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CURRENT RECEIVABLES
6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
CURRENT RECEIVABLES
NOTE 4. CURRENT RECEIVABLES
 
Consolidated(a)(b)
 
GE(c)
(In millions)
June 30, 2018

December 31, 2017

 
June 30, 2018

December 31, 2017

 
 
 
 
 
 
Current receivables
$
21,715

$
25,282

 
$
15,438

$
15,693

Allowance for losses
(918
)
(1,073
)
 
(901
)
(1,055
)
Total
$
20,797

$
24,209

 
$
14,537

$
14,638

(a)
Included GE industrial customer receivables sold to a GE Capital affiliate and recorded on GE Capital’s balance sheet of $7,025 million and $10,370 million at June 30, 2018 and December 31, 2017, respectively. The consolidated total included a deferred purchase price receivable of $413 million and $388 million at June 30, 2018 and December 31, 2017, respectively, related to our Receivables Facility (described below).
(b)
In order to manage credit exposure, the Company sells additional current receivables to third parties outside the Receivables Facility, substantially all of which are serviced by the Company. The outstanding balance of these current receivables was $2,694 million and $2,541 million at June 30, 2018 and December 31, 2017, respectively. Of these balances, $1,641 million and $1,621 million was sold by GE to GE Capital prior to the sale to third parties at June 30, 2018 and December 31, 2017, respectively. At June 30, 2018 and December 31, 2017, our maximum exposure to loss under the limited recourse arrangements is $50 million and $90 million, respectively.
(c)
GE current receivables balances at June 30, 2018 and December 31, 2017, before allowance for losses, included $10,518 million and $10,452 million, respectively, from sales of goods and services to customers. The remainder of the balances primarily relates to supplier advances, revenue sharing programs and other non-income based tax receivables.

RECEIVABLES FACILITY

The Company has a $3,750 million revolving Receivables Facility under which receivables are sold directly to third-party purchasers. The third-party purchasers have no recourse to other assets of the Company in the event of non-payment by the debtors. Where the purchasing entity is a bank multi-seller commercial paper conduit, assets transferred by other parties to that entity form a majority of the entity’s assets. Upon sale of the receivables, we receive proceeds of cash and a deferred purchase price (DPP). The DPP is an interest in specified assets of the purchasers (the receivables sold by GE Capital) that entitles GE Capital to the residual cash flows of those specified assets.
During the six months ended June 30, 2018, GE Industrial sold current receivables of $11,355 million to GE Capital, which GE Capital sold immediately to third parties under the Receivables Facility. GE Capital continues to service the current receivables for the purchasers. The Company received total cash collections of $11,245 million on previously sold current receivables owed to the purchasing entities. The purchasing entities invested $11,204 million, including $10,009 million of collections to purchase newly originated current receivables from the Company. In addition, the purchase of additional receivables by the purchasing entities increased their DPP obligation to the Company by $94 million and they paid $69 million to reduce their DPP obligation. During the six months ended June 30, 2018, the Company recorded a loss of $69 million on sales of current receivables to the third party purchasers.

At June 30, 2018 and December 31, 2017, GE Capital, under the Receivables Facility, serviced $3,332 million and $3,222 million of transferred receivables that remain outstanding, respectively. During the six months ended June 30, 2018, the purchasers paid GE Capital servicing fees of $16 million.

Given the short-term nature of the underlying receivables, discount rates and prepayments are not factors in determining the value of the DPP. Collections on the DPP are presented within Cash flows from investing activities in the GE Capital and consolidated columns in the Statement of Cash Flows. As the performance of the transferred current receivables is similar to the performance of our other current receivables, delinquencies are not expected to be significant.