Receivables Securitization Program

12 Months Ended

Apr. 24, 2021

Transfers and Servicing [Abstract]

Receivables Securitization Program

Receivables Securitization ProgramWe are party to certain receivables purchase agreements (the “Receivables Purchase Agreements”) with MUFG Bank, Ltd. ("MUFG") (f.k.a. The Bank of Tokyo-Mitsubishi UFJ, Ltd.), under which MUFG acts as an agent to

facilitate the sale of certain Patterson receivables (the “Receivables”) to certain unaffiliated financial institutions (the “Purchasers”). The sale of these receivables is accounted for as a sale of assets under the provisions of ASC 860, Transfers and Servicing. We utilize PDC Funding III and PDC Funding IV to facilitate the sale to fulfill requirements within the agreement. We use a daily unit of account for these Receivables.

The proceeds from the sale of these Receivables comprise a combination of cash and a deferred purchase price (“DPP”) receivable. The DPP receivable is ultimately realized by Patterson following the collection of the underlying Receivables sold to the Purchasers. The amount available under the Receivables Purchase Agreements fluctuates over time based on the total amount of eligible Receivables generated during the normal course of business, with maximum availability of $200,000 as of April 24, 2021, of which $200,000 was utilized.

We have no retained interests in the transferred Receivables, other than our right to the DPP receivable and collection and administrative service fees. We consider the fees received adequate compensation for services rendered, and accordingly have recorded no servicing asset or liability. As of April 24, 2021 and April 25, 2020, the fair value of outstanding trade receivables transferred to the Purchasers under the facility and derecognized from the consolidated balance sheets were $384,950 and $305,020, respectively. Sales of trade receivables under this facility were $3,171,456, $2,068,409, and $1,667,449, and cash collections from customers on receivables sold were $3,094,060, $2,128,394 and $1,445,926 during the fiscal years ended 2021, 2020 and 2019, respectively.

The DPP receivable is recorded at fair value within the consolidated balance sheets within prepaid expenses and other current assets. The difference between the carrying amount of the Receivables and the sum of the cash and fair value of the DPP receivable received at time of transfer is recognized as a gain or loss on sale of the related Receivables inclusive of bank fees and allowance for credit losses. In operating expenses in the consolidated statements of operations and other comprehensive income (loss), we recorded a loss of $3,338, $7,242 and $7,622 during fiscal 2021, 2020 and 2019, respectively, related to the Receivables.

The following summarizes the activity related to the DPP receivable:

	Fiscal Year Ended
	April 24, 2021		April 25, 2020		April 27, 2019
Beginning DPP receivable balance	$	117,327	$	57,238	$	—
Non-cash additions to DPP receivable	768,619		552,751		408,565
Cash collections on DPP receivable	(701,947)		(492,662)		(351,327)
Ending DPP receivable balance	$	183,999	$	117,327	$	57,238