Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 03, 2018 | Mar. 26, 2018 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 3, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 45,858,307 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 10,623,951 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 03, 2018 | Sep. 02, 2017 | |
Current Assets: | |||
Cash and cash equivalents | $ 31,608 | $ 16,083 | |
Accounts receivable, net of allowance for doubtful accounts of $13,456 and $13,278, respectively | 501,067 | 471,795 | |
Inventories | 498,987 | 464,959 | |
Prepaid expenses and other current assets | 56,253 | 52,742 | |
Total current assets | 1,087,915 | 1,005,579 | |
Property, plant and equipment, net | 308,124 | 316,305 | |
Goodwill | 633,405 | 633,728 | |
Identifiable intangibles, net | 105,306 | 110,429 | |
Other assets | 30,472 | 32,871 | |
Total assets | 2,165,222 | 2,098,912 | |
Current Liabilities: | |||
Short-term debt | [1] | 260,347 | 331,986 |
Accounts payable | 133,688 | 121,266 | |
Accrued liabilities | 100,400 | 104,473 | |
Total current liabilities | 494,435 | 557,725 | |
Long-term debt | 250,896 | 200,991 | |
Deferred income taxes and tax uncertainties | 73,856 | 115,056 | |
Total liabilities | 819,187 | 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 | 652,440 | 626,995 | |
Retained earnings | 1,285,681 | 1,168,812 | |
Accumulated other comprehensive loss | (18,079) | (17,263) | |
Class A treasury stock, at cost, 9,191,853 and 8,972,729 shares, respectively | (574,073) | (553,470) | |
Total shareholders' equity | 1,346,035 | 1,225,140 | |
Total liabilities and shareholders' equity | 2,165,222 | 2,098,912 | |
Class A Common Stock [Member] | |||
Shareholders' Equity: | |||
Common stock | 55 | 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 | 6 Months Ended | |
Mar. 03, 2018 | Sep. 02, 2017 | |
Accounts receivable, allowance for doubtful accounts | $ 13,456 | $ 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 | 9,191,853 | 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 | 55,050,160 | 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 | 10,623,951 | 11,850,636 |
Common stock, shares outstanding | 10,623,951 | 11,850,636 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 03, 2018 | Mar. 04, 2017 | Mar. 03, 2018 | Mar. 04, 2017 | |
Condensed Consolidated Statements Of Income [Abstract] | ||||
Net sales | $ 768,987 | $ 703,780 | $ 1,537,548 | $ 1,390,051 |
Cost of goods sold | 431,764 | 389,218 | 865,256 | 766,754 |
Gross profit | 337,223 | 314,562 | 672,292 | 623,297 |
Operating expenses | 239,120 | 227,917 | 474,911 | 446,052 |
Income from operations | 98,103 | 86,645 | 197,381 | 177,245 |
Other (expense) income: | ||||
Interest expense | (3,550) | (2,950) | (6,787) | (5,884) |
Interest income | 213 | 164 | 376 | 327 |
Other (expense) income, net | 77 | (54) | (331) | (338) |
Total other expense | (3,260) | (2,840) | (6,742) | (5,895) |
Income before provision for income taxes | 94,843 | 83,805 | 190,639 | 171,350 |
(Benefit) provision for income taxes | (22,709) | 30,246 | 13,502 | 63,503 |
Net income | $ 117,552 | $ 53,559 | $ 177,137 | $ 107,847 |
Net income per common share: | ||||
Basic | $ 2.08 | $ 0.94 | $ 3.14 | $ 1.90 |
Diluted | $ 2.06 | $ 0.93 | $ 3.12 | $ 1.89 |
Weighted average shares used in computing net income per common share: | ||||
Basic | 56,439 | 56,620 | 56,363 | 56,500 |
Diluted | 56,892 | 57,213 | 56,698 | 56,910 |
Cash dividends declared per common share | $ 0.58 | $ 0.45 | $ 1.06 | $ 0.90 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 03, 2018 | Mar. 04, 2017 | Mar. 03, 2018 | Mar. 04, 2017 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net income, as reported | $ 117,552 | $ 53,559 | $ 177,137 | $ 107,847 |
Foreign currency translation adjustments | 27 | (701) | (816) | (2,248) |
Comprehensive income | $ 117,579 | $ 52,858 | $ 176,321 | $ 105,599 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement Of Shareholders' Equity - 6 months ended Mar. 03, 2018 - 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 | 1,227 | (1,227) | ||||||||||||
Exchange of Class B common stock for Class A common stock, value | 1 | (1) | ||||||||||||
Exercise of common stock options, Shares | 232 | |||||||||||||
Exercise of common stock options, Value | 16,393 | 16,393 | ||||||||||||
