Balance, Value at Sep. 02, 2017 | $ 54 | $ 12 | $ 626,995 | $ 1,168,812 | $ (17,263) | $ (553,470) | $ 1,225,140 | |||||||
Balance, Shares at Sep. 02, 2017 | 53,514 | 11,851 | 8,973 | |||||||||||
Exchange of Class B common stock for Class A common stock, shares | 448 | (448) | ||||||||||||
Exchange of Class B common stock for Class A common stock, value | (1) | (1) | ||||||||||||
Exercise of common stock options, Shares | 36 | |||||||||||||
Exercise of common stock options, Value | 2,405 | 2,405 | ||||||||||||
Common stock issued under associate stock purchase plan, Shares | (13) | |||||||||||||
Common stock issued under associate stock purchase plan, Value | 471 | $ 488 | 959 | |||||||||||
Issuance of restricted common stock, net of cancellations, Shares | (1) | |||||||||||||
Shares issued from restricted stock units, including dividend equivalent units, Value | $ 179 | $ 179 | ||||||||||||
Shares issued from restricted stock units, including dividend equivalent units, Shares | 67 | |||||||||||||
Stock-based compensation | 3,894 | 3,894 | ||||||||||||
Repurchases of common stock, Shares | 51 | |||||||||||||
Repurchases of common stock, Value | $ (4,018) | (4,018) | ||||||||||||
Cash dividends on common stock | $ (21,459) | $ (21,459) | $ (5,628) | $ (5,628) | ||||||||||
Dividend equivalent units declared, net of cancellations | (182) | (182) | ||||||||||||
Foreign currency translation adjustment | (843) | (843) | ||||||||||||
Net income | 59,585 | 59,585 | ||||||||||||
Balance, Value at Dec. 02, 2017 | $ 54 | $ 11 | $ 633,944 | $ 1,201,128 | $ (18,106) | $ (557,000) | $ 1,260,031 | |||||||
Balance, Shares at Dec. 02, 2017 | 54,064 | 11,403 | 9,011 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 02, 2017 | Dec. 03, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | $ 59,585 | $ 54,288 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,749 | 15,447 |
Stock-based compensation | 3,894 | 3,538 |
Loss on disposal of property, plant, and equipment | 126 | 49 |
Provision for doubtful accounts | 1,698 | 1,305 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (9,291) | (1,021) |
Inventories | (4,259) | (10,299) |
Prepaid expenses and other current assets | (1,663) | 3,792 |
Other assets | 1,252 | (465) |
Accounts payable and accrued liabilities | 14,888 | 9,326 |
Total adjustments | 22,394 | 21,672 |
Net cash provided by operating activities | 81,979 | 75,960 |
Cash Flows from Investing Activities: | ||
Expenditures for property, plant and equipment | (9,028) | (12,497) |
Cash used in business acquisition | (738) | |
Net cash used in investing activities | (9,766) | (12,497) |
Cash Flows from Financing Activities: | ||
Repurchases of common stock | (4,018) | (3,207) |
Payments of cash dividends | (27,087) | (25,495) |
Payments on capital lease and financing obligations | (115) | (388) |
Proceeds from sale of Class A common stock in connection with associate stock purchase plan | 959 | 909 |
Proceeds from exercise of Class A common stock options | 2,405 | 6,931 |
Borrowings under financing obligations | 721 | 739 |
Borrowings under Credit Facility | 24,000 | 15,000 |
Private Placement Loan financing costs | (142) | |
Payments of notes payable and revolving credit note under the Credit Facility | (65,000) | (78,500) |
Net cash used in financing activities | (68,135) | (84,153) |
Effect of foreign exchange rate changes on cash and cash equivalents | 91 | (78) |
Net increase (decrease) in cash and cash equivalents | 4,169 | (20,768) |
Cash and cash equivalents—beginning of period | 16,083 | 52,890 |
Cash and cash equivalents—end of period | 20,252 | 32,122 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes | 1,757 | 1,983 |
Cash paid for interest | $ 2,068 | $ 1,400 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Dec. 02, 2017 | |
Basis Of Presentation | Note 1. Basis of Presentation The accompanying condensed consolidated financial statements include MSC Industrial Direct Co., Inc. (“MSC”) and all of its subsidiaries (hereinafter referred to collectively as the “Company”). All intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (consisting of normal recurring adjustments) have been included. Operating results for the thirteen- week period ended December 2, 2017 is not necessarily indicative of the results that may be expected for the fiscal year ending September 1, 2018 . For further information, refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 2, 2017 . The Company’s fiscal year ends on the Saturday closest to August 31 of each year. Unless the context requires otherwise, references to years contained herein pertain to the Company’s fiscal year. The Company’s 2018 fiscal year will be a 52 -week accounting period that will end on September 1, 2018 and its 2017 fiscal year was a 52 -week accounting period that ended on September 2, 2017 . There have been no changes to significant accounting policies since September 2, 2017. As a result of the Company’s adoption of Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting in the second quarter of fiscal 2017, adjustments were recorded to the thirteen-week period ended December 3, 2016, which was the beginning of the annual period of adoption. Recently Adopted Accounting Pronouncements Share-based Payments In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The Company early adopted ASU 2016-09 in the second quarter of fiscal 2017, which required us to reflect any adjustments as of September 4 , 2016, the beginning of the annual period that includes the interim period of adoption. Prior fiscal year periods were not retrospectively adjusted. Adoption of the new standard affected our previously reported fiscal first quarter of 2017 net income per share as follows: Thirteen Weeks Ended December 3, 2016 As Reported As Adjusted Condensed Consolidated Statements of Income: (in thousands, except per share data) Provision for income taxes $ 33,442 $ 33,257 Net income $ 54,103 $ 54,288 Per share information: Net income per common share: Basic $ 0.96 $ 0.96 Diluted $ 0.95 $ 0.96 Weighted average shares used in computing net income per common share: Basic 56,381 56,381 Diluted 56,572 56,608 Deferred Taxes In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This update requires an entity to classify deferred tax liabilities and assets as non-current within a classified balance sheet. