On December 28, 2018, the Company entered into a Master Accounts Receivable Purchase Agreement (MARPA Facility) with MUFG Bank, Ltd. (the Purchaser), for the sale of certain designated eligible U.S. government receivables. The MARPA Facility has an initial term of one-year. Under the MARPA Facility, the Company can sell eligible receivables, including certain billed and unbilled receivables up to a maximum amount of $200.0 million. The Company’s receivables are sold under the MARPA Facility without recourse for any U.S. government credit risk.

The Company accounts for receivable transfers under the MARPA Facility as sales under ASC 860, Transfers and Servicing, and derecognizes the sold receivables from its balance sheets. The fair value of the sold receivables approximated their book value due to their short-term nature. As such, there were no gains or losses related to sales of these receivables.

The Company does not retain an ongoing financial interest in the transferred receivables other than cash collection and administrative services. The Company estimated that its servicing fee was at fair value and therefore no servicing asset or liability related to these receivables was recognized as of March 31, 2019. Proceeds from the sold receivables are reflected in our operating cash flows on the statement of cash flows.

During the three and nine months ended March 31, 2019, the Company sold $563.5 million of receivables. The amount outstanding as of March 31, 2019 was $200.0 million. As of March 31, 2019, collections not remitted to the Purchaser related to the sold receivables were $72.0 million. This amount represents an obligation to the Purchaser and is included in other accrued expenses and current liabilities in the accompanying consolidated balance sheet.

During the three and nine months ended March 31, 2019, the Company incurred purchase discount fees of $1.4 million, which are recorded within interest expense and other, net in our accompanying consolidated statements of operations.

	As of and for the			As of and for the
	Three Months Ended			Nine Months Ended
	March 31, 2019			March 31, 2019
Beginning balance:
Sales of receivables	$	563,502		$	563,502
Cash collections		(363,502	)		(363,502	)
Outstanding balance sold to Purchaser: (1)		200,000			200,000
Cash collected, not remitted to Purchaser (2)		(71,970	)		(71,970	)
Remaining sold receivables	$	128,030		$	128,030

(1)

Represents the increase to cash flows from operations.

(2)

Includes the cash collected on behalf of but not yet remitted to the Purchaser as of March 31, 2019. This balance is included in other accrued expenses and current liabilities as of the balance sheet date.