Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 01, 2019 | Jun. 19, 2019 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 1, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MSC INDUSTRIAL DIRECT CO INC | |
Entity Central Index Key | 0001003078 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 45,008,191 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 10,193,348 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 01, 2019 | Sep. 01, 2018 | |
Current Assets: | |||
Cash and cash equivalents | $ 38,771 | $ 46,217 | |
Accounts receivable, net of allowance for doubtful accounts of $17,945 and $12,992, respectively | 546,486 | 523,892 | |
Inventories | 560,800 | 518,496 | |
Prepaid expenses and other current assets | 69,715 | 58,902 | |
Total current assets | 1,215,772 | 1,147,507 | |
Property, plant and equipment, net | 306,564 | 311,685 | |
Goodwill | 676,845 | 674,998 | |
Identifiable intangibles, net | 119,778 | 122,724 | |
Other assets | 5,389 | 31,813 | |
Total assets | 2,324,348 | 2,288,727 | |
Current Liabilities: | |||
Short-term debt | [1] | 246,298 | 224,097 |
Accounts payable | 146,815 | 145,133 | |
Accrued liabilities | 92,955 | 121,293 | |
Total current liabilities | 486,068 | 490,523 | |
Long-term debt | 284,691 | 311,236 | |
Deferred income taxes and tax uncertainties | 99,714 | 99,714 | |
Total liabilities | 870,473 | 901,473 | |
Commitments and Contingencies | |||
MSC Industrial Shareholders’ Equity: | |||
Preferred stock; $0.001 par value; 5,000,000 shares authorized; none issued and outstanding | |||
Additional paid-in capital | 675,674 | 657,749 | |
Retained earnings | 1,394,551 | 1,325,822 | |
Accumulated other comprehensive loss | (22,730) | (19,634) | |
Class A treasury stock, at cost, 9,476,509 and 9,207,635 shares, respectively | (599,116) | (576,748) | |
Total MSC Industrial shareholders’ equity | 1,448,443 | 1,387,254 | |
Noncontrolling interest | 5,432 | ||
Total Equity | 1,453,875 | 1,387,254 | |
Total liabilities and shareholders' equity | 2,324,348 | 2,288,727 | |
Class A Common Stock [Member] | |||
MSC Industrial Shareholders’ Equity: | |||
Common stock | 54 | 55 | |
Class B Common Stock [Member] | |||
MSC Industrial 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 | 9 Months Ended | |
Jun. 01, 2019 | Sep. 01, 2018 | |
Accounts receivable, allowance for doubtful accounts | $ 17,945 | $ 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 | 9,476,509 | 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 | 54,484,700 | 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 | 9 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Condensed Consolidated Statements Of Income [Abstract] | ||||
Net sales | $ 866,546 | $ 828,345 | $ 2,521,147 | $ 2,365,893 |
Cost of goods sold | 497,891 | 467,344 | 1,442,693 | 1,332,600 |
Gross profit | 368,655 | 361,001 | 1,078,454 | 1,033,293 |
Operating expenses | 258,154 | 245,619 | 768,972 | 720,530 |
Income from operations | 110,501 | 115,382 | 309,482 | 312,763 |
Other (expense) income: | ||||
Interest expense | (4,565) | (3,532) | (13,160) | (10,319) |
Interest income | 178 | 108 | 504 | 484 |
Other (expense) income, net | (95) | (141) | (330) | (472) |
Total other expense | (4,482) | (3,565) | (12,986) | (10,307) |
Income before provision for income taxes | 106,019 | 111,817 | 296,496 | 302,456 |
Provision for income taxes | 26,505 | 32,748 | 74,320 | 46,250 |
Net income | 79,514 | 79,069 | 222,176 | 256,206 |
Less: Net income (loss) attributable to noncontrolling interest | (87) | (81) | ||
Net income attributable to MSC Industrial | $ 79,601 | $ 79,069 | $ 222,257 | $ 256,206 |
Net income per common share: | ||||
Basic | $ 1.44 | $ 1.40 | $ 4.02 | $ 4.54 |
Diluted | $ 1.44 | $ 1.39 | $ 4 | $ 4.51 |
Weighted average shares used in computing net income per common share: | ||||
Basic | 55,158 | 56,420 | 55,266 | 56,382 |
Diluted | 55,387 | 56,804 | 55,556 | 56,733 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | ||
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | |||||
Net income as reported | $ 79,514 | $ 79,069 | $ 222,176 | $ 256,206 | |
Other comprehensive income, net of tax: | |||||
Foreign currency translation adjustments | (2,576) | (889) | (3,242) | (1,705) | |
Comprehensive income | 76,938 | 78,180 | 218,934 | 254,501 | |
Comprehensive loss attributable to noncontrolling interest | 170 | 227 | |||
Comprehensive income attributable to MSC Industrial | [1] | $ 77,108 | $ 78,180 | $ 219,161 | $ 254,501 |
[1] | There were no material taxes associated with other comprehensive income during the thirteen and thirty-nine-week periods ending June 1, 2019 and June 2, 2018, respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Other comprehensive income, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Class A Common Stock [Member]Common Stock [Member] | Class A Common Stock [Member]Retained Earnings [Member] | Class A Common Stock [Member]Treasury Stock [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] | Treasury Stock [Member] | Total Shareholders' Equity Attributable to MSC Industrial [Member] | Noncontrolling Interest [Member] | Total |
Balance, Value at Sep. 02, 2017 | $ 54 | $ 12 | $ 626,995 | $ 1,168,812 | $ (17,263) | $ (553,470) | ||||||||
Exchange of Class B common stock for Class A common stock, value | 1 | (2) | ||||||||||||
Associate Incentive Plans | 36,404 | 1,624 | ||||||||||||
Repurchases of common stock, Value | $ (25,384) | |||||||||||||
Cash dividends on common stock | $ (74,285) | $ (18,348) | ||||||||||||
Dividend equivalents declared, net of cancellations | (597) | |||||||||||||
Foreign Currency Translation Adjustment | (1,705) | $ (1,705) | ||||||||||||
Net income | 256,206 | 256,206 | ||||||||||||
