Net Income per Share

6 Months Ended

Mar. 02, 2024

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. In the first quarter of fiscal year 2024, all Class B Common Stock was reclassified, exchanged and converted into Class A Common Stock in connection with the Reclassification. See Note 9, “Shareholders’ Equity” for additional information. 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 2, 2024 and March 4, 2023:


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	March 2, 2024		March 4, 2023		March 2, 2024		March 4, 2023
Numerator:
Net income attributable to MSC Industrial, as reported	$	61,847	$	79,140	$	131,197	$	160,454
Denominator:
Weighted-average shares outstanding for basic net income per share	56,325		55,880		56,377		55,885
Effect of dilutive securities	142		121		218		189
Weighted-average shares outstanding for diluted net income per share	56,467		56,001		56,595		56,074
Net income per share:
Basic	$	1.10	$	1.42	$	2.33	$	2.87
Diluted	$	1.10	$	1.41	$	2.32	$	2.86

Potentially dilutive securities	15		215		8		225

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.