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Financing Receivables and Allowance For Losses On Financing Receivables
 6 Months Ended
Jun. 30, 2012
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

       June 30, December 31,
(In millions)      2012 2011
            
Loans, net of deferred income(a)      $243,625 $256,895
Investment in financing leases, net of deferred income       35,564  38,142
        279,189  295,037
Less allowance for losses       (5,205)  (6,190)
Financing receivables – net(b)      $273,984 $288,847
            
            

  • Deferred income was $2,197 million and $2,329 million at June 30, 2012 and December 31, 2011, respectively.
  • Financing receivables at June 30, 2012 and December 31, 2011 included $895 million and $1,062 million, respectively, of loans that were acquired in a transfer but have been subject to credit deterioration since origination per 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

       June 30, December 31,
(In millions)      2012 2011
            
Commercial           
CLL           
Americas      $77,241 $80,505
Europe       34,722  36,899
Asia       11,313  11,635
Other       711  436
Total CLL       123,987  129,475
            
Energy Financial Services       5,159  5,912
            
GECAS       12,046  11,901
            
Other       587  1,282
Total Commercial financing receivables       141,779  148,570
            
Real Estate           
Debt       22,409  24,501
Business Properties       5,301  8,248
Total Real Estate financing receivables       27,710  32,749
            
Consumer           
Non-U.S. residential mortgages       33,826  35,550
Non-U.S. installment and revolving credit       17,960  18,544
U.S. installment and revolving credit       45,531  46,689
Non-U.S. auto       4,740  5,691
Other       7,643  7,244
Total Consumer financing receivables       109,700  113,718
            
Total financing receivables       279,189  295,037
            
Less allowance for losses       (5,205)  (6,190)
Total financing receivables – net      $273,984 $288,847
            

Allowance for Losses on Financing Receivables

 Balance at Provision       Balance at
 January 1, charged to    Gross   June 30,
(In millions)2012 operations Other(a)write-offs(b)Recoveries(b)2012
                  
Commercial                 
CLL                 
Americas$889 $57 $(30) $(306) $52 $662
Europe 400  158  (15)  (95)  36  484
Asia 157  13  (3)  (89)  9  87
Other 4  –   (1)  (2)  –   1
Total CLL 1,450  228  (49)  (492)  97  1,234
                  
                  
Energy Financial Services 26  10  –   (24)  –   12
                  
GECAS 17  26  –   (11)  –   32
                  
Other 37  5  (20)  (10)  –   12
Total Commercial 1,530  269  (69)  (537)  97  1,290
                  
Real Estate                 
Debt 949  17  (8)  (281)  5  682
Business Properties 140  28  (7)  (58)  2  105
Total Real Estate 1,089  45  (15)  (339)  7  787
                  
Consumer                 
Non-U.S. residential                 
   mortgages 546  65  (2)  (165)  37  481
Non-U.S. installment                 
   and revolving credit 717  220  (8)  (543)  279  665
U.S. installment and                 
   revolving credit 2,008  937  (5)  (1,488)  272  1,724
Non-U.S. auto 101  15  (9)  (77)  49  79
Other 199  55  8  (124)  41  179
Total Consumer 3,571  1,292  (16)  (2,397)  678  3,128
Total$6,190 $1,606 $(100) $(3,273) $782 $5,205
                  
                  

  • Other primarily included transfers to held for sale and the effects of currency exchange.
  • Net write-offs (gross 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 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$1,288 $219 $(72) $(366) $55 $1,124
Europe 429  73  30  (133)  34  433
Asia 222  77  10  (147)  18  180
Other 6  –   –   –   –   6
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 689  30  32  (112)  28  667
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 4,386  1,367  113  (2,742)  684  3,808
Total$7,919 $1,932 $91 $(3,823) $812 $6,931
                  
                  

  • Other primarily included transfers to held for sale and the effects of currency exchange.
  • Net write-offs (gross 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.