Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Nov. 30, 2019 | Dec. 17, 2019 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-14130 | |
Entity Registrant Name | MSC INDUSTRIAL DIRECT CO., INC. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 11-3289165 | |
Entity Address, Address Line One | 75 Maxess Road | |
Entity Address, City or Town | Melville | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11747 | |
City Area Code | 516 | |
Local Phone Number | 812-2000 | |
Title of 12(b) Security | Class A Common Stock, par value $.001 | |
Trading Symbol | MSM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001003078 | |
Current Fiscal Year End Date | --08-29 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 45,198,985 | |
Class B Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 10,193,348 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2019 | Aug. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 27,778 | $ 32,286 |
Accounts receivable, net of allowance for doubtful accounts of $17,879 and $17,088, respectively | 536,878 | 541,091 |
Inventories | 539,433 | 559,136 |
Prepaid expenses and other current assets | 66,731 | 67,099 |
Total current assets | 1,170,820 | 1,199,612 |
Property, plant and equipment, net | 312,317 | 310,854 |
Goodwill | 677,325 | 677,266 |
Identifiable intangibles, net | 113,740 | 116,668 |
Operating lease assets | 59,385 | |
Other assets | 6,178 | 6,837 |
Total assets | 2,339,765 | 2,311,237 |
Current Liabilities: | ||
Current portion of long-term debt including obligations under finance leases | 138,877 | 175,453 |
Current portion of operating lease liabilities | 21,039 | |
Accounts payable | 142,733 | 160,110 |
Accrued expenses and other current liabilities | 101,179 | 111,353 |
Total current liabilities | 403,828 | 446,916 |
Long-term debt including obligations under finance leases | 267,583 | 266,431 |
Noncurrent operating lease liabilities | 37,977 | |
Deferred income taxes and tax uncertainties | 114,011 | 114,011 |
Total liabilities | 823,399 | 827,358 |
Commitments and Contingencies | ||
Shareholders’ Equity: | ||
Preferred stock; $0.001 par value; 5,000,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 668,668 | 659,226 |
Retained earnings | 970,139 | 946,651 |
Accumulated other comprehensive loss | (21,310) | (22,776) |
Class A treasury stock, at cost, 1,274,580 and 1,248,944 shares, respectively | (106,690) | (104,607) |
Total MSC Industrial shareholders’ equity | 1,510,863 | 1,478,550 |
Noncontrolling interest | 5,503 | 5,329 |
Total shareholders' equity | 1,516,366 | 1,483,879 |
Total liabilities and shareholders' equity | 2,339,765 | 2,311,237 |
Class A Common Stock [Member] | ||
Shareholders’ Equity: | ||
Common stock | 46 | 46 |
Class B Common Stock [Member] | ||
Shareholders’ Equity: | ||
Common stock | $ 10 | $ 10 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Aug. 31, 2019 | |
Accounts receivable, allowance for doubtful accounts | $ 17,879 | $ 17,088 |
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 | 1,274,580 | 1,248,944 |
Class A Common Stock [Member] | ||
Common stock, votes per share | one | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 46,468,912 | 46,277,284 |
Class B Common Stock [Member] | ||
Common stock, votes per share | ten | |
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 | 10,193,348 |
Common stock, shares outstanding | 10,193,348 | 10,193,348 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Dec. 01, 2018 | |
Condensed Consolidated Statements Of Income [Abstract] | ||
Net sales | $ 823,601 | $ 831,597 |
Cost of goods sold | 476,405 | 473,612 |
Gross profit | 347,196 | 357,985 |
Operating expenses | 256,898 | 254,985 |
Income from operations | 90,298 | 103,000 |
Other income (expense): | ||
Interest expense | (3,171) | (4,056) |
Interest income | 10 | 162 |
Other income, net | 121 | 2 |
Total other expense | (3,040) | (3,892) |
Income before provision for income taxes | 87,258 | 99,108 |
Provision for income taxes | 21,806 | 24,876 |
Net income | 65,452 | 74,232 |
Less: Net income attributable to noncontrolling interest | 34 | |
Net income attributable to MSC Industrial | $ 65,418 | $ 74,232 |
Net income per common share: | ||
Basic | $ 1.18 | $ 1.34 |
Diluted | $ 1.18 | $ 1.33 |
Weighted average shares used in computing net income per common share: | ||
Basic | 55,275 | 55,502 |
Diluted | 55,444 | 55,831 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2019 | Dec. 01, 2018 | ||
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income, as reported | $ 65,452 | $ 74,232 | |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | 1,606 | (1,341) | |
Comprehensive income | [1] | 67,058 | 72,891 |
Comprehensive income attributable to noncontrolling interest: | |||
Net income | (34) | ||
Foreign currency translation adjustments | (140) | ||
Comprehensive income attributable to MSC Industrial | $ 66,884 | $ 72,891 | |
[1] | There were no material taxes associated with other comprehensive income during the thirteen-week periods ending November 30, 2019 and December 1, 2018, respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | |
Nov. 30, 2019 | Dec. 01, 2018 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||
Other comprehensive income, taxes | $ 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. 01, 2018 | $ 55 | $ 10 | $ 657,749 | $ 1,325,822 | $ (19,634) | $ (576,748) | ||||||||
Associate Incentive Plans | 14,323 | 497 | ||||||||||||
Net Income | 74,232 | $ 74,232 | ||||||||||||
Repurchase and retirement of common stock, Value | (1) | (11,887) | (48,439) | |||||||||||
Repurchases of common stock, Value | $ (3,200) | $ (63,527) | ||||||||||||
Cash dividends on common stock | $ (28,436) | $ (6,422) | ||||||||||||
Dividend equivalents declared, net of cancellations | (268) | |||||||||||||
Foreign Currency Translation Adjustment | (1,341) | (1,341) | ||||||||||||
Balance, Value at Dec. 01, 2018 | 54 | 10 | 660,185 | 1,316,489 | (20,975) | (579,451) | $ 1,376,312 | 1,376,312 | ||||||
Dividends declared per common share | $ 0.63 | $ 0.63 | ||||||||||||
Balance, Value at Aug. 31, 2019 | 46 | 10 | 659,226 | 946,651 | (22,776) | (104,607) | $ 5,329 | 1,483,879 | ||||||
Associate Incentive Plans | 9,442 | 926 | ||||||||||||
Net Income | 65,418 | 34 | 65,418 | |||||||||||
Repurchase and retirement of common stock, Value | ||||||||||||||
Repurchases of common stock, Value | $ (3,009) | $ (3,009) | ||||||||||||
Cash dividends on common stock | $ (33,891) | $ (7,645) | ||||||||||||
Dividend equivalents declared, net of cancellations | (394) | |||||||||||||
Foreign Currency Translation Adjustment | 1,466 | 140 | 1,606 | |||||||||||
Balance, Value at Nov. 30, 2019 | $ 46 | $ 10 | $ 668,668 | $ 970,139 | $ (21,310) | $ (106,690) | $ 1,510,863 | $ 5,503 | $ 1,516,366 | |||||
Dividends declared per common share | $ 0.75 | $ 0.75 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Dec. 01, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 65,452 | $ 74,232 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,025 | 15,846 |
Non-cash operating lease cost | 5,544 | |
Stock-based compensation | 4,161 | 4,174 |
Loss on disposal of property, plant, and equipment | 140 | 141 |
Provision for doubtful accounts | 2,526 | 2,814 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,565 | (10,630) |
Inventories | 20,627 | (9,803) |
Prepaid expenses and other current assets | (182) | (2,044) |
Operating lease liabilities | (5,425) | |
Other assets | 669 | 753 |
Accounts payable and accrued liabilities | (27,990) | 1,383 |
Total adjustments | 19,660 | 2,634 |
Net cash provided by operating activities | 85,112 | 76,866 |
Cash Flows from Investing Activities: | ||
