Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 03, 2022 | Dec. 15, 2022 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 03, 2022 | |
Current Fiscal Year End Date | --09-02 | |
Document Fiscal Year Focus | 2023 | |
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 $0.001 per share | |
Trading Symbol | MSM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001003078 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 47,318,110 | |
Class B Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,654,010 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 03, 2022 | Sep. 03, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 26,331 | $ 43,537 |
Accounts receivable, net of allowance for credit losses of $21,719 and $20,771, respectively | 685,826 | 687,608 |
Inventories | 726,415 | 715,625 |
Prepaid expenses and other current assets | 120,001 | 96,853 |
Total current assets | 1,558,573 | 1,543,623 |
Property, plant and equipment, net | 297,113 | 286,666 |
Goodwill | 709,746 | 710,130 |
Identifiable intangibles, net | 110,702 | 114,328 |
Operating lease assets | 62,803 | 64,780 |
Other assets | 10,464 | 9,887 |
Total assets | 2,749,401 | 2,729,414 |
Current Liabilities: | ||
Current portion of debt including obligations under finance leases | 326,240 | 325,680 |
Current portion of operating lease liabilities | 18,531 | 18,560 |
Accounts payable | 212,793 | 217,378 |
Accrued expenses and other current liabilities | 169,197 | 164,326 |
Total current liabilities | 726,761 | 725,944 |
Long-term debt including obligations under finance leases | 453,868 | 468,912 |
Noncurrent operating lease liabilities | 45,693 | 47,616 |
Deferred income taxes and tax uncertainties | 124,659 | 124,659 |
Total liabilities | 1,350,981 | 1,367,131 |
Commitments and Contingencies | ||
MSC Industrial Shareholders’ Equity: | ||
Preferred Stock; $0.001 par value; 5,000,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 814,493 | 798,408 |
Retained earnings | 703,565 | 681,292 |
Accumulated other comprehensive loss | (22,186) | (23,121) |
Class A treasury stock, at cost, 1,266,439 and 1,228,472 shares, respectively | (109,592) | (106,202) |
Total MSC Industrial shareholders’ equity | 1,386,338 | 1,350,434 |
Noncontrolling interest | 12,082 | 11,849 |
Total shareholders' equity | 1,398,420 | 1,362,283 |
Total liabilities and shareholders' equity | 2,749,401 | 2,729,414 |
Class A Common Stock [Member] | ||
MSC Industrial Shareholders’ Equity: | ||
Common Stock | 49 | 48 |
Class B Common Stock [Member] | ||
MSC Industrial Shareholders’ Equity: | ||
Common Stock | $ 9 | $ 9 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 03, 2022 | Sep. 03, 2022 | |
Accounts receivable, allowance for credit losses | $ 21,719 | $ 20,771 |
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 | 1,266,439 | 1,228,472 |
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 | 48,584,476 | 48,447,384 |
Class B Common Stock [Member] | ||
Common stock, votes per share | 10 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 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 | |
Dec. 03, 2022 | Nov. 27, 2021 | |
Condensed Consolidated Statements Of Income [Abstract] | ||
Net sales | $ 957,745 | $ 848,547 |
Cost of goods sold | 559,946 | 495,951 |
Gross profit | 397,799 | 352,596 |
Operating expenses | 279,695 | 256,581 |
Restructuring and other costs | 2,094 | 5,283 |
Income from operations | 116,010 | 90,732 |
Other income (expense): | ||
Interest expense | (6,919) | (3,728) |
Interest income | 100 | 19 |
Other expense, net | (1,340) | (413) |
Total other expense | (8,159) | (4,122) |
Income before provision for income taxes | 107,851 | 86,610 |
Provision for income taxes | 26,639 | 20,353 |
Net income | 81,212 | 66,257 |
Less: Net (loss) income attributable to noncontrolling interest | (102) | 190 |
Net income attributable to MSC Industrial | $ 81,314 | $ 66,067 |
Net income per common share: | ||
Basic | $ 1.45 | $ 1.19 |
Diluted | $ 1.45 | $ 1.18 |
Weighted-average shares used in computing net income per common share: | ||
Basic | 55,891 | 55,530 |
Diluted | 56,081 | 55,856 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 03, 2022 | Nov. 27, 2021 | ||
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income, as reported | $ 81,212 | $ 66,257 | |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | 1,270 | (4,992) | |
Comprehensive income | [1] | 82,482 | 61,265 |
Comprehensive income attributable to noncontrolling interest: | |||
Net loss (income) | 102 | (190) | |
Foreign currency translation adjustments | (335) | 911 | |
Comprehensive income attributable to MSC Industrial | $ 82,249 | $ 61,986 | |
[1] There were no material taxes associated with other comprehensive income during the thirteen-week periods ended December 3, 2022 and November 27, 2021. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | |
Dec. 03, 2022 | Nov. 27, 2021 | |
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] 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] | 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. 28, 2021 | $ 48 | $ 9 | $ 740,867 | $ 532,315 | $ (17,984) | $ (104,384) | $ 11,001 | |||||||
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 | |||||||||||||
Repurchase of Class A common stock, Value | $ (4,559) | $ (4,559) | ||||||||||||
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 | ||||||||||||
Balance, Value at Sep. 03, 2022 | 48 | 9 | 798,408 | 681,292 | (23,121) | (106,202) | 11,849 | 1,362,283 | ||||||
Foreign Currency Translation Adjustment | 935 | 335 | 1,270 | |||||||||||
Net Income (Loss) | 81,314 | (102) | 81,314 | |||||||||||
Associate Incentive Plans | 16,115 | |||||||||||||
Associate Incentive Plans | 837 | |||||||||||||
Repurchase and retirement of Class A common stock, Value | (30) | (14,282) | ||||||||||||
Repurchase of Class A common stock, Value | $ (4,227) | $ (18,539) | ||||||||||||
Cash dividends declared on Common Stock | $ (37,370) | $ (6,837) | ||||||||||||
Dividend equivalents declared, net of cancellations | (552) | |||||||||||||
Balance, Value at Dec. 03, 2022 | $ 49 | $ 9 | $ 814,493 | $ 703,565 | $ (22,186) | $ (109,592) | $ 1,386,338 | $ 12,082 | $ 1,398,420 | |||||
Dividends declared per Common Share | $ 0.79 | $ 0.79 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 03, 2022 | Nov. 27, 2021 | |
Cash Flows from Operating Activities: | ||
Net income | $ 81,212 | $ 66,257 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 18,566 | 17,407 |
Non-cash operating lease cost | 4,872 | 4,223 |
Stock-based compensation | 4,990 | 5,689 |
Loss on disposal of property, plant and equipment | 229 | 104 |
Provision for credit losses | 2,673 | 1,837 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 56 | (21,805) |
Inventories | (9,516) | (755) |
Prepaid expenses and other current assets | (22,764) | 4,172 |
