Cover
Cover - shares | 6 Months Ended | |
Mar. 04, 2023 | Mar. 15, 2023 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 04, 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 $0.001 per share | |
Trading Symbol | MSM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001003078 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --09-02 | |
Amendment Flag | false | |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 47,257,675 | |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,654,010 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 04, 2023 | Sep. 03, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 49,615 | $ 43,537 |
Accounts receivable, net of allowance for credit losses of $22,628 and $20,771, respectively | 412,687 | 687,608 |
Inventories | 747,470 | 715,625 |
Prepaid expenses and other current assets | 104,996 | 96,853 |
Total current assets | 1,314,768 | 1,543,623 |
Property, plant and equipment, net | 298,664 | 286,666 |
Goodwill | 718,179 | 710,130 |
Identifiable intangibles, net | 117,865 | 114,328 |
Operating lease assets | 64,299 | 64,780 |
Other assets | 10,680 | 9,887 |
Total assets | 2,524,455 | 2,729,414 |
Current Liabilities: | ||
Current portion of debt including obligations under finance leases | 275,758 | 325,680 |
Current portion of operating lease liabilities | 19,174 | 18,560 |
Accounts payable | 207,553 | 217,378 |
Accrued expenses and other current liabilities | 142,796 | 164,326 |
Total current liabilities | 645,281 | 725,944 |
Long-term debt including obligations under finance leases | 273,941 | 468,912 |
Noncurrent operating lease liabilities | 46,583 | 47,616 |
Deferred income taxes and tax uncertainties | 124,659 | 124,659 |
Total liabilities | 1,090,464 | 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 | 0 | 0 |
Additional paid-in capital | 824,268 | 798,408 |
Retained earnings | 725,826 | 681,292 |
Accumulated other comprehensive loss | (20,437) | (23,121) |
Class A treasury stock, at cost, 1,251,733 and 1,228,472 shares, respectively | (108,781) | (106,202) |
Total MSC Industrial shareholders’ equity | 1,420,934 | 1,350,434 |
Noncontrolling interest | 13,057 | 11,849 |
Total shareholders’ equity | 1,433,991 | 1,362,283 |
Total liabilities and shareholders’ equity | 2,524,455 | 2,729,414 |
Class A Common Stock | ||
MSC Industrial Shareholders’ Equity: | ||
Common stock, value, issued | 49 | 48 |
Class B Common Stock | ||
MSC Industrial Shareholders’ Equity: | ||
Common stock, value, issued | $ 9 | $ 9 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 04, 2023 | Sep. 03, 2022 |
Accounts receivable, allowance for credit loss, current | $ 22,628 | $ 20,771 |
Preferred stock, par value (in usd per share) | $ 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 |
Treasury stock, shares | 1,251,733 | 1,228,472 |
Cash and cash equivalents | $ 49,615 | $ 43,537 |
Class A Common Stock | ||
Common stock, voting rights | 1 | |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares, issued | 48,509,408 | 48,447,384 |
Class B Common Stock | ||
Common stock, voting rights | 10 | |
Common stock, par value (in usd per share) | $ 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 | 6 Months Ended | ||
Mar. 04, 2023 | Feb. 26, 2022 | Mar. 04, 2023 | Feb. 26, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 961,632 | $ 862,522 | $ 1,919,377 | $ 1,711,069 |
Cost of goods sold | 564,937 | 496,247 | 1,124,883 | 992,198 |
Gross profit | 396,695 | 366,275 | 794,494 | 718,871 |
Operating expenses | 280,630 | 265,973 | 560,325 | 522,554 |
Restructuring and other costs | 1,783 | 3,134 | 3,877 | 8,417 |
Income from operations | 114,282 | 97,168 | 230,292 | 187,900 |
Other income (expense): | ||||
Interest expense | (5,956) | (3,617) | (12,875) | (7,345) |
Interest income | 151 | 21 | 251 | 40 |
Other (expense) income, net | (2,299) | 91 | (3,639) | (322) |
Total other expense | (8,104) | (3,505) | (16,263) | (7,627) |
Income before provision for income taxes | 106,178 | 93,663 | 214,029 | 180,273 |
Provision for income taxes | 26,863 | 23,509 | 53,502 | 43,862 |
Net income | 79,315 | 70,154 | 160,527 | 136,411 |
Less: Net income attributable to noncontrolling interest | 175 | 223 | 73 | 413 |
Net income attributable to MSC Industrial | $ 79,140 | $ 69,931 | $ 160,454 | $ 135,998 |
Net income per common share: | ||||
Basic (in usd per share) | $ 1.42 | $ 1.25 | $ 2.87 | $ 2.44 |
Diluted (in usd per share) | $ 1.41 | $ 1.25 | $ 2.86 | $ 2.43 |
Weighted-average shares used in computing net income per common share: | ||||
Basic (in shares) | 55,880 | 55,799 | 55,885 | 55,664 |
Diluted (in shares) | 56,001 | 55,971 | 56,074 | 55,945 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 04, 2023 | Feb. 26, 2022 | Mar. 04, 2023 | Feb. 26, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income, as reported | $ 79,315 | $ 70,154 | $ 160,527 | $ 136,411 | |
Other comprehensive income, net of tax: | |||||
Foreign currency translation adjustments | 2,549 | 3,768 | 3,819 | (1,224) | |
Comprehensive income | [1] | 81,864 | 73,922 | 164,346 | 135,187 |
Comprehensive income attributable to noncontrolling interest: | |||||
Net income | (175) | (223) | (73) | (413) | |
Foreign currency translation adjustments | (800) | (824) | (1,135) | 87 | |
Comprehensive income attributable to MSC Industrial | $ 80,889 | $ 72,875 | $ 163,138 | $ 134,861 | |
[1]There were no material taxes associated with other comprehensive income during the thirteen- and twenty-six-week periods ended March 4, 2023 and February 26, 2022. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) | 6 Months Ended | |
Mar. 04, 2023 | Feb. 26, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Other comprehensive income, taxes | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Total | Total Shareholders’ Equity Attributable to MSC Industrial | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interest | Class A Common Stock | Class A Common Stock Common Stock | Class A Common Stock Retained Earnings | Class A Common Stock Treasury Stock | Class B Common Stock | Class B Common Stock Common Stock | Class B Common Stock Retained Earnings |
Beginning Balance at Aug. 28, 2021 | $ 740,867 | $ 532,315 | $ (17,984) | $ (104,384) | $ 11,001 | $ 48 | $ 9 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Associate Incentive Plans | 25,289 | |||||||||||||
Associate Incentive Plans | 1,796 | |||||||||||||
Foreign Currency Translation Adjustment | $ (1,224) | (1,137) | ||||||||||||
Net Income | 135,998 | 135,998 | 413 | |||||||||||
Repurchases of Class A Common Stock | $ (4,813) | |||||||||||||
Cash dividends declared on Common Stock | $ (70,605) | $ (12,981) | ||||||||||||
Dividend equivalents declared, net of cancellations | (444) | |||||||||||||
Foreign Currency Translation Adjustment | 87 | (87) | ||||||||||||
Ending Balance at Feb. 26, 2022 | 1,235,301 | $ 1,223,974 | 766,156 | 584,283 | (19,121) | (107,401) | 11,327 | 48 | 9 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Dividends declared per common share (in usd per share) | $ 1,500 | $ 1,500 | ||||||||||||
Beginning Balance at Nov. 27, 2021 | 756,314 | 556,586 | (22,065) | (108,138) | 10,280 | 48 | 9 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Associate Incentive Plans | 9,842 | |||||||||||||
Associate Incentive Plans | 991 | |||||||||||||
Foreign Currency Translation Adjustment | 3,768 | 2,944 | ||||||||||||
Net Income | 69,931 | 69,931 | 223 | |||||||||||
Repurchases of Class A Common Stock | (254) | |||||||||||||
Cash dividends declared on Common Stock | (35,356) | (6,490) | ||||||||||||
Dividend equivalents declared, net of cancellations | (388) | |||||||||||||
Foreign Currency Translation Adjustment | (824) | 824 | ||||||||||||
Ending Balance at Feb. 26, 2022 | 1,235,301 | 1,223,974 | 766,156 | 584,283 | (19,121) | (107,401) | 11,327 | 48 | 9 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Dividends declared per common share (in usd per share) | 750 | 750 | ||||||||||||
Beginning Balance at Sep. 03, 2022 | 1,362,283 | 798,408 | 681,292 | (23,121) | (106,202) | 11,849 | 48 | 9 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Associate Incentive Plans | 25,915 | 1 | ||||||||||||
Associate Incentive Plans | 1,851 | |||||||||||||
Foreign Currency Translation Adjustment | 3,819 | 2,684 | ||||||||||||
Net Income | 160,454 | 160,454 | 73 | |||||||||||
Repurchase and retirement of Class A Common Stock | (55) | (26,522) | ||||||||||||
Repurchases of Class A Common Stock | (4,430) | |||||||||||||
Cash dividends declared on Common Stock | (74,639) | (13,674) | ||||||||||||
