Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Aug. 28, 2021 | Oct. 01, 2021 | Feb. 26, 2021 | |
Class of Stock [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Aug. 28, 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 | 515 Broadhollow 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,942,922,360 | ||
Documents Incorporated by Reference [Text Block] | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement to be filed with the United States Securities and Exchange Commission in connection with the registrant’s 2022 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent described herein. | ||
Entity Central Index Key | 0001003078 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
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 | 46,820,265 | ||
Class B Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 8,654,010 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 40,536 | $ 125,211 |
Accounts receivable, net of allowance for credit losses of $18,416 and $18,249, respectively | 560,373 | 491,743 |
Inventories | 624,169 | 543,106 |
Prepaid expenses and other current assets | 89,167 | 77,710 |
Total current assets | 1,314,245 | 1,237,770 |
Property, plant and equipment, net | 298,416 | 301,979 |
Goodwill | 692,704 | 677,579 |
Identifiable intangibles, net | 101,854 | 104,873 |
Operating lease assets | 49,011 | 56,173 |
Other assets | 5,885 | 4,056 |
Total assets | 2,462,115 | 2,382,430 |
Current Liabilities: | ||
Current portion of debt including obligations under finance leases | 202,433 | 122,248 |
Current portion of operating lease liabilities | 13,927 | 21,815 |
Accounts payable | 186,330 | 125,775 |
Accrued expenses and other current liabilities | 159,238 | 138,895 |
Total current liabilities | 561,928 | 408,733 |
Long-term debt including obligations under finance leases | 583,616 | 497,018 |
Noncurrent operating lease liabilities | 36,429 | 34,379 |
Deferred income taxes and tax uncertainties | 108,827 | 121,727 |
Other noncurrent liabilities | 9,443 | |
Total liabilities | 1,300,243 | 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 | 740,867 | 690,739 |
Retained earnings | 532,315 | 749,515 |
Accumulated other comprehensive loss | (17,984) | (21,418) |
Class A treasury stock, at cost, 1,223,644 and 1,227,192 shares, respectively | (104,384) | (103,948) |
Total MSC Industrial shareholders’ equity | 1,150,871 | 1,314,945 |
Noncontrolling interest | 11,001 | 5,628 |
Total shareholders' equity | 1,161,872 | 1,320,573 |
Total liabilities and shareholders' equity | 2,462,115 | 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 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Accounts receivable, allowance for credit losses | $ 18,416 | $ 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 | 1,223,644 | 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 | 48,042,901 | 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 outstanding | 8,654,010 | 9,844,856 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Consolidated Statements Of Income [Abstract] | |||
Net sales | $ 3,243,224 | $ 3,192,399 | $ 3,363,817 |
Cost of goods sold | 1,909,709 | 1,849,077 | 1,931,774 |
Gross profit | 1,333,515 | 1,343,322 | 1,432,043 |
Operating expenses | 994,468 | 975,553 | 1,025,322 |
Impairment loss, net | 5,886 | ||
Restructuring costs | 31,392 | 17,029 | 6,725 |
Income from operations | 301,769 | 350,740 | 399,996 |
Other income (expense): | |||
Interest expense | (14,510) | (16,673) | (16,890) |
Interest income | 66 | 333 | 518 |
Other income (expense), net | 1,054 | (150) | (495) |
Total other expense | (13,390) | (16,490) | (16,867) |
Income before provision for income taxes | 288,379 | 334,250 | 383,129 |
Provision for income taxes | 70,442 | 82,492 | 94,332 |
Net income | 217,937 | 251,758 | 288,797 |
Less: Net income (loss) attributable to noncontrolling interest | 1,030 | 641 | (68) |
Net income attributable to MSC Industrial | $ 216,907 | $ 251,117 | $ 288,865 |
Net income per common share: | |||
Basic | $ 3.89 | $ 4.53 | $ 5.23 |
Diluted | $ 3.87 | $ 4.51 | $ 5.20 |
Weighted-average shares used in computing net income per common share: | |||
Basic | 55,737 | 55,472 | 55,245 |
Diluted | 56,093 | 55,643 | 55,508 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | ||
Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net income, as reported | $ 217,937 | $ 251,758 | $ 288,797 | |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | 3,852 | 1,016 | (3,404) | |
Comprehensive income | [1] | 221,789 | 252,774 | 285,393 |
Comprehensive income attributable to noncontrolling interest: | ||||
Net (income) loss | (1,030) | (641) | 68 | |
Foreign currency translation adjustments | (418) | 342 | 262 | |
Comprehensive income attributable to MSC Industrial | $ 220,341 | $ 252,475 | $ 285,723 | |
[1] | There were no material taxes associated with other comprehensive income during fiscal years 2021, 2020 and 2019. |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Other comprehensive income, taxes | $ 0 | $ 0 | $ 0 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Associate Incentive Plans [Member]Class A Common Stock [Member]Common Stock [Member] | Associate Incentive Plans [Member]Additional Paid-In Capital [Member] | Associate Incentive Plans [Member]Treasury Stock [Member] | 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 Sep. 01, 2018 | $ 55 | $ 10 | $ 657,749 | $ 1,325,822 | $ (19,634) | $ (576,748) | |||||||||||||
Issuance of Noncontrolling Interest | 4,637 | ||||||||||||||||||
Capital Contributions | 1,022 | ||||||||||||||||||
Foreign Currency Translation Adjustment | (3,142) | (262) | $ (3,404) | ||||||||||||||||
Net Income (Loss) | 288,865 | (68) | 288,865 | ||||||||||||||||
Associate Incentive Plans | $ 34,138 | $ 2,813 | |||||||||||||||||
Repurchase and retirement of Class A common stock, Value | (1) | (11,887) | (48,439) | ||||||||||||||||
Repurchase of Class A common stock, Value | $ (24,284) | ||||||||||||||||||
Retirement of treasury stock, Value | (8) | (20,774) | (472,830) | 493,612 | |||||||||||||||
Exchange of Class B common stock for Class A common stock, value | |||||||||||||||||||
Cash dividends declared on Common Stock | $ (118,798) | $ (26,911) | |||||||||||||||||
Dividend equivalents declared, net of cancellations | (1,058) | ||||||||||||||||||
Balance, Value at Aug. 31, 2019 | 46 | 10 | 659,226 | 946,651 | (22,776) | (104,607) | $ 1,478,550 | 5,329 | 1,483,879 | ||||||||||
Dividends declared per Common Share | $ 2.64 | $ 2.64 | |||||||||||||||||
Issuance of Noncontrolling Interest | |||||||||||||||||||
Capital Contributions | |||||||||||||||||||
Foreign Currency Translation Adjustment | 1,358 | (342) | 1,016 | ||||||||||||||||
Net Income (Loss) | 251,117 | 641 | 251,117 | ||||||||||||||||
Associate Incentive Plans | 1 | 31,513 | 4,103 | ||||||||||||||||
Repurchase and retirement of Class A common stock, Value | |||||||||||||||||||
Repurchase of Class A common stock, Value | (3,444) | ||||||||||||||||||
Retirement of treasury stock, Value | |||||||||||||||||||
Exchange of Class B common stock for Class A common stock, value | |||||||||||||||||||
Cash dividends declared on Common Stock | (136,258) | (226,984) | (30,279) | (50,650) | |||||||||||||||
Dividend equivalents declared, net of cancellations | (4,082) | ||||||||||||||||||
Balance, Value at Aug. 29, 2020 | 47 | 10 | 690,739 | 749,515 | (21,418) | (103,948) | 1,314,945 | 5,628 | 1,320,573 | ||||||||||
Dividends declared per Common Share | 8 | 8 | |||||||||||||||||
Issuance of Noncontrolling Interest | 3,825 | ||||||||||||||||||
Capital Contributions | 100 | ||||||||||||||||||
Foreign Currency Translation Adjustment | 3,434 | 418 | 3,852 | ||||||||||||||||
Net Income (Loss) | 216,907 | 1,030 | 216,907 | ||||||||||||||||
Associate Incentive Plans | $ 50,251 | $ 3,359 | |||||||||||||||||
Repurchase and retirement of Class A common stock, Value | (123) | (67,343) | |||||||||||||||||
Repurchase of Class A common stock, Value | $ (3,795) | ||||||||||||||||||
Retirement of treasury stock, Value | |||||||||||||||||||
Exchange of Class B common stock for Class A common stock, value | 1 | (1) | |||||||||||||||||
Cash dividends declared on Common Stock | $ (140,296) | $ (163,511) | $ (27,003) | $ (31,840) | |||||||||||||||
Dividend equivalents declared, net of cancellations | (4,114) | ||||||||||||||||||
Balance, Value at Aug. 28, 2021 | $ 48 | $ 9 | $ 740,867 | $ 532,315 | $ (17,984) | $ (104,384) | $ 1,150,871 | $ 11,001 | $ 1,161,872 | ||||||||||
Dividends declared per Common Share | $ 6.50 | $ 6.50 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Cash Flows from Operating Activities: | |||
Net income | $ 217,937 | $ 251,758 | $ 288,797 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 68,846 | 69,079 | 65,377 |
Non-cash operating lease cost | 18,578 | 22,696 | |
Stock-based compensation | 17,721 | 16,932 | 16,283 |
Loss on disposal of property, plant and equipment | 563 | 802 | 416 |
Inventory write-down | 30,091 | ||
Operating lease and fixed asset impairment due to restructuring | 16,335 | ||
Provision for credit losses | 8,181 | 11,008 | 10,763 |
Deferred income taxes | (13,611) | 7,719 | 14,297 |
Changes in operating assets and liabilities, net of amounts associated with business acquired: | |||
Accounts receivable | (73,041) | 36,772 | (26,948) |
Inventories | (107,037) | 16,462 | (32,528) |
Prepaid expenses and other current assets | (10,141) | (11,540) | (8,316) |
Operating lease liabilities | (33,312) | (22,184) | |
Other assets | (1,055) | 2,809 | (2,064) |
Accounts payable and accrued liabilities | 84,407 | (5,574) | 2,349 |
Total adjustments | 6,525 | 144,981 | 39,629 |
Net cash provided by operating activities | 224,462 | 396,739 | 328,426 |
Cash Flows from Investing Activities: | |||
Expenditures for property, plant and equipment | (53,746) | (46,991) | (51,773) |
Proceeds from sale of available for sale securities | 27,025 | ||
Cash used in business acquisitions, net of cash acquired | (22,000) | (2,286) | (11,625) |
Net cash used in investing activities | (75,746) | (49,277) | (36,373) |
Cash Flows from Financing Activities: | |||
Repurchases of common stock | (71,261) | (3,444) | (84,611) |
Payments of regular cash dividends | (167,299) | (166,537) | (145,709) |
Payments of special cash dividends | (195,351) | (277,634) | |
Proceeds from sale of Class A Common Stock in connection with associate stock purchase plan | 4,136 | 4,140 | 4,600 |
Proceeds from exercise of Class A Common Stock options | 29,667 | 13,687 | 15,640 |
Borrowings under credit facilities | 583,500 | 1,012,200 | 382,000 |
Payments under credit facilities | (399,200) | (916,000) | (451,000) |
Contributions from non-controlling interest | 100 | 104 | 918 |
Proceeds from long-term debt | 4,750 | 100,000 | |
Payments under Shelf Facility Agreements and Private Placement Debt | (20,000) | (20,000) | |
Payments on finance lease and financing obligations | (2,584) | (2,189) | (28,370) |
Other, net | (205) | 1,055 | 903 |
Net cash used in financing activities | (233,747) | (254,618) | (305,629) |
Effect of foreign exchange rate changes on cash and cash equivalents | 356 | 81 | (355) |
Net increase (decrease) in cash and cash equivalents | (84,675) | 92,925 | (13,931) |
Cash and cash equivalents—beginning of period | 125,211 | 32,286 | 46,217 |
Cash and cash equivalents—end of period | 40,536 | 125,211 | 32,286 |
Supplemental Disclosure of Cash Flow Information: | |||
Cash paid for income taxes | 73,116 | 68,929 | 79,334 |
Cash paid for interest | $ 13,995 | $ 14,973 | $ 16,648 |
Business And Summary Of Signifi
Business And Summary Of Significant Accounting Policies | 12 Months Ended |
Aug. 28, 2021 | |
Business And Summary Of Significant Accounting Policies [Abstract] | |
Business And Summary Of Significant Accounting Policies | 1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business MSC Industrial Direct Co., Inc. (together with its wholly owned subsidiaries and entities in which it maintains a controlling financial interest, “MSC,” “MSC Industrial” or the “Company”) is a leading North American distributor of a broad range of metalworking and maintenance, repair and operations (“MRO”) products and services, with co-located headquarters in Melville, New York and Davidson, North Carolina. The Company has an additional office support center in Southfield, Michigan and serves primarily domestic markets through its distribution network of 28 branch offices, seven regional inventory centers and 11 customer fulfillment centers. Principles of Consolidation The 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 fiscal year 2020, 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 personal protective equipment (“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 shortages of fuel, labor and 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. Fiscal Year The Company operates on a 52/53-week fiscal year ending on the Saturday closest to August 31 st of each year. The financial statements for fiscal years 2021, 2020 and 2019 contain activity for 52 weeks. Unless the context requires otherwise, references to years contained herein pertain to the Company’s fiscal year. Use of Estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used in preparing the accompanying consolidated financial statements. Cash and Cash Equivalents The Company considers all short-term, highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are carried at cost, which approximates fair value. Concentrations of Credit Risk The Company’s mix of receivables is diverse, selling its products primarily to end-users. The Company’s customer base represents many diverse industries primarily concentrated in the United States. The Company performs periodic credit evaluations of its customers’ financial condition, and collateral is generally not required. The Company evaluates the collectability of accounts receivable based on numerous factors, including past transaction history with customers and their creditworthiness, and the Company provides a reserve for accounts that it believes to be uncollectible. The Company’s cash includes deposits with commercial banks. The terms of these deposits and investments provide that all monies are available to the Company upon demand. The Company maintains the majority of its cash with high- quality financial institutions. Deposits held with banks may exceed insurance limits. While MSC monitors the creditworthiness of these commercial banks and financial institutions, a crisis in the U.S. financial systems could limit access to funds and/or result in a loss of principal. Allowance for Credit Losses The Company establishes reserves for customer accounts that are deemed uncollectible. The allowance for credit losses is based on several f actors, including the age of the receivables and the historical ratio of actual write-offs to the age of the receivables, and also reflects the adoption of the new accounting standard related to current expected credit losses in the most recent fiscal year. See “Recently Adopted Accounting Pronouncements.” in this Note 1 for more information. These analyses also take into consideration economic conditions that may have an impact on a specific industry, group of customers or a specific customer. While the Company has a broad customer base, representing many diverse industries primarily in all regions of the United States, a general economic downturn could result in higher than expected defaults and, therefore, the need to revise estimates for bad debts. Inventories Inventories consist of merchandise held for resale and are stated at the lower of weighted average cost or net realizable value. The Company evaluates the recoverability of its slow-moving or obsolete inventories quarterly. The Company estimates the recoverable cost of such inventory by product type and considering such factors as its age, historic and current demand trends, the physical condition of the inventory, historical write-down information as well as assumptions regarding future demand. The Company’s ability to recover its cost for slow-moving or obsolete inventory can be affected by such factors as general market conditions, future customer demand, and relationships with suppliers. Substantially all of the Company’s inventories have demonstrated long shelf lives and are not highly susceptible to obsolescence. In addition, many of the Company’s inventory items are eligible for return under various supplier agreements. Property, Plant and Equipment Property, plant and equipment and capitalized computer software are stated at cost less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to expense as incurred; costs of major renewals and improvements are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts and the profit or loss on such disposition is reflected in income. Depreciation and amortization of property, plant and equipment are computed for financial reporting purposes on the straight-line method based on the estimated useful lives of the assets. Leasehold improvements are amortized over either their respective lease terms or their estimated lives, whichever is shorter. Estimated useful lives range from three years to 40 years for leasehold improvements and buildings, three years to 10 years for computer systems, equipment and software, and three years to 20 years for furniture, fixtures and equipment. Capitalized computer software costs are amortized using the straight-line method over the estimated useful life. These costs include purchased software packages, payments to vendors and consultants for the development, implementation or modification of purchased software packages for Company use, and payroll and related costs for associates connected with internal-use software projects. Capitalized computer software costs are included within property, plant and equipment on the Company’s Consolidated Balance Sheets. 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, lease components and non-lease components, such as common area maintenance, are grouped as a single lease component. All leases with an initial term of 12 months or less are not included on the balance sheet. 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. 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 Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in operating expenses on the consolidated statements of income. Goodwill and Other Indefinite-Lived Intangible Assets The Company’s business acquisitions typically result in the recording of goodwill and other intangible assets, which affect the amount of amortization expense and possibly impairment write-downs that the Company may incur in future periods. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired in business acquisitions. The Company annually reviews goodwill and intangible assets that have indefinite lives for impairment in its fiscal fourth quarter and when events or changes in circumstances indicate the carrying values of these assets might exceed their current fair values. The Company currently operates at a single reporting unit level. Events or circumstances that may result in an impairment review include changes in macroeconomic conditions, industry and market considerations, cost fact events affecting the reporting unit or a sustained decrease in share price. Each year, the Company may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If impairment is indicated in the qualitative assessment or if management elects to initially perform a quantitative assessment of goodwill or intangible assets, the impairment test uses a single step approach. This single step approach compares the carrying value of a reporting unit to its fair value. If the fair value of the reporting unit exceeds its carrying amount, goodwill and intangible assets of the reporting unit are not impaired. