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FINANCING RECEIVABLES AND ALLOWANCES (Tables)
3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Schedule of Financing Receivables, Net
CURRENT RECEIVABLES
Consolidated

GE
(In millions)
March 31, 2020

December 31, 2019


March 31, 2020

December 31, 2019







Customer receivables(a)
$
12,877

$
12,594


$
8,920

$
9,507

Sundry receivables(b)
4,976

5,049

 
5,082

5,247

Allowance for losses
(929
)
(874
)

(926
)
(872
)
Total current receivables
$
16,925

$
16,769


$
13,076

$
13,883


(a) Includes receivables from Boeing due to 737 MAX temporary fleet grounding of $1,407 million and $1,397 million as of March 31, 2020 and December 31, 2019, respectively.
(b) Includes supplier advances, revenue sharing programs receivables, other non-income based tax receivables, certain intercompany balances that eliminate upon consolidation and deferred purchase price. The deferred purchase price represents our retained risk with respect to current customer receivables sold to third parties through one of the receivable facilities. The balance of the deferred purchase price held by GE Capital at March 31, 2020 and December 31, 2019 was $502 million and $421 million, respectively.

 
Consolidated
 
GE
(In millions)
March 31, 2020

December 31, 2019

 
March 31, 2020

December 31, 2019

 
 
 
 
 
 
Long-term customer receivables(a)
$
756

$
906


$
492

$
506

Long-term sundry receivables(b)
1,437

1,504

 
1,647

1,834

Allowance for losses
(131
)
(128
)

(131
)
(128
)
Total long-term receivables
$
2,063

$
2,282


$
2,008

$
2,212

(a) At March 31, 2020 and December 31, 2019, GE Capital held $265 million and $400 million, respectively, of GE long-term customer receivables, of which $222 million and $312 million had been purchased with recourse (i.e., GE retains all or some risk of default). The effect on GE cash flows from operating activities (CFOA) of claims on long-term receivables sold with recourse was insignificant for the three months ended March 31, 2020 and the year ended December 31, 2019.
(b) Includes supplier advances, revenue sharing programs receivables, other non-income based tax receivables and certain intercompany balances that eliminate upon consolidation.
Activity related to these facilities is included in the GE Capital sales to third parties line in the sales of GE current customer receivables table above and is as follows:
Three months ended March 31 (In millions)
2020

 
2019

 
 
 
 
Customer receivables sold to receivables facilities
$
4,307

 
$
5,175

Total cash purchase price for customer receivables
4,120

 
5,071

Cash collections re-invested to purchase customer receivables
3,723

 
4,253

 
 
 
 
Non-cash increases to deferred purchase price
$
160

 
$
44

Cash payments received on deferred purchase price
78

 
61



Activity related to customer receivables sold by GE is as follows:
(In millions)
2020

2019

GE Capital


Third Parties

GE Capital


Third Parties








Balance at January 1
$
3,087


$
6,757


$
4,386


$
7,880

GE sales to GE Capital
9,225




9,690



GE sales to third parties


515




1,376

GE Capital sales to third parties
(5,253
)

5,253


(6,591
)

6,591

Collections and other
(3,224
)

(8,005
)

(3,967
)

(8,123
)
Reclassification from long-term customer receivables
123




140



Balance at March 31
$
3,958

(a)(b)
$
4,519


$
3,657

(a)
$
7,724

(a) At March 31, 2020 and 2019, $557 million and $1,248 million, respectively, of the current receivables purchased and retained by GE Capital had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse was insignificant for the three months ended March 31, 2020 and 2019.
(b) The $871 million increase in GE current receivables purchased and retained by GE Capital in the quarter was driven by a plan to use excess liquidity in GE Capital to purchase and retain GE current receivables. GE Aviation receivables were substantially all of the increase and approximately $288 million of that increase can be attributed to lower third-party demand for certain GE Aviation receivables.


Consolidated

GE Capital
(In millions)
March 31, 2020

December 31, 2019


March 31, 2020

December 31, 2019







Loans, net of deferred income
$
1,141

$
1,098


$
5,568

$
4,927

Investment in financing leases, net of deferred income
1,921

2,070


1,921

2,070


3,062

3,168


7,489

6,996

Allowance for losses
(65
)
(33
)

(33
)
(17
)
Financing receivables – net
$
2,998

$
3,134


$
7,457

$
6,979