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Stock-Based Compensation (Tables)
3 Months Ended
Dec. 02, 2023
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 Topic 718, “Compensation—Stock Compensation,” as amended. Stock-based compensation expense, net included in Operating expenses for the thirteen-week periods ended December 2, 2023 and December 3, 2022 was as follows:
Thirteen Weeks Ended
December 2,
2023
December 3,
2022
Stock options$— $101 
Restricted stock units (1)
4,275 3,711 
Performance share units (1)
821 1,095 
Associate Stock Purchase Plan105 83 
Total 5,201 4,990 
Deferred income tax benefit(1,264)(1,233)
Stock-based compensation expense, net$3,937 $3,757 
(1)Includes equity award acceleration costs associated with associate severance and separation.
Summary of Stock Option Activity
A summary of the Company’s stock option activity for the thirteen-week period ended December 2, 2023 is as follows:
SharesWeighted-Average Exercise Price per ShareWeighted-Average Remaining Contractual Term (in
years)
Aggregate Intrinsic Value
Outstanding on September 2, 2023218$81.60 
Granted — 
Exercised (86)79.96 
Canceled/Forfeited/Expired— 
Outstanding on December 2, 2023132$82.67 1.7$2,141 
Exercisable on December 2, 2023132$82.67 1.7$2,141 
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 thirteen-week period ended December 2, 2023:
SharesWeighted-Average Grant Date Fair Value
Non-vested PSUs at September 2, 2023112$81.81 
Granted4589.88 
PSU adjustment (1)
2374.79 
Vested (46)74.79 
Canceled/Forfeited(1)82.57 
Non-vested PSUs at December 2, 2023 (2)
133$88.37 

(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 5 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 thirteen-week period ended December 2, 2023 is as follows:
SharesWeighted-Average Grant Date Fair Value
Non-vested RSUs at September 2, 2023467$80.98 
Granted16297.78 
Vested (155)79.97 
Canceled/Forfeited (5)84.78 
Non-vested RSUs at December 2, 2023 (1)
469$87.07 
(1)Excludes approximately 27 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the 2015 Omnibus Incentive Plan and the 2023 Omnibus Incentive Plan.