Dividend equivalents declared, net of cancellations | (1,085) | |||||||||||||
Foreign Currency Translation Adjustment | (1,135) | 1,135 | ||||||||||||
Ending Balance at Mar. 04, 2023 | 1,433,991 | 1,420,934 | 824,268 | 725,826 | (20,437) | (108,781) | 13,057 | 49 | 9 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Dividends declared per common share (in usd per share) | 1,580 | 1,580 | ||||||||||||
Beginning Balance at Dec. 03, 2022 | 814,493 | 703,565 | (22,186) | (109,592) | 12,082 | 49 | 9 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Associate Incentive Plans | 9,800 | |||||||||||||
Associate Incentive Plans | 1,014 | |||||||||||||
Foreign Currency Translation Adjustment | 2,549 | 1,749 | ||||||||||||
Net Income | 79,140 | 79,140 | 175 | |||||||||||
Repurchase and retirement of Class A Common Stock | (25) | (12,240) | ||||||||||||
Repurchases of Class A Common Stock | $ (203) | |||||||||||||
Cash dividends declared on Common Stock | $ (37,269) | $ (6,837) | ||||||||||||
Dividend equivalents declared, net of cancellations | (533) | |||||||||||||
Foreign Currency Translation Adjustment | (800) | 800 | ||||||||||||
Ending Balance at Mar. 04, 2023 | $ 1,433,991 | $ 1,420,934 | $ 824,268 | $ 725,826 | $ (20,437) | $ (108,781) | $ 13,057 | $ 49 | $ 9 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Dividends declared per common share (in usd per share) | $ 790 | $ 790 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Cash Flows - USD ($) | 6 Months Ended | |
Mar. 04, 2023 | Feb. 26, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 160,527,000 | $ 136,411,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 37,223,000 | 34,985,000 |
Non-cash operating lease cost | 9,883,000 | 8,012,000 |
Stock-based compensation | 9,969,000 | 10,189,000 |
Loss on disposal of property, plant and equipment | 249,000 | 230,000 |
Provision for credit losses | 5,490,000 | 4,245,000 |
Deferred income taxes | 0 | (341,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 273,835,000 | (64,293,000) |
Inventories | (27,787,000) | (34,024,000) |
Prepaid expenses and other current assets | (6,926,000) | (8,358,000) |
Operating lease liabilities | (9,820,000) | (8,136,000) |
Other assets | (552,000) | (1,492,000) |
Accounts payable and accrued liabilities | (35,651,000) | (20,007,000) |
Total adjustments | 255,913,000 | (78,990,000) |
Net cash provided by operating activities | 416,440,000 | 57,421,000 |
Cash Flows from Investing Activities: | ||
Expenditures for property, plant and equipment | (40,571,000) | (31,179,000) |
Cash used in business acquisitions, net of cash acquired | (20,533,000) | 0 |
Net cash used in investing activities | (61,104,000) | (31,179,000) |
Cash Flows from Financing Activities: | ||
Repurchases of Class A Common Stock | (31,007,000) | (4,813,000) |
Payments of regular cash dividends | (88,313,000) | (83,586,000) |
Proceeds from sale of Class A Common Stock in connection with associate stock purchase plan | 2,332,000 | 2,259,000 |
Proceeds from exercise of Class A Common Stock options | 12,775,000 | 12,053,000 |
Borrowings under credit facilities | 208,000,000 | 184,000,000 |
Payments under credit facilities | (403,000,000) | (134,500,000) |
Borrowings under financing obligations | 1,061,000 | 1,058,000 |
Payments under Shelf Facility Agreements and Private Placement Debt | (50,000,000) | 0 |
Other, net | (1,171,000) | (1,387,000) |
Net cash used in financing activities | (349,323,000) | (24,916,000) |
Effect of foreign exchange rate changes on cash and cash equivalents | 65,000 | (108,000) |
Net increase in cash and cash equivalents | 6,078,000 | 1,218,000 |
Cash and cash equivalents—beginning of period | 43,537,000 | 40,536,000 |
Cash and cash equivalents—end of period | 49,615,000 | 41,754,000 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes | 58,641,000 | 63,909,000 |
Cash paid for interest | $ 10,327,000 | $ 7,068,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 04, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 March 4, 2023 and September 3, 2022, results of operations for the thirteen and twenty-six weeks ended March 4, 2023 and February 26, 2022, and cash flows for the twenty-six weeks ended March 4, 2023 and February 26, 2022. 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 (the “Exchange Act”), for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. The unaudited Condensed Consolidated Financial Statements and these Notes to 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 March 4, 2023 and February 26, 2022 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 and has invested in improved warehouse automation to mitigate the effects of labor inflation. The Company has also placed a larger emphasis on category management and has implemented a category line review process intended to reduce costs and streamline operational efficiencies in the supply chain. This includes a renewed focus on improved product assortment, supplier portfolio, and overall cost position. 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 Standards 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 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 disclosures within its 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 | 6 Months Ended |
Mar. 04, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 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 $7,842 and $7,198 as of March 4, 2023 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 $29,815 and $25,274 as of March 4, 2023 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 net sales, are recorded in Prepaid expenses and other current assets in the unaudited Condensed Consolidated Balance Sheets and were $2,087 and $2,210 as of March 4, 2023 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 not have material contract assets or liabilities as of March 4, 2023 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 (“MRO”) products and services. The Company serves a large number of customers of various types and in diverse industries, which are subject to different economic and industry factors. The Company’s presentation of net sales by customer end-market, customer type and geography 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 revenue by customer end-market for the thirteen- and twenty-six-week periods ended March 4, 2023 and February 26, 2022: Thirteen Weeks Ended Twenty-Six Weeks Ended March 4, 2023 February 26, 2022 (1) March 4, 2023 February 26, 2022 (1) Manufacturing Heavy 49 % 49 % 49 % 49 % Manufacturing Light 20 % 21 % 20 % 21 % Public Sector 8 % 7 % 8 % 7 % Retail/Wholesale 7 % 8 % 7 % 8 % Commercial Services 4 % 4 % 4 % 4 % Other (2) 12 % 11 % 12 % 11 % Total 100 % 100 % 100 % 100 % (1) Includes the effect of a prior year period reclassification of end-markets in fiscal year 2022. (2) The Other category includes individual customer and small business net sales not assigned to a specific industry classification. The Company groups customers into three categories by type of customer: national account, public sector and core and other. National account customers are Fortune 1000 companies, large privately held companies, and international companies primarily doing business in North America. Public sector customers are governments and their instrumentalities such as federal agencies, state governments, and public sector healthcare providers. Federal government customers include the United States Marine Corps, the United States Coast Guard, the United States Postal Service, the United States General Services Administration, the United States Department of Defense, the United States Department of Energy, large and small military bases, Veterans Affairs hospitals, and correctional facilities. The Company has individual state and local contracts and has also been awarded partnerships with several state co-operatives. Core and other customers are those customers that are not national account customers or public sector customers. The following table presents the Company’s percentage of revenue by customer type for the thirteen- and twenty-six-week periods ended March 4, 2023 and February 26, 2022: Thirteen Weeks Ended Twenty-Six Weeks Ended March 4, 2023 February 26, 2022 March 4, 2023 February 26, 2022 National Account Customers 38 % 37 % 38 % 37 % Public Sector Customers 8 % 7 % 8 % 7 % Core and Other Customers 54 % 56 % 54 % 56 % Total 100 % 100 % 100 % 100 % The Company’s revenue originating from the following geographic areas were as follows for the thirteen- and twenty-six-week periods ended March 4, 2023 and February 26, 2022: Thirteen Weeks Ended Twenty-Six Weeks Ended March 4, 2023 February 26, 2022 March 4, 2023 February 26, 2022 United States 95 % 95 % 95 % 94 % Mexico 2 % 2 % 2 % 3 % Canada 1 % 1 % 2 % 1 % North America 98 % 98 % 99 % 98 % Other foreign countries 2 % 2 % 1 % 2 % Total 100 % 100 % 100 % 100 % |
