Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
May 29, 2021 | Jun. 15, 2021 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 29, 2021 | |
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 $0.001 per share | |
Trading Symbol | MSM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001003078 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --08-28 | |
Amendment Flag | false | |
Class A Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 46,992,754 | |
Class B Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,654,010 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 29, 2021 | Aug. 29, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 27,429 | $ 125,211 |
Accounts receivable, net of allowance for credit losses of $18,682 and $18,249, respectively | 564,963 | 491,743 |
Inventories | 598,328 | 543,106 |
Prepaid expenses and other current assets | 116,947 | 77,710 |
Total current assets | 1,307,667 | 1,237,770 |
Property, plant and equipment, net | 296,200 | 301,979 |
Goodwill | 679,920 | 677,579 |
Identifiable intangibles, net | 97,610 | 104,873 |
Operating lease assets | 39,401 | 56,173 |
Other assets | 3,520 | 4,056 |
Total assets | 2,424,318 | 2,382,430 |
Current Liabilities: | ||
Current portion of debt including obligations under finance leases | 412,547 | 122,248 |
Current portion of operating lease liabilities | 14,570 | 21,815 |
Accounts payable | 195,858 | 125,775 |
Accrued expenses and other current liabilities | 145,841 | 138,895 |
Total current liabilities | 768,816 | 408,733 |
Long-term debt including obligations under finance leases | 346,458 | 497,018 |
Noncurrent operating lease liabilities | 26,008 | 34,379 |
Deferred income taxes and tax uncertainties | 121,715 | 121,727 |
Other noncurrent liabilities | 9,443 | |
Total liabilities | 1,272,440 | 1,061,857 |
Commitments and Contingencies | ||
Shareholders’ Equity: | ||
Preferred Stock; $0.001 par value; 5,000,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 735,562 | 690,739 |
Retained earnings | 528,766 | 749,515 |
Accumulated other comprehensive loss | (14,780) | (21,418) |
Class A treasury stock, at cost, 1,234,184 and 1,227,192 shares, respectively | (104,951) | (103,948) |
Total MSC Industrial shareholders’ equity | 1,144,654 | 1,314,945 |
Noncontrolling interest | 7,224 | 5,628 |
Total shareholders' equity | 1,151,878 | 1,320,573 |
Total liabilities and shareholders' equity | 2,424,318 | 2,382,430 |
Class A Common Stock [Member] | ||
Shareholders’ Equity: | ||
Common stock | 48 | 47 |
Class B Common Stock [Member] | ||
Shareholders’ Equity: | ||
Common stock | $ 9 | $ 10 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
May 29, 2021 | Aug. 29, 2020 | |
Accounts receivable, allowance for doubtful accounts | $ 18,682 | $ 18,249 |
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 | 1,234,184 | 1,227,192 |
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 | 48,244,693 | 46,989,719 |
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 | 8,664,901 | 9,844,856 |
Common stock, shares outstanding | 8,664,901 | 9,844,856 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | |
Condensed Consolidated Statements Of Income [Abstract] | ||||
Net sales | $ 866,294 | $ 834,972 | $ 2,412,193 | $ 2,444,667 |
Cost of goods sold | 499,823 | 481,010 | 1,427,653 | 1,412,457 |
Gross profit | 366,471 | 353,962 | 984,540 | 1,032,210 |
Operating expenses | 257,336 | 242,751 | 741,156 | 748,519 |
Impairment loss (loss recovery) | (20,840) | 5,886 | ||
Restructuring costs | 1,349 | 1,359 | 26,943 | 5,871 |
Income from operations | 128,626 | 109,852 | 210,555 | 277,820 |
Other income (expense): | ||||
Interest expense | (3,696) | (5,451) | (10,632) | (12,117) |
Interest income | 15 | 173 | 52 | 251 |
Other income (expense), net | 1,131 | (560) | 1,724 | (509) |
Total other expense | (2,550) | (5,838) | (8,856) | (12,375) |
Income before provision for income taxes | 126,076 | 104,014 | 201,699 | 265,445 |
Provision for income taxes | 31,141 | 25,900 | 49,639 | 66,323 |
Net income | 94,935 | 78,114 | 152,060 | 199,122 |
Less: Net income attributable to noncontrolling interest | 501 | 411 | 1,087 | 501 |
Net income attributable to MSC Industrial | $ 94,434 | $ 77,703 | $ 150,973 | $ 198,621 |
Net income per common share: | ||||
Basic | $ 1.69 | $ 1.40 | $ 2.70 | $ 3.58 |
Diluted | $ 1.68 | $ 1.40 | $ 2.69 | $ 3.57 |
Weighted-average shares used in computing net income per common share: | ||||
Basic | 55,944 | 55,563 | 55,814 | 55,435 |
Diluted | 56,352 | 55,599 | 56,139 | 55,581 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | ||
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | |||||
Net income, as reported | $ 94,935 | $ 78,114 | $ 152,060 | $ 199,122 | |
Other comprehensive income, net of tax: | |||||
Foreign currency translation adjustments | 4,325 | (4,065) | 7,147 | (3,247) | |
Comprehensive income | [1] | 99,260 | 74,049 | 159,207 | 195,875 |
Comprehensive income attributable to noncontrolling interest: | |||||
Net Income | (501) | (411) | (1,087) | (501) | |
Foreign currency translation adjustments | (299) | 536 | (509) | 441 | |
Comprehensive income attributable to MSC Industrial | $ 98,460 | $ 74,174 | $ 157,611 | $ 195,815 | |
[1] | There were no material taxes associated with other comprehensive income during the thirteen- and thirty-nine-week periods ended May 29, 2021 and May 30, 2020. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | |
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]Regular Dividends [Member] | Class A Common Stock [Member]Retained Earnings [Member]Special Dividends [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]Regular Dividends [Member] | Class B Common Stock [Member]Retained Earnings [Member]Special Dividends [Member] | Class B Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance, Value at Aug. 31, 2019 | $ 46 | $ 10 | $ 659,226 | $ 946,651 | $ (22,776) | $ (104,607) | $ 5,329 | |||||||||
Foreign Currency Translation Adjustment | (2,806) | (441) | $ (3,247) | |||||||||||||
Net Income | 198,621 | 501 | 198,621 | |||||||||||||
Associate Incentive Plans | 1 | 26,756 | 3,254 | |||||||||||||
Repurchase of Class A common stock, Value | $ (3,236) | $ (3,236) | ||||||||||||||
Exchange of Class B common stock for Class A common stock, value | ||||||||||||||||
Cash dividends declared on common stock | $ (102,068) | $ (226,984) | $ (22,783) | $ (50,650) | ||||||||||||
Dividend equivalents declared, net of cancellations | (3,752) | |||||||||||||||
Balance, Value at May. 30, 2020 | 47 | 10 | 685,982 | 739,035 | (25,582) | (104,589) | $ 1,294,903 | 5,389 | 1,300,292 | |||||||
Dividends declared per common share | $ 7.25 | $ 7.25 | ||||||||||||||
Balance, Value at Feb. 29, 2020 | 47 | 10 | 681,657 | 703,396 | (22,053) | (105,758) | 5,514 | |||||||||
Foreign Currency Translation Adjustment | (3,529) | (536) | (4,065) | |||||||||||||
Net Income | 77,703 | 411 | 77,703 | |||||||||||||
Associate Incentive Plans | 4,325 | 1,197 | ||||||||||||||
Repurchase of Class A common stock, Value | (28) | $ (28) | ||||||||||||||
Exchange of Class B common stock for Class A common stock, value | ||||||||||||||||
Cash dividends declared on common stock | (34,129) | (7,541) | ||||||||||||||
Dividend equivalents declared, net of cancellations | (394) | |||||||||||||||
Balance, Value at May. 30, 2020 | 47 | 10 | 685,982 | 739,035 | (25,582) | (104,589) | 1,294,903 | 5,389 | 1,300,292 | |||||||
Dividends declared per common share | $ 0.75 | 0.75 | ||||||||||||||
Balance, Value at Aug. 29, 2020 | 47 | 10 | 690,739 | 749,515 | (21,418) | (103,948) | 5,628 | 1,320,573 | ||||||||
Foreign Currency Translation Adjustment | 6,638 | 509 | 7,147 | |||||||||||||
Net Income | 150,973 | 1,087 | 150,973 | |||||||||||||
Associate Incentive Plans | 44,908 | 2,604 | ||||||||||||||
Repurchase and retirement of Class A common stock, Value | (85) | (47,008) | ||||||||||||||
Repurchase of Class A common stock, Value | (3,607) | |||||||||||||||
Exchange of Class B common stock for Class A common stock, value | 1 | (1) | ||||||||||||||
Cash dividends declared on common stock | (105,195) | $ (163,511) | (20,512) | $ (31,840) | ||||||||||||
Dividend equivalents declared, net of cancellations | (3,656) | |||||||||||||||
Balance, Value at May. 29, 2021 | 48 | 9 | 735,562 | 528,766 | (14,780) | (104,951) | 1,144,654 | 7,224 | 1,151,878 | |||||||
Dividends declared per common share | 5.75 | 5.75 | ||||||||||||||
Balance, Value at Feb. 27, 2021 | 48 | 9 | 712,750 | 523,757 | (18,806) | (105,645) | 6,424 | |||||||||
Foreign Currency Translation Adjustment | 4,026 | 299 | 4,325 | |||||||||||||
Net Income | 94,434 | 501 | 94,434 | |||||||||||||
Associate Incentive Plans | 22,897 | 782 | ||||||||||||||
Repurchase and retirement of Class A common stock, Value | (85) | (47,008) | ||||||||||||||
Repurchase of Class A common stock, Value | $ (88) | |||||||||||||||
Exchange of Class B common stock for Class A common stock, value | ||||||||||||||||
Cash dividends declared on common stock | $ (35,387) | $ (6,635) | ||||||||||||||
Dividend equivalents declared, net of cancellations | (395) | |||||||||||||||
Balance, Value at May. 29, 2021 | $ 48 | $ 9 | $ 735,562 | $ 528,766 | $ (14,780) | $ (104,951) | $ 1,144,654 | $ 7,224 | $ 1,151,878 | |||||||
Dividends declared per common share | $ 0.75 | $ 0.75 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
May 29, 2021 | May 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net income | $ 152,060 | $ 199,122 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 51,575 | 51,354 |
Non-cash operating lease cost | 11,650 | 16,852 |
Stock-based compensation | 13,407 | 12,463 |
Loss on disposal of property, plant and equipment | 460 | 278 |
Inventory write-down | 30,091 | |
Operating lease and fixed asset impairment due to restructuring | 15,819 | |
Provision for credit losses | 5,303 | 8,008 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (77,130) | (13,788) |
Inventories | (82,864) | (17,049) |
Prepaid expenses and other current assets | (38,658) | (17,082) |
Operating lease liabilities | (25,576) | (16,634) |
Other assets | 585 | 2,008 |
Accounts payable and accrued liabilities | 82,638 | (10,591) |
Total adjustments | (12,700) | 15,819 |
Net cash provided by operating activities | 139,360 | 214,941 |
Cash Flows from Investing Activities: | ||
Expenditures for property, plant and equipment | (37,598) | (35,920) |
Cash used in business acquisitions, net of cash acquired | (2,286) | |
Net cash used in investing activities | (37,598) | (38,206) |
Cash Flows from Financing Activities: | ||
Repurchases of common stock | (50,700) | (3,236) |
Payments of regular cash dividends | (125,707) | (124,851) |
Payments of special cash dividends | (195,351) | (277,634) |
Proceeds from sale of Class A Common Stock in connection with associate stock purchase plan | 3,112 | 3,287 |
Proceeds from exercise of Class A Common Stock options | 28,969 | 13,530 |
Borrowings under credit facilities | 505,000 | 1,012,200 |
Payments under credit facilities | (365,000) | (578,000) |
Proceeds from long-term debt | 100,000 | |
Payments on finance lease and financing obligations | (1,896) | (1,629) |