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the amount of goodwill allocated to that reporting unit. Based on the qualitative assessments of goodwill and intangible assets that have indefinite lives performed by the Company in its respective fiscal fourth quarters, there was no indicator of impairment for fiscal years 2021, 2020 and 2019. The balances and changes in the carrying amount of goodwill are as follows: Balance as of August 31, 2019 $ 677,266 Foreign currency translation adjustments 313 Balance as of August 29, 2020 $ 677,579 Hurst acquisition (1) 9,282 MSC Mexico acquisition (2) 4,753 Foreign currency translation adjustments 1,090 Balance as of August 28, 2021 $ 692,704 (1) In June 2021, the Company acquired a majority ownership interest in Hurst (as defined in Note 5, “Business Combinations”). The Company holds an 80 % interest in the business. (2) In July 2021, MSC Mexico (as defined in Note 5, “Business Combinations”) acquired additional assets of TAC (as defined in Note 5, “Business Combinations”) in conjunction with the acquisition of its outsourcing and logistics businesses. The Company holds a 75 % interest in MSC Mexico. See Note 5, “Business Combinations” for further discussion of this acquisition. The components of the Company’s intangible assets for fiscal years 2021 and 2020 are as follows: For the Fiscal Years Ended August 28, 2021 August 29, 2020 Weighted Average Useful Life (in years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer Relationships 5 - 18 $ 220,669 $ ( 133,361 ) $ 214,460 $ ( 123,958 ) Non-Compete Agreements 3 766 ( 21 ) — — Trademarks 1 - 5 7,567 ( 6,577 ) 7,403 ( 5,843 ) Trademarks Indefinite 12,811 — 12,811 — Total $ 241,813 $ ( 139,959 ) $ 234,674 $ ( 129,801 ) For fiscal year 2021, the Company recorded approximately $ 7,375 of intangible assets, consisting of the acquired customer relationships, non-compete agreements and trademarks from the Hurst and MSC Mexico acquisitions. See Note 5, “Business Combinations.” During fiscal year 2021, approximately $ 236 in gross intangible assets, and any related accumulated amortization, were written off related to trademarks that are no longer being utilized. For fiscal year 2020, the Company did not record any additional intangible assets. For fiscal year 2020, approximately $ 443 in gross intangible assets, and any related accumulated amortization, were written off related to trademarks that are no longer being utilized. The Company’s amortizable intangible assets are amortized on a straight-line basis, including customer relationships, based on an approximation of customer attrition patterns and best estimates of the use pattern of the asset. Amortization expense of the Company’s intangible assets was $ 10,934 , $ 11,463 and $ 11,746 during fiscal years 2021, 2020, and 2019, respectively. Estimated amortization expense for each of the five succeeding fiscal years is as follows: Fiscal Year 2022 $ 11,389 2023 11,245 2024 10,911 2025 10,661 2026 10,641 Impairment of Long-Lived Assets The Company periodically evaluates the net realizable value of long-lived assets, including definite-lived intangible assets, operating lease right-of-use assets, and property and equipment, relying on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flows. Impairment is assessed by evaluating the estimated undiscounted cash flows over the asset’s remaining life. If estimated cash flows are insufficient to recover the investment, an impairment loss is recognized. In fiscal year 2021, the Company recorded impairment losses on its operating lease right-of-use assets related to the enhanced customer support model. See Note 13, “Restructuring Costs” for further discussion. No impairment losses were required to be recorded by the Company during fiscal years 2020 and 2019. Revenue Recognition Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. The Company’s contracts have a single performance obligation, to deliver products, and are short-term in nature. All revenue is recognized when the Company satisfies its performance obligations under the contract, and invoicing occurs at approximately the same point in time. The Company recognizes revenue once the customer obtains control of the products. The Company’s product sales have standard payment terms that do not exceed one year. The Company considers shipping and handling as activities to fulfill its performance obligation. The Company estimates product returns based on historical return rates. The Company offers customers sales incentives, which primarily consist of volume rebates, and upfront sign-on payments. These volume rebates and payments are not in exchange for a distinct good or service and result in a reduction of net sales from the goods transferred to the customer at the later of when the related revenue is recognized or when the Company promises to pay the consideration. Gross Profit Gross profit primarily represents the difference between the sale price to our customers and the product cost from our suppliers (net of earned rebates and discounts), including the cost of inbound freight. The cost of outbound freight (including internal transfers), purchasing, receiving and warehousing are included in operating expenses. Vendor Consideration The Company receives volume rebates from certain vendors based on contractual arrangements with such vendors. Rebates received from these vendors are recognized as a reduction to the cost of goods sold in the consolidated statements of income when the inventory is sold. In addition, the Company records cash consideration received for advertising costs incurred to sell the vendor’s products as a reduction of the Company’s advertising costs and is reflected in operating expenses in the consolidated statements of income. The total amount of advertising costs, net of co-operative advertising income from vendor-sponsored programs, included in operating expenses in the consolidated statements of income was approximately $ 17,749 , $ 13,341 and $ 18,812 during fiscal years 2021, 2020 and 2019, respectively. Product Warranties The Company generally offers a maximum one year warranty, including parts and labor, for certain of its products sold. 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 to 90 days. In general, many of the Company’s general merchandise products are covered by third-party original equipment manufacturers’ warranties. The Company’s warranty expense has been minimal. Shipping and Handling Costs The Company includes shipping and handling fees billed to customers in net sales and shipping, and handling costs associated with outbound freight in Operating expenses in the Company’s Consolidated Statements of Income. The shipping and handling costs in Operating expenses were approximately $ 133,737 , $ 125,859 and $ 138,242 during fiscal years 2021, 2020 and 2019, respectively. Stock-Based Compensation In accordance with Accounting Standards Codification (“ASC”) Topic 718, “Compensation — Stock Compensation” (“ASC Topic 718”), the Company estimates the fair value of share-based payment awards on the date of grant. The value of awards that are ultimately expected to vest is recognized as an expense over the requisite service periods. The fair value of the Company’s restricted stock awards, restricted stock units and performance share units is based on the closing market price of the Company’s Class A Common Stock on the date of grant . The Company estimates the fair value of stock options granted using a Black-Scholes option-pricing model. This model requires the Company to make estimates and assumptions with respect to the expected term of the option, the expected volatility of the price of the Company’s Class A Common Stock and the expected forfeiture rate. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The expected term is based on the historical exercise behavior of grantees, as well as the contractual life of the option grants. The expected volatility factor is based on the volatility of the Company’s Class A Common Stock for a period equal to the expected term of the stock option. In addition, forfeitures of share-based awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option and restricted stock award and unit forfeitures and records stock-based compensation expense only for those awards that are expected to vest. Share Repurchases and Treasury Stock Repurchased shares may be retired immediately and resume the status of authorized but unissued shares or may be held by the Company as treasury stock. The Company accounts for treasury stock under the cost method, using the first-in, first-out flow assumption, and is included in “Class A treasury stock, at cost” on the Consolidated Balance Sheets. When the Company reissues treasury stock, the gains are recorded in additional paid-in capital (“APIC”), while the losses are recorded to APIC to the extent that the previous net gains on the reissuance of treasury stock are available to offset the losses. If the loss is larger than the previous gains available, then the loss is recorded to retained earnings. The Company accounts for repurchased shares retired immediately or treasury stock retired under the constructive retirement method. When shares are retired, the par value of the repurchased shares is deducted from common stock and the excess repurchase price over par is deducted by allocation to both APIC and retained earnings. The amount allocated to APIC is calculated as the original cost of APIC per share outstanding using the first-in, first-out flow assumption and is applied to the number of shares repurchased. Any remaining amount is allocated to retained earnings. Fair Value of Financial Instruments The carrying values of the Company’s financial instruments, including cash and cash equivalents, receivables, accounts payable and accrued liabilities, approximate fair value because of the short maturity of these instruments. In addition, based on borrowing rates currently available to the Company for borrowings with similar terms, the carrying values of the Company’s lease obligations also approximate fair value. The fair values of the Company’s long-term debt, including current maturities, are estimated based on quoted market prices for the same or similar issues or on current rates offered to the Company for debt of the same remaining maturities. Under this method, the Company’s fair values of any long-term obligations was not significantly different than the carrying values at August 28, 2021 and August 29, 2020. Foreign Currency The local currency is the functional currency for all of MSC’s operations outside the United States. Assets and liabilities of these operations are translated to U.S. dollars at the exchange rate in effect at the end of each period. Income statement accounts are translated at the average exchange rate prevailing during the period. Translation adjustments arising from the use of differing exchange rates from period to period are included as a component of other comprehensive income within shareholders’ equity. Gains and losses from foreign currency transactions are included in net income for the period. Income Taxes The Company has established deferred income tax assets and liabilities for temporary differences between the financial reporting bases and the income tax bases of its assets and liabilities at enacted tax rates expected to be in effect when such assets or liabilities are realized or settled pursuant to the provisions of ASC Topic 740, “Income Taxes,” which prescribes a comprehensive model for the financial statement recognition, measurement, classification and disclosure of uncertain tax positions. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The amounts of unrecognized tax benefits, exclusive of interest and penalties that would affect the effective tax rate, were $ 4,782 and $ 10,995 as of August 28, 2021 and August 29, 2020, respectively. Comprehensive Income Comprehensive income consists of consolidated net income and foreign currency translation adjustments. Foreign currency translation adjustments included in comprehensive income were not tax-effected as investments in international affiliates are deemed to be permanent. Geographic Regions The Company’s sales and assets are predominantly generated from U.S. locations. For fiscal year 2021, the Company’s operations in the United Kingdom, Canada and Mexico represented approximately 6 % of its consolidated net sales. Segment Reporting The Company utilizes the management approach for segment disclosure, which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of our reportable segments. The Company operates in one operating and reportable segment as a distributor of metalworking and MRO products and services. The Company’s chief operating decision maker, its Chief Executive Officer, manages the Company’s operations on a consolidated basis for purposes of allocating resources. Substantially all of the Company’s revenues and long-lived assets are in the United States. The Company does not disclose revenue information by product category as it is impracticable to do so as a result of its numerous product offerings and the manner in which its business is managed. Business Combinations The Company accounts for business combinations in accordance with ASC Topic 805, “Business Combinations ” (“ASC Topic 805”). ASC Topic 805 established principles and requirements for recognizing the total consideration transferred to and the assets acquired, liabilities assumed and any non-controlling interest in the acquired target in a business combination. ASC Topic 805 also provides guidance for recognizing and measuring goodwill acquired in a business combination and requires the acquirer to disclose information that users may need to evaluate and understand the financial impact of the business combination. See Note 5, “Business Combinations” for further discussion. Recently Adopted Accounting Pronouncements Measurement of Credit Losses 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 Consolidated Financial Statements. Goodwill Impairment 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 Consolidated Financial Statements. Cloud Computing Arrangements Effective August 30, 2020, the Company adopted FASB ASU 2018-15: Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. ASU 2018-15 clarifies the requirements for capitalizing implementation costs in cloud computing arrangements and aligns them with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. Accounting Pronouncements Not Yet Adopted Reference Rate Reform 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 the London InterBank Offered Rate (“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. Income Taxes 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 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 be significant to the Company’s Consolidated Financial Statements. Reclassifications Certain prior period Operating expenses were reclassified into Restructuring costs within the Company’s 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 Consolidated Statements of Shareholder’s Equity. These reclassifications did not impact total dividends declared in any period presented. |
Revenue
Revenue | 12 Months Ended |
Aug. 28, 2021 | |
Revenue [Abstract] | |
Revenue | 2. REVENUE Revenue Recognition Net sales include product revenue and shipping and handling charges, net of estimated sales returns and any related sales incentives. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies its performance obligations under the contract, and invoicing occurs at approximately the same point in time. The Company recognizes revenue once the customer obtains control of the products. The Company’s product sales have standard payment terms that do not exceed one year . The Company considers shipping and handling as activities to fulfill its performance obligation. The Company’s contracts have a single performance obligation, to deliver products, and are short-term in nature. The Company estimates product returns based on historical return rates. Total accrued sales returns were $ 5,759 and $ 5,315 as of August 28, 2021 and August 29, 2020, respectively, and are reported as Accrued expenses and other current liabilities in the Consolidated Balance Sheets. Sales taxes and value-added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Consideration Payable to a Customer The Company offers customers sales incentives, which primarily consist of volume rebates, and upfront sign-on payments. These volume rebates and payments are not in exchange for a distinct good or service and result in a reduction of net sales from the goods transferred to the customer at the later of when the related revenue is recognized or when the Company promises to pay the consideration. The Company estimates its volume rebate accruals and records its sign-on payments based on various factors, including contract terms, historical experience, and performance levels. Total accrued sales incentives, primarily related to volume rebates, were $ 16,844 and $ 19,679 as of August 28, 2021 and August 29, 2020 respectively, and are included in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. Sign-on payments, not yet recognized as a reduction of revenue, are recorded in Prepaid expenses and other current assets in the Consolidated Balance Sheets and were $ 2,547 and $ 3,762 as of August 28, 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 obligation. The Company did no t have material unsatisfied performance obligations, contract assets or liabilities as of August 28, 2021 and August 29, 2020. Disaggregation of Revenue The Company operates in one operating and reportable segment as a distributor of metalworking and MRO products and services. The Company serves a large number of customers in diverse industries, which are subject to different economic and industry factors. The Company's presentation of net sales by customer end-market most reasonably depicts how the nature, amount, timing and uncertainty of Company revenue and cash flows are affected by economic and industry factors. The Company does not disclose net sales information by product category as it is impracticable to do so as a result of its numerous product offerings and the way its business is managed. The following table presents the Company’s percentage of net sales by customer end-market for fiscal years 2021 and 2020: For the Fiscal Year Ended For the Fiscal Year Ended August 28, 2021 August 29, 2020 (52 weeks) (52 weeks) Manufacturing Heavy 48 % 45 % Manufacturing Light 20 % 21 % Government 9 % 10 % Retail/Wholesale 7 % 7 % 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 fiscal years 2021 and 2020: For the Fiscal Year Ended For the Fiscal Year Ended August 28, 2021 August 29, 2020 (52 weeks) (52 weeks) United States $ 3,049,543 94 % $ 3,044,943 95 % Mexico 91,917 3 % 57,549 2 % United Kingdom 54,844 2 % 48,505 2 % Canada 46,920 1 % 41,402 1 % Total net sales $ 3,243,224 100 % $ 3,192,399 100 % |
Fair Value
Fair Value | 12 Months Ended |
Aug. 28, 2021 | |
Fair Value [Abstract] | |
Fair Value | 3. 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 indebtedne ss. Cash and cash equivalents include investments in a money market fund which are reported at fair value. The fair value of money market funds is determined using quoted prices for identical investments in active markets, which are considered to be Level 1 inputs within the fair value hierarchy. 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 August 28, 2021 and August 29, 2020. During fiscal years 2021 and 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. In connection with the announcement, the Company signed a 10 -year lease to occupy approximately 26,000 square feet in an office building in Melville, New York, which commenced in September 2021. During 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 a Purchase and Sale Agreement to sell the Long Island CSC. This transaction is currently within a permitting period as outlined within the Purchase and Sale Agreement. As of August 28, 2021, the related assets had a carrying value of approximately $ 15,300 and are included in Property, plant and equipment, net on the 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 August 28, 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. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Aug. 28, 2021 | |
