Accounts Receivable

12 Months Ended

Aug. 30, 2025

ACCOUNTS RECEIVABLE

Accounts receivables at August 30, 2025 and August 31, 2024 consisted of the following:


	August 30, 2025		August 31, 2024
Accounts receivable	$	445,671	$	434,490
Less: Allowance for credit losses	22,365		22,368
Accounts receivable, net	$	423,306	$	412,122

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. Receivables sold and collected under the RPA during the fiscal years ended August 30, 2025 and August 31, 2024 were $1,259,391 and $1,272,320, respectively. The total principal amount outstanding of receivables sold was approximately $300,000 as of August 30, 2025 and August 31, 2024. The amount of receivables pledged as collateral as of August 30, 2025 and August 31, 2024 was $359,465 and $349,743, respectively.

The receivables sold incurred fees due to the Purchasers of $15,767, $18,438 and $12,175 for the fiscal years ended August 30, 2025, August 31, 2024 and September 2, 2023, 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 10, “Debt” for more information about these financial covenants.