United states securities and exchange commission

In the fourth quarter of 2017, Dow wrote off $69 million of intangible assets (including $11 million of IPR&D) as part of the Synergy Program. In 2016, Dow wrote off $11 million of IPR&D as part of the 2016 restructuring charge. See Note 5 for additional information.

Total estimated amortization expense for the next five fiscal years is as follows:

Estimated Amortization Expense for Next Five Years
In millions
2018	$	2,003
2019	$	1,919
2020	$	1,872
2021	$	1,823
2022	$	1,744

NOTE 14 - TRANSFERS OF FINANCIAL ASSETS

Dow 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 Dow) that entitle Dow 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 Dow in the event of nonpayment by the debtors.
In the fourth quarter of 2017, Dow 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. Dow has the ability to resume such sales to the conduits, subject to certain prior notice requirements, at the discretion of the Company.

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For the year ended December 31, 2017 , Dow recognized a loss of $25 million on the sale of these receivables ( $20 million loss for the year ended December 31, 2016 and $15 million loss for the year ended December 31, 2015 ), which is included in “Interest expense and amortization of debt discount” in the consolidated statements of income.
Dow's interests in the conduits are carried at fair value and included in “Accounts and notes receivable - Other” in the consolidated balance sheets. Fair value of the interests is determined by calculating the expected amount of cash to be received and is based on unobservable inputs (a Level 3 measurement). The key input in the valuation is the percentage of anticipated credit losses in the portfolio of receivables sold that have not yet been collected. Given the short-term nature of the underlying receivables, discount rates and prepayments are not factors in determining the fair value of the interests.
The following table summarizes the carrying value of interests held, which represents Dow'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 at Dec 31
In millions	2017			2016
Carrying value of interests held	$	677		$	1,237
Percentage of anticipated credit losses	2.64		%	0.36		%
Impact to carrying value - 10% adverse change	$	—		$	1
Impact to carrying value - 20% adverse change	$	1		$	1

Credit losses, net of any recoveries, were insignificant for the year ended December 31, 2017 ( insignificant for the year ended December 31, 2016 , and $1 million for the year ended December 31, 2015 ).

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

Cash Proceeds
In millions		2017			2016			2015
Sale of receivables		$	1		$	1		$	18
Collections reinvested in revolving receivables		$	21,293		$	21,652		$	22,951
Interests in conduits 1		$	2,269		$	1,257		$	1,034
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 at Dec 31
In millions	2017			2016
Delinquencies on sold receivables still outstanding	$	82		$	86
Trade accounts receivable outstanding and derecognized	$	612		$	2,257

In 2017 , Dow repurchased $5 million of previously sold receivables ( $4 million in 2016 ).

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NOTE 15 - NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES

The Company’s outstanding long-term debt resides with its subsidiaries, Dow and DuPont (the "Subsidiaries"). The Company does not guarantee any of the debt obligations of the Subsidiaries. The following tables summarize the consolidated notes payable and long-term debt of the Subsidiaries:

Notes Payable	Dec 31, 2017									Dec 31, 2016
In millions	Dow			DuPont			Total
Commercial paper	$	231		$	1,436		$	1,667		$	—
Notes payable to banks and other lenders	253			28			281			225
Notes payable to related companies	—			—			—			44
Notes payable trade	—			—			—			3
Total notes payable	$	484		$	1,464		$	1,948		$	272
Period-end average interest rates	4.42		%	1.95		%				4.60		%

	Long-Term Debt			Dec 31, 2017													2016 Weighted Average Rate		Dec 31, 2016
	In millions			Dow Weighted Average Rate		Dow			DuPont Weighted Average Rate		DuPont			Total
	Promissory notes and debentures:
	Final maturity 2017			—	%	$	—				$	—		$	—		6.06	%	$	442
	Final maturity 2018			5.78	%	339			1.59	%	1,280			1,619			5.78	%	339
	Final maturity 2019			8.55	%	2,122			2.23	%	521			2,643			8.55	%	2,122
	Final maturity 2020			4.46	%	1,547			1.79	%	3,070			4,617			4.46	%	1,547
	Final maturity 2021			4.71	%	1,424			2.07	%	1,580			3,004			4.72	%	1,424
	Final maturity 2022 1			3.50	%	1,373			—	%	—			1,373			3.50	%	1,371
	Final maturity 2023 and thereafter			6.00	%	7,182			3.32	%	3,492			10,674			5.98	%	7,199
	Other facilities:
	U.S. dollar loans, various rates and maturities			2.44	%	4,564			2.37	%	1,518			6,082			1.60	%	4,595
	Foreign currency loans, various rates and maturities			3.00	%	814			2.85	%	30			844			3.42	%	882
	Medium-term notes, varying maturities through 2043 1			3.20	%	873			1.22	%	110			983			3.18	%	905
	Tax-exempt bonds, varying maturities through 2038			5.66	%	343			—	%	—			343			5.66	%	343
	Capital lease obligations					282					5			287					295
	Unamortized debt discount and issuance costs					(346		)			—			(346		)			(373		)
	Long-term debt due within one year 2					(752		)			(1,315		)	(2,067		)			(635		)
	Long-term debt					$	19,765				$	10,291		$	30,056				$	20,456
1.		Prior year data has been updated to conform with the current year presentation.
2.			Presented net of current portion of unamortized debt issuance costs.