Stock-Based Compensation (Tables)

6 Months Ended

Mar. 02, 2024

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 (“ASC”) Topic 718, “Compensation—Stock Compensation,” as amended. Stock-based compensation expense included in Operating expenses for the thirteen- and twenty-six-week periods ended March 2, 2024 and March 4, 2023 was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	March 2, 2024		March 4, 2023		March 2, 2024		March 4, 2023
Stock options	$	—	$	—	$	—	$	101
Restricted stock units (1)	3,777		3,957		8,052		7,668
Performance share units (1)	832		945		1,653		2,040
Associate Stock Purchase Plan	79		77		184		160
Stock-based compensation expense	4,688		4,979		9,889		9,969
Deferred income tax benefit	(1,079)		(1,259)		(2,343)		(2,492)
Stock-based compensation expense, net	$	3,609	$	3,720	$	7,546	$	7,477

(1)Includes equity award acceleration costs associated with associate severance and separation, which are included in Restructuring and other costs in the unaudited Condensed Consolidated Statements of Income for the thirteen- and twenty-six-week periods ended March 2, 2024. See Note 10, “Restructuring and Other Costs” for additional information.

Summary of Stock Option Activity

A summary of the Company’s stock option activity for the twenty-six-week period ended March 2, 2024 is as follows:

	Shares	Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding on September 2, 2023	218	$	81.60
Granted	—	—
Exercised	(103)	80.25
Canceled/Forfeited/Expired	—	—
Outstanding on March 2, 2024	115	$	82.81	1.5	$	2,006
Exercisable on March 2, 2024	115	$	82.81	1.5	$	2,006

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 twenty-six-week period ended March 2, 2024:

	Shares	Weighted-Average Grant Date Fair Value
Non-vested PSUs at September 2, 2023	112	$	81.81
Granted	45	97.78
PSU adjustment (1)	23	74.79
Vested	(46)	74.79
Canceled/Forfeited	(2)	84.31
Non-vested PSUs at March 2, 2024 (2)	132	$	88.39

(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 200% of its target based on fiscal year 2021 through fiscal year 2023 financial results.

(2)Excludes approximately 6 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 twenty-six-week period ended March 2, 2024 is as follows:

	Shares	Weighted-Average Grant Date Fair Value
Non-vested RSUs at September 2, 2023	467	$	80.98
Granted	191	98.13
Vested	(186)	80.52
Canceled/Forfeited	(17)	86.15
Non-vested RSUs at March 2, 2024 (1)	455	$	88.19

(1)Excludes approximately 28 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the 2015 Omnibus Incentive Plan and the 2023 Omnibus Incentive Plan.