Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 01, 2018 | Dec. 18, 2018 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 1, 2018 | |
Document Fiscal Year Focus | 2,019 | |
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 | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Trading Symbol | msm | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 45,146,984 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 10,193,348 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 01, 2018 | Sep. 01, 2018 | |
Current Assets: | |||
Cash and cash equivalents | $ 11,615 | $ 46,217 | |
Accounts receivable, net of allowance for doubtful accounts of $14,964 and $12,992, respectively | 531,406 | 523,892 | |
Inventories | 527,984 | 518,496 | |
Prepaid expenses and other current assets | 60,928 | 58,902 | |
Total current assets | 1,131,933 | 1,147,507 | |
Property, plant and equipment, net | 307,586 | 311,685 | |
Goodwill | 674,464 | 674,998 | |
Identifiable intangibles, net | 119,762 | 122,724 | |
Other assets | 31,053 | 31,813 | |
Total assets | 2,264,798 | 2,288,727 | |
Current Liabilities: | |||
Short-term debt | [1] | 210,979 | 224,097 |
Accounts payable | 154,896 | 145,133 | |
Accrued liabilities | 111,241 | 121,293 | |
Total current liabilities | 477,116 | 490,523 | |
Long-term debt | 311,656 | 311,236 | |
Deferred income taxes and tax uncertainties | 99,714 | 99,714 | |
Total liabilities | 888,486 | 901,473 | |
Commitments and Contingencies | |||
Shareholders' Equity: | |||
Preferred stock; $0.001 par value; 5,000,000 shares authorized; none issued and outstanding | |||
Additional paid-in capital | 660,185 | 657,749 | |
Retained earnings | 1,316,489 | 1,325,822 | |
Accumulated other comprehensive loss | (20,975) | (19,634) | |
Class A treasury stock, at cost, 9,234,703 and 9,207,635 shares, respectively | (579,451) | (576,748) | |
Total shareholders' equity | 1,376,312 | 1,387,254 | |
Total liabilities and shareholders' equity | 2,264,798 | 2,288,727 | |
Class A Common Stock [Member] | |||
Shareholders' Equity: | |||
Common stock | 54 | 55 | |
Class B Common Stock [Member] | |||
Shareholders' Equity: | |||
Common stock | $ 10 | $ 10 | |
[1] | __________________________Net of unamortized debt issuance costs expected to be amortized in the next twelve months. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 01, 2018 | Sep. 01, 2018 | |
Accounts receivable, allowance for doubtful accounts | $ 14,964 | $ 12,992 |
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 | 9,234,703 | 9,207,635 |
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 | 54,381,687 | 54,649,158 |
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 | 10,193,348 | 10,454,765 |
Common stock, shares outstanding | 10,193,348 | 10,454,765 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 01, 2018 | Dec. 02, 2017 | |
Condensed Consolidated Statements Of Income [Abstract] | ||
Net sales | $ 831,597 | $ 768,561 |
Cost of goods sold | 473,612 | 433,492 |
Gross profit | 357,985 | 335,069 |
Operating expenses | 254,985 | 235,791 |
Income from operations | 103,000 | 99,278 |
Other (expense) income: | ||
Interest expense | (4,056) | (3,237) |
Interest income | 162 | 163 |
Other (expense) income, net | 2 | (408) |
Total other expense | (3,892) | (3,482) |
Income before provision for income taxes | 99,108 | 95,796 |
Provision for income taxes | 24,876 | 36,211 |
Net income | $ 74,232 | $ 59,585 |
Net income per common share: | ||
Basic | $ 1.34 | $ 1.06 |
Diluted | $ 1.33 | $ 1.05 |
Weighted average shares used in computing net income per common share: | ||
Basic | 55,502 | 56,287 |
Diluted | 55,831 | 56,504 |
Cash dividends declared per common share | $ 0.63 | $ 0.48 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 01, 2018 | Dec. 02, 2017 | ||
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income, as reported | $ 74,232 | $ 59,585 | |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | (1,341) | (843) | |
Comprehensive income | [1] | $ 72,891 | $ 58,742 |
[1] | There were no material taxes associated with other comprehensive income during the thirteen-week periods ending December 1, 2018 and December 2, 2017, respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | |
Dec. 01, 2018 | Dec. 02, 2017 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||
Other comprehensive income, taxes | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement Of Shareholders' Equity - 3 months ended Dec. 01, 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. 01, 2018 | $ 55 | $ 10 | $ 657,749 | $ 1,325,822 | $ (19,634) | $ (576,748) | $ 1,387,254 | |||||||
Balance, Shares at Sep. 01, 2018 | 54,649 | 10,455 | 9,208 | |||||||||||
Exchange of Class B common stock for Class A common stock, shares | 262 | (262) | ||||||||||||
Exercise of common stock options, Shares | 118 | |||||||||||||
Exercise of common stock options, Value | 9,329 | 9,329 | ||||||||||||
Common stock issued under associate stock purchase plan, Shares | (13) | |||||||||||||
Common stock issued under associate stock purchase plan, Value | 457 | $ 497 | 954 | |||||||||||
Shares issued upon vesting of restricted stock units, including dividend equivalent units, Value | $ 363 | $ 363 | ||||||||||||
Shares issued upon vesting of restricted stock units, including dividend equivalent units, Shares | 91 | |||||||||||||
Stock-based compensation | 4,174 | 4,174 | ||||||||||||
Repurchases of common stock, Shares | 40 | |||||||||||||
Repurchases of common stock, Value | $ (3,200) | $ (3,200) | ||||||||||||
Repurchase and retirement of common stock, Shares | (738) | (238) | ||||||||||||
Repurchase and retirement of common stock, Value | (1) | (11,887) | (48,439) | $ (60,327) | ||||||||||
Cash dividends on common stock | $ (28,436) | $ (28,436) | $ (6,422) | $ (6,422) | ||||||||||
Dividend equivalent units declared, net of cancellations | (268) | (268) | ||||||||||||
Foreign currency translation adjustment | (1,341) | (1,341) | ||||||||||||
Net income | 74,232 | 74,232 | ||||||||||||
Balance, Value at Dec. 01, 2018 | $ 54 | $ 10 | $ 660,185 | $ 1,316,489 | $ (20,975) | $ (579,451) | $ 1,376,312 | |||||||
