TRANSFERS OF FINANCIAL ASSETS

9 Months Ended

Sep. 30, 2017

Transfers and Servicing [Abstract]

TRANSFERS OF FINANCIAL ASSETS

TRANSFERS OF FINANCIAL ASSETS

The Company sells trade accounts receivable of select North American entities and qualifying trade accounts receivable of select European entities on a revolving basis to certain multi-seller commercial paper conduit entities ("conduits"). The proceeds received are comprised of cash and interests in specified assets of the conduits (the receivables sold by the Company) that entitle the Company to the residual cash flows of such specified assets in the conduits after the commercial paper has been repaid. Neither the conduits nor the investors in those entities have recourse to other assets of the Company in the event of nonpayment by the debtors.

The following table summarizes the carrying value of interests held, which represents the Company's maximum exposure to loss related to the receivables sold, and the percentage of anticipated credit losses related to the trade accounts receivable sold. Also provided is the sensitivity of the fair value of the interests held to hypothetical adverse changes in the anticipated credit losses; amounts shown below are the corresponding hypothetical decreases in the carrying value of interests.

Interests Held	Sep 30, 2017			Dec 31, 2016
In millions
Carrying value of interests held	$	1,839		$	1,237
Percentage of anticipated credit losses	0.87		%	0.36		%
Impact to carrying value - 10% adverse change	$	1		$	1
Impact to carrying value - 20% adverse change	$	2		$	1

Credit losses, net of any recoveries, on receivables sold were insignificant for the three- and nine-month periods ended September 30, 2017 and 2016.

Following is an analysis of certain cash flows between the Company and the conduits:

Cash Proceeds	Three Months Ended				Nine Months Ended
In millions	Sep 30, 2017		Sep 30, 2016		Sep 30, 2017		Sep 30, 2016
Collections reinvested in revolving receivables	$	6,295	$	5,783	$	18,027	$	15,760
Interests in conduits 1	$	135	$	129	$	939	$	882

1. Presented in "Operating Activities" in the consolidated statements of cash flows.

Following is additional information related to the sale of receivables under these facilities:

Trade Accounts Receivable Sold	Sep 30, 2017		Dec 31, 2016
In millions
Delinquencies on sold receivables still outstanding	$	128	$	86
Trade accounts receivable outstanding and derecognized	$	2,865	$	2,257