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Revenue
 9 Months Ended
Jun. 03, 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, which is determined to occur when the customer obtains control of the products, and invoicing occurs at approximately the same point in time. 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 $8,336 and $7,198 as of June 3, 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 $29,873 and $25,274 as of June 3, 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 $1,753 and $2,210 as of June 3, 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 June 3, 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 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 thirty-nine-week periods ended June 3, 2023 and May 28, 2022:
Thirteen Weeks Ended Thirty-Nine Weeks Ended
June 3, 2023
May 28, 2022 (1)
June 3, 2023
May 28, 2022 (1)
Manufacturing Heavy46 %49 %48 %49 %
Manufacturing Light20 %21 %20 %21 %
Public Sector11 %7 %9 %7 %
Retail/Wholesale7 %7 %7 %8 %
Commercial Services4 %4 %4 %4 %
Other (2)
12 %12 %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, as well as contracts through 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 thirty-nine-week periods ended June 3, 2023 and May 28, 2022:
Thirteen Weeks EndedThirty-Nine Weeks Ended
June 3, 2023May 28, 2022June 3, 2023May 28, 2022
National Account Customers37 %38 %38 %38 %
Public Sector Customers 11 %7 %9 %7 %
Core and Other Customers 52 %55 %53 %55 %
Total100 %100 %100 %100 %
The Company’s revenue originating from the following geographic areas were as follows for the thirteen- and thirty-nine-week periods ended June 3, 2023 and May 28, 2022:
Thirteen Weeks EndedThirty-Nine Weeks Ended
June 3, 2023May 28, 2022June 3, 2023May 28, 2022
United States95 %95 %95 %95 %
Mexico2 %2 %2 %2 %
Canada2 %1 %2 %1 %
North America 99 %98 %99 %98 %
Other foreign countries1 %2 %1 %2 %
Total 100 %100 %100 %100 %