Common stock issued under associate stock purchase plan, Shares | (30) | |||||||||||||
Common stock issued under associate stock purchase plan, Value | 1,251 | $ 1,125 | 2,376 | |||||||||||
Issuance of restricted common stock, net of cancellations, Shares | (3) | |||||||||||||
Shares issued upon vesting of restricted stock units, including dividend equivalent units, Value | $ 212 | $ 212 | ||||||||||||
Shares issued upon vesting of restricted stock units, including dividend equivalent units, Shares | 80 | |||||||||||||
Stock-based compensation | 7,589 | 7,589 | ||||||||||||
Repurchases of common stock, Shares | 249 | |||||||||||||
Repurchases of common stock, Value | $ (21,728) | (21,728) | ||||||||||||
Net income | 177,137 | 177,137 | ||||||||||||
Cash dividends on common stock | $ (47,687) | $ (47,687) | $ (12,186) | $ (12,186) | ||||||||||
Dividend equivalent units declared, net of cancellations | (395) | (395) | ||||||||||||
Foreign currency translation adjustment | (816) | (816) | ||||||||||||
Balance, Value at Mar. 03, 2018 | $ 55 | $ 11 | $ 652,440 | $ 1,285,681 | $ (18,079) | $ (574,073) | $ 1,346,035 | |||||||
Balance, Shares at Mar. 03, 2018 | 55,050 | 10,624 | 9,192 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 03, 2018 | Mar. 04, 2017 | |
Cash Flows from Operating Activities: | ||
Net income | $ 177,137 | $ 107,847 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 31,307 | 30,815 |
Stock-based compensation | 7,589 | 6,925 |
Loss on disposal of property, plant, and equipment | 178 | 333 |
Provision for doubtful accounts | 3,407 | 3,415 |
Deferred income taxes and tax uncertainties | (41,199) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (32,461) | (41,680) |
Inventories | (33,648) | (21,289) |
Prepaid expenses and other current assets | (3,457) | (343) |
Other assets | 2,330 | 1,056 |
Accounts payable and accrued liabilities | 7,004 | 9,577 |
Total adjustments | (58,950) | (11,191) |
Net cash provided by operating activities | 118,187 | 96,656 |
Cash Flows from Investing Activities: | ||
Expenditures for property, plant and equipment | (17,261) | (25,508) |
Cash used in business acquisition | (738) | |
Net cash used in investing activities | (17,999) | (25,508) |
Cash Flows from Financing Activities: | ||
Repurchases of common stock | (21,728) | (3,377) |
Payments of cash dividends | (59,873) | (51,010) |
Proceeds from sale of Class A common stock in connection with associate stock purchase plan | 2,376 | 2,196 |
Proceeds from exercise of Class A common stock options | 16,393 | 21,933 |
Borrowings under Credit Facility | 74,000 | 78,000 |
Borrowings under Shelf Facility Agreement | 50,000 | |
Payments of notes payable and revolving credit note under the Credit Facility | (146,000) | (136,000) |
Other, net | 71 | (36) |
Net cash used in financing activities | (84,761) | (88,294) |
Effect of foreign exchange rate changes on cash and cash equivalents | 98 | (142) |
Net increase (decrease) in cash and cash equivalents | 15,525 | (17,288) |
Cash and cash equivalents—beginning of period | 16,083 | 52,890 |
Cash and cash equivalents—end of period | 31,608 | 35,602 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes | 50,279 | 58,737 |
Cash paid for interest | $ 6,553 | $ 5,524 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Mar. 03, 2018 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | Note 1. Basis of Presentation The accompanying condensed consolidated financial statements include MSC Industrial Dire ct Co., Inc. (“MSC”) and all 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. Accordin gly, they do not include all 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 ( including normal recurring adjustments) have been included. Operating results for the thirteen and twenty-six- week period s ended March 3, 2018 are 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 . Recently Adopted Accounting Pronouncements 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 Income Statement - Reporting Comprehensive Income In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). This ASU provides guidance on a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for the effect of the tax rate change resulting from the Tax Cuts and Jobs Act (H.R.1) (the "Tax Reform Act"). The amendments eliminate the stranded tax effects resulting from the Tax Reform Act and will improve the usefulness of information reported to financial statement users. