In the second quarter of fiscal year 2023, the Company entered into a Receivables Purchase Agreement (the “RPA”), by and among MSC A/R Holding Co., LLC, a wholly owned subsidiary of the Company (the “Receivables Subsidiary”), as seller, the Company, as master servicer, certain purchasers from time to time party thereto (collectively, the “Purchasers”), and Wells Fargo Bank, National Association, as administrative agent. Under the RPA, the Receivables Subsidiary may sell receivables to the Purchasers in amounts up to $300,000. During the second quarter of fiscal year 2023, the amount sold to the Purchasers was $300,000, which was derecognized from the unaudited Condensed Consolidated Balance Sheet as of March 4, 2023. The RPA matures on December 19, 2025 and is subject to customary termination events related to transactions of this type.

The Company continues to be involved with the receivables sold to the Purchasers by providing collection services. As cash is collected on sold receivables, the Receivables Subsidiary continuously sells new qualifying receivables to the Purchasers so that the total principal amount outstanding of receivables sold is approximately $300,000. The total principal amount outstanding of receivables sold was approximately $300,000 as of June 1, 2024 and September 2, 2023. The amount of receivables pledged as collateral as of June 1, 2024 and September 2, 2023 was $339,142 and $352,385, respectively.


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	June 1, 2024		June 3, 2023		June 1, 2024		June 3, 2023
Receivables sold under the RPA	$	319,834	$	274,274	$	949,691	$	817,398
Cash collected on sold receivables under the RPA	$	319,834	$	274,277	$	949,691	$	517,398

The receivables sold incurred fees due to the Purchasers of $4,605 and $13,832 during the thirteen- and thirty-nine-week periods ended June 1, 2024, respectively, and $4,317 and $7,640 during the thirteen- and thirty-nine-week periods ended June 3, 2023, respectively, which were recorded within Other expense, net in the unaudited Condensed Consolidated Statements of Income. The financial covenants under the RPA are substantially the same as those under the Credit Facilities, the Private Placement Debt and the Shelf Facility Agreements (each, as defined below). See Note 7, “Debt” for more information about these financial covenants.