Other, net | 1,286 | 1,162 |
Net cash provided by (used in) financing activities | (200,287) | 144,829 |
Effect of foreign exchange rate changes on cash and cash equivalents | 743 | (457) |
Net increase (decrease) in cash and cash equivalents | (97,782) | 321,107 |
Cash and cash equivalents—beginning of period | 125,211 | 32,286 |
Cash and cash equivalents—end of period | 27,429 | 353,393 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes | 60,903 | 39,672 |
Cash paid for interest | $ 8,776 | $ 8,501 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
May 29, 2021 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | Note 1. Basis of Presentation The 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” or “MSC Industrial”) and in the opinion of management include all normal recurring material adjustments necessary to present fairly the Company’s financial position as of May 29, 2021 and August 29, 2020 , results of operations for the thirteen and thirty-nine weeks ended May 29, 2021 and May 30, 2020 , and cash flows for the thirty-nine weeks ended May 29, 2021 and May 30, 2020 . The financial information as of August 29, 2020 was derived from the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 29, 2020. 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, as amended, 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 audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 29, 2020. Fiscal Year The Company operates on a 52/53-week fiscal year ending on the Saturday closest to August 31. References to “fiscal year 2021” refer to the period from August 30, 2020 to August 28, 2021, which is a 52-week fiscal year. References to “fiscal year 2020” refer to the period from September 1, 2019 to August 29, 2020, which is a 52-week fiscal year. The fiscal quarters ended May 29, 2021 and May 30, 2020 refer to the thirteen weeks ended as of those dates. Principles of Consolidation The unaudited 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. Impact of COVID-19 The COVID-19 pandemic has impacted and may further impact the Company’s operations, and the operations of the Company’s suppliers and vendors, as a result of quarantines, facility closures, and travel and logistics restrictions. During the prior fiscal year, the Company experienced an increase in the volume of its sales of safety-related products. However, the Company has also realized lower product margins as well as inventory write-downs, each as a result of the COVID-19 pandemic, primarily due to the increased supply of competing products from manufacturers and an expected inability to sell excess inventory of safety-related products ordered from manufacturers earlier in the pandemic. During the second quarter of fiscal year 2021 , the Company incurred PPE-related inventory write-downs of $ 30,091 to reduce the carrying value of certain PPE-related inventory to its estimated net realizable value. The extent to which the COVID-19 pandemic will continue to impact the Company’s business, financial condition and results of operations will depend on future developments, which are highly uncertain and depend on, among other things, the duration, spread, severity, and impact of the COVID-19 pandemic and the success and speed of vaccination efforts both in the United States and globally, the effects of the COVID-19 pandemic on the Company’s customers, suppliers, and vendors and the remedial actions and stimulus measures adopted by local and federal governments, and the pace and the extent to which normal economic and operating conditions can resume. Therefore, the Company cannot reasonably estimate future impacts of the COVID-19 pandemic at this time. As the impact of the COVID-19 pandemic has begun to abate, and restrictions on business and commercial activity have been lifted, the economy in the United States has experienced acute increases in demand for certain products and services, including the demand for fuel, labor and certain products the Company sells or the inputs for such products. In some cases, this has led to a shortage of fuel, labor and of certain such products. While such shortages have not yet had a material impact on the Company’s business or results of operations, they may do so in the future and the Company cannot reasonably estimate the future impacts of such shortages at this time. Recently Adopted Accounting Pronouncements Effective August 30, 2020, the Company adopted the Financial Accounting Standards Board (the “FASB”) Accounting Standard Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires that an entity measure impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. The adoption of this guidance did not have a material impact on the Company’s unaudited Condensed Consolidated Financial Statements. Effective August 30, 2020, the Company adopted FASB ASU 2017-04, Intangibles – Goodwill and Other (Topic 350). This standard eliminates the second step from the goodwill impairment test and instead 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. The adoption of this guidance did not have a material impact on the Company’s unaudited Condensed Consolidated Financial Statements. Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities financial reporting burdens as the market transitions from LIBOR and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating the impact of the new guidance on its unaudited Condensed Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions related to the approach for intraperiod tax allocations, the calculation of income taxes in interim periods, and the recognition of deferred taxes for taxable goodwill. The guidance is effective for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal years, with early adoption permitted. The Company is required to apply this guidance in its fiscal year 2022 interim and annual financial statements. Currently, the Company does not expect this standard to have a material impact on its unaudited Condensed Consolidated Financial Statements and related disclosures. 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 have a material impact on the Company’s unaudited Condensed Consolidated Financial Statements. Reclassifications Certain prior period Operating expenses were reclassified into Restructuring costs within the Company’s unaudited Condensed Consolidated Statements of Income to conform to the current period presentation. These reclassifications did not affect income from operations in any period presented. Furthermore, prior period cash dividends declared on Class A and Class B Common Stock have been further disaggregated into regular and special cash dividends declared on Class A and Class B Common Stock to conform to the current period presentation within the Company’s unaudited Condensed Consolidated Statements of Shareholder’s Equity. These reclassifications did not impact total dividends declared in any period presented. |
Revenue
Revenue | 9 Months Ended |
May 29, 2021 | |
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 obligations. Substantially all of 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 $ 5,452 and $ 5,315 as of May 29, 2021 and August 29, 2020, respectively, and are reported as Accrued expenses and other current liabilities in the unaudited 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 Customers The Company offers customers sales incentives, which primarily consist of volume rebates, and upfront sign-on payments. These volume rebates and sign-on 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 $ 18,506 and $ 19,679 as of May 29, 2021 and August 29, 2020, respectively, and are included in Accrued expenses and other current liabilities in the unaudited 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 unaudited Condensed Consolidated Balance Sheets and were $ 3,042 and $ 3,762 as of May 29, 2021 and August 29, 2020, 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 obligations. The Company did no t have material unsatisfied performance obligations or contract assets or liabilities as of May 29, 2021 and August 29, 2020. 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 tables present the Company’s percentage of net sales by customer end-market for the thirteen- and thirty-nine-week periods ended May 29, 2021 and May 30, 2020: Thirteen Weeks Ended Thirteen Weeks Ended May 29, 2021 May 30, 2020 Manufacturing Heavy 48 % 40 % Manufacturing Light 21 % 19 % Government 9 % 15 % Retail/Wholesale 7 % 7 % Commercial Services 4 % 5 % Other (1) 11 % 14 % 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. Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended May 29, 2021 May 30, 2020 Manufacturing Heavy 47 % 45 % Manufacturing Light 20 % 22 % Government 10 % 10 % Retail/Wholesale 7 % 6 % Commercial Services 4 % 5 % 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- and thirty-nine-week periods ended May 29, 2021 and May 30, 2020: Thirteen Weeks Ended Thirteen Weeks Ended May 29, 2021 May 30, 2020 United States $ 813,049 94 % $ 795,865 96 % Mexico 26,051 3 % 19,305 2 % UK 14,688 2 % 10,019 1 % Canada 12,506 1 % 9,783 1 % Total net sales $ 866,294 100 % $ 834,972 100 % Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended May 29, 2021 May 30, 2020 United States $ 2,268,153 94 % $ 2,336,528 96 % Mexico 68,219 3 % 39,723 2 % UK 40,575 2 % 37,375 1 % Canada 35,246 1 % 31,041 1 % Total net sales $ 2,412,193 100 % $ 2,444,667 100 % |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
May 29, 2021 | |
Net Income Per Share [Abstract] | |
Net Income Per Share | Note 3: Net Income per Share Net income per share is computed by dividing net income by the weighted-average number of shares of Common Stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common stock equivalents outstanding during the period. The dilutive effect of potential shares of common stock are determined using the treasury stock method. The following table sets forth the computation of basic and diluted net income per common share under the treasury stock method for the thirteen and thirty-nine weeks ended May 29, 2021 and May 30, 2020. Thirteen Weeks Ended Thirty-Nine Weeks Ended May 29, May 30, May 29, May 30, 2021 2020 2021 2020 Numerator: Net income attributable to MSC Industrial as reported $ 94,434 $ 77,703 $ 150,973 $ 198,621 Denominator: Weighted-average shares outstanding for basic net income per share 55,944 55,563 55,814 55,435 Effect of dilutive securities 408 36 325 146 Weighted-average shares outstanding for diluted net income per share 56,352 55,599 56,139 55,581 Net income per share: Basic $ 1.69 $ 1.40 $ 2.70 $ 3.58 Diluted $ 1.68 $ 1.40 $ 2.69 $ 3.57 Potentially dilutive securities 3 1,933 884 1,417 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 the Company’s Class A Common Stock, and, therefore, their inclusion would be anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
