NOTE 5: RECEIVABLES

Receivables are summarized below:



	2018			2017

	(In millions)
Accounts receivable	$	468		$	368
Unbilled costs and accrued earnings on cost-plus contracts	269			258
	737			626
Less allowances for collection losses	(2		)	(3		)
	$	735		$	623

We expect to bill during fiscal 2019 the majority of unbilled costs and accrued earnings outstanding at June 29, 2018.

We have a receivables sale agreement (“RSA”) with a third-party financial institution that permits us to sell, on a nonrecourse basis, up to $50 million of outstanding receivables at any given time. From time to time, we have sold certain

customer receivables under the RSA, which we continue to service and collect on behalf of the third-party financial

institution. Receivables sold pursuant to the RSA meet the requirements for sales accounting under Accounting Standards Codification 860, Transfers and Servicing, and accordingly, are derecognized from our Consolidated Balance Sheet at the time of sale. Outstanding accounts receivable sold pursuant to the RSA were not material as of the end of fiscal 2018, 2017 and 2016.