Net Income Per Share [Abstract] | |
Net Income Per Share | 4. NET INCOME PER SHARE In prior periods, the Company’s non-vested restricted stock awards contained non-forfeitable rights to dividends and met the criteria of a participating security as defined by ASC Topic 260, “Earnings Per Share.” Under the two-class method, net income per share is computed by dividing net income allocated to common shareholders by the weighted-average number of common shares outstanding for the period. In applying the two-class method, net income is allocated to both common shares and participating securities based on their resp ective weighted-average shares outstanding for the period. The presentation of basic and diluted earnings per share is required only for each class of common stock and not for participating securities with respect to prior periods. As such, the Company presents basic and diluted earnings per share for its common stock. The dilutive effect of participating securities for prior periods is calculated using the more dilutive of the treasury stock or the two-class method. For fiscal year 2019, the Company determined the two-class method to be the more dilutive. As such, the earnings allocated to common stock shareholders in the basic earnings per share calculation was adjusted for the reallocation of undistributed earnings to participating securities to arrive at the earnings allocated to common stock shareholders for calculating the diluted earnings per share. For fiscal years 2021 and 2020, the Company used the treasury stock method, as the Company discontinued its grants of these participating securities in fiscal year 2015 and the remaining restricted stock awards vested in March 2020. The following table sets forth the computation of basic and diluted net income per common share under the treasury stock method for fiscal years 2021 and 2020 and under the two-class method for fiscal year 2019: For the Fiscal Years Ended August 28, August 29, August 31, 2021 2020 2019 (52 weeks) (52 weeks) (52 weeks) Numerator: Net income attributable to MSC Industrial as reported $ 216,907 $ 251,117 $ 288,865 Less: Distributed net income available to participating securities — — ( 45 ) Less: Undistributed net income available to participating securities — — ( 75 ) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 216,907 $ 251,117 $ 288,745 Add: Undistributed net income allocated to participating securities — — 75 Less: Undistributed net income reallocated to participating securities — — ( 75 ) Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 216,907 $ 251,117 $ 288,745 Denominator: Weighted-average shares outstanding for basic net income per share 55,737 55,472 55,245 Effect of dilutive securities 356 171 263 Weighted-average shares outstanding for diluted net income per share 56,093 55,643 55,508 Net income per share: Basic $ 3.89 $ 4.53 $ 5.23 Diluted $ 3.87 $ 4.51 $ 5.20 Potentially dilutive securities 314 1,393 1,080 Potentially dilutive securities attributable to outstanding stock options and restricted stock units are excluded from the calculation of diluted net income per share when 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. |
Business Combinations
Business Combinations | 12 Months Ended |
Aug. 28, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | 5. BUSINESS COMBINATIONS Acquisition of Certain Assets of TAC In February 2019, two subsidiaries of which the Company holds a 75 % interest, MSC IndustrialSupply, S. de R.L. de C.V. and MSC Import Export LLC (together, “MSC Mexico”), completed the acquisition of certain assets of TAC Insumos Industriales, S. de R.L. de C.V. and certain of its affiliates (together, “TAC”). The portion of the consideration attributable to the Company was $ 13,911 , which included the Company’s portion of a post-closing working capital adjustment in the amount of $ 2,286 which was paid out to TAC in December 2019. I n July 2021, MSC Mexico acquired additional assets of TAC in conjunction with the acquisition of its outsourcing and logistics businesses. Following this acquisition, the Company retains its 75 % interest in MSC Mexico. This acquisition provides the Company with the opportunity to further expand its business throughout North America. The portion of the consideration attributable to the Company is $ 8,061 , which includes cash paid of $ 6,719 and the fair value of contingent consideration to be paid out of $ 1,342 . Total cash consideration funded by the Company came from available cash resources of $ 1,969 and a note payable of $ 4,750 . The fair value of the contingent consideration to be paid out represents the present value of the $ 2,600 contingent consideration as of the acquisition date based on a probability-weighted fair value measurement. This acquisition was accounted for as a business acquisition pursuant to ASC Topic 805. As required by ASC Topic 805, the Company allocated the consideration to assets and liabilities based on their estimated fair value at the acquisition date. The Company’s acquisition accounting as of August 28, 2021 is preliminary primarily due to the pending final valuation and any additional working capital adjustments to the purchase price. The following table summarizes the amounts of identified assets acquired based on the estimated fair value at the acquisition date: Accounts receivable $ 180 Identifiable intangibles 2,575 Goodwill 4,753 Property, plant and equipment 553 Total Purchase Price Consideration $ 8,061 Acquired identifiable intangible assets with a fair value of $ 2,575 consisted of customer relationships of $ 1,809 with a useful life of nine years and non-compete agreements of $ 766 with a useful life of three years . The goodwill amount of $ 4,753 represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The primary items that generated the goodwill were the premiums paid by the Company for the right to control the acquisition of certain assets and the benefit from adding a platform to expand the Company’s footprint in Mexico , specifically in high-touch, sticky solutions such as on-site crib management and vendor-managed inventory and with an expertise in PPE . This goodwill will not be amortized and will be included in the Company’s periodic test for impairment at least annually. The goodwill is deductible for income tax purposes. The fair value of the noncontrolling interest was determined utilizing the market approach and consideration of the overall business enterprise value. The amount of revenue and loss before provision for income taxes from MSC Mexico related to its outsourcing and logistics businesses included in the Company’s Consolidated Statements of Income was insignificant for fiscal year 2021. In addition, the Company incurred non-recurring transaction and integration costs relating to MSC Mexico totaling $ 659 , which are included in the Company’s Consolidated Statement of Income as Operating expenses for fiscal year 2021. Acquisition of Hurst In June 2021, the Company acquired 80 % of the outstanding shares of privately held Wm. F. Hurst Co., LLC (“Hurst”), a Wichita, Kansas-based distributor of metalworking tools and supplies with deep expertise and customer relationships in the aerospace industry . The portion of the consideration attributable to the Company is $ 15,301 , which includes the Company’s portion of a post-closing working capital adjustment in the amount of $ 101 that was paid to the sellers of Hurst in August 2021. Total cash consideration funded by the Company came from available cash resources and borrowings under the Amended Revolving Credit Facility (as defined below) (see Note 9, “Debt”). Hurst serves customers from offices in Wichita, Kansas, Kansas City, Missouri and Dallas, Texas. The acquisition enhances the Company’s leadership position in metalworking and expands its presence in the aerospace industry. The Company plans to provide Hurst’s customer base access to its product portfolio to support their full metalworking and MRO needs. This acquisition was accounted for as a business acquisition pursuant to ASC Topic 805. As required by ASC Topic 805, the Company allocated the consideration to assets and liabilities based on their estimated fair value at the acquisition date. The Company’s acquisition accounting as of August 28, 2021 is preliminary primarily due to the pending final valuation and any additional working capital adjustments to the purchase price. The following table summarizes the amounts of identified assets acquired based on the estimated fair value at the acquisition date: Cash $ 20 Inventories 2,431 Accounts receivable 2,958 Prepaid expenses and other current assets 232 Identifiable intangibles 4,800 Goodwill 9,282 Property, plant and equipment 535 Total assets acquired $ 20,258 Accounts payable 772 Accrued liabilities 360 Total liabilities assumed $ 1,132 Net assets acquired $ 19,126 Less: Fair Value of Noncontrolling Interest ( 3,825 ) Total MSC Industrial Purchase Price Consideration $ 15,301 Acquired identifiable intangible assets with a fair value of $ 4,800 consisted of customer relationships of $ 4,400 with a useful life of seven years and a trademark of $ 400 with a useful life of five years . The goodwill amount of $ 9,282 represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and noncontrolling interest. The primary items that generated the goodwill were the premiums paid by the Company for the right to control the business acquired and the benefit from adding a highly complementary provider of metalworking tools and supplies with deep expertise and customer relationships in the aerospace industry . This goodwill will not be amortized and will be included in the Company’s periodic test for impairment at least annually. The goodwill is deductible for income tax purposes. The fair value of the noncontrolling interest was determined utilizing the market approach and consideration of the overall business enterprise value. The amount of revenue and loss before provision for income taxes from Hurst included in the Company’s Consolidated Statements of Income was insignificant for fiscal year 2021. In addition, the Company incurred non-recurring transaction and integration costs relating to Hurst totaling $ 360 , which are included in the Company’s Consolidated Statements of Income as Operating expenses for fiscal year 2021. |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Aug. 28, 2021 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment | 6. PROPERTY, PLANT AND EQUIPMENT The following is a summary of property, plant and equipment and the estimated useful lives used in the computation of depreciation and amortization: August 28, August 29, Number of Years 2021 2020 Land — $ 28,151 $ 28,139 Building and improvements 3 - 40 189,510 188,882 Leasehold improvements The lesser of lease term or 7 5,038 3,306 Furniture, fixtures and equipment 3 - 20 173,298 184,837 Computer systems, equipment and software 3 - 10 452,328 424,134 848,325 829,298 Less: accumulated depreciation and amortization 549,909 527,319 Total $ 298,416 $ 301,979 The amount of capitalized interest, net of accumulated amortization, included in property, plant and equipment was $ 606 and $ 639 at August 28, 202 1 and August 29, 20 20 , respectively. Depreciation expense was $ 57,199 , $ 57,229 and $ 53,243 for fiscal years 2021, 2020 and 2019, respective ly . |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 28, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | 7. INCOME TAXES The components of income before provision for income taxes were as follows: For the Fiscal Years Ended August 28, August 29, August 31, 2021 2020 2019 Domestic $ 282,478 $ 329,482 $ 383,515 Foreign 5,901 4,768 ( 386 ) Total $ 288,379 $ 334,250 $ 383,129 The provision for income taxes is comprised of the following: For the Fiscal Years Ended August 28, August 29, August 31, 2021 2020 2019 Current: Federal $ 60,988 $ 58,501 $ 66,248 State and local 15,237 14,564 16,239 Foreign 1,327 1,073 ( 87 ) 77,552 74,138 82,400 Deferred: Federal ( 5,513 ) 7,392 10,622 State and local ( 842 ) 1,091 1,310 Foreign ( 755 ) ( 129 ) — ( 7,110 ) 8,354 11,932 Total $ 70,442 $ 82,492 $ 94,332 Significant components of deferred tax assets and liabilities are as follows: August 28, August 29, 2021 2020 Deferred tax liabilities: Depreciation $ ( 38,825 ) $ ( 41,049 ) Right-of-use assets ( 10,998 ) ( 14,260 ) Goodwill ( 105,203 ) ( 96,303 ) Intangible amortization ( 2,667 ) ( 1,478 ) ( 157,693 ) ( 153,090 ) Deferred tax assets: Accounts receivable 4,154 4,109 Lease liability 10,767 14,231 Inventory 16,194 8,430 Self-insurance liability 1,859 — Deferred compensation 328 753 Stock-based compensation 6,295 6,224 Foreign tax credit 2,204 2,159 Less: valuation allowance ( 826 ) ( 1,403 ) Other accrued expenses/reserves 13,681 8,440 54,656 42,943 Net Deferred Tax Liabilities $ ( 103,037 ) $ ( 110,147 ) Reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows: For the Fiscal Years Ended August 28, August 29, August 31, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 4.1 3.7 3.7 Other, net ( 0.7 ) — ( 0.1 ) Effective income tax rate 24.4 % 24.7 % 24.6 % The aggregate changes in the balance of gross unrecognized tax benefits during fiscal years 2021 and 2020 were as follows: August 28, August 29, 2021 2020 Beginning Balance $ 12,562 $ 13,297 Additions for tax positions relating to current year 624 1,682 Additions for tax positions relating to prior years — 29 Reductions for tax positions relating to prior years ( 378 ) ( 25 ) Settlements ( 5,058 ) ( 956 ) Lapse of statute of limitations ( 1,631 ) ( 1,465 ) Ending Balance $ 6,119 $ 12,562 Included in the balance of unrecognized tax benefits at August 28, 2021 is $ 1,671 related to tax positions for which it is reasonably possible that the total amounts could significantly change during the next 12 months. This amount represents a decrease in unrecognized tax benefits comprised primarily of items related to expiring statutes of limitations in state jurisdictions. The Company recognizes interest expense and penalties in the provision for income taxes. The fiscal years 2021, 2020 and 2019 provisions include interest and penalties of $ 689 , $ 23 and $ 27 , respectively. The Company had accrued $ 277 and $ 585 for interest and penalties as of August 28, 2021 and August 29, 2020, respectively. The Company has a foreign tax credit carryover of $ 2,204 of which a valuation allowance of $ 826 has been provided. This foreign tax credit carryover expires beginning fiscal year 2024. On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which is intended to provide economic relief to those impacted by the COVID-19 pandemic. On March 11, 2021, President Biden signed into law the American Rescue Plan Act (the “ARPA”). The ARPA includes several provisions, such as measures that extend and expand the Employee Retention Credit (the “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 $ 18,887 , of which $ 9,444 will be remitted by December 31, 2021 and $ 9,443 will be remitted by December 31, 2022. The Company is routinely examined by federal and state tax authorities. The Internal Revenue Service completed an examination of the Company’s U.S. income tax returns for fiscal years 2017, 2018 and 2019 which resulted in a settlement. The Company is subject to examination by the Internal Revenue Service from fiscal year 2020 to present. With limited exceptions, the Company is no longer subject to state income tax examinations prior to fiscal year 2018. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Aug. 28, 2021 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | 8. ACCRUED LIABILITIES Accrued liabilities consist of the following: August 28, August 29, 2021 2020 Accrued payroll and fringe $ 51,522 $ 39,840 Accrued bonus 20,946 15,844 Accrued sales, property and income taxes 25,866 14,110 Accrued sales rebates and returns 22,603 24,994 Accrued restructuring and other related costs 4,136 10,990 Accrued dividend equivalents 7,275 5,247 Accrued other 26,890 27,870 Total accrued liabilities $ 159,238 $ 138,895 |
Debt
Debt | 12 Months Ended |
Aug. 28, 2021 | |
Debt [Abstract] | |
Debt | 9. DEBT Debt at August 28, 2021 and August 29, 2020 consisted of the following: August 28, August 29, 2021 2020 Amended Revolving Credit Facility $ 234,000 $ 250,000 Uncommitted Credit Facilities 201,500 1,200 Long-Term Note Payable 4,750 - 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 2.40 % Series 2019A Notes, due March 5, 2024 (1) 50,000 50,000 Financing arrangements 191 194 Less: unamortized debt issuance costs ( 1,853 ) ( 843 ) Total debt, excluding obligations under finance leases $ 783,588 $ 615,551 Less: current portion ( 201,160 ) (2) ( 120,986 ) (3) Total long-term debt, excluding obligations under finance leases $ 582,428 $ 494,565 (1) Represents private placement debt issued under Shelf Facility Agreements. (2) Consists of $ 201,500 from the Uncommitted Credit Facilities (as defined below), $ 87 from financing arrangements, and net of unamortized debt issuance costs expected to be amortized in the next 12 months. (3) Consists of $ 100,000 from the Amended Revolving Credit Facility (as defined below), $ 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 unamortized debt issuance costs expected to be amortized in the next 12 months. Amended Revolving Credit Facility In April 2017, the Company entered into a $ 600,000 revolving credit facility, which was subsequently amended and extended in August 2021 (as amended, the “Amended Revolving Credit Facility”). The Amended Revolving Credit Facility, which matures on August 24, 2026 , provides for a five year unsecured revolving loan facility on a committed basis. The interest rate for borrowings under the Amended Revolving Credit Facility is based on either LIBOR or a base rate, plus a spread based on the Company’s consolidated leverage ratio at the end of each fiscal reporting quarter. The Amended Revolving Credit Facility also includes procedures for the succession from LIBOR to an alternative benchmark rate. 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 Amended Revolving Credit Facility bear interest based on LIBOR with one-month interest periods. The Amended Revolving Credit Facility permits up to $ 50,000 to be used to fund letters of credit. The Amended Revolving Credit Facility also permits the Company to request one or more incremental term loan facilities and/or to increase the revolving loan commitments in an aggregate amount not to exceed $ 300,000 . Subject to certain limitations, each such incremental term loan facility or revolving loan commitment increase will be on terms as agreed to by the Company, the administrative agent and the lenders providing such financing. Outstanding letters of credit were $ 4,235 and $ 16,742 at August 28, 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, which was subsequently amended during fiscal year 2021 (the “Uncommitted Credit Facilities” and, together with the Amended Revolving Credit Facility, the “Credit Facilities”), total $ 208,000 in aggregate maximum uncommitted availability, under which $ 201,500 was outstanding at August 28, 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 Amended 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 $ 201,500 outstanding balance at August 28, 2021 and the $ 1,200 outstanding balance at August 29, 2020 under the Uncommitted Credit Facilities and the $ 100,000 outstanding balance at August 29, 2020 under the Amended Revolving Credit Facility are included in the Current portion of debt including obligations under finance leases on the Company’s Consolidated Balance Sheets. During fiscal year 2021, the Company borrowed an aggregate $ 583,500 and repaid an aggregate $ 399,200 under the Credit Facilities. As of August 28, 2021 and August 29, 2020, the weighted-average interest rates on borrowings under the Credit Facilities were 1.11 % 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 MetLife Investment Advisors, LLC (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”). Each of the MetLife Note Purchase Agreement and 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. Pursuant to the terms of the Shelf Facility Agreements, no new unsecured senior notes may be issued and sold after January 12, 2021. As of August 28, 2021, $ 50,000 aggregate principal amount of 3.04 % Senior Notes, due January 12, 2023 , and $ 50,000 aggregate principal amount of 2.40 % Senior Notes, due March 5, 2024 , were outstanding under notes issued in private placements pursuant to the Shelf Facility Agreements. In June 2021, the Company paid $ 20,000 to satisfy its obligation on the 3.42 % Series 2018B Notes, due June 11, 2021, associated with the Met Life Note Purchase Agreement referenced above. Covenants 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 August 28, 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. Maturities of Long-Term Debt Maturities of long-term debt, excluding finance leases and financing obligations, as of August 28, 2021 are as follows: Maturities of Fiscal Year Long-Term Debt 2022 $ — 2023 125,000 2024 50,000 2025 20,000 2026 334,000 Thereafter 54,750 Total $ 583,750 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 to with the applicable vendor. During fiscal years 2021 and 2020, the Company entered into financing arrangements related to certain information technology equipment and software totaling $ 1,286 and $ 1,164 , respectively. |