May 29, 2021 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 4. Stock-Based Compensation The Company accounts for all share-based payments in accordance with Accounting Standards Codification Topic 718, “Compensation—Stock Compensation,” as subsequently amended. Stock - based compensation expense included in Operating expenses for the thirteen- and thirty-nine- week periods ended May 29, 2021 and May 30, 2020 was as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended May 29, May 30, May 29, May 30, 2021 2020 2021 2020 Stock options $ 539 $ 1,089 $ 1,760 $ 2,818 Restricted share awards — 1 — 185 Restricted stock units 3,486 2,970 10,604 8,885 Performance share units 325 171 883 385 Associate Stock Purchase Plan 63 54 160 190 Total 4,413 4,285 13,407 12,463 Deferred income tax benefit ( 1,094 ) ( 1,068 ) ( 3,298 ) ( 3,116 ) Stock-based compensation expense, net $ 3,319 $ 3,217 $ 10,109 $ 9,347 Stock Options The Company discontinued its grants of stock options in fiscal year 2020. The fair value of each option grant in previous fiscal years was estimated on the date of grant using the Black - Scholes option pricing model. A summary of the Company’s stock option activity for the thirty-nine - week period ended May 29, 2021 is as follows: Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding on August 29, 2020 1,539 $ 75.76 Granted — — Exercised ( 392 ) 73.88 Canceled/Forfeited ( 8 ) 79.63 Outstanding on May 29, 2021 1,139 $ 76.38 2.9 $ 20,525 Exercisable on May 29, 2021 900 $ 74.89 2.5 $ 17,549 The unrecognized share - based compensation cost related to stock option expense at May 29, 2021 was $ 1,906 and will be recognized over a weighted-average period of 1.0 year. The total intrinsic value of options exercised, which represents the difference between the exercise price and the market value of the Company’s Class A Common Stock measured at each individual exercise date, during the thirty-nine- week periods ended May 29, 2021 and May 30, 2020 was $ 5,719 and $ 2,574 , respectively. Performance Share Units Beginning in fiscal year 2020, the Company began granting performance share units (“PSUs”) as part of its long-term stock-based compensation program. PSUs cliff vest after a three year performance period based on the achievement of specific performance goals as set forth in the applicable award agreement. Based on the extent to which the targets are achieved, vested shares may range from 0 % to 200 % of the target award amount. The following table summarizes all transactions related to PSUs under the MSC Industrial Direct Co., Inc. 2015 Omnibus Incentive Plan (the “2015 Omnibus Incentive Plan”) (based on target award amounts) for the thirty-nine- week period ended May 29, 2021: Shares Weighted-Average Grant Date Fair Value Non-vested PSUs at August 29, 2020 28 $ 76.32 Granted 31 74.79 Vested — — Canceled/Forfeited ( 1 ) 75.55 Non-vested PSUs at May 29, 2021 (1) 58 $ 75.52 (1) Excludes 7 shares of accrued incremental dividend equivalent rights on outstanding PSUs granted under the 2015 Omnibus Incentive Plan. The fair value of each PSU is the closing stock price on the New York Stock Exchange (the “NYSE”) of the Company’s Class A Common Stock on the date of grant. Upon vesting, subject to the achievement of specific 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, if at all. 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 to the award recipient in the form of unrestricted Class A 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 May 29, 2021 was $ 2,839 and is expected to be recognized over a weighted-average period of 2.0 years. Restricted Stock Units A summary of the Company’s non-vested restricted stock unit (“RSU”) award activity under the 2015 Omnibus Incentive Plan for the thirty-nine-week period ended May 29, 2021 is as follows: Shares Weighted-Average Grant Date Fair Value Non-vested RSUs at August 29, 2020 482 $ 76.73 Granted 235 75.16 Vested ( 162 ) 74.68 Canceled/Forfeited ( 21 ) 76.76 Non-vested RSUs at May 29, 2021 (1) 534 $ 76.66 (1) Excludes approximately 80 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the 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, if at all. 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 to the award recipient in the form of unrestricted Class A Common Stock on the vesting dates of the underlying RSUs. The unrecognized share-based compensation cost related to the RSUs at May 29, 2021 was $ 32,064 and is expected to be recognized over a weighted-average period of 2.8 years. |
Fair Value
Fair Value | 9 Months Ended |
May 29, 2021 | |
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 May 29, 2021 and August 29, 2020. During the thirty-nine-week periods ended May 29, 2021 and May 30, 2020, the Company had no material remeasurements of non-financial assets or liabilities at fair value on a non-recurring basis subsequent to their initial recognition. Assets Held for Sale The Company classifies an asset as held for sale when management, having the authority to approve the action, commits to a plan to sell the asset, the sale is probable within one year, and the asset is available for immediate sale in its present condition. The Company also considers whether an active program to locate a buyer has been initiated, whether the asset is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures an asset that is classified as held for sale at the lower of its carrying amount or fair value less costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized until the date of sale. The Company assesses the fair value of an asset less costs to sell each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying amount of the asset, as long as the new carrying amount does not exceed the carrying amount of the asset at the time it was initially classified as held for sale. Assets are not depreciated or amortized while they are classified as held for sale. In December 2020, the Company announced plans to relocate its Long Island Customer Service Center (“CSC”) to a smaller facility in Melville, New York. During the first quarter of fiscal year 2021, t he Company commenced plans to sell its 170,000 -square foot Long Island CSC in Melville, New York. The Company subsequently entered into an Agreement of Sale to sell the Long Island CSC. This transaction is currently within an initial due diligence period. As of May 29, 2021, the related assets had a carrying value of approximately $ 15,300 and are included in Property, plant and equipment, net on the unaudited Condensed Consolidated Balance Sheet as of such date. As a result of the above, the Company determined that all of the criteria to classify the building as held for sale had been met as of May 29, 2021. Fair value was determined based upon the anticipated sales price of these assets based on current market conditions, and assumptions made by management, which may differ from actual results and may result in an impairment if market conditions deteriorate. No impairment charge was recorded as the fair value less costs to sell was in excess of the carrying amount of the net assets. |
Debt
Debt | 9 Months Ended |
May 29, 2021 | |
Debt [Abstract] | |
Debt | Note 6. Debt Debt at May 29, 2021 and August 29, 2020 consisted of the following: May 29, August 29, 2021 2020 Revolving Credit Facility $ 187,000 $ 250,000 Uncommitted Credit Facilities 204,200 1,200 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 2.60 % Senior Notes, due March 5, 2027 50,000 50,000 3.04 % Senior Notes, due January 12, 2023 (1) 50,000 50,000 3.42 % Series 2018B Notes, due June 11, 2021 (1) 20,000 20,000 2.40 % Series 2019A Notes, due March 5, 2024 (1) 50,000 50,000 Financing arrangements 551 194 Less: unamortized debt issuance costs ( 510 ) ( 843 ) Total debt, excluding obligations under finance leases $ 756,241 $ 615,551 Less: current portion ( 411,256 ) (2) ( 120,986 ) (3) Total long-term debt, excluding obligations under finance leases $ 344,985 $ 494,565 (1) Represents private placement debt issued under Shelf Facility Agreements (as defined below). (2) The May 29, 2021 balance consists of $ 204,200 from the Uncommitted Credit Facilities (as defined below), $ 187,000 from the Revolving Credit Facility (as defined below), $ 20,000 from the 3.42 % Series 2018B Notes, due June 11, 2021, $ 446 from financing arrangements, and net of $ 390 unamortized debt issuance costs expected to be amortized in the next 12 months. (3) The August 29, 2020 balance consists of $ 100,000 from the Revolving Credit Facility, $ 1,200 from the Uncommitted Credit Facilities, $ 20,000 from the 3.42 % Series 2018B Notes, due June 11, 2021, $ 194 from financing arrangements, and net of $ 408 unamortized debt issuance costs expected to be amortized in the next 12 months. Revolving Credit Facility The Company has a $ 600,000 committed credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility, which matures on April 14, 2022 , provides for a five year unsecured revolving loan facility. The interest rate for borrowings under the Revolving Credit Facility is based on either LIBOR or a base rate, plus a spread based on the Company’s leverage ratio at the end of each fiscal reporting quarter. Depending 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 Revolving Credit Facility bear interest based on LIBOR with one-month interest periods. The Revolving Credit Facility permits up to $ 50,000 to be used to fund letters of credit. Outstanding letters of credit under the Revolving Credit Facility were $ 4,235 and $ 16,742 at May 29, 2021 and August 29, 2020, respectively. Uncommitted Credit Facilities During fiscal year 2021, the Company entered into two uncommitted credit facilities which, together with the existing, uncommitted credit facility entered into during fiscal year 2020 (the “Uncommitted Credit Facilities”), total $ 205,000 in aggregate maximum uncommitted availability, under which $ 204,200 was outstanding at May 29, 2021. Borrowings under the Uncommitted Credit Facilities are due at the end of the applicable interest period, which is typically one month but may be up to six months and may be rolled over to a new interest period at the option of the applicable lender. The Company’s lenders have, in the past, been willing to roll over the principal amount outstanding under the Uncommitted Credit Facilities at the end of each interest period but may not do so in the future. Each Uncommitted Credit Facility matures within one year of entering into such Uncommitted Credit Facility and contains certain limited covenants which are substantially the same as the limited covenants contained in the Revolving Credit Facility. All of the Uncommitted Credit Facilities are unsecured and rank equally in right of payment with the Company’s other unsecured indebtedness. Because the interest rates on the Uncommitted Credit Facilities are often lower than the interest rates which are available on the Company’s other sources of financing, the Company has used, and intends to use in the future, the Uncommitted Credit Facilities for opportunistic refinancing of the Company’s existing indebtedness. The Company does not presently view the Uncommitted Credit Facilities as sources of incremental debt financing of the Company due to the uncommitted nature of the Uncommitted Credit Facilities but reserves the right to use the Uncommitted Credit Facilities to incur additional debt where appropriate under the then existing credit market conditions. The interest rate on the Uncommitted Credit 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 $ 204,200 outstanding balance at May 29, 2021 and the $ 1,200 outstanding balance at August 29, 2020 under the Uncommitted Credit Facilities and the $ 187,000 outstanding balance at May 29, 2021 and the $ 100,000 outstanding balance at August 29, 2020 under the Revolving Credit Facility are included in the Current portion of debt including obligations under finance leases on the Company’s unaudited Condensed Consolidated Balance Sheets. During the thirty-nine-week period ended May 29, 2021, the Company borrowed an aggregate $ 505,000 and repaid an aggregate $ 365,000 under the Credit Facilities. As of May 29, 2021 and August 29, 2020, the weighted-average interest rates on borrowings under all of its credit facilities were 1.18 % and 1.42 %, 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 ; in June 2018, the Company completed the issuance and sale of $ 20,000 aggregate principal amount of 3.79 % Senior Notes, due June 11, 2025 ; and, in March 2020, the Company completed the issuance and sale of $ 50,000 aggregate principal amount of 2.60 % Senior Notes, due March 5, 2027 (collectively, the “Private Placement Debt”). Interest is payable semiannually at the fixed stated interest rates. All of the Private Placement Debt is unsecured. Shelf Facility Agreements In January 2018, the Company entered into Note Purchase and Private Shelf Agreements with Metropolitan Life Insurance Company (the “Met Life Note Purchase Agreement”) and PGIM, Inc. (the “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 unsecured senior notes, at a fixed rate. 