Balance, Value at Jun. 02, 2018 | 55 | 10 | 663,399 | 1,331,788 | (18,968) | (577,230) | $ 1,399,054 | 1,399,054 | ||||||
Dividends declared per common share | $ 1.64 | $ 1.64 | ||||||||||||
Balance, Value at Mar. 03, 2018 | 55 | 11 | 652,440 | 1,285,681 | (18,079) | (574,073) | ||||||||
Exchange of Class B common stock for Class A common stock, value | (1) | |||||||||||||
Associate Incentive Plans | 10,959 | 499 | ||||||||||||
Repurchases of common stock, Value | $ (3,656) | |||||||||||||
Cash dividends on common stock | (26,598) | (6,162) | ||||||||||||
Dividend equivalents declared, net of cancellations | (202) | |||||||||||||
Foreign Currency Translation Adjustment | (889) | (889) | ||||||||||||
Net income | 79,069 | 79,069 | ||||||||||||
Balance, Value at Jun. 02, 2018 | 55 | 10 | 663,399 | 1,331,788 | (18,968) | (577,230) | 1,399,054 | 1,399,054 | ||||||
Dividends declared per common share | 0.58 | 0.58 | ||||||||||||
Balance, Value at Sep. 01, 2018 | 55 | 10 | 657,749 | 1,325,822 | (19,634) | (576,748) | 1,387,254 | |||||||
Associate Incentive Plans | 29,812 | 1,769 | ||||||||||||
Repurchases of common stock, Shares | 316,000 | |||||||||||||
Repurchases of common stock, Value | $ (24,137) | |||||||||||||
Repurchase and retirement of common stock, Value | (1) | (11,887) | (48,439) | |||||||||||
Cash dividends on common stock | (85,042) | (19,266) | ||||||||||||
Dividend equivalents declared, net of cancellations | (781) | |||||||||||||
Issuance of Noncontrolling Interest in MSC Mexico | $ 4,637 | |||||||||||||
Capital Contributions | 1,022 | |||||||||||||
Foreign Currency Translation Adjustment | (3,096) | (146) | (3,242) | |||||||||||
Net income | 222,257 | (81) | 222,176 | |||||||||||
Balance, Value at Jun. 01, 2019 | 54 | 10 | 675,674 | 1,394,551 | (22,730) | (599,116) | 1,448,443 | 5,432 | 1,453,875 | |||||
Dividends declared per common share | 1.89 | 1.89 | ||||||||||||
Balance, Value at Mar. 02, 2019 | 54 | 10 | 670,047 | 1,349,972 | (20,237) | (599,603) | 5,602 | |||||||
Associate Incentive Plans | 5,627 | 526 | ||||||||||||
Repurchases of common stock, Shares | 500 | |||||||||||||
Repurchases of common stock, Value | $ (39) | |||||||||||||
Cash dividends on common stock | $ (28,335) | $ (6,422) | ||||||||||||
Dividend equivalents declared, net of cancellations | (265) | |||||||||||||
Foreign Currency Translation Adjustment | (2,493) | (83) | (2,576) | |||||||||||
Net income | 79,601 | (87) | 79,514 | |||||||||||
Balance, Value at Jun. 01, 2019 | $ 54 | $ 10 | $ 675,674 | $ 1,394,551 | $ (22,730) | $ (599,116) | $ 1,448,443 | $ 5,432 | $ 1,453,875 | |||||
Dividends declared per common share | $ 0.63 | $ 0.63 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 01, 2019 | Jun. 02, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 222,176 | $ 256,206 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 48,539 | 47,133 |
Stock-based compensation | 12,167 | 11,275 |
Loss on disposal of property, plant, and equipment | 325 | 280 |
Provision for doubtful accounts | 9,013 | 4,956 |
Deferred income taxes and tax uncertainties | (41,199) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (30,180) | (34,434) |
Inventories | (33,672) | (26,740) |
Prepaid expenses and other current assets | (10,841) | 1,005 |
Other assets | (609) | 3,191 |
Accounts payable and accrued liabilities | (29,718) | 8,564 |
Total adjustments | (34,976) | (25,969) |
Net cash provided by operating activities | 187,200 | 230,237 |
Cash Flows from Investing Activities: | ||
Expenditures for property, plant and equipment | (35,956) | (30,794) |
Proceeds from sale of available for sale securities | 27,025 | |
Cash used in business acquisitions, net of cash received | (11,625) | (85,845) |
Net cash used in investing activities | (20,556) | (116,639) |
Cash Flows from Financing Activities: | ||
Repurchases of common stock | (84,464) | (25,384) |
Payments of cash dividends | (104,308) | (92,633) |
Proceeds from sale of Class A common stock in connection with associate stock purchase plan | 3,472 | 3,398 |
Proceeds from exercise of Class A common stock options | 15,527 | 23,135 |
Borrowings under Shelf Facility Agreement | 50,000 | |
Borrowings under the revolving credit facilities | 358,000 | 172,000 |
Payments under the revolving credit facilities | (336,000) | (220,000) |
Contributions from noncontrolling interest | 918 | |
Payments on capital lease and financing obligations | (28,007) | (829) |
Other, net | 903 | 604 |
Net cash used in financing activities | (173,959) | (89,709) |
Effect of foreign exchange rate changes on cash and cash equivalents | (131) | 21 |
Net increase (decrease) in cash and cash equivalents | (7,446) | 23,910 |
Cash and cash equivalents—beginning of period | 46,217 | 16,083 |
Cash and cash equivalents—end of period | 38,771 | 39,993 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes | 69,413 | 76,753 |
Cash paid for interest | $ 10,791 | $ 8,231 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Jun. 01, 2019 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | Note 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by the management of MSC Industrial Direct Co., Inc. (together with its wholly owned subsidiaries and entities in which it maintains a controlling financial interest, the “Company”) and in the opinion of management include all normal recurring material adjustments necessary to present fairly the Company’s financial position as of June 1, 2019 and June 2, 2018, the results of operations for the thirteen and thirty-nine weeks ended June 1, 2019 and June 2, 2018, and cash flows for the thirty-nine weeks ended June 1, 2019 and June 2, 2018. The September 1, 2018 financial information was derived from the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 1, 2018. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. The Company, however, believes that the disclosures contained in this report comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934 for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the 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. Principles of Consolidation The condensed consolidated financial statements include the accounts of MSC Industrial Direct Co., Inc., its wholly owned subsidiaries and entities in which it maintains a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. 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 contrac ts with customers and supersede prior revenue recognition guidance, including industry-specific guidance. Revenue continues to be recognized when products are shipped to the customer and the customer obtains control of the products , and t he adoption of these ASUs, using the modified retrospective approach, had no impact on 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, Business Combinations (Topic 805), which clarifies the definition of a business to assist entities with evaluating when a set of transferred assets and activities is considered a business. Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , a comprehensive new standard that amends various aspects of existing accounting guidance for leases, including the recognition of a right-of-use asset and a lease liability in the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. During 2018, the FASB issued additional ASUs that address implementation issues and correct or improve certain aspects of the new accounting guidance for leases, including ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topic 842): Targeted Improvements . These ASUs do not change the core principles in the leas e accounting standard outlined above. The amendments in ASU 2018-11 provide an optional transition method that allows entities to initially apply the new lease accounting standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods will continue to be in accordance with current lease accounting guidance. Management established a cross-functional team to evaluate and implement the new standard. The team selected a third-party software solution to facilitate the accounting and financial reporting requirements of the new lease accounting standard. Lease data elements have been gathered and are currently being migrated to the software solution. The new standard will be adopted in the first quarter of fiscal 2020 and the Company expects to use the optional transition method. While the Company has not yet completed its evaluation of the effects of adopting this ASU, right-of-use assets and lease liabilities will be recorded in the Consolidated Balance Sheets as of the effective date and thereafter. In June 2016, the FASB issued its final standard on measurement of credit losses on financial instruments. This standard, issued as ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), 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 b eginning after December 15, 2019 . The new standard is effective for the Company for its fiscal year 202 1 . T he Co mpany is currently evaluating the standard and does not expect a significant impact to its co nsolidated 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 requires 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. 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 line items contained in the Condensed Consolidated Statements of Shareholders’ Equity were condensed to conform to our current period presentation. The Company combined the “Exercise of common stock options”, the “ Common stock issued under associate stock purchase plan”, the “Shares issued upon vesting of restricted stock units, including dividend equivalent units”, the “Stock-based compensation”, and the “Issuance of restricted common stock, net of cancellations” line items into a single line titled “Associate Incentive Plans”. These reclassifications did not affect the total amount of Shareholders’ Equity. |
Revenue
Revenue | 9 Months Ended |
Jun. 01, 2019 | |
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 as 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 $4,897 and $ 4,832 as of June 1, 2019 and September 1, 2018 , respectively, and are reported as Accrued liabilities in the Condensed Consolidated Balanc e 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 $13,840 and $14,000 as of June 1, 2019 and September 1, 2018 , respectively, and are included in Accrued liabilities in the Condensed 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 Condensed Consolidated Balance Sheets and were $2,698 and $2,457 as of June 1, 2019 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 June 1, 2019 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 and thirty-nine -week periods ended June 1, 2019 : Thirteen Weeks Ended Thirty-Nine Weeks Ended June 1, 2019 June 1, 2019 Manufacturing Heavy 47 % 48 % Manufacturing Light 22 % 22 % Government 7 % 8 % Retail/Wholesale 6 % 6 % Commercial Services 4 % 4 % Other (1) 14 % 12 % Total net sales 100 % 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 and thirty-nine -week periods ended June 1, 2019 : Thirteen Weeks Ended Thirty-Nine Weeks Ended June 1, 2019 June 1, 2019 United States $ 831,533 96 % $ 2,434,603 97 % UK 14,399 2 % 43,373 2 % Canada 10,747 1 % 30,363 1 % Mexico 9,867 1 % 12,808 < 1 % Total net sales $ 866,546 100 % $ 2,521,147 100 % |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Jun. 01, 2019 | |
Net Income Per Share [Abstract] | |
