GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES

9 Months Ended

Sep. 30, 2017

GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES



FINANCING RECEIVABLES, NET
(In millions)	September 30, 2017			December 31, 2016

Loans, net of deferred income	$	20,039		$	21,101
Investment in financing leases, net of deferred income	4,923			4,998
	24,962			26,099
Allowance for losses	(62		)	(58		)
Financing receivables – net	$	24,900		$	26,041

We manage our financing receivables portfolio using delinquency and nonaccrual data as key performance indicators. At September 30, 2017, $718 million (2.9%), $165 million (0.7%) and $317 million (1.3%) of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively. Of the $317 million of nonaccrual financing receivables at September 30, 2017, the vast majority are secured by collateral and $271 million are currently paying in accordance with the contractual terms. At December 31, 2016, $811 million (3.1%), $407 million (1.6%) and $322 million (1.2%) 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 September 30, 2017 and December 31, 2016 was $352 million and $262 million, respectively. The method used to measure impairment for these loans is primarily based on collateral value. At September 30, 2017, troubled debt restructurings included in impaired loans were $137 million.