Net Income per Share
Net Income per Share | 6 Months Ended |
Mar. 04, 2023 | |
Earnings Per Share [Abstract] | |
Net Income per Share | 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- and twenty-six-week periods ended March 4, 2023 and February 26, 2022 . Thirteen Weeks Ended Twenty-Six Weeks Ended March 4, February 26, March 4, February 26, Numerator: Net income attributable to MSC Industrial as reported $ 79,140 $ 69,931 $ 160,454 $ 135,998 Denominator: Weighted-average shares outstanding for basic net income per share 55,880 55,799 55,885 55,664 Effect of dilutive securities 121 172 189 281 Weighted-average shares outstanding for diluted net income per share 56,001 55,971 56,074 55,945 Net income per share: Basic $ 1.42 $ 1.25 $ 2.87 $ 2.44 Diluted $ 1.41 $ 1.25 $ 2.86 $ 2.43 Potentially dilutive securities 215 364 225 379 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 | 6 Months Ended |
Mar. 04, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based CompensationThe Company accounts for all stock-based payments in accordance with Accounting Standards Codification (“ASC”) Topic 718, “Compensation—Stock Compensation,” as amended. Stock-based compensation expense, net included in Operating expenses for the thirteen- and twenty-six-week periods ended March 4, 2023 and February 26, 2022 was as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended March 4, February 26, March 4, February 26, Stock options $ — $ 217 $ 101 $ 805 Restricted stock units 3,957 3,306 7,668 8,009 Performance share units 945 889 2,040 1,197 Associate Stock Purchase Plan 77 88 160 178 Total 4,979 4,500 9,969 10,189 Deferred income tax benefit (1,259) (1,139) (2,492) (2,476) Stock-based compensation expense, net $ 3,720 $ 3,361 $ 7,477 $ 7,713 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 twenty-six-week period ended March 4, 2023 is as follows: Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in Aggregate Intrinsic Value Outstanding on September 3, 2022 614 $ 78.96 Granted — — Exercised (171) 74.57 Canceled/Forfeited/Expired (25) 80.40 Outstanding on March 4, 2023 418 $ 80.67 2.0 $ 2,201 Exercisable on March 4, 2023 418 $ 80.67 2.0 $ 2,201 The aggregate 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 twenty-six-week periods ended March 4, 2023 and February 26, 2022 was $1,563 and $3,351, respectively. The unrecognized stock‑based compensation cost related to stock option expense was fully amortized at March 4, 2023. 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”) and the MSC Industrial Direct Co., Inc. 2023 Omnibus Incentive Plan (the “2023 Omnibus Incentive Plan”) (based on target award amounts) for the twenty-six-week period ended March 4, 2023: 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 (1) 83.75 Non-vested PSUs at March 4, 2023 (2) 116 $ 81.84 (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 2020 through fiscal year 2022 financial results. (2) Excludes approximately 10 shares of accrued incremental dividend equivalent rights on outstanding PSUs granted under the 2015 Omnibus Incentive Plan and the 2023 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 March 4, 2023 was $6,702 and is expected to be recognized over a weighted-average period of 1.9 years. Restricted Stock Units A summary of the Company’s non-vested restricted stock unit (“RSU”) award activity under the 2015 Omnibus Incentive Plan and the 2023 Omnibus Incentive Plan for the twenty-six-week period ended March 4, 2023 is as follows: Shares Weighted-Average Grant Date Fair Value Non-vested RSUs at September 3, 2022 448 $ 79.71 Granted 215 82.23 Vested (162) 79.34 Canceled/Forfeited (8) 81.18 Non-vested RSUs at March 4, 2023 (1) 493 $ 80.90 (1) Excludes approximately 42 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the 2015 Omnibus Incentive Plan and the 2023 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 |
Fair Value
Fair Value | 6 Months Ended |
Mar. 04, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 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 March 4, 2023 and February 26, 2022. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Mar. 04, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivables at March 4, 2023 and September 3, 2022 consisted of the following: March 4, September 3, Accounts receivable $ 435,315 $ 708,379 Less: allowance for credit losses 22,628 20,771 Accounts receivable, net $ 412,687 $ 687,608 On December 19, 2022, the Company entered into a Receivables Purchase Agreement (the “RPA”), by and among MSC A/R Holding Co., LLC, a wholly owned subsidiary of the Company (the “Receivables Subsidiary”), as seller, the Company, as master servicer, certain purchasers from time to time party thereto (collectively, the “Purchasers”), and Wells Fargo Bank, National Association, as administrative agent (the “Agent”). The RPA matures on December 19, 2025 and is subject to customary termination events related to transactions of this type. Additionally, the Receivables Subsidiary also entered into a Receivables Sale Agreement, dated as of December 19, 2022, by and between the Receivables Subsidiary, as buyer and Sid Tool Co., Inc., a wholly owned subsidiary of the Company, as originator. Under the RPA, the Receivables Subsidiary may sell receivables to the Purchasers in amounts up to $300,000. The receivables will be sold to the Purchasers in consideration for the Purchasers making payments of cash, which is referred to as “capital” for purposes of the RPA, to the Receivables Subsidiary in accordance with the terms of the RPA. The Receivables Subsidiary may sell receivables to the Purchasers so long as certain conditions are satisfied, including that, at any date of determination, the aggregate capital paid to the Receivables Subsidiary does not exceed a “capital coverage amount”, equal to an adjusted net receivables pool balance minus a required reserve. Each Purchaser’s share of capital accrues yield at one-month Term SOFR (as defined in the RPA) plus a margin. The parties intend that the conveyance of receivables to the Agent, for the ratable benefit of the Purchasers, will constitute a purchase and sale of receivables and not a pledge for security. The Receivables Subsidiary has guaranteed to each Purchaser and the Agent the prompt payment of sold receivables, and, to secure the prompt payment and performance of such guaranteed obligations, the Receivables Subsidiary has granted a security interest to the Agent, for the benefit of the Purchasers, in all assets of the Receivables Subsidiary. The assets of the Receivables Subsidiary are not available to pay the Company’s creditors or any affiliate thereof. In the capacity as master servicer under the RPA, the Company is responsible for administering and collecting receivables and has made customary representations, warranties, covenants and indemnities. The proceeds of the RPA are classified as operating activities in the Condensed Consolidated Statement of Cash Flows for the twenty-six weeks ended March 4, 2023 and were used to pay down balances on the Amended Revolving Credit Facility (as defined below). Cash received from collections of sold receivables is used by the Receivables Subsidiary to fund additional purchases of receivables on a revolving basis or to return all or any portion of outstanding capital of the Purchasers. Subsequent collections on the pledged receivables, which have not been sold, will be classified as operating cash flows at the time of collection. As of March 4, 2023, the amount sold to the Purchasers was $300,000 which was derecognized from the Condensed Consolidated Balance Sheet as of that date. As collateral against sold receivables, the Receivables Subsidiary maintains a certain level of unsold receivables, which was $327,114 as of March 4, 2023. Total receivables sold under the RPA were $543,124 as of March 4, 2023. Total cash collections under the RPA were $243,121 as of March 4, 2023. The fair value of the sold receivables approximated book value due to their credit quality and short-term nature, and as a result, no gain or loss on sale of receivables was recorded. The receivables sold incur fees due to the Purchasers and $3,323 of such fees were recorded within Other (expense) income, net in the Condensed Consolidated Statements of Income for the thirteen weeks ended March 4, 2023. The financial covenants under the RPA are substantially the same as those under the Credit Facilities, the Private Placement Debt and the Shelf Facility Agreements (each, as defined below). See Note 8, “Debt” for more information about these financial covenants. |