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 unsecured senior notes, at a fixed rate. As of May 29, 2021, the uncommitted availability under each of the Met Life Note Purchase Agreement and the Prudential Note Purchase Agreement was $ 180,000 and $ 200,000 , respectively. In June 2021, the Company paid $ 20,000 to satisfy its obligation on the Series 2018B Notes associated with the Met Life Note Purchase Agreement referenced above. Each of the Credit Facilities, the Private Placement Debt and the 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, the Private Placement Debt, and the Shelf Facility Agreements. At May 29, 2021, the Company was in compliance with the operating and financial covenants of the Credit Facilities, the Private Placement Debt and the 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 upon the terms agreed with the applicable vendor. During the thirty- nine -week period ended May 29, 2021, the Company entered into financing arrangements related to certain information technology equipment and software totaling $ 1,286 . |
Leases
Leases | 9 Months Ended |
May 29, 2021 | |
Leases [Abstract] | |
Leases | Note 7. Leases The Company’s lease portfolio includes certain real estate (branch offices, customer fulfillment centers, and regional inventory 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 it is 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- and thirty-nine-week periods ended May 29, 2021 and May 30, 2020, the variable lease cost was a benefit due to low current interest rates. 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. In the second quarter of fiscal year 2021, the Company announced an enhanced customer support model, including a transition from the branch office network to virtual customer care hubs. This transition included the closure of 73 branch offices, all of which were under operating leases. As a result, the Company recorded an impairment charge of $ 14,458 for impacted operating lease assets, net of gains related to settlement of lease liabilities, which is included in Restructuring costs on the unaudited Condensed Consolidated Statements of Income for the thirty-nine weeks ended May 29, 2021. See Note 9, “Restructuring Costs” for additional information. The components of lease cost for the thirteen- and thirty-nine-week periods ended May 29, 2021 and May 30, 2020 were as follows: Thirteen Weeks Ended Thirteen Weeks Ended May 29, 2021 May 30, 2020 Operating lease cost $ 5,118 $ 6,592 Variable lease benefit ( 605 ) ( 368 ) Short-term lease cost 262 197 Finance lease cost: Amortization of leased assets 322 333 Interest on leased liabilities 20 29 Total Lease Cost $ 5,117 $ 6,783 Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended May 29, 2021 May 30, 2020 Operating lease cost $ 17,984 $ 18,952 Variable lease benefit ( 1,626 ) ( 459 ) Short-term lease cost 665 681 Finance lease cost: Amortization of leased assets 966 906 Interest on leased liabilities 65 84 Total Lease Cost $ 18,054 $ 20,164 Supplemental balance sheet information relating to operating and finance leases is as follows: As of As of May 29, August 29, Classification 2021 2020 Assets Operating lease assets Operating lease assets $ 39,401 (2) $ 56,173 Finance lease assets (1) Property, plant and equipment, net 2,674 3,625 Total leased assets $ 42,075 $ 59,798 Liabilities Current Operating Current portion of operating lease liabilities $ 14,570 (2) $ 21,815 Finance Current portion of debt including obligations under finance leases 1,291 1,262 Noncurrent Operating Noncurrent operating lease liabilities 26,008 (2) 34,379 Finance Long-term debt including obligations under finance leases 1,473 2,453 Total lease liabilities $ 43,342 $ 59,909 (1) Finance lease assets are net of accumulated amortization of $ 2,405 and $ 1,439 as of May 29, 2021 and August 29, 2020, respectively. (2) During the thirty-nine-week period ended May 29, 2021, the Company recorded an impairment charge of $ 14,458 for impacted operating lease assets, net of gains related to settlement of lease liabilities, in Restructuring costs on the unaudited Condensed Consolidated Statements of Income. See Note 9, “Restructuring Costs” for additional information. As of As of May 29, May 30, 2021 2020 Weighted-average remaining lease term (in years) Operating Leases 4.5 3.9 Finance Leases 2.2 3.2 Weighted-average discount rate Operating Leases 3.5 % 3.4 % Finance Leases 2.7 % 2.7 % The following table sets forth supplemental cash flow information related to operating and finance leases: Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended May 29, 2021 May 30, 2020 Operating Cash Outflows from Operating Leases $ 18,742 $ 18,539 Operating Cash Outflows from Finance Leases 65 84 Financing Cash Outflows from Finance Leases 967 903 Leased assets obtained in exchange for new lease liabilities: Operating Leases $ 8,988 $ 13,854 Finance Leases 16 1,973 As of May 29, 2021, future lease payments were as follows: Fiscal Year (1) Operating Leases Finance Leases Total 2021 (includes fiscal fourth quarter only) $ 4,550 $ 344 $ 4,894 2022 13,741 1,347 15,088 2023 8,522 1,021 9,543 2024 5,116 156 5,272 2025 3,236 6 3,242 Thereafter 8,621 2 8,623 Total Lease Payments 43,786 2,876 46,662 Less: Imputed Interest 3,208 112 3,320 Present Value of Lease Liabilities (2) $ 40,578 $ 2,764 $ 43,342 (1) Future lease payments by fiscal year are based on contractual lease obligations (2) Includes the current portion of $ 14,570 for operating leases and $ 1,291 for finance leases |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
May 29, 2021 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 8. Shareholders’ Equity Common Stock Repurchases and Treasury Stock During fiscal year 1999, the Company’s Board of Directors established the MSC Stock Repurchase Plan, which the Company refers to as the “Repurchase Plan.” On January 8, 2008 and on October 21, 2011, the Company’s Board of Directors reaffirmed and replenished the Repurchase Plan. On January 9, 2018, the Company’s Board of Directors authorized the repurchase of an additional 2,000 shares of Class A Common Stock under the Repurchase Plan. As of May 29, 2021, the maximum number of shares authorized to be repurchased under the Repurchase Plan was 650 shares. During the thirteen- and thirty-nine-week periods ended May 29, 2021, the Company repurchased 508 and 558 shares of its Class A Common Stock for $ 47,181 and $ 50,700 , respectively. From these totals, 507 shares were immediately retired during the thirteen- and thirty-nine-week periods ended May 29, 2021 and one and 51 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 unaudited Condensed Consolidated Financial Statements for the thirteen- and thirty-nine-week periods ended May 29, 2021 . During the thirteen- and thirty-nine-week periods ended May 30, 2020, the Company repurchased 0.5 and 44 shares of its Class A Common Stock for $ 28 and $ 3,236 , respectively. 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 Company’s unaudited Condensed Consolidated Financial Statements for the thirteen- and thirty-nine-week periods ended May 30, 2020. On June 29, 2021, the Company’s Board of Directors approved a new share repurchase program (the “Share Repurchase Program”) to purchase up to 5,000 shares, which replaced the Repurchase Plan authorized during fiscal year 1999. There is no expiration date governing the period over which the Company can repurchase shares under this authorization. The Company reissued 13 and 44 shares of treasury stock during the thirteen- and thirty-nine-week periods ended May 29, 2021, respectively, and reissued 20 and 55 shares of treasury stock during the thirteen- and thirty-nine-week periods ended May 30, 2020, respectively, to fund the MSC Industrial Direct Co., Inc. Amended and Restated Associate Stock Purchase Plan. Dividends on Common Stock The Company paid aggregate cash dividends of $ 5.75 per common share totaling approximately $ 321,058 for the thirty-nine weeks ended May 29, 2021, which consisted of a special cash dividend of approximately $ 195,351 at $ 3.50 per share and regular cash dividends of approximately $ 125,707 at $ 2.25 per share . For the thirty-nine weeks ended May 30, 2020, the Company paid a special cash dividend of approximately $ 277,634 at $ 5.00 per share and regular cash dividends of approximately $ 124,851 at $ 2.25 per share. On June 29, 2021 , the Company’s Board of Directors declared a quarterly cash dividend of $ 0.75 per share payable on July 27, 2021 to shareholders of record at the close of business on July 13, 2021 . The dividend will result in a payout of approximately $ 41,735 , based on the number of shares outstanding at June 15, 2021. |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
