XML 88 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
GECC Financing Receivables and Allowance For Losses On Financing Receivables
 9 Months Ended
Sep. 30, 2012
Loans and Leases Receivable Disclosure [Abstract]  
GECC Financing Receivables and Allowance For Losses On Financing Receivables

5. GECC FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES

 At
 September 30, December 31,
(In millions)2012 2011
      
Loans, net of deferred income(a)$242,729 $256,895
Investment in financing leases, net of deferred income 34,274  38,142
  277,003  295,037
Less allowance for losses (5,380)  (6,190)
Financing receivables – net(b)$271,623 $288,847
      
      

  • Deferred income was $2,221 million and $2,329 million at September 30, 2012 and December 31, 2011, respectively.
  • Financing receivables at September 30, 2012 and December 31, 2011 included $845 million and $1,062 million, respectively, of loans that were acquired in a transfer but have been subject to credit deterioration since origination per ASC 310, Receivables.

 

The following tables provide additional information about our financing receivables and related activity in the allowance for losses for our Commercial, Real Estate and Consumer portfolios.

 

Financing Receivables – net

 At
 September 30, December 31,
(In millions)2012 2011
      
Commercial     
CLL     
Americas$74,488 $80,505
Europe 34,916  36,899
Asia 11,597  11,635
Other 659  436
Total CLL 121,660  129,475
      
Energy Financial Services 4,989  5,912
      
GE Capital Aviation Services (GECAS) 11,628  11,901
      
Other 537  1,282
Total Commercial financing receivables 138,814  148,570
      
Real Estate     
Debt 21,225  24,501
Business Properties 5,069  8,248
Total Real Estate financing receivables 26,294  32,749
      
Consumer     
Non-U.S. residential mortgages 33,855  35,550
Non-U.S. installment and revolving credit 18,504  18,544
U.S. installment and revolving credit 46,939  46,689
Non-U.S. auto 4,601  5,691
Other 7,996  7,244
Total Consumer financing receivables 111,895  113,718
      
Total financing receivables 277,003  295,037
      
Less allowance for losses (5,380)  (6,190)
Total financing receivables – net$271,623 $288,847
      
      

Allowance for Losses on Financing Receivables

 Balance at Provision       Balance at
 January 1, charged to    Gross   September 30,
(In millions)2012 operations Other(a)write-offs(b)Recoveries(b)2012
                  
Commercial                 
CLL                 
Americas$889 $67 $(43) $(423) $77 $567
Europe 400  271  (3)  (142)  48  574
Asia 157  13  (1)  (117)  20  72
Other 4  9  (1)  (10)  0  2
Total CLL 1,450  360  (48)  (692)  145  1,215
                  
                  
Energy Financial                 
    Services 26  8  0  (24)  3  13
                  
GECAS 17  7  (1)  (11)  0  12
                  
Other 37  3  (19)  (13)  1  9
Total Commercial 1,530  378  (68)  (740)  149  1,249
                  
Real Estate                 
Debt 949  60  1  (384)  5  631
Business Properties 140  41  (8)  (71)  3  105
Total Real Estate 1,089  101  (7)  (455)  8  736
                  
Consumer                 
Non-U.S. residential                 
   mortgages 546  66  5  (213)  63  467
Non-U.S. installment                 
   and revolving                  
   credit 717  270  22  (798)  443  654
U.S. installment and                 
   revolving credit 2,008  1,807  (18)  (2,140)  373  2,030
Non-U.S. auto 101  18  (7)  (110)  71  73
Other 199  88  15  (193)  62  171
Total Consumer 3,571  2,249  17  (3,454)  1,012  3,395
Total$6,190 $2,728 $(58) $(4,649) $1,169 $5,380
                  
                  

  • Other primarily included transfers to held for sale and the effects of currency exchange.
  • Net write-offs (gross write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as our revolving credit portfolios turn over more than once per year or, in all portfolios, can reflect losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables.

 

  Balance at Provision       Balance at
  January 1, charged to    Gross   September 30,
(In millions) 2011 operations Other(a) write-offs(b) Recoveries(b) 2011
                   
Commercial                  
CLL                  
Americas $1,288 $250 $(79) $(544) $80 $995
Europe  429  126  17  (218)  49  403
Asia  222  81  16  (194)  25  150
Other  6  3  (4)  0  0  5
Total CLL  1,945  460  (50)  (956)  154  1,553
                   
                   
Energy Financial                  
    Services  22  10  0  (4)  8  36
                   
GECAS  20  (4)  0  (2)  0  14
                   
Other  58  13  0  (31)  3  43
Total Commercial  2,045  479  (50)  (993)  165  1,646
                   
Real Estate                  
Debt  1,292  155  13  (494)  12  978
Business Properties  196  70  0  (107)  4  163
Total Real Estate  1,488  225  13  (601)  16  1,141
                   
Consumer                  
Non-U.S. residential                  
   mortgages  689  56  8  (169)  38  622
Non-U.S. installment                  
   and revolving credit  937  413  16  (980)  430  816
U.S. installment and                  
   revolving credit  2,333  1,587  (1)  (2,365)  399  1,953
Non-U.S. auto  168  26  7  (176)  98  123
Other  259  107  (6)  (215)  66  211
Total Consumer  4,386  2,189  24  (3,905)  1,031  3,725
Total $7,919 $2,893 $(13) $(5,499) $1,212 $6,512
                   
                   

  • Other primarily included transfers to held for sale and the effects of currency exchange.
  • Net write-offs (gross write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as our revolving credit portfolios turn over more than once per year or, in all portfolios, can reflect losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables.

 

See Note 17 for supplemental information about the credit quality of financing receivables and allowance for losses on financing receivables.