Expenditures for property, plant and equipment | (12,689) | (10,053) |
Net cash used in investing activities | (12,689) | (10,053) |
Cash Flows from Financing Activities: | ||
Repurchases of common stock | (3,009) | (63,527) |
Payments of cash dividends | (41,536) | (34,858) |
Proceeds from sale of Class A common stock in connection with associate stock purchase plan | 1,031 | 954 |
Proceeds from exercise of Class A common stock options | 4,533 | 9,329 |
Borrowings under the revolving credit facilities | 69,000 | 245,000 |
Payments under the revolving credit facilities | (107,000) | (259,000) |
Other, net | (180) | 753 |
Net cash used in financing activities | (77,161) | (101,349) |
Effect of foreign exchange rate changes on cash and cash equivalents | 230 | (66) |
Net decrease in cash and cash equivalents | (4,508) | (34,602) |
Cash and cash equivalents—beginning of period | 32,286 | 46,217 |
Cash and cash equivalents—end of period | 27,778 | 11,615 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes | 1,790 | 1,761 |
Cash paid for interest | $ 895 | $ 1,685 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Nov. 30, 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 November 30, 2019 and December 1, 2018, the results of operations for the thirteen weeks ended November 30, 2019 and December 1, 2018, and cash flows for the thirteen weeks ended November 30, 2019 and December 1, 2018. The August 31, 2019 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 August 31, 2019. 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 August 31, 2019. 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 2020 fiscal year will be a 52-week accounting period that will end on August 29, 2020 and its 2019 fiscal year was a 52-week accounting period that ended on August 31, 2019. 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) as subsequently amended. This ASU outlines a single comprehensive model for entities to use in the accounting for revenue arising from contracts 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 the adoption of this ASU, 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. This standard was applied to business combinations that occurred beginning September 2, 2018. Effective September 1, 2019, the Company adopted 2016-02, Leases (Topic 842) as subsequently amended. This is 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 on the balance sheet and disclosing key information about leasing arrangements. The Company utilized the optional transition method set forth in ASU 2018-11 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. Therefore, the adoption did not require restatement of prior periods. In addition, the Company elected the transition package of practical expedients permitted within the standard, which allowed it to carry forward the historical lease classification for arrangements that commenced prior to the effective date. As a result of the adoption of ASC 842 on September 1, 2019, the Company recorded both operating lease assets of $ 61,212 and operating lease liabilities of $ 60,730 . The adoption of ASC 842 had an immaterial impact on the Company’s Condensed Consolidated Statement of Income and Condensed Consolidated Statement of Cash Flows for the thirteen-week period ended November 30, 2019. The adoption of this standard also resulted in a change in the naming convention for leases classified historically as capital leases. These leases are now referred to as finance leases. See Note 7 “Leases” for additional qualitative and quantitative information about the Company's leases. Accounting Pronouncements Not Yet Adopted 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 beginning after December 15, 2019. The new standard is effective for the Company for its fiscal year 2021. The Company is currently evaluating the standard to determine the impact, if any, of adoption to is consolidated financial statements. 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 the Company’s 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”, and the “Stock-based compensation”, line items into a single line titled “Associate Incentive Plans”. These reclassifications did not affect the total amount of Shareholders’ Equity. |
Revenue
Revenue | 3 Months Ended |
Nov. 30, 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 $ 5,440 and $ 5,432 as of November 30, 2019 and August 31, 2019, respectively, and are reported as Accrued expenses and other current liabilities in the Condensed 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 $ 17,793 and $ 14,770 as of November 30, 2019 and August 31, 2019, respectively, and are included in Accrued expenses and other current 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 $ 2,424 and $ 2,788 as of November 30, 2019 and August 31, 2019, 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 November 30, 2019 and August 31, 2019. 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 periods ended November 30, 2019 and December 1, 2018: Thirteen Weeks Ended November 30, 2019 December 1, 2018 Manufacturing Heavy 47 % 49 % Manufacturing Light 23 % 22 % Government 7 % 8 % Retail/Wholesale 6 % 5 % Commercial Services 5 % 4 % Other (1) 12 % 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-week periods ended November 30, 2019 and December 1, 2018: Thirteen Weeks Ended November 30, 2019 December 1, 2018 (Dollars in thousands) United States $ 788,364 96 % $ 806,075 97 % UK 14,082 2 % 15,205 2 % Canada 11,110 1 % 10,317 1 % Mexico 10,045 1 % - 0 % Total net sales $ 823,601 100 % $ 831,597 100 % |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Nov. 30, 2019 | |
Net Income Per Share [Abstract] | |
Net Income Per Share | Note 3. Net Income per Share The Company’s non-vested restricted share awards contain non-forfeitable rights to dividends and meet the criteria of a participating security as defined by 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 shares 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. Effective in fiscal 2016, the Company discontinued its granting of restricted share awards. 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 November 30, 2019 and December 1, 2018, respectively: Thirteen Weeks Ended November 30, December 1, 2019 2018 Net income attributable to MSC Industrial as reported $ 65,418 $ 74,232 Less: Distributed net income available to participating securities ( 7 ) ( 20 ) Less: Undistributed net income available to participating securities ( 5 ) ( 33 ) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 65,406 $ 74,179 Add: Undistributed net income allocated to participating securities 5 33 Less: Undistributed net income reallocated to participating securities ( 5 ) ( 33 ) Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 65,406 $ 74,179 Denominator: Weighted average shares outstanding for basic net income per share 55,275 55,502 Effect of dilutive securities 169 329 Weighted average shares outstanding for diluted net income per share 55,444 55,831 Net income per share Two-class method: Basic $ 1.18 $ 1.34 Diluted $ 1.18 $ 1.33 Potentially dilutive securities 1,557 408 Potentially dilutive securities attributable to outstanding stock options, restricted stock units, and performance share 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 |
