Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Nov. 27, 2021 | Dec. 10, 2021 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 27, 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, Address Line Two | Suite 1000 | |
Entity Address, City or Town | Melville | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11747 | |
City Area Code | 516 | |
Local Phone Number | 812-2000 | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | |
Trading Symbol | MSM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001003078 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --09-03 | |
Amendment Flag | false | |
Class A Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 47,136,688 | |
Class B Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,654,010 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 27, 2021 | Aug. 28, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 62,875 | $ 40,536 |
Accounts receivable, net of allowance for credit losses of $18,331 and $18,416, respectively | 578,654 | 560,373 |
Inventories | 622,624 | 624,169 |
Prepaid expenses and other current assets | 84,255 | 89,167 |
Total current assets | 1,348,408 | 1,314,245 |
Property, plant and equipment, net | 298,975 | 298,416 |
Goodwill | 691,867 | 692,704 |
Identifiable intangibles, net | 98,419 | 101,854 |
Operating lease assets | 52,824 | 49,011 |
Other assets | 5,851 | 5,885 |
Total assets | 2,496,344 | 2,462,115 |
Current Liabilities: | ||
Current portion of debt including obligations under finance leases | 204,484 | 202,433 |
Current portion of operating lease liabilities | 13,703 | 13,927 |
Accounts payable | 177,823 | 186,330 |
Accrued expenses and other current liabilities | 190,265 | 159,238 |
Total current liabilities | 586,275 | 561,928 |
Long-term debt including obligations under finance leases | 558,318 | 583,616 |
Noncurrent, Operating lease liabilities | 40,447 | 36,429 |
Deferred income taxes and tax uncertainties | 108,827 | 108,827 |
Other noncurrent liabilities | 9,443 | 9,443 |
Total liabilities | 1,303,310 | 1,300,243 |
Commitments and Contingencies | ||
Shareholders’ Equity: | ||
Preferred Stock; $0.001 par value; 5,000,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 756,314 | 740,867 |
Retained earnings | 556,586 | 532,315 |
Accumulated other comprehensive loss | (22,065) | (17,984) |
Class A treasury stock, at cost, 1,262,624 and 1,223,644 shares, respectively | (108,138) | (104,384) |
Total MSC Industrial shareholders’ equity | 1,182,754 | 1,150,871 |
Noncontrolling interest | 10,280 | 11,001 |
Total shareholders' equity | 1,193,034 | 1,161,872 |
Total liabilities and shareholders' equity | 2,496,344 | 2,462,115 |
Class A Common Stock [Member] | ||
Shareholders’ Equity: | ||
Common Stock | 48 | 48 |
Class B Common Stock [Member] | ||
Shareholders’ Equity: | ||
Common Stock | $ 9 | $ 9 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 27, 2021 | Aug. 28, 2021 | |
Accounts receivable, allowance for credit losses | $ 18,331 | $ 18,416 |
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 | 1,262,624 | 1,223,644 |
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 | 48,346,135 | 48,042,901 |
Class B Common Stock [Member] | ||
Common stock, votes per share | ten | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 8,654,010 | 8,654,010 |
Common stock, shares outstanding | 8,654,010 | 8,654,010 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 27, 2021 | Nov. 28, 2020 | |
Condensed Consolidated Statements Of Income [Abstract] | ||
Net sales | $ 848,547 | $ 771,904 |
Cost of goods sold | 495,951 | 448,586 |
Gross profit | 352,596 | 323,318 |
Operating expenses | 256,581 | 238,705 |
Impairment loss, net | 26,726 | |
Restructuring costs | 5,283 | 3,979 |
Income from operations | 90,732 | 53,908 |
Other income (expense): | ||
Interest expense | (3,728) | (3,356) |
Interest income | 19 | 21 |
Other income (expense), net | (413) | 651 |
Total other expense | (4,122) | (2,684) |
Income before provision for income taxes | 86,610 | 51,224 |
Provision for income taxes | 20,353 | 12,447 |
Net income | 66,257 | 38,777 |
Less: Net income attributable to noncontrolling interest | 190 | 323 |
Net income attributable to MSC Industrial | $ 66,067 | $ 38,454 |
Net income per common share: | ||
Basic | $ 1.19 | $ 0.69 |
Diluted | $ 1.18 | $ 0.69 |
Weighted-average shares used in computing net income per common share: | ||
Basic | 55,530 | 55,659 |
Diluted | 55,856 | 55,850 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 27, 2021 | Nov. 28, 2020 | ||
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income, as reported | $ 66,257 | $ 38,777 | |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | (4,992) | 2,196 | |
Comprehensive income | [1] | 61,265 | 40,973 |
Comprehensive income attributable to noncontrolling interest: | |||
Net income | (190) | (323) | |
Foreign currency translation adjustments | 911 | (461) | |
Comprehensive income attributable to MSC Industrial | $ 61,986 | $ 40,189 | |
[1] | There were no material taxes associated with other comprehensive income during the thirteen-week periods ended November 27, 2021 and November 28, 2020. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | |
Nov. 27, 2021 | Nov. 28, 2020 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||
Other comprehensive income, taxes | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Class A Common Stock [Member]Common Stock [Member] | Class A Common Stock [Member]Retained Earnings [Member]Regular Dividends [Member] | Class A Common Stock [Member]Retained Earnings [Member]Special Dividends [Member] | Class A Common Stock [Member]Treasury Stock [Member] | Class A Common Stock [Member] | Class B Common Stock [Member]Common Stock [Member] | Class B Common Stock [Member]Retained Earnings [Member]Regular Dividends [Member] | Class B Common Stock [Member]Retained Earnings [Member]Special Dividends [Member] | Class B Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance, Value at Aug. 29, 2020 | $ 47 | $ 10 | $ 690,739 | $ 749,515 | $ (21,418) | $ (103,948) | $ 5,628 | |||||||||
Foreign Currency Translation Adjustment | 1,735 | 461 | $ 2,196 | |||||||||||||
Net Income (Loss) | 38,454 | 323 | 38,454 | |||||||||||||
Associate Incentive Plans | 11,602 | |||||||||||||||
Associate Incentive Plans | 910 | |||||||||||||||
Repurchases of Class A common stock, Value | $ (3,159) | |||||||||||||||
Exchange of Class B common stock for Class A common stock, value | 1 | (1) | ||||||||||||||
Cash dividends declared on Common Stock | $ (34,761) | $ (163,511) | $ (7,054) | $ (31,840) | ||||||||||||
Dividend equivalents declared, net of cancellations | (2,846) | |||||||||||||||
Balance, Value at Nov. 28, 2020 | 48 | 9 | 702,341 | 547,957 | (19,683) | (106,197) | $ 1,124,475 | 6,412 | 1,130,887 | |||||||
Dividends declared per Common Share | $ 4.25 | $ 4.25 | ||||||||||||||
Balance, Value at Aug. 28, 2021 | 48 | 9 | 740,867 | 532,315 | (17,984) | (104,384) | 11,001 | 1,161,872 | ||||||||
Foreign Currency Translation Adjustment | (4,081) | (911) | (4,992) | |||||||||||||
Net Income (Loss) | 66,067 | 190 | 66,067 | |||||||||||||
Associate Incentive Plans | 15,447 | |||||||||||||||
Associate Incentive Plans | 805 | |||||||||||||||
Repurchases of Class A common stock, Value | $ (4,559) | |||||||||||||||
Exchange of Class B common stock for Class A common stock, value | ||||||||||||||||
Cash dividends declared on Common Stock | $ (35,249) | $ (6,491) | ||||||||||||||
Dividend equivalents declared, net of cancellations | (56) | |||||||||||||||
Balance, Value at Nov. 27, 2021 | $ 48 | $ 9 | $ 756,314 | $ 556,586 | $ (22,065) | $ (108,138) | $ 1,182,754 | $ 10,280 | $ 1,193,034 | |||||||
Dividends declared per Common Share | $ 0.75 | $ 0.75 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 27, 2021 | Nov. 28, 2020 | |
Cash Flows from Operating Activities: | ||
Net income | $ 66,257 | $ 38,777 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,407 | 17,105 |
Non-cash operating lease cost | 4,223 | 4,342 |
Stock-based compensation | 5,689 | 4,238 |
Loss on disposal of property, plant and equipment | 104 | 296 |
Provision for credit losses | 1,837 | 2,503 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (21,805) | (3,655) |
Inventories | (755) | 22,950 |
Prepaid expenses and other current assets | 4,172 | (2,168) |
Operating lease liabilities | (4,246) | (4,103) |
Other assets | (27) | 324 |
Accounts payable and accrued liabilities | (15,052) | 22,621 |
Total adjustments | (8,453) | 64,453 |
Net cash provided by operating activities | 57,804 | 103,230 |
Cash Flows from Investing Activities: | ||
Expenditures for property, plant and equipment | (15,262) | (7,893) |
Net cash used in investing activities | (15,262) | (7,893) |
Cash Flows from Financing Activities: | ||
Repurchases of common stock | (4,559) | (3,159) |
Payments of regular cash dividends | (41,815) | |