Net Income Per Share | Note 3 . Net Income per Share The Company’s non-vested restricted s hare 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 thirty-nine weeks ended June 1, 2019 and June 2, 2018 , respectively: Thirteen Weeks Ended Thirty-Nine Weeks Ended June 1, June 2, June 1, June 2, 2019 2018 2019 2018 Net income attributable to MSC Industrial as reported $ 79,601 $ 79,069 $ 222,257 $ 256,206 Less: Distributed net income available to participating securities (10) (14) (34) (73) Less: Undistributed net income available to participating securities (19) (56) (66) (248) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 79,572 $ 78,999 $ 222,157 $ 255,885 Add: Undistributed net income allocated to participating securities 19 56 66 248 Less: Undistributed net income reallocated to participating securities (19) (55) (66) (247) Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 79,572 $ 79,000 $ 222,157 $ 255,886 Denominator: Weighted average shares outstanding for basic net income per share 55,158 56,420 55,266 56,382 Effect of dilutive securities 229 384 290 351 Weighted average shares outstanding for diluted net income per share 55,387 56,804 55,556 56,733 Net income per share t wo-class method: Basic $ 1.44 $ 1.40 $ 4.02 $ 4.54 Diluted $ 1.44 $ 1.39 $ 4.00 $ 4.51 Potentially dilutive securities 1,093 - 939 - 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 | 9 Months Ended |
Jun. 01, 2019 | |
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 and thirty-nine -week periods ended June 1, 2019 and June 2, 2018 was as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended June 1, June 2, June 1, June 2, 2019 2018 2019 2018 Stock options $ 1,215 $ 1,132 $ 3,541 $ 3,455 Restricted share awards 346 658 1,216 2,230 Restricted stock units 2,452 1,827 7,181 5,401 Associate Stock Purchase Plan 76 68 229 189 Total 4,089 3,685 12,167 11,275 Deferred income tax benefit (1,026) (1,080) (3,054) (3,304) Stock-based compensation expense, net $ 3,063 $ 2,605 $ 9,113 $ 7,971 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: Thirty-Nine Weeks Ended June 1, June 2, 2019 2018 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 thirty-nine -week period ended June 1, 2019 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 (207) 75.07 Canceled/Forfeited (32) 77.66 Outstanding on June 1, 2019 1,919 $ 74.78 4.4 $ 4,510 Exercisable on June 1, 2019 892 $ 72.64 3.3 $ 3,086 The unrecognized share ‑based compensation cost related to stock option expense at June 1, 2019 was $9,190 and will be recognized over a weighted average period of 2.3 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 thirty-nine -week periods ended June 1, 2019 and June 2, 2018 was $1,882 and $7,234 , 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 thirty-nine -week period ended June 1, 2019 is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested restricted share awards at September 1, 2018 63 $ 81.98 Granted — — Vested (39) 82.36 Canceled/Forfeited (1) 82.55 Non-vested restricted share awards at June 1, 2019 23 $ 81.30 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 June 1, 2019 was $620 and will be recognized over a weighted average period of 0.5 years. Restricted stock units A summa ry of the Company’s non-vested Restricted Stock U nit (“RSU”) award activity for the thirty-nine -week period ended June 1, 2019 is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested restricted stock unit awards at September 1, 2018 377 $ 73.18 Granted 173 82.99 Vested (101) 72.69 Canceled/Forfeited (21) 77.27 Non-vested restricted stock unit awards at June 1, 2019 428 $ 77.06 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 June 1, 2019 was $26,641 and is expected to be recognized over a weighted average period of 3.2 years. |
Fair Value
Fair Value | 9 Months Ended |
Jun. 01, 2019 | |
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 construction 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 in the amount of $27,025 to finance the structure and site improvements of the Company’s CFC. The Company purchased these bonds at issuance. The bonds were redeemed on May 29, 2019 and all funds have been settled as of June 1, 2019. The bonds had an outstanding balance of $27,025 at September 1, 2018 and were classified as available for sale securities in accordance with ASC Topic 320. The fair values of these securities were 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 thirty-nine-week period ended June 1, 2019 . The Company’s financial instruments, other than those presented in t he disclosure above, include cash and cash equivalents, accounts receivable, accounts payable, and outstanding indebtedness. The Company uses a market approach to determine the fair value of its debt instruments, utilizing quoted prices in active markets, interest rates and other relevant information generated by market transactions involving similar instruments. Therefore, the inputs used to measure the fair value of the Company's debt instruments are classified as Level 2 within the fair value hierarchy. The reported carrying amounts of the Company’s financial instruments approximated their fair values as of June 1, 2019 and September 1, 2018. During the thirty-nine weeks ended June 1, 2019 and June 2, 2018, the Company had no remeasurements 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 | 9 Months Ended |
Jun. 01, 2019 | |
Debt And Capital Lease Obligations [Abstract] | |