Operating lease liabilities | (4,843) | (4,246) |
Other assets | (508) | (27) |
Accounts payable and accrued liabilities | 1,057 | (15,052) |
Total adjustments | (5,188) | (8,453) |
Net cash provided by operating activities | 76,024 | 57,804 |
Cash Flows from Investing Activities: | ||
Expenditures for property, plant and equipment | (25,504) | (15,262) |
Cash used in business acquisitions, net of cash acquired | (87) | |
Net cash used in investing activities | (25,591) | (15,262) |
Cash Flows from Financing Activities: | ||
Repurchases of common stock | (18,539) | (4,559) |
Payments of regular cash dividends | (44,207) | |
Proceeds from sale of Class A Common Stock in connection with associate stock purchase plan | 1,056 | 1,029 |
Proceeds from exercise of Class A Common Stock options | 8,336 | 7,097 |
Borrowings under credit facilities | 84,000 | 26,000 |
Borrowings under financing obligations | 1,061 | 1,057 |
Payments under credit facilities | (99,000) | (50,000) |
Payments on finance lease and financing obligations | (657) | (418) |
Net cash used in financing activities | (67,950) | (19,794) |
Effect of foreign exchange rate changes on cash and cash equivalents | 311 | (409) |
Net (decrease) increase in cash and cash equivalents | (17,206) | 22,339 |
Cash and cash equivalents—beginning of period | 43,537 | 40,536 |
Cash and cash equivalents—end of period | 26,331 | 62,875 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes | 2,767 | 1,606 |
Cash paid for interest | $ 5,441 | 2,272 |
Supplemental Disclosure of Non-Cash Financing Activities | ||
Cash dividends declared, but not yet paid | $ 41,740 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Dec. 03, 2022 | |
Business And Summary Of Significants Accounting Policies [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 adjustments necessary to present fairly the Company’s financial position as of December 3, 2022 and September 3, 2022 and results of operations and cash flows for the thirteen weeks ended December 3, 2022 and November 27, 2021 . The financial information as of September 3, 2022 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 September 3, 2022. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America 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 September 3, 2022. Fiscal Year The Company operates on a 52/53-week fiscal year ending on the Saturday closest to August 31 st of each year. References to “fiscal year 2023” refer to the period from September 4, 2022 to September 2, 2023, which is a 52-week fiscal year. References to “fiscal year 2022” refer to the period from August 29, 2021 to September 3, 2022, which was a 53-week fiscal year. The fiscal quarters ended December 3, 2022 and November 27, 2021 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 Economic Trends The United States economy has experienced and continues to experience disruptions in the supply of certain products and services and tight conditions in the labor market. These disruptions and conditions have contributed to an inflationary environment which, while falling, remains elevated and has 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. Such disruptions and conditions have impacted, and may continue to impact in the future, the Company’s business, financial condition and results of operations. As a result of recent high inflation and elevated freight, labor and fuel costs, as well as periodic supply chain disruptions, the Company has implemented price realization strategies in response to increased costs the Company faces. Furthermore, in light of disruptions to availability and increased or uncertain shipping times, the Company is maintaining higher purchasing levels than it did prior to its fiscal year 2020 in order to ensure sufficient inventory supply to meet customer demand. Recently Adopted Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, which provides for additional annual disclosures and added transparency for entities which receive government assistance. This includes disclosure of the type of government assistance received, the entity’s method of accounting, and the impact on the entity’s financial statements. This guidance is for annual periods beginning after December 15, 2021. The guidance was adopted by the Company for fiscal year 2023 and will be applied prospectively. The Company anticipates annual disclosures within the Company’s Annual Report on Form 10-K for fiscal year 2023 related to the Employee Retention Credit (the “ERC”) provision provided under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). 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 . |
Revenue
Revenue | 3 Months Ended |
Dec. 03, 2022 | |
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. Substantially all of the Company’s customer contracts have a single performance obligation, to deliver products, and are short-term in nature. All revenue is recognized when the Company satisfies its performance obligations under the contract, and invoicing occurs at approximately the same point in time. The Company recognizes revenue once the customer obtains control of the products. The Company’s product sales have standard payment terms that do not exceed one year . The Company considers shipping and handling as activities to fulfill its performance obligations. The Company estimates product returns based on historical return rates. Total accrued sales returns were $ 7,469 and $ 7,198 as of December 3, 2022 and September 3, 2022, 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 $ 27,277 and $ 25,274 as of December 3, 2022 and September 3, 2022, 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 $ 1,903 and $ 2,210 as of December 3, 2022 and September 3, 2022, respectively. Contract Assets and Liabilities The Company records a contract asset when it has a right to payment from a customer that is conditioned on events other than the passage of time. The Company records a contract liability when customers prepay but the Company has not yet satisfied its performance obligations. The Company did no t have material contract assets or liabilities as of December 3, 2022 and September 3, 2022. Disaggregation of Revenue The Company operates in one operating and reportable segment as a distributor of metalworking and maintenance, repair and operations 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 weeks ended December 3, 2022 and November 27, 2021: Thirteen Weeks Ended (1) December 3, 2022 November 27, 2021 Manufacturing Heavy 48 % 49 % Manufacturing Light 21 % 21 % Government 8 % 7 % Retail/Wholesale 7 % 8 % Commercial Services 4 % 4 % Other (2) 12 % 11 % Total net sales 100 % 100 % (1) Includes the effect of a reclassification of end-markets which occurred during the fourth quarter of fiscal year 2022. (2) The Other category 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 weeks ended December 3, 2022 and November 27, 2021: Thirteen Weeks Ended December 3, 2022 November 27, 2021 United States $ 910,068 95 % $ 799,075 94 % Mexico 21,110 2 % 22,615 3 % Canada 13,582 2 % 12,262 1 % North America 944,760 99 % 833,952 98 % Other foreign countries 12,985 1 % 14,595 2 % Total net sales $ 957,745 100 % $ 848,547 100 % |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Dec. 03, 2022 | |