Business Combinations
Business Combinations | 6 Months Ended |
Mar. 04, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations In January 2023, the Company acquired certain assets and assumed certain liabilities of Buckeye Industrial Supply Co. (“Buckeye”), an Ohio-based metalworking distributor, and Tru-Edge Grinding, Inc. (“Tru-Edge”), an Ohio-based custom tool manufacturer, for aggregate consideration of $22,740, which includes cash paid of $20,500, the fair value of contingent consideration to be paid out of $2,294, and a post-closing working capital adjustment in the amount of $54 received from the sellers that is subject to finalization. Total cash consideration funded by the Company came from available cash resources. The fair value of the contingent consideration to be paid out represents the present value of the $3,500 contingent consideration as of the acquisition date based on a probability-weighted fair value measurement. Buckeye primarily serves the metalworking needs of large manufacturers. MSC Industrial plans to build on Buckeye’s technical, high-touch relationships and value-added services by offering customers access to its extensive product portfolio to support customers’ full metalworking and MRO needs. Tru-Edge brings new capabilities to MSC Industrial, including the design and manufacture of parts from scratch with a strong focus in the automotive and medical markets. The Company expects to drive revenue growth in its existing Midwest manufacturing customer base by leveraging the services provided by Tru-Edge. The Company believes the technical expertise and value-added services provided by Tru-Edge will support its effort to drive cost savings for its customers. This acquisition was accounted for as a single business acquisition pursuant to ASC Topic 805, “Business Combinations” (“ASC Topic 805”). As required by ASC Topic 805, the Company allocated the consideration to assets and liabilities based on their estimated fair value at the acquisition date. The Company’s purchase accounting as of March 4, 2023 is preliminary primarily due to the pending final valuation and an expected working capital adjustment to the purchase price. The following table summarizes the amounts of identified assets acquired and liabilities assumed based on the estimated fair value at the acquisition date: Inventories $ 1,019 Accounts receivable 2,745 Prepaid expenses and other current assets 27 Identifiable intangibles 10,600 Goodwill 8,177 Property, plant and equipment 1,291 Total assets acquired $ 23,859 Accounts payable 1,090 Accrued liabilities 29 Total liabilities assumed $ 1,119 Total purchase price consideration $ 22,740 Acquired identifiable intangible assets with a fair value of $10,600 consisted of customer relationships of $9,500 with a useful life of 10 years and trade names of $1,100 with useful lives of five years and 20 years for Buckeye and Tru-Edge, respectively. The goodwill amount of $8,177 represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The primary items that generated the goodwill were the premiums paid by the Company for the right to control the business acquired and the benefit from adding a highly complementary provider of metalworking tools and supplies, as well as the design and manufacturing of parts. This goodwill will not be amortized and will be included in the Company’s periodic test for impairment at least annually. The goodwill is deductible for income tax purposes. The amount of combined revenue and income before provision for income taxes from Buckeye and Tru-Edge included in the Company’s unaudited Condensed Consolidated Statements of Income for the thirteen- and twenty-six-week periods ended March 4, 2023 was $4,540 and $201, respectively. In addition, for the thirteen- and twenty-six-week periods ended March 4, 2023, the Company incurred non-recurring transaction and integration costs relating to the acquisition totaling $244 and $341, respectively, which are included in Operating expenses in the Company’s unaudited Condensed Consolidated Statements of Income. |
Debt
Debt | 6 Months Ended |
Mar. 04, 2023 | |
Debt and Lease Obligation [Abstract] | |
Debt | Debt Debt at March 4, 2023 and September 3, 2022 consisted of the following: March 4, September 3, Amended Revolving Credit Facility $ 50,000 $ 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 2.40% Series 2019A Notes, due March 5, 2024 (1) 50,000 50,000 Financing arrangements 531 88 Obligations under finance leases 640 1,180 Less: unamortized debt issuance costs (1,222) (1,426) Total debt, including obligations under finance leases $ 549,699 $ 794,592 Less: current portion (275,758) (2) (325,680) (3) Total long-term debt, including obligations under finance leases $ 273,941 $ 468,912 (1) Represents private placement debt issued under the Shelf Facility Agreements. (2) Consists of $200,000 from the Uncommitted Credit Facilities (as defined below), $75,000 from the 2.65% Senior Notes, Series A, due July 28, 2023, $531 from financing arrangements , $605 from obligations under finance leases and net of unamortized debt issuance costs of $378 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 March 4, 2023 and September 3, 2022. Uncommitted Credit Facilities During fiscal year 2023, the Company extended all three of its uncommitted credit facilities. These facilities (collectively, the “Uncommitted Credit Facilities” and, together with the Amended Revolving Credit Facility, the “Credit Facilities”) total $203,000 in aggregate maximum uncommitted availability, under which $200,000 was outstanding at both March 4, 2023 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. The interest rate on the Uncommitted Credit Facilities is based on the Secured Overnight Financing Rate. 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 twenty-six-week period ended March 4, 2023 , the Company borrowed an aggregate $208,000 and repaid an aggregate $403,000 under the Credit Facilities. As of March 4, 2023 and September 3, 2022, the weighted-average interest rates on borrowings under the Credit Facilities were 5.39% 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 “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 March 4, 2023, $50,000 aggregate principal amount of 2.40% Series 2019A Notes, due March 5, 2024, was outstanding under notes issued in private placements pursuant to the Shelf Facility Agreements. In January 2023 the Company paid $50,000 to satisfy its obligation on the 3.04% Senior Notes, due January 12, 2023 associated with the Prudential Note Purchase Agreement. 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 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Mar. 04, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Common Stock Repurchases and Treasury Stock On June 29, 2021, the Board of Directors of the Company (the “Board”) 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 March 4, 2023, the maximum number of shares of Class A Common Stock that may yet be repurchased under the Share Repurchase Program was 4,369 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 Exchange Act. During the thirteen- and twenty-six-week periods ended March 4, 2023 , the Company repurchased 152 shares and 385 shares, respectively, of Class A Common Stock for $12,468 and $31,007, respectively . From these totals, 150 shares and 331 shares, respectively, were immediately retired and 2 shares and 54 shares, respectively, 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- and twenty-six-week periods ended March 4, 2023. During the thirteen- and twenty-six-week periods ended February 26, 2022 , the Company repurchased 4 shares and 57 shares, respectively, of Class A Common Stock for $254 and $4,813, 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- and twenty-six-week periods ended February 26, 2022. The Company reissued 17 shares and 31 shares of treasury stock during the thirteen- and twenty-six-week periods ended March 4, 2023, respectively, and reissued 16 shares and 30 shares of treasury stock during the thirteen- and twenty-six-week periods ended February 26, 2022, respectively, 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 $1.58 per share totaling $88,313 for the twenty-six weeks ended March 4, 2023. For the twenty-six weeks ended February 26, 2022, the Company paid aggregate regular cash dividends of $1.50 per share totaling $83,586. On March 22, 2023, the Board declared a regular cash dividend of $0.79 per share, payable on April 25, 2023, to shareholders of record at the close of business on April 11, 2023. The dividend is expected to result in aggregate payments of $44,170, based on the number of shares outstanding at March 15, 2023. Reclassification Proposal On January 31, 2023, the Board received a proposal (the “Proposal”) from the Company’s controlling shareholders, the Jacobson/Gershwind family, to exchange each of their shares of Class B Common Stock for 1.35 shares of Class A Common Stock, reclassify the Class B Common Stock and the Class A Common Stock into a single class of common stock and eliminate the current dual-class share structure. The Board has formed a Special Committee composed entirely of independent directors to evaluate the Proposal, which will be advised by independent financial and legal advisors. Under the terms of the Proposal, any definitive agreement would first require approval by the Special Committee |