Proceeds from sale of Class A Common Stock in connection with associate stock purchase plan | 1,029 | 963 |
Proceeds from exercise of Class A Common Stock options | 7,097 | 5,600 |
Borrowings under credit facilities | 26,000 | |
Payments under credit facilities | (50,000) | (130,000) |
Payments on finance lease and financing obligations | (418) | (516) |
Other, net | 1,057 | 1,269 |
Net cash used in financing activities | (19,794) | (167,658) |
Effect of foreign exchange rate changes on cash and cash equivalents | (409) | 214 |
Net increase (decrease) in cash and cash equivalents | 22,339 | (72,107) |
Cash and cash equivalents—beginning of period | 40,536 | 125,211 |
Cash and cash equivalents—end of period | 62,875 | 53,104 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes | 1,606 | 1,605 |
Cash paid for interest | 2,272 | 1,908 |
Supplemental Disclosure of Non-Cash Financing Activities | ||
Cash dividends declared, but not yet paid | $ 41,740 | $ 195,351 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Nov. 27, 2021 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | Note 1. Basis of Presentation The unaudited Condensed Consolidated Financial Statements have been prepared by the management of MSC Industrial Direct Co., Inc. (together with its wholly owned subsidiaries and entities in which it maintains a controlling financial interest, “MSC Industrial” or the “Company”) and in the opinion of management include all normal recurring material adjustments necessary to present fairly the Company’s financial position as of November 27, 2021 and August 28, 2021, results of operations for the thirteen weeks ended November 27, 2021 and November 28, 2020, and cash flows for the thirteen weeks ended November 27, 2021 and November 28, 2020. The financial information as of August 28, 2021 was derived from the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 28, 2021. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. The Company, however, believes that the disclosures contained in this Report comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 28, 2021. Fiscal Year The Company operates on a 52/53-week fiscal year ending on the Saturday closest to August 31st of each year. References to “fiscal year 2022” refer to the period from August 29, 2021 to September 3, 2022, which is a 53-week fiscal year. References to “fiscal year 2021” refer to the period from August 30, 2020 to August 28, 2021, which is a 52-week fiscal year. The fiscal quarters ended November 27, 2021 and November 28, 2020 refer to the thirteen weeks ended as of those dates. Principles of Consolidation The unaudited Condensed Consolidated Financial Statements include the accounts of MSC Industrial Direct Co., Inc., its wholly owned subsidiaries and entities in which it maintains a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. Impact of COVID-19 The COVID-19 pandemic has impacted and may further impact the Company’s operations and the operations of the Company’s suppliers, vendors, and freight carriers as a result of quarantines, travel restrictions, facility closures and safety directives. Although certain restrictions implemented earlier in the pandemic have been lifted and economic and operating conditions have improved since the early months of the pandemic, the pandemic continues to impact the Company’s operations and supply chain. Concurrently with the partial lifting of pandemic-related restrictions, the United States has experienced disruptions in the supply of certain products and services. These disruptions have affected the price and, at times, the availability of certain products and services necessary for the Company’s operations, including fuel, labor and certain products the Company sells or the inputs for such products. These disruptions are also impacting our customers and their ability to conduct their business or purchase our products and services. Such disruptions have impacted, and may continue to impact in the future, the Company’s business, financial condition and results of operations. In September 2021, the Federal government issued an executive order requiring federal contractors to require their employees be vaccinated against COVID-19 (the “Contractor Mandate”). In November 2021, the U.S. Department of Labor’s Occupational Safety and Health Administration promulgated a rule requiring employers with at least 100 employees to require that their employees be vaccinated against COVID-19 or be tested weekly (the “Large Employer Mandate”). The legality and enforceability of both the Contractor Mandate and the Large Employer Mandate have been challenged in federal court and are subject to ongoing litigation. At various times, both the Contractor Mandate and the Large Employer Mandate have been subject to injunctions preventing their implementation and enforceability. At this time, it is not possible to predict with certainty whether the Contractor Mandate and Large Employer Mandate will be implemented at all or, if implemented, how they would affect us or our workforce. Both the Contractor Mandate and the Large Employer Mandate, if implemented and applied to the Company, may result in employee attrition, which could materially adversely affect future revenues and costs, and have a material adverse effect on our business and results of operations. The extent to which the COVID-19 pandemic, including new variants of COVID-19, 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, including emerging virus variants, the success and speed of ongoing vaccination efforts and efficacy of vaccines over time, 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. Therefore, the Company cannot reasonably estimate future impacts of the COVID-19 pandemic at this time. Accounting Pronouncements Not Yet Adopted In March 2020, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities financial reporting burdens as the market transitions from LIBOR and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to have a material impact on the Company’s unaudited Condensed Consolidated Financial Statements. ReclassificationsCertain prior period Operating expenses were reclassified into Restructuring costs within the Company’s unaudited Condensed Consolidated Statements of Income to conform to the current period presentation. These reclassifications did not affect income from operations in any period presented. |
Revenue
Revenue | 3 Months Ended |
Nov. 27, 2021 | |
Revenue [Abstract] | |
Revenue | Note 2. Revenue Revenue Recognition Net sales include product revenue and shipping and handling charges, net of estimated sales returns and any related sales incentives. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies its performance obligations under the contract, and invoicing occurs at approximately the same point in time. The Company recognizes revenue once the customer obtains control of the products. The Company’s product sales have standard payment terms that do not exceed one year. The Company considers shipping and handling as activities to fulfill its performance obligations. Substantially all of the Company’s contracts have a single performance obligation, to deliver products, and are short-term in nature. The Company estimates product returns based on historical return rates. Total accrued sales returns were $6,293 and $5,759 as of November 27, 2021 and August 28, 2021, respectively, and are reported as Accrued expenses and other current liabilities in the unaudited Condensed Consolidated Balance Sheets. Sales taxes and value-added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Consideration Payable to Customers The Company offers customers sales incentives, which primarily consist of volume rebates, and upfront sign-on payments. These volume rebates and sign-on payments are not in exchange for a distinct good or service and result in a reduction of net sales from the goods transferred to the customer at the later of when the related revenue is recognized or when the Company promises to pay the consideration. The Company estimates its volume rebate accruals and records its sign-on payments based on various factors, including contract terms, historical experience, and performance levels. Total accrued sales incentives, primarily related to volume rebates, were $16,962 and $16,844 as of November 27, 2021 and August 28, 2021, respectively, and are included in Accrued expenses and other current liabilities in the unaudited Condensed Consolidated Balance Sheets. Sign-on payments, not yet recognized as a reduction of revenue, are recorded in Prepaid expenses and other current assets in the unaudited Condensed Consolidated Balance Sheets and were $2,316 and $2,547 as of November 27, 2021 and August 28, 2021, respectively. Contract Assets and Liabilities The Company records a contract asset when it has a right to