Financing Receivables and Allowance For Losses On Financing Receivables

6 Months Ended

Jun. 30, 2011

Financing Receivables And Allowance For Losses On Financing Receivables [Abstract]

Financing Receivables And Allowance For Losses On Financing Receivables

4. Financing Receivables AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES

	At
	June 30,		December 31,
(In millions)	2011		2010
Loans, net of deferred income(a)	$	266,704	$	275,877
Investment in financing leases, net of deferred income		41,099		44,390
		307,803		320,267
Less allowance for losses		(7,054)		(8,033)
Financing receivables – net(b)	$	300,749	$	312,234

• Deferred income was $2,274 million and $2,351 million at June 30, 2011and December 31, 2010, respectively.
• Financing receivables at June 30, 2011 and December 31, 2010 included $1,389 million and $1,503 million, respectively, relating to loans that had been acquired in a transfer but have been subject to credit deterioration since origination per Accounting Standards Codification (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

The following table displays our financing receivables balances.

	At
	June 30,		December 31,
(In millions)	2011		2010
Commercial
CLL
Americas	$	79,614	$	86,596
Europe		37,897		37,498
Asia		11,759		11,943
Other		2,489		2,626
Total CLL		131,759		138,663
Energy Financial Services		6,143		7,011
GECAS		11,952		12,615
Other		1,517		1,788
Total Commercial financing receivables		151,371		160,077
Real Estate
Debt		27,750		30,249
Business Properties		9,057		9,962
Total Real Estate financing receivables		36,807		40,211
Consumer
Non-U.S. residential mortgages		40,731		40,011
Non-U.S. installment and revolving credit		21,047		20,132
U.S. installment and revolving credit		42,178		43,974
Non-U.S. auto		7,141		7,558
Other		8,528		8,304
Total Consumer financing receivables		119,625		119,979
Total financing receivables		307,803		320,267
Less allowance for losses		(7,054)		(8,033)
Total financing receivables – net	$	300,749	$	312,234

Allowance for Losses on Financing Receivables

The following tables provide a roll-forward of our allowance for losses on financing receivables.

	Balance at		Provision											Balance at
	January 1,		charged to					Gross						June 30,
(In millions)	2011		operations		Other		(a)	write-offs		(b)	Recoveries		(b)	2011
Commercial
CLL
Americas	$	1,287	$	219	$	(72)		$	(366)		$	55		$	1,123
Europe		429		73		30			(133)			34			433
Asia		222		77		10			(147)			18			180
Other		7		–		–			–			–			7
Total CLL		1,945		369		(32)			(646)			107			1,743
Energy Financial Services		22		11		(1)			(4)			7			35
GECAS		20		(2)		–			(3)			–			15
Other		58		11		1			(17)			1			54
Total Commercial		2,045		389		(32)			(670)			115			1,847
Real Estate
Debt		1,292		122		9			(341)			10			1,092
Business Properties		196		54		1			(70)			3			184
Total Real Estate		1,488		176		10			(411)			13			1,276
Consumer
Non-U.S. residential
mortgages		803		66		40			(150)			31			790
Non-U.S. installment
and revolving credit		937		311		64			(664)			286			934
U.S. installment and
revolving credit		2,333		941		1			(1,688)			259			1,846
Non-U.S. auto		168		26		12			(126)			63			143
Other		259		59		4			(152)			48			218
Total Consumer		4,500		1,403		121			(2,780)			687			3,931
Total	$	8,033	$	1,968	$	99		$	(3,861)		$	815		$	7,054

• Other primarily included transfers to held for sale and the effects of currency exchange.
• Net write-offs (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		Adoption of		Balance at		Provision								Balance at
	December 31,		ASU 2009		January 1,		charged to				Gross				June 30,
(In millions)	2009		16 & 17(a)		2010		operations		Other(b)		write-offs(c)		Recoveries(c)		2010
Commercial
CLL
Americas	$	1,179	$	66	$	1,245	$	630	$	(10)	$	(558)	$	55	$	1,362
Europe		575		0		575		137		(70)		(288)		28		382
Asia		244		(10)		234		108		(23)		(94)		9		234
Other		11		0		11		(1)		(2)		0		0		8
Total CLL		2,009		56		2,065		874		(105)		(940)		92		1,986
Energy Financial Services		28		0		28		24		1		0		0		53
GECAS		104		0		104		35		0		(89)		0		50
Other		34		0		34		18		0		(3)		1		50
Total Commercial		2,175		56		2,231		951		(104)		(1,032)		93		2,139
Real Estate
Debt		1,358		(3)		1,355		548		(4)		(310)		1		1,590
Business Properties		136		45		181		97		(7)		(64)		0		207
Total Real Estate		1,494		42		1,536		645		(11)		(374)		1		1,797
Consumer
Non-U.S. residential
mortgages		892		0		892		170		(103)		(180)		49		828
Non-U.S. installment
and revolving credit		1,106		0		1,106		615		(113)		(935)		281		954
U.S. installment and
revolving credit		1,551		1,602		3,153		1,570		(1)		(2,320)		233		2,635
Non-U.S. auto		292		0		292		73		(43)		(191)		92		223
Other		292		0		292		163		(35)		(217)		43		246
Total Consumer		4,133		1,602		5,735		2,591		(295)		(3,843)		698		4,886
Total	$	7,802	$	1,700	$	9,502	$	4,187	$	(410)	$	(5,249)	$	792	$	8,822

• Reflects the effects of our adoption of ASU 2009-16 & 17 on January 1, 2010.

(b)       Other primarily included the effects of currency exchange.

(c)       Net write-offs (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 12 for supplemental information about the credit quality of financing receivables and allowance for losses on financing receivables.