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 during the period, including potentially dilutive shares of Common Stock equivalents outstanding during the period. The dilutive effect of potential shares of Common Stock is 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 weeks ended December 3, 2022 and November 27 , 2021. Thirteen Weeks Ended December 3, November 27, 2022 2021 Numerator: Net income attributable to MSC Industrial as reported $ 81,314 $ 66,067 Denominator: Weighted-average shares outstanding for basic net income per share 55,891 55,530 Effect of dilutive securities 190 326 Weighted-average shares outstanding for diluted net income per share 56,081 55,856 Net income per share: Basic $ 1.45 $ 1.19 Diluted $ 1.45 $ 1.18 Potentially dilutive securities 499 434 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 |
Dec. 03, 2022 | |
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 weeks ended December 3, 2022 and November 27, 2021 was as follows: Thirteen Weeks Ended December 3, November 27, 2022 2021 Stock options $ 101 $ 588 Restricted stock units 3,711 4,703 Performance share units 1,095 308 Associate Stock Purchase Plan 83 90 Total 4,990 5,689 Deferred income tax benefit ( 1,233 ) ( 1,337 ) Stock-based compensation expense, net $ 3,757 $ 4,352 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 award activity for the thirteen weeks ended December 3, 2022 is as follows: Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding on September 3, 2022 614 $ 78.96 Granted — — Exercised ( 114 ) 73.36 Canceled/Forfeited/Expired ( 23 ) 80.27 Outstanding on December 3, 2022 477 $ 80.23 2.2 $ 2,583 Exercisable on December 3, 2022 477 $ 80.23 2.2 $ 2,583 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 weeks ended December 3, 2022 and November 27, 2021 was $ 970 and $ 2,543 , respectively. The unrecognized stock - based compensation cost related to stock option expense was fully amortized at December 3, 2022. 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 weeks ended December 3, 2022: Shares Weighted-Average Grant Date Fair Value Non-vested PSUs at September 3, 2022 88 $ 80.04 Granted 51 82.16 PSU adjustment (1) 4 76.32 Vested ( 26 ) 76.32 Canceled/Forfeited — — Non-vested PSUs at December 3, 2022 (2) 117 $ 81.86 (1) PSU adjustment represents the net PSUs awarded above or below their target grants resulting from the achievement of performance goals above or below the performance targets established at grant. One grant goal was achieved at 116 % of its target based on fiscal year 2021 through fiscal year 2022 financial results. (2) Excludes approximately 8 shares of accrued incremental dividend equivalent rights on outstanding PSUs granted under the 2015 Omnibus Incentive Plan. The fair value of each PSU is the closing stock price on the New York Stock Exchange (the “NYSE”) of Class A Common Stock on the date of grant. PSUs are expensed over the three year performance period of each respective grant. Forfeitures of share-based awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting PSU forfeitures and records stock-based compensation expense only for PSU awards that are expected to vest. 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 December 3, 2022 was $ 7,700 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 weeks ended December 3, 2022 is as follows: Shares Weighted-Average Grant Date Fair Value Non-vested RSUs at September 3, 2022 448 $ 79.71 Granted 178 82.36 Vested ( 146 ) 79.11 Canceled/Forfeited ( 4 ) 80.55 Non-vested RSUs at December 3, 2022 (1) 476 $ 80.87 (1) Excludes approximately 39 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. RSUs are expensed over the vesting period of each respective grant. Forfeitures of share-based awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting RSU forfeitures and records stock-based compensation expense only for RSU awards that are expected to vest. 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 dividend equivalents are not included in the RSU table above. The unrecognized stock-based compensation cost related to the RSUs at December 3, 2022 was $ 34,534 and is expected to be recognized over a weighted-average period of 3.0 years. |
Fair Value
Fair Value | 3 Months Ended |
Dec. 03, 2022 | |
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 indebtedne ss. Cash and cash equivalents include investments in a money market fund which are reported at fair value. The fair value of money market funds is determined using quoted prices for identical investments in active markets, which are considered to be Level 1 inputs within the fair value hierarchy. The Company uses a market approach to determine the fair value of its debt instruments, utilizing quoted prices in active markets , interest rates and other relevant information generated by market transactions involving similar instruments. Therefore, the inputs used to measure the fair value of the Company’s debt instruments are classified as Level 2 within the fair value hierarchy. The reported carrying amounts of the Company’s financial instruments approximated their fair values as of December 3, 2022 and November 27, 2021. During the thirteen-week periods ended December 3, 2022 and November 27, 2021 , 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. |
Debt
Debt | 3 Months Ended |
Dec. 03, 2022 | |
Debt [Abstract] | |