May 29, 2021 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | Note 9. Restructuring Costs Enhanced Customer Support Model In the second quarter of fiscal year 2021, the Company announced an enhanced customer support model, including a transition from the branch office network to virtual customer care hubs. Along with this transition, the Company closed 73 branch offices and realigned certain existing locations from branch offices to regional inventory centers. Restructuring costs for the thirteen- and thirty-nine-week periods ended May 29, 2021 consist of impairment charges for operating lease assets, associate severance and separation costs, and other exit-related costs. Optimization of Company Operations Beginning in fiscal year 2019, the Company 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. Beginning in the second quarter of fiscal year 2020, the Company engaged consultants to assist in reviewing the optimization of the Company’s operations. As such, the Company extended voluntary and involuntary severance and separation benefits to certain associates in fiscal years 2019 through 2021 in order to facilitate its workforce realignment. This project is expected to continue through fiscal year 2021. The following table summarizes restructuring costs for both projects listed above: Thirteen Weeks Ended Thirty-Nine Weeks Ended May 29, May 30, May 29, May 30, 2021 2020 2021 2020 Operating lease asset impairment loss $ — $ — $ 17,411 $ — Settlement of lease liabilities (gain) ( 2,278 ) — ( 2,953 ) — Other exit-related costs 1,178 — 2,023 — Consulting-related costs 2,000 1,333 5,790 3,465 Associate severance and separation costs 442 26 4,421 2,316 Equity acceleration costs associated with severance 7 — 251 90 Total restructuring costs $ 1,349 $ 1,359 $ 26,943 $ 5,871 Liabilities associated with restructuring are included within Accrued expenses and other current liabilities on the unaudited Condensed Consolidated Balance Sheet as of May 29, 2021. The following table summarizes activity related to liabilities associated with restructuring: Consulting-Related Costs Severance and Separation Costs Total Balance at August 29, 2020 $ 4,063 $ 6,927 $ 10,990 Additions 5,790 4,421 10,211 Payments and other adjustments ( 7,210 ) ( 10,684 ) ( 17,894 ) Balance at May 29, 2021 $ 2,643 $ 664 $ 3,307 |
Asset Impairments
Asset Impairments | 9 Months Ended |
May 29, 2021 | |
Asset Impairments [Abstract] | |
Asset Impairments | Note 10. Asset Impairments PPE-Related Inventory Write-Down The Company has realized lower product margins as well as inventory write-downs, each as a result of the COVID-19 pandemic, primarily due to the increased supply of competing products from manufacturers and an expected inability to sell excess inventory of safety-related products ordered from manufacturers earlier in the COVID-19 pandem ic. During the second quarter of fiscal year 2021, the Company incurred PPE-related i nventory write-downs of $ 30,091 to re duce the carrying value of certain PPE-related inventory to its estimated net realizable value. Impairment Loss (Loss Recovery) To meet anticipated demand for PPE products during the COVID-19 pandemic, the Company purchased products from manufacturers outside its typical programs and under non-standard payment terms. Given the high demand for PPE products and related challenges in sourcing PPE products as well as the imperative to quickly obtain products based on customer demand, the Company used a number of distributors and brokers to source PPE products. In September 2020, the Company prepaid approximately $ 26,726 for the purchase of nitrile gloves to be sourced from manufacturers in Asia and experienced significant delays in obtaining possession of this PPE. The Company evaluated the potential recoverability of these assets and, as a result, recorded an impairment charge of $ 26,726 in the first quarter of fiscal year 2021 to reflect the fact that the Compan y would n ot ultimately obtain this PPE or recover its related prepay ment. During the thirteen weeks ended May 29, 2021, the Company entered into a legal settlement agreement with a vendor that was finalized in June 2021 and, as a result, recorded $ 20,840 of loss recovery in its unaudited Condensed Consolidated Statements of Income related to this PPE prepayment impairment as the Company determined that it was probable of receipt. In June 2021, the Company received the $ 20,840 loss recovery. The Company continues to pursue its legal avenues for recovery of the remaining prepayment. |
Product Warranties
Product Warranties | 9 Months Ended |
May 29, 2021 | |
Product Warranties [Abstract] | |
Product Warranties | Note 11. 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 30 day s to 90 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- and thirty-nine-week periods ended May 29, 2021 and May 30, 2020 was immaterial. |
Income Taxes
Income Taxes | 9 Months Ended |
May 29, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | Note 12. Income Taxes During the thirty-nine-week period ended May 29, 2021, there were no material changes in unrecognized tax benefits. On March 27 th , 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (“Cares Act”) which is intended to provide economic relief to those impacted by the COVID-19 pandemic. On March 11, 2021, President Biden signed the American Rescue Plan Act (“ARPA”). The ARPA includes several provisions, such as measures that extend and expand the Employee Retention Credit (“ERC”) provision, previously enacted under the CARES Act, through December 31, 2021.The Company is reviewing the ERC provision of the CARES Act and of the ARPA to determine eligibility and potential impact. The CARES Act provides for the deferral of the employer-paid portion of social security payroll taxes. The Company elected to defer the employer-paid portion of social security payroll taxes through December 31, 2020 of $ 18,886 , of which $ 9,443 will be remitted by December 31, 2021 and $ 9,443 will be remitted by December 31, 2022. The effective tax rate was 24.6 % for the thirty-nine-week period ended May 29, 2021, as compared to 25.0 % for the thirty-nine-week period ended May 30, 2020. The decrease in the effective tax rate was primarily due to discrete items during the thirty-nine-week period ended May 29, 2021, relating to a higher tax benefit from stock-based compensation and lower non-deductible travel and entertainment expenses due to the COVID-19 pandemic . |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
May 29, 2021 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | Note 13. Legal Proceedings In the ordinary course, there are various claims, lawsuits and pending actions against the Company incidental to the operation of its business. Although the outcome of these matters, both individually and in aggregate, 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 | 9 Months Ended |
May 29, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Events In June 2021, the Company acquired a majority ownership interest in Wm. F. Hurst Co., LLC, a Wichita, Kansas-based distributor of metalworking tools and supplies, for aggregate consideration of $ 15,200 , which is subject to finalizing post-closing working capital adjustments. Wm. F. Hurst Co., LLC has deep expertise and relationships in the aerospace industry, which will contribute to the growth of the Company’s metalworking base and serve as a center of excellence for expanding its technical capabilities in the aerospace sector. The Company holds an 80 % interest in the business, which will continue to do business under the Wm. F. Hurst brand. In June 2021, the Company paid $ 20,000 to satisfy its obligation on the Series 2018B Notes associated with the Met Life Note Purchase Agreement referenced above. The Company repurchased approximately 229 shares of its Class A Common Stock in the outside market for a total cost of approximately $ 20,373 during the period May 30 through June 21, 2021. These shares were immediately retired. On June 29, 2021, the Company’s Board of Directors approved the Share Repurchase Program to purchase up to 5,000 shares, which replaced the Repurchase Plan authorized during fiscal year 1999. There is no expiration date governing the period over which the Company can repurchase shares under the Share Repurchase Program. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 9 Months Ended |
May 29, 2021 | |
Basis Of Presentation [Abstract] | |
Fiscal Year | Fiscal Year The Company operates on a 52/53-week fiscal year ending on the Saturday closest to August 31. References to “fiscal year 2021” refer to the period from August 30, 2020 to August 28, 2021, which is a 52-week fiscal year. References to “fiscal year 2020” refer to the period from September 1, 2019 to August 29, 2020, which is a 52-week fiscal year. The fiscal quarters ended May 29, 2021 and May 30, 2020 refer to the thirteen weeks ended as of those dates. |
Principles Of Consolidation | Principles of Consolidation The unaudited 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. |
Impact Of COVID-19 | Impact of COVID-19 The COVID-19 pandemic has impacted and may further impact the Company’s operations, and the operations of the Company’s suppliers and vendors, as a result of quarantines, facility closures, and travel and logistics restrictions. During the prior fiscal year, the Company experienced an increase in the volume of its sales of safety-related products. However, the Company has also realized lower product margins as well as inventory write-downs, each as a result of the COVID-19 pandemic, primarily due to the increased supply of competing products from manufacturers and an expected inability to sell excess inventory of safety-related products ordered from manufacturers earlier in the pandemic. During the second quarter of fiscal year 2021 , the Company incurred PPE-related inventory write-downs of $ 30,091 to reduce the carrying value of certain PPE-related inventory to its estimated net realizable value. The extent to which the COVID-19 pandemic will continue to impact the Company’s business, financial condition and results of operations will depend on future developments, which are highly uncertain and depend on, among other things, the duration, spread, severity, and impact of the COVID-19 pandemic and the success and speed of vaccination efforts both in the United States and globally, the effects of the COVID-19 pandemic on the Company’s customers, suppliers, and vendors and the remedial actions and stimulus measures adopted by local and federal governments, and the pace and the extent to which normal economic and operating conditions can resume. Therefore, the Company cannot reasonably estimate future impacts of the COVID-19 pandemic at this time. As the impact of the COVID-19 pandemic has begun to abate, and restrictions on business and commercial activity have been lifted, the economy in the United States has experienced acute increases in demand for certain products and services, including the demand for fuel, labor and certain products the Company sells or the inputs for such products. In some cases, this has led to a shortage of fuel, labor and of certain such products. While such shortages have not yet had a material impact on the Company’s business or results of operations, they may do so in the future and the Company cannot reasonably estimate the future impacts of such shortages at this time. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective August 30, 2020, the Company adopted the Financial Accounting Standards Board (the “FASB”) Accounting Standard Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires that an entity measure impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. The adoption of this guidance did not have a material impact on the Company’s unaudited Condensed Consolidated Financial Statements. Effective August 30, 2020, the Company adopted FASB ASU 2017-04, Intangibles – Goodwill and Other (Topic 350). This standard eliminates the second step from the goodwill impairment test and instead 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. The adoption of this guidance did not have a material impact on the Company’s unaudited Condensed Consolidated Financial Statements. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities financial reporting burdens as the market transitions from LIBOR and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating the impact of the new guidance on its unaudited Condensed Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions related to the approach for intraperiod tax allocations, the calculation of income taxes in interim periods, and the recognition of deferred taxes for taxable goodwill. The guidance is effective for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal years, with early adoption permitted. The Company is required to apply this guidance in its fiscal year 2022 interim and annual financial statements. Currently, the Company does not expect this standard to have a material impact on its unaudited Condensed Consolidated Financial Statements and related disclosures. 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 have a material impact on the Company’s unaudited Condensed Consolidated Financial Statements. |