payment from a customer that is conditioned on events other than the passage of time. The Company records a contract liability when customers prepay but the Company has not yet satisfied its performance obligations. The Company did not have material unsatisfied performance obligations or contract assets as of November 27, 2021 and August 28, 2021. Disaggregation of Revenue The Company operates in one operating and reportable segment as a distributor of metalworking and maintenance, repair and operations (“MRO”) products and services. The Company serves a large number of customers in diverse industries, which are subject to different economic and industry factors. The Company’s presentation of net sales by customer end-market most reasonably depicts how the nature, amount, timing and uncertainty of Company revenue and cash flows are affected by economic and industry factors. The Company does not disclose net sales information by product category as it is impracticable to do so as a result of its numerous product offerings and the way its business is managed. The following table presents the Company’s percentage of net sales by customer end-market for the thirteen-week periods ended November 27, 2021 and November 28, 2020: Thirteen Weeks Ended Thirteen Weeks Ended November 27, 2021 November 28, 2020Manufacturing Heavy 48% 45%Manufacturing Light 20% 20%Retail/Wholesale 8% 7%Government 7% 11%Commercial Services 4% 4%Other (1) 13% 13%Total net sales 100% 100% (1) The Other category primarily includes individual customer and small business net sales not assigned to a specific industry classification. The Company’s net sales originating from the following geographic areas were as follows for the thirteen-week periods ended November 27, 2021 and November 28, 2020: Thirteen Weeks Ended Thirteen Weeks Ended November 27, 2021 November 28, 2020United States $ 799,075 94% $ 726,893 94%Mexico 22,615 3% 20,365 3%United Kingdom 14,595 2% 12,991 2%Canada 12,262 1% 11,655 1%Total net sales $ 848,547 100% $ 771,904 100% |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Nov. 27, 2021 | |
Net Income Per Share [Abstract] | |
Net Income Per Share | Note 3: Net Income per Share Net income per share is computed by dividing net income by the weighted-average number of shares of the Company’s Class A Common Stock, par value $0.001 per share (“Class A Common Stock”), and the Company’s Class B Common Stock, par value $0.001 per share (“Class B Common Stock” and, together with Class A Common Stock, “Common Stock”), outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of Common Stock outstanding, including potentially dilutive shares of Common Stock equivalents outstanding during the period. The dilutive effect of potential shares of Common Stock are determined using the treasury stock method. The following table sets forth the computation of basic and diluted net income per common share under the treasury stock method for the thirteen-week periods ended November 27, 2021 and November 28, 2020. Thirteen Weeks Ended November 27, November 28, 2021 2020 Numerator: Net income attributable to MSC Industrial as reported $ 66,067 $ 38,454 Denominator: Weighted-average shares outstanding for basic net income per share 55,530 55,659 Effect of dilutive securities 326 191 Weighted-average shares outstanding for diluted net income per share 55,856 55,850 Net income per share: Basic $ 1.19 $ 0.69 Diluted $ 1.18 $ 0.69 Potentially dilutive securities 434 1,332 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 Class A Common Stock, and, therefore, their inclusion would be anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Nov. 27, 2021 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 4. Stock-Based Compensation The Company accounts for all stock-based payments in accordance with Accounting Standards Codification Topic 718, “Compensation—Stock Compensation,” as amended. Stock-based compensation expense included in Operating expenses for the thirteen-week periods ended November 27, 2021 and November 28, 2020 was as follows: Thirteen Weeks Ended November 27, November 28, 2021 2020Stock options $ 588 $ 677Restricted stock units 4,703 3,299Performance share units 308 213Associate Stock Purchase Plan 90 49Total 5,689 4,238Deferred income tax benefit (1,337) (1,030)Stock-based compensation expense, net $ 4,352 $ 3,208 Stock Options The Company discontinued its grants of stock options in fiscal year 2020. The fair value of each option grant in previous fiscal years was estimated on the date of grant using the Black-Scholes option pricing model. A summary of the Company’s stock option activity for the thirteen-week period ended November 27, 2021 is as follows: Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic ValueOutstanding on August 28, 2021 1,130 $ 76.38 Granted — — Exercised (113) 62.77 Canceled/Forfeited — — Outstanding on November 27, 2021 1,017 $ 77.89 2.2 $ 4,303Exercisable on November 27, 2021 945 $ 77.48 2.1 $ 4,303 The unrecognized stock-based compensation cost related to stock option expense at November 27, 2021 was $799 and will be recognized over a weighted-average period of 0.9 year. The total intrinsic value of options exercised, which represents the difference between the exercise price and the market value of Class A Common Stock measured at each individual exercise date, during the thirteen-week periods ended November 27, 2021 and November 28, 2020 was $2,543 and $837, respectively. Performance Share Units In fiscal year 2020, the Company began granting performance share units (“PSUs”) as part of its long-term stock-based compensation program. PSUs cliff vest after a three year performance period based on the achievement of specific performance goals as set forth in the applicable award agreement. Based on the extent to which the performance goals are achieved, vested shares may range from 0% to 200% of the target award amount. The following table summarizes all transactions related to PSUs under the MSC Industrial Direct Co., Inc. 2015 Omnibus Incentive Plan (the “2015 Omnibus Incentive Plan”) (based on target award amounts) for the thirteen-week period ended November 27, 2021: Shares Weighted-Average Grant Date Fair ValueNon-vested PSUs at August 28, 2021 58 $ 75.52Granted 46 84.96Vested — —Canceled/Forfeited (9) 75.46Non-vested PSUs at November 27, 2021 (1) 95 $ 80.06 (1) Excludes approximately 7 shares of accrued incremental dividend equivalent rights on outstanding PSUs granted under the 2015 Omnibus Incentive Plan. The fair value of each PSU is the closing stock price on the New York Stock Exchange (the “NYSE”) of Class A Common Stock on the date of grant. Upon vesting, subject to the achievement of specific performance goals, a portion of the PSU award may be withheld to satisfy the statutory income tax withholding obligation, and the remaining PSUs will be settled in shares of Class A Common Stock. These awards accrue dividend equivalents on the underlying PSUs (in the form of additional stock units) based on dividends declared on Class A Common Stock and these dividend equivalents are paid to the award recipient in the form of unrestricted shares of Class A Common Stock on the vesting dates of the underlying PSUs, subject to the same performance vesting requirements. The unrecognized stock-based compensation cost related to the PSUs at November 27, 2021 was $5,437 and is expected to be recognized over a weighted-average period of 2.2 years. Restricted Stock Units A summary of the Company’s non-vested restricted stock unit (“RSU”) award activity under the 2015 Omnibus Incentive Plan for the thirteen-week period ended November 27, 2021 is as follows: Shares Weighted-Average Grant Date Fair ValueNon-vested RSUs at August 28, 2021 524 $ 76.69Granted 157 84.96Vested (161) 76.59Canceled/Forfeited (29) 75.88Non-vested RSUs at November 27, 2021 (1) 491 $ 79.42 (1) Excludes approximately 49 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 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, and the remaining RSUs will be settled in shares of Class A Common Stock. These awards accrue dividend equivalents on the underlying RSUs (in the form of additional stock units) based on dividends declared on Class A Common Stock and these dividend equivalents are paid to the award recipient in the form of unrestricted shares of Class A Common Stock on the vesting dates of the underlying RSUs. The unrecognized stock-based compensation cost related to the RSUs at November 27, 2021 was $34,922 and is expected to be recognized over a weighted-average period of 3.1 years. |
Fair Value
Fair Value | 3 Months Ended |
Nov. 27, 2021 | |
Fair Value [Abstract] | |
