Net Income Per Share

12 Months Ended

Sep. 02, 2023

NET INCOME PER SHARE

Basic 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 fiscal years 2023, 2022 and 2021:


	For the Fiscal Years Ended
	September 2, 2023		September 3, 2022		August 28, 2021
	(52 weeks)		(53 weeks)		(52 weeks)

Numerator:
Net income attributable to MSC Industrial as reported	$	343,233	$	339,786	$	216,907

Denominator:
Weighted-average shares outstanding for basic net income per share	55,918		55,777		55,737
Effect of dilutive securities	292		268		356
Weighted-average shares outstanding for diluted net income per share	56,210		56,045		56,093
Net income per share:
Basic	$	6.14	$	6.09	$	3.89
Diluted	$	6.11	$	6.06	$	3.87

Potentially dilutive securities	—		400		314

Potentially dilutive securities attributable to outstanding share-based awards 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.