Reclassifications | Reclassifications Certain prior period Operating expenses were reclassified into Restructuring costs within the Company’s unaudited Condensed Consolidated Statements of Income to conform to the current period presentation. These reclassifications did not affect income from operations in any period presented. Furthermore, prior period cash dividends declared on Class A and Class B Common Stock have been further disaggregated into regular and special cash dividends declared on Class A and Class B Common Stock to conform to the current period presentation within the Company’s unaudited Condensed Consolidated Statements of Shareholder’s Equity. These reclassifications did not impact total dividends declared in any period presented. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
May 29, 2021 | |
Revenue [Abstract] | |
Schedule Of Disaggregation Of Revenue | The following tables present the Company’s percentage of net sales by customer end-market for the thirteen- and thirty-nine-week periods ended May 29, 2021 and May 30, 2020: Thirteen Weeks Ended Thirteen Weeks Ended May 29, 2021 May 30, 2020 Manufacturing Heavy 48 % 40 % Manufacturing Light 21 % 19 % Government 9 % 15 % Retail/Wholesale 7 % 7 % Commercial Services 4 % 5 % Other (1) 11 % 14 % 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. Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended May 29, 2021 May 30, 2020 Manufacturing Heavy 47 % 45 % Manufacturing Light 20 % 22 % Government 10 % 10 % Retail/Wholesale 7 % 6 % Commercial Services 4 % 5 % 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- and thirty-nine-week periods ended May 29, 2021 and May 30, 2020: Thirteen Weeks Ended Thirteen Weeks Ended May 29, 2021 May 30, 2020 United States $ 813,049 94 % $ 795,865 96 % Mexico 26,051 3 % 19,305 2 % UK 14,688 2 % 10,019 1 % Canada 12,506 1 % 9,783 1 % Total net sales $ 866,294 100 % $ 834,972 100 % Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended May 29, 2021 May 30, 2020 United States $ 2,268,153 94 % $ 2,336,528 96 % Mexico 68,219 3 % 39,723 2 % UK 40,575 2 % 37,375 1 % Canada 35,246 1 % 31,041 1 % Total net sales $ 2,412,193 100 % $ 2,444,667 100 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
May 29, 2021 | |
Net Income Per Share [Abstract] | |
Computation Of Basic And Diluted Net Income Per Common Share Under Treasury Stock Method | Thirteen Weeks Ended Thirty-Nine Weeks Ended May 29, May 30, May 29, May 30, 2021 2020 2021 2020 Numerator: Net income attributable to MSC Industrial as reported $ 94,434 $ 77,703 $ 150,973 $ 198,621 Denominator: Weighted-average shares outstanding for basic net income per share 55,944 55,563 55,814 55,435 Effect of dilutive securities 408 36 325 146 Weighted-average shares outstanding for diluted net income per share 56,352 55,599 56,139 55,581 Net income per share: Basic $ 1.69 $ 1.40 $ 2.70 $ 3.58 Diluted $ 1.68 $ 1.40 $ 2.69 $ 3.57 Potentially dilutive securities 3 1,933 884 1,417 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
May 29, 2021 | |
Stock-Based Compensation [Abstract] | |
Schedule Of Stock-Based Compensation Expense | Thirteen Weeks Ended Thirty-Nine Weeks Ended May 29, May 30, May 29, May 30, 2021 2020 2021 2020 Stock options $ 539 $ 1,089 $ 1,760 $ 2,818 Restricted share awards — 1 — 185 Restricted stock units 3,486 2,970 10,604 8,885 Performance share units 325 171 883 385 Associate Stock Purchase Plan 63 54 160 190 Total 4,413 4,285 13,407 12,463 Deferred income tax benefit ( 1,094 ) ( 1,068 ) ( 3,298 ) ( 3,116 ) Stock-based compensation expense, net $ 3,319 $ 3,217 $ 10,109 $ 9,347 |
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 29, 2020 1,539 $ 75.76 Granted — — Exercised ( 392 ) 73.88 Canceled/Forfeited ( 8 ) 79.63 Outstanding on May 29, 2021 1,139 $ 76.38 2.9 $ 20,525 Exercisable on May 29, 2021 900 $ 74.89 2.5 $ 17,549 |
Summary Of Performance Share Unit Activity | Shares Weighted-Average Grant Date Fair Value Non-vested PSUs at August 29, 2020 28 $ 76.32 Granted 31 74.79 Vested — — Canceled/Forfeited ( 1 ) 75.55 Non-vested PSUs at May 29, 2021 (1) 58 $ 75.52 (1) Excludes 7 shares of accrued incremental dividend equivalent rights on outstanding PSUs granted under the 2015 Omnibus Incentive Plan. |
Summary Of Non-Vested Restricted Stock Unit Award Activity | Shares Weighted-Average Grant Date Fair Value Non-vested RSUs at August 29, 2020 482 $ 76.73 Granted 235 75.16 Vested ( 162 ) 74.68 Canceled/Forfeited ( 21 ) 76.76 Non-vested RSUs at May 29, 2021 (1) 534 $ 76.66 (1) Excludes approximately 80 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the 2015 Omnibus Incentive Plan. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
May 29, 2021 | |
Debt [Abstract] | |
Schedule Of Debt | May 29, August 29, 2021 2020 Revolving Credit Facility $ 187,000 $ 250,000 Uncommitted Credit Facilities 204,200 1,200 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 2.60 % Senior Notes, due March 5, 2027 50,000 50,000 3.04 % Senior Notes, due January 12, 2023 (1) 50,000 50,000 3.42 % Series 2018B Notes, due June 11, 2021 (1) 20,000 20,000 2.40 % Series 2019A Notes, due March 5, 2024 (1) 50,000 50,000 Financing arrangements 551 194 Less: unamortized debt issuance costs ( 510 ) ( 843 ) Total debt, excluding obligations under finance leases $ 756,241 $ 615,551 Less: current portion ( 411,256 ) (2) ( 120,986 ) (3) Total long-term debt, excluding obligations under finance leases $ 344,985 $ 494,565 (1) Represents private placement debt issued under Shelf Facility Agreements (as defined below). (2) The May 29, 2021 balance consists of $ 204,200 from the Uncommitted Credit Facilities (as defined below), $ 187,000 from the Revolving Credit Facility (as defined below), $ 20,000 from the 3.42 % Series 2018B Notes, due June 11, 2021, $ 446 from financing arrangements, and net of $ 390 unamortized debt issuance costs expected to be amortized in the next 12 months. (3) The August 29, 2020 balance consists of $ 100,000 from the Revolving Credit Facility, $ 1,200 from the Uncommitted Credit Facilities, $ 20,000 from the 3.42 % Series 2018B Notes, due June 11, 2021, $ 194 from financing arrangements, and net of $ 408 unamortized debt issuance costs expected to be amortized in the next 12 months. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
May 29, 2021 | |
Leases [Abstract] | |
Components Of Lease Cost | Thirteen Weeks Ended Thirteen Weeks Ended May 29, 2021 May 30, 2020 Operating lease cost $ 5,118 $ 6,592 Variable lease benefit ( 605 ) ( 368 ) Short-term lease cost 262 197 Finance lease cost: Amortization of leased assets 322 333 Interest on leased liabilities 20 29 Total Lease Cost $ 5,117 $ 6,783 Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended May 29, 2021 May 30, 2020 Operating lease cost $ 17,984 $ 18,952 Variable lease benefit ( 1,626 ) ( 459 ) Short-term lease cost 665 681 Finance lease cost: Amortization of leased assets 966 906 Interest on leased liabilities 65 84 Total Lease Cost $ 18,054 $ 20,164 |
Supplemental Balance Sheet Information | As of As of May 29, August 29, Classification 2021 2020 Assets Operating lease assets Operating lease assets $ 39,401 (2) $ 56,173 Finance lease assets (1) Property, plant and equipment, net 2,674 3,625 Total leased assets $ 42,075 $ 59,798 Liabilities Current Operating Current portion of operating lease liabilities $ 14,570 (2) $ 21,815 Finance Current portion of debt including obligations under finance leases 1,291 1,262 Noncurrent Operating Noncurrent operating lease liabilities 26,008 (2) 34,379 Finance Long-term debt including obligations under finance leases 1,473 2,453 Total lease liabilities $ 43,342 $ 59,909 (1) Finance lease assets are net of accumulated amortization of $ 2,405 and $ 1,439 as of May 29, 2021 and August 29, 2020, respectively. (2) During the thirty-nine-week period ended May 29, 2021, the Company recorded an impairment charge of $ 14,458 for impacted operating lease assets, net of gains related to settlement of lease liabilities, in Restructuring costs on the unaudited Condensed Consolidated Statements of Income. See Note 9, “Restructuring Costs” for additional information. As of As of May 29, May 30, 2021 2020 Weighted-average remaining lease term (in years) Operating Leases 4.5 3.9 Finance Leases 2.2 3.2 Weighted-average discount rate Operating Leases 3.5 % 3.4 % Finance Leases 2.7 % 2.7 % |
Supplemental Cash Flow Information | Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended May 29, 2021 May 30, 2020 Operating Cash Outflows from Operating Leases $ 18,742 $ 18,539 Operating Cash Outflows from Finance Leases 65 84 Financing Cash Outflows from Finance Leases 967 903 Leased assets obtained in exchange for new lease liabilities: Operating Leases $ 8,988 $ 13,854 Finance Leases 16 1,973 |
Schedule Of Future Lease Payments | Fiscal Year (1) Operating Leases Finance Leases Total 2021 (includes fiscal fourth quarter only) $ 4,550 $ 344 $ 4,894 2022 13,741 1,347 15,088 2023 8,522 1,021 9,543 2024 5,116 156 5,272 2025 3,236 6 3,242 Thereafter 8,621 2 8,623 Total Lease Payments 43,786 2,876 46,662 Less: Imputed Interest 3,208 112 3,320 Present Value of Lease Liabilities (2) $ 40,578 $ 2,764 $ 43,342 (1) Future lease payments by fiscal year are based on contractual lease obligations (2) Includes the current portion of $ 14,570 for operating leases and $ 1,291 for finance leases |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
May 29, 2021 | |
Restructuring Costs [Abstract] | |
Schedule Of Restructuring Charges | Thirteen Weeks Ended Thirty-Nine Weeks Ended May 29, May 30, May 29, May 30, 2021 2020 2021 2020 Operating lease asset impairment loss $ — $ — $ 17,411 $ — Settlement of lease liabilities (gain) ( 2,278 ) — ( 2,953 ) — Other exit-related costs 1,178 — 2,023 — Consulting-related costs 2,000 1,333 5,790 3,465 Associate severance and separation costs 442 26 4,421 2,316 Equity acceleration costs associated with severance 7 — 251 90 Total restructuring costs $ 1,349 $ 1,359 $ 26,943 $ 5,871 |