Fair Value | Note 5. Fair Value Fair value accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The below fair value hierarchy prioritizes the inputs used to measure fair value into three levels, with Level 1 being of the highest priority. The three levels of inputs used to measure fair value are as follows: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable and outstanding indebtedness. 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 November 27, 2021 and November 28, 2020. During the thirteen-week periods ended November 27, 2021 and November 28, 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. See Note 10, “Asset Impairment” for further information on the PPE impairment incurred during the first quarter of fiscal year 2021. 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, the 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 November 27, 2021, the related assets had a carrying value of approximately $15,300, which is comprised of approximately $11,600 of building and improvements and $3,700 of land, which is included in Property, plant and equipment, net in the unaudited Condensed Consolidated Balance Sheet as of such date. As a result of the above, the Company determined that all of the criteria to classify the building as held for sale had been met as of November 27, 2021. Fair value was determined based upon the anticipated sales price of these assets based on current market conditions and assumptions made by management, which may differ from actual results and may result in an impairment if market conditions deteriorate. No impairment charge was recorded as the fair value less costs to sell was in excess of the carrying amount of the net assets. |
Debt
Debt | 3 Months Ended |
Nov. 27, 2021 | |
Debt [Abstract] | |
Debt | Note 6. Debt Debt at November 27, 2021 and August 28, 2021 consisted of the following: November 27, August 28, 2021 2021 Amended Revolving Credit Facility $ 209,000 $ 234,000 Uncommitted Credit Facilities 202,500 201,500 Long-Term Note Payable 4,750 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 2.40% Series 2019A Notes, due March 5, 2024(1) 50,000 50,000 Financing arrangements 1,163 191 Less: unamortized debt issuance costs (1,742) (1,853) Total debt, excluding obligations under finance leases $ 760,671 $ 783,588 Less: current portion (203,245)(2) (201,160)(3)Total long-term debt, excluding obligations under finance leases $ 557,426 $ 582,428 (1) Represents private placement debt issued under Shelf Facility Agreements (as defined below).(2) Consists of $202,500 from the Uncommitted Credit Facilities (as defined below), $1,163 from financing arrangements, and net of unamortized debt issuance costs of $418 expected to be amortized in the next 12 months.(3) Consists of $201,500 from the Uncommitted Credit Facilities, $87 from financing arrangements, and net of unamortized debt issuance costs of $427 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 at both November 27, 2021 and August 28, 2021. 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 $202,500 was outstanding at November 27, 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 $202,500 outstanding balance at November 27, 2021 and the $201,500 outstanding balance at August 28, 2021 under the Uncommitted Credit Facilities are included in the Current portion of debt including obligations under finance leases on the Company’s unaudited Condensed Consolidated Balance Sheets. During the thirteen-week period ended November 27, 2021, the Company borrowed an aggregate $26,000 and repaid an aggregate $50,000 under the Credit Facilities. As of November 27, 2021 and August 28, 2021, the weighted-average interest rates on borrowings under the Credit Facilities were 1.06% and 1.11%, 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 November 27, 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. 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 November 27, 2021, the Company was in compliance with the operating and financial covenants of the Credit Facilities, the Private Placement Debt and the Shelf Facility Agreements. Financing Arrangements From time to time, the Company enters into financing arrangements with vendors to purchase certain information technology equipment or software. The equipment or software acquired from these vendors is paid for over a specified period of time based upon the terms agreed to with the applicable vendor. During the thirteen-week period ended November 27, 2021, the Company entered into financing arrangements related to certain information technology equipment and software totaling $1,058. |
Leases
Leases | 3 Months Ended |
Nov. 27, 2021 | |
Leases [Abstract] | |
Leases | Note 7. Leases The Company’s lease portfolio includes certain real estate (branch offices, customer fulfillment centers and regional inventory centers), automobiles and other equipment. The determination of whether an arrangement is, or contains, a lease is performed at the inception of the arrangement. Operating leases are recorded on the balance sheet with operating lease assets representing the right to use the underlying asset for the lease term and operating lease liabilities representing the obligation to make lease payments arising from the lease. For real estate leases, the Company has elected the practical expedient which allows lease components and non-lease components, such as common area maintenance, to be grouped as a single lease component. The Company has also elected the practical expedient which allows leases with an initial term of 12 months or less to be excluded from the balance sheet. The Company does not guarantee any residual value in its lease agreements, there are no material restrictions or covenants imposed by lease arrangements, and there are no lease transactions with related parties. Real estate leases typically include one or more options to extend the lease. The Company regularly evaluates the renewal options, and when it is reasonably certain of exercise, the Company includes the renewal period in its lease term. The automobile leases contain variable lease payments based on inception and subsequent interest rate fluctuations. For the thirteen-week periods ended November 27, 2021 and November 28, 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 its incremental borrowing rate. The incremental borrowing rate for a lease is the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The rate for each lease was determined using primarily the Company’s credit spread, the lease term, and currency. The components of lease cost for the thirteen-week periods ended November 27, 2021 and November 28, 2020 were as follows: Thirteen Weeks Ended November 27, 2021November 28, 2020Operating lease cost $ 4,793 $ 6,683Variable lease benefit (198) (483)Short-term lease cost 918 158Finance lease cost: Amortization of leased assets 324 322 Interest on leased liabilities 15 24Total Lease Cost $ 5,852 $ 6,704 Supplemental balance sheet information relating to operating and finance leases is as follows: November 27, August 28, Classification 2021 2021Assets Operating lease assets Operating lease assets $ 52,824 $ 49,011 Finance lease assets (1) Property, plant and equipment, net 2,053 2,377Total lease assets $ 54,877 $ 51,388Liabilities Current Operating lease liabilities Current portion of operating lease liabilities $ 13,703 $ 13,927 Finance lease liabilities Current portion of debt including obligations under finance leases 1,239 1,273 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 40,447 36,429 Finance lease liabilities Long-term debt including obligations under finance leases 892 1,188Total lease liabilities $ 56,281 $ 52,817 (1) Finance lease assets are net of accumulated amortization of $3,053 and $2,729 as of November 27, 2021 and August 28, 2021, respectively. November 27, November 28, 2021 2020Weighted-average remaining lease term (years) Operating Leases 5.5 4.3 Finance Leases 1.8 2.7 Weighted-average discount rate Operating Leases 3.5% 3.5% Finance Leases 2.7% 2.7% The following table sets forth supplemental cash flow information related to operating and finance leases: Thirteen Weeks Ended November 27, 2021 November 28, 2020Operating Cash Outflows from Operating Leases $ 4,658 $ 6,453Operating Cash Outflows from Finance Leases 15 24Financing Cash Outflows from Finance Leases 331 320Leased Assets Obtained in Exchange for New Lease Liabilities: Operating Leases $ 8,459 $ 4,548 Finance Leases — — As of November 27, 2021, expected future lease payments were as follows: Fiscal Year (1) Operating Leases Finance Leases Total Remainder of fiscal year 2022 $ 11,964 $ 1,007 $ 12,9712023 12,475 1,027 13,5022024 9,169 161 9,3302025 7,270 12 7,2822026 6,742 6 6,748Thereafter 12,376 — 12,376 Total Lease Payments 59,996 2,213 62,209Less: Imputed Interest 5,846 82 5,928Present Value of Lease Liabilities (2) $ 54,150 $ 2,131 $ 56,281 (1) Future lease payments by fiscal year are based on contractual lease obligations.(2) Includes the current portion of $13,703 for operating leases and $1,239 for finance leases. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Nov. 27, 2021 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 8. Shareholders’ Equity Common Stock Repurchases and Treasury Stock 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 Class A Common Stock. There is no expiration date for the Share Repurchase Program. As of November 27, 2021, the maximum number of shares that may yet be repurchased under the Share Repurchase Program was 5,000 shares of Class A Common Stock. 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 the thirteen-week periods ended November 27, 2021 and November 28, 2020, the Company repurchased 53 shares and 46 shares, respectively, of Class A Common Stock for $4,559 and $3,159, respectively. All of these shares were repurchased by the Company to satisfy the Company’s associates’ tax withholding liability associated with its stock-based compensation program and are reflected at cost as treasury stock in the unaudited Condensed Consolidated Financial Statements for the thirteen-week period ended November 27, 2021. The Company reissued 14 shares and 15 shares of treasury stock during the thirteen-week periods ended November 27, 2021 and November 28, 2020, respectively, to fund the MSC Industrial Direct Co., Inc. Amended and Restated Associate Stock Purchase Plan. Dividends on Common Stock On October 14, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.75 per share to shareholders of record at the close of business on November 16, 2021. The dividend resulted in aggregate payments of $41,740 on November 30, 2021, after the end of the first quarter of fiscal year 2022. The Company paid cash dividends of $0.75 per common share totaling $41,815 for the thirteen weeks ended November 28, 2020. On December 15, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.75 per share, payable on January 25, 2022, to shareholders of record at the close of business on January 11, 2022. The dividend is expected to result in aggregate payments of approximately $41,843, based on the number of shares outstanding at December 10, 2021. |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Nov. 27, 2021 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | Note 9. Restructuring Costs Optimization of Company Operations 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. In addition, 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 2021 and 2022 in order to facilitate its workforce realignment. The following table summarizes restructuring costs: Thirteen Weeks Ended November 27, November 28, 2021 2020Consulting-related costs $ — $ 2,520Associate severance and separation costs 3,515 1,412Equity award acceleration costs associated with severance 1,729 47Other exit-related costs 39 —Total restructuring costs $ 5,283 $ 3,979 Liabilities associated with restructuring are included in Accrued expenses and other current liabilities in the unaudited Condensed Consolidated Balance Sheet as of November 27, 2021. The following table summarizes activity related to liabilities associated with restructuring: Consulting-related costs Severance and separation costs Other exit-related costs TotalBalance at August 28, 2021 $ 3,328 $ 367 $ 441 $ 4,136Additions — 3,515 39 3,554Payments and other adjustments (3,328) (1,787) (422) (5,537)Balance at November 27, 2021 $ — $ 2,095 $ 58 $ 2,153 |
Asset Impairment
Asset Impairment | 3 Months Ended |
Nov. 27, 2021 | |
Asset Impairment [Abstract] | |
Asset Impairment | Note 10. Asset Impairment 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 such products based on customer demand, the Company used a number of distributors and brokers to source PPE products. In September 2020, the Company prepaid approximately $26,726 for the purchase of nitrile gloves to be sourced from manufacturers in Asia and experienced significant delays in obtaining possession of this PPE. The Company evaluated the potential recoverability of these assets and, as a result, recorded an impairment charge of $26,726 in the first quarter of fiscal year 2021 to reflect the fact that the Company would not ultimately obtain this PPE or recover its related prepayment. This impairment charge was reflected in the unaudited Condensed Consolidated Statement of Income during the first quarter of fiscal year 2021. In the second half of fiscal year 2021, the Company entered into a legal settlement agreement with a vendor and, as a result, received $20,840 of loss recovery related to this prepayment, which was reflected in the unaudited Condensed Consolidated Statements of Income. The Company continues to pursue its legal avenues for recovery of the remaining loss. |
Product Warranties
Product Warranties | 3 Months Ended |
Nov. 27, 2021 | |
Product Warranties [Abstract] | |
Product Warranties | Note 11. Product Warranties The Company generally offers a maximum one year warranty, including parts and labor, for some of its machinery products. The specific terms and conditions of those warranties vary depending upon the product sold. The Company may be able to recoup some of these costs through product warranties it holds with its original equipment manufacturers, which typically range from 30 days 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 for the thirteen-week periods ended November 27, 2021 and November 28, 2020 was immaterial. |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 27, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | Note 12. Income Taxes During the thirteen-week period ended November 27, 2021, there were no material changes in unrecognized tax benefits. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law, which is intended to provide economic relief to those impacted by the COVID-19 pandemic. On March 11, 2021, the American Rescue Plan Act (the “ARPA”) was signed into law. 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’s effective tax rate was 23.5% for the thirteen-week period ended November 27, 2021, as compared to 24.3% for the thirteen-week period ended November 28, 2020. The decrease in the effective tax rate was primarily due to a higher tax benefit from stock-based compensation. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Nov. 27, 2021 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | Note 13. 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 liquidity. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 3 Months Ended |
Nov. 27, 2021 | |
Basis Of Presentation [Abstract] | |
Fiscal Year | Fiscal Year The Company operates on a 52/53-week fiscal year ending on the Saturday closest to August 31st of each year. References to “fiscal year 2022” refer to the period from August 29, 2021 to September 3, 2022, which is a 53-week fiscal year. References to “fiscal year 2021” refer to the period from August 30, 2020 to August 28, 2021, which is a 52-week fiscal year. The fiscal quarters ended November 27, 2021 and November 28, 2020 refer to the thirteen weeks ended as of those dates. |
Principles Of Consolidation | Principles of Consolidation The unaudited Condensed Consolidated Financial Statements include the accounts of MSC Industrial Direct Co., Inc., its wholly owned subsidiaries and entities in which it maintains a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. |
Impact Of COVID-19 | Impact of COVID-19 The COVID-19 pandemic has impacted and may further impact the Company’s operations and the operations of the Company’s suppliers, vendors, and freight carriers as a result of quarantines, travel restrictions, facility closures and safety directives. Although certain restrictions implemented earlier in the pandemic have been lifted and economic and operating conditions have improved since the early months of the pandemic, the pandemic continues to impact the Company’s operations and supply chain. Concurrently with the partial lifting of pandemic-related restrictions, the United States has experienced disruptions in the supply of certain products and services. These disruptions have affected the price and, at times, the availability of certain products and services necessary for the Company’s operations, including fuel, labor and certain products the Company sells or the inputs for such products. These disruptions are also impacting our customers and their ability to conduct their business or purchase our products and services. Such disruptions have impacted, and may continue to impact in the future, the Company’s business, financial condition and results of operations. In September 2021, the Federal government issued an executive order requiring federal contractors to require their employees be vaccinated against COVID-19 (the “Contractor Mandate”). In November 2021, the U.S. Department of Labor’s Occupational Safety and Health Administration promulgated a rule requiring employers with at least 100 employees to