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The FASB allowed early adoption of this standard and, therefore, the Company prospectively adopted ASU 2015-17 during its first quarter of fiscal 2017. As a result of adopting this standard, $46,627 of deferred income taxes that were previously presented as a current asset are now included within long-term liabilities, as the Company was in a net deferred tax liability position in its first quarter of fiscal 2017 which was the time of adoption. Prior periods were not retrospectively adjusted. Simplifying the Measurement of Inventory In July 201 5, the FASB issued ASU No. 201 5-11, Simplifying the Measurement of Inventory ( Topic 330), which requires an entity to measure inventory at the lower of cost and net realizable value, which consists of the estimated selling prices in the ordinary course of business, less reasonably predictable cost s of completion, disposal, and transportation. For public entities, the updated guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The guidance is to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company adopted ASU 2015-11 during the first quarter of fiscal 2018 and the adoption did not have any impact on its consolidated financial statements. Accounting Pronouncements Not Yet Adopted Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 in the goodwill impairment test that required an entity to calculate the implied fair value of goodwill. An entity will now apply a one-step quantitative test and record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 will be applied prospectively and is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019 . The new standard is effective for the Company for its fiscal 2021 fourth quarter goodwill impai rment test. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. Business Combinations In January 2017, the FASB issued ASU No. 2017-01, Business Combinations – Clarifying the Definition of a Business. ASU 2017-01 clarifies the definition of a business to assist entities with evaluating when a set of transferred assets and activities is considered a business. The amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new standard is effective for the Company for its fiscal year 2019, with early adoption permitted. The amendments are to be applied prospectively to business combinations that occur after the effective date. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase transparency and comparability by providing additional information to users of financial statements regarding an entity’s leasing activities. ASU 2016-02 requires reporting entities to recognize lease assets and lease liabilities on the balance sheet for substantially all lease arrangements. ASU 2016-02 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018. The new standard is effective for the Company for its fiscal year 2020. The guidance will be applied on a modified retrospective basis beginning with the earliest period presented. The Company is currently evaluating this standard to determine the impact of adoption on its consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for the Company for its fiscal year 2019. Early adoption is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. To date, the Company has performed a preliminary detailed review of key contracts and compared historical accounting policies and practices to the new standard. While the Company is still evaluating this standard, it is not expected that this standard will have a material impact on the Company’s consolidated financial statements. The Company will continue to evaluate ASU 2014-09 and other amendments and related interpretive guidance through the date of adoption. The Company expects to adopt ASU 2014-09 under the modified retrospective approach in the first quarter of fiscal 2019. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Dec. 02, 2017 | |
Net Income Per Share | Note 2. Net Income per Share The Company’s non-vested restricted stock awards contain non-forfeitable rights to dividends and meet the criteria of a participating security as defined by Ac counting Standards Codification (“ASC” ) Topic 260, “ Earnings Per Share” . Under the two-class method, net income per share is computed by dividing net income allocated to common shareholders by the weighted average number of common shar es outstanding for the period. In applying the two-class method, net income is allocated to both common shares and participating securities based on their respective weighted average shares outstanding for the period. The following table sets forth the computation of basic and diluted net income per common share under the two-class method for the thirteen weeks ended December 2, 2017 and December 3, 2016 , respectively: Thirteen Weeks Ended December 2, December 3, 2017 2016 Net income as reported $ 59,585 $ 54,288 Less: Distributed net income available to participating securities (34) (77) Less: Undistributed net income available to participating securities (69) (114) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 59,482 $ 54,097 Add: Undistributed net income allocated to participating securities 69 114 Less: Undistributed net income reallocated to participating securities (69) (114) Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 59,482 $ 54,097 Denominator: Weighted average shares outstanding for basic net income per share 56,287 56,381 Effect of dilutive securities 217 227 Weighted average shares outstanding for diluted net income per share 56,504 56,608 Net income per share Two-class method: Basic $ 1.06 $ 0.96 Diluted $ 1.05 $ 0.96 Antidilutive stock options of 957 and 606 were not included in the computation of diluted earnings per share for the thirteen -week periods ended December 2, 2017 and December 3, 2016, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 02, 2017 | |
