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## Notes to the Consolidated Financial Statements (continued) 

## E. I. du Pont de Nemours and Company 

The following average number of stock options were antidilutive, and therefore not included in the dilutive earnings per share calculations: 

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## NOTE 11 - ACCOUNTS AND NOTES RECEIVABLE - NET 

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$^{1.}$ Accounts receivable – trade is net of allowances of $85 million at December 31, 2018 and $10 million at December 31, 2017. Allowances are equal to the estimated uncollectible amounts. That estimate is based on historical collection experience, current economic and market conditions, and review of the current status of customers' accounts. $^{2.}$ Notes receivable – trade primarily consists of receivables within the agriculture product line for deferred payment loan programs for the sale of seed products to 

customers. These loans have terms of one year or less and are primarily concentrated in North America. The company maintains a rigid pre-approval process for extending credit to customers in order to manage overall risk and exposure associated with credit losses. As of December 31, 2018 and 2017, there were no significant past due notes receivable which required a reserve, nor were there any significant impairments related to current loan agreements. $^{3.}$ Other includes receivables in relation to value added tax, fair value of derivative instruments, indemnification assets, related parties (see Note 7 for further information), 

and general sales tax and other taxes. No individual group represents more than ten percent of total receivables. 

Accounts and notes receivable are carried at amounts that approximate fair value. 

## NOTE 12 - INVENTORIES 

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As a result of the Merger, a fair value step-up of $3,840 million was recorded for inventories. Of this amount, $1,563 million and $1,434 million was recognized in cost of goods sold within (loss) income from continuing operations for the year ended December 31, 2018 and the period September 1 through December 31, 2017, respectively. See Note 3 for additional information regarding the Merger. 