require that their employees be vaccinated against COVID-19 or be tested weekly (the “Large Employer Mandate”). The legality and enforceability of both the Contractor Mandate and the Large Employer Mandate have been challenged in federal court and are subject to ongoing litigation. At various times, both the Contractor Mandate and the Large Employer Mandate have been subject to injunctions preventing their implementation and enforceability. At this time, it is not possible to predict with certainty whether the Contractor Mandate and Large Employer Mandate will be implemented at all or, if implemented, how they would affect us or our workforce. Both the Contractor Mandate and the Large Employer Mandate, if implemented and applied to the Company, may result in employee attrition, which could materially adversely affect future revenues and costs, and have a material adverse effect on our business and results of operations. The extent to which the COVID-19 pandemic, including new variants of COVID-19, 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, including emerging virus variants, the success and speed of ongoing vaccination efforts and efficacy of vaccines over time, 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. Therefore, the Company cannot reasonably estimate future impacts of the COVID-19 pandemic at this time. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In March 2020, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities financial reporting burdens as the market transitions from LIBOR and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to have a material impact on the Company’s unaudited Condensed Consolidated Financial Statements. |
Reclassifications | ReclassificationsCertain prior period Operating expenses were reclassified into Restructuring costs within the Company’s unaudited Condensed Consolidated Statements of Income to conform to the current period presentation. These reclassifications did not affect income from operations in any period presented. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Nov. 27, 2021 | |
Revenue [Abstract] | |
Schedule Of Disaggregation Of Revenue | The following table presents the Company’s percentage of net sales by customer end-market for the thirteen-week periods ended November 27, 2021 and November 28, 2020: Thirteen Weeks Ended Thirteen Weeks Ended November 27, 2021 November 28, 2020Manufacturing Heavy 48% 45%Manufacturing Light 20% 20%Retail/Wholesale 8% 7%Government 7% 11%Commercial Services 4% 4%Other (1) 13% 13%Total net sales 100% 100% (1) The Other category primarily includes individual customer and small business net sales not assigned to a specific industry classification. The Company’s net sales originating from the following geographic areas were as follows for the thirteen-week periods ended November 27, 2021 and November 28, 2020: Thirteen Weeks Ended Thirteen Weeks Ended November 27, 2021 November 28, 2020United States $ 799,075 94% $ 726,893 94%Mexico 22,615 3% 20,365 3%United Kingdom 14,595 2% 12,991 2%Canada 12,262 1% 11,655 1%Total net sales $ 848,547 100% $ 771,904 100% |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Nov. 27, 2021 | |
Net Income Per Share [Abstract] | |
Computation Of Basic And Diluted Net Income Per Common Share Under Treasury Stock Method | Thirteen Weeks Ended November 27, November 28, 2021 2020 Numerator: Net income attributable to MSC Industrial as reported $ 66,067 $ 38,454 Denominator: Weighted-average shares outstanding for basic net income per share 55,530 55,659 Effect of dilutive securities 326 191 Weighted-average shares outstanding for diluted net income per share 55,856 55,850 Net income per share: Basic $ 1.19 $ 0.69 Diluted $ 1.18 $ 0.69 Potentially dilutive securities 434 1,332 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Nov. 27, 2021 | |
Stock-Based Compensation [Abstract] | |
Schedule Of Stock-Based Compensation Expense | Thirteen Weeks Ended November 27, November 28, 2021 2020Stock options $ 588 $ 677Restricted stock units 4,703 3,299Performance share units 308 213Associate Stock Purchase Plan 90 49Total 5,689 4,238Deferred income tax benefit (1,337) (1,030)Stock-based compensation expense, net $ 4,352 $ 3,208 |
Summary Of Stock Option Activity | Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic ValueOutstanding on August 28, 2021 1,130 $ 76.38 Granted — — Exercised (113) 62.77 Canceled/Forfeited — — Outstanding on November 27, 2021 1,017 $ 77.89 2.2 $ 4,303Exercisable on November 27, 2021 945 $ 77.48 2.1 $ 4,303 |
Summary Of Performance Share Unit Activity | Shares Weighted-Average Grant Date Fair ValueNon-vested PSUs at August 28, 2021 58 $ 75.52Granted 46 84.96Vested — —Canceled/Forfeited (9) 75.46Non-vested PSUs at November 27, 2021 (1) 95 $ 80.06 (1) Excludes approximately 7 shares of accrued incremental dividend equivalent rights on outstanding PSUs granted under the 2015 Omnibus Incentive Plan. |
Summary Of Non-Vested Restricted Stock Unit Award Activity | Shares Weighted-Average Grant Date Fair ValueNon-vested RSUs at August 28, 2021 524 $ 76.69Granted 157 84.96Vested (161) 76.59Canceled/Forfeited (29) 75.88Non-vested RSUs at November 27, 2021 (1) 491 $ 79.42 (1) Excludes approximately 49 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the 2015 Omnibus Incentive Plan. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Nov. 27, 2021 | |
Debt [Abstract] | |
Schedule Of Debt | November 27, August 28, 2021 2021 Amended Revolving Credit Facility $ 209,000 $ 234,000 Uncommitted Credit Facilities 202,500 201,500 Long-Term Note Payable 4,750 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 2.40% Series 2019A Notes, due March 5, 2024(1) 50,000 50,000 Financing arrangements 1,163 191 Less: unamortized debt issuance costs (1,742) (1,853) Total debt, excluding obligations under finance leases $ 760,671 $ 783,588 Less: current portion (203,245)(2) (201,160)(3)Total long-term debt, excluding obligations under finance leases $ 557,426 $ 582,428 (1) Represents private placement debt issued under Shelf Facility Agreements (as defined below).(2) Consists of $202,500 from the Uncommitted Credit Facilities (as defined below), $1,163 from financing arrangements, and net of unamortized debt issuance costs of $418 expected to be amortized in the next 12 months.(3) Consists of $201,500 from the Uncommitted Credit Facilities, $87 from financing arrangements, and net of unamortized debt issuance costs of $427 expected to be amortized in the next 12 months. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Nov. 27, 2021 | |
Leases [Abstract] | |
Components Of Lease Cost | Thirteen Weeks Ended November 27, 2021November 28, 2020Operating lease cost $ 4,793 $ 6,683Variable lease benefit (198) (483)Short-term lease cost 918 158Finance lease cost: Amortization of leased assets 324 322 Interest on leased liabilities 15 24Total Lease Cost $ 5,852 $ 6,704 |
Supplemental Balance Sheet Information | November 27, August 28, Classification 2021 2021Assets Operating lease assets Operating lease assets $ 52,824 $ 49,011 Finance lease assets (1) Property, plant and equipment, net 2,053 2,377Total lease assets $ 54,877 $ 51,388Liabilities Current Operating lease liabilities Current portion of operating lease liabilities $ 13,703 $ 13,927 Finance lease liabilities Current portion of debt including obligations under finance leases 1,239 1,273 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 40,447 36,429 Finance lease liabilities Long-term debt including obligations under finance leases 892 1,188Total lease liabilities $ 56,281 $ 52,817 (1) Finance lease assets are net of accumulated amortization of $3,053 and $2,729 as of November 27, 2021 and August 28, 2021, respectively. November 27, November 28, 2021 2020Weighted-average remaining lease term (years) Operating Leases 5.5 4.3 Finance Leases 1.8 2.7 Weighted-average discount rate Operating Leases 3.5% 3.5% Finance Leases 2.7% 2.7% |
Supplemental Cash Flow Information | Thirteen Weeks Ended November 27, 2021 November 28, 2020Operating Cash Outflows from Operating Leases $ 4,658 $ 6,453Operating Cash Outflows from Finance Leases 15 24Financing Cash Outflows from Finance Leases 331 320Leased Assets Obtained in Exchange for New Lease Liabilities: Operating Leases $ 8,459 $ 4,548 Finance Leases — — |
Schedule Of Future Lease Payments | Fiscal Year (1) Operating Leases Finance Leases Total Remainder of fiscal year 2022 $ 11,964 $ 1,007 $ 12,9712023 12,475 1,027 13,5022024 9,169 161 9,3302025 7,270 12 7,2822026 6,742 6 6,748Thereafter 12,376 — 12,376 Total Lease Payments 59,996 2,213 62,209Less: Imputed Interest 5,846 82 5,928Present Value of Lease Liabilities (2) $ 54,150 $ 2,131 $ 56,281 (1) Future lease payments by fiscal year are based on contractual lease obligations.(2) Includes the current portion of $13,703 for operating leases and $1,239 for finance leases. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Nov. 27, 2021 | |