Stock-Based Compensation | Note 3. Stock-Based Compensation The Company accounts for all share-based payments in accordance with ASC Topic 718, "Compensation—Stock Compensation" ("ASC 718"). S tock ‑based compensation expense included in operating expenses for the thirteen-week periods ended December 2, 2017 and December 3, 2016 was as follows: Thirteen Weeks Ended December 2, December 3, 2017 2016 Stock options $ 1,194 $ 1,112 Restricted share awards 902 1,322 Restricted stock units 1,754 1,042 Associate Stock Purchase Plan 44 62 Total 3,894 3,538 Deferred income tax benefit (1,480) (1,344) Stock-based compensation expense, net $ 2,414 $ 2,194 Stock options The fair value of each option grant is estimated on the date of grant using the Black ‑Scholes option pricing model with the following assumptions: Thirteen Weeks Ended December 2, December 3, 2017 2016 Expected life (in years) 4.0 4.1 Risk-free interest rate 1.87 % 1.16 % Expected volatility 22.13 % 20.50 % Expected dividend yield 2.30 % 2.40 % Weighted-average grant-date fair value $12.25 $9.29 A summary of the Company’s stock option activity for the thirteen-week period ended December 2, 2017 is as follows: Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding on September 2, 2017 1,743 $ 70.88 Granted 436 79.60 Exercised (36) 66.53 Canceled/Forfeited (17) 73.25 Outstanding on December 2, 2017 2,126 $ 72.72 4.9 $ 37,520 Exercisable on December 2, 2017 959 $ 73.19 3.7 $ 16,480 The unrecognized share ‑based compensation cost related to stock option expense at December 2, 2017 was $11,149 and will be recognized over a weighted average period of 2.9 years. The total intrinsic va lue of options exercised, which represents the difference between the exercise price and market value of common stock measured at each individual exercise d ate, during the thirteen -week periods ended December 2, 2017 and December 3, 2016 was $577 and $1,596 , respectively. Restricted share awards A summary of the non ‑vested restricted share award (“RSA”) activity under the Company’s 2005 Omnibus Incentive Plan and 2015 Omnibus Incentive Plan for the thirteen -week period ended December 2, 2017 is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested restricted share awards at September 2, 2017 160 $ 80.49 Granted — — Vested (86) 79.45 Canceled/Forfeited (1) 82.27 Non-vested restricted share awards at December 2, 2017 73 $ 81.56 The fair value of each RSA is the closing stock price on the New York Stock Exchange of the Company’s Class A common stock on the date of grant. Upon vesting, a portion of the RSA award may be withheld to satisfy the statutory income tax withholding obligation. The remaining RSAs will be settled in shares of the Company’s Class A common stock when vested. The unrecognized compensation cost related to RSAs at December 2, 2017 was $3,966 and will be recognized over a weighted average period of 1.6 years. Restricted stock units A summa ry of the Company’s non-vested Restricted Stock U nit (“RSU”) award activity for the thirteen- week period ended December 2, 2017 is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested restricted stock unit awards at September 2, 2017 313 $ 66.66 Granted 152 79.60 Vested (65) 65.04 Canceled/Forfeited (6) 69.90 Non-vested restricted stock unit awards at December 2, 2017 394 $ 71.88 The fair value of each RSU is the closing stock price on the New York Stock Exchange of the Company’s Class A common stock on the date of grant. Upon vesting, a portion of the RSU award may be withheld to satisfy the statutory income tax withholding obligation . The remaining RSUs will be settled in shares of the Company’s Class A common stock when vested . These awards accrue dividend equivalents on outstanding units (in the form of additional stock units) based on dividends declared on the Company’s Class A common stock and these dividend equivalents convert to unrestricted common stock on the vesting dates of the underlying RSUs . The dividend equivalents are not included in the RSU table above. The unrecognized compensation cost related to the RSUs at December 2, 2017 was $23,744 and is expected to be recognized over a weighted average period of 3.8 years. |
Fair Value
Fair Value | 3 Months Ended |
Dec. 02, 2017 | |
Fair Value | Note 4. Fair Value Fair value accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy prioritizes the inputs used to measure fair value into three levels, with Level 1 being of the highest priority. The three levels of inputs used to measure fair value are as follows: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active m arkets . Level 2 — Include other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs which are supported by little or no market activity. In connection with the co nstruction of the Company’s customer fulfillment center in Columbus, Ohio, the Company entered into an arrangement during fiscal 2013 with the Columbus-Franklin County Finance Authority (“Finance Authority”) which provides savings on state and local sales taxes imposed on construction materials to entities that finance the transactions through them. Under this arrangement, the Finance Authority issued taxable bonds to finance the structure and site improvements of the Company’s c ustomer fulfillment center. The bonds ( $27,025 outstanding at both December 2, 2017 and September 2, 2017 ) are classified as available for sale securities in accordance with ASC Topic 320. The securities are recorded at fair value in Other Assets in the Condensed Consolidated Balance Sheet. The fair values of these securities are based on observable inputs in non-active