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Financing Receivables and Allowance For Losses On Financing Receivables
9 Months Ended
Sep. 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

Financing receivables – net, consisted of the following.

       At
       September 30, December 31,
(In millions)      2011 2010
            
Loans, net of deferred income(a)      $260,552 $275,877
Investment in financing leases, net of deferred income       39,854  44,390
        300,406  320,267
Less allowance for losses       (6,669)  (8,033)
Financing receivables – net(b)      $293,737 $312,234
            
            

  • Deferred income was $2,313 million and $2,351 million at September 30, 2011 and December 31, 2010, respectively.
  • Financing receivables at September 30, 2011 and December 31, 2010 included $1,221 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
       September 30, December 31,
(In millions)      2011 2010
            
Commercial           
CLL           
Americas(a)      $81,072 $88,558
Europe       37,130  37,498
Asia       11,914  11,943
Other(a)       469  664
Total CLL       130,585  138,663
            
Energy Financial Services       5,977  7,011
            
GECAS       11,841  12,615
            
Other       1,388  1,788
Total Commercial financing receivables       149,791  160,077
            
Real Estate           
Debt       25,748  30,249
Business Properties       8,630  9,962
Total Real Estate financing receivables       34,378  40,211
            
Consumer           
Non-U.S. residential mortgages       38,708  40,011
Non-U.S. installment and revolving credit       19,801  20,132
U.S. installment and revolving credit       43,249  43,974
Non-U.S. auto       6,462  7,558
Other       8,017  8,304
Total Consumer financing receivables       116,237  119,979
            
Total financing receivables       300,406  320,267
            
Less allowance for losses       (6,669)  (8,033)
Total financing receivables – net      $293,737 $312,234
            
            

  • During the third quarter of 2011, we transferred our Railcar lending and leasing portfolio from CLL Other to CLL Americas. Prior-period amounts were reclassified to conform to the current-period presentation.

 

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   September 30,
(In millions)2011 operations(a)Other(b)write-offs(c)Recoveries(c)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)  –   –   5
Total CLL 1,945  460  (50)  (956)  154  1,553
                  
                  
Energy Financial Services 22  10  –   (4)  8  36
                  
GECAS 20  (4)  –   (2)  –   14
                  
Other 58  13  –   (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  –   (107)  4  163
Total Real Estate 1,488  225  13  (601)  16  1,141
                  
Consumer                 
Non-U.S. residential                 
   mortgages 803  151  11  (229)  43  779
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 4,500  2,284  27  (3,965)  1,036  3,882
Total$8,033 $2,988 $(10) $(5,559) $1,217 $6,669
                  
                  

  • Included a provision of $77 million at Consumer related to the July 1, 2011 adoption of ASU 2011-02. See Note 12.
  • 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   September 30,
(In millions)2009 16 & 17(a) 2010 operations Other(b) write-offs(c) Recoveries(c) 2010
                        
Commercial                       
CLL                       
Americas$1,180 $66 $1,246 $823 $(20) $(787) $95 $1,357
Europe 575  –   575  190  (47)  (348)  41  411
Asia 244  (10)  234  131  (10)  (118)  15  252
Other 10  –   10  (3)  –   –   –   7
Total CLL 2,009  56  2,065  1,141  (77)  (1,253)  151  2,027
                        
                        
Energy Financial Services 28  –   28  56  1  –   –   85
                        
GECAS 104  –   104  17  –   (96)  –   25
                        
Other 34  –   34  23  (2)  (3)  1  53
Total Commercial 2,175  56  2,231  1,237  (78)  (1,352)  152  2,190
                        
Real Estate                       
Debt 1,358  (3)  1,355  794  5  (505)  –   1,649
Business Properties 136  45  181  124  (7)  (92)  2  208
Total Real Estate 1,494  42  1,536  918  (2)  (597)  2  1,857
                        
Consumer                       
Non-U.S. residential                       
   mortgages 892  –   892  224  (57)  (259)  67  867
Non-U.S. installment                       
   and revolving credit 1,106  –   1,106  810  (46)  (1,318)  422  974
U.S. installment and                       
   revolving credit 1,551  1,602  3,153  2,342  (3)  (3,285)  344  2,551
Non-U.S. auto 292  –   292  83  (36)  (269)  128  198
Other 292  –   292  210  (24)  (298)  64  244
Total Consumer 4,133  1,602  5,735  3,669  (166)  (5,429)  1,025  4,834
Total$7,802 $1,700 $9,502 $5,824 $(246) $(7,378) $1,179 $8,881
                        
                        

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

 

See Note 12 for supplemental information about the credit quality of financing receivables and allowance for losses on financing receivables.