Nov. 30, 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,” as subsequently amended. Stock - based compensation expense included in operating expenses for the thirteen-week periods ended November 30, 2019 and December 1, 2018 was as follows: Thirteen Weeks Ended November 30, December 1, 2019 2018 (Dollars in thousands) Stock options $ 975 $ 1,205 Restricted share awards 205 532 Restricted stock units 2,876 2,365 Performance share units 46 — Associate Stock Purchase Plan 59 72 Total 4,161 4,174 Deferred income tax benefit ( 1,040 ) ( 1,048 ) Stock-based compensation expense, net $ 3,121 $ 3,126 Stock options The Company discontinued its grants of stock options in fiscal 2020. For the thirteen weeks ended December 1, 2018, the fair value of each option grant was estimated on the date of grant using the Black - Scholes option pricing model with the following assumptions: Thirteen Weeks Ended December 1, 2018 Expected life (in years) 4.0 Risk-free interest rate 2.98 % Expected volatility 23.13 % Expected dividend yield 2.70 % Weighted-average grant-date fair value $ 14.05 A summary of the Company’s stock option activity for the thirteen-week period ended November 30, 2019 is as follows: Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding on August 31, 2019 1,894 $ 74.73 Granted — — Exercised ( 73 ) 61.96 Canceled/Forfeited ( 19 ) 81.94 Outstanding on November 30, 2019 1,802 $ 75.17 3.9 $ 5,608 Exercisable on November 30, 2019 1,227 $ 73.05 3.2 $ 5,375 The unrecognized share - based compensation cost related to stock option expense at November 30, 2019 was $ 6,709 and will be recognized over a weighted average period of 2.2 years. The total intrinsic value of options exercised, which represents the difference between the exercise price and market value of common stock measured at each individual exercise date, during the thirteen -week periods ended November 30, 2019 and December 1, 2018 was $ 941 and $ 618 , respectively. Performance share units Beginning with the thirteen-week period ended November 30, 2019, the Company grants performance share units (“PSU”) as part of its long-term stock-based compensation program. PSUs cliff vest after a three year performance period based on achievement of specific performance goals. Based on the extent to which the targets are achieved, vested shares may range from zero to 200 percent of the target award amount. PSUs accrue dividend equivalents (in the form of additional stock units) that are payable upon, and to the same extent as, the vesting of the underlying PSUs. The following table summarizes all transactions related to PSUs under the Company’s 2015 Omnibus Incentive Plan (based on target award amounts) for the thirteen weeks ended November 30, 2019: Shares Weighted-Average Grant-Date Fair Value Non-vested PSUs at August 31, 2019 — $ — Granted 31 76.32 Vested — — Canceled/Forfeited — — Non-vested PSUs at November 30, 2019 (1) 31 $ 76.32 (1) Excludes less than 1 share of accrued incremental dividend equivalent rights on outstanding PSUs granted under the Company's 2015 Omnibus Incentive Plan . The fair value of each PSU is the closing stock price on the NYSE of the Company’s Class A common stock on the date of grant. Upon vesting, subject to achievement of performance goals, a portion of the PSU award may be withheld to satisfy the statutory income tax withholding obligation. The remaining PSUs will be settled in shares of the Company’s Class A common stock when vested. These awards accrue dividend equivalents on the underlying PSUs (in the form of additional stock units) based on dividends declared on the Company’s Class A common stock and these dividend equivalents are paid out in unrestricted common stock on the vesting dates of the underlying PSUs, subject to the same performance vesting requirements. The unrecognized share-based compensation cost related to the PSUs at November 30, 2019 was $ 2,311 and is expected to be recognized over a period of 2.9 years. 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 November 30, 2019 is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested RSAs at August 31, 2019 21 $ 82.00 Granted — — Vested ( 19 ) 83.01 Canceled/Forfeited — — Non-vested RSAs at November 30, 2019 2 $ 72.06 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 November 30, 2019 was $ 66 and will be recognized over a weighted average period of 0.5 years. Restricted stock units A summary of the Company’s non-vested Restricted Stock Unit (“RSU”) award activity under the Company’s 2015 Omnibus Incentive Plan for the thirteen-week period ended November 30, 2019 is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested RSUs at August 31, 2019 416 $ 76.93 Granted 218 76.32 Vested ( 110 ) 73.19 Canceled/Forfeited ( 8 ) 78.12 Non-vested RSUs at November 30, 2019 (1) 516 $ 77.46 (1) Excludes approximately 22 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the Company's 2015 Omnibus Incentive Plan. The fair value of each RSU 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 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 the underlying RSUs (in the form of additional stock units) based on dividends declared on the Company’s Class A common stock and these dividend equivalents are paid out in unrestricted common stock on the vesting dates of the underlying RSUs. The unrecognized share-based compensation cost related to the RSUs at November 30, 2019 was $ 36,672 and is expected to be recognized over a weighted average period of 3.4 years. |
Fair Value
Fair Value | 3 Months Ended |
Nov. 30, 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 markets . 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. The Company’s financial instruments 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 November 30, 2019 and August 31, 2019. During the thirteen-weeks ended November 30, 2019 and December 1, 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
Debt | 3 Months Ended |
Nov. 30, 2019 | |
Debt [Abstract] | |
Debt | Note 6. Debt Debt at November 30, 2019 and August 31, 2019 consisted of the following: November 30, August 31, 2019 2019 (Dollars in thousands) Uncommitted bank facilities $ 117,000 $ 155,000 Private Placement Debt: 2.65 % Senior notes, series A, due July 28, 2023 75,000 75,000 2.90 % Senior notes, series B, due July 28, 2026 100,000 100,000 3.79 % Senior notes, due June 11, 2025 20,000 20,000 Shelf Facility Agreements 90,000 90,000 Financing arrangements 1,074 82 Less: unamortized debt issuance costs ( 1,064 ) ( 1,169 ) Total debt, excluding obligations under finance leases $ 402,010 $ 438,913 Less: current portion (1) ( 137,687 ) ( 174,688 ) Total long-term debt, excluding obligations under finance leases $ 264,323 $ 264,225 __________________________ (1) Net of unamortized debt issuance costs expected to be amortized in the next twelve months. Revolving Credit Facilities The Company has 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 interest rate is based on either the London Interbank Offered Rate (“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. As of November 30, 2019 and August 31, 2019, the Company does not have an outstanding balance on its Committed Facility. 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. During the first quarter of fiscal 2020, the Company extended, and in some cases amended, five of the Uncommitted Facilities (the “Amended Uncommitted Facilities”), totaling $ 410,000 of maximum uncommitted availability. Borrowings under the Amended Uncommitted Facilities are generally due at the end of the applicable agreed interest period, but, in any event, no later than the one-year anniversary of the entrance into the applicable Amended Uncommitted Facility. The Amended Uncommitted Facilities contain limited covenants. An event of default under the Company’s Committed Facility is an event of default under the Amended Uncommitted Facilities. The interest rate on the Amended 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 $ 117,000 outstanding at the end of the fiscal first quarter of 2020 under the Amended Uncommitted Facilities is classified as short-term in the Company’s Condensed Consolidated Balance Sheet. During the thirteen-week period ended November 30, 2019, the Company borrowed $ 69,000 and repaid $ 107,000 under its revolving credit facilities. As of November 30, 2019 and August 31, 2019, the weighted average interest rates on borrowings under all its revolving credit facilities were 2.57 % and 3.01 %, respectively. 