Leases
Leases | 12 Months Ended |
Aug. 28, 2021 | |
Leases [Abstract] | |
Leases | 10. 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 fiscal years 2021 and 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. The components of lease cost for fiscal years 2021 and 2020 were as follows: For the Fiscal Years Ended August 28, 2021 August 29, 2020 Operating lease cost $ 22,822 $ 25,445 Variable lease benefit ( 2,001 ) ( 865 ) Short-term lease cost 1,074 874 Finance lease cost: Amortization of leased assets 1,290 1,227 Interest on leased liabilities 83 110 Total Lease Cost $ 23,268 $ 26,791 Supplemental balance sheet information relating to operating and finance leases is as follows: August 28, August 29, Classification 2021 2020 Assets Operating lease assets Operating lease assets $ 49,011 (2) $ 56,173 Finance lease assets (1) Property, plant and equipment, net 2,377 3,625 Total leased assets $ 51,388 $ 59,798 Liabilities Current Operating Current portion of operating lease liabilities $ 13,927 (2) $ 21,815 Finance Current portion of debt including obligations under finance leases 1,273 1,262 Noncurrent Operating Noncurrent operating lease liabilities 36,429 (2) 34,379 Finance Long-term debt including obligations under finance leases 1,188 2,453 Total lease liabilities $ 52,817 $ 59,909 (1) Finance lease assets are net of accumulated amo rtization of $ 2,729 and $ 1,439 as of August 28, 20 21 and August 29, 2020, respectively. (2) During fiscal year 2021, the Company recorded an impairment charge of $ 14,975 for impacted operating lease assets, net of gains related to settlement of lease liabilities, in Restructuring costs on the Consolidated Statements of Income. See Note 13, “Restructuring Costs” for additional information. August 28, August 29, 2021 2020 Weighted average remaining lease term (years) Operating Leases 5.0 4.0 Finance Leases 2.0 2.9 Weighted average discount rate Operating Leases 3.6 % 3.6 % Finance Leases 2.7 % 2.7 % The following table sets forth supplemental cash flow information related to operating and finance leases: For the Fiscal Years Ended August 28, 2021 August 29, 2020 Operating Cash Outflows from Operating Leases $ 36,653 $ 24,879 Operating Cash Outflows from Finance Leases 83 110 Financing Cash Outflows from Finance Leases 1,295 1,247 Leased assets obtained in exchange for new lease liabilities: Operating Leases $ 26,211 $ 17,552 Finance Leases 42 1,973 As of August 28, 2021, future lease payments were as follows: Fiscal Year (1) Operating Leases Finance Leases Total 2022 $ 15,420 $ 1,353 $ 16,773 2023 11,211 1,027 12,238 2024 7,983 161 8,144 2025 6,254 12 6,266 2026 5,717 6 5,723 Thereafter 8,366 - 8,366 Total Lease Payments 54,951 2,559 57,510 Less: Imputed Interest 4,595 98 4,693 Present Value of Lease Liabilities (2) $ 50,356 $ 2,461 $ 52,817 (1) Future lease payments by fiscal year are based on contractual lease obligations. (2) Includes the current portion of $ 13,927 for operating leases and $ 1,273 for finance leases. As of August 28, 2021, the Company’s future lease obligations which have not yet commenced include the Company’s new, co-headquarters in Melville, New York. This 10 -year lease commenced in September 2021 and will result in future obligations between $ 709 and $ 793 per year from fiscal year 2022 through fiscal year 2026 and $ 4,317 million thereafter. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Aug. 28, 2021 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 11. SHAREHOLDERS’ EQUITY Share Repurchases On June 29, 2021, the Company’s Board of Directors terminated the MSC Stock Repurchase Plan, which was established during fiscal year 1999, and authorized a new share repurchase program (the “Share Repurchase Program”) to purchase up to 5,000 shares of the Company’s Class A Common Stock. There is no expiration date governing the period over which the Company can repurchase shares under the Share Repurchase Program. As of August 28, 2021, the maximum number of shares that may yet be repurchased under the Share Repurchase Program was 5,000 shares. The Share Repurchase Program allows the Company to repurchase shares at any time and in any increments it deems appropriate in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. During fiscal years 2021 and 2020, the Company repurchased 789 shares and 48 shares, respectively, of its Class A Common Stock for $ 71,261 and $ 3,444 , respectively. In fiscal year 2021, 736 of the shares repurchased were immediately retired. In fiscal years 2021 and 2020, 53 and 48 shares, respectively, were repurchased by the Company to satisfy the Company’s associates’ tax withholding liability associated with its share-based compensation program. Shares of the Company’s Class A Common Stock purchased pursuant to the stock purchase agreement, as well as shares of the Company’s Class A Common Stock purchased to satisfy the Company’s associates’ tax withholding liability associated with its share-based compensation program, did not reduce the number of shares that may be repurchased under the Share Repurchase Program. The Company reissued 57 and 69 shares of Class A treasury stock during fiscal years 2021 and 2020 to fund the Associate Stock Purchase Plan (as defined below) (see Note 12, “Associate Benefit Plans”). Common Stock Each holder of the Company’s Class A Common Stock is entitled to one vote for each share held of record on the applicable record date on all matters presented to a vote of shareholders, including the election of directors. The holders of the Company’s Class B Common Stock are entitled to 10 votes for each share held of record on the applicable record date and are entitled to vote, together with the holders of the Class A Common Stock, on all matters which are subject to shareholder approval. Holders of Class A Common Stock and Class B Common Stock have no cumulative voting rights or preemptive rights to purchase or subscribe for any stock or other securities and there are no redemption or sinking fund provisions with respect to such stock. The holders of the Company’s Class B Common Stock have the right to convert their shares of Class B Common Stock into shares of Class A Common Stock at their election and on a one-to-one basis, and all shares of Class B Common Stock convert into shares of Class A Common Stock on a one to-one basis upon the sale or transfer of such shares of Class B Common Stock to any person who is not a member of the Jacobson or Gershwind families or any trust not established principally for members of the Jacobson or Gershwind families or to any person who is not an executor, administrator or personal representative of an estate of a member of the Jacobson or Gershwind families. Preferred Stock The Company has authorized 5,000 shares of preferred stock. The Company’s Board of Directors has the authority to issue the shares of preferred stock. Shares of preferred stock may have priority over the Company’s Class A Common Stock and Class B Common Stock with respect to dividend or liquidation rights, or both. As of August 28, 2021, there were no shares of preferred stock issued or outstanding. Cash Dividend In 2003, the Board of Directors instituted a policy of regular quarterly cash dividends to shareholders. This policy is reviewed regularly by the Board of Directors. The Company expects its practice of paying quarterly cash dividends on its common stock will continue, although the payment of future dividends is at the discretion of the Company’s Board of Directors and will depend upon its earnings, capital requirements, financial condition and other factors. On October 14, 2021 , the Board of Directors declared a quarterly cash dividend of $ 0.75 per share, payable on November 30, 2021 to shareholders of record at the close of business on November 16, 2021 . The dividend will result in a payout of approximately $ 41,606 , based on the number of shares outstanding at October 1, 2021. |
Associate Benefit Plan
Associate Benefit Plan | 12 Months Ended |
Aug. 28, 2021 | |
Associate Benefit Plan [Abstract] | |
Associate Benefit Plan | 12. ASSOCIATE BENEFIT PLANS The Company accounts for all share-based payments in accordance with ASC Topic 718. Stock - based compensation expense included in Operating expenses for fiscal years 2021, 2020 and 2019 was as follows: For the Fiscal Years Ended August 28, August 29, August 31, 2021 2020 2019 Stock options $ 2,285 $ 3,645 $ 4,786 Restricted share awards — 185 1,552 Restricted stock units 13,976 12,319 9,633 Performance share units 1,233 575 — Associate Stock Purchase Plan 227 208 312 Total 17,721 16,932 16,283 Deferred income tax benefit ( 4,324 ) ( 4,182 ) ( 4,006 ) Stock-based compensation expense, net $ 13,397 $ 12,750 $ 12,277 2015 Omnibus Incentive Plan At the Company’s annual meeting of shareholders held on January 15, 2015, the shareholders approved the MSC Industrial Direct Co., Inc. 2015 Omnibus Incentive Plan (the “2015 Omnibus Incentive Plan”). The 2015 Omnibus Incentive Plan replaced the MSC Industrial Direct Co., Inc. 2005 Omnibus Incentive Plan (the “Prior Plan”) and, beginning January 15, 2015, all awards are granted under the 2015 Omnibus Incentive Plan. Awards under the 2015 Omnibus Incentive Plan may be made in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, other share-based awards, and performance cash, performance shares or performance units. All outstanding awards under the Prior Plan will continue to be governed by the terms of the Prior Plan. Upon approval of the 2015 Omnibus Incentive Plan, the maximum aggregate number of shares of Class A Common Stock authorized to be issued under the 2015 Omnibus Incentive Plan was 5,217 shares, of which 1,432 authorized shares of Class A Common Stock were remaining as of August 28, 2021. Stock Options A summary of the status of the Company’s stock options at August 28, 2021 and changes during fiscal year 2021 is presented in the table and narrative below: 2021 Shares Weighted-Average Exercise Price Outstanding - beginning of year 1,539 $ 75.76 Granted — — Exercised ( 401 ) 73.96 Canceled/Forfeited ( 8 ) 79.63 Outstanding - end of year 1,130 $ 76.38 Exercisable - end of year 890 $ 74.87 The total intrinsic value of options exercised during fiscal years 2021, 2020 and 2019 was $ 5,826 , $ 2,604 and $ 1,882 , respectively. The unrecognized share-based compensation cost related to stock option expense at August 28, 2021 was $ 1,385 and will be recognized over a weighted average period of 0.8 years. Stock option awards outstanding under the Company’s incentive plans have been granted at exercise prices that are equal to the market value of its Class A Common Stock on the date of grant. Such options generally vest over a period of four years and expire at seven years after the grant date. The Company recognizes compensation expense ratably over the vesting period, net of estimated forfeitures. The Company uses the Black-Scholes option-pricing model to estimate the fair value of stock options granted, which requires the input of both subjective and objective assumptions as follows: Expected Term — The estimate of expected term is based on the historical exercise behavior of grantees, as well as the contractual life of the option grants. Expected Volatility — The expected volatility factor is based on the volatility of the Company’s Class A Common Stock for a period equal to the expected term of the stock option. Risk-free Interest Rate — The risk-free interest rate is determined using the implied yield for a traded zero-coupon U.S. Treasury bond with a term equal to the expected term of the stock option. Expected Dividend Yield — The expected dividend yield is based on the Company's historical practice of paying quarterly dividends on its Class A Common Stock. The Company discontinued its grants of stock options in fiscal year 2020. The Company’s weighted-average assumptions used to estimate the fair value of stock options granted during fiscal year 2019 were as follows: 2019 Expected life (in years) 4.0 Risk-free interest rate 2.98 % Expected volatility 23.1 % Expected dividend yield 2.70 % Weighted-Average Grant-Date Fair Value $ 14.05 The following table summarizes information about stock options outstanding and exercisable at August 28, 2021: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Outstanding at August 28, 2021 Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Intrinsic Value Number of Options Exercisable at August 28, 2021 Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Intrinsic Value $ 58.90 – $ 71.33 389 1.7 $ 66.20 $ 7,449 389 1.7 $ 66.20 $ 7,449 71.34 – 79.60 271 3.2 79.60 1,561 190 3.2 79.60 1,093 79.61 – 81.76 73 1.2 81.76 262 73 1.2 81.76 262 81.77 – 83.03 397 3.4 83.16 867 238 2.8 83.13 529 1,130 2.6 $ 76.38 $ 10,139 890 2.3 $ 74.87 $ 9,333 Performance Share Units Beginning in fiscal year 2020, the Company granted 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 achievement of specific performance goals. Based on the extent to which the targets are achieved, vested shares may range from zero to 200 percent of the target award amount. The following table summarizes all transactions related to PSUs under the 2015 Omnibus Incentive Plan (based on target award amounts) for fiscal year 2021: 2021 Shares Weighted-Average Grant-Date Fair Value Non-vested PSUs at the beginning of the year 28 $ 76.32 Granted 31 74.79 Vested — — Canceled/Forfeited ( 1 ) 75.55 Non-vested PSUs at the end of the year (1) 58 $ 75.52 (1) Excludes 8 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 achievement of performance goals, a portion of the PSU award may be withheld to satisfy the statutory income tax withholding obligation. The remaining PSUs will be settled in shares of the Company’s Class A Common Stock when vested. These awards accrue dividend equivalents on the underlying PSUs (in the form of additional stock units) based on dividends declared on the Company’s Class A Common Stock and these dividend equivalents are paid out in unrestricted shares of the Company’s 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 August 28, 2021 was $ 2,479 and is expected to be recognized over a period of 1.7 years. Restricted Stock Units A summary of the Company’s non-vested restricted stock unit (“RSU”) award activity for fiscal year 2021 is as follows: 2021 Shares Weighted-Average Grant-Date Fair Value Non-vested RSU awards at the beginning of the year 482 $ 76.73 Granted 235 75.16 Vested ( 168 ) 74.65 Canceled/Forfeited ( 25 ) 76.79 Non-vested RSU awards at the end of the year (1) 524 $ 76.69 (1) Excludes approximately 84 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 after the vesting period. These awards accrue dividend equivalents on outstanding units (in the form of additional stock units) based on dividends declared on the Company’s Class A Common Stock and these additional RSUs are subject to the same vesting periods as the RSUs in the underlying award. The dividend equivalents are not included in the RSU table above. The unrecognized compensation cost related to the RSUs at August 28, 2021 was $ 28,433 and is expected to be recognized over a period of 2.6 years. Associate Stock Purchase Plan The Company has established a qualified Associate Stock Purchase Plan, the terms of which allow for eligible associates (as defined in the Associate Stock Purchase Plan) to participate in the purchase of up to a maximum of five shares of the Company’s Class A Common Stock at a price equal to 90 % of the closing price at the end of each stock purchase period. On January 15, 2015, the shareholders of the Company approved an increase to the authorized but unissued shares of the Class A Common Stock of the Company reserved for sale under the Associate Stock Purchase Plan from 1,150 to 1,500 shares. As of August 28, 2021, approximately 347 shares remain reserved for issuance under this plan. Associates purchased approximately 57 and 69 shares of Class A Common Stock during fiscal years 2021 and 2020 at an average per share price of $ 72.87 and $ 59.71 , respectively. Savings Plan The Company maintains a defined contribution plan with both a profit sharing feature and a 401(k) feature which covers all associates who have completed at least one month of service with the Company. For fiscal years 2021, 2020 and 2019, the Company contributed $ 7,952 , $ 5,491 and $ 8,439 , respectively, to the plan. The Company contributions are discretionary. The Company temporarily suspended the employer matching contribution to eligible participants in the Company’s 401(k) on April 13, 2020, and the matching contribution was reinstated on September 17, 2020. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Aug. 28, 2021 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | 13. RESTRUCTURING COSTS Enhanced Customer Support Model In 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 fiscal year 2021 consist of impairment charges for operating lease assets, net of gains related to settlement of lease liabilities, 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 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. The following table summarizes restructuring and other related costs: For the Fiscal Years Ended August 28, August 29, 2021 2020 Operating lease asset impairment loss $ 17,923 $ — Settlement of lease liabilities (gain) ( 2,948 ) — Other exit-related costs 3,282 — Consulting-related costs 8,615 6,583 Associate severance and separation costs 4,267 10,142 Equity acceleration costs associated with severance 253 304 Total restructuring and other related costs $ 31,392 $ 17,029 The following table summarizes activity related to liabilities associated with restructuring and other related costs: Consulting-related costs Separation and severance costs Other exit-related costs Total Balance at August 31, 2019 $ — $ 6,044 $ — $ 6,044 Additions 6,583 10,142 — 16,725 Payments and other adjustments ( 2,520 ) ( 9,259 ) — ( 11,779 ) Balance at August 29, 2020 4,063 6,927 — 10,990 Additions 8,615 4,267 3,282 16,164 Payments and other adjustments ( 9,350 ) ( 10,827 ) ( 2,841 ) ( 23,018 ) Balance at August 28, 2021 $ 3,328 $ 367 $ 441 $ 4,136 |
