NOTE 4. CURRENT RECEIVABLES



	Consolidated(a)(b)						GE(c)(d)
December 31 (In millions)	2017			2016			2017			2016
Power	$	9,735		$	10,055		$	4,664		$	5,134
Renewable Energy	1,666			1,903			940			1,293
Oil & Gas	5,952			4,259			5,830			2,478
Aviation	3,738			3,542			1,875			1,731
Healthcare	3,725			3,996			2,052			2,068
Transportation	287			377			183			186
Lighting	105			349			36			173
Corporate and eliminations	304			454			342			499
	25,511			24,935			15,922			13,562
Less Allowance for losses	(1,073		)	(858		)	(1,055		)	(847		)
Total	$	24,438		$	24,076		$	14,867		$	12,715


(a)	Included GE industrial customer receivables sold to a GE Capital affiliate and recorded on GE Capital's balance sheet of $10,370 million and $12,304 million at December 31, 2017 and 2016, respectively. The consolidated total included a deferred purchase price receivable of $388 million and $483 million at December 31, 2017 and 2016, respectively, related to our Receivables Facility.

(b)

In order to manage short-term liquidity and 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 $2,541 million and $3,821 million at December 31, 2017 and 2016, respectively. Of these balances, $1,621 million and $2,504 million was sold by GE to GE Capital prior to the sale to third parties at December 31, 2017 and 2016, respectively. At December 31, 2017 and 2016, our maximum exposure to loss under the limited recourse arrangements is $90 million and $215 million, respectively.


(c)	GE current receivables of $312 million and $299 million at December 31, 2017 and 2016, respectively, arose from sales, principally of Aviation goods and services, on open account to various agencies of the U.S. government. As a percentage of GE revenues, approximately 4% of GE sales of goods and services were to the U.S. government in 2017, compared with 3% in 2016 and 4% in 2015.


(d)	GE current receivables balances at December 31, 2017 and 2016, before allowance for losses, included $10,671 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 $3,750 million 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 year ended December 31, 2017, GE Industrial sold current receivables of $20,863 million 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 $20,216 million on previously sold current receivables owed to the purchasing entities. The purchasing entities reinvested $17,884 million of those collections and paid $2,462 million to purchase newly originated current receivables from the Company. In addition, they paid $553 million to reduce the DPP obligation to the Company.

During the year ended December 31, 2017, the Company recorded a loss of $122 million on sales of current receivables to the third-party purchasers.

At December 31, 2017 and 2016, GE Capital, under the Receivables Facility, serviced $3,222 million and $2,575 million of transferred receivables that remain outstanding, respectively. During the year ended December 31, 2017, the purchasers paid GE Capital servicing fees of $29 million.

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.