Net Income per Share

6 Months Ended

Mar. 04, 2023

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, 2023		February 26, 2022		March 4, 2023		February 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	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.