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 November 30, 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 November 30, 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 November 30, 2019, the Company was in compliance with the operating and financial covenants of the credit facilities, Private Placement Debt, and Shelf Facility Agreements. Financing Arrangements From time to time, the Company enters into financing arrangements with vendors to purchase certain information technology equipment or software. The equipment or software acquired from these vendors is paid for over a specified period of time based on the terms agreed upon. During the thirteen-week period ended November 30, 2019, the Company entered into financing arrangements related to certain IT equipment and software totaling $ 1,164 . The gross amount of property and equipment acquired under the financing arrangements and its accumulated amortization at November 30, 2019 was $ 1,328 and $ 172 , respectively. |
Leases
Leases | 3 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 7. Leases The Company's lease portfolio includes certain real estate (branch offices and customer fulfillment centers), automobiles, and other equipment. The determination of whether an arrangement is, or contains, a lease is performed at the inception of the arrangement. Operating leases are recorded on the balance sheet with operating lease assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. For real estate leases, the Company has elected the practical expedient which allows lease components and non-lease components, such as common area maintenance, to be grouped as a single lease component. The Company has also elected the practical expedient which allows leases with an initial term of 12 months or less to be excluded from the balance sheet. The Company does not guarantee any residual value in its lease agreements, there are no material restrictions or covenants imposed by lease arrangements, and there are no lease transactions with related parties. Real estate leases typically include one or more options to extend the lease. The Company regularly evaluates the renewal options, and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term. The automobile leases contain variable lease payments based on inception and subsequent interest rate fluctuations. For the thirteen-week period ended November 30, 2019, the variable lease cost was insignificant. When readily determinable, the Company uses the interest rate implicit in its leases to discount lease payments. When the implicit rate is not readily determinable, as is the case with substantially all of the real estate leases, the Company utilizes the incremental borrowing rate. The incremental borrowing rate for a lease is the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The rate for each lease was determined using primarily the Company’s credit spread, the lease term, and currency. The components of lease cost for the thirteen weeks ended November 30, 2019 were as follows: Thirteen Weeks Ended November 30, 2019 (Dollars in thousands) Operating lease cost $ 6,172 Short-term lease cost 264 Finance lease cost: Amortization of leased assets 262 Interest on leased liabilities 25 Total Lease Cost $ 6,723 Supplemental balance sheet information relating to operating and finance leases is as follows: November 30, August 31, Classification 2019 2019 Assets (Dollars in thousands) Operating lease assets Operating lease assets $ 59,385 $ - Finance lease assets (1) Property, plant, and equipment, net 4,348 2,958 Total leased assets $ 63,733 $ 2,958 Liabilities Current Operating Current portion of operating lease liabilities $ 21,039 $ - Finance Current portion of long-term debt including obligations under finance leases 1,190 765 Noncurrent Operating Noncurrent operating lease liabilities 37,977 - Finance Long-term debt including obligations under finance leases 3,260 2,206 Total lease liabilities $ 63,466 $ 2,971 (1) Finance lease assets are net of accumulated amortization of $ 473 and $ 1,398 as of November 30, 2019 and August 31, 2019 . November 30, 2019 Weighted average remaining lease term (years) Operating Leases 4.0 Finance Leases 3.7 Weighted average discount rate Operating Leases 3.5 % Finance Leases 2.6 % The following sets forth supplemental cash flow information related to operating and finance leases: Thirteen Weeks Ended November 30, 2019 (Dollars in thousands) Operating Cash Outflows from Operating Leases $ 6,052 Operating Cash Outflows from Finance Leases 25 Financing Cash Outflows from Finance Leases 160 Leased assets obtained in exchange for new lease liabilities: Operating Leases $ 3,624 Finance Leases 1,730 As of November 30, 2019, future lease payments were as follows: Fiscal Year (Dollars in thousands) Operating Leases Finance Leases Total 2020 (excluding three months) $ 17,400 $ 966 $ 18,366 2021 19,114 1,289 20,403 2022 10,928 1,257 12,185 2023 5,513 996 6,509 2024 4,370 152 4,522 Thereafter 6,393 3 6,396 Total Lease Payments 63,718 4,663 68,381 Less: Imputed Interest 4,702 213 4,915 Present Value of Lease Liabilities (1) $ 59,016 $ 4,450 $ 63,466 (1) Includes the current portion of $ 21,039 for operating leases and $ 1,190 for finance leases As of November 30, 2019, the Company's future lease obligations which have not yet commenced are immaterial. Prior Period Disclosures As a result of the adoption of ASC 842, Leases, on September 1, 2019, the Company is required to present future minimum lease payments for operating and finance lease obligations having initial or remaining non-cancelable lease terms in excess of one year. These future minimum lease payments were previously disclosed in the Company’s 2019 Annual Report on Form 10-K and accounted for under previous lease guidance. Commitments as of August 31, 2019 were as follows: August 31, 2019 Fiscal Year Operating Leases Capitalized Lease Obligations 2020 $ 22,463 $ 792 2021 18,022 812 2022 9,923 781 2023 5,184 604 2024 4,083 106 Thereafter 6,023 - Total minimum lease payments $ 65,698 $ 3,095 Less: interest 124 Present value of minimum lease payments $ 2,971 Less: current maturities 765 Present value of minimum lease payments less current maturities $ 2,206 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Nov. 30, 2019 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 8. Shareholders’ Equity Common Stock Repurchases and Treasury Stock During the thirteen-week period ended November 30, 2019, the Company repurchased 41 shares of its Class A common stock for $ 3,009 . All of these shares were repurchased by the Company to satisfy the Company’s associates’ tax withholdings liability associated with its share-based compensation program and are reflected at cost as treasury stock in the accompanying condensed consolidated financial statements for the thirteen weeks ended November 30, 2019. 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. As part of the Company’s ongoing Stock Repurchase Plan, the total number of shares of Class A common stock authorized for future repurchase by the Board of Directors was 1,157 at November 30, 2019. The Company reissued 16 and 13 shares of treasury stock during the thirteen-week period ended November 30, 2019 and the thirteen-week period ended December 1, 2018, respectively, to fund the Associate Stock Purchase Plan. Dividends on Common Stock See Note 13 “Subsequent Events” in the Notes to the unaudited Condensed Consolidated Financial Statements for more information about dividends declared. |
