Shareholders' Equity

12 Months Ended

Sep. 01, 2012

Shareholders' Equity [Abstract]

Shareholders' Equity

10. SHAREHOLDERS' EQUITY

Treasury Stock Purchases

During fiscal 1999, the Board of Directors established the MSC Stock Repurchase Plan (the "Plan"). On October 21, 2011, the Board of Directors reaffirmed and replenished the Plan so that the total number of shares of Class A common stock authorized for future repurchase was increased to 5,000 shares. As of September 1, 2012, the maximum number of shares that may yet be repurchased under the Plan was 4,384 shares. The Plan allows the Company to repurchase shares at any time and in any increments it deems appropriate in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. During fiscal 2012 and fiscal 2011, the Company repurchased 671 shares and 1,248 shares, respectively, of its Class A common stock for $48,098 and $69,279, respectively. The Company accounts for treasury stock under the cost method, using the first-in, first-out flow assumption, and include treasury stock as a component of stockholders' equity in the accompanying consolidated financial statements.

The Company reissued approximately 52 and 53 shares of treasury stock during fiscal 2012 and fiscal 2011, respectively, to fund the Associate Stock Purchase Plan (Note 11).

Common Stock

Each holder of the Company's Class A common stock is entitled to one vote for each share held of record on the applicable record date on all matters presented to a vote of shareholders, including the election of directors. The holders of Class B common stock are entitled to ten votes per share on the applicable record date and are entitled to vote, together with the holders of the Class A common stock, on all matters which are subject to shareholder approval. Holders of Class A common stock and Class B common stock have no cumulative voting rights or preemptive rights to purchase or subscribe for any stock or other securities and there are no redemption or sinking fund provisions with respect to such stock.

The holders of the Company's Class B common stock have the right to convert their shares of Class B common stock into shares of Class A common stock at their election and on a one-to-one basis, and all shares of Class B common stock convert into shares of Class A common stock on a one to-one basis upon the sale or transfer of such shares of Class B common stock to any person who is not a member of the Jacobson or Gershwind families or any trust not established principally for members of the Jacobson or Gershwind families or is not an executor, administrator or personal representative of an estate of a member of the Jacobson or Gershwind families.

Preferred Stock

The Company has authorized 5,000 shares of preferred stock. The Company's Board of Directors has the authority to issue shares of preferred stock. Shares of preferred stock have priority over the Company's Class A common stock and Class B common stock with respect to dividend or liquidation rights, or both. As of September 1, 2012, there were no shares of preferred stock issued or outstanding.

Cash Dividend

On July 10, 2003, the Board of Directors instituted a policy of regular quarterly cash dividends to shareholders. This policy is reviewed regularly by the Board of Directors.

On October 24, 2012, the Board of Directors declared a quarterly cash dividend of $0.30 per share payable on November 21, 2012 to shareholders of record at the close of business on November 7, 2012. The dividend will result in a payout of approximately $18,826, based on the number of shares outstanding at October 24, 2012.