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. This ASU is effective for the Company in the first quarter of fiscal 2020. The Company is currently evaluating this standard which is not expected to have a material impact on its consolidated financial statements. 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. Reclassification Certain items have been reclassified from the prior year to conform to the current year presentation. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Mar. 03, 2018 | |
Net Income Per Share [Abstract] | |
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 and twenty-six weeks ended March 3, 2018 and March 4, 2017 , respectively: Thirteen Weeks Ended Twenty-Six Weeks Ended March 3, March 4, March 3, March 4, 2018 2017 2018 2017 Net income as reported $ 117,552 $ 53,559 $ 177,137 $ 107,847 Less: Distributed net income available to participating securities (22) (36) (59) (113) Less: Undistributed net income available to participating securities (105) (84) (197) (199) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 117,425 $ 53,439 $ 176,881 $ 107,535 Add: Undistributed net income allocated to participating securities 105 84 197 199 Less: Undistributed net income reallocated to participating securities (104) (83) (196) (197) Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 117,426 $ 53,440 $ 176,882 $ 107,537 Denominator: Weighted average shares outstanding for basic net income per share 56,439 56,620 56,363 56,500 Effect of dilutive securities 453 593 335 410 Weighted average shares outstanding for diluted net income per share 56,892 57,213 56,698 56,910 Net income per share Two-class method: Basic $ 2.08 $ 0.94 $ 3.14 $ 1.90 Diluted $ 2.06 $ 0.93 $ 3.12 $ 1.89 There were no antidilutive stock options included in the computation of diluted earnings per share for the thirteen and twenty-six-week periods ended March 3, 2018 and March 4, 2017, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Mar. 03, 2018 | |
Stock-Based Compensation [Abstract] | |
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 and twenty-six-week periods ended March 3, 2018 and March 4, 2017 was as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended March 3, March 4, March 3, March 4, 2018 2017 2018 2017 Stock options $ 1,128 $ 1,075 $ 2,322 $ 2,187 Restricted share awards 670 1,012 1,572 2,334 Restricted stock units 1,821 1,233 3,575 2,275 Associate Stock Purchase Plan 76 67 120 129 Total 3,695 3,387 7,589 6,925 Deferred income tax benefit (1,083) (1,288) (2,224) (2,632) Stock-based compensation expense, net $ 2,612 $ 2,099 $ 5,365 $ 4,293 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: Twenty-Six Weeks Ended March 3, March 4, 2018 2017 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 twenty-six-week period ended March 3, 2018 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 (232) 70.80 Canceled/Forfeited (31) 72.68 Outstanding on March 3, 2018 1,916 $ 72.85 4.8 $ 26,947 Exercisable on March 3, 2018 764 $ 73.60 3.6 $ 10,167 The unrecognized share ‑based compensation cost related to stock option expense at March 3, 2018 was $9,912 and will be recognized over a weighted average period of 2.6 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 twenty-six -week periods ended March 3, 2018 and March 4, 2017 was $5,283 and $9,100 , 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 twenty-six -week period ended March 3, 2018 is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested restricted share awards at September 2, 2017 160 $ 80.49 Granted — — Vested (88) 79.36 Canceled/Forfeited (3) 82.27 Non-vested restricted share awards at March 3, 2018 69 $ 81.75 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 March 3, 2018 was $3,259 and will be recognized over a weighted average period of 1.4 years. Restricted stock units A summa ry of the Company’s non-vested Restricted Stock U nit (“RSU”) award activity for the twenty-six-week period ended March 3, 2018 is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested restricted stock unit awards at September 2, 2017 313 $ 66.66 Granted 166 81.00 Vested (78) 66.60 Canceled/Forfeited (13) 71.56 Non-vested restricted stock unit awards at March 3, 2018 388 $ 72.65 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 March 3, 2018 was $22,955 and is expected to be recognized over a weighted average period of 3.7 years. |
