Accounts Receivable

3 Months Ended

Nov. 30, 2024

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.