Balance, Shares at Dec. 01, 2018 | 54,382 | 10,193 | 9,235 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 01, 2018 | Dec. 02, 2017 | |
Cash Flows from Operating Activities: | ||
Net income | $ 74,232 | $ 59,585 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,846 | 15,749 |
Stock-based compensation | 4,174 | 3,894 |
Loss on disposal of property, plant, and equipment | 141 | 126 |
Provision for doubtful accounts | 2,814 | 1,698 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (10,630) | (9,291) |
Inventories | (9,803) | (4,259) |
Prepaid expenses and other current assets | (2,044) | (1,663) |
Other assets | 753 | 1,252 |
Accounts payable and accrued liabilities | 1,383 | 14,888 |
Total adjustments | 2,634 | 22,394 |
Net cash provided by operating activities | 76,866 | 81,979 |
Cash Flows from Investing Activities: | ||
Expenditures for property, plant and equipment | (10,053) | (9,028) |
Cash used in business acquisitions, net of cash received | (738) | |
Net cash used in investing activities | (10,053) | (9,766) |
Cash Flows from Financing Activities: | ||
Repurchases of common stock | (63,527) | (4,018) |
Payments of cash dividends | (34,858) | (27,087) |
Proceeds from sale of Class A common stock in connection with associate stock purchase plan | 954 | 959 |
Proceeds from exercise of Class A common stock options | 9,329 | 2,405 |
Borrowings under the revolving credit facilities | 245,000 | 24,000 |
Payments under the revolving credit facilities | (259,000) | (65,000) |
Other, net | 753 | 606 |
Net cash used in financing activities | (101,349) | (68,135) |
Effect of foreign exchange rate changes on cash and cash equivalents | (66) | 91 |
Net increase (decrease) in cash and cash equivalents | (34,602) | 4,169 |
Cash and cash equivalents—beginning of period | 46,217 | 16,083 |
Cash and cash equivalents—end of period | 11,615 | 20,252 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes | 1,761 | 1,757 |
Cash paid for interest | $ 1,685 | $ 2,068 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Dec. 01, 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-week period ended December 1, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2019 . 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 1, 2018 . 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 2019 fiscal year will be a 52 -week accounting period that will end on August 31, 2019 and its 2018 fiscal year was a 52 -week accounting period that ended on September 1, 2018 . Recently Adopted Accounting Pronouncements Effective September 2, 2018, the Company adopted the Financi al Accounting Standards Board (“FASB” ) Accounting Standards Update ( “ ASU ” ) 2014-09, Revenue from Contracts with Customers (Topic 606) as modified by subsequently issued ASUs 2015-14, 2016-08, 2016-10 , 2016-12, 2016-20 and 2017-05. These ASUs outline a single comprehensive model for entities to use in the accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Revenue continues to be recognized when products are shipped to the customer and t he adoption of these ASUs, using the modified retrospective approach, had no impact to the Company’s opening retained earnings. The Company reports its sales net of estimated sales returns and sales incentives. Sales tax collected from customers is excluded from net sales. Additional information and disclosures required by this new standard are contained in Note 2 , Revenue . Effective September 2, 2018, the Company adopted ASU 2017-01, which clarifies the definition of a business to assist entities with evaluating when a set of transferred assets and activities is considered a business. This standard will be applied to appropriate business combinations that occur beginning September 2, 2018. Accounting Pronouncements Not Yet Adopted I n February 2016, the FASB issued its final standard on accounting for leases , ASU 2016-02, Leases (Topic 842). This standard requires that an entity that is a lessee recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. This update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with earlier application permitted. The new standard is effective for the Company for its fiscal year 2020. While we are still in the process of evaluating the effect of adoption on our consolidated financial statements and are currently assessing our leases, we expect the adoption will lead to a significant increase in the assets and liabilities recorded on our Condensed Consolidated Balance Sheets. In June 2016, the FASB issued its final standard on measurement of credit losses on financial instruments. This standard, issued as ASU 2016-13, requires that an entity measure impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for financial statement periods beginning after December 15, 2018. The new standard is effective for the Company for its fiscal year 202 1 . The Company is currently evaluating this standard to determine the impact of adoption on its consolidated financial statements. In January 2017, the FASB issued its final standard on simplifying the test for goodwill impairment , ASU 2017-04, Intangibles – Goodwill and Other (Topic 350). This standard will require an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This update is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The new standard is effective for the Company for its fiscal year 202 1 . Upon adoption, the Company will apply this guidance prospectively to its annual and interim goodwill impairment tests and disclose the change in accounting principle. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of change in each caption of stockholders’ equity presented in the consolidated balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The final rules are effective for all filings made on or after November 5, 2018, with the option for the filer’s first presentation of the changes in shareholders’ equity to be included in its Form 10-Q for the quarter that begins after the effective date of the amendments. The Company anticipates its first presentation of the expanded disclosure requirements of the changes in stockholders’ equity to be in its Form 10-Q for the second quarter of fiscal year 2019. Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to be significant to the Company’s financial position, results of operations or cash flows. Reclassification Certain of the prior period Cash Flows from Financing Activities line items were reclassified into “Other, Net” within our condensed consolidated statements of cash flows to conform to our current period presentation. These reclassifications did not affect the total amount of Cash Flows from Financing Activities. |
