TRANSFERS OF FINANCIAL ASSETS

The Company has historically sold 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.

In the fourth quarter of 2017, the Company suspended further sales of trade accounts receivable through these facilities and began reducing outstanding balances under these facilities through collections of trade accounts receivable previously sold to such conduits. The Company has the ability to resume such sales to the conduits, subject to certain prior notice requirements, at the discretion of the Company.

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	Mar 31, 2018			Dec 31, 2017
In millions	Mar 31, 2018			Dec 31, 2017
Carrying value of interests held	$	234		$	677
Percentage of anticipated credit losses	5.98		%	2.64		%
Impact to carrying value - 10% adverse change	$	—		$	—
Impact to carrying value - 20% adverse change	$	—		$	1

Credit losses, net of any recoveries, on receivables sold were insignificant for the three months ended March 31, 2018 and 2017.

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



Cash Proceeds	Three Months Ended
In millions	Mar 31, 2018		Mar 31, 2017
Collections reinvested in revolving receivables	$	—	$	5,681
Interests in conduits ¹	$	445	$	551

Presented in "Investing Activities" in the consolidated statements of cash flows in accordance with ASU 2016-15. See Notes 1 and 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Interests in conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits.

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



Trade Accounts Receivable Sold	Mar 31, 2018		Dec 31, 2017
In millions	Mar 31, 2018		Dec 31, 2017
Delinquencies on sold receivables still outstanding	$	42	$	82
Trade accounts receivable outstanding and derecognized	$	247	$	612