Severance And Separation Benefi
Severance And Separation Benefits | 3 Months Ended |
Nov. 30, 2019 | |
Severance And Separation Benefits [Abstract] | |
Severance And Separation Benefits | Note 9. Severance and Separation Benefits During fiscal 2019, the Company reviewed its operations and identified opportunities for improvements in its workforce realignment, strategy, and staffing, and increased its focus on performance management, to ensure it has the right skillsets and number of associates to execute its long-term vision. As such, the Company extended voluntary and involuntary severance and separation benefits to certain associates. The amount of severance and separation benefits charges and other related costs were accrued for approximately 125 associates in the fiscal first quarter of 2020 for a total of $ 2,571 , which includes $ 87 of stock-based compensation expense from the acceleration of equity award vestings. These costs are included within operating expenses in the Consolidated Statement of Income for the quarter ended November 30, 2019. Severance and separation cost liability had a balance of $ 6,044 at August 31, 2019. Of these totals, $ 6,436 of charges were paid out in the first quarter of fiscal 2020, resulting in a severance and separation cost liability balance of $ 2,092 at November 30, 2019. |
Product Warranties
Product Warranties | 3 Months Ended |
Nov. 30, 2019 | |
Product Warranties [Abstract] | |
Product Warranties | Note 10. 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 day s to ninety day s. In general, many of the Company’s general merchandise products are covered by third-party original equipment manufacturers’ warranties. The Company’s warranty expense for the thirteen-week periods ended November 30, 2019 and December 1, 2018 was minimal. |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note 11. Income Taxes During the thirteen-week period ended November 30, 2019, there were no material changes in unrecognized tax benefits. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Nov. 30, 2019 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | Note 12. Legal Proceedings There are various claims, lawsuits, and pending actions against the Company incidental to the operation of its business. Although the outcome of these matters is currently not determinable, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Nov. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13. Subsequent Events In December 2019, the Board of Directors declared a regular quarterly cash dividend of $ 0.75 per share as well as a special dividend of $ 5.00 per share payable on February 5, 2020 to shareholders of record at the close of business on January 22, 2020 . The regular and special dividends will result in payouts of approximately $ 41,500 and $ 277,000 , respectively, based on the number of shares outstanding at December 17, 2019. The Company will initially fund these payments from cash on hand and its revolving credit facility. In December 2019, the Company paid a post-closing working capital adjustment in accordance with the February 2019 acquisition of certain assets of TAC Insumos Industriales, S. de R.L. de C.V. and certain of its affiliates (together, “TAC ”). This adjustment increases the purchase price by $ 2,286 with a corresponding increase to goodwill. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 3 Months Ended |
Nov. 30, 2019 | |
Basis Of Presentation [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 Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) as subsequently amended. This ASU outlines a single comprehensive model for entities to use in the accounting for revenue arising from contracts 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 the adoption of this ASU, 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. This standard was applied to business combinations that occurred beginning September 2, 2018. Effective September 1, 2019, the Company adopted 2016-02, Leases (Topic 842) as subsequently amended. This is 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 on the balance sheet and disclosing key information about leasing arrangements. The Company utilized the optional transition method set forth in ASU 2018-11 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. Therefore, the adoption did not require restatement of prior periods. In addition, the Company elected the transition package of practical expedients permitted within the standard, which allowed it to carry forward the historical lease classification for arrangements that commenced prior to the effective date. As a result of the adoption of ASC 842 on September 1, 2019, the Company recorded both operating lease assets of $ 61,212 and operating lease liabilities of $ 60,730 . The adoption of ASC 842 had an immaterial impact on the Company’s Condensed Consolidated Statement of Income and Condensed Consolidated Statement of Cash Flows for the thirteen-week period ended November 30, 2019. The adoption of this standard also resulted in a change in the naming convention for leases classified historically as capital leases. These leases are now referred to as finance leases. See Note 7 “Leases” for additional qualitative and quantitative information about the Company's leases. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted 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 beginning after December 15, 2019. The new standard is effective for the Company for its fiscal year 2021. The Company is currently evaluating the standard to determine the impact, if any, of adoption to is consolidated financial statements. 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 the Company’s 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”, and the “Stock-based compensation”, 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) | 3 Months Ended |
Nov. 30, 2019 | |
Revenue [Abstract] | |
Schedule Of Disaggregation Of Revenue | Thirteen Weeks Ended November 30, 2019 December 1, 2018 Manufacturing Heavy 47 % 49 % Manufacturing Light 23 % 22 % Government 7 % 8 % Retail/Wholesale 6 % 5 % Commercial Services 5 % 4 % Other (1) 12 % 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-week periods ended November 30, 2019 and December 1, 2018: Thirteen Weeks Ended November 30, 2019 December 1, 2018 (Dollars in thousands) United States $ 788,364 96 % $ 806,075 97 % UK 14,082 2 % 15,205 2 % Canada 11,110 1 % 10,317 1 % Mexico 10,045 1 % - 0 % Total net sales $ 823,601 100 % $ 831,597 100 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Net Income Per Share [Abstract] | |
Basic And Diluted Net Income Per Common Share Under The Two-Class Method | Thirteen Weeks Ended November 30, December 1, 2019 2018 Net income attributable to MSC Industrial as reported $ 65,418 $ 74,232 Less: Distributed net income available to participating securities ( 7 ) ( 20 ) Less: Undistributed net income available to participating securities ( 5 ) ( 33 ) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 65,406 $ 74,179 Add: Undistributed net income allocated to participating securities 5 33 Less: Undistributed net income reallocated to participating securities ( 5 ) ( 33 ) Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 65,406 $ 74,179 Denominator: Weighted average shares outstanding for basic net income per share 55,275 55,502 Effect of dilutive securities 169 329 Weighted average shares outstanding for diluted net income per share 55,444 55,831 Net income per share Two-class method: Basic $ 1.18 $ 1.34 Diluted $ 1.18 $ 1.33 Potentially dilutive securities 1,557 408 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Stock-Based Compensation Expense | Thirteen Weeks Ended November 30, December 1, 2019 2018 (Dollars in thousands) Stock options $ 975 $ 1,205 Restricted share awards 205 532 Restricted stock units 2,876 2,365 Performance share units 46 — Associate Stock Purchase Plan 59 72 Total 4,161 4,174 Deferred income tax benefit ( 1,040 ) ( 1,048 ) Stock-based compensation expense, net $ 3,121 $ 3,126 |