Asset Impairments
Asset Impairments | 12 Months Ended |
Aug. 28, 2021 | |
Asset Impairments [Abstract] | |
Asset Impairments | 14. 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, Net 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 the prepaid asset 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 fiscal year 2021, the Company entered into a legal settlement agreement with a vendor and, as a result, received $ 20,840 of loss recovery which was reflected in its Consolidated Statements of Income related to this PPE prepayment impairment. The Company continues to pursue its legal avenues for recovery of the remaining prepayment. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Aug. 28, 2021 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 15. COMMITMENTS AND CONTINGENCIES Leases Commitments The Company’s lease portfolio includes certain real estate (branch offices, regional inventory centers and customer fulfillment centers), automobiles and other equipment. Refer to Note 10, “Leases” for more information. Legal Proceedings In the ordinary course of business, 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 li quidity. |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended |
Aug. 28, 2021 | |
Schedule II - Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation And Qualifying Accounts | MSC INDUSTRIAL DIRECT CO., INC. SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (In thousands) Description Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts Deductions (2) Balance at End of Year Deducted from asset accounts: For the fiscal year ended August 31, 2019 Allowance for credit losses (1) $ 12,992 $ 10,763 $ — $ 6,667 $ 17,088 Deducted from asset accounts: For the fiscal year ended August 29, 2020 Allowance for credit losses (1) $ 17,088 $ 11,008 $ — $ 9,847 $ 18,249 Deducted from asset accounts: For the fiscal year ended August 28, 2021 Allowance for credit losses (1) $ 18,249 $ 8,181 $ — $ 8,014 $ 18,416 (1) Included in accounts receivable. (2) Comprised of uncollected accounts charged against the allowance. |
Business And Summary Of Signi_2
Business And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Aug. 28, 2021 | |
Basis Of Presentation [Abstract] | |
Business | Business MSC Industrial Direct Co., Inc. (together with its wholly owned subsidiaries and entities in which it maintains a controlling financial interest, “MSC,” “MSC Industrial” or the “Company”) is a leading North American distributor of a broad range of metalworking and maintenance, repair and operations (“MRO”) products and services, with co-located headquarters in Melville, New York and Davidson, North Carolina. The Company has an additional office support center in Southfield, Michigan and serves primarily domestic markets through its distribution network of 28 branch offices, seven regional inventory centers and 11 customer fulfillment centers. |
Principles Of Consolidation | Principles of Consolidation The 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 fiscal year 2020, 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 personal protective equipment (“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 shortages of fuel, labor and 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. |
Fiscal Year | Fiscal Year The Company operates on a 52/53-week fiscal year ending on the Saturday closest to August 31 st of each year. The financial statements for fiscal years 2021, 2020 and 2019 contain activity for 52 weeks. Unless the context requires otherwise, references to years contained herein pertain to the Company’s fiscal year. |
Use Of Estimates | Use of Estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used in preparing the accompanying consolidated financial statements. |
Cash And Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term, highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are carried at cost, which approximates fair value. |
Concentrations Of Credit Risk | Concentrations of Credit Risk The Company’s mix of receivables is diverse, selling its products primarily to end-users. The Company’s customer base represents many diverse industries primarily concentrated in the United States. The Company performs periodic credit evaluations of its customers’ financial condition, and collateral is generally not required. The Company evaluates the collectability of accounts receivable based on numerous factors, including past transaction history with customers and their creditworthiness, and the Company provides a reserve for accounts that it believes to be uncollectible. The Company’s cash includes deposits with commercial banks. The terms of these deposits and investments provide that all monies are available to the Company upon demand. The Company maintains the majority of its cash with high- quality financial institutions. Deposits held with banks may exceed insurance limits. While MSC monitors the creditworthiness of these commercial banks and financial institutions, a crisis in the U.S. financial systems could limit access to funds and/or result in a loss of principal. |
Allowance for Credit Losses | Allowance for Credit Losses The Company establishes reserves for customer accounts that are deemed uncollectible. The allowance for credit losses is based on several f actors, including the age of the receivables and the historical ratio of actual write-offs to the age of the receivables, and also reflects the adoption of the new accounting standard related to current expected credit losses in the most recent fiscal year. See “Recently Adopted Accounting Pronouncements.” in this Note 1 for more information. These analyses also take into consideration economic conditions that may have an impact on a specific industry, group of customers or a specific customer. While the Company has a broad customer base, representing many diverse industries primarily in all regions of the United States, a general economic downturn could result in higher than expected defaults and, therefore, the need to revise estimates for bad debts. |
Inventories | Inventories Inventories consist of merchandise held for resale and are stated at the lower of weighted average cost or net realizable value. The Company evaluates the recoverability of its slow-moving or obsolete inventories quarterly. The Company estimates the recoverable cost of such inventory by product type and considering such factors as its age, historic and current demand trends, the physical condition of the inventory, historical write-down information as well as assumptions regarding future demand. The Company’s ability to recover its cost for slow-moving or obsolete inventory can be affected by such factors as general market conditions, future customer demand, and relationships with suppliers. Substantially all of the Company’s inventories have demonstrated long shelf lives and are not highly susceptible to obsolescence. In addition, many of the Company’s inventory items are eligible for return under various supplier agreements. |
Property, Plant And Equipment | Property, Plant and Equipment Property, plant and equipment and capitalized computer software are stated at cost less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to expense as incurred; costs of major renewals and improvements are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts and the profit or loss on such disposition is reflected in income. Depreciation and amortization of property, plant and equipment are computed for financial reporting purposes on the straight-line method based on the estimated useful lives of the assets. Leasehold improvements are amortized over either their respective lease terms or their estimated lives, whichever is shorter. Estimated useful lives range from three years to 40 years for leasehold improvements and buildings, three years to 10 years for computer systems, equipment and software, and three years to 20 years for furniture, fixtures and equipment. Capitalized computer software costs are amortized using the straight-line method over the estimated useful life. These costs include purchased software packages, payments to vendors and consultants for the development, implementation or modification of purchased software packages for Company use, and payroll and related costs for associates connected with internal-use software projects. Capitalized computer software costs are included within property, plant and equipment on the Company’s Consolidated Balance Sheets. |
Leases | 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, lease components and non-lease components, such as common area maintenance, are grouped as a single lease component. All leases with an initial term of 12 months or less are not included on the balance sheet. 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. 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 Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in operating expenses on the consolidated statements of income. |
Goodwill And Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets The Company’s business acquisitions typically result in the recording of goodwill and other intangible assets, which affect the amount of amortization expense and possibly impairment write-downs that the Company may incur in future periods. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired in business acquisitions. The Company annually reviews goodwill and intangible assets that have indefinite lives for impairment in its fiscal fourth quarter and when events or changes in circumstances indicate the carrying values of these assets might exceed their current fair values. The Company currently operates at a single reporting unit level. Events or circumstances that may result in an impairment review include changes in macroeconomic conditions, industry and market considerations, cost fact events affecting the reporting unit or a sustained decrease in share price. Each year, the Company may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If impairment is indicated in the qualitative assessment or if management elects to initially perform a quantitative assessment of goodwill or intangible assets, the impairment test uses a single step approach. This single step approach compares the carrying value of a reporting unit to its fair value. If the fair value of the reporting unit exceeds its carrying amount, goodwill and intangible assets of the reporting unit are not impaired. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the amount of goodwill allocated to that reporting unit. Based on the qualitative assessments of goodwill and intangible assets that have indefinite lives performed by the Company in its respective fiscal fourth quarters, there was no indicator of impairment for fiscal years 2021, 2020 and 2019. The balances and changes in the carrying amount of goodwill are as follows: Balance as of August 31, 2019 $ 677,266 Foreign currency translation adjustments 313 Balance as of August 29, 2020 $ 677,579 Hurst acquisition (1) 9,282 MSC Mexico acquisition (2) 4,753 Foreign currency translation adjustments 1,090 Balance as of August 28, 2021 $ 692,704 (1) In June 2021, the Company acquired a majority ownership interest in Hurst (as defined in Note 5, “Business Combinations”). The Company holds an 80 % interest in the business. (2) In July 2021, MSC Mexico (as defined in Note 5, “Business Combinations”) acquired additional assets of TAC (as defined in Note 5, “Business Combinations”) in conjunction with the acquisition of its outsourcing and logistics businesses. The Company holds a 75 % interest in MSC Mexico. See Note 5, “Business Combinations” for further discussion of this acquisition. The components of the Company’s intangible assets for fiscal years 2021 and 2020 are as follows: For the Fiscal Years Ended August 28, 2021 August 29, 2020 Weighted Average Useful Life (in years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer Relationships 5 - 18 $ 220,669 $ ( 133,361 ) $ 214,460 $ ( 123,958 ) Non-Compete Agreements 3 766 ( 21 ) — — Trademarks 1 - 5 7,567 ( 6,577 ) 7,403 ( 5,843 ) Trademarks Indefinite 12,811 — 12,811 — Total $ 241,813 $ ( 139,959 ) $ 234,674 $ ( 129,801 ) For fiscal year 2021, the Company recorded approximately $ 7,375 of intangible assets, consisting of the acquired customer relationships, non-compete agreements and trademarks from the Hurst and MSC Mexico acquisitions. See Note 5, “Business Combinations.” During fiscal year 2021, approximately $ 236 in gross intangible assets, and any related accumulated amortization, were written off related to trademarks that are no longer being utilized. For fiscal year 2020, the Company did not record any additional intangible assets. For fiscal year 2020, approximately $ 443 in gross intangible assets, and any related accumulated amortization, were written off related to trademarks that are no longer being utilized. The Company’s amortizable intangible assets are amortized on a straight-line basis, including customer relationships, based on an approximation of customer attrition patterns and best estimates of the use pattern of the asset. Amortization expense of the Company’s intangible assets was $ 10,934 , $ 11,463 and $ 11,746 during fiscal years 2021, 2020, and 2019, respectively. Estimated amortization expense for each of the five succeeding fiscal years is as follows: Fiscal Year 2022 $ 11,389 2023 11,245 2024 10,911 2025 10,661 2026 10,641 |
Impairment Of Long-Lived Assets | Impairment of Long-Lived Assets The Company periodically evaluates the net realizable value of long-lived assets, including definite-lived intangible assets, operating lease right-of-use assets, and property and equipment, relying on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flows. Impairment is assessed by evaluating the estimated undiscounted cash flows over the asset’s remaining life. If estimated cash flows are insufficient to recover the investment, an impairment loss is recognized. In fiscal year 2021, the Company recorded impairment losses on its operating lease right-of-use assets related to the enhanced customer support model. See Note 13, “Restructuring Costs” for further discussion. No impairment losses were required to be recorded by the Company during fiscal years 2020 and 2019. |
Revenue Recognition | Revenue Recognition Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. The Company’s contracts have a single performance obligation, to deliver products, and are short-term in nature. All revenue is recognized when the Company satisfies its performance obligations under the contract, and invoicing occurs at approximately the same point in time. The Company recognizes revenue once the customer obtains control of the products. The Company’s product sales have standard payment terms that do not exceed one year. The Company considers shipping and handling as activities to fulfill its performance obligation. The Company estimates product returns based on historical return rates. The Company offers customers sales incentives, which primarily consist of volume rebates, and upfront sign-on payments. These volume rebates and payments are not in exchange for a distinct good or service and result in a reduction of net sales from the goods transferred to the customer at the later of when the related revenue is recognized or when the Company promises to pay the consideration. |
Gross Profit | Gross Profit Gross profit primarily represents the difference between the sale price to our customers and the product cost from our suppliers (net of earned rebates and discounts), including the cost of inbound freight. The cost of outbound freight (including internal transfers), purchasing, receiving and warehousing are included in operating expenses. |
Vendor Consideration | Vendor Consideration The Company receives volume rebates from certain vendors based on contractual arrangements with such vendors. Rebates received from these vendors are recognized as a reduction to the cost of goods sold in the consolidated statements of income when the inventory is sold. In addition, the Company records cash consideration received for advertising costs incurred to sell the vendor’s products as a reduction of the Company’s advertising costs and is reflected in operating expenses in the consolidated statements of income. The total amount of advertising costs, net of co-operative advertising income from vendor-sponsored programs, included in operating expenses in the consolidated statements of income was approximately $ 17,749 , $ 13,341 and $ 18,812 during fiscal years 2021, 2020 and 2019, respectively. |
Product Warranties | Product Warranties The Company generally offers a maximum one year warranty, including parts and labor, for certain of its products sold. 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 to 90 days. In general, many of the Company’s general merchandise products are covered by third-party original equipment manufacturers’ warranties. The Company’s warranty expense has been minimal. |
Shipping And Handling Costs | Shipping and Handling Costs The Company includes shipping and handling fees billed to customers in net sales and shipping, and handling costs associated with outbound freight in Operating expenses in the Company’s Consolidated Statements of Income. The shipping and handling costs in Operating expenses were approximately $ 133,737 , $ 125,859 and $ 138,242 during fiscal years 2021, 2020 and 2019, respectively. |
Stock-Based Compensation | Stock-Based Compensation In accordance with Accounting Standards Codification (“ASC”) Topic 718, “Compensation — Stock Compensation” (“ASC Topic 718”), the Company estimates the fair value of share-based payment awards on the date of grant. The value of awards that are ultimately expected to vest is recognized as an expense over the requisite service periods. The fair value of the Company’s restricted stock awards, restricted stock units and performance share units is based on the closing market price of the Company’s Class A Common Stock on the date of grant . The Company estimates the fair value of stock options granted using a Black-Scholes option-pricing model. This model requires the Company to make estimates and assumptions with respect to the expected term of the option, the expected volatility of the price of the Company’s Class A Common Stock and the expected forfeiture rate. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The expected term is based on the historical exercise behavior of grantees, as well as the contractual life of the option grants. The expected volatility factor is based on the volatility of the Company’s Class A Common Stock for a period equal to the expected term of the stock option. In addition, forfeitures of share-based awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option and restricted stock award and unit forfeitures and records stock-based compensation expense only for those awards that are expected to vest. |