Debt And Capital Lease Obligations | Note 6 . Debt and Capital Lease Obligations Debt at June 1, 2019 and September 1, 2018 consisted of the following: June 1, September 1, 2019 2018 (Dollars in thousands) Revolving Credit Facilities Committed bank facility $ - $ 224,000 Uncommitted bank facilities 246,000 - 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 1,264 27,926 Less: unamortized debt issuance costs (1,275) (1,593) Total debt $ 530,989 $ 535,333 Less: short-term debt (1) (246,298) (224,097) Long-term debt $ 284,691 $ 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 the Company’s 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 first quarter of fiscal 2019, 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 $ 246,000 outstanding at the end of the fiscal third quarter of 2019 under the Uncommitted Facilities is classified as short-term in the Company’s Condensed Consolidated Balance Sheet . Durin g the thirty-nine -week period ended June 1, 2019 , the Company borrowed $358,000 and repaid $336,000 under its revolving credit facilities . As of June 1, 2019 and September 1, 2018 , the weighted average interest rate s on borrowings under all its revolving credit facilities were 3.26% 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 June 1, 2019 , 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 June 1, 2019 , the uncommitted availability under the Prudential Note Purchase Agreement is $200,000 . Each of the credit facilities , Private Placement Debt, and Shelf Facility Agreements imposes 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 June 1, 2019 , 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 was classified as a capital lease in accordance with ASC Topic 840 and was terminated and paid in full on May 29, 2019. 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 thirty-nine -week period ended June 1, 2019 , the Company entered into capital lease and financing obligations related to certain IT equipment and software totaling $1,345 . T he gross amount of property and equipment acquired under the capital lease obligation and its accumulated amortization at June 1, 2019 was $442 and $ 46 , respectively. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Jun. 01, 2019 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 7 . Shareholders’ Equity C ommon Stock Repurchases and Treasury Stock During th e thirteen and thirty-nine -week period s ended June 1, 2019 , the Company repurchased 0.5 and 1,054 shares of its Class A common stock for $39 and $84,464 , respectively. From these totals, 0.5 and 316 shares have not been retired and the amounts of $39 and $24,137 are reflected at cost as treasury stock in the accompanying condensed consolidated financial statements for the thirteen and thirty -nine weeks ended June 1, 2019, respectively. During the thirteen and thirty -nine-week periods ended June 2, 2018, the Company repurchased 42 and 291 shares of its Class A common stock for $3,656 and $25,384 , respectively. These shares were not retired , and the values are reflected at cost as treasury stock in the accompanying condensed consolidated financial statements for the thirteen and thirty-nine weeks ended June 2, 2018, respectively. The total number of shares of Class A common stock authorized for future repurchase was 1,157 shares at June 1, 2019 . The Company reissued 14 and 47 shares of treasury stock during the thirteen and thirty-nine -week period s ended June 1, 2019 and reissued 13 and 43 shares of treasury stock during the thirteen and thirty-nine -week period s ended June 2, 2018, respectively, to fund the Associate Stock Purchase Plan. Dividends on Common Stock On July 9, 2019 , the Board of Directors declared a quarterly cash dividend of $0.75 per share payable on August 6, 2019 to shareholders of record at the close of business on July 23, 2019 . The dividend will result in a payout of $41,401 , based on the number of shares outstanding at June 19, 2019. |
Product Warranties
Product Warranties | 9 Months Ended |
Jun. 01, 2019 | |
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 and thirty-nine -week p eriods ended June 1, 2019 and June 2, 2018 was minimal. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 01, 2019 | |
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 on a provisional basis in fiscal 2018 from 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. The measurement period ended during our fiscal quarter ended March 2 , 2019, and no adjustments were recorded during this period. As a result, we consider our accounting for the tax effects of the TCJA to be complete based on our interpretation of the law and subsequently issu ed guidance. However, the U.S. Treasury may continue to issue regulations and other guidance on the application of certain provisions of the TCJA that may impact our interpretation of the rules and our calculation of the tax impact of the provisions of the TCJA . During the thirty-nine -week period ended June 1, 2019 , there were no material changes in unrecognized tax benefits. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Jun. 01, 2019 | |
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. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 9 Months Ended |
Jun. 01, 2019 | |
Business And Summary Of Significant Accounting Policies [Abstract] | |
Principles Of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of MSC Industrial Direct Co., Inc., its wholly owned subsidiaries and entities in which it maintains a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. |