Restructuring Costs [Abstract] | |
Schedule Of Restructuring Charges | Thirteen Weeks Ended November 27, November 28, 2021 2020Consulting-related costs $ — $ 2,520Associate severance and separation costs 3,515 1,412Equity award acceleration costs associated with severance 1,729 47Other exit-related costs 39 —Total restructuring costs $ 5,283 $ 3,979 |
Summary Of Restructuring Related Liabilities | Consulting-related costs Severance and separation costs Other exit-related costs TotalBalance at August 28, 2021 $ 3,328 $ 367 $ 441 $ 4,136Additions — 3,515 39 3,554Payments and other adjustments (3,328) (1,787) (422) (5,537)Balance at November 27, 2021 $ — $ 2,095 $ 58 $ 2,153 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||
Nov. 27, 2021USD ($)segment | Aug. 28, 2021USD ($) | May 29, 2021USD ($) | Aug. 29, 2020USD ($) | |
Accrued sales returns | $ 6,293,000 | $ 5,759,000 | ||
Accrued sales incentives | 16,962,000 | 16,844,000 | ||
Prepaid sales incentives | 2,316,000 | 2,547,000 | ||
Performance obligation | 0 | 0 | ||
Contract assets | $ 0 | $ 0 | ||
Contract liabilities | $ 0 | $ 0 | ||
Number of operating segments | segment | 1 | |||
Number of reportable segments | segment | 1 | |||
Maximum [Member] | ||||
Payment term | 1 year |
Revenue (Schedule Of Disaggrega
Revenue (Schedule Of Disaggregation Of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 27, 2021 | Nov. 28, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 848,547 | $ 771,904 |
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 | $ 848,547 | $ 771,904 |
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% | 20.00% |
Retail/Wholesale [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 8.00% | 7.00% |
Government [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 7.00% | 11.00% |
Commercial Services [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 4.00% | 4.00% |
Other Customers [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 13.00% | 13.00% |
United States [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 799,075 | $ 726,893 |
Concentration risk, percentage | 94.00% | 94.00% |
Mexico [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 22,615 | $ 20,365 |
Concentration risk, percentage | 3.00% | 3.00% |
United Kingdom [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 14,595 | $ 12,991 |
Concentration risk, percentage | 2.00% | 2.00% |
Canada [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 12,262 | $ 11,655 |
Concentration risk, percentage | 1.00% | 1.00% |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - $ / shares | Nov. 27, 2021 | Aug. 28, 2021 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
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 | 3 Months Ended | |
Nov. 27, 2021 | Nov. 28, 2020 | |
Net Income Per Share [Abstract] | ||
Net income attributable to MSC Industrial as reported | $ 66,067 | $ 38,454 |
Weighted-average shares outstanding for basic net income per share | 55,530 | 55,659 |
Effect of dilutive securities | 326 | 191 |
Weighted-average shares outstanding for diluted net income per share | 55,856 | 55,850 |
Basic | $ 1.19 | $ 0.69 |
Diluted | $ 1.18 | $ 0.69 |
Potentially dilutive securities | 434 | 1,332 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 27, 2021 | Nov. 28, 2020 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 799 | |
Unrecognized share-based compensation weighted average period | 10 months 24 days | |
Total intrinsic value of options exercised | $ 2,543 | $ 837 |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 5,437 | |
Unrecognized share-based compensation weighted average period | 2 years 2 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] | ||
Vested shares, percentage of target award amount | 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] | ||
Vested shares, percentage of target award amount | 200.00% | |
Restricted Stock Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 34,922 | |
Unrecognized share-based compensation weighted average period | 3 years 1 month 6 days |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 27, 2021 | Nov. 28, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 5,689 | $ 4,238 |
Deferred income tax benefit | (1,337) | (1,030) |
Stock-based compensation expense, net | 4,352 | 3,208 |
Stock Options [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 588 | 677 |
Restricted Stock Unit [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 4,703 | 3,299 |
Performance Share Units [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 308 | 213 |
Associate Stock Purchase Plan [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 90 | $ 49 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) - Stock Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Nov. 27, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Beginning Balance, Options | shares | 1,130 |
Granted, Options | shares | |
Exercised, Options | shares | (113) |
Outstanding, Ending Balance, Options | shares | 1,017 |
Exercisable, Ending Balance, Options | shares | 945 |
Outstanding, Beginning Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 76.38 |
Granted, Weighted-Average Exercise Price per Share | $ / shares | |
Exercised, Weighted-Average Exercise Price per Share | $ / shares | 62.77 |
Outstanding, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | 77.89 |
Exercisable, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 77.48 |
Outstanding, Ending Balance, Weighted-Average Remaining Contractual Term (in years) | 2 years 2 months 12 days |
Exercisable, Ending Balance, Weighted-Average Remaining Contractual Term (in years) | 2 years 1 month 6 days |
Outstanding, Ending Balance, Aggregate Intrinsic Value | $ | $ 4,303 |
Exercisable, Ending Balance, Aggregate Intrinsic Value | $ | $ 4,303 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Performance Share Unit Activity) (Details) shares in Thousands | 3 Months Ended |
Nov. 27, 2021$ / sharesshares | |
Performance Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share awards, Beginning balance, Shares | 58 |
Granted, Shares | 46 |
Vested, Shares | |
Canceled/Forfeited, Shares | (9) |
Non-vested share awards, Ending balance, Shares | 95 |
Non-vested share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 75.52 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 84.96 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 75.46 |
Non-vested share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 80.06 |
Incremental Dividend Rights, Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share awards, Ending balance, Shares | 7 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of Non-Vested Restricted Stock Unit Award Activity) (Details) shares in Thousands | 3 Months Ended |
Nov. 27, 2021$ / sharesshares | |
Restricted Stock Unit [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share awards, Beginning balance, Shares | 524 |
Granted, Shares | 157 |
Vested, Shares | (161) |
Canceled/Forfeited, Shares | (29) |
Non-vested share awards, Ending balance, Shares | 491 |
Non-vested share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 76.69 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 84.96 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 76.59 |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 75.88 |
Non-vested share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 79.42 |
Incremental Dividend Rights, Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share awards, Ending balance, Shares | 49 |
Fair Value (Details)
Fair Value (Details) | 3 Months Ended | |||
Nov. 27, 2021USD ($) | Nov. 28, 2020USD ($) | Aug. 28, 2021USD ($)ft² | 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 | 298,975,000 | $ 298,416,000 | ||
Building and Building Improvements [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Property, plant and equipment, net | 11,600,000 | |||
Land [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Property, plant and equipment, net | $ 3,700,000 | |||
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 |
Debt (Revolving Credit Faciliti
Debt (Revolving Credit Facilities) (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Nov. 27, 2021USD ($) | Aug. 28, 2021USD ($)agreement | |
Debt Instrument [Line Items] | ||
Borrowings under credit facilities | $ 26,000,000 | |
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 | |
Committed Bank Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 209,000,000 | $ 234,000,000 |
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 | 4,235,000 |
Uncommitted Bank Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 202,500,000 | $ 201,500,000 |
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 | 1.06% | 1.11% |
Outstanding balance | $ 202,500,000 | |
Borrowings under credit facilities | $ 26,000,000 | |