Summary Of Restructuring Related Liabilities | Consulting-Related Costs Severance and Separation Costs Total Balance at August 29, 2020 $ 4,063 $ 6,927 $ 10,990 Additions 5,790 4,421 10,211 Payments and other adjustments ( 7,210 ) ( 10,684 ) ( 17,894 ) Balance at May 29, 2021 $ 2,643 $ 664 $ 3,307 |
Basis Of Presentation (Details)
Basis Of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Feb. 27, 2021 | May 29, 2021 | |
Basis Of Presentation [Abstract] | ||
Inventory write-down | $ 30,091 | $ 30,091 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
May 29, 2021USD ($)segment | Aug. 29, 2020USD ($) | |
Accrued sales returns | $ 5,452,000 | $ 5,315,000 |
Accrued sales incentives | 18,506,000 | 19,679,000 |
Prepaid sales incentives | 3,042,000 | 3,762,000 |
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 | 9 Months Ended | ||
May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 866,294 | $ 834,972 | $ 2,412,193 | $ 2,444,667 |
Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Net Sales [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 866,294 | $ 834,972 | $ 2,412,193 | $ 2,444,667 |
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Manufacturing Heavy [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 48.00% | 40.00% | 47.00% | 45.00% |
Manufacturing Light [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 21.00% | 19.00% | 20.00% | 22.00% |
Government [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 9.00% | 15.00% | 10.00% | 10.00% |
Retail/Wholesale [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 7.00% | 7.00% | 7.00% | 6.00% |
Commercial Services [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 4.00% | 5.00% | 4.00% | 5.00% |
Other Customers [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 11.00% | 14.00% | 12.00% | 12.00% |
United States [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 813,049 | $ 795,865 | $ 2,268,153 | $ 2,336,528 |
Concentration risk, percentage | 94.00% | 96.00% | 94.00% | 96.00% |
Mexico [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 26,051 | $ 19,305 | $ 68,219 | $ 39,723 |
Concentration risk, percentage | 3.00% | 2.00% | 3.00% | 2.00% |
UK [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 14,688 | $ 10,019 | $ 40,575 | $ 37,375 |
Concentration risk, percentage | 2.00% | 1.00% | 2.00% | 1.00% |
Canada [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 12,506 | $ 9,783 | $ 35,246 | $ 31,041 |
Concentration risk, percentage | 1.00% | 1.00% | 1.00% | 1.00% |
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 | ||
May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | |
Net Income Per Share [Abstract] | ||||
Net income attributable to MSC Industrial as reported | $ 94,434 | $ 77,703 | $ 150,973 | $ 198,621 |
Weighted-average shares outstanding for basic net income per share | 55,944 | 55,563 | 55,814 | 55,435 |
Effect of dilutive securities | 408 | 36 | 325 | 146 |
Weighted-average shares outstanding for diluted net income per share | 56,352 | 55,599 | 56,139 | 55,581 |
Basic | $ 1.69 | $ 1.40 | $ 2.70 | $ 3.58 |
Diluted | $ 1.68 | $ 1.40 | $ 2.69 | $ 3.57 |
Potentially dilutive securities | 3 | 1,933 | 884 | 1,417 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
May 29, 2021 | May 30, 2020 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 1,906 | |
Unrecognized share-based compensation weighted average period | 1 year | |
Total intrinsic value of options exercised | $ 5,719 | $ 2,574 |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 2,839 | |
Unrecognized share-based compensation weighted average period | 2 years | |
Vesting period | 3 years | |
Performance Share Units [Member] | Minimum [Member] | Vest After Three Year Performance Period [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 0.00% | |
Performance Share Units [Member] | Maximum [Member] | Vest After Three Year Performance Period [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 200.00% | |
Restricted Stock Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 32,064 | |
Unrecognized share-based compensation weighted average period | 2 years 9 months 18 days |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 4,413 | $ 4,285 | $ 13,407 | $ 12,463 |
Deferred income tax benefit | (1,094) | (1,068) | (3,298) | (3,116) |
Stock-based compensation expense, net | 3,319 | 3,217 | 10,109 | 9,347 |
Stock Options [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 539 | 1,089 | 1,760 | 2,818 |
Restricted Share Awards [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 1 | 185 | ||
Restricted Stock Unit [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 3,486 | 2,970 | 10,604 | 8,885 |
Performance Share Units [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 325 | 171 | 883 | 385 |
Associate Stock Purchase Plan [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 63 | $ 54 | $ 160 | $ 190 |
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 |
May 29, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Beginning Balance, Options | shares | 1,539 |
Granted, Options | shares | |
Exercised, Options | shares | (392) |
Canceled/Forfeited, Options | shares | (8) |
Outstanding, Ending Balance, Options | shares | 1,139 |
Exercisable, Ending Balance, Options | shares | 900 |
Outstanding, Beginning Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 75.76 |
Granted, Weighted-Average Exercise Price per Share | $ / shares | |
Exercised, Weighted-Average Exercise Price per Share | $ / shares | 73.88 |
Canceled/Forfeited, Weighted-Average Exercise Price per Share | $ / shares | 79.63 |
Outstanding, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | 76.38 |
Exercisable, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 74.89 |
Outstanding, Ending Balance, Weighted-Average Remaining Contractual Term (in years) | 2 years 10 months 24 days |
Exercisable, Ending Balance, Weighted-Average Remaining Contractual Term (in years) | 2 years 6 months |
Aggregate Intrinsic Value of options outstanding | $ | $ 20,525 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 17,549 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Non-Vested Restricted Stock Unit Award Activity) (Details) shares in Thousands | 9 Months Ended |
May 29, 2021$ / sharesshares | |
Restricted Stock Unit [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share awards, Beginning balance, Shares | 482 |
Granted, Shares | 235 |
Vested, Shares | (162) |
Canceled/Forfeited, Shares | (21) |
Non-vested share awards, Ending balance, Shares | 534 |
Non-vested share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 76.73 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 75.16 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 74.68 |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 76.76 |
Non-vested share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 76.66 |
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 | 80 |
Performance Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share awards, Beginning balance, Shares | 28 |
Granted, Shares | 31 |
Vested, Shares | |
Canceled/Forfeited, Shares | (1) |
Non-vested share awards, Ending balance, Shares | 58 |
Non-vested share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 76.32 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 74.79 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 75.55 |
Non-vested share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 75.52 |
Incremental Dividend Rights, Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share awards, Ending balance, Shares | 7 |
Fair Value (Details)
Fair Value (Details) | 9 Months Ended | |||
May 29, 2021USD ($) | May 30, 2020USD ($) | Nov. 28, 2020ft² | Aug. 29, 2020USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
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 | ||
Property, plant and equipment, net | 296,200,000 | $ 301,979,000 | ||
Long Island Customer Service Center [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Area of property | ft² | 170,000 | |||
Property, plant and equipment, net | $ 15,300,000 |
Debt (Revolving Credit Faciliti
Debt (Revolving Credit Facilities) (Narrative) (Details) | 9 Months Ended | ||
May 29, 2021USD ($)agreement | May 30, 2020USD ($) | Aug. 29, 2020USD ($) | |
Debt Instrument [Line Items] | |||
Weighted average rate under Credit Facility | 1.18% | 1.42% | |
Payments under revolving loans from credit facility | $ 365,000,000 | $ 578,000,000 | |
Borrowings under credit facilities | 505,000,000 | $ 1,012,200,000 | |
Met Life Note Purchase Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 250,000,000 | ||
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 | ||
Outstanding balance | $ 187,000,000 | $ 250,000,000 | |
Credit facility, current | 187,000,000 | 100,000,000 | |
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 50,000,000 | ||
Outstanding balance | $ 4,235,000 | 16,742,000 | |
Uncommitted Bank Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Number of credit facilities | agreement | 2 | ||
Credit facility, current borrowing capacity | $ 205,000,000 | ||
Credit facility, expiration term | 1 year | ||
Outstanding balance | $ 204,200,000 | $ 1,200,000 |
Debt (Private Placement Debt) (
Debt (Private Placement Debt) (Narrative) (Details) - Private Placement Debt [Member] - USD ($) | 9 Months Ended | |
May 29, 2021 | Aug. 29, 2020 | |
Senior Notes Series A [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] | ||
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] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 20,000,000 | 20,000,000 |
Interest rate | 3.79% | |
Maturity date | Jun. 11, 2025 | |
Senior notes, Due March 5, 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 50,000,000 | $ 50,000,000 |
Interest rate | 2.60% | |
Maturity date | Mar. 5, 2027 |
Debt (Shelf Facility Agreements
Debt (Shelf Facility Agreements) (Narrative) (Details) | 1 Months Ended | 9 Months Ended | |
Jun. 30, 2021USD ($) | May 29, 2021USD ($) | Aug. 29, 2020USD ($) | |
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 | 180,000,000 | ||
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 | ||
Series 2018B notes, due June 11, 2021 [Member] | Private Placement Debt [Member] | |||
Line of Credit Facility [Line Items] | |||
Principal amount | $ 20,000,000 | $ 20,000,000 | |
Interest rate | 3.42% | 3.42% | |
Maturity date | Jun. 11, 2021 | ||
Series 2018B notes, due June 11, 2021 [Member] | Subsequent Event [Member] | Private Placement Debt [Member] | |||
Line of Credit Facility [Line Items] | |||
Repayment of debt | $ 20,000,000 |
Debt (Financing Arrangements) (
Debt (Financing Arrangements) (Narrative) (Details) $ in Thousands | May 29, 2021USD ($) |
IT Equipment And Software [Member] | |
Capital Leased Assets [Line Items] | |
Property, plant and equipment, gross | $ 1,286 |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) | 9 Months Ended | |
May 29, 2021 | Aug. 29, 2020 | |
Debt Instrument [Line Items] | ||