Recently Adopted Accounting Pronouncements | 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 contrac ts with customers and supersede prior revenue recognition guidance, including industry-specific guidance. Revenue continues to be recognized when products are shipped to the customer and the customer obtains control of the products , and t he adoption of these ASUs, using the modified retrospective approach, had no impact on 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, Business Combinations (Topic 805), which clarifies the definition of a business to assist entities with evaluating when a set of transferred assets and activities is considered a business. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , a comprehensive new standard that amends various aspects of existing accounting guidance for leases, including the recognition of a right-of-use asset and a lease liability in the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. During 2018, the FASB issued additional ASUs that address implementation issues and correct or improve certain aspects of the new accounting guidance for leases, including ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topic 842): Targeted Improvements . These ASUs do not change the core principles in the leas e accounting standard outlined above. The amendments in ASU 2018-11 provide an optional transition method that allows entities to initially apply the new lease accounting standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods will continue to be in accordance with current lease accounting guidance. Management established a cross-functional team to evaluate and implement the new standard. The team selected a third-party software solution to facilitate the accounting and financial reporting requirements of the new lease accounting standard. Lease data elements have been gathered and are currently being migrated to the software solution. The new standard will be adopted in the first quarter of fiscal 2020 and the Company expects to use the optional transition method. While the Company has not yet completed its evaluation of the effects of adopting this ASU, right-of-use assets and lease liabilities will be recorded in the Consolidated Balance Sheets as of the effective date and thereafter. In June 2016, the FASB issued its final standard on measurement of credit losses on financial instruments. This standard, issued as ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), 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 b eginning after December 15, 2019 . The new standard is effective for the Company for its fiscal year 202 1 . T he Co mpany is currently evaluating the standard and does not expect a significant impact to its co nsolidated 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 requires 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. 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 | Reclassification Certain of the prior period line items contained in the Condensed Consolidated Statements of Shareholders’ Equity were condensed to conform to our current period presentation. The Company combined the “Exercise of common stock options”, the “ Common stock issued under associate stock purchase plan”, the “Shares issued upon vesting of restricted stock units, including dividend equivalent units”, the “Stock-based compensation”, and the “Issuance of restricted common stock, net of cancellations” line items into a single line titled “Associate Incentive Plans”. These reclassifications did not affect the total amount of Shareholders’ Equity. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Jun. 01, 2019 | |
Revenue [Abstract] | |
Schedule Of Disaggregation Of Revenue | Thirteen Weeks Ended Thirty-Nine Weeks Ended June 1, 2019 June 1, 2019 Manufacturing Heavy 47 % 48 % Manufacturing Light 22 % 22 % Government 7 % 8 % Retail/Wholesale 6 % 6 % Commercial Services 4 % 4 % Other (1) 14 % 12 % Total net sales 100 % 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 and thirty-nine -week periods ended June 1, 2019 : Thirteen Weeks Ended Thirty-Nine Weeks Ended June 1, 2019 June 1, 2019 United States $ 831,533 96 % $ 2,434,603 97 % UK 14,399 2 % 43,373 2 % Canada 10,747 1 % 30,363 1 % Mexico 9,867 1 % 12,808 < 1 % Total net sales $ 866,546 100 % $ 2,521,147 100 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Jun. 01, 2019 | |
Net Income Per Share [Abstract] | |
Basic And Diluted Net Income Per Common Share Under The Two-Class Method | Thirteen Weeks Ended Thirty-Nine Weeks Ended June 1, June 2, June 1, June 2, 2019 2018 2019 2018 Net income attributable to MSC Industrial as reported $ 79,601 $ 79,069 $ 222,257 $ 256,206 Less: Distributed net income available to participating securities (10) (14) (34) (73) Less: Undistributed net income available to participating securities (19) (56) (66) (248) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 79,572 $ 78,999 $ 222,157 $ 255,885 Add: Undistributed net income allocated to participating securities 19 56 66 248 Less: Undistributed net income reallocated to participating securities (19) (55) (66) (247) Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 79,572 $ 79,000 $ 222,157 $ 255,886 Denominator: Weighted average shares outstanding for basic net income per share 55,158 56,420 55,266 56,382 Effect of dilutive securities 229 384 290 351 Weighted average shares outstanding for diluted net income per share 55,387 56,804 55,556 56,733 Net income per share t wo-class method: Basic $ 1.44 $ 1.40 $ 4.02 $ 4.54 Diluted $ 1.44 $ 1.39 $ 4.00 $ 4.51 Potentially dilutive securities 1,093 - 939 - |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jun. 01, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Stock-Based Compensation Expense | Thirteen Weeks Ended Thirty-Nine Weeks Ended June 1, June 2, June 1, June 2, 2019 2018 2019 2018 Stock options $ 1,215 $ 1,132 $ 3,541 $ 3,455 Restricted share awards 346 658 1,216 2,230 Restricted stock units 2,452 1,827 7,181 5,401 Associate Stock Purchase Plan 76 68 229 189 Total 4,089 3,685 12,167 11,275 Deferred income tax benefit (1,026) (1,080) (3,054) (3,304) Stock-based compensation expense, net $ 3,063 $ 2,605 $ 9,113 $ 7,971 |
Schedule Of Option Grant Fair Value Assumptions | Thirty-Nine Weeks Ended June 1, June 2, 2019 2018 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 (207) 75.07 Canceled/Forfeited (32) 77.66 Outstanding on June 1, 2019 1,919 $ 74.78 4.4 $ 4,510 Exercisable on June 1, 2019 892 $ 72.64 3.3 $ 3,086 |
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 (39) 82.36 Canceled/Forfeited (1) 82.55 Non-vested restricted share awards at June 1, 2019 23 $ 81.30 |