Fair Value
Fair Value | 6 Months Ended |
Mar. 03, 2018 | |
Fair Value [Abstract] | |
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 purchased by 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 March 3, 2018 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 and twenty-six- w eek period s ended March 3, 2018 . 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 March 3, 2018 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 March 3, 2018 and September 2, 2017 due to the short-term maturity of these items. During the twenty-six weeks ended March 3, 2018 and March 4, 2017 , the Company had no re 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 | 6 Months Ended |
Mar. 03, 2018 | |
Debt And Capital Lease Obligations [Abstract] | |
Debt And Capital Lease Obligations | Note 5. Debt and Capital Lease Obligations Debt at March 3, 2018 and September 2, 2017 consisted of the following: March 3, September 2, 2018 2017 (Dollars in thousands) Revolving Credit Facility $ 260,000 $ 332,000 Private Placement Debt: Senior notes, series A 75,000 75,000 Senior notes, series B 100,000 100,000 Shelf Facility Agreement 50,000 - Capital lease and financing obligations 28,017 27,829 Subtotal $ 513,017 $ 534,829 Less: unamortized debt issuance costs (1,774) (1,852) Total debt $ 511,243 $ 532,977 Less: short-term debt (1) (260,347) (331,986) Long-term debt $ 250,896 $ 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 March 3, 2018 was 2.75% which represents LIBOR plus 1.125% . Based on the interest period the Company selects, interest may b e payable every one, two, or three 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 twenty-six -w eek period ended March 3, 2018 , the Company borrowed $74,000 and repaid $146,000 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. Shelf Facility Agreements In January 2018, the Company entered into Note Purchase and Private Shelf Agreements with Metropolitan Life Insurance Company (“ Met Life Note Purchase Agreement” ) and PGIM, Inc. (“Prudential Note Purchase Agreement” and together with the Met Life Note Purchase Agreement, the “Shelf Facility Agreements”). The Met Life Note Purchase Agreement provides for an uncommitted facility for the issuance and sale of up to an aggregate total of $250,000 of senior notes, at either fixed or floating rates. As of March 3, 2018, the Company has not issued any notes under the Met Life Note Purchase Agreement. The Prudential Note Purchase Agreement provides for an uncommitted facility for the issuance and sale of up to an aggregate total of $250,000 of senior notes, at a fixed rate. In January 2018, the Company completed the issuance and sale of $50,000 aggregate principal amount of 3.04% per annum and payable semiannually Senior Notes due January 12, 2023 under the Prudential Note Purchase Agreement in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended. The proceeds from the issuance and sale of the Prudential Senior Notes have been used to pay a portion of the revolving loans outstanding under the Credit Facility. As of March 3, 2018, the aggregate availability under the Prudential Note Purchase Agreement is $200,000 . Each of the Credit Facility, Private Placement Debt , and Shelf Facility Agreements 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 to 1.00), and a minimum consolidated interest coverage ratio of EBITDA to total interest expense of at least 3.00 to 1.00, during the terms of the Credit Facility , Private Placement Debt and Shelf Facility Agreements . At March 3, 2018 , the Company was in compliance with the operating and financial covenants of the Credit Facility, Private Placement Debt , and Shelf Facility Agreements . 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 March 3, 2018 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 agr eed upon. During the twenty-six- week period ended March 3, 2018, the Company entered into a financing obligation for certain software totaling $721 . The gross amount of property and equipment acquired under this financing obligation and its accumulated amortization at March 3, 2018 was approximately $721 and $301 , respectively. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Mar. 03, 2018 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 6. Shareholders’ Equity The Company paid cash dividends o f $1.06 per common share totali ng $59,873 fo r the twenty-six weeks ended March 3, 2018 . For the twenty-six weeks ended March 4, 2017 , the Company paid cash dividends of $0.90 per common share totaling $51,010 . On April 5, 2018 , the Board of Directors declared a quarterly cash dividend of $0.58 per share payable on May 1, 2018 to shareholders of record at the close of business on April 17, 2018 . The dividend will result in a payout of approximately $ 32,760 , based on the number of shares outstanding at March 26, 2018. 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 twenty-six -w eek period ended March 3, 2018 , the Company repurcha sed 249 shares of its Class A common stock for $21,728 , wh ic h is reflected at cost as treasury stock in the accompanying condensed consolidated financial statements. Of these shares, 53 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 , increasing the total number of shares of Class A common stock authorized for future repurchase to approximately 2,600 shares at March 3, 2018 . |
Product Warranties
Product Warranties | 6 Months Ended |
Mar. 03, 2018 | |
Product Warranties [Abstract] | |
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 and twenty-six- week periods ended March 3, 2018 and March 4, 2017 was minimal. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 03, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8. Income Taxes On December 22, 2017, the Tax Reform Act was enacted. The Tax Reform Act made significant changes to U.S. federal income tax laws including permanently lowering the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. As the Company h as a fiscal August year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory rate of 25.7% for the fiscal year ending September 1, 2018. The Company’s statutory federal tax rate will be 21.0 % for fiscal years 2019 and beyond. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. In December 2017, the SEC issued Staff Accounting Bulletin No. 118, which allows a company to report provisional numbers related to the Tax Reform Act and adjust those amounts during a measurement period not to extend beyond one year. For the thirteen and t wenty-six-week periods ended March 3, 2018, the Company recorded a one-time provisional net tax benefit of $41,199 due to the re valuation of its net deferred tax liabilities primarily related to the lower federal corporate tax rate, partially offset by the lower federal benefit for state taxes and the change from a worldwide tax system to a territorial tax system. In addition, applying the reduced effective tax rate of 29.3% , including state taxes and which excludes discrete items, to our first and second fiscal quarter earnings resulted in a $16,929 reduction to tax expense. The amounts recorded are provisional and are subject to change due to further interpretations of the Tax Reform Act, legislative action to address questions that arise because of the Tax Reform Act, and/or any updates or changes to estimates the Company has utilized to calculate the impacts, such as return to accrual adjustments and/or changes to current year earnings estimates and the Company’s ongoing analysis of the Tax Reform Act. During the twenty-six -w eek period ended March 3, 2018 , there were no material changes in unrecognized tax benefits. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Mar. 03, 2018 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | Note 9. Legal Proceedings There are various claims, lawsuits, and pending actions against the Company inc idental 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. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Mar. 03, 2018 | |
Net Income Per Share [Abstract] | |