Schedule Of Option Grant Fair Value Assumptions | Thirteen Weeks Ended December 1, 2018 Expected life (in years) 4.0 Risk-free interest rate 2.98 % Expected volatility 23.13 % Expected dividend yield 2.70 % Weighted-average grant-date fair value $ 14.05 |
Summary Of Stock Option Activity | Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding on August 31, 2019 1,894 $ 74.73 Granted — — Exercised ( 73 ) 61.96 Canceled/Forfeited ( 19 ) 81.94 Outstanding on November 30, 2019 1,802 $ 75.17 3.9 $ 5,608 Exercisable on November 30, 2019 1,227 $ 73.05 3.2 $ 5,375 |
Summary Of Performance Share Unit Activity | Shares Weighted-Average Grant-Date Fair Value Non-vested PSUs at August 31, 2019 — $ — Granted 31 76.32 Vested — — Canceled/Forfeited — — Non-vested PSUs at November 30, 2019 (1) 31 $ 76.32 (1) Excludes less than 1 share of accrued incremental dividend equivalent rights on outstanding PSUs granted under the Company's 2015 Omnibus Incentive Plan . |
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 RSAs at August 31, 2019 21 $ 82.00 Granted — — Vested ( 19 ) 83.01 Canceled/Forfeited — — Non-vested RSAs at November 30, 2019 2 $ 72.06 |
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 RSUs at August 31, 2019 416 $ 76.93 Granted 218 76.32 Vested ( 110 ) 73.19 Canceled/Forfeited ( 8 ) 78.12 Non-vested RSUs at November 30, 2019 (1) 516 $ 77.46 (1) Excludes approximately 22 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the Company's 2015 Omnibus Incentive Plan. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Debt [Abstract] | |
Schedule Of Debt | November 30, August 31, 2019 2019 (Dollars in thousands) Uncommitted bank facilities $ 117,000 $ 155,000 Private Placement Debt: 2.65 % Senior notes, series A, due July 28, 2023 75,000 75,000 2.90 % Senior notes, series B, due July 28, 2026 100,000 100,000 3.79 % Senior notes, due June 11, 2025 20,000 20,000 Shelf Facility Agreements 90,000 90,000 Financing arrangements 1,074 82 Less: unamortized debt issuance costs ( 1,064 ) ( 1,169 ) Total debt, excluding obligations under finance leases $ 402,010 $ 438,913 Less: current portion (1) ( 137,687 ) ( 174,688 ) Total long-term debt, excluding obligations under finance leases $ 264,323 $ 264,225 __________________________ (1) Net of unamortized debt issuance costs expected to be amortized in the next twelve months. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Components Of Lease Expense | Thirteen Weeks Ended November 30, 2019 (Dollars in thousands) Operating lease cost $ 6,172 Short-term lease cost 264 Finance lease cost: Amortization of leased assets 262 Interest on leased liabilities 25 Total Lease Cost $ 6,723 |
Supplemental Balance Sheet Information | November 30, August 31, Classification 2019 2019 Assets (Dollars in thousands) Operating lease assets Operating lease assets $ 59,385 $ - Finance lease assets (1) Property, plant, and equipment, net 4,348 2,958 Total leased assets $ 63,733 $ 2,958 Liabilities Current Operating Current portion of operating lease liabilities $ 21,039 $ - Finance Current portion of long-term debt including obligations under finance leases 1,190 765 Noncurrent Operating Noncurrent operating lease liabilities 37,977 - Finance Long-term debt including obligations under finance leases 3,260 2,206 Total lease liabilities $ 63,466 $ 2,971 (1) Finance lease assets are net of accumulated amortization of $ 473 and $ 1,398 as of November 30, 2019 and August 31, 2019 . November 30, 2019 Weighted average remaining lease term (years) Operating Leases 4.0 Finance Leases 3.7 Weighted average discount rate Operating Leases 3.5 % Finance Leases 2.6 % |
Supplemental Cash Flow Information | Thirteen Weeks Ended November 30, 2019 (Dollars in thousands) Operating Cash Outflows from Operating Leases $ 6,052 Operating Cash Outflows from Finance Leases 25 Financing Cash Outflows from Finance Leases 160 Leased assets obtained in exchange for new lease liabilities: Operating Leases $ 3,624 Finance Leases 1,730 |
Schedule Of Future Lease Payments | Fiscal Year (Dollars in thousands) Operating Leases Finance Leases Total 2020 (excluding three months) $ 17,400 $ 966 $ 18,366 2021 19,114 1,289 20,403 2022 10,928 1,257 12,185 2023 5,513 996 6,509 2024 4,370 152 4,522 Thereafter 6,393 3 6,396 Total Lease Payments 63,718 4,663 68,381 Less: Imputed Interest 4,702 213 4,915 Present Value of Lease Liabilities (1) $ 59,016 $ 4,450 $ 63,466 (1) Includes the current portion of $ 21,039 for operating leases and $ 1,190 for finance leases |
Schedule Of Future Lease Payments Under Prior Standard | August 31, 2019 Fiscal Year Operating Leases Capitalized Lease Obligations 2020 $ 22,463 $ 792 2021 18,022 812 2022 9,923 781 2023 5,184 604 2024 4,083 106 Thereafter 6,023 - Total minimum lease payments $ 65,698 $ 3,095 Less: interest 124 Present value of minimum lease payments $ 2,971 Less: current maturities 765 Present value of minimum lease payments less current maturities $ 2,206 |
Basis Of Presentation (Narrativ
Basis Of Presentation (Narrative) (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Sep. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 59,385 | ||
Operating lease liabilities | [1] | $ 59,016 | |
Restatement Adjustment [Member] | Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 61,212 | ||
Operating lease liabilities | $ 60,730 | ||
[1] | Includes the current portion of $ 21,039 for operating leases and $ 1,190 for finance leases |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2019USD ($)segment | Aug. 31, 2019USD ($) | |
Accrued sales returns | $ 5,440,000 | $ 5,432,000 |
Accrued sales incentives | 17,793,000 | 14,770,000 |
Prepaid sales incentives | 2,424,000 | 2,788,000 |
Performance obligation | 0 | 0 |
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 | ||
Nov. 30, 2019 | Dec. 01, 2018 | ||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 823,601 | $ 831,597 | |
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] | |||
Net sales | $ 823,601 | $ 831,597 | |
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% | 49.00% | |
Manufacturing Light [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 23.00% | 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% | 5.00% | |
Commercial Services [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 5.00% | 4.00% | |
Other Customers [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | [1] | 12.00% | 12.00% |
United States [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 788,364 | $ 806,075 | |
Concentration risk, percentage | 96.00% | 97.00% | |
UK [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 14,082 | $ 15,205 | |
Concentration risk, percentage | 2.00% | 2.00% | |
Canada [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 11,110 | $ 10,317 | |
Concentration risk, percentage | 1.00% | 1.00% | |
Mexico [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 10,045 | ||
Concentration risk, percentage | 1.00% | 0.00% | |
[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 | |