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 173 82.99 Vested (101) 72.69 Canceled/Forfeited (21) 77.27 Non-vested restricted stock unit awards at June 1, 2019 428 $ 77.06 |
Debt And Capital Lease Obliga_2
Debt And Capital Lease Obligations (Tables) | 9 Months Ended |
Jun. 01, 2019 | |
Debt And Capital Lease Obligations [Abstract] | |
Schedule Of Debt | June 1, September 1, 2019 2018 (Dollars in thousands) Revolving Credit Facilities Committed bank facility $ - $ 224,000 Uncommitted bank facilities 246,000 - 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 1,264 27,926 Less: unamortized debt issuance costs (1,275) (1,593) Total debt $ 530,989 $ 535,333 Less: short-term debt (1) (246,298) (224,097) Long-term debt $ 284,691 $ 311,236 __________________________ (1) Net of unamortized debt issuance costs expected to be amortized in the next twelve months. |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
Jun. 01, 2019USD ($)segment | Sep. 01, 2018USD ($) | |
Accrued sales returns | $ 4,897,000 | $ 4,832,000 |
Performance obligation | 0 | 0 |
Accrued sales incentives | 13,840,000 | 14,000,000 |
Prepaid sales incentives | 2,698,000 | 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 | 9 Months Ended | |||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 866,546 | $ 828,345 | $ 2,521,147 | $ 2,365,893 | |
Net Sales [Member] | Customer Concentration Risk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage | 100.00% | 100.00% | |||
Net Sales [Member] | Geographic Concentration Risk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage | 100.00% | 100.00% | |||
Manufacturing Heavy [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage | 47.00% | 48.00% | |||
Manufacturing Light [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage | 22.00% | 22.00% | |||
Government [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage | 7.00% | 8.00% | |||
Retail/Wholesale [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage | 6.00% | 6.00% | |||
Commercial Services [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage | 4.00% | 4.00% | |||
Other Customers [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage | [1] | 14.00% | 12.00% | ||
United States [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 831,533 | $ 2,434,603 | |||
Concentration risk, percentage | 96.00% | 97.00% | |||
UK [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 14,399 | $ 43,373 | |||
Concentration risk, percentage | 2.00% | 2.00% | |||
Canada [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 10,747 | $ 30,363 | |||
Concentration risk, percentage | 1.00% | 1.00% | |||
Mexico [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 9,867 | $ 12,808 | |||
Concentration risk, percentage | 1.00% | ||||
Mexico [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | Maximum [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 | 9 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Net Income Per Share [Abstract] | ||||
Net income attributable to MSC Industrial as reported | $ 79,601 | $ 79,069 | $ 222,257 | $ 256,206 |
Less: Distributed net income available to participating securities | (10) | (14) | (34) | (73) |
Less: Undistributed net income available to participating securities | (19) | (56) | (66) | (248) |
Undistributed and distributed net income available to common shareholders | 79,572 | 78,999 | 222,157 | 255,885 |
Add: Undistributed net income allocated to participating securities | 19 | 56 | 66 | 248 |
Less: Undistributed net income reallocated to participating securities | (19) | (55) | (66) | (247) |
Undistributed and distributed net income available to common shareholders | $ 79,572 | $ 79,000 | $ 222,157 | $ 255,886 |
Weighted average shares outstanding for basic net income per share | 55,158 | 56,420 | 55,266 | 56,382 |
Effect of dilutive securities | 229 | 384 | 290 | 351 |
Weighted average shares outstanding for diluted net income per share | 55,387 | 56,804 | 55,556 | 56,733 |
Basic | $ 1.44 | $ 1.40 | $ 4.02 | $ 4.54 |
Diluted | $ 1.44 | $ 1.39 | $ 4 | $ 4.51 |
Potentially dilutive securities | 1,093 | 939 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 01, 2019 | Jun. 02, 2018 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 9,190 | |
Unrecognized share-based compensation weighted average period | 2 years 3 months 18 days | |
Total intrinsic value of options exercised | $ 1,882 | $ 7,234 |
Restricted Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 620 | |
Unrecognized share-based compensation weighted average period | 6 months | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 26,641 | |
Unrecognized share-based compensation weighted average period | 3 years 2 months 12 days |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | $ 4,089 | $ 3,685 | $ 12,167 | $ 11,275 |
Deferred income tax benefit | (1,026) | (1,080) | (3,054) | (3,304) |
Stock-based compensation expense, net | 3,063 | 2,605 | 9,113 | 7,971 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 1,215 | 1,132 | 3,541 | 3,455 |
Restricted Share Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 346 | 658 | 1,216 | 2,230 |
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 2,452 | 1,827 | 7,181 | 5,401 |
Associate Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | $ 76 | $ 68 | $ 229 | $ 189 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule Of Option Grant Fair Value Assumptions) (Details) - $ / shares | 9 Months Ended | |
Jun. 01, 2019 | Jun. 02, 2018 | |
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 | 9 Months Ended |
Jun. 01, 2019USD ($)$ / 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 | (207) |
Canceled/Forfeited, Options | shares | (32) |
Outstanding, Ending Balance, Options | shares | 1,919 |