Financing arrangements | $ 551,000 | $ 194,000 |
Less: unamortized debt issuance costs | (510,000) | (843,000) |
Total debt, excluding obligations under finance leases | 756,241,000 | 615,551,000 |
Less: current portion | (411,256,000) | (120,986,000) |
Total long-term debt, excluding obligations under finance leases | 344,985,000 | 494,565,000 |
Financing obligations, current | 446,000 | 194,000 |
Unamortized debt issuance costs, current | 390,000 | 408,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | 100,000,000 | |
Committed Bank Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | $ 187,000,000 | 250,000,000 |
Maturity date | Apr. 14, 2022 | |
Uncommitted Bank Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | $ 204,200,000 | 1,200,000 |
Short-term debt | 204,200,000 | 1,200,000 |
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 | |
Senior notes, Due March 5, 2027 [Member] | Private Placement Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 50,000,000 | 50,000,000 |
Interest rate | 2.60% | |
Maturity date | Mar. 5, 2027 | |
Senior notes due January 12, 2023 [Member] | Private Placement Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 50,000,000 | 50,000,000 |
Interest rate | 3.04% | |
Maturity date | Jan. 12, 2023 | |
Series 2018B notes, due June 11, 2021 [Member] | Private Placement Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 20,000,000 | 20,000,000 |
Less: current portion | $ (20,000,000) | $ (20,000,000) |
Interest rate | 3.42% | 3.42% |
Maturity date | Jun. 11, 2021 | |
Series 2019A notes, due March 5, 2024 [Member] | Private Placement Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 50,000,000 | $ 50,000,000 |
Interest rate | 2.40% | |
Maturity date | Mar. 5, 2024 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Feb. 27, 2021store | May 29, 2021USD ($)store | |
Leases [Abstract] | ||
Number of locations closed | store | 73 | 73 |
Operating lease impairment loss net of gains related to settlement of lease liabilities | $ | $ 14,458 |
Leases (Components Of Lease Cos
Leases (Components Of Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 5,118 | $ 6,592 | $ 17,984 | $ 18,952 |
Variable lease benefit | (605) | (368) | (1,626) | (459) |
Short-term lease cost | 262 | 197 | 665 | 681 |
Amortization of leased assets | 322 | 333 | 966 | 906 |
Interest on leased liabilities | 20 | 29 | 65 | 84 |
Total Lease Cost | $ 5,117 | $ 6,783 | $ 18,054 | $ 20,164 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
May 29, 2021 | Aug. 29, 2020 | May 30, 2020 | |
Leases [Abstract] | |||
Operating lease assets | $ 39,401 | $ 56,173 | |
Finance lease assets | 2,674 | 3,625 | |
Total leased assets | 42,075 | 59,798 | |
Current operating lease liabilities | 14,570 | 21,815 | |
Current finance lease liabilities | 1,291 | 1,262 | |
Noncurrent operating lease liabilities | 26,008 | 34,379 | |
Noncurrent finance lease liabilities | 1,473 | 2,453 | |
Total lease liabilities | $ 43,342 | 59,909 | |
Weighted average remaining lease term (years), Operating leases | 4 years 6 months | 3 years 10 months 24 days | |
Weighted average remaining lease term (years), Finance leases | 2 years 2 months 12 days | 3 years 2 months 12 days | |
Weighted average discount rate, Operating leases | 3.50% | 3.40% | |
Weighted average discount rate, Finance leases | 2.70% | 2.70% | |
Finance lease right of use assets, Accumulated amortization | $ 2,405 | $ 1,439 | |
Operating lease impairment loss net of gains related to settlement of lease liabilities | $ 14,458 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
May 29, 2021 | May 30, 2020 | |
Leases [Abstract] | ||
Operating Cash Outflows from Operating Leases | $ 18,742 | $ 18,539 |
Operating Cash Outflows from Finance Leases | 65 | 84 |
Financing Cash Outflows from Finance Leases | 967 | 903 |
Leased assets obtained in exchange for new operating lease liabilities | 8,988 | 13,854 |
Leased assets obtained in exchange for new finance lease liabilities | $ 16 | $ 1,973 |
Leases (Schedule Of Future Leas
Leases (Schedule Of Future Lease Payments) (Details) - USD ($) $ in Thousands | May 29, 2021 | Aug. 29, 2020 |
Operating Leases | ||
2021 (includes fiscal fourth quarter only) | $ 4,550 | |
2022 | 13,741 | |
2023 | 8,522 | |
2024 | 5,116 | |
2025 | 3,236 | |
Thereafter | 8,621 | |
Total Lease Payments | 43,786 | |
Less: Imputed Interest | 3,208 | |
Present Value of Lease Liabilities | 40,578 | |
Finance Leases | ||
2021 (includes Fiscal Q4 only) | 344 | |
2022 | 1,347 | |
2023 | 1,021 | |
2024 | 156 | |
2025 | 6 | |
Thereafter | 2 | |
Total Lease Payments | 2,876 | |
Less: Imputed Interest | 112 | |
Present Value of Lease Liabilities | 2,764 | |
Total | ||
2021 (includes Fiscal Q4 only) | 4,894 | |
2022 | 15,088 | |
2023 | 9,543 | |
2024 | 5,272 | |
2025 | 3,242 | |
Thereafter | 8,623 | |
Total Lease Payments | 46,662 | |
Less: Imputed Interest | 3,320 | |
Total lease liabilities | 43,342 | $ 59,909 |
Current portion of operating lease liabilities | 14,570 | 21,815 |
Current finance lease liabilities | $ 1,291 | $ 1,262 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 29, 2021 | Jun. 30, 2021 | May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | Jan. 09, 2018 |
Components Of Shareholders Equity [Line Items] | |||||||
Treasury stock reissued to fund plan, shares | 13,000 | 20,000 | 44,000 | 55,000 | |||
Cash dividends paid per common share | $ 5.75 | ||||||
Cash dividends paid | $ 321,058 | ||||||
Subsequent Event [Member] | |||||||
Components Of Shareholders Equity [Line Items] | |||||||
Repurchase and retirement of common stock, Shares | 229,000 | ||||||
Repurchase and retirement of common stock, Value | $ 20,373 | ||||||
Subsequent Event [Member] | Maximum [Member] | |||||||
Components Of Shareholders Equity [Line Items] | |||||||
Number of shares authorized for repurchase | 5,000,000 | ||||||
Regular Dividends [Member] | |||||||
Components Of Shareholders Equity [Line Items] | |||||||
Cash dividends paid per common share | $ 2.25 | $ 2.25 | |||||
Cash dividends paid | $ 125,707 | $ 124,851 | |||||
Regular Dividends [Member] | Subsequent Event [Member] | |||||||
Components Of Shareholders Equity [Line Items] | |||||||
Dividends declared date | Jun. 29, 2021 | ||||||
Dividends payable per share | $ 0.75 | ||||||
Dividend payable date | Jul. 27, 2021 | ||||||
Dividends record date | Jul. 13, 2021 | ||||||
Dividend payable amount | $ 41,735 | ||||||
Special Dividends [Member] | |||||||
Components Of Shareholders Equity [Line Items] | |||||||
Cash dividends paid per common share | $ 3.50 | $ 5 | |||||
Cash dividends paid | $ 195,351 | $ 277,634 | |||||
MSC Stock Repurchase Plan [Member] | |||||||
Components Of Shareholders Equity [Line Items] | |||||||
Number of shares authorized for repurchase | 2,000,000 | ||||||
Maximum number of shares that can be repurchased | 650,000 | 650,000 | |||||
Class A Common Stock [Member] | |||||||
Components Of Shareholders Equity [Line Items] | |||||||
Common stock shares repurchased | 500 | 44,000 | |||||
Repurchase and retirement of common stock, Shares | 507,000 | 507,000 | |||||
Purchase of treasury stock | $ 28 | $ 3,236 | |||||
Shares repurchased by the company for associates' tax withholding liability associated with share-based compensation | 1,000 | 51,000 | |||||
Treasury Stock [Member] | |||||||
Components Of Shareholders Equity [Line Items] | |||||||
Treasury stock repurchased, and treasury stock repurchased and retired, shares | 508,000 | 558,000 | |||||
Treasury stock repurchased, and treasury stock repurchased and retired, amount | $ 47,181 | $ 50,700 | |||||
Treasury Stock [Member] | Class A Common Stock [Member] | |||||||
Components Of Shareholders Equity [Line Items] | |||||||
Purchase of treasury stock | $ 88 | $ 28 | $ 3,607 | $ 3,236 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) - store | 3 Months Ended | 9 Months Ended |
Feb. 27, 2021 | May 29, 2021 | |
Restructuring Costs [Abstract] | ||
Number of locations closed | 73 | 73 |
Restructuring Costs (Schedule O
Restructuring Costs (Schedule Of Restructuring Charges) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | |
Restructuring Costs [Abstract] | ||||
Operating lease asset impairment loss | $ 17,411 | |||
Settlement of lease liabilities (gain) | $ (2,278) | (2,953) | ||
Other exit-related costs | 1,178 | 2,023 | ||
Consulting-related costs | 2,000 | $ 1,333 | 5,790 | $ 3,465 |
Associate severance and separation costs | 442 | 26 | 4,421 | 2,316 |
Equity acceleration costs associated with severance | 7 | 251 | 90 | |
Total restructuring costs | $ 1,349 | $ 1,359 | $ 26,943 | $ 5,871 |
Restructuring Costs (Summary Of
Restructuring Costs (Summary Of Restructuring Related Liabilities) (Details) $ in Thousands | 9 Months Ended |
May 29, 2021USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Balance | $ 10,990 |
Additions | 10,211 |
Payments and other adjustments | (17,894) |
Balance | 3,307 |
Consulting-Related Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance | 4,063 |
Additions | 5,790 |
Payments and other adjustments | (7,210) |
Balance | 2,643 |
Severance And Separation Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance | 6,927 |
Additions | 4,421 |
Payments and other adjustments | (10,684) |
Balance | $ 664 |
Asset Impairments (Details)
Asset Impairments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | May 29, 2021 | Feb. 27, 2021 | Nov. 28, 2020 | May 29, 2021 | Sep. 30, 2020 | |
Inventory write-down | $ 30,091 | $ 30,091 | ||||
Prepaid purchase of PPE | $ 26,726 | |||||
Impairment charge | $ 26,726 | |||||
Loss recovery related to PPE prepayment impairments | $ 20,840 | |||||
Subsequent Event [Member] | ||||||
Proceeds from loss recovery | $ 20,840 |
Product Warranties (Details)
Product Warranties (Details) | 9 Months Ended |
May 29, 2021 | |
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 | ||
May 29, 2021 | May 30, 2020 | Dec. 31, 2020 | |
Changes in unrecognized tax benefits | $ 0 | ||
Effective tax rate | 24.60% | 25.00% | |
The CARES Act [Member] | |||
Deferred employer-paid portion of social security payroll taxes | $ 18,886,000 | ||
Will be Remitted by December 31, 2021 [Member] | The CARES Act [Member] | |||
Deferred employer-paid portion of social security payroll taxes | $ 9,443,000 | ||
Will be Remitted by December 31, 2022 [Member] | The CARES Act [Member] | |||
Deferred employer-paid portion of social security payroll taxes | $ 9,443,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) shares in Thousands | 1 Months Ended | |
Jun. 30, 2021 | Jun. 29, 2021 | |
Subsequent Event [Line Items] | ||
Repurchase and retirement of common stock, Shares | 229 | |
Repurchase and retirement of common stock, Value | $ 20,373,000 | |
Wm. F. Hurst Co., LLC [Member] | ||
Subsequent Event [Line Items] | ||
Business acquisition purchase price | $ 15,200,000 | |
Percentage of interest acquired in business | 80.00% | |
Maximum [Member] | ||
Subsequent Event [Line Items] | ||
Number of shares authorized for repurchase | 5,000 | |
Private Placement Debt [Member] | Series 2018B notes, due June 11, 2021 [Member] | ||
Subsequent Event [Line Items] | ||
Repayment of debt | $ 20,000,000 |