Revenue
Revenue | 3 Months Ended |
Dec. 01, 2018 | |
Revenue [Abstract] | |
Revenue | Note 2. Revenue Revenue Recognition Net sales include product revenue and shipping and handling charges, net of estimated sales returns and any related sales incentives. Revenue is measured a s the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies its performance obligations under the contract, and invoicing occurs at approximately the same point in time. The Company recognizes revenue once the customer obtains control of the products. The Company’s product sales have standard payment terms that do not exceed one year. The Company considers shipping and handling as activities to fulfill its performance obligation. The Company’s contracts have a single performance obligation , to deliver products, and are short- term in nature. The Company estimates product returns based on historical return rates. Total accrued sales returns were approximately $4,838 and $4,832 as of December 1, 2018 and September 1, 2018, respectivel y, and are reported as Accrued l iabilities in the Consolidated Balance Sheets. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Consideration Payable to a Customer The Company offers customers sales incentives, which primarily consist of volume rebates, and upfront sign-on payments. These volume rebates and payments are not in exchange for a distinct good or service and result in a reduction of net sales from the goods transferred to the customer at the later of when the related revenue is recognized or when the Company promises to pay the consideration. The Company estimates its volume rebate accruals and records its sign-on payments based on various factors, including contract terms, historical experience, and performance levels. Total accrued sales incentives, primarily related to volume rebates, were approximately $15,166 and $14,000 as of December 1, 2018 and September 1, 2018, respectively, and are included in Accrued l iabilities in the Consolidated Balance Sheets. Sign-on payments, not yet recognized as a reduction of revenue, are recorded in Prepaid expenses and other current assets in the Consolidated Balance Sheets, and w ere approximately $2,899 and $2,457 as of December 1, 2018 and September 1, 2018, respectively. Contract Assets and Liabilities The Company records a contract asset when it has a right to payment from a customer that is conditioned on events other than the passage of time. The Company records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did no t have material unsatisfied performance obligations, contract assets or liabilities as of December 1, 2018 and September 1, 2018 . Disaggregation of Revenue The Company operates in one operating and reportable segment as a distributor of metalworking and maintenance, repair, and operations (“ MRO ”) products and services . The Company serves a large number of customers in diverse industries, which are subject to different economic and industry factors. The Company's presentation of net sales by customer end-market most reasonably depicts how the nature, amount, timing, and uncertainty of Company revenue and cash flows are affected by economic and industry factors. The Company does not disclose net sales information by product category as it is impracticable to do so as a result of its numerous product offerings and the way its business is managed. The following table presents the Company's percentage of net sales by customer end- market for the thirteen -week period ended December 1, 2018: Thirteen Weeks Ended December 1, 2018 Manufacturing Heavy 49 % Manufacturing Light 22 % Government 8 % Retail/Wholesale 5 % Commercial Services 4 % Other (1) 12 % Total net sales 100 % __________________________ (1) The other category primarily includes individual customer and small business net sales not assigned to a specific industry classification. The Company’s net sales originating from the following geographic areas were as follows for the thirteen-week period ended December 1, 2018: Thirteen Weeks Ended December 1, 2018 United States $ 806,075 97 % UK 15,205 2 % Canada 10,317 1 % Total net sales $ 831,597 100 % |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Dec. 01, 2018 | |
Net Income Per Share [Abstract] | |
Net Income Per Share | Note 3 . 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 1, 2018 and December 2, 2017 , respectively: Thirteen Weeks Ended December 1, December 2, 2018 2017 Net income as reported $ 74,232 $ 59,585 Less: Distributed net income available to participating securities (20) (34) Less: Undistributed net income available to participating securities (33) (69) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 74,179 $ 59,482 Add: Undistributed net income allocated to participating securities 33 69 Less: Undistributed net income reallocated to participating securities (33) (69) Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 74,179 $ 59,482 Denominator: Weighted average shares outstanding for basic net income per share 55,502 56,287 Effect of dilutive securities 329 217 Weighted average shares outstanding for diluted net income per share 55,831 56,504 Net income per share t wo-class method: Basic $ 1.34 $ 1.06 Diluted $ 1.33 $ 1.05 Potentially dilutive securities 408 957 Potentially dilutive securities attributable to outstanding stock options and restricted stock units are excluded from the calculation of diluted earnings per share where the combined exercise price and average unamortized fair value are greater than the average market price of MSC common stock, and therefore their inclusion would be anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 