Debt | Note 6. Debt Debt at December 3, 2022 and September 3, 2022 consisted of the following: December 3, September 3, 2022 2022 Amended Revolving Credit Facility $ 230,000 $ 245,000 Uncommitted Credit Facilities 200,000 200,000 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 796 88 Obligations under finance leases 886 1,180 Less: unamortized debt issuance costs ( 1,324 ) ( 1,426 ) Total debt, including obligations under finance leases $ 780,108 $ 794,592 Less: current portion ( 326,240 ) (2) ( 325,680 ) (3) Total long-term debt, including obligations under finance leases $ 453,868 $ 468,912 (1) Represents private placement debt issued under Shelf Facility Agreements (as defined below). (2) Consists of $ 200,000 from the Uncommitted Credit Facilities (as defined below), $ 50,000 from the 3.04 % Senior Notes, due January 12, 2023 , $ 75,000 from the 2.65 % Senior Notes, Series A, due July 28, 2023 , $ 835 from financing arrangements , $ 796 from obligations under finance leases and net of unamortized debt issuance costs of $ 391 expected to be amortized in the next 12 months. (3) Consists of $ 200,000 from the Uncommitted Credit Facilities, $ 50,000 from the 3.04 % Senior Notes, due January 12, 2023 , $ 75,000 from the 2.65 % Senior Notes, Series A, due July 28, 2023 , $ 88 from financing arrangements, $ 996 from obligations under finance leases and net of unamortized debt issuance costs of $404 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 $ 5,269 at both December 3, 2022 and September 3, 2022. Uncommitted Credit Facilities During fiscal year 2022, the Company amended and extended all three of its uncommitted credit facilities. All three of these amendments implemented the Secured Overnight Financing Rate (“SOFR”) as the replacement of the LIBOR benchmark. These facilities (collectively, 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 $ 200,000 was outstanding at both December 3, 2022 and September 3, 2022, and is included in the Current portion of debt including obligations under finance leases on the Company’s unaudited Condensed Consolidated Balance Sheets. 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 have recently been 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 it considers it appropriate under the then-existing credit market conditions. During the thirteen-week period ended December 3, 2022 , the Company borrowed an aggregate $ 84,000 and repaid an aggregate $ 99,000 under the Credit Facilities. As of December 3, 2022 and September 3, 2022, the weighted-average interest rates on borrowings under the Credit Facilities were 4.93 % and 3.42 %, respectively. Private Placement Debt In July 2016, the Company completed the issuance and sale of $ 75,000 aggregate principal amount of 2.65 % Senior Notes, Series A, due July 28, 2023 , and $ 100,000 aggregate principal amount of 2.90 % Senior Notes, Series B, due July 28, 2026 ; in June 2018, the Company completed the issuance and sale of $ 20,000 aggregate principal amount of 3.79 % Senior Notes, due June 11, 2025 ; and, in March 2020, the Company completed the issuance and sale of $ 50,000 aggregate principal amount of 2.60 % Senior Notes, due March 5, 2027 (collectively, the “Private Placement Debt”). Interest is payable semiannually at the fixed stated interest rates. All of the Private Placement Debt is unsecured. Shelf Facility Agreements In January 2018, the Company entered into Note Purchase and Private Shelf Agreements with MetLife Investment Advisors, LLC (the “MetLife Note Purchase Agreement”) and PGIM, Inc. (the “Prudential Note Purchase Agreement” and, together with the MetLife 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 December 3, 2022, $ 50,000 aggregate principal amount of 3.04 % Senior Notes, due January 12, 2023 (which is included in the Current portion of debt including obligations under finance leases on the Company’s unaudited Condensed Consolidated Balance Sheet as of December 3, 2022), and $ 50,000 aggregate principal amount of 2.40 % Series 2019A 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 (i) 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 (ii) 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. As of December 3, 2022, the Company was in compliance with the operating and financial covenants of the Credit Facilities, the Private Placement Debt and the Shelf Facility Agreements. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 03, 2022 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 7. 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 December 3, 2022 , the maximum number of shares of Class A Common Stock that may yet be repurchased under the Share Repurchase Program was 4,519 shares. The Share Repurchase Program allows the Company to repurchase shares at any time and in any increments it deems appropriate in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended . During the thirteen-week period ended December 3, 2022, the Company repurchased 233 shares of Class A Common Stock for $ 18,539 . From this total, 181 shares were immediately retired and 52 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 December 3, 2022. During the thirteen-week period ended November 27, 2021, the Company repurchased 53 shares of Class A Common Stock for $ 4,559 . 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 of Class A treasury stock during both the thirteen-week periods ended December 3, 2022 and November 27, 2021 to fund the MSC Industrial Direct Co., Inc. Amended and Restated Associate Stock Purchase Plan. Dividends on Common Stock The Company paid aggregate regular cash dividends of $ 0.79 per share totaling $ 44,207 for the thirteen weeks ended December 3, 2022. The $ 0.75 per share regular cash dividend declared by the Company’s Board of Directors during the thirteen weeks ended November 27, 2021 resulted in aggregate payments of $ 41,740 on November 30, 2021, after the thirteen weeks ended November 27, 2021. On December 16, 2022 , the Company’s Board of Directors declared a regular cash dividend of $ 0.79 per share, payable on January 24, 2023 , to shareholders of record at the close of business on January 10, 2023 . The dividend is expected to result in aggregate payments of $ 44,218 , based on the number of shares outstanding at December 15, 2022. |
Restructuring and Other Costs
Restructuring and Other Costs | 3 Months Ended |
Dec. 03, 2022 | |
Restructuring and Other Costs [Abstract] | |
Restructuring and Other Costs | Note 8. Restructuring and Other Costs Optimization of Company Operations and Profitability Improvement 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. As such, the Company extended voluntary and involuntary severance and separation benefits to certain associates in order to facilitate its workforce realignment. In addition, the Company engaged consultants to assist in reviewing the optimization of the Company’s operations and improving profitability with executing on its Company-wide initiative, referred to as Mission Critical, through fiscal year 2023. The following table summarizes restructuring and other costs for the thirteen weeks ended December 3, 2022 and November 27, 2021: Thirteen Weeks Ended December 3, November 27, 2022 2021 Consulting-related costs $ 1,575 $ — Associate severance and separation costs 519 3,515 Equity award acceleration costs associated with severance — 1,729 Other exit-related costs — 39 Total restructuring and other costs $ 2,094 $ 5,283 Liabilities associated with restructuring and other costs are included in Accrued expenses and other current liabilities in the unaudited Condensed Consolidated Balance Sheet as of December 3, 2022. The following table summarizes activity related to liabilities associated with restructuring and other costs for the thirteen weeks ended December 3, 2022: Consulting-related costs Associate severance and separation costs Total Balance as of September 3, 2022 $ 840 $ 1,874 $ 2,714 Additions 1,575 519 2,094 Payments and other adjustments ( 1,315 ) ( 1,504 ) ( 2,819 ) Balance as of December 3, 2022 $ 1,100 $ 889 $ 1,989 |
