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 certain eligible receivables to the Purchasers. The RPA was amended in December 2025, which provided for, among other things, an extension of the scheduled termination date to December 8, 2028, the addition of a joining purchaser and an increase to the maximum aggregate commitment by $50,000 to a total of $350,000 which the Company has fully utilized as of February 28, 2026. The RPA continues to include customary representations and warranties for facilities of this type.

The Company continues to provide collection services for the receivables sold to the Purchasers. 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 $350,000. The total principal amount outstanding of receivables sold was approximately $350,000 and $300,000 as of February 28, 2026 and August 30, 2025, respectively. The amount of receivables retained and pledged as collateral by the Company as of February 28, 2026 and August 30, 2025 was $307,606 and $359,465, respectively.


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	February 28, 2026		March 1, 2025		February 28, 2026		March 1, 2025
Receivables sold under the RPA	$	410,952	$	323,589	$	717,404	$	632,295
Cash collected on sold receivables under the RPA	$	360,952	$	323,589	$	667,404	$	632,295

The receivables sold incurred fees due to the Purchasers of $3,873 and $7,517 during the thirteen- and twenty-six-week periods ended February 28, 2026, respectively, and $3,863 and $8,065 during the thirteen- and twenty-six-week periods ended March 1, 2025, 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 (as defined below). See Note 7, “Debt” for more information about these financial covenants.