In the second quarter of fiscal year 2023, the Company entered into 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. The RPA was amended in December 2025 to provide 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 of $50,000 to a total of $350,000 which the Company has fully utilized and derecognized from the Consolidated Balance Sheet as of August 29, 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 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 $350,000. The total principal amount outstanding of receivables sold was approximately $350,000 and $300,000 as of August 29, 2026 and August 30, 2025. The amount of receivables pledged as collateral as of August 29, 2026 and August 30, 2025 was $375,263 and $359,465, respectively.

The following table summarizes the activity and amounts outstanding under the RPA for fiscal years 2026, 2025, and 2024:


	For the Fiscal Years Ended
	August 29, 2026		August 30, 2025		August 31, 2024
Receivables sold under the RPA	$	1,446,719	$	1,259,391	$	1,272,320
Cash collected on sold receivables under the RPA	$	1,396,719	$	1,259,391	$	1,272,320

The receivables sold incurred fees due to the Purchasers of $15,311, $15,767 and $18,438 for the fiscal years ended August 29, 2026, August 30, 2025 and August 31, 2024, which were recorded within Other (expense) income, net in the Consolidated Statements of Income. The financial covenants under the RPA are substantially the same as those under the Credit Facilities and the Private Placement Debt (each, as defined below). See Note 11, “Debt” for more information about these financial covenants.