01, 2018 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 4 . Stock-Based Compensation The Company accounts for all share-based payments in accordance with ASC Topic 718, “ Compensation —Stock Compensation” . S tock ‑based compensation expense included in operating expenses for the thirteen-week periods ended December 1, 2018 and December 2, 2017 was as follows: Thirteen Weeks Ended December 1, December 2, 2018 2017 Stock options $ 1,205 $ 1,194 Restricted share awards 532 902 Restricted stock units 2,365 1,754 Associate Stock Purchase Plan 72 44 Total 4,174 3,894 Deferred income tax benefit (1,048) (1,480) Stock-based compensation expense, net $ 3,126 $ 2,414 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 1, December 2, 2018 2017 Expected life (in years) 4.0 4.0 Risk-free interest rate 2.98 % 1.87 % Expected volatility 23.13 % 22.13 % Expected dividend yield 2.70 % 2.30 % Weighted-average grant-date fair value $14.05 $12.25 A summary of the Company’s stock option activity for the thirteen-week period ended December 1, 2018 is as follows: Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding on September 1, 2018 1,760 $ 72.96 Granted 398 83.21 Exercised (118) 79.27 Canceled/Forfeited (2) 79.35 Outstanding on December 1, 2018 2,038 $ 74.59 4.8 $ 28,534 Exercisable on December 1, 2018 973 $ 72.33 3.7 $ 15,819 The unrecognized share ‑based compensation cost related to stock option expense at December 1, 2018 was $11,887 and will be recognized over a weighted average period of 2.8 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 1, 2018 and December 2, 2017 was $618 and $577 , 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 1, 2018 is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested restricted share awards at September 1, 2018 63 $ 81.98 Granted — — Vested (38) 82.44 Canceled/Forfeited — — Non-vested restricted share awards at December 1, 2018 25 $ 81.27 The fair value of each RSA is the closing stock price on the NYSE 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 share-based compensation cost related to RSAs at December 1, 2018 was $1,364 and will be recognized over a weighted average period of 1.0 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 1, 2018 is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested restricted stock unit awards at September 1, 2018 377 $ 73.18 Granted 151 83.21 Vested (87) 69.66 Canceled/Forfeited (5) 76.40 Non-vested restricted stock unit awards at December 1, 2018 436 $ 77.31 The fair value of each RSU is the closing stock price on the N YSE 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 share-based compensation cost related to the RSUs at December 1, 2018 was $30,924 and is expected to be recognized over a weighted average period of 3.6 years. |
Fair Value
Fair Value | 3 Months Ended |
Dec. 01, 2018 | |
Fair Value [Abstract] | |
Fair Value | Note 5 . 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 (“CFC”) 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 CFC. The bonds ( $27,025 outstanding at both December 1, 2018 and September 1, 2018 ) 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 - week period ended December 1, 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 a s of December 1, 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 December 1, 2018 and September 1, 2018 due to the short-term maturity of these items. During the thirteen weeks ended December 1, 2018 and December 2, 2017 , the Company had no remeasurement s 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. 01, 2018 | |
Debt And Capital Lease Obligations [Abstract] | |
Debt And Capital Lease Obligations | Note 6. Debt and Capital Lease Obligations Debt at December 1, 2018 and September 1, 2018 consisted of the following: December 1, September 1, 2018 2018 (Dollars in thousands) Revolving Credit Facilities Committed bank facility $ - $ 224,000 Uncommitted bank facilities 210,000 - Private Placement Debt: Senior notes, series A 75,000 75,000 Senior notes, series B 100,000 100,000 Senior Notes 20,000 20,000 Shelf Facility Agreements: 90,000 90,000 Capital lease and financing obligations 29,122 27,926 Less: unamortized debt issuance costs (1,487) (1,593) Total debt $ 522,635 $ 535,333 Less: short-term debt (1) (210,979) (224,097) Long-term debt $ 311,656 $ 311,236 __________________________ (1) Net of unamortized debt issuance costs expected to be amortized in the next twelve months. Revolving Credit Facilities In April 2017, the Company entered into a $600,000 committed credit facility (the “Committed Facility”). The Committed Facility, which matures on April 14, 2022 , provides for a five -year unsecured revolving loan facility. The Committed Facility permits up to $50,000 to be used to fund letters of credit. The Committed 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. The interest rate is based on either LIBOR or a base rate, plus in either case a spread based on our leverage ratio at the end of each fiscal reporting quarter. Based on the interest period the Company selects, interest may be 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 Committed Facility bear interest based on LIBOR with one -month interest periods. During the thirteen-week period ended December 1, 2018, the Company entered into six unsecured credit facilities that are uncommitted (the “Uncommitted Facilities”), totaling $440,000 of maximum uncommitted availability. Borrowings under the Uncommitted Facilities are generally due at the end of the applicable agreed interest period, but, in any event, no late r than the one- year anniversary of the entrance into the applicable Uncommitted Facility. The Uncommitted Facilities contain limited covenants. An event of default under the Company’s Committed Facility is an event of default under the Uncommitted Facilities. The interest rate on the Uncommitted Facilities is based on LIBOR or the bank’s cost of funds or as otherwise agreed upon by the applicable bank and the Company. The $210,000 outstanding at the end of our fiscal first quarter of 2019 under the Uncommitted Facilities are classified as short-term in our Condensed Consolidated Balance Sheets. Durin g the thirteen-week period ended December 1, 2018 , the Company borrowed $245,000 and repaid $259,000 under its revolving credit facilities . As of December 1 , 2018 and September 1, 2018, the weighted average interest rate s on borrowings under all its revolving credit facilities were 3.16% and 3.20% , respectively. Private Placement Debt In July 2016, the Company completed the issuance and sale of $75,000 aggregate principal amount of 2.65% Senior Notes, Series A, due July 28, 2023 and $100,000 aggregate principal amount of 2.90% Senior Notes, Series B, due July 28, 2026 ; and in J une 2018, the Company complete d the issuance and sale of $20,000 aggregate principal amount of 3.79% Senior Notes, due June 11, 2025 (collectively “Private Placement Debt”). 