Restructuring and Other Costs
Restructuring and Other Costs | 6 Months Ended |
Mar. 04, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs | Restructuring and Other Costs Optimization of Company Operations and Profitability Improvement During fiscal years 2022 and 2023, 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- and twenty-six-week periods ended March 4, 2023 and February 26, 2022: Thirteen Weeks Ended Twenty-Six Weeks Ended March 4, February 26, March 4, February 26, Consulting-related costs $ 1,540 $ 2,520 $ 3,115 $ 2,520 Associate severance and separation costs 243 517 762 4,032 Equity award acceleration costs associated with severance — — — 1,729 Other exit-related costs — 97 — 136 Total restructuring and other costs $ 1,783 $ 3,134 $ 3,877 $ 8,417 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 March 4, 2023. The following table summarizes activity related to liabilities associated with restructuring and other costs for the twenty-six-week period ended March 4, 2023: Consulting-related costs Associate severance and separation costs Total Balance at September 3, 2022 $ 840 $ 1,874 $ 2,714 Additions 3,115 762 3,877 Payments and other adjustments (2,195) (2,043) (4,238) Balance at March 4, 2023 $ 1,760 $ 593 $ 2,353 |
Product Warranties
Product Warranties | 6 Months Ended |
Mar. 04, 2023 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product WarrantiesThe 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 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- and twenty-six-week periods ended March 4, 2023 and February 26, 2022 was immaterial. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 04, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the twenty-six-week period ended March 4, 2023, there were no material changes in unrecognized tax benefits. The U.S. government enacted the CARES Act to provide certain relief as a result of the COVID-19 pandemic. The CARES Act provides tax relief, along with other stimulus measures, including the ERC, which allows for employers to claim a refundable tax credit against the employer share of Social Security tax equal to 50% of qualified wages paid to qualified employees between March 13, 2020 and December 31, 2020 and 70% of qualified wages paid to employees after December 31, 2020 through September 30, 2021. The ERC was designed to encourage businesses to keep employees on the payroll during the COVID-19 pandemic. During the thirteen-week period ended March 4, 2023, the Company received $6,096 related to ERC claims previously submitted. As there is no authoritative guidance under accounting principles generally accepted in the United States of America on accounting for government assistance to for-profit business entities, we account for the ERC by analogy to International Accounting Standard 20, Accounting for Government Grants and Disclosure of Government Assistance. Management determined the probability threshold has not been met for $5,127 of the funds received, and, as such, were recorded in Accrued expenses and other current liabilities in the unaudited Condensed Consolidated Balance Sheet as of March 4, 2023. 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. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Mar. 04, 2023 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | Legal ProceedingsIn 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 (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Mar. 04, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy | 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 (the “Exchange Act”), for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. |
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 March 4, 2023 and February 26, 2022 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. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards 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 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 disclosures within its 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”). |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Mar. 04, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule Of Disaggregation Of Revenue | The following table presents the Company’s percentage of revenue by customer end-market for the thirteen- and twenty-six-week periods ended March 4, 2023 and February 26, 2022: Thirteen Weeks Ended Twenty-Six Weeks Ended March 4, 2023 February 26, 2022 (1) March 4, 2023 February 26, 2022 (1) Manufacturing Heavy 49 % 49 % 49 % 49 % Manufacturing Light 20 % 21 % 20 % 21 % Public Sector 8 % 7 % 8 % 7 % Retail/Wholesale 7 % 8 % 7 % 8 % Commercial Services 4 % 4 % 4 % 4 % Other (2) 12 % 11 % 12 % 11 % Total 100 % 100 % 100 % 100 % (1) Includes the effect of a prior year period reclassification of end-markets in fiscal year 2022. (2) The Other category includes individual customer and small business net sales not assigned to a specific industry classification. The following table presents the Company’s percentage of revenue by customer type for the thirteen- and twenty-six-week periods ended March 4, 2023 and February 26, 2022: Thirteen Weeks Ended Twenty-Six Weeks Ended March 4, 2023 February 26, 2022 March 4, 2023 February 26, 2022 National Account Customers 38 % 37 % 38 % 37 % Public Sector Customers 8 % 7 % 8 % 7 % Core and Other Customers 54 % 56 % 54 % 56 % Total 100 % 100 % 100 % 100 % The Company’s revenue originating from the following geographic areas were as follows for the thirteen- and twenty-six-week periods ended March 4, 2023 and February 26, 2022: Thirteen Weeks Ended Twenty-Six Weeks Ended March 4, 2023 February 26, 2022 March 4, 2023 February 26, 2022 United States 95 % 95 % 95 % 94 % Mexico 2 % 2 % 2 % 3 % Canada 1 % 1 % 2 % 1 % North America 98 % 98 % 99 % 98 % Other foreign countries 2 % 2 % 1 % 2 % Total 100 % 100 % 100 % 100 % |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Mar. 04, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income per Common Share Under Treasury Stock Method | Thirteen Weeks Ended Twenty-Six Weeks Ended March 4, February 26, March 4, February 26, Numerator: Net income attributable to MSC Industrial as reported $ 79,140 $ 69,931 $ 160,454 $ 135,998 Denominator: Weighted-average shares outstanding for basic net income per share 55,880 55,799 55,885 55,664 Effect of dilutive securities 121 172 189 281 Weighted-average shares outstanding for diluted net income per share 56,001 55,971 56,074 55,945 Net income per share: Basic $ 1.42 $ 1.25 $ 2.87 $ 2.44 Diluted $ 1.41 $ 1.25 $ 2.86 $ 2.43 Potentially dilutive securities 215 364 225 379 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Mar. 04, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The Company accounts for all stock-based payments in accordance with Accounting Standards Codification (“ASC”) Topic 718, “Compensation—Stock Compensation,” as amended. Stock-based compensation expense, net included in Operating expenses for the thirteen- and twenty-six-week periods ended March 4, 2023 and February 26, 2022 was as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended March 4, February 26, March 4, February 26, Stock options $ — $ 217 $ 101 $ 805 Restricted stock units 3,957 3,306 7,668 8,009 Performance share units 945 889 2,040 1,197 Associate Stock Purchase Plan 77 88 160 178 Total 4,979 4,500 9,969 10,189 Deferred income tax benefit (1,259) (1,139) (2,492) (2,476) Stock-based compensation expense, net $ 3,720 $ 3,361 $ 7,477 $ 7,713 |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for the twenty-six-week period ended March 4, 2023 is as follows: Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in Aggregate Intrinsic Value Outstanding on September 3, 2022 614 $ 78.96 Granted — — Exercised (171) 74.57 Canceled/Forfeited/Expired (25) 80.40 Outstanding on March 4, 2023 418 $ 80.67 2.0 $ 2,201 Exercisable on March 4, 2023 418 $ 80.67 2.0 $ 2,201 |
