Stock-Based Compensation (Tables)

9 Months Ended

Jun. 03, 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 Topic 718, “Compensation—Stock Compensation,” as amended. Stock-based compensation expense, net included in Operating expenses for the thirteen- and thirty-nine-week periods ended June 3, 2023 and May 28, 2022 was as follows:

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	June 3, 2023		May 28, 2022		June 3, 2023		May 28, 2022
Stock options	$	—	$	214	$	101	$	1,019
Restricted stock units (1)	3,827		3,212		11,495		11,221
Performance share units (1)	760		873		2,800		2,070
Associate Stock Purchase Plan	68		71		228		249
Total	4,655		4,370		14,624		14,559
Deferred income tax benefit	(1,150)		(1,120)		(3,641)		(3,596)
Stock-based compensation expense, net	$	3,505	$	3,250	$	10,983	$	10,963

(1)Includes equity award acceleration costs associated with associate severance and separation.

Summary of Stock Option Activity

A summary of the Company’s stock option activity for the thirty-nine-week period ended June 3, 2023 is as follows:

	Options	Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding on September 3, 2022	614	$	78.96
Granted	—	—
Exercised	(296)	76.37
Canceled/Forfeited/Expired	(25)	80.40
Outstanding on June 3, 2023	293	$	81.46	1.8	$	3,535
Exercisable on June 3, 2023	293	$	81.46	1.8	$	3,535

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 thirty-nine-week period ended June 3, 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	(3)	82.95
Non-vested PSUs at June 3, 2023 (2)	114	$	81.83

(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 11 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 thirty-nine-week period ended June 3, 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	(164)	79.38
Canceled/Forfeited	(16)	81.09
Non-vested RSUs at June 3, 2023 (1)	483	$	80.89

(1)Excludes approximately 46 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the 2015 Omnibus Incentive Plan and the 2023 Omnibus Incentive Plan.