Basic And Diluted Net Income Per Common Share Under The Two-Class Method | Thirteen Weeks Ended Twenty-Six Weeks Ended March 3, March 4, March 3, March 4, 2018 2017 2018 2017 Net income as reported $ 117,552 $ 53,559 $ 177,137 $ 107,847 Less: Distributed net income available to participating securities (22) (36) (59) (113) Less: Undistributed net income available to participating securities (105) (84) (197) (199) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 117,425 $ 53,439 $ 176,881 $ 107,535 Add: Undistributed net income allocated to participating securities 105 84 197 199 Less: Undistributed net income reallocated to participating securities (104) (83) (196) (197) Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 117,426 $ 53,440 $ 176,882 $ 107,537 Denominator: Weighted average shares outstanding for basic net income per share 56,439 56,620 56,363 56,500 Effect of dilutive securities 453 593 335 410 Weighted average shares outstanding for diluted net income per share 56,892 57,213 56,698 56,910 Net income per share Two-class method: Basic $ 2.08 $ 0.94 $ 3.14 $ 1.90 Diluted $ 2.06 $ 0.93 $ 3.12 $ 1.89 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Mar. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Stock-Based Compensation Expense | Thirteen Weeks Ended Twenty-Six Weeks Ended March 3, March 4, March 3, March 4, 2018 2017 2018 2017 Stock options $ 1,128 $ 1,075 $ 2,322 $ 2,187 Restricted share awards 670 1,012 1,572 2,334 Restricted stock units 1,821 1,233 3,575 2,275 Associate Stock Purchase Plan 76 67 120 129 Total 3,695 3,387 7,589 6,925 Deferred income tax benefit (1,083) (1,288) (2,224) (2,632) Stock-based compensation expense, net $ 2,612 $ 2,099 $ 5,365 $ 4,293 |
Schedule Of Option Grant Fair Value Assumptions | Twenty-Six Weeks Ended March 3, March 4, 2018 2017 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 (232) 70.80 Canceled/Forfeited (31) 72.68 Outstanding on March 3, 2018 1,916 $ 72.85 4.8 $ 26,947 Exercisable on March 3, 2018 764 $ 73.60 3.6 $ 10,167 |
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 (88) 79.36 Canceled/Forfeited (3) 82.27 Non-vested restricted share awards at March 3, 2018 69 $ 81.75 |
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 166 81.00 Vested (78) 66.60 Canceled/Forfeited (13) 71.56 Non-vested restricted stock unit awards at March 3, 2018 388 $ 72.65 |
Debt And Capital Lease Obliga19
Debt And Capital Lease Obligations (Tables) | 6 Months Ended |
Mar. 03, 2018 | |
Debt And Capital Lease Obligations [Abstract] | |
Schedule Of Debt | March 3, September 2, 2018 2017 (Dollars in thousands) Revolving Credit Facility $ 260,000 $ 332,000 Private Placement Debt: Senior notes, series A 75,000 75,000 Senior notes, series B 100,000 100,000 Shelf Facility Agreement 50,000 - Capital lease and financing obligations 28,017 27,829 Subtotal $ 513,017 $ 534,829 Less: unamortized debt issuance costs (1,774) (1,852) Total debt $ 511,243 $ 532,977 Less: short-term debt (1) (260,347) (331,986) Long-term debt $ 250,896 $ 200,991 ____________________ (1) Net of unamortized debt issuance costs expected to be amortized in the next twelve months. |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 03, 2018 | Mar. 04, 2017 | Mar. 03, 2018 | Mar. 04, 2017 | |
Net Income Per Share [Abstract] | ||||
Net income as reported | $ 117,552 | $ 53,559 | $ 177,137 | $ 107,847 |
Less: Distributed net income available to participating securities | (22) | (36) | (59) | (113) |
Less: Undistributed net income available to participating securities | (105) | (84) | (197) | (199) |
Undistributed and distributed net income available to common shareholders | 117,425 | 53,439 | 176,881 | 107,535 |
Add: Undistributed net income allocated to participating securities | 105 | 84 | 197 | 199 |
Less: Undistributed net income reallocated to participating securities | (104) | (83) | (196) | (197) |
Undistributed and distributed net income available to common shareholders | $ 117,426 | $ 53,440 | $ 176,882 | $ 107,537 |
Weighted average shares outstanding for basic net income per share | 56,439,000 | 56,620,000 | 56,363,000 | 56,500,000 |
Effect of dilutive securities | 453,000 | 593,000 | 335,000 | 410,000 |
Weighted average shares outstanding for diluted net income per share | 56,892,000 | 57,213,000 | 56,698,000 | 56,910,000 |
Basic | $ 2.08 | $ 0.94 | $ 3.14 | $ 1.90 |
Diluted | $ 2.06 | $ 0.93 | $ 3.12 | $ 1.89 |
Antidilutive stock options | 0 | 0 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 03, 2018 | Mar. 04, 2017 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 9,912 | |
