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Financing Receivables, Allowance For Losses On Financing Receivables and Supplemental Information on Credit Quality (Tables)
 12 Months Ended
Dec. 31, 2013
Loans and Leases Receivable Disclosure [Abstract]  
Financing receivables
December 31 (In millions)2013 2012
      
Loans, net of deferred income(a)$ 231,268 $240,634
Investment in financing leases, net of deferred income  26,939  32,471
   258,207  273,105
Less allowance for losses  (5,178)  (4,944)
Financing receivables – net(b)$ 253,029 $268,161
      

(a)        Deferred income was $2,013 million and $2,184 million at December 31, 2013 and 2012, respectively.

(b)       Financing receivables at December 31, 2013 and 2012 included $544 million and $750 million, respectively, relating to loans that had been acquired in a transfer but have been subject to credit deterioration since origination.

 
Net Investment in Financing Leases
 Total financing leases Direct financing leases(a) Leveraged leases(b)
December 31 (In millions)2013 2012 2013 2012 2013 2012
                  
Total minimum lease payments receivable$ 29,970 $36,451 $ 24,571 $29,416 $ 5,399 $7,035
 Less principal and interest on third-party                 
    non-recourse debt  (3,480)  (4,662)   -   -   (3,480)  (4,662)
Net rentals receivables  26,490  31,789   24,571  29,416   1,919  2,373
Estimated unguaranteed residual value of                 
    leased assets  5,073  6,346   3,067  4,272   2,006  2,074
Less deferred income  (4,624)  (5,664)   (3,560)  (4,453)   (1,064)  (1,211)
Investment in financing leases, net of                 
    deferred income  26,939  32,471   24,078  29,235   2,861  3,236
Less amounts to arrive at net investment                 
      Allowance for losses  (202)  (198)   (192)  (193)   (10)  (5)
      Deferred taxes  (4,075)  (4,506)   (1,783)   (2,245)   (2,292)   (2,261)
Net investment in financing leases$ 22,662 $27,767 $ 22,103 $26,797 $ 559 $970
                  
                  

(a)       Included $317 million and $330 million of initial direct costs on direct financing leases at December 31, 2013 and 2012, respectively.

(b)       Included pre-tax income of $31 million and $81 million and income tax of $11 million and $32 million during 2013 and 2012, respectively. Net investment credits recognized on leveraged leases during 2013 and 2012 were insignificant.

 
Contractual Maturities
 Total Net rentals
(In millions)loans receivable
      
Due in     
    2014$ 54,971 $ 8,184
    2015  19,270   6,114
    2016  19,619   4,209
    2017  17,281   2,733
    2018  14,714   1,798
    2019 and later  43,121   3,452
   168,976   26,490
    Consumer revolving loans  62,292   -
Total$ 231,268 $ 26,490
      
Financing receivables - net
    
December 31 (In millions)2013 2012
      
Commercial     
CLL     
Americas$ 68,585 $ 72,517
Europe (a)  37,962   37,037
Asia  9,469   11,401
Other (a)  451   603
Total CLL  116,467   121,558
      
Energy Financial Services  3,107   4,851
      
GECAS  9,377   10,915
      
Other  318   486
Total Commercial  129,269   137,810
      
Real Estate  19,899   20,946
      
Consumer     
Non-U.S. residential mortgages  30,501   33,350
Non-U.S. installment and revolving credit  13,677   17,816
U.S. installment and revolving credit  55,854   50,853
Non-U.S. auto  2,054   4,260
Other  6,953   8,070
Total Consumer  109,039   114,349
      
Total financing receivables  258,207   273,105
      
Less allowance for losses  (5,178)   (4,944)
Total financing receivables – net$ 253,029 $ 268,161
      
      

(a)       During 2013, we transferred our European equipment services portfolio from CLL Other to CLL Europe. Prior-period amounts were reclassified to conform to the current period presentation.