Summary of Performance Share Unit Activity | 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”) and the MSC Industrial Direct Co., Inc. 2023 Omnibus Incentive Plan (the “2023 Omnibus Incentive Plan”) (based on target award amounts) for the twenty-six-week period ended March 4, 2023: 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 (1) 83.75 Non-vested PSUs at March 4, 2023 (2) 116 $ 81.84 (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 2020 through fiscal year 2022 financial results. (2) Excludes approximately 10 shares of accrued incremental dividend equivalent rights on outstanding PSUs granted under the 2015 Omnibus Incentive Plan and the 2023 Omnibus Incentive Plan. |
Summary of Non-Vested Restricted Stock Unit Award Activity | A summary of the Company’s non-vested restricted stock unit (“RSU”) award activity under the 2015 Omnibus Incentive Plan and the 2023 Omnibus Incentive Plan for the twenty-six-week period ended March 4, 2023 is as follows: Shares Weighted-Average Grant Date Fair Value Non-vested RSUs at September 3, 2022 448 $ 79.71 Granted 215 82.23 Vested (162) 79.34 Canceled/Forfeited (8) 81.18 Non-vested RSUs at March 4, 2023 (1) 493 $ 80.90 (1) Excludes approximately 42 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the 2015 Omnibus Incentive Plan and the 2023 Omnibus Incentive Plan. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Mar. 04, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivables at March 4, 2023 and September 3, 2022 consisted of the following: March 4, September 3, Accounts receivable $ 435,315 $ 708,379 Less: allowance for credit losses 22,628 20,771 Accounts receivable, net $ 412,687 $ 687,608 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Mar. 04, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the amounts of identified assets acquired and liabilities assumed based on the estimated fair value at the acquisition date: Inventories $ 1,019 Accounts receivable 2,745 Prepaid expenses and other current assets 27 Identifiable intangibles 10,600 Goodwill 8,177 Property, plant and equipment 1,291 Total assets acquired $ 23,859 Accounts payable 1,090 Accrued liabilities 29 Total liabilities assumed $ 1,119 Total purchase price consideration $ 22,740 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
May 28, 2022 | |
Debt and Lease Obligation [Abstract] | |
Schedule of Debt | Debt at March 4, 2023 and September 3, 2022 consisted of the following: March 4, September 3, Amended Revolving Credit Facility $ 50,000 $ 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 2.40% Series 2019A Notes, due March 5, 2024 (1) 50,000 50,000 Financing arrangements 531 88 Obligations under finance leases 640 1,180 Less: unamortized debt issuance costs (1,222) (1,426) Total debt, including obligations under finance leases $ 549,699 $ 794,592 Less: current portion (275,758) (2) (325,680) (3) Total long-term debt, including obligations under finance leases $ 273,941 $ 468,912 (1) Represents private placement debt issued under the Shelf Facility Agreements. (2) Consists of $200,000 from the Uncommitted Credit Facilities (as defined below), $75,000 from the 2.65% Senior Notes, Series A, due July 28, 2023, $531 from financing arrangements , $605 from obligations under finance leases and net of unamortized debt issuance costs of $378 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) | 6 Months Ended |
Mar. 04, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following table summarizes restructuring and other costs for the thirteen- and twenty-six-week periods ended March 4, 2023 and February 26, 2022: Thirteen Weeks Ended Twenty-Six Weeks Ended March 4, February 26, March 4, February 26, Consulting-related costs $ 1,540 $ 2,520 $ 3,115 $ 2,520 Associate severance and separation costs 243 517 762 4,032 Equity award acceleration costs associated with severance — — — 1,729 Other exit-related costs — 97 — 136 Total restructuring and other costs $ 1,783 $ 3,134 $ 3,877 $ 8,417 |
Summary of Restructuring Related Liabilities | The following table summarizes activity related to liabilities associated with restructuring and other costs for the twenty-six-week period ended March 4, 2023: Consulting-related costs Associate severance and separation costs Total Balance at September 3, 2022 $ 840 $ 1,874 $ 2,714 Additions 3,115 762 3,877 Payments and other adjustments (2,195) (2,043) (4,238) Balance at March 4, 2023 $ 1,760 $ 593 $ 2,353 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Mar. 04, 2023 USD ($) segment | Sep. 03, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Accrued sales returns | $ 7,842 | $ 7,198 |
Contract with customer, refund liability | 29,815 | 25,274 |
Prepaid sales incentives | 2,087 | 2,210 |
Contract liabilities | 0 | 0 |
Contract assets | 0 | $ 0 |
Performance obligation | $ 0 | |
Number of reportable segments | segment | 1 | |
Number of operating segments | segment | 1 | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Payment term | 1 year |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 04, 2023 | Feb. 26, 2022 | Mar. 04, 2023 | Feb. 26, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 961,632 | $ 862,522 | $ 1,919,377 | $ 1,711,069 |
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 100% | 100% | 100% | 100% |
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 100% | 100% | 100% | 100% |
Manufacturing Heavy | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 49% | 49% | 49% | 49% |
Manufacturing Light | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 20% | 21% | 20% | 21% |
Public Sector | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 8% | 7% | 8% | 7% |
Retail/Wholesale | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 7% | 8% | 7% | 8% |
Commercial Services | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 4% | 4% | 4% | 4% |
Other | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 12% | 11% | 12% | 11% |
National Account Customers | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 38% | 37% | 38% | 37% |
Public Sector Customers | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 8% | 7% | 8% | 7% |
Core and Other Customers | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 54% | 56% | 54% | 56% |
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 95% | 95% | 95% | 94% |
Mexico | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 2% | 2% | 2% | 3% |
Canada | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 1% | 1% | 2% | 1% |
North America | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 98% | 98% | 99% | 98% |
Other foreign countries | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 2% | 2% | 1% | 2% |
Net Income per Share - Narrativ
Net Income per Share - Narrative (Details) - $ / shares | Mar. 04, 2023 | Sep. 03, 2022 |
Class A Common Stock | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Class B Common Stock | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Net Income per Share - Computat
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 | 6 Months Ended | ||
Mar. 04, 2023 | Feb. 26, 2022 | Mar. 04, 2023 | Feb. 26, 2022 | |
Numerator: | ||||
Net income attributable to MSC Industrial as reported | $ 79,140 | $ 69,931 | $ 160,454 | $ 135,998 |
Denominator: | ||||
Weighted-average shares outstanding for basic net income per share | 55,880 | 55,799 | 55,885 | 55,664 |
Effect of dilutive securities (in shares) | 121 | 172 | 189 | 281 |
Weighted-average shares outstanding for diluted net income per share | 56,001 | 55,971 | 56,074 | 55,945 |
Net income per share: | ||||
Basic (in usd per share) | $ 1.42 | $ 1.25 | $ 2.87 | $ 2.44 |
Diluted (in usd per share) | $ 1.41 | $ 1.25 | $ 2.86 | $ 2.43 |
Potentially dilutive securities (in shares) | 215 | 364 | 225 | 379 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 04, 2023 | Feb. 26, 2022 | Mar. 04, 2023 | Feb. 26, 2022 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 4,979,000 | $ 4,500,000 | $ 9,969,000 | $ 10,189,000 |