Unrecognized share-based compensation weighted average period | 2 years 7 months 6 days | |
Total intrinsic value of options exercised | $ 5,283 | $ 9,100 |
Restricted Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 3,259 | |
Unrecognized share-based compensation weighted average period | 1 year 4 months 24 days | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 22,955 | |
Unrecognized share-based compensation weighted average period | 3 years 8 months 12 days |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 03, 2018 | Mar. 04, 2017 | Mar. 03, 2018 | Mar. 04, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 3,695 | $ 3,387 | $ 7,589 | $ 6,925 |
Deferred income tax benefit | (1,083) | (1,288) | (2,224) | (2,632) |
Stock-based compensation expense, net | 2,612 | 2,099 | 5,365 | 4,293 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 1,128 | 1,075 | 2,322 | 2,187 |
Restricted Share Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 670 | 1,012 | 1,572 | 2,334 |
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 1,821 | 1,233 | 3,575 | 2,275 |
Associate Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 76 | $ 67 | $ 120 | $ 129 |
Stock-Based Compensation (Sch23
Stock-Based Compensation (Schedule Of Option Grant Fair Value Assumptions) (Details) - $ / shares | 6 Months Ended | |
Mar. 03, 2018 | Mar. 04, 2017 | |
Stock-Based Compensation [Abstract] | ||
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 | 6 Months Ended |
Mar. 03, 2018USD ($)$ / 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 | (232) |
Canceled/Forfeited, Options | shares | (31) |
Outstanding, Ending Balance, Options | shares | 1,916 |
Exercisable, Ending Balance, Options | shares | 764 |
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 | 70.80 |
Canceled/Forfeited, Weighted-Average Exercise Price per Share | $ / shares | 72.68 |
Outstanding, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | 72.85 |
Exercisable, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 73.60 |
Outstanding, Ending Balance, Weighted-Average Remaining Contractual Term (in years) | 4 years 9 months 18 days |
Exercisable, Ending Balance, Weighted-Average Remaining Contractual Term (in years) | 3 years 7 months 6 days |
Outstanding, Ending Balance, Aggregate Intrinsic Value | $ | $ 26,947 |
Exercisable, Ending Balance, Aggregate Intrinsic Value | $ | $ 10,167 |
Stock-Based Compensation (Sum25
Stock-Based Compensation (Summary Of Non-Vested Restricted Share Award Activity) (Details) shares in Thousands | 6 Months Ended |
Mar. 03, 2018$ / 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 | (88) |
Canceled/Forfeited, Shares | shares | (3) |
Non-vested restricted share awards, Ending balance, Shares | shares | 69 |
Non-vested restricted share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 80.49 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 79.36 |
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 | $ 81.75 |
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 | 166 |
Vested, Shares | shares | (78) |
Canceled/Forfeited, Shares | shares | (13) |
Non-vested restricted share awards, Ending balance, Shares | shares | 388 |
Non-vested restricted share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 66.66 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 81 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 66.60 |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 71.56 |
Non-vested restricted share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 72.65 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Mar. 03, 2018 | Sep. 02, 2017 | Mar. 04, 2017 | |
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 Obliga27
Debt And Capital Lease Obligations (Credit Facility) (Narrative) (Details) | 6 Months Ended | |
Mar. 03, 2018USD ($) | Mar. 04, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Maximum consolidated leverage ratio of total indebtedness to EBITDA | 3 | |
Minimum consolidated interest coverage ratio of EBITDA to total interest expense | 3 | |
Borrowings under Credit Facility | $ 74,000,000 | $ 78,000,000 |
Repayments of debt | 146,000,000 | $ 136,000,000 |
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 | 2.75% | |
Repayments of debt | $ 146,000,000 | |