 
Schedule of allowance for losses
 Balance at Provision       Balance at
 January 1, charged to    Gross   December 31,
(In millions)2013 operations Other(a)write-offs(b)Recoveries(b)2013
                  
Commercial                 
CLL                 
Americas$490 $292 $(1) $(422) $114 $473
Europe 445  321  12  (441)  78  415
Asia 80  124  (11)  (115)  12  90
Other 6  (3)  –   (3)  –   – 
Total CLL 1,021  734  –   (981)  204  978
                  
                  
Energy Financial Services 9  (1)  –   –   –   8
                  
GECAS 8  9  –   –   –   17
                  
Other 3  (1)  –   (2)  2  2
Total Commercial 1,041  741  –   (983)  206  1,005
                  
Real Estate 320  28  (4)  (163)  11  192
                  
Consumer                 
Non-U.S. residential mortgages 480  269  10  (458)  57  358
Non-U.S. installment and revolving credit 582  589  (93)  (967)  483  594
U.S. installment and revolving credit 2,282  3,006  (51)  (2,954)  540  2,823
Non-U.S. auto 67  58  (13)  (126)  70  56
Other 172  127  11  (236)  76  150
Total Consumer 3,583  4,049  (136)  (4,741)  1,226  3,981
Total$4,944 $4,818 $(140) $(5,887) $1,443 $5,178
                  
                  

(a)        Other primarily included dispositions and the effects of currency exchange.

(b)        Net write-offs (gross write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as a result of 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   December 31,
(In millions)2012 operations Other(a)write-offs(b)Recoveries(b)2012
                  
Commercial                 
CLL                 
Americas$ 889 $ 109 $ (51) $ (568) $ 111 $ 490
Europe  400   374   (3)   (390)   64   445
Asia  157   37   (3)   (134)   23   80
Other  4   13   (1)   (10)   -   6
Total CLL  1,450   533   (58)   (1,102)   198   1,021
                  
Energy Financial Services  26   4   -   (24)   3   9
                  
GECAS  17   4   -   (13)   -   8
                  
Other  37   1   (20)   (17)   2   3
Total Commercial  1,530   542   (78)   (1,156)   203   1,041
                  
Real Estate  1,089   72   (44)   (810)   13   320
                  
Consumer                 
Non-U.S. residential mortgages  545   112   8   (261)   76   480
Non-U.S. installment and revolving credit  690   290   24   (974)   552   582
U.S. installment and revolving credit  2,008   2,666   (24)   (2,906)   538   2,282
Non-U.S. auto  101   18   (4)   (146)   98   67
Other  199   132   18   (257)   80   172
Total Consumer  3,543   3,218   22   (4,544)   1,344   3,583
Total$ 6,162 $ 3,832 $ (100) $ (6,510) $ 1,560 $ 4,944
                  
                  

  • 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 a result of 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   December 31,
(In millions)2011 operations(a)Other(b)write-offs(c)Recoveries(c)2011
                  
Commercial                 
CLL                 
Americas$1,288 $281 $(96) $(700) $116 $889
Europe 429  195  (5)  (286)  67  400
Asia 222  105  13  (214)  31  157
Other 6  3  (3)  (2)  –   4
Total CLL 1,945  584  (91)  (1,202)  214  1,450
                  
                  
Energy Financial Services 22  –   (1)  (4)  9  26
                  
GECAS 20  –   –   (3)  –   17
                  
Other 58  23  –   (47)  3  37
Total Commercial 2,045  607  (92)  (1,256)  226  1,530
                  
Real Estate 1,488  324  2  (747)  22  1,089
                  
Consumer                 
Non-U.S. residential                 
   mortgages 688  116  (13)  (295)  49  545
Non-U.S. installment                 
   and revolving credit 898  470  (29)  (1,198)  549  690
U.S. installment and                 
   revolving credit 2,333  2,241  1  (3,095)  528  2,008
Non-U.S. auto 168  30  (4)  (216)  123  101
Other 259  142  (20)  (272)  90  199
Total Consumer 4,346  2,999  (65)  (5,076)  1,339  3,543
Total$7,879 $3,930 $(155) $(7,079) $1,587 $6,162
                  
                  

  • Included a provision of $77 million at Consumer related to the July 1, 2011 adoption of ASU 2011-02.
  • 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 a result of 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.

 
Past Due Financing Receivables
 2013 2012 
 Over 30 days Over 90 days Over 30 days Over 90 days 
December 31past due past due(a) past due past due 
         
Commercial        
CLL        
    Americas 1.1% 0.5% 1.1% 0.5%
    Europe 3.8  2.1  3.7  2.1 
    Asia 0.5  0.3  0.9  0.6 
    Other -  -  0.1  - 
Total CLL 1.9  1.0  1.9  1.0 
         
Energy Financial Services -  -  -  - 
         
GECAS -  -  -  - 
         
Other 0.1  0.1  2.8  2.8 
Total Commercial 1.7  0.9  1.7  0.9 
         
Real Estate 1.2  1.1  2.3  2.2 
         
Consumer        
Non-U.S. residential mortgages(b) 11.2  6.9  12.0  7.5 
Non-U.S. installment and revolving credit 3.7  1.1  3.8  1.1 
U.S. installment and revolving credit 4.4  2.0  4.6  2.0 
Non-U.S. auto 4.4  0.7  3.1  0.5 
Other 2.5  1.4  2.8  1.7 
Total Consumer 6.1  3.2  6.5  3.4 
         
Total 3.5% 1.9% 3.7% 2.1%
         
         

(a)       Included $1,197 million of Consumer loans at December 31, 2013, which are over 90 days past due and continue to accrue interest until the accounts are written off in the period that the account becomes 180 days past due.