Product Warranties
Product Warranties | 3 Months Ended |
Dec. 03, 2022 | |
Product Warranties [Abstract] | |
Product Warranties | Note 9. Product Warranties The Company generally offers a maximum one year warranty, including parts and labor, for certain of its products sold. The specific terms and conditions of those warranties vary depending upon the product sold. The Company may be able to recoup some of these costs through product warranties it holds with the original equipment manufacturers, which typically range from 30 to 90 day s. In general, many of the Company’s general merchandise products are covered by third-party original equipment manufacturers’ warranties. The Company’s warranty expense for the thirteen-week periods ended December 3, 2022 and November 27, 2021 was immaterial. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 03, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | Note 10. Income Taxes During the thirteen-week period ended December 3, 2022, there were no material changes in unrecognized tax benefits. On March 27, 2020, 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 ERC provision, previously enacted under the CARES Act, through December 31, 2021. The Company has filed a refund claim in connection with the ERC and will account for the potential ERC refund, if any, upon Internal Revenue Service approval and receipt. 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 this amount, half was remitted in December 2021 and the remaining half was remitted in December 2022. The Company’s effective tax rate was 24.7 % for the thirteen-week period ended December 3, 2022, as compared to 23.5 % for the thirteen-week period ended November 27, 2021. The increase in the effective tax rate was primarily due to a lower tax benefit from stock-based compensation. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Dec. 03, 2022 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | Note 11. 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 03, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12. Subsequent Events On December 19, 2022, the Company and two of its subsidiaries entered into an arrangement with certain financial institutions, pursuant to which such financial institutions will purchase existing and future trade receivables and certain related rights from one of the subsidiaries (the “Receivables Facility”). The Receivables Facility is a committed senior secured revolving trade receivables facility in an initial aggregate amount of $ 300,000 . Amounts purchased under the Receivables Facility will be priced at one-month term SOFR plus a margin. During December 2022, proceeds from the Receivables Facility were used to pay down $ 230,000 on the Amended Revolving Credit Facility and $ 40,000 on the Uncommitted Credit Facilities. The current outstanding balances are $ 30,000 on the Amended Revolving Credit Facility and $ 160,000 on the Uncommitted Credit Facilities. The Receivables Facility contains certain representations and warranties by the Company customary for facilities of this type. The financial covenants under the Receivables Facility are identical to those under the Credit Facilities, the Private Placement Debt and the Shelf Facility Agreements. See Note 6, “Debt” for more information about these financial covenants. |
Business Of Presentation (Polic
Business Of Presentation (Policy) | 3 Months Ended |
Dec. 03, 2022 | |
Business And Summary Of Significants Accounting Policies [Abstract] | |
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 Economic Trends | Impact of Economic Trends The United States economy has experienced and continues to experience disruptions in the supply of certain products and services and tight conditions in the labor market. These disruptions and conditions have contributed to an inflationary environment which, while falling, remains elevated and has 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. Such disruptions and conditions have impacted, and may continue to impact in the future, the Company’s business, financial condition and results of operations. As a result of recent high inflation and elevated freight, labor and fuel costs, as well as periodic supply chain disruptions, the Company has implemented price realization strategies in response to increased costs the Company faces. Furthermore, in light of disruptions to availability and increased or uncertain shipping times, the Company is maintaining higher purchasing levels than it did prior to its fiscal year 2020 in order to ensure sufficient inventory supply to meet customer demand. |
Fiscal Year | Fiscal Year The Company operates on a 52/53-week fiscal year ending on the Saturday closest to August 31 st of each year. References to “fiscal year 2023” refer to the period from September 4, 2022 to September 2, 2023, which is a 52-week fiscal year. References to “fiscal year 2022” refer to the period from August 29, 2021 to September 3, 2022, which was a 53-week fiscal year. The fiscal quarters ended December 3, 2022 and November 27, 2021 refer to the thirteen weeks ended as of those dates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, which provides for additional annual disclosures and added transparency for entities which receive government assistance. This includes disclosure of the type of government assistance received, the entity’s method of accounting, and the impact on the entity’s financial statements. This guidance is for annual periods beginning after December 15, 2021. The guidance was adopted by the Company for fiscal year 2023 and will be applied prospectively. The Company anticipates annual disclosures within the Company’s Annual Report on Form 10-K for fiscal year 2023 related to the Employee Retention Credit (the “ERC”) provision provided under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). 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 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 03, 2022 | |
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 weeks ended December 3, 2022 and November 27, 2021: Thirteen Weeks Ended (1) December 3, 2022 November 27, 2021 Manufacturing Heavy 48 % 49 % Manufacturing Light 21 % 21 % Government 8 % 7 % Retail/Wholesale 7 % 8 % Commercial Services 4 % 4 % Other (2) 12 % 11 % Total net sales 100 % 100 % (1) Includes the effect of a reclassification of end-markets which occurred during the fourth quarter of fiscal year 2022. (2) The Other category 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 weeks ended December 3, 2022 and November 27, 2021: Thirteen Weeks Ended December 3, 2022 November 27, 2021 United States $ 910,068 95 % $ 799,075 94 % Mexico 21,110 2 % 22,615 3 % Canada 13,582 2 % 12,262 1 % North America 944,760 99 % 833,952 98 % Other foreign countries 12,985 1 % 14,595 2 % Total net sales $ 957,745 100 % $ 848,547 100 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Dec. 03, 2022 | |