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. In June 2018, the Company completed the issuance and sale of $20,000 aggregate principal amount of 3.22% Series 2018A Notes, due June 11, 2020 and $20,000 aggregate principal amount of 3.42% Series 2018B Notes, due June 11, 2021 . Interest is payable semiannually at the fixed stated interest rates. As of December 1, 2018, the uncommitted availability under the Met Life Note Purchase Agreement is $210,000 . 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% Senior Notes due January 12, 2023 . Interest is payable semiannually. As of December 1, 2018, the uncommitted availability under the Prudential Note Purchase Agreement is $200,000 . Each of the credit facilities , Private Placement Debt, and Shelf Facility Agreements impose 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 facilities , Private Placement Debt and Shelf Facility Agreements. At December 1, 2018 , the Company was in compliance with the operating and financial covenants of the credit facilities , Private Placement Debt, and Shelf Facility Agreements. Capital Lease and Financing Obligations In connection with the construction of the Company’s CFC in Columbus, Ohio in fiscal 2013, 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 1, 2018 and September 1, 2018 , 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 information technology equipment or software. The equipment or software acquired from these vendors is paid for o ver a specified period of time based on the terms agreed upon. During the thirteen-week period ended December 1, 2018, the Company entered into capital lease and financing obligations related to certain IT equipment and software totaling $1,345 . The gross amount of property and equipment acquired under the capital lease obligation at December 1, 2018 was approximately $442 . There is no related accumulated amortization for this capital lease as of December 1, 2018. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 01, 2018 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 7 . Shareholders’ Equity The Company paid cash dividends of $0.63 per common share totaling $34,858 for the thirteen weeks ended December 1, 2018. For the thirteen weeks ended December 2, 2017, the Company paid cash dividends of $0.48 per common share totaling $27,087 . On December 18, 2018 , the Board of Directors declared a quarterly cash dividend of $0.63 per share payable on January 22, 2019 to shareholders of record at the close of business on January 8, 2019 . The dividend will result in a payout of approximately $ 34,849 , based on the number of shares outstanding at December 18, 2018. During the thirteen -week period ended December 1, 2018 , the Company repurchased 778 shares of its Class A common stock for $63,527 , which is reflected at cost as treasury stock in the accompanying condensed consolidated financial statements. Of these shares, 40 shares were repurchased by the Company to satisfy the Company’s associates’ tax withholding liability associated with its share-based compensation program. In July 2018, the Company announced that in connection with its existing share repurchase authorization (the “Repurchase Plan”), the Company had entered into a stock purchase agreement with the holders of the Company’s Class B common stock to purchase a pro rata number of shares, such that their aggregate percentage ownership in the Company would remain substantially the same. For the thirteen weeks ended December 1, 2018, the Company purchased 238 shares of its Class A common stock from certain of its Class B shareholders at a weighted average purchase price of $82.71 per share. This figure is included in the totals provided in the previous paragraph. All of these shares were immediately retired. Shares of the Company’s common stock purchased pursuant to the stock purchase agreement, as well as shares purchased to satisfy the Company’s associates’ tax withholding liability associated with its share-based compensation program, did not reduce the number of shares th at may be repurchased under the Repurchase Plan. The total number of shares of Class A common stock authorized for future repurchase was approximately 1,430 shares at December 1, 2018 . The Company reissued 13 shares of treasury stock during the thirteen-week period ended December 1, 2018 to fund the Associate Stock Purchase Plan. |
Product Warranties
Product Warranties | 3 Months Ended |
Dec. 01, 2018 | |
Product Warranties [Abstract] | |
Product Warranties | Note 8 . 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 1, 2018 and December 2, 2017 was minimal. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 01, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | Note 9 . Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was enacted. The TCJA 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 has a fiscal August year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory rate of 25.6% 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 TCJA and adjust those amounts during a measurement period not to extend beyond one year. The Company recorded a net tax benefit of $40,464 due to the revaluation 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 fiscal 2018. The amounts recorded were provisional and are subject to change due to further interpretations of the TCJA, legislative action to address questions that arise because of the TCJA, 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 TCJA. The Company does not anticipate a significant impact to the provisional amounts recorded. During the thirteen -week period ended December 1, 2018 , there were no material changes in unrecognized tax benefits. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Dec. 01, 2018 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | Note 10 . 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. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Dec. 01, 2018 | |