Exercisable, Ending Balance, Options | shares | 892 |
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 | 75.07 |
Canceled/Forfeited, Weighted-Average Exercise Price per Share | $ / shares | 77.66 |
Outstanding, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | 74.78 |
Exercisable, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 72.64 |
Outstanding, Ending Balance, Weighted-Average Remaining Contractual Term (in years) | 4 years 4 months 24 days |
Exercisable, Ending Balance, Weighted-Average Remaining Contractual Term (in years) | 3 years 3 months 18 days |
Outstanding, Ending Balance, Aggregate Intrinsic Value | $ | $ 4,510 |
Exercisable, Ending Balance, Aggregate Intrinsic Value | $ | $ 3,086 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Non-Vested Restricted Share Award Activity) (Details) shares in Thousands | 9 Months Ended |
Jun. 01, 2019$ / 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 | (39) |
Canceled/Forfeited, Shares | shares | (1) |
Non-vested restricted share awards, Ending balance, Shares | shares | 23 |
Non-vested restricted share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 81.98 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 82.36 |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 82.55 |
Non-vested restricted share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 81.30 |
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 | 173 |
Vested, Shares | shares | (101) |
Canceled/Forfeited, Shares | shares | (21) |
Non-vested restricted share awards, Ending balance, Shares | shares | 428 |
Non-vested restricted share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 73.18 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 82.99 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 72.69 |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 77.27 |
Non-vested restricted share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 77.06 |
Fair Value (Details)
Fair Value (Details) - USD ($) | 9 Months Ended | |||
Jun. 01, 2019 | Jun. 02, 2018 | Sep. 01, 2018 | Aug. 31, 2013 | |
Fair Value [Abstract] | ||||
Taxable bonds | $ 27,025,000 | $ 27,025,000 | ||
Fair value remeasurement of non-financial liabilities on non-recurring basis | $ 0 | $ 0 |
Debt And Capital Lease Obliga_3
Debt And Capital Lease Obligations (Revolving Credit Facilities) (Narrative) (Details) | 9 Months Ended | ||
Jun. 01, 2019USD ($)agreement | Jun. 02, 2018USD ($) | Sep. 01, 2018USD ($) | |
Debt Instrument [Line Items] | |||
Borrowing rate under Credit Facility | 3.26% | 3.20% | |
Borrowings under the revolving credit facilities | $ 358,000,000 | $ 172,000,000 | |
Repayments of debt | 336,000,000 | $ 220,000,000 | |
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 | 246,000,000 | ||
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 ($) | 9 Months Ended | |
Jun. 01, 2019 | 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) | 9 Months Ended |
Jun. 01, 2019USD ($) | |
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) $ in Thousands | 9 Months Ended |
Jun. 01, 2019USD ($) | |
Debt And Capital Lease Obligations [Abstract] | |
Property and equipment acquired under capital leases and financing agreements | $ 442 |
Property and equipment acquired under capital leases and financing agreements, accumulated amortization | 46 |
Non-cash financing activity related to the capital lease | $ 1,345 |
Debt And Capital Lease Obliga_7
Debt And Capital Lease Obligations (Schedule Of Debt) (Details) - USD ($) | Jun. 01, 2019 | Sep. 01, 2018 | |
Debt Instrument [Line Items] | |||
Capital lease and financing obligations | $ 1,264,000 | $ 27,926,000 | |
Less: unamortized debt issuance costs | (1,275,000) | (1,593,000) | |
Total debt | 530,989,000 | 535,333,000 | |
Less: short-term debt | [1] | (246,298,000) | (224,097,000) |
Long-term debt | 284,691,000 | 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 | 246,000,000 | ||
Shelf Facility Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Shelf Facility | 90,000,000 | 90,000,000 | |
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 | |
[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 | Jul. 09, 2019 | Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 |
Components Of Shareholders Equity [Line Items] | |||||
Maximum number of shares that can be repurchased | 1,157,000 | 1,157,000 | |||
Treasury stock reissued to fund plan, shares | 14,000 | 13,000 | 47,000 | 43,000 | |
Subsequent Event [Member] | |||||
Components Of Shareholders Equity [Line Items] | |||||
Dividends declared date | Jul. 9, 2019 | ||||
Dividends payable per share | $ 0.75 | ||||
Dividend payable date | Aug. 6, 2019 | ||||
Dividends record date | Jul. 23, 2019 | ||||
Dividend payable amount | $ 41,401 | ||||
Class A Common Stock [Member] | |||||
Components Of Shareholders Equity [Line Items] | |||||
Treasury stock repurchased, and treasury stock repurchased and retired, shares | 500 | 1,054,000 | |||
Treasury stock repurchased, and treasury stock repurchased and retired, amount | $ 39 | ||||
Treasury Stock [Member] | |||||
Components Of Shareholders Equity [Line Items] | |||||
Shares repurchased | 42,000 | 291,000 | |||
Treasury Stock [Member] | Class A Common Stock [Member] | |||||
Components Of Shareholders Equity [Line Items] | |||||
Common stock shares repurchased | 500 | 316,000 | |||
Purchase of treasury stock | $ 39 | $ 3,656 | $ 24,137 | $ 25,384 | |
Treasury stock repurchased, and treasury stock repurchased and retired, amount | $ 84,464 |
Product Warranties (Details)
Product Warranties (Details) | 9 Months Ended |
Jun. 01, 2019 | |
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 ($) | 9 Months Ended | 12 Months Ended | ||
Jun. 01, 2019 | 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 |