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Accounts Receivable | 3 Months Ended
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Nov. 30, 2024
Receivables [Abstract] |
Accounts Receivable | Accounts Receivable Accounts receivables at November 30, 2024 and August 31, 2024 consisted of the following:
| November 30, 2024 |  | August 31, 2024
Accounts receivable | $ | 430,661 |  |  | $ | 434,490 |
Less: allowance for credit losses | 22,860 |  |  | 22,368 |
Accounts receivable, net | $ | 407,801 |  |  | $ | 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. The RPA matures on December 19, 2025 and is subject to customary termination events related to transactions 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 $300,000. The total principal amount outstanding of receivables sold was approximately $300,000 as of November 30, 2024 and August 31, 2024. The amount of receivables pledged as collateral as of November 30, 2024 and August 31, 2024 was $347,252 and $349,743, respectively. The following table summarizes the activity and amounts outstanding under the RPA for the thirteen-week periods ended November 30, 2024 and December 2, 2023
| Thirteen Weeks Ended |  |
| November 30, 2024 |  | December 2, 2023 |  |  |  |
Receivables sold under the RPA | $ | 308,706 |  |  | $ | 312,980 |  |  |  |  |
Cash collected on sold receivables under the RPA | $ | 308,706 |  |  | $ | 312,980 |  |  |  |  |
The receivables sold incurred fees due to the Purchasers of $4,202 during the thirteen-week period ended November 30, 2024 and $4,611 during the thirteen-week period ended December 2, 2023 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 and the Private Placement Debt (each, as defined below). See Note 7, “Debt” for more information about these financial covenants.

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- Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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