(b)       Consumer loans secured by residential real estate (both revolving and closed-end loans) are written down to the fair value of collateral, less costs to sell, no later than when they become 180 days past due.

 
Nonaccrual Financing Receivables
 Nonaccrual financing Nonearning financing 
 receivables (a) receivables (a) 
December 31 (Dollars in millions)2013 2012 2013 2012 
             
Commercial            
             
CLL            
   Americas$ 1,275 $ 1,951 $ 1,243 $ 1,333 
   Europe  1,046   1,740   1,046   1,299 
   Asia  413   395   413   193 
   Other  -   52   -   52 
Total CLL  2,734   4,138   2,702   2,877 
             
Energy Financial Services  4   -   4   - 
             
GECAS  -   3   -   - 
             
Other  6   25   6   13 
Total Commercial  2,744(b)  4,166(b)  2,712   2,890 
             
Real Estate  2,551(c)  4,885(c)  2,301   444 
             
Consumer            
Non-U.S. residential mortgages  2,161   2,598   1,766   2,567 
Non-U.S. installment and revolving credit  88   213   88   213 
U.S. installment and revolving credit  2   1,026   2   1,026 
Non-U.S. auto  18   24   18   24 
Other  351   427   345   351 
Total Consumer  2,620(d)  4,288(d)  2,219   4,181 
Total$ 7,915 $ 13,339 $ 7,232 $ 7,515 
             
             
Allowance for losses percentage            
             
Commercial  36.6%  25.0%  37.1%  36.0%
Real Estate  7.5   6.6   8.3   72.1 
Consumer  151.9   83.6   179.4   85.7 
             
Total  65.4%  37.1%  71.6%  65.8%
             

  • During the fourth quarter of 2013, we revised our methods for classifying financing receivables as nonaccrual and nonearning to more closely align with regulatory guidance. Given that the revised methods result in nonaccrual and nonearning amounts that are substantially the same we plan to discontinue the reporting of nonearning financing receivables in the first quarter of 2014. Further information on our nonaccrual and nonearning financing receivables is provided in Note 1 to the consolidated financial statements.
  • Included $1,397 million and $2,647 million at December 31, 2013 and 2012, respectively, that are currently paying in accordance with their contractual terms.
  • Included $2,308 million and $4,461 million at December 31, 2013 and 2012, respectively, that are currently paying in accordance with their contractual terms.
  • Included $527 million and $734 million at December 31, 2013 and 2012, respectively, that are currently paying in accordance with their contractual terms.

 
Impaired Loans
 With no specific allowance With a specific allowance
  Recorded Unpaid Average  Recorded Unpaid   Average
 investment principal investment investment principal Associated investment
December 31 (In millions)in loans balance in loans in loans balance allowance in loans
                     
2013                    
                     
Commercial                    
CLL                    
    Americas$ 1,670 $ 2,187 $ 2,154 $ 417 $ 505 $ 96 $ 497
    Europe  802   1,589   956   580   921   211   536
    Asia  302   349   180   111   125   20   93
    Other  -   -   -   -   -   -   12
Total CLL  2,774   4,125   3,290   1,108   1,551   327   1,138
                     
Energy Financial Services  -   -   -   4   4   1   2
                     
GECAS  -   -   -   -   -   -   1
                     
Other  2   3   9   4   4   -   5
Total Commercial(a)  2,776   4,128   3,299   1,116   1,559   328   1,146
                     
Real Estate(b)  2,615   3,036   3,058   1,245   1,507   74   1,688
                     
Consumer(c)  109   153   98   2,879   2,948   567   3,058
Total$ 5,500 $ 7,317 $ 6,455 $ 5,240 $ 6,014 $ 969 $ 5,892
                     

(a)       We recognized $218 million and $253 million of interest income, including $60 million and $92 million on a cash basis, for the years ended December 31, 2013 and 2012, respectively, principally in our CLL Americas business. The total average investment in impaired loans for the years ended December 31, 2013 and 2012 was $4,445 million and $5,688 million, respectively.

