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Financing Receivables and Allowance For Losses On Financing Receivables
 3 Months Ended
Mar. 31, 2012
Financing Receivables And Allowance For Losses On Financing Receivables [Abstract]  
Financing Receivables And Allowance For Losses On Financing Receivables

4. FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES

       At
       March 31, December 31,
(In millions)      2012 2011
            
Loans, net of deferred income(a)      $250,890 $256,895
Investment in financing leases, net of deferred income       36,207  38,142
        287,097  295,037
Less allowance for losses       (5,714)  (6,190)
Financing receivables – net(b)      $281,383 $288,847
            
            

  • Deferred income was $2,192 million and $2,329 million at March 31, 2012 and December 31, 2011, respectively.
  • Financing receivables at March 31, 2012 and December 31, 2011 included $968 million and $1,062 million, respectively, relating to loans that had been acquired in a transfer but have been subject to credit deterioration since origination per ASC 310, Receivables.

The following tables provide additional information about our financing receivables and related activity in the allowance for losses for our Commercial, Real Estate and Consumer portfolios.

 

Financing Receivables - net

The following table displays our financing receivables balances.

       At
       March 31, December 31,
(In millions)      2012 2011
            
Commercial           
CLL           
Americas      $79,645 $80,505
Europe       35,613  36,899
Asia       11,048  11,635
Other       382  436
Total CLL       126,688  129,475
            
Energy Financial Services       5,287  5,912
            
GECAS       11,721  11,901
            
Other       681  1,282
Total Commercial financing receivables       144,377  148,570
            
Real Estate           
Debt       23,518  24,501
Business Properties       8,013  8,248
Total Real Estate financing receivables       31,531  32,749
            
Consumer           
Non-U.S. residential mortgages       35,257  35,550
Non-U.S. installment and revolving credit       18,963  18,544
U.S. installment and revolving credit       44,283  46,689
Non-U.S. auto       5,166  5,691
Other       7,520  7,244
Total Consumer financing receivables       111,189  113,718
            
Total financing receivables       287,097  295,037
            
Less allowance for losses       (5,714)  (6,190)
Total financing receivables – net      $281,383 $288,847
            

Allowance for Losses on Financing Receivables

The following tables provide a roll-forward of our allowance for losses on financing receivables.

 Balance at Provision       Balance at
 January 1, charged to    Gross   March 31,
(In millions)2012 operations Other(a)write-offs(b)Recoveries(b)2012
                  
Commercial                 
CLL                 
Americas$889 $66 $(20) $(156) $23 $802
Europe 400  83  1  (45)  19  458
Asia 157  11  (5)  (56)  5  112
Other 4  –   –   (2)  –   2
Total CLL 1,450  160  (24)  (259)  47  1,374
                  
                  
Energy Financial Services 26  (1)  –   –   –   25
                  
GECAS 17  (3)  –   –   –   14
                  
Other 37  2  (19)  –   –   20
Total Commercial 1,530  158  (43)  (259)  47  1,433
                  
Real Estate                 
Debt 949  28  (12)  (154)  1  812
Business Properties 140  10  –   (34)  1  117
Total Real Estate 1,089  38  (12)  (188)  2  929
                  
Consumer                 
Non-U.S. residential                 
   mortgages 546  29  8  (103)  18  498
Non-U.S. installment                 
   and revolving credit 717  124  28  (273)  130  726
U.S. installment and                 
   revolving credit 2,008  478  –   (772)  131  1,845
Non-U.S. auto 101  10  (6)  (41)  24  88
Other 199  26  16  (66)  20  195
Total Consumer 3,571  667  46  (1,255)  323  3,352
Total$6,190 $863 $(9) $(1,702) $372 $5,714
                  
                  

  • Other primarily included transfers to held for sale and the effects of currency exchange.
  • Net write-offs (write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as our revolving credit portfolios turn over more than once per year or, in all portfolios, can reflect losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables.

 Balance at Provision       Balance at
 January 1, charged to    Gross   March 31,
(In millions)2011 operations Other(a)write-offs(b)Recoveries(b)2011
                  
Commercial                 
CLL                 
Americas$1,288 $139 $(1) $(194) $22 $1,254
Europe 429  30  19  (51)  16  443
Asia 222  60  4  (69)  11  228
Other 6  –   –   –   –   6
Total CLL 1,945  229  22  (314)  49  1,931
                  
                  
Energy Financial Services 22  19  (1)  (4)  –   36
                  
GECAS 20  (8)  –   –   –   12
                  
Other 58  4  1  (8)  –   55
Total Commercial 2,045  244  22  (326)  49  2,034
                  
Real Estate                 
Debt 1,292  59  7  (243)  3  1,118
Business Properties 196  26  (1)  (42)  2  181
Total Real Estate 1,488  85  6  (285)  5  1,299
                  
Consumer                 
Non-U.S. residential                 
   mortgages 689  21  21  (54)  15  692
Non-U.S. installment                 
   and revolving credit 937  153  23  (327)  144  930
U.S. installment and                 
   revolving credit 2,333  585  –   (913)  136  2,141
Non-U.S. auto 168  15  5  (68)  32  152
Other 259  37  4  (86)  25  239
Total Consumer 4,386  811  53  (1,448)  352  4,154
Total$7,919 $1,140 $81 $(2,059) $406 $7,487
                  
                  

  • Other primarily included the effects of currency exchange.
  • Net write-offs (write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as our revolving credit portfolios turn over more than once per year or, in all portfolios, can reflect losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables.

 

See Note 12 for supplemental information about the credit quality of financing receivables and allowance for losses on financing receivables.