GE 2007 Annual Report Download - page 87

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    
ge 2007 annual report 85
Note 10
Current Receivables
Consolidated
(a) GE
December 31 (In millions)
2007 2006 2007 2006
Infrastructure $10,984 $ 8,567 $ 8,754 $ 6,524
Healthcare 4,531 4,441 2,343 2,897
NBC Universal 3,800 3,354 2,927 3,070
Industrial 2,937 3,545 910 1,391
Corporate items and
eliminations 526 220 642 364
22,778 20,127 15,576 14,246
Less allowance for losses (519) (510) (483) (480)
Total
$22,259 $19,617 $15,093 $13,766
(a) Included GE industrial customer receivables factored through a GECS affi liate and
reported as fi nancing receivables by GECS.
GE receivables balances at December 31, 2007 and 2006, before
allowance for losses, included $11,008 million and $8,845 million,
respectively, from sales of goods and services to customers, and
$381 million and $175 million at December 31, 2007 and 2006,
respectively, from transactions with associated companies.
GE current receivables of $252 million and $248 million at
December 31, 2007 and 2006, respectively, arose from sales,
principally of Aviation goods and services on open account to
various agencies of the U.S. government, our largest single
customer. About 4% of our sales of goods and services were to
the U.S. government in 2007, 2006 and 2005.
Note 11
Inventories
December 31 (In millions) 2007 2006
GE
Raw materials and work in process $ 7,893 $ 5,870
Finished goods 5,025 4,263
Unbilled shipments 539 409
13,457 10,542
Less revaluation to LIFO (623) (564)
12,834 9,978
GECS
Finished goods 63 54
Total
$12,897 $10,032
Note 12
GECS Financing Receivables (investments in loans
and financing leases)
December 31 (In millions) 2007 2006
Loans, net of deferred income $314,918 $264,039
Investment in fi nancing leases, net of
deferred income 75,015 68,569
389,933 332,608
Less allowance for losses (note 13) (4,329) (4,019)
Financing receivables — net
$385,604 $328,589
Included in the above are $9,708 million and $11,509 million of
the fi nancing receivables of consolidated, liquidating securitization
entities at December 31, 2007 and 2006, respectively.
Details of fi nancing receivables — net follow.
December 31 (In millions)
2007 2006
COMMERCIAL FINANCE
Equipment and leasing $ 89,239 $ 76,057
Commercial and industrial 58,853 50,186
Real estate 39,816 27,944
187,908 154,187
GE MONEY
Non-U.S. residential mortgages
(a) 73,759 58,237
Non-U.S. installment and revolving credit 33,924 29,976
U.S. installment and revolving credit 29,570 29,007
Non-U.S. auto 27,368 25,088
Other 10,198 8,059
174,819 150,367
INFRASTRUCTURE
(b) 22,095 21,200
OTHER
(c) 5,111 6,854
389,933 332,608
Less allowance for losses (4,329) (4,019)
Total
$385,604 $328,589
(a) At December 31, 2007, net of credit insurance, approximately 26% of this portfolio
comprised loans with introductory, below market rates that are scheduled to adjust
at future dates; with high loan-to-value ratios at inception; whose terms permitted
interest-only payments; or whose terms resulted in negative amortization.
(b) Included loans and fi nancing leases of $11,685 million and $11,165 million at
December 31, 2007 and 2006, respectively, related to commercial aircraft at
Aviation Financial Services and loans and fi nancing leases of $7,898 million and
$7,574 million at December 31, 2007 and 2006, respectively, related to Energy
Financial Services.
(c) Included loans and fi nancing leases of $5,106 million and $6,853 million at
December 31, 2007 and 2006, respectively, related to certain consolidated,
liquidating securitization entities.
GECS fi nancing receivables include both loans and fi nancing
leases. Loans represent transactions in a variety of forms, includ-
ing revolving charge and credit, mortgages, installment loans,
intermediate-term loans and revolving loans secured by business
assets. The portfolio includes loans carried at the principal amount
on which fi nance charges are billed periodically, and loans carried
at gross book value, which includes fi nance charges.