Share Repurchases And Treasury Stock | Share Repurchases and Treasury Stock Repurchased shares may be retired immediately and resume the status of authorized but unissued shares or may be held by the Company as treasury stock. The Company accounts for treasury stock under the cost method, using the first-in, first-out flow assumption, and is included in “Class A treasury stock, at cost” on the Consolidated Balance Sheets. When the Company reissues treasury stock, the gains are recorded in additional paid-in capital (“APIC”), while the losses are recorded to APIC to the extent that the previous net gains on the reissuance of treasury stock are available to offset the losses. If the loss is larger than the previous gains available, then the loss is recorded to retained earnings. The Company accounts for repurchased shares retired immediately or treasury stock retired under the constructive retirement method. When shares are retired, the par value of the repurchased shares is deducted from common stock and the excess repurchase price over par is deducted by allocation to both APIC and retained earnings. The amount allocated to APIC is calculated as the original cost of APIC per share outstanding using the first-in, first-out flow assumption and is applied to the number of shares repurchased. Any remaining amount is allocated to retained earnings. |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The carrying values of the Company’s financial instruments, including cash and cash equivalents, receivables, accounts payable and accrued liabilities, approximate fair value because of the short maturity of these instruments. In addition, based on borrowing rates currently available to the Company for borrowings with similar terms, the carrying values of the Company’s lease obligations also approximate fair value. The fair values of the Company’s long-term debt, including current maturities, are estimated based on quoted market prices for the same or similar issues or on current rates offered to the Company for debt of the same remaining maturities. Under this method, the Company’s fair values of any long-term obligations was not significantly different than the carrying values at August 28, 2021 and August 29, 2020. |
Foreign Currency | Foreign Currency The local currency is the functional currency for all of MSC’s operations outside the United States. Assets and liabilities of these operations are translated to U.S. dollars at the exchange rate in effect at the end of each period. Income statement accounts are translated at the average exchange rate prevailing during the period. Translation adjustments arising from the use of differing exchange rates from period to period are included as a component of other comprehensive income within shareholders’ equity. Gains and losses from foreign currency transactions are included in net income for the period. |
Income Taxes | Income Taxes The Company has established deferred income tax assets and liabilities for temporary differences between the financial reporting bases and the income tax bases of its assets and liabilities at enacted tax rates expected to be in effect when such assets or liabilities are realized or settled pursuant to the provisions of ASC Topic 740, “Income Taxes,” which prescribes a comprehensive model for the financial statement recognition, measurement, classification and disclosure of uncertain tax positions. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The amounts of unrecognized tax benefits, exclusive of interest and penalties that would affect the effective tax rate, were $ 4,782 and $ 10,995 as of August 28, 2021 and August 29, 2020, respectively. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of consolidated net income and foreign currency translation adjustments. Foreign currency translation adjustments included in comprehensive income were not tax-effected as investments in international affiliates are deemed to be permanent. |
Geographic Regions | Geographic Regions The Company’s sales and assets are predominantly generated from U.S. locations. For fiscal year 2021, the Company’s operations in the United Kingdom, Canada and Mexico represented approximately 6 % of its consolidated net sales. |
Segment Reporting | Segment Reporting The Company utilizes the management approach for segment disclosure, which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of our reportable segments. The Company operates in one operating and reportable segment as a distributor of metalworking and MRO products and services. The Company’s chief operating decision maker, its Chief Executive Officer, manages the Company’s operations on a consolidated basis for purposes of allocating resources. Substantially all of the Company’s revenues and long-lived assets are in the United States. The Company does not disclose revenue information by product category as it is impracticable to do so as a result of its numerous product offerings and the manner in which its business is managed. |
Business Combinations | Business Combinations The Company accounts for business combinations in accordance with ASC Topic 805, “Business Combinations ” (“ASC Topic 805”). ASC Topic 805 established principles and requirements for recognizing the total consideration transferred to and the assets acquired, liabilities assumed and any non-controlling interest in the acquired target in a business combination. ASC Topic 805 also provides guidance for recognizing and measuring goodwill acquired in a business combination and requires the acquirer to disclose information that users may need to evaluate and understand the financial impact of the business combination. See Note 5, “Business Combinations” for further discussion. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Measurement of Credit Losses 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 Consolidated Financial Statements. Goodwill Impairment 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 Consolidated Financial Statements. Cloud Computing Arrangements Effective August 30, 2020, the Company adopted FASB ASU 2018-15: Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. ASU 2018-15 clarifies the requirements for capitalizing implementation costs in cloud computing arrangements and aligns them with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted Reference Rate Reform 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 the London InterBank Offered Rate (“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. Income Taxes 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 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 be significant to the Company’s Consolidated Financial Statements. |
Reclassifications | Reclassifications Certain prior period Operating expenses were reclassified into Restructuring costs within the Company’s 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 Consolidated Statements of Shareholder’s Equity. These reclassifications did not impact total dividends declared in any period presented. |
Business And Summary Of Signi_3
Business And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Business And Summary Of Significant Accounting Policies [Abstract] | |
Change In The Carrying Amount Of Goodwill | Balance as of August 31, 2019 $ 677,266 Foreign currency translation adjustments 313 Balance as of August 29, 2020 $ 677,579 Hurst acquisition (1) 9,282 MSC Mexico acquisition (2) 4,753 Foreign currency translation adjustments 1,090 Balance as of August 28, 2021 $ 692,704 (1) In June 2021, the Company acquired a majority ownership interest in Hurst (as defined in Note 5, “Business Combinations”). The Company holds an 80 % interest in the business. (2) In July 2021, MSC Mexico (as defined in Note 5, “Business Combinations”) acquired additional assets of TAC (as defined in Note 5, “Business Combinations”) in conjunction with the acquisition of its outsourcing and logistics businesses. The Company holds a 75 % interest in MSC Mexico. |
Components Of Other Intangible Assets | For the Fiscal Years Ended August 28, 2021 August 29, 2020 Weighted Average Useful Life (in years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer Relationships 5 - 18 $ 220,669 $ ( 133,361 ) $ 214,460 $ ( 123,958 ) Non-Compete Agreements 3 766 ( 21 ) — — Trademarks 1 - 5 7,567 ( 6,577 ) 7,403 ( 5,843 ) Trademarks Indefinite 12,811 — 12,811 — Total $ 241,813 $ ( 139,959 ) $ 234,674 $ ( 129,801 ) |
Schedule Of Estimated Amortization Expense | Fiscal Year 2022 $ 11,389 2023 11,245 2024 10,911 2025 10,661 2026 10,641 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Revenue [Abstract] | |
Schedule Of Disaggregation Of Revenue | The following table presents the Company’s percentage of net sales by customer end-market for fiscal years 2021 and 2020: For the Fiscal Year Ended For the Fiscal Year Ended August 28, 2021 August 29, 2020 (52 weeks) (52 weeks) Manufacturing Heavy 48 % 45 % Manufacturing Light 20 % 21 % Government 9 % 10 % Retail/Wholesale 7 % 7 % 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 fiscal years 2021 and 2020: For the Fiscal Year Ended For the Fiscal Year Ended August 28, 2021 August 29, 2020 (52 weeks) (52 weeks) United States $ 3,049,543 94 % $ 3,044,943 95 % Mexico 91,917 3 % 57,549 2 % United Kingdom 54,844 2 % 48,505 2 % Canada 46,920 1 % 41,402 1 % Total net sales $ 3,243,224 100 % $ 3,192,399 100 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Net Income Per Share [Abstract] | |
Computation Of Basic And Diluted Net Income Per Common Share Under Treasury Stock Method | For the Fiscal Years Ended August 28, August 29, August 31, 2021 2020 2019 (52 weeks) (52 weeks) (52 weeks) Numerator: Net income attributable to MSC Industrial as reported $ 216,907 $ 251,117 $ 288,865 Less: Distributed net income available to participating securities — — ( 45 ) Less: Undistributed net income available to participating securities — — ( 75 ) Numerator for basic net income per share: Undistributed and distributed net income available to common shareholders $ 216,907 $ 251,117 $ 288,745 Add: Undistributed net income allocated to participating securities — — 75 Less: Undistributed net income reallocated to participating securities — — ( 75 ) Numerator for diluted net income per share: Undistributed and distributed net income available to common shareholders $ 216,907 $ 251,117 $ 288,745 Denominator: Weighted-average shares outstanding for basic net income per share 55,737 55,472 55,245 Effect of dilutive securities 356 171 263 Weighted-average shares outstanding for diluted net income per share 56,093 55,643 55,508 Net income per share: Basic $ 3.89 $ 4.53 $ 5.23 Diluted $ 3.87 $ 4.51 $ 5.20 Potentially dilutive securities 314 1,393 1,080 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
TAC [Member] | |
Summary Of Purchase Price Allocation | Accounts receivable $ 180 Identifiable intangibles 2,575 Goodwill 4,753 Property, plant and equipment 553 Total Purchase Price Consideration $ 8,061 |
Hurst [Member] | |
Summary Of Purchase Price Allocation | Cash $ 20 Inventories 2,431 Accounts receivable 2,958 Prepaid expenses and other current assets 232 Identifiable intangibles 4,800 Goodwill 9,282 Property, plant and equipment 535 Total assets acquired $ 20,258 Accounts payable 772 Accrued liabilities 360 Total liabilities assumed $ 1,132 Net assets acquired $ 19,126 Less: Fair Value of Noncontrolling Interest ( 3,825 ) Total MSC Industrial Purchase Price Consideration $ 15,301 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Property, Plant And Equipment [Abstract] | |
Summary Of Property, Plant And Equipment | August 28, August 29, Number of Years 2021 2020 Land — $ 28,151 $ 28,139 Building and improvements 3 - 40 189,510 188,882 Leasehold improvements The lesser of lease term or 7 5,038 3,306 Furniture, fixtures and equipment 3 - 20 173,298 184,837 Computer systems, equipment and software 3 - 10 452,328 424,134 848,325 829,298 Less: accumulated depreciation and amortization 549,909 527,319 Total $ 298,416 $ 301,979 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Income Taxes [Abstract] | |
Components Of Income Before Provision For Income Taxes | For the Fiscal Years Ended August 28, August 29, August 31, 2021 2020 2019 Domestic $ 282,478 $ 329,482 $ 383,515 Foreign 5,901 4,768 ( 386 ) Total $ 288,379 $ 334,250 $ 383,129 |
Provision For Income Taxes | For the Fiscal Years Ended August 28, August 29, August 31, 2021 2020 2019 Current: Federal $ 60,988 $ 58,501 $ 66,248 State and local 15,237 14,564 16,239 Foreign 1,327 1,073 ( 87 ) 77,552 74,138 82,400 Deferred: Federal ( 5,513 ) 7,392 10,622 State and local ( 842 ) 1,091 1,310 Foreign ( 755 ) ( 129 ) — ( 7,110 ) 8,354 11,932 Total $ 70,442 $ 82,492 $ 94,332 |
Components Of Deferred Tax Assets And Liabilities | August 28, August 29, 2021 2020 Deferred tax liabilities: Depreciation $ ( 38,825 ) $ ( 41,049 ) Right-of-use assets ( 10,998 ) ( 14,260 ) Goodwill ( 105,203 ) ( 96,303 ) Intangible amortization ( 2,667 ) ( 1,478 ) ( 157,693 ) ( 153,090 ) Deferred tax assets: Accounts receivable 4,154 4,109 Lease liability 10,767 14,231 Inventory 16,194 8,430 Self-insurance liability 1,859 — Deferred compensation 328 753 Stock-based compensation 6,295 6,224 Foreign tax credit 2,204 2,159 Less: valuation allowance ( 826 ) ( 1,403 ) Other accrued expenses/reserves 13,681 8,440 54,656 42,943 Net Deferred Tax Liabilities $ ( 103,037 ) $ ( 110,147 ) |
Reconciliation Of Statutory Federal Income Tax Rate To Effective Tax Rate | For the Fiscal Years Ended August 28, August 29, August 31, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 4.1 3.7 3.7 Other, net ( 0.7 ) — ( 0.1 ) Effective income tax rate 24.4 % 24.7 % 24.6 % |
Changes In Gross Unrecognized Tax Benefits | August 28, August 29, 2021 2020 Beginning Balance $ 12,562 $ 13,297 Additions for tax positions relating to current year 624 1,682 Additions for tax positions relating to prior years — 29 Reductions for tax positions relating to prior years ( 378 ) ( 25 ) Settlements ( 5,058 ) ( 956 ) Lapse of statute of limitations ( 1,631 ) ( 1,465 ) Ending Balance $ 6,119 $ 12,562 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Accrued Liabilities [Abstract] | |
Schedule Of Accrued Liabilities | August 28, August 29, 2021 2020 Accrued payroll and fringe $ 51,522 $ 39,840 Accrued bonus 20,946 15,844 Accrued sales, property and income taxes 25,866 14,110 Accrued sales rebates and returns 22,603 24,994 Accrued restructuring and other related costs 4,136 10,990 Accrued dividend equivalents 7,275 5,247 Accrued other 26,890 27,870 Total accrued liabilities $ 159,238 $ 138,895 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Debt [Abstract] | |
Schedule Of Debt | August 28, August 29, 2021 2020 Amended Revolving Credit Facility $ 234,000 $ 250,000 Uncommitted Credit Facilities 201,500 1,200 Long-Term Note Payable 4,750 - 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 2.40 % Series 2019A Notes, due March 5, 2024 (1) 50,000 50,000 Financing arrangements 191 194 Less: unamortized debt issuance costs ( 1,853 ) ( 843 ) Total debt, excluding obligations under finance leases $ 783,588 $ 615,551 Less: current portion ( 201,160 ) (2) ( 120,986 ) (3) Total long-term debt, excluding obligations under finance leases $ 582,428 $ 494,565 (1) Represents private placement debt issued under Shelf Facility Agreements. (2) Consists of $ 201,500 from the Uncommitted Credit Facilities (as defined below), $ 87 from financing arrangements, and net of unamortized debt issuance costs expected to be amortized in the next 12 months. (3) Consists of $ 100,000 from the Amended Revolving Credit Facility (as defined below), $ 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 unamortized debt issuance costs expected to be amortized in the next 12 months. |
Schedule Of Maturities Of Debt | Maturities of Fiscal Year Long-Term Debt 2022 $ — 2023 125,000 2024 50,000 2025 20,000 2026 334,000 Thereafter 54,750 Total $ 583,750 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Leases [Abstract] | |
Components Of Lease Cost | For the Fiscal Years Ended August 28, 2021 August 29, 2020 Operating lease cost $ 22,822 $ 25,445 Variable lease benefit ( 2,001 ) ( 865 ) Short-term lease cost 1,074 874 Finance lease cost: Amortization of leased assets 1,290 1,227 Interest on leased liabilities 83 110 Total Lease Cost $ 23,268 $ 26,791 |
Supplemental Balance Sheet Information | August 28, August 29, Classification 2021 2020 Assets Operating lease assets Operating lease assets $ 49,011 (2) $ 56,173 Finance lease assets (1) Property, plant and equipment, net 2,377 3,625 Total leased assets $ 51,388 $ 59,798 Liabilities Current Operating Current portion of operating lease liabilities $ 13,927 (2) $ 21,815 Finance Current portion of debt including obligations under finance leases 1,273 1,262 Noncurrent Operating Noncurrent operating lease liabilities 36,429 (2) 34,379 Finance Long-term debt including obligations under finance leases 1,188 2,453 Total lease liabilities $ 52,817 $ 59,909 (1) Finance lease assets are net of accumulated amo rtization of $ 2,729 and $ 1,439 as of August 28, 20 21 and August 29, 2020, respectively. (2) During fiscal year 2021, the Company recorded an impairment charge of $ 14,975 for impacted operating lease assets, net of gains related to settlement of lease liabilities, in Restructuring costs on the Consolidated Statements of Income. See Note 13, “Restructuring Costs” for additional information. August 28, August 29, 2021 2020 Weighted average remaining lease term (years) Operating Leases 5.0 4.0 Finance Leases 2.0 2.9 Weighted average discount rate Operating Leases 3.6 % 3.6 % Finance Leases 2.7 % 2.7 % |
Supplemental Cash Flow Information | For the Fiscal Years Ended August 28, 2021 August 29, 2020 Operating Cash Outflows from Operating Leases $ 36,653 $ 24,879 Operating Cash Outflows from Finance Leases 83 110 Financing Cash Outflows from Finance Leases 1,295 1,247 Leased assets obtained in exchange for new lease liabilities: Operating Leases $ 26,211 $ 17,552 Finance Leases 42 1,973 |
Schedule Of Future Lease Payments | Fiscal Year (1) Operating Leases Finance Leases Total 2022 $ 15,420 $ 1,353 $ 16,773 2023 11,211 1,027 12,238 2024 7,983 161 8,144 2025 6,254 12 6,266 2026 5,717 6 5,723 Thereafter 8,366 - 8,366 Total Lease Payments 54,951 2,559 57,510 Less: Imputed Interest 4,595 98 4,693 Present Value of Lease Liabilities (2) $ 50,356 $ 2,461 $ 52,817 (1) Future lease payments by fiscal year are based on contractual lease obligations. (2) Includes the current portion of $ 13,927 for operating leases and $ 1,273 for finance leases. |
Associate Benefit Plan (Tables)
Associate Benefit Plan (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Associate Benefit Plan [Abstract] | |
Schedule Of Stock-Based Compensation Expense | For the Fiscal Years Ended August 28, August 29, August 31, 2021 2020 2019 Stock options $ 2,285 $ 3,645 $ 4,786 Restricted share awards — 185 1,552 Restricted stock units 13,976 12,319 9,633 Performance share units 1,233 575 — Associate Stock Purchase Plan 227 208 312 Total 17,721 16,932 16,283 Deferred income tax benefit ( 4,324 ) ( 4,182 ) ( 4,006 ) Stock-based compensation expense, net $ 13,397 $ 12,750 $ 12,277 |
Summary Of Stock Option Activity | 2021 Shares Weighted-Average Exercise Price Outstanding - beginning of year 1,539 $ 75.76 Granted — — Exercised ( 401 ) 73.96 Canceled/Forfeited ( 8 ) 79.63 Outstanding - end of year 1,130 $ 76.38 Exercisable - end of year 890 $ 74.87 |
Schedule Of Option Grant Fair Value Assumptions | 2019 Expected life (in years) 4.0 Risk-free interest rate 2.98 % Expected volatility 23.1 % Expected dividend yield 2.70 % Weighted-Average Grant-Date Fair Value $ 14.05 |
Summary Of Stock Options By Range Of Exercise Price | Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Outstanding at August 28, 2021 Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Intrinsic Value Number of Options Exercisable at August 28, 2021 Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Intrinsic Value $ 58.90 – $ 71.33 389 1.7 $ 66.20 $ 7,449 389 1.7 $ 66.20 $ 7,449 71.34 – 79.60 271 3.2 79.60 1,561 190 3.2 79.60 1,093 79.61 – 81.76 73 1.2 81.76 262 73 1.2 81.76 262 81.77 – 83.03 397 3.4 83.16 867 238 2.8 83.13 529 1,130 2.6 $ 76.38 $ 10,139 890 2.3 $ 74.87 $ 9,333 |
