XML 51 R36.htm IDEA: XBRL DOCUMENT v3.20.2
FINANCING RECEIVABLES AND ALLOWANCES (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of Financing Receivables, Net
CURRENT RECEIVABLES
ConsolidatedGE
(In millions)September 30, 2020December 31, 2019September 30, 2020December 31, 2019
Customer receivables(a)
$13,862 $12,594 $9,500 $9,507 
Sundry receivables(b)(c)
4,652 5,049 4,861 5,247 
Allowance for credit losses(d)
(1,212)(874)(1,210)(872)
Total current receivables
$17,302 $16,769 $13,151 $13,883 
(a) Includes Aviation receivables from CFM International (CFM) due to 737 MAX temporary fleet grounding of $801 million and $1,397 million as of September 30, 2020 and December 31, 2019, respectively. During 2020, CFM and Boeing reached an agreement to secure payment terms for engines delivered in 2019 and 2020, net of progress collections. Based on the agreement, the receivable is expected to be collected from Boeing through the first quarter of 2021.
(b) Includes supplier advances, revenue sharing programs receivables in our Aviation business, other non-income based tax receivables, primarily value-added tax related to our operations in various countries outside of the U.S., receivables from disposed businesses, including receivables for transactional services agreements and certain intercompany balances that eliminate upon consolidation. Revenue sharing program receivables in Aviation are amounts due from third parties who participate in engine programs by developing and supplying certain engine components through the life of the program. The participants share in program revenues, receive a share of customer progress payments and share costs related to discounts and warranties.
(c) Consolidated current receivables include deferred purchase price which represents our retained risk with respect to current customer receivables sold to third parties through one of the receivable facilities. The balance of the deferred purchase price held by GE Capital as of September 30, 2020 and December 31, 2019 was $480 million and $421 million, respectively.
(d) GE allowance for credit losses primarily increased due to net new provisions of $313 million, offset by write-offs and foreign currency impact.    Activity related to customer receivables sold by GE is as follows:
20202019
(In millions)GE CapitalThird PartiesGE CapitalThird Parties
Balance at January 1
$3,087 $6,757 $4,386 $7,880 
GE sales to GE Capital
24,630 — 30,243 — 
GE sales to third parties
— 1,063 — 4,206 
GE Capital sales to third parties
(13,757)13,757 (20,505)20,505 
Collections and other
(9,805)(18,119)(10,606)(26,209)
Reclassification from long-term customer receivables
207 — 265 — 
Balance at September 30
$4,362 (a)$3,458 $3,782 (a)$6,382 
(a) At September 30, 2020 and 2019, $640 million and $707 million, respectively, of the current receivables purchased and retained by GE Capital had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE cash flows from operating activities (CFOA) of claims by GE Capital on receivables sold with recourse was insignificant for the nine months ended September 30, 2020 and 2019.

LONG-TERM RECEIVABLESConsolidatedGE
(In millions)September 30, 2020December 31, 2019September 30, 2020December 31, 2019
Long-term customer receivables(a)$673 $906 $483 $506 
Long-term sundry receivables(b)1,525 1,504 1,726 1,834 
Allowance for credit losses(140)(128)(140)(128)
Total long-term receivables $2,058 $2,282 $2,069 $2,212 
(a) As of September 30, 2020 and December 31, 2019, GE Capital held $190 million and $400 million, respectively, of GE long-term customer receivables, of which $173 million and $312 million had been purchased with recourse (i.e., GE retains all or some risk of default). GE sold an insignificant amount of long-term customer receivables during the nine months ended September 30, 2020 and 2019.
(b) Includes supplier advances, revenue sharing programs receivables, other non-income based tax receivables and certain intercompany balances that eliminate upon consolidation.
Activity related to these facilities is included in the GE Capital sales to third parties line in the sales of GE current customer receivables table above and is as follows:
Nine months ended September 30 (In millions)
20202019
Customer receivables sold to receivables facilities$10,570 $16,062 
Total cash purchase price for customer receivables10,060 15,702 
Cash collections re-invested to purchase customer receivables8,865 13,287 
Non-cash increases to deferred purchase price$446 $170 
Cash payments received on deferred purchase price388 270 
ConsolidatedGE Capital
(In millions)September 30, 2020December 31, 2019September 30, 2020December 31, 2019
Loans, net of deferred income
$1,192 $1,098 $5,572 $4,927 
Investment in financing leases, net of deferred income
1,914 2,070 1,914 2,070 
3,106 3,168 7,486 6,996 
Allowance for losses
(85)(33)(61)(17)
Financing receivables – net
$3,021 $3,134 $7,425 $6,979