Subsequent Event [Abstract] | |
Subsequent Event | Note 11 . Subsequent Event The Company repurchased approximately 273 shares of its common stock for a total cost of approximately $20,773 during the period December 18, 2018 through January 3, 2019. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 01, 2018 | |
Revenue [Abstract] | |
Schedule Of Disaggregation Of Revenue | Thirteen Weeks Ended December 1, 2018 Manufacturing Heavy 49 % Manufacturing Light 22 % Government 8 % Retail/Wholesale 5 % Commercial Services 4 % Other (1) 12 % Total net sales 100 % __________________________ (1) The other category primarily includes individual customer and small business net sales not assigned to a specific industry classification. The Company’s net sales originating from the following geographic areas were as follows for the thirteen-week period ended December 1, 2018: Thirteen Weeks Ended December 1, 2018 United States $ 806,075 97 % UK 15,205 2 % Canada 10,317 1 % Total net sales $ 831,597 100 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Dec. 01, 2018 | |
Net Income Per Share [Abstract] | |
Basic And Diluted Net Income Per Common Share Under The Two-Class Method | Thirteen Weeks Ended December 1, December 2, 2018 2017 Net income as reported $ 74,232 $ 59,585 Less: Distributed net income available to participating securities (20) (34) Less: Undistributed net income available to participating securities (33) (69) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 74,179 $ 59,482 Add: Undistributed net income allocated to participating securities 33 69 Less: Undistributed net income reallocated to participating securities (33) (69) Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 74,179 $ 59,482 Denominator: Weighted average shares outstanding for basic net income per share 55,502 56,287 Effect of dilutive securities 329 217 Weighted average shares outstanding for diluted net income per share 55,831 56,504 Net income per share t wo-class method: Basic $ 1.34 $ 1.06 Diluted $ 1.33 $ 1.05 Potentially dilutive securities 408 957 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Stock-Based Compensation Expense | Thirteen Weeks Ended December 1, December 2, 2018 2017 Stock options $ 1,205 $ 1,194 Restricted share awards 532 902 Restricted stock units 2,365 1,754 Associate Stock Purchase Plan 72 44 Total 4,174 3,894 Deferred income tax benefit (1,048) (1,480) Stock-based compensation expense, net $ 3,126 $ 2,414 |
Schedule Of Option Grant Fair Value Assumptions | Thirteen Weeks Ended December 1, December 2, 2018 2017 Expected life (in years) 4.0 4.0 Risk-free interest rate 2.98 % 1.87 % Expected volatility 23.13 % 22.13 % Expected dividend yield 2.70 % 2.30 % Weighted-average grant-date fair value $14.05 $12.25 |
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 1, 2018 1,760 $ 72.96 Granted 398 83.21 Exercised (118) 79.27 Canceled/Forfeited (2) 79.35 Outstanding on December 1, 2018 2,038 $ 74.59 4.8 $ 28,534 Exercisable on December 1, 2018 973 $ 72.33 3.7 $ 15,819 |
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 1, 2018 63 $ 81.98 Granted — — Vested (38) 82.44 Canceled/Forfeited — — Non-vested restricted share awards at December 1, 2018 25 $ 81.27 |
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 1, 2018 377 $ 73.18 Granted 151 83.21 Vested (87) 69.66 Canceled/Forfeited (5) 76.40 Non-vested restricted stock unit awards at December 1, 2018 436 $ 77.31 |
Debt And Capital Lease Obliga_2
Debt And Capital Lease Obligations (Tables) | 3 Months Ended |
Dec. 01, 2018 | |
Debt And Capital Lease Obligations [Abstract] | |
Schedule Of Debt | December 1, September 1, 2018 2018 (Dollars in thousands) Revolving Credit Facilities Committed bank facility $ - $ 224,000 Uncommitted bank facilities 210,000 - Private Placement Debt: Senior notes, series A 75,000 75,000 Senior notes, series B 100,000 100,000 Senior Notes 20,000 20,000 Shelf Facility Agreements: 90,000 90,000 Capital lease and financing obligations 29,122 27,926 Less: unamortized debt issuance costs (1,487) (1,593) Total debt $ 522,635 $ 535,333 Less: short-term debt (1) (210,979) (224,097) Long-term debt $ 311,656 $ 311,236 __________________________ (1) Net of unamortized debt issuance costs expected to be amortized in the next twelve months. |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Dec. 01, 2018USD ($)segment | Sep. 01, 2018USD ($) | |
Accrued sales returns | $ 4,838,000 | $ 4,832,000 |
Performance obligation | 0 | 0 |
Accrued sales incentives | 15,166,000 | 14,000,000 |
Prepaid sales incentives | 2,899,000 | 2,457,000 |
Contract assets | 0 | 0 |
Contract liabilities | $ 0 | $ 0 |
Number of operating segments | segment | 1 | |
Number of reportable segments | segment | 1 | |
Maximum [Member] | ||
Payment term | 1 year |
Revenue (Schedule Of Disaggrega
Revenue (Schedule Of Disaggregation Of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 01, 2018 | Dec. 02, 2017 | ||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 831,597 | $ 768,561 | |
Manufacturing Heavy [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 49.00% | ||
Manufacturing Light [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 22.00% | ||
Government [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 8.00% | ||
Retail/Wholesale [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 5.00% | ||
Commercial Services [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 4.00% | ||
Other Customers [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | [1] | 12.00% | |
UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 806,075 | ||
UNITED STATES | Net Sales [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 97.00% | ||
UNITED KINGDOM | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 15,205 | ||
UNITED KINGDOM | Net Sales [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 2.00% | ||
CANADA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 10,317 | ||
CANADA | Net Sales [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 1.00% | ||
[1] | __________________________The other category primarily includes individual customer and small business net sales not assigned to a specific industry classification. |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 01, 2018 | Dec. 02, 2017 | |
Net Income Per Share [Abstract] | ||
Net income as reported | $ 74,232 | $ 59,585 |
Less: Distributed net income available to participating securities | (20) | (34) |
Less: Undistributed net income available to participating securities | (33) | (69) |
Undistributed and distributed net income available to common shareholders | 74,179 | 59,482 |
Add: Undistributed net income allocated to participating securities | 33 | 69 |
Less: Undistributed net income reallocated to participating securities | (33) | (69) |
Undistributed and distributed net income available to common shareholders | $ 74,179 | $ 59,482 |
Weighted average shares outstanding for basic net income per share | 55,502 | 56,287 |
Effect of dilutive securities | 329 | 217 |
Weighted average shares outstanding for diluted net income per share | 55,831 | 56,504 |
Basic | $ 1.34 | $ 1.06 |
Diluted | $ 1.33 | $ 1.05 |
Potentially dilutive securities | 408 | 957 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 01, 2018 | Dec. 02, 2017 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 11,887 | |
Unrecognized share-based compensation weighted average period | 2 years 9 months 18 days | |
Total intrinsic value of options exercised | $ 618 | $ 577 |
Restricted Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 1,364 | |
Unrecognized share-based compensation weighted average period | 1 year | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 30,924 | |
Unrecognized share-based compensation weighted average period | 3 years 7 months 6 days |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 01, 2018 | Dec. 02, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 4,174 | $ 3,894 |
Deferred income tax benefit | (1,048) | (1,480) |
Stock-based compensation expense, net | 3,126 | 2,414 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 1,205 | 1,194 |
Restricted Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 532 | 902 |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 2,365 | 1,754 |
Associate Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 72 | $ 44 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule Of Option Grant Fair Value Assumptions) (Details) - $ / shares | 3 Months Ended | |
Dec. 01, 2018 | Dec. 02, 2017 | |
Stock-Based Compensation [Abstract] | ||
Expected life (in years) | 4 years | 4 years |
Risk-free interest rate | 2.98% | 1.87% |
Expected volatility | 23.13% | 22.13% |
Expected dividend yield | 2.70% | 2.30% |
Weighted-average grant-date fair value | $ 14.05 | $ 12.25 |
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. 01, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Beginning Balance, Options | shares | 1,760 |
Granted, Options | shares | 398 |
Exercised, Options | shares | (118) |
Canceled/Forfeited, Options | shares | (2) |
Outstanding, Ending Balance, Options | shares | 2,038 |
Exercisable, Ending Balance, Options | shares | 973 |
Outstanding, Beginning Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 72.96 |
Granted, Weighted-Average Exercise Price per Share | $ / shares | 83.21 |
Exercised, Weighted-Average Exercise Price per Share | $ / shares | 79.27 |
Canceled/Forfeited, Weighted-Average Exercise Price per Share | $ / shares | 79.35 |
Outstanding, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | 74.59 |
Exercisable, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 72.33 |
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 8 months 12 days |
Outstanding, Ending Balance, Aggregate Intrinsic Value | $ | $ 28,534 |
Exercisable, Ending Balance, Aggregate Intrinsic Value | $ | $ 15,819 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Non-Vested Restricted Share Award Activity) (Details) shares in Thousands | 3 Months Ended |
Dec. 01, 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 | 63 |
Vested, Shares | shares | (38) |
Non-vested restricted share awards, Ending balance, Shares | shares | 25 |
Non-vested restricted share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 81.98 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 82.44 |
Non-vested restricted share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 81.27 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested restricted share awards, Beginning balance, Shares | shares | 377 |
Granted, Shares | shares | 151 |
Vested, Shares | shares | (87) |
Canceled/Forfeited, Shares | shares | (5) |
Non-vested restricted share awards, Ending balance, Shares | shares | 436 |
Non-vested restricted share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 73.18 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 83.21 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 69.66 |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 76.40 |
Non-vested restricted share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 77.31 |
Fair Value (Details)
Fair Value (Details) - USD ($) | 3 Months Ended | ||
Dec. 01, 2018 | Dec. 02, 2017 | Sep. 01, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Taxable bonds | $ 27,025,000 | $ 27,025,000 | |
Gains and losses on securities | 0 | $ 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 Obliga_3
Debt And Capital Lease Obligations (Credit Facility) (Narrative) (Details) | 3 Months Ended | ||
Dec. 01, 2018USD ($)agreement | Dec. 02, 2017USD ($) | Sep. 01, 2018USD ($) | |
Debt Instrument [Line Items] | |||
Borrowing rate under Credit Facility | 3.16% | 3.20% | |