Net Income Per Share [Abstract] | |
Computation Of Basic And Diluted Net Income Per Common Share Under Treasury Stock Method | Thirteen Weeks Ended December 3, November 27, 2022 2021 Numerator: Net income attributable to MSC Industrial as reported $ 81,314 $ 66,067 Denominator: Weighted-average shares outstanding for basic net income per share 55,891 55,530 Effect of dilutive securities 190 326 Weighted-average shares outstanding for diluted net income per share 56,081 55,856 Net income per share: Basic $ 1.45 $ 1.19 Diluted $ 1.45 $ 1.18 Potentially dilutive securities 499 434 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 03, 2022 | |
Stock-Based Compensation [Abstract] | |
Schedule Of Stock-Based Compensation Expense | Thirteen Weeks Ended December 3, November 27, 2022 2021 Stock options $ 101 $ 588 Restricted stock units 3,711 4,703 Performance share units 1,095 308 Associate Stock Purchase Plan 83 90 Total 4,990 5,689 Deferred income tax benefit ( 1,233 ) ( 1,337 ) Stock-based compensation expense, net $ 3,757 $ 4,352 |
Summary Of Stock Option Activity | Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding on September 3, 2022 614 $ 78.96 Granted — — Exercised ( 114 ) 73.36 Canceled/Forfeited/Expired ( 23 ) 80.27 Outstanding on December 3, 2022 477 $ 80.23 2.2 $ 2,583 Exercisable on December 3, 2022 477 $ 80.23 2.2 $ 2,583 |
Summary Of Performance Share Unit Activity | Shares Weighted-Average Grant Date Fair Value Non-vested PSUs at September 3, 2022 88 $ 80.04 Granted 51 82.16 PSU adjustment (1) 4 76.32 Vested ( 26 ) 76.32 Canceled/Forfeited — — Non-vested PSUs at December 3, 2022 (2) 117 $ 81.86 (1) PSU adjustment represents the net PSUs awarded above or below their target grants resulting from the achievement of performance goals above or below the performance targets established at grant. One grant goal was achieved at 116 % of its target based on fiscal year 2021 through fiscal year 2022 financial results. (2) Excludes approximately 8 shares of accrued incremental dividend equivalent rights on outstanding PSUs granted under the 2015 Omnibus Incentive Plan. |
Summary Of Non-Vested Restricted Stock Unit Award Activity | Shares Weighted-Average Grant Date Fair Value Non-vested RSUs at September 3, 2022 448 $ 79.71 Granted 178 82.36 Vested ( 146 ) 79.11 Canceled/Forfeited ( 4 ) 80.55 Non-vested RSUs at December 3, 2022 (1) 476 $ 80.87 (1) Excludes approximately 39 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the 2015 Omnibus Incentive Plan. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 03, 2022 | |
Debt [Abstract] | |
Schedule Of Debt | December 3, September 3, 2022 2022 Amended Revolving Credit Facility $ 230,000 $ 245,000 Uncommitted Credit Facilities 200,000 200,000 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 796 88 Obligations under finance leases 886 1,180 Less: unamortized debt issuance costs ( 1,324 ) ( 1,426 ) Total debt, including obligations under finance leases $ 780,108 $ 794,592 Less: current portion ( 326,240 ) (2) ( 325,680 ) (3) Total long-term debt, including obligations under finance leases $ 453,868 $ 468,912 (1) Represents private placement debt issued under Shelf Facility Agreements (as defined below). (2) Consists of $ 200,000 from the Uncommitted Credit Facilities (as defined below), $ 50,000 from the 3.04 % Senior Notes, due January 12, 2023 , $ 75,000 from the 2.65 % Senior Notes, Series A, due July 28, 2023 , $ 835 from financing arrangements , $ 796 from obligations under finance leases and net of unamortized debt issuance costs of $ 391 expected to be amortized in the next 12 months. (3) Consists of $ 200,000 from the Uncommitted Credit Facilities, $ 50,000 from the 3.04 % Senior Notes, due January 12, 2023 , $ 75,000 from the 2.65 % Senior Notes, Series A, due July 28, 2023 , $ 88 from financing arrangements, $ 996 from obligations under finance leases and net of unamortized debt issuance costs of $404 expected to be amortized in the next 12 months. |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 3 Months Ended |
Dec. 03, 2022 | |
Restructuring and Other Costs [Abstract] | |
Schedule Of Restructuring Charges | Thirteen Weeks Ended December 3, November 27, 2022 2021 Consulting-related costs $ 1,575 $ — Associate severance and separation costs 519 3,515 Equity award acceleration costs associated with severance — 1,729 Other exit-related costs — 39 Total restructuring and other costs $ 2,094 $ 5,283 |
Summary Of Restructuring Related Liabilities | Consulting-related costs Associate severance and separation costs Total Balance as of September 3, 2022 $ 840 $ 1,874 $ 2,714 Additions 1,575 519 2,094 Payments and other adjustments ( 1,315 ) ( 1,504 ) ( 2,819 ) Balance as of December 3, 2022 $ 1,100 $ 889 $ 1,989 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Dec. 03, 2022 USD ($) segment | Sep. 03, 2022 USD ($) | |
Accrued sales returns | $ 7,469,000 | $ 7,198,000 |
Accrued sales incentives | 27,277,000 | 25,274,000 |
Prepaid sales incentives | 1,903,000 | 2,210,000 |
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 | |
Dec. 03, 2022 | Nov. 27, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 957,745 | $ 848,547 |
Net Sales [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 100% | 100% |
Net Sales [Member] | Geographic Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 957,745 | $ 848,547 |
Concentration risk, percentage | 100% | 100% |
Manufacturing Heavy [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 48% | 49% |
Manufacturing Light [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 21% | 21% |
Retail/Wholesale [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 8% | 7% |
Government [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 7% | 8% |
Commercial Services [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 4% | 4% |
Other Customers [Member] | Net Sales [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 12% | 11% |
US [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 910,068 | $ 799,075 |
Concentration risk, percentage | 95% | 94% |
Mexico [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 21,110 | $ 22,615 |
Concentration risk, percentage | 2% | 3% |
United Kingdom [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 944,760 | $ 833,952 |
Concentration risk, percentage | 99% | 98% |
Canada [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 13,582 | $ 12,262 |