markets, which are therefore classified as Level 2 in the hierarchy. The Company did not record any gains or losses on these securities during the thirteen -w eek period ended December 2, 2017 . The outstanding principal amount of each bond bears interest at the rate of 2.4% per year. Interest is payable on a semiannual basis in arrears on each interest payment date. In addition, based on borrowing rates currently available to the Company for borrowings with similar terms, the carrying values of the Company’s capital lease obligations also approximate fair value. The fair value of the Company’s short-term and long-term deb t is estimated based on quoted market prices for the same or similar issues or on current rates offered to the Company for debt of the same remaining maturities. The carrying amount of the Company’s debt at December 2, 2017 approximates its fair value. The Company’s financial instruments, other than those presented in the disclosure above, include cash, receivables, accounts payable, and accrued liabilities. Management believes the carrying amount of the aforementioned financial instruments is a reasonable estimate of fair value as of December 2, 2017 and September 2, 2017 due to the short-term maturity of these items. During the thirteen weeks ended December 2, 2017 and December 3, 2016 , the Company had no measurements of non-financial assets or liabilities at fair value on a non-recurring basis subsequent to their initial recognition. |
Debt And Capital Lease Obligati
Debt And Capital Lease Obligations | 3 Months Ended |
Dec. 02, 2017 | |
Debt And Capital Lease Obligations | Note 5. Debt and Capital Lease Obligations Debt at December 2, 2017 and September 2, 2017 consisted of the following: December 2, September 2, 2017 2017 (Dollars in thousands) Credit Facility: Revolver $ 291,000 $ 332,000 Private Placement Debt: Senior notes, series A 75,000 75,000 Senior notes, series B 100,000 100,000 Capital lease and financing obligations 28,436 27,829 Less: unamortized debt issuance costs (1,755) (1,852) Total debt $ 492,681 $ 532,977 Less: short-term debt (1) (291,679) (331,986) Long-term debt $ 201,002 $ 200,991 ____________________ (1) Net of unamortized debt issuance costs expected to be amortized in the next twelve months. Credit Facility In April 2017, the Company entered into a $600,000 credit facility (the “ Credit Facility”). The Credit Facility, which matures on April 14, 2022 , provides for a five -year unsecured revolving loan facility in the aggregate amount of $600,000 . The Credit Facility permits up to $50,000 to be used to fund letters of credit. The Credit Facility also permits the Company to request one or more incremental term loan facilities and/or increase the revolving loan commitments in an aggregate amount not to exceed $300,000 . Subject to certain limitations, each such incremental term loan facility or revolving commitment increase will be on terms as agreed to by the Company, the Administrative Agent and the lenders providing such financing. Borrowings under the Credit Facility bear interest, at the Company’s option, either at (i) the LIBOR (London Interbank Offered Rate) rate plus the applicable margin for LIBOR loans ranging from 1.00% to 1.375% , based on the Company’s consolidated leverage ratio; or (ii) the greatest of (a) the Administrative Agent’s prime rate in effect on such day, (b) the federal funds effective rate in effect on such day, plus 0.50% and (c) the LIBOR rate that would be calculated as of such day in respect of a proposed LIBOR loan with a one-month interest perio d, plus 1.00%, plus, in th e case of each of clauses (a) through (c), an applicable margin ranging from 0.00% to 0.375% , based on the Company’s consolidated leverage ratio. The Company is required to pay a quarterly undrawn fee ranging from 0.10% to 0.20% per annum on the unutilized portion of the Credit Facility, based on the Company’s consolidated leverage ratio. The Company is also required to pay quarterly letter of credit usage fees ranging between 1.00% to 1.375% (based on the Company’s consolidated leverage ratio) on the amount of the daily average outstanding letters of credit, and a quarterly fronting fee of 0.125% per annum on the undrawn and unexpired amount of each letter of credit . The weighted average applicable borrowing rate for the Company for any borrowings outstanding under the Credit Facility at December 2, 2017 was 2.46% which represents LIBOR plus 1.125% . Based on the interest period the Company selects, interest may be payable every one, two, three or six months. Interest is reset at the end of each interest period. The Company currently elects to have loans under the Credit Facility bear interest based on LIBOR with one -month interest periods. During the thirteen -w eek period ended December 2, 2017 , the Company borrowed $24,000 and repaid $65,000 under the revolving loan facility. Private Placement Debt In July 201 6, in connection with the Company’s “modified Dutch auction” tender offer, the Company completed the issuance and sale of the following unsecured senior notes (collectively “Private Placement Debt”): · $75,000 aggregate principal amount of 2.65% Senior Notes, Series A, due July 28, 2023 (“Senior notes, series A”); and · $100,000 aggregate principal amount of 2.90% Senior Notes, Series B, due July 28, 2026 (“Senior notes, series B”). The Private Placement Debt is due, in full, on the stated maturity dates. Interest is payable semiannually at the fixed stated interest rates. The Credit Facility and Private Placement Debt contain several restrictive covenants including the requirement that the Company maintain a maximum consolidated leverage ratio of total indebtedness to EBITDA (earnings before interest expense, taxes, depreciation, amortization and stock-based compensation) of no more than 3.00 to 1.00 (or, at the election of the Company after it consummates a material acquisition, a four-quarter