Note 9 - Receivables Purchase Program

9 Months Ended

Dec. 27, 2025

Notes to Financial Statements

Receivables Purchase Program [Text Block]

9. Receivables Purchase Program

On August 12, 2025, the Company entered into a receivables purchase agreement (the “RPA”) with Wells Fargo Bank, N.A. to sell certain accounts receivable at a discount in exchange for cash (the “Program”). The discount is based upon SOFR plus 1.00%. The RPA has an outstanding purchase limit of $50.0 million and can be terminated by either party with 30 days’ notice. The Company has no retained ownership interest in the transferred receivables; however, under the RPA, the Company does have collection and administrative responsibilities in its role as servicer of the receivables. The Program is used by the Company to manage liquidity and provide working capital flexibility in a cost-effective manner.

Receivables transferred under the Program result in the amounts being derecognized from the Company’s condensed consolidated balance sheet. The proceeds received by the Company are included in cash flows from operating activities on the condensed consolidated statement of cash flows. The discount incurred is recorded as part of other operating (income) expense, net on the condensed consolidated statement of net earnings.

The Company sold $0.2 million of receivables under the Program during the three and nine months ended December 27, 2025, respectively, which is net of a nominal discount given the small volume of activity. All amounts were collected and remitted as of December 27, 2025. The amount available under the Program was $50.0 million as of December 27, 2025.