Concentration risk, percentage | 2% | 1% |
Other foreign countries [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 12,985 | $ 14,595 |
Concentration risk, percentage | 1% | 2% |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - $ / shares | Dec. 03, 2022 | Sep. 03, 2022 |
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 | |
Dec. 03, 2022 | Nov. 27, 2021 | |
Net Income Per Share [Abstract] | ||
Net income attributable to MSC Industrial as reported | $ 81,314 | $ 66,067 |
Weighted-average shares outstanding for basic net income per share | 55,891 | 55,530 |
Effect of dilutive securities | 190 | 326 |
Weighted-average shares outstanding for diluted net income per share | 56,081 | 55,856 |
Basic | $ 1.45 | $ 1.19 |
Diluted | $ 1.45 | $ 1.18 |
Potentially dilutive securities | 499 | 434 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 03, 2022 | Nov. 27, 2021 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of options exercised | $ 970 | $ 2,543 |
Aggregate Intrinsic Value of options outstanding | 2,583 | |
Aggregate Intrinsic Value, Options exercisable | 2,583 | |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 7,700 | |
Unrecognized share-based compensation weighted average period | 2 years 2 months 12 days | |
Vesting period | 3 years | |
Vested shares, percentage of target award amount | 116% | |
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% | |
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% | |
Restricted Stock Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 34,534 | |
Unrecognized share-based compensation weighted average period | 3 years |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 03, 2022 | Nov. 27, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 4,990 | $ 5,689 |
Deferred income tax benefit | (1,233) | (1,337) |
Stock-based compensation expense, net | 3,757 | 4,352 |
Stock Options [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 101 | 588 |
Restricted Stock Unit [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 3,711 | 4,703 |
Performance Share Units [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 1,095 | 308 |
Associate Stock Purchase Plan [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 83 | $ 90 |
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 |
Dec. 03, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Beginning Balance, Options | shares | 614 |
Granted, Options | shares | |
Exercised, Options | shares | (114) |
Canceled/Forfeited, Options | shares | (23) |
Outstanding, Ending Balance, Options | shares | 477 |
Exercisable, Ending Balance, Options | shares | 477 |
Outstanding, Beginning Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 78.96 |
Granted, Weighted-Average Exercise Price per Share | $ / shares | |
Exercised, Weighted-Average Exercise Price per Share | $ / shares | 73.36 |
Canceled/Forfeited, Weighted-Average Exercise Price per Share | $ / shares | 80.27 |
Outstanding, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | 80.23 |
Exercisable, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 80.23 |
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 2 months 12 days |
Outstanding, Ending Balance, Aggregate Intrinsic Value | $ | $ 2,583 |
Exercisable, Ending Balance, Aggregate Intrinsic Value | $ | $ 2,583 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Performance Share Unit Activity) (Details) shares in Thousands | 3 Months Ended |
Dec. 03, 2022 $ / shares shares | |
Performance Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share awards, Beginning balance, Shares | 88 |
Granted, Shares | 51 |
PSU adjustment, Shares | 4 |
Vested, Shares | (26) |
Non-vested share awards, Ending balance, Shares | 117 |
Non-vested share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 80.04 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 82.16 |
PSU Adjustment, Weighted-Average Grant-Date Fair Value | $ / shares | 76.32 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 76.32 |
Non-vested share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 81.86 |
Vested shares, percentage of target award amount | 116% |
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 | 8 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of Non-Vested Restricted Stock Unit Award Activity) (Details) shares in Thousands | 3 Months Ended |
Dec. 03, 2022 $ / shares shares | |
Restricted Stock Unit [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share awards, Beginning balance, Shares | 448 |
Granted, Shares | 178 |
Vested, Shares | (146) |
Canceled/Forfeited, Shares | (4) |
Non-vested share awards, Ending balance, Shares | 476 |
Non-vested share awards, Beginning balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 79.71 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 82.36 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 79.11 |
Canceled/Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 80.55 |
Non-vested share awards, Ending balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 80.87 |
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 | 39 |
Fair Value (Details)
Fair Value (Details) - USD ($) | 3 Months Ended | ||
Dec. 03, 2022 | Nov. 27, 2021 | Sep. 03, 2022 | |
Fair Value [Abstract] | |||
Fair value remeasurement of non-financial assets on non-recurring basis | $ 0 | $ 0 | |
Fair value remeasurement of non-financial liabilities on non-recurring basis | 0 | $ 0 | |
Property, plant and equipment, net | $ 297,113,000 | $ 286,666,000 |
Debt (Revolving Credit Faciliti
Debt (Revolving Credit Facilities) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 03, 2022 | Nov. 27, 2021 | Sep. 03, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Borrowings under credit facilities | $ 84,000 | $ 26,000 | ||
Amended Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 600,000 | |||
Maturity date | Aug. 24, 2026 | |||
Credit facility, expiration term | 5 years | 1 year | ||
Committed Bank Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance | $ 230,000 | $ 245,000 | ||
Committed Bank Facility [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance | $ 30 | |||
Committed Bank Facility [Member] | Amended Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Available increase in amount borrowed | 300,000 | |||
Letter of Credit [Member] | Amended Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 50,000 | |||
Outstanding balance | 5,269 | 5,269 | ||
Uncommitted Bank Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance | $ 200,000 | 200,000 | ||
Uncommitted Bank Facilities [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance | $ 160 | |||
Amended Uncommitted Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 208,000 | |||
Weighted average rate under Credit Facility | 4.93% | 3.42% | ||
Outstanding balance | $ 200 | |||
Borrowings under credit facilities | 84,000 | |||
