TRANSFERS OF FINANCIAL ASSETS

6 Months Ended

Jun. 30, 2014

The Company sells trade accounts receivable of select North America 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	Jun 30, 2014			Dec 31, 2013
In millions	Jun 30, 2014			Dec 31, 2013
Carrying value of interests held	$	1,297		$	1,227
Percentage of anticipated credit losses	0.75		%	0.71		%
Impact to carrying value - 10% adverse change	$	1		$	1
Impact to carrying value - 20% adverse change	$	3		$	2

Credit losses, net of any recoveries, on receivables sold during the three- and six-month periods ended June 30, 2014 were $1 million (insignificant for the three- and six-month periods ended June 30, 2013).

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



Cash Proceeds	Three Months Ended				Six Months Ended
In millions	Jun 30, 2014		Jun 30, 2013		Jun 30, 2014		Jun 30, 2013
Sale of receivables	$	11	$	—	$	11	$	19
Collections reinvested in revolving receivables	$	6,793	$	6,610	$	12,982	$	12,740
Interests in conduits (1)	$	397	$	390	$	547	$	436


(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	Jun 30, 2014		Dec 31, 2013
In millions	Jun 30, 2014		Dec 31, 2013
Delinquencies on sold receivables still outstanding	$	132	$	138
Trade accounts receivable outstanding and derecognized	$	2,670	$	2,494

In January 2013, the Company repurchased $8 million of previously sold receivables related to a divestiture.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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