Nov. 30, 2019 | Dec. 01, 2018 | |
Net Income Per Share [Abstract] | ||
Net income attributable to MSC Industrial | $ 65,418 | $ 74,232 |
Less: Distributed net income available to participating securities | (7) | (20) |
Less: Undistributed net income available to participating securities | (5) | (33) |
Undistributed and distributed net income available to common shareholders | 65,406 | 74,179 |
Add: Undistributed net income allocated to participating securities | 5 | 33 |
Less: Undistributed net income reallocated to participating securities | (5) | (33) |
Undistributed and distributed net income available to common shareholders | $ 65,406 | $ 74,179 |
Weighted average shares outstanding for basic net income per share | 55,275 | 55,502 |
Effect of dilutive securities | 169 | 329 |
Weighted average shares outstanding for diluted net income per share | 55,444 | 55,831 |
Basic | $ 1.18 | $ 1.34 |
Diluted | $ 1.18 | $ 1.33 |
Potentially dilutive securities | 1,557 | 408 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Dec. 01, 2018 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 6,709 | |
Unrecognized share-based compensation weighted average period | 2 years 2 months 12 days | |
Total intrinsic value of options exercised | $ 941 | $ 618 |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 2,311 | |
Unrecognized share-based compensation weighted average period | 2 years 10 months 24 days | |
Vesting period | 3 years | |
Performance Share Units [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 0.00% | |
Performance Share Units [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 200.00% | |
Restricted Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 66 | |
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 | $ 36,672 | |
Unrecognized share-based compensation weighted average period | 3 years 4 months 24 days |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Dec. 01, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 4,161 | $ 4,174 |
Deferred income tax benefit | (1,040) | (1,048) |
Stock-based compensation expense, net | 3,121 | 3,126 |
Stock Options [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 975 | 1,205 |
Restricted Share Awards [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 205 | 532 |
Restricted Stock Units [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 2,876 | 2,365 |
Performance Share Units [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 46 | |
Associate Stock Purchase Plan [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 59 | $ 72 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule Of Option Grant Fair Value Assumptions) (Details) | 3 Months Ended |
Dec. 01, 2018$ / shares | |
Stock-Based Compensation [Abstract] | |
Expected life (in years) | 4 years |
Risk-free interest rate | 2.98% |
Expected volatility | 23.13% |
Expected dividend yield | 2.70% |
Weighted-average grant-date fair value | $ 14.05 |
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 |
Nov. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Beginning Balance, Options | shares | 1,894 |
Exercised, Options | shares | (73) |
Canceled/Forfeited, Options | shares | (19) |
Outstanding, Ending Balance, Options | shares | 1,802 |
Exercisable, Ending Balance, Options | shares | 1,227 |
Outstanding, Beginning Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 74.73 |
Exercised, Weighted-Average Exercise Price per Share | $ / shares | 61.96 |
Canceled/Forfeited, Weighted-Average Exercise Price per Share | $ / shares | 81.94 |
Outstanding, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | 75.17 |
Exercisable, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 73.05 |
Outstanding, Ending Balance, Weighted-Average Remaining Contractual Term (in years) | 3 years 10 months 24 days |
Exercisable, Ending Balance, Weighted-Average Remaining Contractual Term (in years) | 3 years 2 months 12 days |
Aggregate Intrinsic Value of options outstanding | $ | $ 5,608 |
Aggregate Intrinsic Value of options exercisable | $ | $ 5,375 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Non-Vested Share Award Activity) (Details) shares in Thousands | 3 Months Ended | |
Nov. 30, 2019$ / sharesshares | ||
Restricted Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested share awards, Beginning balance, Shares | 21 | |
Vested, Shares | (19) | |
Non-vested share awards, Ending balance, Shares | 2 | |
Non-vested share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 82 | |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 83.01 | |
Non-vested share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 72.06 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested share awards, Beginning balance, Shares | 416 | |
Granted, Shares | 218 | |
Vested, Shares | (110) | |
Canceled/Forfeited, Shares | (8) | |
Non-vested share awards, Ending balance, Shares | 516 | [1] |
Non-vested share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 76.93 | |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 76.32 | |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 73.19 | |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 78.12 | |
Non-vested share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 77.46 | [1] |
Incremental Dividend Rights, Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested share awards, Ending balance, Shares | 22 | |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested share awards, Beginning balance, Shares | ||
Granted, Shares | 31 | |
Non-vested share awards, Ending balance, Shares | 31 | [2] |
Non-vested share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | ||
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 76.32 | |
Non-vested share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 76.32 | [2] |
Incremental Dividend Rights, Performance Stock Units [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested share awards, Ending balance, Shares | 1 | |
[1] | Excludes approximately 22 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the Company's 2015 Omnibus Incentive Plan. | |
[2] | Excludes less than 1 share of accrued incremental dividend equivalent rights on outstanding PSUs granted under the Company's 2015 Omnibus Incentive Plan |
Fair Value (Details)
Fair Value (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2019 | Dec. 01, 2018 | |
Fair Value [Abstract] | ||
Fair value remeasurement of non-financial assets on non-recurring basis | $ 0 | $ 0 |
Fair value remeasurement of non-financial liabilities on non-recurring basis | $ 0 | $ 0 |
Debt (Revolving Credit Faciliti
Debt (Revolving Credit Facilities) (Narrative) (Details) | 3 Months Ended | ||
Nov. 30, 2019USD ($)agreement | Dec. 01, 2018USD ($)agreement | Aug. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||
Borrowing rate under Credit Facility | 2.57% | 3.01% | |
Borrowings under the revolving credit facilities | $ 69,000,000 | $ 245,000,000 | |
Repayments of debt | 107,000,000 | $ 259,000,000 | |
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 | ||
Uncommitted Bank Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Number of credit facilities | agreement | 5 | 6 | |
Credit facility, maximum borrowing capacity | $ 410,000,000 | $ 440,000,000 | |
Outstanding balance | $ 117,000,000 | $ 155,000,000 |
Debt (Shelf Facility Agreements
Debt (Shelf Facility Agreements) (Narrative) (Details) | 3 Months Ended |
Nov. 30, 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 |
Series 2018A Notes [Member] | |
Line of Credit Facility [Line Items] | |
Principal amount | $ 20,000,000 |
Interest rate | 3.22% |
Maturity date | Jun. 11, 2020 |
Series 2018B Notes [Member] | |
Line of Credit Facility [Line Items] | |
Principal amount | $ 20,000,000 |
