Current Receivables

3 Months Ended

Mar. 31, 2017

Current Receivables [Abstract]

Current Receivables

NOTE 4.CURRENT RECEIVABLES

	Consolidated(a)(b)				GE(c)
(In millions)	March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
Current receivables		22,560		24,935		13,525		13,562
Allowance for losses		(886)		(858)		(879)		(847)
Total	$	21,675	$	24,076	$	12,646	$	12,715

• Included GE industrial customer receivables sold to a GE Capital affiliate and recorded onGE Capital’s balance sheet of $9,965 million and $12,304 million at March 31, 2017 and December 31, 2016, respectively. The consolidated total included a deferred purchase price receivable of $415 million and $483 million at March 31, 2017 and December 31, 2016, respectively, related to our Receivables Facility.
• In order to manage the credit exposure, the Company sells additional current receivables to third parties outside the Receivables Facility, substantially all of which are serviced by the Company. The outstanding balance of these current receivables was $2,131 million and $3,821 million at March 31, 2017 and December 31, 2016, respectively. Of these balances, $905 million and $2,504 million was sold by GE to GE Capital prior to the sale to third parties at March 31, 2017 and December 31, 2016, respectively. At March 31, 2017 and December 31, 2016, our maximum exposure to loss under the limited recourse arrangements is $96 million and $215 million, respectively.
• GE current receivables balances at March 31, 2017 and December 31, 2016, before allowance for losses, included $8,465 million and $8,927 million, respectively, from sales of goods and services to customers. The remainder of the balances primarily relates to supplier advances, revenue sharing programs and other non-income based tax receivables.

receivables FACIlITY

The Company has a $3,000million revolving Receivables Facility under which receivables are sold directly to third-party purchasers. The third-party purchasers have no recourse to other assets of the Company in the event of non-payment by the debtors. Where the purchasing entity is a bank multi-seller commercial paper conduit, assets transferred by other parties to that entity form a majority of the entity’s assets. Upon sale of the receivables, we receive proceeds of cash and a deferred purchase price (DPP). The DPP is an interest in specified assets of the purchasers (the receivables sold by GE Capital) that entitles GE Capital to the residual cash flows of those specified assets.

During the three months ended March 31, 2017, GE sold current receivables of $4,736million to GE Capital, which GE Capital sold immediately to third parties under the Receivables Facility. GE Capital continues to service the current receivables for the purchasers. The Company received total cash collections of $4,313million on previously sold current receivables owed to the purchasing entities. The purchasing entities reinvested $3,645 million of those collections to purchase newly originated current receivables from the Company and paid $224 million to reduce their DPP obligation to the Company.

At March 31, 2017, GE Capital, under the Receivables Facility, serviced $2,999million of transferred receivables that remain outstanding.

Given the short-term nature of the underlying receivables, discount rates and prepayments are not factors in determining the value of the DPP. Collections on the DPP are presented within Cash flows from operating activities in the consolidated column in the Statement of Cash Flows. As the performance of the transferred current receivables is similar to the performance of our other current receivables, delinquencies are not expected to be significant.