Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2016

Variable Interest Entities [Abstract]

ASSETS AND LIABILITIES OF CONSOLIDATED VIEs

				GE Capital
				Trade receivables			Other
(In millions)	GE			securitization(a)			securitization(a)		Other	Total

September 30, 2016
Assets
Financing receivables, net	$	-	$	-		$	-	$	716	$	716
Current receivables		69		2,650	(b)		772		-		3,491
Investment securities		-		-			-		1,450		1,450
Other assets		256		-			754		1,060		2,070
Total	$	325	$	2,650		$	1,526	$	3,226	$	7,727

Liabilities
Borrowings	$	8	$	-		$	1,271	$	802	$	2,081
Non-recourse borrowings		-		1,970			205		-		2,175
Other liabilities		243		32			35		1,273		1,583
Total	$	251	$	2,002		$	1,511	$	2,075	$	5,839

December 31, 2015
Assets
Financing receivables, net	$	-	$	-		$	-	$	882	$	882
Current receivables		385		3,506	(b)		-		-		3,891
Investment securities		-		-			-		1,404		1,404
Other assets		2,482		24			-		1,068		3,574
Total	$	2,867	$	3,530		$	-	$	3,354	$	9,751

Liabilities
Borrowings	$	221	$	-		$	-	$	960	$	1,181
Non-recourse borrowings		-		3,022			-		61		3,083
Other liabilities		2,289		34			-		1,234		3,557
Total	$	2,510	$	3,056		$	-	$	2,255	$	7,821

We provide servicing to the CSEs and are contractually permitted to commingle cash collected from customers on financing receivables sold to CSE investors with our own cash prior to payment to a CSE, provided our short-term credit rating does not fall below A-1/P-1. These CSEs also owe us amounts for purchased financial assets and scheduled interest and principal payments. At September 30, 2016 and December 31, 2015, the amounts of commingled cash owed to the CSEs were $969 million and $1,093 million, respectively, and the amounts owed to us by CSEs were an insignificant amount and $7 million, respectively.
In June 2016, we completed the sale of our Appliances business to Haier and sold all of the Appliances receivables purchased by the securitization trust to Haier for $773 million. Further information about the sale is provided in Note 2. At December 31, 2015, included $737 million of receivables purchased from Appliances.

Unconsolidated VIE

INVESTMENTS IN UNCONSOLIDATED VIEs

(In millions)	September 30, 2016		December 31, 2015

Other assets and investment securities	$	5,495	$	745
Financing receivables – net		13		13
Total investments		5,508		758
Contractual obligations to fund investments, guarantees or revolving lines of credit		704		29
Total exposure(a)	$	6,212	$	787

(a) The increase in the unconsolidated VIE disclosure above is a result of adoption of ASU 2015-02 on January 1, 2016. These investments, prior to the adoption of ASU 2015-02, were not considered VIEs. Further information is provided in Note 1.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details