Interest rate | 3.42% |
Maturity date | Jun. 11, 2021 |
Senior Notes Due January 2023 [Member] | |
Line of Credit Facility [Line Items] | |
Principal amount | $ 50,000,000 |
Interest rate | 3.04% |
Maturity date | Jan. 12, 2023 |
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 |
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 |
Debt (Financing Arrangements) (
Debt (Financing Arrangements) (Narrative) (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Capital Leased Assets [Line Items] | |
Borrowings under financing obligations | $ 1,164 |
IT Equipment And Software [Member] | |
Capital Leased Assets [Line Items] | |
Property, plant and equipment, gross | 1,328 |
Accumulated amortization | $ 172 |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) | 3 Months Ended | ||
Nov. 30, 2019 | Aug. 31, 2019 | ||
Debt Instrument [Line Items] | |||
Financing arrangements | $ 1,074,000 | $ 82,000 | |
Less: unamortized debt issuance costs | (1,064,000) | (1,169,000) | |
Total debt, excluding obligations under finance leases | 402,010,000 | 438,913,000 | |
Less: current portion | [1] | (137,687,000) | (174,688,000) |
Total long-term debt, excluding obligations under finance leases | $ 264,323,000 | 264,225,000 | |
Committed Bank Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | Apr. 14, 2022 | ||
Uncommitted Bank Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 117,000,000 | 155,000,000 | |
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 | |
Interest rate | 2.65% | ||
Maturity date | Jul. 28, 2023 | ||
Senior Notes Series B [Member] | Private Placement Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 100,000,000 | 100,000,000 | |
Interest rate | 2.90% | ||
Maturity date | Jul. 28, 2026 | ||
Senior Notes Due June 11, 2025 [Member] | Private Placement Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 20,000,000 | $ 20,000,000 | |
Interest rate | 3.79% | ||
Maturity date | Jun. 11, 2025 | ||
[1] | Net of unamortized debt issuance costs expected to be amortized in the next twelve months. |
Leases (Components Of Lease Exp
Leases (Components Of Lease Expense) (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 6,172 |
Short-term lease cost | 264 |
Amortization of leased assets | 262 |
Interest on leased liabilities | 25 |
Total Lease Cost | $ 6,723 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Aug. 31, 2019 | ||
Leases [Abstract] | ||||
Operating lease assets | $ 59,385 | |||
Finance lease assets | [1] | 4,348 | $ 2,958 | |
Total leased assets | 63,733 | 2,958 | ||
Current operating lease liabilities | 21,039 | |||
Current finance lease liabilities | 1,190 | 765 | ||
Noncurrent operating lease liabilities | 37,977 | |||
Noncurrent finance lease liabilities | 3,260 | 2,206 | ||
Total lease liabilities | $ 63,466 | [2] | 2,971 | |
Weighted average remaining lease term (years), Operating leases | 4 years | |||
Weighted average remaining lease term (years), Finance leases | 3 years 8 months 12 days | |||
Weighted average discount rate, Operating leases | 3.50% | |||
Weighted average discount rate, Finance leases | 2.60% | |||
Finance lease right of use assets, Accumulated amortization | $ 473 | $ 1,398 | ||
[1] | Finance lease assets are net of accumulated amortization of $ 473 and $ 1,398 as of November 30, 2019 and August 31, 2019 | |||
[2] | Includes the current portion of $ 21,039 for operating leases and $ 1,190 for finance leases |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating Cash Outflows from Operating Leases | $ 6,052 |
Operating Cash Outflows from Finance Leases | 25 |
Financing Cash Outflows from Finance Leases | 160 |
Leased assets obtained in exchange for new operating lease liabilities | 3,624 |
Leased assets obtained in exchange for new finance lease liabilities | $ 1,730 |
Leases (Schedule Of Future Leas
Leases (Schedule Of Future Lease Payments) (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Aug. 31, 2019 | ||
Operating Leases | ||||
2020 (excluding three months) | $ 17,400 | |||
2021 | 19,114 | |||
2022 | 10,928 | |||
2023 | 5,513 | |||
2024 | 4,370 | |||
Thereafter | 6,393 | |||
Total Lease Payments | 63,718 | |||
Less: Imputed Interest | 4,702 | |||
Present Value of Lease Liabilities | [1] | 59,016 | ||
Finance Leases | ||||
2020 (excluding three months) | 966 | |||
2021 | 1,289 | |||
2022 | 1,257 | |||
2023 | 996 | |||
2024 | 152 | |||
Thereafter | 3 | |||
Total Lease Payments | 4,663 | |||
Less: Imputed Interest | 213 | |||
Present Value of Lease Liabilities | [1] | 4,450 | ||
Total | ||||
2020 (excluding three months) | 18,366 | |||
2021 | 20,403 | |||
2022 | 12,185 | |||
2023 | 6,509 | |||
2024 | 4,522 | |||
Thereafter | 6,396 | |||
Total Lease Payments | 68,381 | |||
Less: Imputed Interest | 4,915 | |||
Total lease liabilities | 63,466 | [1] | $ 2,971 | |
Current portion of operating lease liabilities | 21,039 | |||
Current finance lease liabilities | $ 1,190 | $ 765 | ||
[1] | Includes the current portion of $ 21,039 for operating leases and $ 1,190 for finance leases |
Leases (Schedule Of Future Le_2
Leases (Schedule Of Future Lease Payments Under Prior Standard) (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2020 | $ 22,463 |
2021 | 18,022 |
2022 | 9,923 |
2023 | 5,184 |
2024 | 4,083 |
Thereafter | 6,023 |
Total | 65,698 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2020 | 792 |
2021 | 812 |
2022 | 781 |
2023 | 604 |
2024 | 106 |
Total minimum lease payments | 3,095 |
Less: amount representing interest | 124 |
Present value of minimum lease payments | 2,971 |
Less: current portion | 765 |
Present value of minimum lease payments less current maturities | $ 2,206 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Dec. 01, 2018 | |
Components Of Shareholders Equity [Line Items] | ||
Shares repurchased by the company for associates' tax withholding liability associated with share-based compensation | 40 | |
Treasury stock reissued to fund plan, shares | 16 | 13 |
Class A Common Stock [Member] | ||
Components Of Shareholders Equity [Line Items] | ||
Common stock shares repurchased | 41 | 778 |
Purchase of treasury stock | $ 3,009 | $ 63,527 |
Number of shares authorized for repurchase | 1,157 | |
Treasury Stock [Member] | Class A Common Stock [Member] | ||
Components Of Shareholders Equity [Line Items] | ||
Purchase of treasury stock | $ 3,009 | $ 3,200 |
Severance And Separation Bene_2
Severance And Separation Benefits (Details) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019USD ($)employee | Aug. 31, 2019USD ($) | |
Severance And Separation Benefits [Abstract] | ||
Number of associates with accrued severance benefits | employee | 125 | |
Severance and separation benefit charges | $ 2,571 | |
Stock compensation expense, accelerated vesting | 87 | |
Cash payments | 6,436 | |
Severance and separation benefit balance | $ 2,092 | $ 6,044 |
Product Warranties (Details)
Product Warranties (Details) | 3 Months Ended |
Nov. 30, 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) | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Income Taxes [Abstract] | |
Changes in unrecognized tax benefits | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Thousands | Dec. 17, 2019 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||
Dividend payable date | Feb. 5, 2020 | |
Dividends record date | Jan. 22, 2020 | |
Post-closing working capital adjustment paid out | $ 2,286 | |
Regular Dividends [Member] | ||
Subsequent Event [Line Items] | ||
Dividends payable per share | $ 0.75 | |
Dividend payable amount | $ 41,500 | |
Special Dividends [Member] | ||
Subsequent Event [Line Items] | ||
Dividends payable per share | $ 5 | |
Dividend payable amount | $ 277,000 |