temporary increase to 3.50 to1.00) , and a minimum consolidated interest coverage ratio of EBITDA to total interest expense of at least 3.00 to 1.00, during the term s of the Credit Facility and Private Placement Debt. At December 2, 2017 , the Company was in compliance with the operating and financial covenants of the Credit Facility and Private Placement Debt. Capital Lease and Financing Obligations In connection with the construction of the Company’s customer fulfillment center in Columbus, Ohio, the Finance Authority holds the title to the building and entered into a long-term lease with the Company. The lease has a 20 -year term with a prepayment option without penalty between 7 and 20 years. At the end of the lease term, the building’s title is transferred to the Company for a nominal amount when the principal of and interest on the bonds have been fully paid. The lease has been classified as a capital lease in accordance with ASC Topic 840. At December 2, 2017 and September 2, 2017 , the capital lease obligation was approximately $27,025 . From time to time, the Company enters into capital leases and financing arrangements with vendors to purchase certain IT equipment or software. The equipment or software acquired from these vendors is paid over a specified period of time based on the terms agreed upon. During the thirteen-week period ended December 2, 2017, the Company entered into a financing obligation for certain software totaling $721 . The gross amount of property and equipment acquired under this financing obligation at December 2, 2017 was approximately $721 . Related accumulated amortization totaled $120 as of December 2, 2017. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 02, 2017 | |
Shareholders' Equity | Note 6. Shareholders’ Equity The Company paid cash dividends o f $0.48 per common share totali ng $27,087 fo r the thirteen weeks ended December 2, 2017 . For the thirteen weeks ended December 3, 2016 , the Company paid cash dividends of $0.45 per common share totaling $25,495 . On January 2, 2018 , the Board of Directors declared a quarterly cash dividend of $0.58 per share payable on January 30, 2018 to shareholders of record at the close of business on January 16, 2018 . The dividend will result in a payout of approximately $32,745 , based on the number of shares outstanding at December 27, 2017. The Board of Directors established the MSC Stock Repurchase Plan (the “Repurchase Plan”) which allows the Company to repurc hase shares at any time and in such amounts as it deems appropriate in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. During the thirteen -w eek period ended December 2, 2017 , the Company repurcha sed 51 shares of its Class A common stock for $4,018 , wh ic h is reflected at cost as treasury stock in the accompanying condensed consolidated financial statements. All of these shares were repurchased by the Company to satisfy the Company’s associates’ tax withholding liability associated with its share-based compensation program. On January 9 , 2018, the Board of Directors authorized the repurchase of an additional 2,000 shares of Class A common stock under the Company’s ongoing Repurchase Plan , bringing the total number of shares of Class A common stock authorized for future repurchase to approximately 2,800 shares. |
Product Warranties
Product Warranties | 3 Months Ended |
Dec. 02, 2017 | |
Product Warranties | Note 7. Product Warranties The Company generally offers a maximum one -year warranty, including parts and labor, for some of its machinery products. The specific terms and conditions of those warranties vary depending upon the product sold. The Company may be able to recoup some of these costs through product warranties it holds with its original equipment manufacturers, which typically range from thirty to ninety days. In general, many of the Company’s general merchandise products are covered by third-party original equipment manufacturers’ warranties. The Company’s wa rranty expense for the thirteen- week periods ended December 2, 2017 and December 3, 2016 was minimal. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 02, 2017 | |
Income Taxes | Note 8. Income Taxes During the thirteen -w eek period ended December 2, 2017 , there were no material changes in unrecognized tax benefits. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Dec. 02, 2017 | |
Legal Proceedings | Note 9. Legal Proceedings There are various claims, lawsuits, and pending actions against the Company incidental to the operation of its business. Although the outcome of these matters is currently not determinable, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 02, 2017 | |
Subsequent Events | Note 10. Subsequent Event On December 22, 2017, Presi dent Trump signed into law the “Tax Cut and Jobs Act” ( the “Act” ). The Act lowers the corporate tax rate for C corporations from 35% to 21% effective January 1, 2018. The C ompany expects to recognize a net one-time tax benefit in its second quarter of fiscal 2018 for the re-valuation of its net deferred tax liabilities primarily related to the lower Federal corporate tax rate, partially offset by the lower F ederal benefit for state taxes and the change from a worldwide tax system to a territorial tax system. |
Basis Of Presentation (Tables)
Basis Of Presentation (Tables) | 3 Months Ended |
Dec. 02, 2017 | |
Schedule Of Adoption Of New Accounting Standards | Thirteen Weeks Ended December 3, 2016 As Reported As Adjusted Condensed Consolidated Statements of Income: (in thousands, except per share data) Provision for income taxes $ 33,442 $ 33,257 Net income $ 54,103 $ 54,288 Per share information: Net income per common share: Basic $ 0.96 $ 0.96 Diluted $ 0.95 $ 0.96 Weighted average shares used in computing net income per common share: Basic 56,381 56,381 Diluted 56,572 56,608 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Dec. 02, 2017 | |
