GE 2011 Annual Report Download - page 123

GE 2011 ANNUAL REPORT 121
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As discussed above, we have provisions in certain of our mas-
ter agreements that require counterparties to post collateral
(typically, cash or U.S. Treasuries) when our receivable due from
the counterparty, measured at current market value, exceeds
a specifi ed limit. At December 31, 2011, our exposure to coun-
terparties, including interest due, net of collateral we hold, was
$900 million. The fair value of such collateral was $12,907 mil-
lion, of which $2,333 million was cash and $10,574 million was in
the form of securities held by a custodian for our benefi t. Under
certain of these same agreements, we post collateral to our coun-
terparties for our derivative obligations, the fair value of which
was $1,111 million at December 31, 2011.
Additionally, our master agreements typically contain mutual
downgrade provisions that provide the ability of each party to
require termination if the long-term credit rating of the coun-
terparty were to fall below A-/A3. In certain of these master
agreements, each party also has the ability to require termina-
tion if the short-term rating of the counterparty were to fall below
A-1/P-1. The net amount relating to our derivative liability sub-
ject to these provisions, after consideration of collateral posted
by us, and outstanding interest payments, was $1,199 million at
December 31, 2011.
Note 23.
Supplemental Information about the Credit Quality
of Financing Receivables and Allowance for Losses on
Financing Receivables
We provide further detailed information about the credit quality
of our Commercial, Real Estate and Consumer fi nancing receiv-
ables portfolios. For each portfolio, we describe the
characteristics of the fi nancing receivables and provide informa-
tion about collateral, payment performance, credit quality
indicators, and impairment. We manage these portfolios using
delinquency and nonearning data as key performance indicators.
The categories used within this section such as impaired loans,
TDR and nonaccrual fi nancing receivables are defi ned by the
authoritative guidance and we base our categorization on the
related scope and defi nitions contained in the related standards.
The categories of nonearning and delinquent are defi ned by us
and are used in our process for managing our fi nancing receiv-
ables. Defi nitions of these categories are provided in Note 1.
Commercial
FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES
The following table provides further information about general
and specifi c reserves related to Commercial fi nancing receivables.
COMMERCIAL
Financing receivables
December 31 (In millions) 2011 2010
CLL
Americas (a) $ 80,505 $ 88,558
Europe 36,899 37,498
Asia 11,635 11,943
Other (a) 436 664
Total CLL 129,475 138,663
Energy Financial Services 5,912 7,011
GECAS 11,901 12,615
Other 1,282 1,788
Total Commercial financing receivables,
before allowance for losses $148,570 $160,077
Non-impaired financing receivables $142,908 $154,257
General reserves 718 1,014
Impaired loans 5,662 5,820
Specific reserves 812 1,031
(a) During 2011, we transferred our Railcar lending and leasing portfolio from CLL
Other to CLL Americas. Prior-period amounts were reclassified to conform to the
current-period presentation.
PAST DUE FINANCING RECEIVABLES
The following table displays payment performance of Commercial
fi nancing receivables.
COMMERCIAL
2011 2010
December 31
Over 30 days
past due
Over 90 days
past due
Over 30 days
past due
Over 90 days
past due
CLL
Americas 1.3% 0.8% 1.2% 0.8%
Europe 3.8 2.1 4.2 2.3
Asia 1.3 1.0 2.2 1.4
Other 2.0 0.1 2.4 1.2
Total CLL 2.0 1.2 2.1 1.3
Energy Financial
Services 0.3 0.3 0.9 0.8
GECAS ————
Other 3.7 3.5 5.8 5.5
Total 2.0 1.1 2.0 1.2