Existing Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings under Credit Facility | 74,000,000 | |
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 Obliga28
Debt And Capital Lease Obligations (Private Placement Debt) (Narrative) (Details) - Private Placement Debt [Member] - USD ($) | 6 Months Ended | |
Mar. 03, 2018 | Sep. 02, 2017 | |
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 Obliga29
Debt And Capital Lease Obligations (Shelf Facility Agreements) (Narrative) (Details) | 6 Months Ended |
Mar. 03, 2018USD ($) | |
Line of Credit Facility [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 |
Met Life Note Purchase Agreement [Member] | |
Line of Credit Facility [Line Items] | |
Credit facility, maximum borrowing capacity | $ 250,000,000 |
Shelf Facility Agreement [Member] | |
Line of Credit Facility [Line Items] | |
Credit facility, maximum borrowing capacity | 250,000,000 |
Remaining borrowing capacity | 200,000,000 |
Senior Notes [Member] | Shelf Facility Agreement [Member] | |
Line of Credit Facility [Line Items] | |
Principal amount | $ 50,000,000 |
Interest rate | 3.04% |
Debt And Capital Lease Obliga30
Debt And Capital Lease Obligations (Capital Lease Obligations) (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 03, 2018 | Sep. 02, 2017 | |
Capital Leased Assets [Line Items] | ||
Amount due under capital leases and financing agreements | $ 28,017 | $ 27,829 |
Borrowings under financing obligations | 721 | |
Property and equipment acquired under capital leases and financing agreements | 721 | |
Property and equipment acquired under capital leases and financing agreements, accumulated amortization | $ 301 | |
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 Obliga31
Debt and Capital Lease Obligations (Schedule Of Debt) (Details) - USD ($) | Mar. 03, 2018 | Sep. 02, 2017 | |
Debt Instrument [Line Items] | |||
Capital lease and financing obligations | $ 28,017,000 | $ 27,829,000 | |
Subtotal | 513,017,000 | 534,829,000 | |
Less: unamortized debt issuance costs | (1,774,000) | (1,852,000) | |
Total debt | 511,243,000 | 532,977,000 | |
Less: short-term debt | [1] | (260,347,000) | (331,986,000) |
Long-term debt | 250,896,000 | 200,991,000 | |
New Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit Facility | 260,000,000 | 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 | |
Shelf Facility Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Shelf Facility | $ 50,000,000 | ||
[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 | Apr. 05, 2018 | Mar. 26, 2018 | Mar. 03, 2018 | Mar. 04, 2017 | Jan. 09, 2018 | Sep. 02, 2017 |
Components Of Shareholders Equity [Line Items] | ||||||
Regular dividends cash paid | $ 59,873 | $ 51,010 | ||||
Purchase of treasury stock | $ 21,728 | |||||
Shares repurchased by the company for associates' tax withholding liability associated with share-based compensation | 53,000 | |||||
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 | Apr. 5, 2018 | |||||
Dividends payable per share | $ 0.58 | |||||
Dividend payable date | May 1, 2018 | |||||
Dividends record date | Apr. 17, 2018 | |||||
Dividend payable amount | $ 32,760 | |||||
Regular Dividends [Member] | ||||||
Components Of Shareholders Equity [Line Items] | ||||||
Cash dividends paid per common share | $ 1.06 | $ 0.90 | ||||
Regular dividends cash paid | $ 59,873 | $ 51,010 | ||||
Class A Common Stock [Member] | ||||||
Components Of Shareholders Equity [Line Items] | ||||||
Maximum number of shares that can be repurchased | 2,600,000 | |||||
Class A Treasury Stock [Member] | ||||||
Components Of Shareholders Equity [Line Items] | ||||||
Common stock shares repurchased | 249,000 | |||||
Purchase of treasury stock | $ 21,728 | |||||
Number of shares authorized for repurchase | 2,000,000 |
Product Warranties (Details)
Product Warranties (Details) | 6 Months Ended |
Mar. 03, 2018 | |
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) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Mar. 03, 2018 | Dec. 31, 2018 | Sep. 01, 2018 | Dec. 31, 2017 | |
U.S. Federal statutory rate | 29.30% | 35.00% | ||
Tax benefit from remeasurement of deferred tax items | $ 41,199 | |||
Reduction to tax expense from change in tax rate | 16,929 | |||
Changes in unrecognized tax benefits | $ 0 | |||
Scenario, Plan [Member] | ||||
U.S. Federal statutory rate | 21.00% | 25.70% |