Repayment of loan facility | $ 99,000 |
Debt (Private Placement Debt) (
Debt (Private Placement Debt) (Narrative) (Details) - Private Placement Debt [Member] - USD ($) | 3 Months Ended | |
Dec. 03, 2022 | Sep. 03, 2022 | |
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. 05, 2027 |
Debt (Shelf Facility Agreements
Debt (Shelf Facility Agreements) (Narrative) (Details) $ in Thousands | 3 Months Ended |
Dec. 03, 2022 USD ($) | |
Shelf Facility Agreements [Member] | |
Line of Credit Facility [Line Items] | |
Credit facility, maximum borrowing capacity | $ 250,000 |
Private Placement Debt and Shelf Facility Agreements [Member] | |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio of total indebtedness to EBITDA | 3 |
Maximum consolidated leverage ratio of total indebtedness to EBITDA after material acquisition | 3.50 |
Minimum consolidated interest coverage ratio of EBITDA to total interest expense | 3 |
Series Notes Due January 12, 2023 [Member] | Private Placement Debt [Member] | |
Line of Credit Facility [Line Items] | |
Outstanding balance | $ 50,000 |
Interest rate | 3.04% |
Maturity date | Jan. 12, 2023 |
Series Notes Due March 5, 2024 [Member] | Private Placement Debt [Member] | |
Line of Credit Facility [Line Items] | |
Outstanding balance | $ 50 |
Interest rate | 2.40% |
Maturity date | Mar. 05, 2024 |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) | 3 Months Ended | |
Dec. 03, 2022 | Sep. 03, 2022 | |
Debt Instrument [Line Items] | ||
Long-Term Note Payable | $ 4,750,000 | $ 4,750,000 |
Financing arrangements | 796,000 | 88,000 |
Obligations under finance leases | 886,000 | 1,180,000 |
Less: unamortized debt issuance costs | (1,324,000) | (1,426,000) |
Total debt, including obligations under finance leases | 780,108,000 | 794,592,000 |
Less: current portion | (326,240,000) | (325,680,000) |
Total long-term debt, including obligations under finance leases | 453,868,000 | 468,912,000 |
Financing obligations, current | 835,000 | 88,000 |
Finance Lease, Liability, Current | 796,000 | 996,000 |
Unamortized debt issuance costs, current | 391,000 | |
Committed Bank Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 230,000,000 | 245,000,000 |
Uncommitted Bank Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 200,000,000 | 200,000,000 |
Short-term debt | 200,000,000 | 200,000,000 |
Senior Notes Series A [Member] | Private Placement Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 75,000,000 | 75,000,000 |
Interest rate | 2.65% | |
Maturity date | Jul. 28, 2023 | |
Senior Notes Series B [Member] | Private Placement Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 100,000,000 | 100,000,000 |
Interest rate | 2.90% | |
Maturity date | Jul. 28, 2026 | |
Senior Notes Due June 11, 2025 [Member] | Private Placement Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 20,000,000 | 20,000,000 |
Interest rate | 3.79% | |
Maturity date | Jun. 11, 2025 | |
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. 05, 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. 05, 2024 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Dec. 16, 2022 | Dec. 15, 2022 | Dec. 03, 2022 | Nov. 27, 2021 | |
Components Of Shareholders Equity [Line Items] | ||||
Cash dividends paid per common share | $ 0.79 | $ 0.75 | ||
Cash dividends paid | $ 44,207 | $ 41,740 | ||
Subsequent Event [Member] | ||||
Components Of Shareholders Equity [Line Items] | ||||
Dividends declared date | Dec. 16, 2022 | |||
Dividends payable per share | $ 0.79 | |||
Dividend payable date | Jan. 24, 2023 | |||
Dividends date of record | Jan. 10, 2023 | |||
Dividend payable amount | $ 44,218 | |||
Class A Common Stock [Member] | ||||
Components Of Shareholders Equity [Line Items] | ||||
Common stock shares repurchased | 233 | 53 | ||
Treasury Stock, Shares, Retired | 181 | |||
Purchase of treasury stock | $ 18,539 | $ 4,559 | ||
Shares repurchased by the company for associates' tax withholding liability associated with share-based compensation | 52 | |||
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 | 4,519 | |||
Treasury Stock [Member] | Class A Common Stock [Member] | ||||
Components Of Shareholders Equity [Line Items] | ||||
Purchase of treasury stock | $ 4,227 | $ 4,559 |
Restructuring and Other Costs_2
Restructuring and Other Costs (Schedule Of Restructuring Charges) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 03, 2022 | Nov. 27, 2021 | |
Restructuring and Other Costs [Abstract] | ||
Consulting-related costs | $ 1,575 | |
Associate severance and separation costs | 519 | $ 3,515 |
Equity award acceleration costs associated with severance | 1,729 | |
Other exit-related costs | 39 | |
Total restructuring costs | $ 2,094 | $ 5,283 |
Restructuring and Other Costs_3
Restructuring and Other Costs (Summary Of Restructuring Related Liabilities) (Details) $ in Thousands | 3 Months Ended |
Dec. 03, 2022 USD ($) | |
Consulting-Related Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance | $ 840 |
Additions | 1,575 |
Payments and other adjustments | (1,315) |
Balance | 1,100 |
Severance and Separation Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance | 1,874 |
Additions | 519 |
Payments and other adjustments | (1,504) |
Balance | 889 |
Other Exit Related Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance | 2,714 |
Additions | 2,094 |
Payments and other adjustments | (2,819) |
Balance | $ 1,989 |
Product Warranties (Details)
Product Warranties (Details) | 3 Months Ended |
Dec. 03, 2022 | |
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 | ||
Dec. 03, 2022 | Nov. 27, 2021 | Dec. 31, 2020 | |
Changes in unrecognized tax benefits | $ 0 | ||
Effective tax rate | 24.70% | 23.50% | |
The CARES Act [Member] | |||
Accrued Payroll Taxes | $ 18,887,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Dec. 19, 2022 | Dec. 31, 2022 | Dec. 03, 2022 | Sep. 03, 2022 | |
Committed Bank Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of Credit Facility, Amount Outstanding | $ 230,000 | $ 245,000 | ||
Committed Bank Facility [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Repayments of Long-Term Lines of Credit | $ 230 | |||
Line of Credit Facility, Amount Outstanding | 30 | |||
Committed Senior Secured Revolving Trade Receivables Facility [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from Sale and Collection of Receivables | $ 300,000 | |||
Uncommitted Bank Facilities [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of Credit Facility, Amount Outstanding | 200,000 | $ 200,000 | ||
Uncommitted Bank Facilities [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Repayments of Long-Term Lines of Credit | 40 | |||
Line of Credit Facility, Amount Outstanding | $ 160 | |||
Amended Uncommitted Credit Facilities [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of Credit Facility, Amount Outstanding | $ 200 |