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GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES
6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES
NOTE 6. GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES
FINANCING RECEIVABLES, NET
(In millions)
June 30, 2018

December 31, 2017

 
 
 
Loans, net of deferred income
$
13,371

$
17,404

Investment in financing leases, net of deferred income
3,059

4,614

 
16,430

22,018

Allowance for losses
(38
)
(51
)
Financing receivables – net
$
16,392

$
21,967


We manage our GE Capital financing receivables portfolio using delinquency and nonaccrual data as key performance indicators. At June 30, 2018, $779 million (4.7%), $387 million (2.4%) and $304 million (1.9%) of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively. Of the $304 million of nonaccrual financing receivables at June 30, 2018, the vast majority are secured by collateral and $194 million are currently paying in accordance with the contractual terms. At December 31, 2017, $550 million (2.5%), $140 million (0.6%) and $252 million (1.1%) of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively.

The recorded investment in impaired loans at June 30, 2018 and December 31, 2017 was $350 million and $286 million, respectively. The method used to measure impairment for these loans is primarily based on collateral value. At June 30, 2018, troubled debt restructurings included in impaired loans were $133 million.
The GE Capital financing receivables portfolio includes $2,248 million and $4,148 million of current receivables purchased from GE with recourse and $1,100 million and $1,141 million of financing receivables that are guaranteed by GE, of which $248 million and $239 million of these loans are on nonaccrual at June 30, 2018 and December 31, 2017, respectively. These nonaccrual loans are impaired and are measured based on market and collateral value at a consolidated level, however, are not impaired loans at GE Capital because of the GE guarantee. Financing receivables that are guaranteed by GE are not included in the GE Capital nonaccrual data and financing receivables purchased from GE with recourse are not included in the GE Capital delinquency and nonaccrual data. In addition to the allowance for loan losses recorded at GE Capital, an additional allowance for loan losses of $160 and $161 million was recorded at GE and on a consolidated level for guaranteed loans at June 30, 2018 and December 31, 2017, respectively.

In connection with the strategic shift to make GE Capital smaller and more focused, we classified $2,231 million of Energy Financial Services financing receivables as held for sale at December 31, 2017, as we no longer intend to hold these financing receivables for the foreseeable future. The related held for sale balance at June 30, 2018 is $1,986 million. Pre-tax provisions for losses on financing receivables of $14 million and $137 million and write-offs of $14 million and $156 million were recorded for the six months ended June 30, 2018, and for the twelve months ended December 31, 2017, respectively to reduce the carrying value of the financing receivables to the lower of cost or fair value, less cost to sell.

Additionally, in connection with the GE Capital strategic shift, we classified $1,434 million of Healthcare Equipment Finance financing receivables as held for sale at June 30, 2018, and write-offs of $7 million were recorded at June 30, 2018, to reduce the carrying value of the financing receivables to the lower of cost or fair value, less cost to sell.