Basic And Diluted Net Income Per Common Share Under The Two-Class Method | Thirteen Weeks Ended December 2, December 3, 2017 2016 Net income as reported $ 59,585 $ 54,288 Less: Distributed net income available to participating securities (34) (77) Less: Undistributed net income available to participating securities (69) (114) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 59,482 $ 54,097 Add: Undistributed net income allocated to participating securities 69 114 Less: Undistributed net income reallocated to participating securities (69) (114) Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 59,482 $ 54,097 Denominator: Weighted average shares outstanding for basic net income per share 56,287 56,381 Effect of dilutive securities 217 227 Weighted average shares outstanding for diluted net income per share 56,504 56,608 Net income per share Two-class method: Basic $ 1.06 $ 0.96 Diluted $ 1.05 $ 0.96 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 02, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Stock-Based Compensation Expense | Thirteen Weeks Ended December 2, December 3, 2017 2016 Stock options $ 1,194 $ 1,112 Restricted share awards 902 1,322 Restricted stock units 1,754 1,042 Associate Stock Purchase Plan 44 62 Total 3,894 3,538 Deferred income tax benefit (1,480) (1,344) Stock-based compensation expense, net $ 2,414 $ 2,194 |
Schedule Of Option Grant Fair Value Assumptions | Thirteen Weeks Ended December 2, December 3, 2017 2016 Expected life (in years) 4.0 4.1 Risk-free interest rate 1.87 % 1.16 % Expected volatility 22.13 % 20.50 % Expected dividend yield 2.30 % 2.40 % Weighted-average grant-date fair value $12.25 $9.29 |
Summary Of Stock Option Activity | Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding on September 2, 2017 1,743 $ 70.88 Granted 436 79.60 Exercised (36) 66.53 Canceled/Forfeited (17) 73.25 Outstanding on December 2, 2017 2,126 $ 72.72 4.9 $ 37,520 Exercisable on December 2, 2017 959 $ 73.19 3.7 $ 16,480 |
Restricted Share Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Non-Vested Restricted Share Award Activity | Shares Weighted-Average Grant-Date Fair Value Non-vested restricted share awards at September 2, 2017 160 $ 80.49 Granted — — Vested (86) 79.45 Canceled/Forfeited (1) 82.27 Non-vested restricted share awards at December 2, 2017 73 $ 81.56 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Non-Vested Restricted Stock Unit Award Activity | Shares Weighted-Average Grant-Date Fair Value Non-vested restricted stock unit awards at September 2, 2017 313 $ 66.66 Granted 152 79.60 Vested (65) 65.04 Canceled/Forfeited (6) 69.90 Non-vested restricted stock unit awards at December 2, 2017 394 $ 71.88 |
Debt And Capital Lease Obliga21
Debt And Capital Lease Obligations (Tables) | 3 Months Ended |
Dec. 02, 2017 | |
Schedule Of Debt | December 2, September 2, 2017 2017 (Dollars in thousands) Credit Facility: Revolver $ 291,000 $ 332,000 Private Placement Debt: Senior notes, series A 75,000 75,000 Senior notes, series B 100,000 100,000 Capital lease and financing obligations 28,436 27,829 Less: unamortized debt issuance costs (1,755) (1,852) Total debt $ 492,681 $ 532,977 Less: short-term debt (1) (291,679) (331,986) Long-term debt $ 201,002 $ 200,991 ____________________ (1) Net of unamortized debt issuance costs expected to be amortized in the next twelve months. |
Basis Of Presentation (Narrativ
Basis Of Presentation (Narrative) (Details) $ in Thousands | Dec. 03, 2016USD ($) |
Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Long-term liabilities | $ 46,627 |
Basis Of Presentation (Schedule
Basis Of Presentation (Schedule Of Adoption Of New Accounting Standards) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 02, 2017 | Dec. 03, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Provision for income taxes | $ 36,211 | $ 33,257 |
Net income | $ 59,585 | $ 54,288 |
Basic | $ 1.06 | $ 0.96 |
Diluted | $ 1.05 | $ 0.96 |
Basic | 56,287 | 56,381 |
Diluted | 56,504 | 56,608 |
Accounting Standards Update 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Provision for income taxes | $ 33,257 | |
Net income | $ 54,288 | |
Basic | $ 0.96 | |
Diluted | $ 0.96 | |
Basic | 56,381 | |
Diluted | 56,608 | |
Scenario, Previously Reported [Member] | Accounting Standards Update 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Provision for income taxes | $ 33,442 | |
Net income | $ 54,103 | |
Basic | $ 0.96 | |
Diluted | $ 0.95 | |
Basic | 56,381 | |
Diluted | 56,572 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 02, 2017 | Dec. 03, 2016 | |
Net income as reported | $ 59,585 | $ 54,288 |
Less: Distributed net income available to participating securities | (34) | (77) |
Less: Undistributed net income available to participating securities | (69) | (114) |
Undistributed and distributed net income available to common shareholders | 59,482 | 54,097 |
Add: Undistributed net income allocated to participating securities | 69 | 114 |
Less: Undistributed net income reallocated to participating securities | (69) | (114) |
Undistributed and distributed net income available to common shareholders | $ 59,482 | $ 54,097 |
Weighted average shares outstanding for basic net income per share | 56,287 | 56,381 |
Effect of dilutive securities | 217 | 227 |
Weighted average shares outstanding for diluted net income per share | 56,504 | 56,608 |
Basic | $ 1.06 | $ 0.96 |
Diluted | $ 1.05 | $ 0.96 |
Antidilutive stock options | 957 | 606 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 02, 2017 | Dec. 03, 2016 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 11,149 | |
Unrecognized share-based compensation weighted average period | 2 years 10 months 24 days | |
Total intrinsic value of options exercised | $ 577 | $ 1,596 |
Restricted Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 3,966 | |
Unrecognized share-based compensation weighted average period | 1 year 7 months 6 days | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 23,744 | |