Repayment of loan facility | 50,000,000 | |
Current Portion Of Debt Including Obligations Under Finance Leases [Member] | Uncommitted Bank Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 201,500,000 | |
Current Portion Of Debt Including Obligations Under Finance Leases [Member] | Amended Uncommitted Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 202,500,000 |
Debt (Private Placement Debt) (
Debt (Private Placement Debt) (Narrative) (Details) - Private Placement Debt [Member] - USD ($) | 3 Months Ended | |
Nov. 27, 2021 | Aug. 28, 2021 | |
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) | 3 Months Ended |
Nov. 27, 2021USD ($) | |
Shelf Facility Agreements [Member] | |
Line of Credit Facility [Line Items] | |
Credit facility, maximum borrowing capacity | $ 250,000,000 |
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 | $ 50,000,000 |
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 | $ 50,000,000 |
Interest rate | 2.40% |
Maturity date | Mar. 5, 2024 |
Debt (Financing Arrangements) (
Debt (Financing Arrangements) (Narrative) (Details) $ in Thousands | Nov. 27, 2021USD ($) |
IT Equipment And Software [Member] | |
Capital Leased Assets [Line Items] | |
Property, plant and equipment, gross | $ 1,058 |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) | 3 Months Ended | |
Nov. 27, 2021 | Aug. 28, 2021 | |
Debt Instrument [Line Items] | ||
Long-Term Note Payable | $ 4,750,000 | $ 4,750,000 |
Financing arrangements | 1,163,000 | 191,000 |
Less: unamortized debt issuance costs | (1,742,000) | (1,853,000) |
Total debt, excluding obligations under finance leases | 760,671,000 | 783,588,000 |
Less: current portion | (203,245,000) | (201,160,000) |
Total long-term debt, excluding obligations under finance leases | 557,426,000 | 582,428,000 |
Financing obligations, current | 1,163,000 | 87,000 |
Unamortized debt issuance costs, current | 418,000 | 427,000 |
Committed Bank Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 209,000,000 | 234,000,000 |
Uncommitted Bank Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 202,500,000 | 201,500,000 |
Short-term debt | 202,500,000 | 201,500,000 |
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 2019A notes, due March 5, 2024 [Member] | Private Placement Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 50,000,000 | $ 50,000,000 |
Interest rate | 2.40% | |
Maturity date | Mar. 5, 2024 |
Leases (Components Of Lease Cos
Leases (Components Of Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 27, 2021 | Nov. 28, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 4,793 | $ 6,683 |
Variable lease benefit | (198) | (483) |
Short-term lease cost | 918 | 158 |
Amortization of leased assets | 324 | 322 |
Interest on leased liabilities | 15 | 24 |
Total Lease Cost | $ 5,852 | $ 6,704 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands | Nov. 27, 2021 | Aug. 28, 2021 |
Leases [Abstract] | ||
Operating lease assets | $ 52,824 | $ 49,011 |
Finance lease assets | 2,053 | 2,377 |
Total lease assets | 54,877 | 51,388 |
Current, Operating lease liabilities | 13,703 | 13,927 |
Current, Finance lease liabilities | 1,239 | 1,273 |
Noncurrent, Operating lease liabilities | 40,447 | 36,429 |
Noncurrent, Finance lease liabilities | 892 | 1,188 |
Total lease liabilities | $ 56,281 | $ 52,817 |
Weighted-average remaining lease term (years), Operating leases | 5 years 6 months | 4 years 3 months 18 days |
Weighted-average remaining lease term (years), Finance leases | 1 year 9 months 18 days | 2 years 8 months 12 days |
Weighted-average discount rate, Operating leases | 3.50% | 3.50% |
Weighted-average discount rate, Finance leases | 2.70% | 2.70% |
Finance lease assets, accumulated amortization | $ 3,053 | $ 2,729 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 27, 2021 | Nov. 28, 2020 | |
Leases [Abstract] | ||
Operating Cash Outflows from Operating Leases | $ 4,658 | $ 6,453 |
Operating Cash Outflows from Finance Leases | 15 | 24 |
Financing Cash Outflows from Finance Leases | 331 | 320 |
Leased Assets Obtained in Exchange for New Lease Liabilities: Operating Leases | $ 8,459 | $ 4,548 |
Leases (Schedule Of Future Leas
Leases (Schedule Of Future Lease Payments) (Details) - USD ($) $ in Thousands | Nov. 27, 2021 | Aug. 28, 2021 |
Operating Leases | ||
Remainder of fiscal year 2022 | $ 11,964 | |
2023 | 12,475 | |
2024 | 9,169 | |
2025 | 7,270 | |
2026 | 6,742 | |
Thereafter | 12,376 | |
Total Lease Payments | 59,996 | |
Less: Imputed Interest | 5,846 | |
Present Value of Lease Liabilities | 54,150 | |
Finance Leases | ||
Remainder of fiscal year 2022 | 1,007 | |
2023 | 1,027 | |
2024 | 161 | |
2025 | 12 | |
2026 | 6 | |
Total Lease Payments | 2,213 | |
Less: Imputed Interest | 82 | |
Present Value of Lease Liabilities | 2,131 | |
Total | ||
Remainder of fiscal year 2022 | 12,971 | |
2023 | 13,502 | |
2024 | 9,330 | |
2025 | 7,282 | |
2026 | 6,748 | |
Thereafter | 12,376 | |
Total Lease Payments | 62,209 | |
Less: Imputed Interest | 5,928 | |
Total lease liabilities | 56,281 | $ 52,817 |
Current portion of operating lease liabilities | 13,703 | 13,927 |
Current, Finance lease liabilities | $ 1,239 | $ 1,273 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 15, 2021 | Nov. 30, 2021 | Oct. 14, 2021 | Nov. 27, 2021 | Nov. 28, 2020 |
Components Of Shareholders Equity [Line Items] | |||||
Treasury stock reissued to fund plan, shares | 14,000 | 15,000 | |||
Dividends declared date | Oct. 14, 2021 | ||||
Dividends payable per share | $ 0.75 | $ 0.75 | |||
Dividend payable date | Nov. 30, 2021 | ||||
Dividends date of record | Nov. 16, 2021 | ||||
Dividend payable amount | $ 41,740 | $ 41,815 | |||
Subsequent Event [Member] | |||||
Components Of Shareholders Equity [Line Items] | |||||
Dividends declared date | Dec. 15, 2021 | ||||
Dividends payable per share | $ 0.75 | ||||
Dividend payable date | Jan. 25, 2022 | ||||
Dividends date of record | Jan. 11, 2022 | ||||
Dividend payable amount | $ 41,843 | ||||
Class A Common Stock [Member] | |||||
Components Of Shareholders Equity [Line Items] | |||||
Shares repurchased, shares | 53,000 | 46,000 | |||
Shares repurchased, amount | $ 4,559 | $ 3,159 | |||
Class A Common Stock [Member] | Share Repurchase Program [Member] | |||||
Components Of Shareholders Equity [Line Items] | |||||
Number of shares authorized for repurchase | 5,000 | ||||
Maximum number of shares that can be repurchased | 5,000 |
Restructuring Costs (Schedule O
Restructuring Costs (Schedule Of Restructuring Charges) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 27, 2021 | Nov. 28, 2020 | |
Restructuring Costs [Abstract] | ||
Consulting-related costs | $ 2,520 | |
Associate severance and separation costs | $ 3,515 | 1,412 |
Equity award acceleration costs associated with severance | 1,729 | 47 |
Other exit-related costs | 39 | |
Total restructuring costs | $ 5,283 | $ 3,979 |
Restructuring Costs (Summary Of
Restructuring Costs (Summary Of Restructuring Related Liabilities) (Details) $ in Thousands | 3 Months Ended |
Nov. 27, 2021USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Balance | $ 4,136 |
Additions | 3,554 |
Payments and other adjustments | (5,537) |
Balance | 2,153 |
Consulting-Related Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance | 3,328 |
Payments and other adjustments | (3,328) |
Severance and Separation Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance | 367 |
Additions | 3,515 |
Payments and other adjustments | (1,787) |
Balance | 2,095 |
Other Exit Related Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance | 441 |
Additions | 39 |
Payments and other adjustments | (422) |
Balance | $ 58 |
Asset Impairment (Details)
Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Nov. 28, 2020 | Aug. 28, 2021 | Sep. 30, 2020 | |
Asset Impairment [Abstract] | |||
Prepaid purchase of PPE | $ 26,726 | ||
Impairment charge | $ 26,726 | ||
Proceeds from legal settlement agreement with a vendor | $ 20,840 |
Product Warranties (Details)
Product Warranties (Details) | 3 Months Ended |
Nov. 27, 2021 | |
Minimum [Member] | |
Product warranties with original equipment manufacturers | 30 days |
Maximum [Member] | |
Warranty period | 1 year |
Product warranties with original equipment manufacturers | 90 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | ||
Nov. 27, 2021 | Nov. 28, 2020 | Dec. 31, 2020 | |
Changes in unrecognized tax benefits | $ 0 | ||
Effective tax rate | 23.50% | 24.30% | |
The CARES Act [Member] | |||
Deferred employer-paid portion of social security payroll taxes | $ 18,887,000 | ||
Will be Remitted by December 31, 2021 [Member] | The CARES Act [Member] | |||
Deferred employer-paid portion of social security payroll taxes | $ 9,444,000 | ||
Will be Remitted by December 31, 2022 [Member] | The CARES Act [Member] | |||
Deferred employer-paid portion of social security payroll taxes | $ 9,443,000 |