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 May 30, 2026. The RPA is a key component of the Company’s working capital strategy as it provides an additional source of liquidity through the sale of eligible receivables. 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 May 30, 2026 and August 30, 2025,


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	May 30, 2026		May 31, 2025		May 30, 2026		May 31, 2025
Receivables sold under the RPA	$	362,819	$	312,646	$	1,080,223	$	944,941
Cash collected on sold receivables under the RPA	$	362,819	$	312,646	$	1,030,223	$	944,941

The receivables sold incurred fees due to the Purchasers of $3,893 and $11,410 during the thirteen- and thirty-nine-week periods ended May 30, 2026, respectively, and $3,846 and $11,911 during the thirteen- and thirty-nine-week periods ended May 31, 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 8, “Debt” for more information about these financial covenants.