Borrowings under the revolving credit facilities | $ 245,000,000 | $ 24,000,000 | |
Repayments of debt | 259,000,000 | $ 65,000,000 | |
Committed Bank 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 | ||
Outstanding balance | $ 224,000,000 | ||
Uncommitted Bank Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Number of credit facilities | agreement | 6 | ||
Credit facility, maximum borrowing capacity | $ 440,000,000 | ||
Outstanding balance | 210,000,000 | ||
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 50,000,000 |
Debt And Capital Lease Obliga_4
Debt And Capital Lease Obligations (Private Placement Debt) (Narrative) (Details) - Private Placement Debt [Member] - USD ($) | 3 Months Ended | |
Dec. 01, 2018 | Sep. 01, 2018 | |
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 | |
Senior Notes Due June 11, 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 20,000,000 | $ 20,000,000 |
Interest rate | 3.79% | |
Maturity date | Jun. 11, 2025 |
Debt And Capital Lease Obliga_5
Debt And Capital Lease Obligations (Shelf Facility Agreements) (Narrative) (Details) | 3 Months Ended |
Dec. 01, 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 |
Remaining borrowing capacity | 210,000,000 |
Met Life Note Purchase Agreement [Member] | Series 2018A Notes [Member] | |
Line of Credit Facility [Line Items] | |
Principal amount | $ 20,000,000 |
Interest rate | 3.22% |
Met Life Note Purchase Agreement [Member] | Series 2018B Notes [Member] | |
Line of Credit Facility [Line Items] | |
Principal amount | $ 20,000,000 |
Interest rate | 3.42% |
Prudential Note Purchase 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] | Prudential Note Purchase Agreement [Member] | |
Line of Credit Facility [Line Items] | |
Principal amount | $ 50,000,000 |
Interest rate | 3.04% |
Debt And Capital Lease Obliga_6
Debt And Capital Lease Obligations (Capital Lease And Financing Obligations) (Narrative) (Details) - USD ($) | 3 Months Ended | |
Dec. 01, 2018 | Sep. 01, 2018 | |
Capital Leased Assets [Line Items] | ||
Amount due under capital leases and financing agreements | $ 29,122,000 | $ 27,926,000 |
Non-cash financing activity related to the capital lease | 1,345,000 | |
Property and equipment acquired under capital leases and financing agreements | 442,000 | |
Amortization of capital leases | $ 0 | |
Fulfillment Center [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital lease term | 20 years | |
Amount due under capital leases and financing agreements | $ 27,025,000 | $ 27,025,000 |
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 Obliga_7
Debt And Capital Lease Obligations (Schedule Of Debt) (Details) - USD ($) | Dec. 01, 2018 | Sep. 01, 2018 | |
Debt Instrument [Line Items] | |||
Capital lease and financing obligations | $ 29,122,000 | $ 27,926,000 | |
Less: unamortized debt issuance costs | (1,487,000) | (1,593,000) | |
Total debt | 522,635,000 | 535,333,000 | |
Less: short-term debt | [1] | (210,979,000) | (224,097,000) |
Long-term debt | 311,656,000 | 311,236,000 | |
Committed Bank Facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 224,000,000 | ||
Uncommitted Bank Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 210,000,000 | ||
Senior Notes Series A [Member] | Private Placement Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | 75,000,000 | 75,000,000 | |
Senior Notes Series B [Member] | Private Placement Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | 100,000,000 | 100,000,000 | |
Senior Notes Due June 11, 2025 [Member] | Private Placement Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | 20,000,000 | 20,000,000 | |
Prudential Note Purchase Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Shelf Facility | $ 90,000,000 | $ 90,000,000 | |
[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, shares in Thousands, $ in Thousands | Dec. 18, 2018 | Jan. 03, 2019 | Dec. 01, 2018 | Sep. 01, 2018 | Dec. 02, 2017 |
Components Of Shareholders Equity [Line Items] | |||||
Cash dividends paid per common share | $ 0.63 | $ 0.48 | |||
Cash dividends paid | $ 34,858 | $ 27,087 | |||
Repurchase and retirement of common stock, Shares | 238 | ||||
Purchase of treasury stock | $ 3,200 | ||||
Cost of repurchase, per share | $ 82.71 | ||||
Shares repurchased by the company for associates' tax withholding liability associated with share-based compensation | 40 | ||||
Maximum number of shares that can be repurchased | 1,430 | ||||
Treasury stock reissued to fund plan. shares | 13 | ||||
Subsequent Event [Member] | |||||
Components Of Shareholders Equity [Line Items] | |||||
Dividends declared date | Dec. 18, 2018 | ||||
Dividends payable per share | $ 0.63 | ||||
Dividend payable date | Jan. 22, 2019 | ||||
Dividends record date | Jan. 8, 2019 | ||||
Dividend payable amount | $ 34,849 | ||||
Common stock shares repurchased | 273 | ||||
Purchase of treasury stock | $ 20,773 | ||||
Class A Common Stock [Member] | |||||
Components Of Shareholders Equity [Line Items] | |||||
Repurchase and retirement of common stock, Shares | 738 | ||||
Class A Treasury Stock [Member] | |||||
Components Of Shareholders Equity [Line Items] | |||||
Common stock shares repurchased | 40 | ||||
Purchase of treasury stock | $ 3,200 | ||||
Treasury stock repurchased, and treasury stock repurchased and retired, shares | 778 | ||||
Treasury stock repurchased, and treasury stock repurchased and retired, amount | $ 63,527 |
Product Warranties (Details)
Product Warranties (Details) | 3 Months Ended |
Dec. 01, 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 ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 01, 2018 | Dec. 31, 2018 | Sep. 01, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | ||||
U.S. federal statutory rate | 21.00% | 35.00% | ||
Effective tax rate | 25.60% | |||
Tax benefit from remeasurement of deferred tax items | $ 40,464,000 | |||
Changes in unrecognized tax benefits | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended |
Jan. 03, 2019 | Dec. 01, 2018 | |
Subsequent Event [Line Items] | ||
Purchase of treasury stock | $ 3,200 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Purchase of treasury stock, Shares | 273 | |
Purchase of treasury stock | $ 20,773 |