Shareholders' Equity

3 Months Ended

Dec. 03, 2022

Shareholders' Equity [Abstract]

Shareholders' Equity

Note 7. Shareholders’ Equity

Common Stock Repurchases and Treasury Stock

On June 29, 2021, the Company’s Board of Directors terminated the MSC Stock Repurchase Plan, which was established during fiscal year 1999, and authorized a new share repurchase program (the “Share Repurchase Program”) to purchase up to 5,000 shares of Class A Common Stock. There is no expiration date for the Share Repurchase Program. As of December 3, 2022, the maximum number of shares of Class A Common Stock that may yet be repurchased under the Share Repurchase Program was 4,519 shares. The Share Repurchase Program 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 the thirteen-week period ended December 3, 2022, the Company repurchased 233 shares of Class A Common Stock for $18,539. From this total, 181 shares were immediately retired and 52 shares were repurchased by the Company to satisfy the Company’s associates’ tax withholding liability associated with its stock-based compensation program and are reflected at cost as treasury stock in the unaudited Condensed Consolidated Financial Statements for the thirteen-week period ended December 3, 2022. During the thirteen-week period ended November 27, 2021, the Company repurchased 53 shares of Class A Common Stock for $4,559. All of these shares were repurchased by the Company to satisfy the Company’s associates’ tax withholding liability associated with its stock-based compensation program and are reflected at cost as treasury stock in the unaudited Condensed Consolidated Financial Statements for the thirteen-week period ended November 27, 2021.

The Company reissued 14 shares of Class A treasury stock during both the thirteen-week periods ended December 3, 2022 and November 27, 2021 to fund the MSC Industrial Direct Co., Inc. Amended and Restated Associate Stock Purchase Plan.

Dividends on Common Stock

The Company paid aggregate regular cash dividends of $0.79 per share totaling $44,207 for the thirteen weeks ended December 3, 2022. The $0.75 per share regular cash dividend declared by the Company’s Board of Directors during the thirteen weeks ended November 27, 2021 resulted in aggregate payments of $41,740 on November 30, 2021, after the thirteen weeks ended November 27, 2021.

On December 16, 2022, the Company’s Board of Directors declared a regular cash dividend of $0.79 per share, payable on January 24, 2023, to shareholders of record at the close of business on January 10, 2023. The dividend is expected to result in aggregate payments of $44,218, based on the number of shares outstanding at December 15, 2022.