Unrecognized share-based compensation weighted average period | 3 years 9 months 18 days |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 02, 2017 | Dec. 03, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 3,894 | $ 3,538 |
Deferred income tax benefit | (1,480) | (1,344) |
Stock-based compensation expense, net | 2,414 | 2,194 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 1,194 | 1,112 |
Restricted Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 902 | 1,322 |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 1,754 | 1,042 |
Associate Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 44 | $ 62 |
Stock-Based Compensation (Sch27
Stock-Based Compensation (Schedule Of Option Grant Fair Value Assumptions) (Details) - $ / shares | 3 Months Ended | |
Dec. 02, 2017 | Dec. 03, 2016 | |
Expected life (in years) | 4 years | 4 years 1 month 6 days |
Risk-free interest rate | 1.87% | 1.16% |
Expected volatility | 22.13% | 20.50% |
Expected dividend yield | 2.30% | 2.40% |
Weighted-average grant-date fair value | $ 12.25 | $ 9.29 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) - Stock Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Dec. 02, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Beginning Balance, Options | shares | 1,743 |
Granted, Options | shares | 436 |
Exercised, Options | shares | (36) |
Canceled/Forfeited, Options | shares | (17) |
Outstanding, Ending Balance, Options | shares | 2,126 |
Exercisable, Ending Balance, Options | shares | 959 |
Outstanding, Beginning Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 70.88 |
Granted, Weighted-Average Exercise Price per Share | $ / shares | 79.60 |
Exercised, Weighted-Average Exercise Price per Share | $ / shares | 66.53 |
Canceled/Forfeited, Weighted-Average Exercise Price per Share | $ / shares | 73.25 |
Outstanding, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | 72.72 |
Exercisable, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 73.19 |
Outstanding, Ending Balance, Weighted-Average Remaining Contractual Term (in years) | 4 years 10 months 24 days |
Exercisable, Ending Balance, Weighted-Average Remaining Contractual Term (in years) | 3 years 8 months 12 days |
Outstanding, Ending Balance, Aggregate Intrinsic Value | $ | $ 37,520 |
Exercisable, Ending Balance, Aggregate Intrinsic Value | $ | $ 16,480 |
Stock-Based Compensation (Sum29
Stock-Based Compensation (Summary Of Non-Vested Restricted Share Award Activity) (Details) shares in Thousands | 3 Months Ended |
Dec. 02, 2017$ / sharesshares | |
Restricted Share Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested restricted share awards, Beginning balance, Shares | shares | 160 |
Vested, Shares | shares | (86) |
Canceled/Forfeited, Shares | shares | (1) |
Non-vested restricted share awards, Ending balance, Shares | shares | 73 |
Non-vested restricted share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 80.49 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 79.45 |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 82.27 |
Non-vested restricted share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 81.56 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested restricted share awards, Beginning balance, Shares | shares | 313 |
Granted, Shares | shares | 152 |
Vested, Shares | shares | (65) |
Canceled/Forfeited, Shares | shares | (6) |
Non-vested restricted share awards, Ending balance, Shares | shares | 394 |
Non-vested restricted share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 66.66 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 79.60 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 65.04 |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 69.90 |
Non-vested restricted share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 71.88 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 02, 2017 | Sep. 02, 2017 | Dec. 03, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Taxable bonds | $ 27,025 | $ 27,025 | |
Gains and losses on securities | 0 | ||
Fair value of non-financial assets on non-recurring basis | 0 | $ 0 | |
Fair value of non-financial liabilities on non-recurring basis | $ 0 | $ 0 | |
Corporate Bond Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate on bonds | 2.40% |
Debt And Capital Lease Obliga31
Debt And Capital Lease Obligations (Credit Facility) (Narrative) (Details) - USD ($) | 3 Months Ended | |
Dec. 02, 2017 | Dec. 03, 2016 | |
Debt Instrument [Line Items] | ||
Borrowings under Credit Facility | $ 24,000,000 | $ 15,000,000 |
Repayments of debt | 65,000,000 | $ 78,500,000 |
New Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 600,000,000 | |
Maturity date | Apr. 14, 2022 | |
Credit facility, expiration term | 5 years | |
Available increase in amount borrowed | $ 300,000,000 | |
Borrowing rate under Credit Facility | 2.46% | |
Repayments of debt | $ 65,000,000 | |
Existing Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings under Credit Facility | 24,000,000 | |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 50,000,000 | |
Quarterly fronting fee | 0.125% | |
LIBOR [Member] | New Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Percentage points in addition to reference rate used in computation of variable rate on debt instrument | 1.125% | |
Federal Funds Effective Rate [Member] | New Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Percentage points in addition to reference rate used in computation of variable rate on debt instrument | 0.50% | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Quarterly undrawn fee | 0.10% | |
Minimum [Member] | Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Usage fee, percent | 1.00% | |
Minimum [Member] | LIBOR [Member] | New Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Percentage points in addition to reference rate used in computation of variable rate on debt instrument | 1.00% | |
Minimum [Member] | Leverage Ratio Margin [Member] | ||