Summary Of Performance Share Unit Activity | 2021 Shares Weighted-Average Grant-Date Fair Value Non-vested PSUs at the beginning of the year 28 $ 76.32 Granted 31 74.79 Vested — — Canceled/Forfeited ( 1 ) 75.55 Non-vested PSUs at the end of the year (1) 58 $ 75.52 (1) Excludes 8 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 | 2021 Shares Weighted-Average Grant-Date Fair Value Non-vested RSU awards at the beginning of the year 482 $ 76.73 Granted 235 75.16 Vested ( 168 ) 74.65 Canceled/Forfeited ( 25 ) 76.79 Non-vested RSU awards at the end of the year (1) 524 $ 76.69 (1) Excludes approximately 84 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the 2015 Omnibus Incentive Plan. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Restructuring Costs [Abstract] | |
Schedule Of Restructuring Charges | For the Fiscal Years Ended August 28, August 29, 2021 2020 Operating lease asset impairment loss $ 17,923 $ — Settlement of lease liabilities (gain) ( 2,948 ) — Other exit-related costs 3,282 — Consulting-related costs 8,615 6,583 Associate severance and separation costs 4,267 10,142 Equity acceleration costs associated with severance 253 304 Total restructuring and other related costs $ 31,392 $ 17,029 |
Summary Of Restructuring Related Liabilities | Consulting-related costs Separation and severance costs Other exit-related costs Total Balance at August 31, 2019 $ — $ 6,044 $ — $ 6,044 Additions 6,583 10,142 — 16,725 Payments and other adjustments ( 2,520 ) ( 9,259 ) — ( 11,779 ) Balance at August 29, 2020 4,063 6,927 — 10,990 Additions 8,615 4,267 3,282 16,164 Payments and other adjustments ( 9,350 ) ( 10,827 ) ( 2,841 ) ( 23,018 ) Balance at August 28, 2021 $ 3,328 $ 367 $ 441 $ 4,136 |
Business And Summary Of Signi_4
Business And Summary Of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 27, 2021USD ($) | Aug. 28, 2021USD ($)segmentstoreitemwarehouse | Aug. 29, 2020USD ($) | Aug. 31, 2019USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of branch offices | store | 28 | |||
Regional inventory centers | item | 7 | |||
Number of customer fulfillment centers | warehouse | 11 | |||
Inventory write-down | $ 30,091 | $ 30,091 | ||
Acquired intangible assets | 7,375 | |||
Impairment of intangible assets | 443 | |||
Amortization expense | 10,934 | 11,463 | 11,746 | |
Advertising costs | 17,749 | 13,341 | 18,812 | |
Shipping and handling costs | 133,737 | 125,859 | $ 138,242 | |
Unrecognized tax benefit that would affect effective tax rate | $ 4,782 | $ 10,995 | ||
Number of Operating Segments | segment | 1 | |||
Number of reportable segments | segment | 1 | |||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Original manufacturers warranty period | 30 days | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Warranty period | 1 year | |||
Original manufacturers warranty period | 90 days | |||
Net Sales [Member] | Geographic Concentration Risk [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | ||
Net Sales [Member] | Geographic Concentration Risk [Member] | U.K., Canada, and Mexico [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 6.00% | |||
Leasehold Improvements And Building [Member] | Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment estimated useful life | 3 years | |||
Leasehold Improvements And Building [Member] | Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment estimated useful life | 40 years | |||
Computer Systems, Equipment And Software [Member] | Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment estimated useful life | 3 years | |||
Computer Systems, Equipment And Software [Member] | Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment estimated useful life | 10 years | |||
Furniture, Fixtures And Equipment [Member] | Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment estimated useful life | 3 years | |||
Furniture, Fixtures And Equipment [Member] | Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment estimated useful life | 20 years | |||
Trademark [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment of intangible assets | $ 236 |
Business And Summary Of Signi_5
Business And Summary Of Significant Accounting Policies (Change In The Carrying Amount Of Goodwill) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2021 | Aug. 28, 2021 | Aug. 29, 2020 | |
Business Acquisition [Line Items] | |||
Goodwill, Beginning Balance | $ 677,579 | $ 677,266 | |
Foreign currency translation adjustments | 1,090 | 313 | |
Goodwill, Ending Balance | 692,704 | $ 677,579 | |
MSC Mexico [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition | $ 4,753 | ||
Ownership percentage | 75.00% | ||
Hurst [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill, Beginning Balance | $ 9,282 | ||
Acquisition | $ 9,282 | ||
Ownership percentage | 80.00% |
Business And Summary Of Signi_6
Business And Summary Of Significant Accounting Policies (Components Of Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Intangible Assets By Major Class [Line Items] | ||
Gross Carrying Amount, Total | $ 241,813 | $ 234,674 |
Accumulated Amortization | (139,959) | (129,801) |
Customer Relationships [Member] | ||
Intangible Assets By Major Class [Line Items] | ||
Gross Carrying Amount | 220,669 | 214,460 |
Accumulated Amortization | $ (133,361) | (123,958) |
Customer Relationships [Member] | Minimum [Member] | ||
Intangible Assets By Major Class [Line Items] | ||
Weighted Average Useful Life (in years) | 5 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Intangible Assets By Major Class [Line Items] | ||
Weighted Average Useful Life (in years) | 18 years | |
Non-Compete Agreements [Member] | ||
Intangible Assets By Major Class [Line Items] | ||
Weighted Average Useful Life (in years) | 3 years | |
Gross Carrying Amount | $ 766 | |
Accumulated Amortization | (21) | |
Trademark [Member] | ||
Intangible Assets By Major Class [Line Items] | ||
Gross Carrying Amount | 7,567 | 7,403 |
Accumulated Amortization | $ (6,577) | (5,843) |
Trademark [Member] | Minimum [Member] | ||
Intangible Assets By Major Class [Line Items] | ||
Weighted Average Useful Life (in years) | 1 year | |
Trademark [Member] | Maximum [Member] | ||
Intangible Assets By Major Class [Line Items] | ||
Weighted Average Useful Life (in years) | 5 years | |
Trademarks [Member] | ||
Intangible Assets By Major Class [Line Items] | ||
Gross Carrying Amount, Indefinite | $ 12,811 | 12,811 |
Accumulated Amortization |
Business And Summary Of Signi_7
Business And Summary Of Significant Accounting Policies (Schedule Of Estimated Amortization Expense) (Details) $ in Thousands | Aug. 28, 2021USD ($) |
Business And Summary Of Significant Accounting Policies [Abstract] | |
2022 | $ 11,389 |
2023 | 11,245 |
2024 | 10,911 |
2025 | 10,661 |
2026 | $ 10,641 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021USD ($)segment | Aug. 29, 2020USD ($) | |
Accrued sales returns | $ 5,759 | $ 5,315 |
Accrued sales incentives | 16,844 | 19,679 |
Prepaid sales incentives | 2,547 | 3,762 |
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 | 12 Months Ended | |||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,243,224 | $ 3,192,399 | $ 3,363,817 | |
Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | ||
Net Sales [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,243,224 | $ 3,192,399 | ||
Concentration risk, percentage | 100.00% | 100.00% | ||
Manufacturing Heavy [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 48.00% | 45.00% | ||
Manufacturing Light [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 20.00% | 21.00% | ||
Government [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 9.00% | 10.00% | ||
Retail/Wholesale [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 7.00% | 7.00% | ||
Commercial Services [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 4.00% | 5.00% | ||
Other Customers [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | [1] | 12.00% | 12.00% | |
United States [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,049,543 | $ 3,044,943 | ||
Concentration risk, percentage | 94.00% | 95.00% | ||
Mexico [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 91,917 | $ 57,549 | ||
Concentration risk, percentage | 3.00% | 2.00% | ||
United Kingdom [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 54,844 | $ 48,505 | ||
Concentration risk, percentage | 2.00% | 2.00% | ||
Canada [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 46,920 | $ 41,402 | ||
Concentration risk, percentage | 1.00% | 1.00% | ||
[1] | The Other category primarily includes individual customer and small business net sales not assigned to a specific industry classification. |
Fair Value (Details)
Fair Value (Details) | 12 Months Ended | ||
Aug. 28, 2021USD ($)ft² | Aug. 29, 2020USD ($) | Dec. 31, 2020ft² | |
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 | $ 298,416,000 | $ 301,979,000 | |
Long Island Customer Service Center [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Term of lease | 10 years | ||
Area of property | ft² | 170,000 | 26,000 | |
Property, plant and equipment, net | $ 15,300,000 |
Net Income Per Share (Computati
Net Income Per Share (Computation Of Basic And Diluted Net Income Per Common Share Under Treasury Stock Method) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Net Income Per Share [Abstract] | |||
Net income attributable to MSC Industrial as reported | $ 216,907 | $ 251,117 | $ 288,865 |
Less: Distributed net income available to participating securities | (45) | ||
Less: Undistributed net income available to participating securities | (75) | ||
Undistributed and distributed net income available to common shareholders | 216,907 | 251,117 | 288,745 |
Add: Undistributed net income allocated to participating securities | 75 | ||
Less: Undistributed net income reallocated to participating securities | (75) | ||
Undistributed and distributed net income available to common shareholders | $ 216,907 | $ 251,117 | $ 288,745 |
Weighted-average shares outstanding for basic net income per share | 55,737 | 55,472 | 55,245 |
Effect of dilutive securities | 356 | 171 | 263 |
Weighted-average shares outstanding for diluted net income per share | 56,093 | 55,643 | 55,508 |
Basic | $ 3.89 | $ 4.53 | $ 5.23 |
Diluted | $ 3.87 | $ 4.51 | $ 5.20 |
Potentially dilutive securities | 314 | 1,393 | 1,080 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2021USD ($) | Jul. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2019USD ($) | Feb. 28, 2019USD ($)entity | Aug. 28, 2021USD ($) | Aug. 29, 2020USD ($) | Aug. 31, 2019USD ($) | |
Business Acquisition [Line Items] | ||||||||
Notes payable | $ 4,750 | |||||||
Goodwill | 692,704 | $ 677,579 | $ 677,266 | |||||
MSC Mexico [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership interest in subsidiary | 75.00% | |||||||
TAC [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of subsidiaries involved in acquisition | entity | 2 | |||||||
Ownership interest in subsidiary | 75.00% | |||||||
Payments to acquire business | $ 13,911 | |||||||
Post-closing working capital adjustment paid out | $ 2,286 | |||||||
Fair value of contingent consideration to be paid out | $ 2,600 | |||||||
Non-recurring transaction and integration costs | $ 659 | |||||||
Acquired intangible assets | 2,575 | |||||||
Goodwill | 4,753 | |||||||
TAC [Member] | MSC Mexico [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire business | 6,719 | |||||||
Fair value of contingent consideration to be paid out | 1,342 | |||||||
Business acquisition purchase price | 8,061 | |||||||
TAC [Member] | Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired intangible assets | $ 1,809 | |||||||
Acquired intangible assets useful life | 9 years | |||||||
TAC [Member] | Non-Compete Agreements [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired intangible assets | $ 766 | |||||||
Acquired intangible assets useful life | 3 years | |||||||
TAC [Member] | Total Cash Consideration Fund [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 1,969 | |||||||
Notes payable | $ 4,750 | |||||||
Hurst [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership interest in subsidiary | 80.00% | |||||||
Percentage of ownership interest acquired | 80.00% | |||||||
Post-closing working capital adjustment paid out | $ 101 | |||||||
Non-recurring transaction and integration costs | $ 360 | |||||||
Business acquisition purchase price | $ 15,301 | |||||||
Acquired intangible assets | 4,800 | |||||||
Goodwill | 9,282 | |||||||
Hurst [Member] | Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired intangible assets | 4,400 | |||||||
Acquired intangible assets useful life | 7 years | |||||||
Hurst [Member] | Trademark [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired intangible assets | $ 400 | |||||||
Acquired intangible assets useful life | 5 years |
Business Combinations (Summary
Business Combinations (Summary Of Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Jul. 31, 2021 | Jun. 30, 2021 | Aug. 29, 2020 | Aug. 31, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 692,704 | $ 677,579 | $ 677,266 | ||
TAC [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | $ 180 | ||||
Identifiable intangibles | 2,575 | ||||
Goodwill | 4,753 | ||||
Property, plant and equipment | 553 | ||||
Total MSC Industrial Purchase Price Consideration | $ 8,061 | ||||
Hurst [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 20 | ||||
Inventories | 2,431 | ||||
Accounts receivable | 2,958 | ||||
Prepaid expenses and other current assets | 232 | ||||
Identifiable intangibles | 4,800 | ||||
Goodwill | 9,282 | ||||
Property, plant and equipment | 535 | ||||
Total assets acquired | 20,258 | ||||
Accounts payable | 772 | ||||
Accrued liabilities | 360 | ||||
Total Liabilities Assumed | 1,132 | ||||
Net Assets Acquired | 19,126 | ||||
Less: Fair Value of Noncontrolling Interest | (3,825) | ||||
Total MSC Industrial Purchase Price Consideration | $ 15,301 |
Property, Plant And Equipment_2
Property, Plant And Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Property, Plant And Equipment [Abstract] | |||
Capitalized interest, net of accumulated amortization | $ 606 | $ 639 | |
Depreciation expense | $ 57,199 | $ 57,229 | $ 53,243 |
Property, Plant And Equipment_3
Property, Plant And Equipment (Summary Of Property, Plant And Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 848,325 | $ 829,298 |
Less: accumulated depreciation and amortization | 549,909 | 527,319 |
Total | 298,416 | 301,979 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 28,151 | 28,139 |
Buildings And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 189,510 | 188,882 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,038 | 3,306 |
Furniture, Fixtures And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 173,298 | 184,837 |
Computer Systems, Equipment And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 452,328 | $ 424,134 |
Minimum [Member] | Buildings And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 3 years | |
Minimum [Member] | Furniture, Fixtures And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 3 years | |
Minimum [Member] | Computer Systems, Equipment And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 3 years | |
Maximum [Member] | Buildings And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 40 years | |
Maximum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 7 years | |
Maximum [Member] | Furniture, Fixtures And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 20 years | |
Maximum [Member] | Computer Systems, Equipment And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 10 years |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | Dec. 31, 2020 | |
Unrecognized tax benefits related to tax positions | $ 1,671 | |||
Provision for income taxes, interest and penalties | 689 | $ 23 | $ 27 | |
Accrued interest and penalties on income taxes | 277 | 585 | ||
Foreign tax credit carryover | 2,204 | 2,159 | ||
Tax credit carryover valuation allowance | 826 | $ 1,403 | ||
The CARES Act [Member] | ||||
Deferred employer-paid portion of social security payroll taxes | $ 18,887 | |||
The CARES Act [Member] | Will be Remitted by December 31, 2021 [Member] | ||||
Deferred employer-paid portion of social security payroll taxes | 9,444 | |||
The CARES Act [Member] | Will be Remitted by December 31, 2022 [Member] | ||||
Deferred employer-paid portion of social security payroll taxes | $ 9,443 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Before Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Income Taxes [Abstract] | |||
Domestic | $ 282,478 | $ 329,482 | $ 383,515 |
Foreign | 5,901 | 4,768 | (386) |
Income before provision for income taxes | $ 288,379 | $ 334,250 | $ 383,129 |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Income Taxes [Abstract] | |||
Current: Federal | $ 60,988 | $ 58,501 | $ 66,248 |
Current: State and local | 15,237 | 14,564 | 16,239 |
Current: Foreign | 1,327 | 1,073 | (87) |
Current: Total | 77,552 | 74,138 | 82,400 |
Deferred: Federal | (5,513) | 7,392 | 10,622 |
Deferred: State and local | (842) | 1,091 | 1,310 |
Deferred: Foreign | (755) | (129) | |
Deferred: Total | (7,110) | 8,354 | 11,932 |
Total | $ 70,442 | $ 82,492 | $ 94,332 |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Income Taxes [Abstract] | ||
Deferred tax liabilities: Depreciation | $ (38,825) | $ (41,049) |
Deferred tax liabilities: Right-of-use assets | (10,998) | (14,260) |
Deferred tax liabilities: Goodwill | (105,203) | (96,303) |
Deferred tax liabilities: Intangible amortization | (2,667) | (1,478) |
Deferred tax liabilities | (157,693) | (153,090) |
Deferred tax assets: Accounts receivable | 4,154 | 4,109 |
Deferred tax assets: Lease liability | 10,767 | 14,231 |
Deferred tax assets: Inventory | 16,194 | 8,430 |
Deferred tax assets: Self-insurance liability | 1,859 | |
Deferred tax assets: Deferred compensation | 328 | 753 |
Deferred tax assets: Stock-based compensation | 6,295 | 6,224 |
Deferred tax assets: Foreign tax credit | 2,204 | 2,159 |
Less: valuation allowance | (826) | (1,403) |
Deferred tax assets: Other accrued expenses/reserves | 13,681 | 8,440 |
Deferred tax assets | 54,656 | 42,943 |
Net Deferred Tax Liabilities | $ (103,037) | $ (110,147) |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Statutory Federal Income Tax Rate To Effective Tax Rate) (Details) | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Income Taxes [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 4.10% | 3.70% | 3.70% |
Other, net | (0.70%) | (0.10%) | |
Effective income tax rate | 24.40% | 24.70% | 24.60% |
Income Taxes (Changes In Gross
Income Taxes (Changes In Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Income Taxes [Abstract] | ||
Beginning balance | $ 12,562 | $ 13,297 |
Additions for tax positions relating to current year | 624 | 1,682 |
Additions for tax positions relating to prior years | 29 | |
Reductions for tax positions relating to prior years | (378) | (25) |
Settlements | (5,058) | (956) |
Lapse of statute of limitations | (1,631) | (1,465) |
Ending balance | $ 6,119 | $ 12,562 |
Accrued Liabilities (Schedule O
Accrued Liabilities (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Accrued Liabilities [Abstract] | ||
Accrued payroll and fringe | $ 51,522 | $ 39,840 |
Accrued bonus | 20,946 | 15,844 |
Accrued sales, property and income taxes | 25,866 | 14,110 |
Accrued sales rebates and returns | 22,603 | 24,994 |
Accrued restructuring and other related costs | 4,136 | 10,990 |
Accrued dividend equivalents | 7,275 | 5,247 |
Accrued other | 26,890 | 27,870 |
Total accrued liabilities | $ 159,238 | $ 138,895 |
Debt (Revolving Credit Faciliti
Debt (Revolving Credit Facilities) (Narrative) (Details) | 12 Months Ended | ||
Aug. 28, 2021USD ($)agreement | Aug. 29, 2020USD ($) | Aug. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||
Payments under revolving loans from credit facility | $ 399,200,000 | $ 916,000,000 | $ 451,000,000 |
Borrowings under credit facilities | 583,500,000 | 1,012,200,000 | $ 382,000,000 |
Amended Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 600,000,000 | ||