(b)       We recognized $187 million and $329 million of interest income, including $135 million and $237 million on a cash basis, for the years ended December 31, 2013 and 2012, respectively. The total average investment in impaired loans for the years ended December 31, 2013 and 2012 was $4,746 million and $7,525 million, respectively.

(c)       We recognized $221 million and $168 million of interest income, including $3 million and $4 million on a cash basis, for the years ended December 31, 2013 and 2012, respectively, principally in our Consumer U.S. installment and revolving credit portfolios. The total average investment in impaired loans for the years ended December 31, 2013 and 2012 was $3,156 million and $3,049 million, respectively.

 
Financing Receivables And Allowance For Losses
  
    
December 31 (In millions)2013 2012
      
Commercial     
Non-impaired financing receivables$ 125,377 $ 132,741
General reserves  677   554
      
Impaired loans  3,892   5,069
Specific reserves  328   487
      
Real Estate     
Non-impaired financing receivables$ 16,039 $ 15,253
General reserves  118   132
      
Impaired loans  3,860   5,693
Specific reserves  74   188
      
Consumer     
Non-impaired financing receivables$ 106,051 $ 111,141
General reserves  3,414   2,910
      
Impaired loans  2,988   3,208
Specific reserves  567   673
      
Total     
Non-impaired financing receivables$ 247,467 $ 259,135
General reserves  4,209   3,596
      
Impaired loans  10,740   13,970
Specific reserves  969   1,348
      
Commercial Portfolio Segment [Member]
  
Supplemental Information About Credit Quality Indicators [Line Items]  
Credit Quality Indicators
 Secured
December 31 (In millions)A B C Total
            
2013           
            
CLL           
    Americas$ 65,444 $ 1,587 $ 1,554 $ 68,585
    Europe (a)  35,968   479   1,019   37,466
    Asia  8,962   140   218   9,320
    Other (a)  101   -   -   101
Total CLL  110,475   2,206   2,791   115,472
            
Energy Financial Services  2,969   9   -   2,978
            
GECAS  9,175   50   152   9,377
            
Other  318   -   -   318
Total$ 122,937 $ 2,265 $ 2,943 $ 128,145

2012           
            
CLL           
    Americas$ 68,360 $ 1,775 $ 2,382 $ 72,517
    Europe(a)  33,756   1,188   1,256   36,200
    Asia  10,732   117   372   11,221
    Other(a)  159   -   94   253
Total CLL  113,007   3,080   4,104   120,191
            
Energy Financial Services  4,725   -   -   4,725
            
GECAS  10,681   223   11   10,915
            
Other  486   -   -   486
Total$ 128,899 $ 3,303 $ 4,115 $ 136,317
            

(a)       During 2013, we transferred our European equipment services portfolio from CLL Other to CLL Europe. Prior-period amounts were reclassified to conform to the current period presentation.

 
Commercial Real Estate Portfolio Segment [Member]
  
Supplemental Information About Credit Quality Indicators [Line Items]  
Credit Quality Indicators
 Loan-to-value ratio
 2013 2012
 Less than 80% to Greater than Less than 80% to Greater than
December 31 (In millions)80% 95% 95% 80% 95% 95%
                  
Debt$ 15,576 $ 1,300 $ 2,111 $ 13,570 $ 2,572 $ 3,604
                  
Consumer Portfolio Segment [Member]
  
Supplemental Information About Credit Quality Indicators [Line Items]  
Credit Quality Indicators
 Loan-to-value ratio
 2013 2012
 80% or Greater than Greater than 80% or Greater than Greater than
December 31 (In millions)less 80% to 90% 90% less 80% to 90% 90%
                  
Non-U.S. residential mortgages$ 17,224 $ 5,130 $ 8,147 $ 18,568 $ 5,699 $ 9,083

 Internal ratings translated to approximate credit bureau equivalent score
 2013 2012
 671 or 626 to 625 or 671 or 626 to 625 or
(In millions)higher 670 less higher 670 less
                  
Non-U.S. installment and                 
    revolving credit$ 8,310 $ 2,855 $ 2,512 $ 10,228 $ 4,267 $ 3,321
U.S. installment and                 
    revolving credit  36,723   11,101   8,030   33,204   9,753   7,896
Non-U.S. auto  1,395   373   286   3,141   666   453