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Financing Receivables and Allowance for Losses on Financing Receivables
 6 Months Ended
Jun. 30, 2016
Financing Receivables And Allowance For Losses [Abstract]  
Financing Receivables And Allowance For Losses On Financing Receivables

NOTE 5. GE Capital FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES

FINANCING RECEIVABLES, NET
(In millions)June 30, 2016December 31, 2015
Loans, net of deferred income$19,045$20,115
Investment in financing leases, net of deferred income5,0274,969
24,07125,084
Allowance for losses(74)(81)
Financing receivables – net(a)$23,998$25,003

(a) Included $11.8 billion and $12.9 billion of receivables sold by GE to GE Capital at June 30, 2016 and December 31, 2015, respectively.

ALLOWANCE FOR LOSSES
(In millions)20162015
Balance at January 1$81$93
Provision1929
Net write-offs(a)(26)(40)
Other(b)-9
Balance at June 30$74$91

  • 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.
  • Other primarily includes the effects of currency exchange.

We manage our financing receivable portfolio using delinquency and nonaccrual data as key performance indicators. At June 30, 2016, $1,036 million (4.3%), $483 million (2.0%) and $354 million (1.5%) of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively. Of the $354 million of nonaccrual financing receivables at June 30, 2016, primarily related to aviation financing, $102 million are currently paying in accordance with the contractual terms. At December 31, 2015, $622 million (2.5%), $201 million (0.8%) and $256 million (1.0%) of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively.

The recorded investment in impaired loans at June 30, 2016 and December 31, 2015 was $263 million and $175 million, respectively, and was primarily related to aviation financing. The method used to measure impairment for these loans is primarily based on collateral value. At June 30, 2016, troubled debt restructurings included in impaired loans were $99 million, the vast majority related to aviation financing.