Maturity date | Aug. 24, 2026 | ||
Credit facility, expiration term | 5 years | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding balance | $ 234,000,000 | 250,000,000 | |
Committed Bank Facility [Member] | Amended Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Available increase in amount borrowed | 300,000,000 | ||
Letter of Credit [Member] | Amended Revolving Credit Facility [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] | |||
Outstanding balance | $ 201,500,000 | $ 1,200,000 | |
Amended Uncommitted Credit Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Number of credit facilities | agreement | 2 | ||
Credit facility, maximum borrowing capacity | $ 208,000,000 | ||
Credit facility, expiration term | 1 year | ||
Weighted average rate under Credit Facility | 1.11% | 1.42% | |
Borrowings under credit facilities | $ 583,500,000 | ||
Repayment of loan facility | 399,200,000 | ||
Outstanding balance | 201,500,000 | ||
Current Portion Of Debt Including Obligations Under Finance Leases [Member] | Amended Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding balance | $ 100,000,000 | ||
Current Portion Of Debt Including Obligations Under Finance Leases [Member] | Uncommitted Bank Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding balance | $ 1,200,000 | ||
Current Portion Of Debt Including Obligations Under Finance Leases [Member] | Amended Uncommitted Credit Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding balance | $ 201,500,000 |
Debt (Private Placement Debt) (
Debt (Private Placement Debt) (Narrative) (Details) - Private Placement Debt [Member] - USD ($) | 12 Months Ended | |
Aug. 28, 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) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($) | Aug. 28, 2021USD ($) | Aug. 29, 2020USD ($) | Aug. 31, 2019USD ($) | Jan. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | |||||
Repayment of debt | $ 20,000 | $ 20,000 | |||
Shelf Facility Agreements [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 250,000 | ||||
Private Placement Debt and Shelf Facility Agreements [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum consolidated leverage ratio of total indebtedness to EBITDA | 3 | ||||
Maximum consolidated leverage ratio of total indebtedness to EBITDA after material acquisition | 3.50 | ||||
Minimum consolidated interest coverage ratio of EBITDA to total interest expense | 3 | ||||
Series Notes Due January 12, 2023 [Member] | Shelf Facility Agreements [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding balance | $ 50,000 | ||||
Interest rate | 3.04% | ||||
Maturity date | Jan. 12, 2023 | ||||
Series Notes Due March 5, 2024 [Member] | Shelf Facility Agreements [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding balance | $ 50,000 | ||||
Interest rate | 2.40% | ||||
Maturity date | Mar. 5, 2024 | ||||
Series 2018B notes, due June 11, 2021 [Member] | Met Life Note Purchase Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Repayment of debt | $ 20,000 | ||||
Interest rate | 3.42% | ||||
Series 2018B notes, due June 11, 2021 [Member] | Private Placement Debt [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate | 3.42% | ||||
Maturity date | Jun. 11, 2021 |
Debt (Financing Arrangements) (
Debt (Financing Arrangements) (Narrative) (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Capital Leased Assets [Line Items] | ||
Property, plant and equipment, gross | $ 848,325 | $ 829,298 |
Financing Arrangements [Member] | IT Equipment And Software [Member] | ||
Capital Leased Assets [Line Items] | ||
Property, plant and equipment, gross | $ 1,286 | $ 1,164 |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Debt Instrument [Line Items] | ||
Long-Term Note Payable | $ 4,750,000 | |
Financing arrangements | 191,000 | 194,000 |
Less: unamortized debt issuance costs | (1,853,000) | (843,000) |
Total debt, excluding obligations under finance leases | 783,588,000 | 615,551,000 |
Less: current portion | (201,160,000) | (120,986,000) |
Total long-term debt, excluding obligations under finance leases | 582,428,000 | 494,565,000 |
Financing obligations, current | 87,000 | 194,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 234,000,000 | 250,000,000 |
Short-term debt | 100,000,000 | |
Uncommitted Bank Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 201,500,000 | 1,200,000 |
Short-term debt | 201,500,000 | 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] | ||
Debt Instrument [Line Items] | ||
Short-term debt | $ 20,000,000 | |
Series 2018B notes, due June 11, 2021 [Member] | Private Placement Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 20,000,000 | |
Interest rate | 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 |
Debt (Schedule Of Maturities Of
Debt (Schedule Of Maturities Of Debt) (Details) $ in Thousands | Aug. 28, 2021USD ($) |
Debt [Abstract] | |
2022 | |
2023 | 125,000 |
2024 | 50,000 |
2025 | 20,000 |
2026 | 334,000 |
Thereafter | 54,750 |
Total | $ 583,750 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 12 Months Ended |
Aug. 28, 2021USD ($) | |
2022 | $ 15,420 |
2023 | 11,211 |
2024 | 7,983 |
2025 | 6,254 |
2026 | 5,717 |
Thereafter | 8,366 |
Operating lease impairment loss net of gains related to settlement of lease liabilities | $ 14,975 |
New Leased co-headquarters in Melville, New York [Member] | |
Term of lease | 10 years |
2022 | $ 709 |
2023 | 793 |
2024 | 793 |
2025 | 793 |
2026 | 793 |
Thereafter | $ 4,317 |
Leases (Components Of Lease Cos
Leases (Components Of Lease Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 22,822 | $ 25,445 |
Variable lease benefit | (2,001) | (865) |
Short-term lease cost | 1,074 | 874 |
Amortization of leased assets | 1,290 | 1,227 |
Interest on leased liabilities | 83 | 110 |
Total Lease Cost | $ 23,268 | $ 26,791 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Leases [Abstract] | ||
Operating lease assets | $ 49,011 | $ 56,173 |
Finance lease assets | 2,377 | 3,625 |
Total leased assets | 51,388 | 59,798 |
Current operating lease liabilities | 13,927 | 21,815 |
Current finance lease liabilities | 1,273 | 1,262 |
Noncurrent operating lease liabilities | 36,429 | 34,379 |
Noncurrent finance lease liabilities | 1,188 | 2,453 |
Total lease liabilities | $ 52,817 | $ 59,909 |
Weighted average remaining lease term (years), Operating leases | 5 years | 4 years |
Weighted average remaining lease term (years), Finance leases | 2 years | 2 years 10 months 24 days |
Weighted average discount rate, Operating leases | 3.60% | 3.60% |
Weighted average discount rate, Finance leases | 2.70% | 2.70% |
Finance lease right of use assets, Accumulated amortization | $ 2,729 | $ 1,439 |
Operating lease impairment loss net of gains related to settlement of lease liabilities | $ 14,975 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Leases [Abstract] | ||
Operating Cash Outflows from Operating Leases | $ 36,653 | $ 24,879 |
Operating Cash Outflows from Finance Leases | 83 | 110 |
Financing Cash Outflows from Finance Leases | 1,295 | 1,247 |
Leased assets obtained in exchange for new operating lease liabilities | 26,211 | 17,552 |
Leased assets obtained in exchange for new finance lease liabilities | $ 42 | $ 1,973 |
Leases (Schedule Of Future Leas
Leases (Schedule Of Future Lease Payments) (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Operating Leases | ||
2022 | $ 15,420 | |
2023 | 11,211 | |
2024 | 7,983 | |
2025 | 6,254 | |
2026 | 5,717 | |
Thereafter | 8,366 | |
Total Lease Payments | 54,951 | |
Less: Imputed Interest | 4,595 | |
Present Value of Lease Liabilities | 50,356 | |
Finance Leases | ||
2022 | 1,353 | |
2023 | 1,027 | |
2024 | 161 | |
2025 | 12 | |
2026 | 6 | |
Thereafter | ||
Total Lease Payments | 2,559 | |
Less: Imputed Interest | 98 | |
Present Value of Lease Liabilities | 2,461 | |
Total | ||
2022 | 16,773 | |
2023 | 12,238 | |
2024 | 8,144 | |
2025 | 6,266 | |
2026 | 5,723 | |
Thereafter | 8,366 | |
Total Lease Payments | 57,510 | |
Less: Imputed Interest | 4,693 | |
Total lease liabilities | 52,817 | $ 59,909 |
Current portion of operating lease liabilities | 13,927 | 21,815 |
Current finance lease liabilities | $ 1,273 | $ 1,262 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands | Oct. 14, 2021USD ($)$ / shares | Aug. 28, 2021USD ($)itemshares | Aug. 29, 2020USD ($)shares | Jun. 29, 2021shares |
Components Of Shareholders Equity [Line Items] | ||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Subsequent Event [Member] | ||||
Components Of Shareholders Equity [Line Items] | ||||
Dividends declared date | Oct. 14, 2021 | |||
Dividends payable per share | $ / shares | $ 0.75 | |||
Dividend payable date | Nov. 30, 2021 | |||
Dividends record date | Nov. 16, 2021 | |||
Dividend payable amount | $ | $ 41,606 | |||
Class A Common Stock [Member] | ||||
Components Of Shareholders Equity [Line Items] | ||||
Common stock, votes per share | one | |||
Class A Common Stock [Member] | Share Repurchase Program [Member] | ||||
Components Of Shareholders Equity [Line Items] | ||||
Number of shares authorized for repurchase | 5,000,000 | 5,000,000 | ||
Class B Common Stock [Member] | ||||
Components Of Shareholders Equity [Line Items] | ||||
Common stock, votes per share | ten | |||
Common stock voting rights for each share held | item | 10 | |||
Treasury Stock [Member] | ||||
Components Of Shareholders Equity [Line Items] | ||||
Treasury stock repurchased, and treasury stock repurchased and retired, shares | 789,000 | 48,000 | ||
Treasury stock repurchased, and treasury stock repurchased and retired, amount | $ | $ 71,261 | $ 3,444 | ||
Retirement of treasury stock, Shares | 736,000 | |||
Treasury stock reissued to fund plan, shares | 57,000 | 69,000 | ||
Treasury Stock [Member] | Class A Common Stock [Member] | ||||
Components Of Shareholders Equity [Line Items] | ||||
Shares repurchased by the company for associates' tax withholding liability associated with share-based compensation | 53,000 | 48,000 |
Associate Benefit Plan (Narrati
Associate Benefit Plan (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | Aug. 29, 2015 | Jan. 14, 2015 | |
Associate Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan shares authorized | 1,500 | 1,150 | |||
Shares reserved for issuance under plan | 347 | ||||
Maximum number of shares available for purchase per qualified associate | 5 | ||||
Associate purchase price as percent of closing price | 90.00% | ||||
Shares purchased by qualified associates | 57 | 69 | |||
Share price | $ 72.87 | $ 59.71 | |||
Savings Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Company contributions to savings plan | $ 7,952 | $ 5,491 | $ 8,439 | ||
2005 Omnibus Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan shares authorized | 5,217 | ||||
Shares reserved for issuance under plan | 1,432 | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized share-based compensation cost | $ 1,385 | ||||
Unrecognized share-based compensation weighted average period | 9 months 18 days | ||||
Vesting period | 4 years | ||||
Expiration period | 7 years | ||||
Total intrinsic value of options exercised | $ 5,826 | $ 2,604 | $ 1,882 | ||
Performance Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized share-based compensation cost | $ 2,479 | ||||
Unrecognized share-based compensation weighted average period | 1 year 8 months 12 days | ||||
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 | $ 28,433 | ||||
Unrecognized share-based compensation weighted average period | 2 years 7 months 6 days |
Associate Benefit Plan (Schedul
Associate Benefit Plan (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | $ 17,721 | $ 16,932 | $ 16,283 |
Deferred income tax benefit | (4,324) | (4,182) | (4,006) |
Stock-based compensation expense, net | 13,397 | 12,750 | 12,277 |
Stock Options [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 2,285 | 3,645 | 4,786 |
Restricted Share Awards [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 185 | 1,552 | |
Restricted Stock Unit [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 13,976 | 12,319 | 9,633 |
Performance Share Units [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 1,233 | 575 | |
Associate Stock Purchase Plan [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | $ 227 | $ 208 | $ 312 |
Associate Benefit Plan (Summary
Associate Benefit Plan (Summary Of Stock Option Activity) (Details) - Stock Options [Member] shares in Thousands | 12 Months Ended |
Aug. 28, 2021$ / 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 | (401) |
Canceled/Forfeited, Options | shares | (8) |
Outstanding, Ending Balance, Options | shares | 1,130 |
Exercisable, Ending Balance, Options | shares | 890 |
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 | 73.96 |
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 | $ 74.87 |
Associate Benefit Plan (Sched_2
Associate Benefit Plan (Schedule Of Option Grant Fair Value Assumptions) (Details) | 12 Months Ended |
Aug. 28, 2021$ / shares | |
Associate Benefit Plan [Abstract] | |
Expected life (in years) | 4 years |
Risk-free interest rate | 2.98% |
Expected volatility | 23.10% |
Expected dividend yield | 2.70% |
Weighted-Average Grant-Date Fair Value | $ 14.05 |
Associate Benefit Plan (Summa_2
Associate Benefit Plan (Summary Of Stock Options By Range Of Exercise Price) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Aug. 28, 2021USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding at August 28, 2021 | shares | 1,130 |
Weighted average remaining contractual life of options outstanding | 2 years 7 months 6 days |
Weighted average exercise price of options outstanding | $ 76.38 |
Aggregate Intrinsic Value of options outstanding | $ | $ 10,139 |
Number of options exercisable at August 28, 2021 | shares | 890 |
Weighted average remaining contractual life of options exercisable | 2 years 3 months 18 days |
Weighted average exercise price of options exercisable | $ 74.87 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 9,333 |
$58.90 - $71.33 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | $ 58.90 |
Range of exercise prices, upper limit | $ 71.33 |
Number of options outstanding at August 28, 2021 | shares | 389 |
Weighted average remaining contractual life of options outstanding | 1 year 8 months 12 days |
Weighted average exercise price of options outstanding | $ 66.20 |
Aggregate Intrinsic Value of options outstanding | $ | $ 7,449 |
Number of options exercisable at August 28, 2021 | shares | 389 |
Weighted average remaining contractual life of options exercisable | 1 year 8 months 12 days |
Weighted average exercise price of options exercisable | $ 66.20 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 7,449 |
71.34 - 79.60 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | $ 71.34 |
Range of exercise prices, upper limit | $ 79.60 |
Number of options outstanding at August 28, 2021 | shares | 271 |
Weighted average remaining contractual life of options outstanding | 3 years 2 months 12 days |
Weighted average exercise price of options outstanding | $ 79.60 |
Aggregate Intrinsic Value of options outstanding | $ | $ 1,561 |
Number of options exercisable at August 28, 2021 | shares | 190 |
Weighted average remaining contractual life of options exercisable | 3 years 2 months 12 days |
Weighted average exercise price of options exercisable | $ 79.60 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 1,093 |
79.61 - 81.76 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | $ 79.61 |
Range of exercise prices, upper limit | $ 81.76 |
Number of options outstanding at August 28, 2021 | shares | 73 |
Weighted average remaining contractual life of options outstanding | 1 year 2 months 12 days |
Weighted average exercise price of options outstanding | $ 81.76 |
Aggregate Intrinsic Value of options outstanding | $ | $ 262 |
Number of options exercisable at August 28, 2021 | shares | 73 |
Weighted average remaining contractual life of options exercisable | 1 year 2 months 12 days |
Weighted average exercise price of options exercisable | $ 81.76 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 262 |
81.77 - 83.03 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | $ 81.77 |
Range of exercise prices, upper limit | $ 83.03 |
Number of options outstanding at August 28, 2021 | shares | 397 |
Weighted average remaining contractual life of options outstanding | 3 years 4 months 24 days |
Weighted average exercise price of options outstanding | $ 83.16 |
Aggregate Intrinsic Value of options outstanding | $ | $ 867 |
Number of options exercisable at August 28, 2021 | shares | 238 |
Weighted average remaining contractual life of options exercisable | 2 years 9 months 18 days |
Weighted average exercise price of options exercisable | $ 83.13 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 529 |
Associate Benefit Plan (Summa_3
Associate Benefit Plan (Summary Of Non-Vested Restricted Stock Unit Award Activity) (Details) shares in Thousands | 12 Months Ended |
Aug. 28, 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 | (168) |
Canceled/Forfeited, Shares | (25) |
Non-vested share awards, Ending balance, Shares | 524 |
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 | 74.65 |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 76.79 |
Non-vested share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 76.69 |
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] | 2015 Omnibus Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share awards, Ending balance, Shares | 8 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) | 12 Months Ended |
Aug. 28, 2021store | |
Restructuring Costs [Abstract] | |
Number of locations closed | 73 |
Restructuring Costs (Schedule O
Restructuring Costs (Schedule Of Restructuring Charges) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Restructuring Costs [Abstract] | ||
Operating lease asset impairment loss | $ 17,923 | |
Settlement of lease liabilities (gain) | (2,948) | |
Other exit-related costs | 3,282 | |
Consulting-related costs | 8,615 | 6,583 |
Associate severance and separation costs | 4,267 | 10,142 |
Equity acceleration costs associated with severance | 253 | 304 |
Total restructuring and other related costs | $ 31,392 | $ 17,029 |
Restructuring Costs (Summary Of
Restructuring Costs (Summary Of Restructuring Related Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Balance | $ 10,990 | $ 6,044 |
Additions | 16,164 | 16,725 |
Payments and other adjustments | (23,018) | (11,779) |
Balance | 4,136 | 10,990 |
Consulting-Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance | 4,063 | |
Additions | 8,615 | 6,583 |
Payments and other adjustments | (9,350) | (2,520) |
Balance | 3,328 | 4,063 |
Separation and Severance Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance | 6,927 | 6,044 |
Additions | 4,267 | 10,142 |
Payments and other adjustments | (10,827) | (9,259) |
Balance | 367 | 6,927 |
Other Exit Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance | ||
Additions | 3,282 | |
Payments and other adjustments | (2,841) | |
Balance | $ 441 |
Asset Impairments (Details)
Asset Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Feb. 27, 2021 | Nov. 28, 2020 | Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | Sep. 30, 2020 | |
Asset Impairments [Abstract] | ||||||
Inventory write-down | $ 30,091 | $ 30,091 | ||||
Prepaid purchase of PPE | $ 26,726 | |||||
Impairment charge | $ 26,726 | |||||
Proceeds from legal settlement agreement with a vendor | $ 20,840 |
Schedule II - Valuation And Q_2
Schedule II - Valuation And Qualifying Accounts (Details) - SEC Schedule, 12-09, Allowance, Credit Loss [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 18,249 | $ 17,088 | $ 12,992 |
Charged to Costs and Expenses | 8,181 | 11,008 | 10,763 |
Charged to Other Accounts | |||
Deductions | 8,014 | 9,847 | 6,667 |
Balance at End of Year | $ 18,416 | $ 18,249 | $ 17,088 |