Debt Instrument [Line Items] | ||
Percentage points in addition to reference rate used in computation of variable rate on debt instrument | 0.00% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Quarterly undrawn fee | 0.20% | |
Maximum [Member] | Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Usage fee, percent | 1.375% | |
Maximum [Member] | LIBOR [Member] | New Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Percentage points in addition to reference rate used in computation of variable rate on debt instrument | 1.375% | |
Maximum [Member] | Leverage Ratio Margin [Member] | ||
Debt Instrument [Line Items] | ||
Percentage points in addition to reference rate used in computation of variable rate on debt instrument | 0.375% |
Debt And Capital Lease Obliga32
Debt And Capital Lease Obligations (Private Placement Debt) (Narrative) (Details) - Private Placement Debt [Member] | 3 Months Ended | |
Dec. 02, 2017USD ($) | Sep. 02, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Maximum consolidated leverage ratio of total indebtedness to EBITDA | 3 | |
Maximum consolidated leverage ratio of total indebtedness to EBITDA after material acquisition | 3.50 | |
Minimum consolidated interest coverage ratio of EBITDA to total interest expense | 3 | |
Senior Notes Series A [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 75,000,000 | $ 75,000,000 |
Interest rate | 2.65% | 2.65% |
Maturity date | Jul. 28, 2023 | |
Senior Notes Series B [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 100,000,000 | $ 100,000,000 |
Interest rate | 2.90% | 2.90% |
Maturity date | Jul. 28, 2026 |
Debt And Capital Lease Obliga33
Debt And Capital Lease Obligations (Capital Lease Obligations) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 02, 2017 | Dec. 03, 2016 | Sep. 02, 2017 | |
Capital Leased Assets [Line Items] | |||
Amount due under capital leases and financing agreements | $ 28,436 | $ 27,829 | |
Borrowings under financing obligations | 721 | $ 739 | |
Property and equipment acquired under capital leases and financing agreements | 721 | ||
Property and equipment acquired under capital leases and financing agreements, accumulated amortization | $ 120 | ||
Fulfillment Center [Member] | |||
Capital Leased Assets [Line Items] | |||
Capital lease term | 20 years | ||
Amount due under capital leases and financing agreements | $ 27,025 | $ 27,025 | |
Minimum [Member] | Fulfillment Center [Member] | |||
Capital Leased Assets [Line Items] | |||
Capital lease, prepayment term with no penalty | 7 years | ||
Maximum [Member] | Fulfillment Center [Member] | |||
Capital Leased Assets [Line Items] | |||
Capital lease, prepayment term with no penalty | 20 years |
Debt and Capital Lease Obliga34
Debt and Capital Lease Obligations (Schedule Of Debt) (Details) - USD ($) | Dec. 02, 2017 | Sep. 02, 2017 | |
Debt Instrument [Line Items] | |||
Capital lease and financing obligations | $ 28,436,000 | $ 27,829,000 | |
Less: unamortized debt issuance costs | (1,755,000) | (1,852,000) | |
Total Debt | 492,681,000 | 532,977,000 | |
Less: short-term debt | [1] | (291,679,000) | (331,986,000) |
Long-term debt | 201,002,000 | 200,991,000 | |
New Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit Facility | 291,000,000 | 332,000,000 | |
Senior Notes Series A [Member] | Private Placement Debt [Member] | |||
Debt Instrument [Line Items] | |||
Private placement debt | 75,000,000 | 75,000,000 | |
Senior Notes Series B [Member] | Private Placement Debt [Member] | |||
Debt Instrument [Line Items] | |||
Private placement debt | $ 100,000,000 | $ 100,000,000 | |
[1] | Net of unamortized debt issuance costs expected to be amortized in the next twelve months. |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 02, 2018 | Dec. 27, 2017 | Dec. 02, 2017 | Dec. 03, 2016 | Jan. 09, 2018 | Sep. 02, 2017 |
Components Of Shareholders Equity [Line Items] | ||||||
Regular dividends cash paid | $ 27,087 | $ 25,495 | ||||
Purchase of treasury stock | $ 4,018 | |||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||||
Preferred stock, shares issued | 0 | 0 | ||||
Preferred stock, shares outstanding | 0 | 0 | ||||
Subsequent Event [Member] | ||||||
Components Of Shareholders Equity [Line Items] | ||||||
Dividends declared date | Jan. 2, 2018 | |||||
Dividends payable per share | $ 0.58 | |||||
Dividend payable date | Jan. 30, 2018 | |||||
Dividends record date | Jan. 16, 2018 | |||||
Dividend payable amount | $ 32,745 | |||||
Regular Dividends [Member] | ||||||
Components Of Shareholders Equity [Line Items] | ||||||
Cash dividends paid per common share | $ 0.48 | $ 0.45 | ||||
Regular dividends cash paid | $ 27,087 | $ 25,495 | ||||
Class A Common Stock [Member] | Subsequent Event [Member] | ||||||
Components Of Shareholders Equity [Line Items] | ||||||
Maximum number of shares that can be repurchased | 2,800,000 | |||||
Class A Treasury Stock [Member] | ||||||
Components Of Shareholders Equity [Line Items] | ||||||
Common stock shares repurchased | 51,000 | |||||
Purchase of treasury stock | $ 4,018 | |||||
Class A Treasury Stock [Member] | Subsequent Event [Member] | ||||||
Components Of Shareholders Equity [Line Items] | ||||||
Number of shares authorized for repurchase | 2,000,000 |
Product Warranties (Details)
Product Warranties (Details) | 3 Months Ended |
Dec. 02, 2017 | |
Minimum [Member] | |
Product warranties with original equipment manufacturers | 30 days |
Maximum [Member] | |
Warranty period | 1 year |
Product warranties with original equipment manufacturers | 90 days |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 3 Months Ended |
Dec. 02, 2017USD ($) | |
Changes in unrecognized tax benefits | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) | 3 Months Ended | 12 Months Ended |
Dec. 02, 2017 | Dec. 31, 2018 | |
Subsequent Event [Line Items] | ||
U.S. Federal statutory rate | 35.00% | |
Scenario, Forecast [Member] | ||
Subsequent Event [Line Items] | ||
U.S. Federal statutory rate | 21.00% |