Deferred income tax benefit | (1,259,000) | (1,139,000) | (2,492,000) | (2,476,000) |
Stock-based compensation expense, net | 3,720,000 | 3,361,000 | 7,477,000 | 7,713,000 |
Stock options | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 0 | 217,000 | 101,000 | 805,000 |
Restricted stock units | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 3,957,000 | 3,306,000 | 7,668,000 | 8,009,000 |
Performance share units | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 945,000 | 889,000 | 2,040,000 | 1,197,000 |
Associate Stock Purchase Plan | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 77,000 | $ 88,000 | $ 160,000 | $ 178,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Mar. 04, 2023 USD ($) $ / shares shares | |
Options | |
Beginning balance, (in shares) | shares | 614,000 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (171,000) |
Canceled/Forfeited/Expired (in shares) | shares | (25,000) |
Ending balance (in shares) | shares | 418,000 |
Exercisable (in shares) | shares | 418,000 |
Weighted-Average Exercise Price per Share | |
Beginning balance (in usd per share) | $ / shares | $ 78.96 |
Granted (in usd per share) | $ / shares | 0 |
Exercised (in usd per share) | $ / shares | 74.57 |
Canceled/Forfeited/Expired (in usd per share) | $ / shares | 80.40 |
Ending balance (in usd per share) | $ / shares | 80.67 |
Exercisable (in usd per share) | $ / shares | $ 80.67 |
Weighted-Average Remaining Contractual Term (in years) | |
Weighted-average remaining contractual term, outstanding (in years) | 2 years |
Weighted-average remaining contractual term, exercisable (in years) | 2 years |
Aggregate Intrinsic Value | |
Aggregate intrinsic value outstanding | $ | $ 2,201 |
Aggregate intrinsic value exercisable | $ | $ 2,201 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 04, 2023 | Feb. 26, 2022 | |
Stock options | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total intrinsic value of options exercised | $ 1,563 | $ 3,351 |
Performance share units | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Unrecognized share-based compensation cost | $ 6,702 | |
Unrecognized share-based compensation weighted average period | 1 year 10 months 24 days | |
Performance share units | Minimum | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vested shares, percentage of target award amount | 0% | |
Performance share units | Maximum | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vested shares, percentage of target award amount | 200% | |
Restricted stock units | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Unrecognized share-based compensation cost | $ 33,190 | |
Unrecognized share-based compensation weighted average period | 2 years 10 months 24 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Performance Share Unit Activity (Details) shares in Thousands | 6 Months Ended |
Mar. 04, 2023 $ / shares shares | |
Performance share units | |
Shares | |
Beginning balance (in shares) | 88 |
Granted (in shares) | 51 |
PSU adjustment (in shares) | 4 |
Vested (in shares) | (26) |
Canceled/Forfeited (in shares) | (1) |
Ending balance (in shares) | 116 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in usd per share) | $ / shares | $ 80.04 |
Granted (in usd per share) | $ / shares | 82.16 |
PSU adjustment (in usd per share) | $ / shares | 76.32 |
Vested (in usd per share) | $ / shares | 76.32 |
Canceled/Forfeited (in usd per share) | $ / shares | 83.75 |
Ending balance (in usd per share) | $ / shares | $ 81.84 |
Target allocation grant percentage | 116% |
Incremental Dividend Rights Performance Stock Units | |
Shares | |
Ending balance (in shares) | 10 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Non-Vested Restricted Stock Unit Award Activity (Details) shares in Thousands | 6 Months Ended |
Mar. 04, 2023 $ / shares shares | |
Restricted stock units | |
Shares | |
Beginning balance (in shares) | 448 |
Granted (in shares) | 215 |
Vested (in shares) | (162) |
Canceled/Forfeited (in shares) | (8) |
Ending balance (in shares) | 493 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in usd per share) | $ / shares | $ 79.71 |
Granted (in usd per share) | $ / shares | 82.23 |
Vested (in usd per share) | $ / shares | 79.34 |
Canceled/Forfeited (in usd per share) | $ / shares | 81.18 |
Ending balance (in usd per share) | $ / shares | $ 80.90 |
Incremental Dividend Rights, Restricted Stock Units | |
Shares | |
Ending balance (in shares) | 42 |
Fair Value (Details)
Fair Value (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 04, 2023 | Feb. 26, 2022 | Mar. 04, 2023 | Feb. 26, 2022 | |
Fair Value Disclosures [Abstract] | ||||
Fair value remeasurement of non-financial liabilities on non-recurring basis | $ 0 | $ 0 | $ 0 | $ 0 |
Fair value remeasurement of non-financial assets on non-recurring basis | $ 0 | $ 0 | $ 0 | $ 0 |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivables (Details) - USD ($) $ in Thousands | Mar. 04, 2023 | Sep. 03, 2022 |
Receivables [Abstract] | ||
Accounts receivable | $ 435,315 | $ 708,379 |
Less: allowance for credit losses | 22,628 | 20,771 |
Accounts receivable, net | $ 412,687 | $ 687,608 |
Accounts Receivable - Narrative
Accounts Receivable - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 04, 2023 | Dec. 19, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Accounts receivable, amount authorized for sale | $ 300,000 | |
Accounts receivable, sales transactions fees | $ 3,323 | |
Purchasers | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Accounts receivable, sale | 300,000 | |
Accounts receivable, collateral, unsold receivables, amount | 327,114 | |
Receivables Purchase Agreement | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Accounts receivable, sale | 543,124 | |
Proceeds from sale and collection of receivables | $ 243,121 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2023 | Mar. 04, 2023 | Mar. 04, 2023 | |
Buckeye and True Edge | |||
Business Acquisition [Line Items] | |||
Business acquisition purchase price | $ 22,740 | ||
Payments to acquire businesses, gross | 20,500 | ||
Business combination, contingent consideration, liability | 2,294 | ||
Present value of contingent consideration | 3,500 | ||
Business combination, net working capital adjustment | 54 | ||
Finite-lived intangible assets acquired | 10,600 | ||
Business acquisition, pro forma revenue | $ 4,540 | ||
Business acquisition, pro forma net income (loss) | $ 201 | ||
Business combination, integration related costs | $ 244 | $ 341 | |
Buckeye and True Edge | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 9,500 | ||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | ||
Buckeye and True Edge | Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 1,100 | ||
Buckeye | Trade Names | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 5 years | ||
True Edge | Trade Names | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 20 years |
Business Combinations - Assets
Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 04, 2023 | Jan. 31, 2023 | Sep. 03, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 718,179 | $ 710,130 | |
Buckeye and True Edge | |||
Business Acquisition [Line Items] | |||
Inventories | $ 1,019 | ||
Accounts receivable | 2,745 | ||
Prepaid expenses and other current assets | 27 | ||
Identifiable intangibles | 10,600 | ||
Goodwill | 8,177 | ||
Property, plant and equipment | 1,291 | ||
Total assets acquired | 23,859 | ||
Accounts payable | 1,090 | ||
Accrued liabilities | 29 | ||
Total liabilities assumed | 1,119 | ||
Total purchase price consideration | $ 22,740 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | Mar. 04, 2023 | Sep. 03, 2022 | Jul. 31, 2016 |
Debt Instrument [Line Items] | |||
Long-Term Note Payable | $ 4,750,000 | $ 4,750,000 | |
Financing arrangements | 531,000 | 88,000 | |
Obligations under finance leases | 640,000 | 1,180,000 | |
Less: unamortized debt issuance costs | (1,222,000) | (1,426,000) | |
Total debt, including obligations under finance leases | 549,699,000 | 794,592,000 | |
Less: current portion | (275,758,000) | (325,680,000) | |
Long-term debt including obligations under finance leases | 273,941,000 | 468,912,000 | |
Finance lease, liability, current | 605,000 | 996,000 | |
Unamortized debt issuance costs, current | 378,000 | 404,000 | |
Financing obligations, current | 88,000 | ||
Committed Bank Facility | |||
Debt Instrument [Line Items] | |||
Credit facility | 50,000,000 | 245,000,000 | |
Uncommitted Bank Facilities | |||
Debt Instrument [Line Items] | |||
Short-term debt | 200,000,000 | 200,000,000 | |
Senior Notes Series A | Private Placement Debt | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 75,000,000 | $ 75,000,000 | |
Interest rate | 2.65% | 2.65% | 2.65% |
Long-term debt, current maturities | $ 75,000 | ||
Financing obligations, current | $ 75,000 | ||
Senior Notes Series B | Private Placement Debt | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 100,000,000 | 100,000,000 | |
Interest rate | 2.90% | 2.90% | |
Senior Notes Due June 11, 2025 | Private Placement Debt | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 20,000,000 | 20,000,000 | |
Interest rate | 3.79% | 3.79% | |
Senior notes, Due March 5, 2027 | Private Placement Debt | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 50,000,000 | 50,000,000 | |
Interest rate | 2.60% | 2.60% | |
Senior notes due January 12, 2023 | Private Placement Debt | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 0 | $ 50,000,000 | |
Interest rate | 3.04% | 3.04% | |
Financing obligations, current | $ 50,000,000 | ||
Series 2019A notes, due March 5, 2024 | Private Placement Debt | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 50,000,000 | $ 50,000,000 | |
Interest rate | 2.40% |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facilities Narrative (Details) | 1 Months Ended | 6 Months Ended | ||||
Aug. 31, 2021 USD ($) | Mar. 04, 2023 USD ($) facility | Feb. 26, 2022 USD ($) | Sep. 03, 2022 USD ($) | Apr. 30, 2017 USD ($) | Jul. 31, 2016 USD ($) | |
Debt Instrument [Line Items] | ||||||
Number of credit facilities | facility | 3 | |||||
Proceeds from lines of credit | $ 208,000,000 | $ 184,000,000 | ||||
Committed Bank Facility | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding balance | $ 50,000,000 | $ 245,000,000 | ||||
Amended Uncommitted Credit Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, expiration term | 1 year | |||||
Line of credit facility, maximum amount outstanding during period | $ 203,000,000 | |||||
Outstanding balance | 200,000,000 | $ 200,000,000 | ||||
Proceeds from lines of credit | 208,000,000 | |||||
Repayment of loan facility | $ 403,000,000 | |||||
Line of credit facility, interest rate at period end | 5.39% | 3.42% | ||||
Amended Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 600,000,000 | |||||
Credit facility, expiration term | 5 years | |||||
Amended Revolving Credit Facility [Member] | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 50,000,000 | |||||
Outstanding balance | $ 5,269,000 | $ 5,269,000 | ||||
Amended Revolving Credit Facility [Member] | Committed Bank Facility | ||||||
Debt Instrument [Line Items] | ||||||
Available increase in amount borrowed | $ 300,000,000 | |||||
Senior Notes Series A | Private Placement Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 75,000,000 | |||||
Interest rate | 2.65% | 2.65% | 2.65% | |||
Senior Notes Series B | Private Placement Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 100,000,000 | |||||
Interest rate | 2.90% | 2.90% | ||||
Senior Notes Due June 11, 2025 | Private Placement Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 20,000,000 | |||||
Interest rate | 3.79% | 3.79% | ||||
Senior notes, Due March 5, 2027 | Private Placement Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 50,000,000 | |||||
Interest rate | 2.60% | 2.60% |
Debt - Private Placement Debt N
Debt - Private Placement Debt Narrative (Details) - Private Placement Debt - USD ($) | Mar. 04, 2023 | Sep. 03, 2022 | Jul. 31, 2016 |
Senior Notes Series A | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 75,000,000 | ||
Interest rate | 2.65% | 2.65% | 2.65% |
Senior Notes Series B | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 100,000,000 | ||
Interest rate | 2.90% | 2.90% | |
Senior Notes Due June 11, 2025 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 20,000,000 | ||
Interest rate | 3.79% | 3.79% | |
Senior notes, Due March 5, 2027 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 50,000,000 | ||
Interest rate | 2.60% | 2.60% |
Debt - Shelf Facility Agreement
Debt - Shelf Facility Agreements Narrative (Details) | 6 Months Ended | ||||
Jan. 31, 2023 USD ($) | Mar. 04, 2023 USD ($) | Feb. 26, 2022 USD ($) | Sep. 03, 2022 | Jan. 31, 2018 USD ($) | |
Line of Credit Facility [Line Items] | |||||
Repayments of senior debt | $ 50,000,000 | $ 0 | |||
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] | |||||
Interest rate | 3.04% | ||||
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% | ||||
Senior notes due January 12, 2023 | Private Placement Debt | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate | 3.04% | 3.04% | |||
Repayments of senior debt | $ 50,000,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Apr. 11, 2023 | Mar. 04, 2023 | Feb. 26, 2022 | Mar. 04, 2023 | Feb. 26, 2022 | Mar. 22, 2023 | Jan. 31, 2023 | Sep. 03, 2022 | Jun. 29, 2021 | |
Components Of Shareholders Equity [Line Items] | |||||||||
Repurchases of common stock | $ 12,468 | $ 31,007 | $ 4,813 | ||||||
Treasury stock, shares, retired | 150,000 | 331,000 | |||||||
Treasury stock, shares repurchased to satisfy tax withholding obligation | 2,000 | 54,000 | |||||||
Repurchase and retirement of common stock, Value | $ 25 | $ 55 | |||||||
Stock issued during period, shares, employee stock ownership plan | 17,000 | 16,000 | 31,000 | 30,000 | |||||
Common stock, dividends, per share, cash paid (in usd per share) | $ 1.58 | $ 1.50 | |||||||
Payments of dividends | $ 88,313 | $ 83,586 | |||||||
Forecast | |||||||||
Components Of Shareholders Equity [Line Items] | |||||||||
Dividend payable amount | $ 44,170 | ||||||||
Subsequent Event | |||||||||
Components Of Shareholders Equity [Line Items] | |||||||||
Dividends payable per share | $ 0.79 | ||||||||
Class A Common Stock | |||||||||
Components Of Shareholders Equity [Line Items] | |||||||||
Treasury stock, shares, acquired | 4,000 | 57,000 | |||||||
Stock repurchased during period, including held in treasury (in shares) | 152,000 | 385,000 | |||||||
Repurchases of common stock | $ 254 | $ 4,813 | |||||||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Class of warrant or right, number of securities called by each warrant or right | 1.35 | ||||||||
Class B Common Stock | |||||||||
Components Of Shareholders Equity [Line Items] | |||||||||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Share Repurchase Program | Class A Common Stock | |||||||||
Components Of Shareholders Equity [Line Items] | |||||||||
Number of shares authorized for repurchase | 5,000 | ||||||||
Maximum number of shares that can be repurchased | 4,369,000 | 4,369,000 |
Restructuring and Other Costs -
Restructuring and Other Costs - Schedule of Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 04, 2023 | Feb. 26, 2022 | Mar. 04, 2023 | Feb. 26, 2022 | |
Restructuring and Related Activities [Abstract] | ||||
Consulting-related costs | $ 1,540 | $ 2,520 | $ 3,115 | $ 2,520 |
Associate severance and separation costs | 243 | 517 | 762 | 4,032 |
Equity award acceleration costs associated with severance | 0 | 0 | 0 | 1,729 |
Other exit-related costs | 0 | 97 | 0 | 136 |
Total restructuring and other costs | $ 1,783 | $ 3,134 | $ 3,877 | $ 8,417 |
Restructuring and Other Costs_2
Restructuring and Other Costs (Summary Of Restructuring Related Liabilities) (Details) $ in Thousands | 6 Months Ended |
Mar. 04, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 2,714 |
Additions | 3,877 |
Payments and other adjustments | (4,238) |
Ending balance | 2,353 |
Consulting-related costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 840 |
Additions | 3,115 |
Payments and other adjustments | (2,195) |
Ending balance | 1,760 |
Associate severance and separation costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 1,874 |
Additions | 762 |
Payments and other adjustments | (2,043) |
Ending balance | $ 593 |
Product Warranties (Details)
Product Warranties (Details) | 6 Months Ended |
Mar. 04, 2023 | |
Minimum | |
Product warranties with original equipment manufacturers | 30 days |
Maximum | |
Warranty period | 1 year |
Product warranties with original equipment manufacturers | 90 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 04, 2023 | Mar. 04, 2023 | Feb. 26, 2022 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits, period increase (decrease) | $ 0 | |||
Employee retention credit, CARES act | $ 6,096,000 | |||
Liability for funds received but probably threshold not met | $ 5,127,000 | $ 5,127,000 | ||
Deferred payroll tax, CARES act | $ 18,887,000 | |||
Effective tax rate | 25% | 24.30% |