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126 GE 2011 ANNUAL REPORT
    
NONACCRUAL FINANCING RECEIVABLES
The following table provides further information about Consumer fi nancing receivables that are classifi ed as nonaccrual.
CONSUMER
Nonaccrual financing receivables Nonearning financing receivables
December 31 (Dollars in millions) 2011 2010 2011 2010
Non-U.S. residential mortgages $3,475 $3,986 $3,349 $3,738
Non-U.S. installment and revolving credit 321 302 263 289
U.S. installment and revolving credit 990 1,201 990 1,201
Non-U.S. auto 43 46 43 46
Other 487 600 419 478
Total $5,316 $6,135 $5,064 $5,752
Allowance for losses percentage 70.2% 73.3% 73.7% 78.2%
IMPAIRED LOANS
The vast majority of our Consumer nonaccrual fi nancing receiv-
ables are smaller balance homogeneous loans evaluated
collectively, by portfolio, for impairment and therefore are outside
the scope of the disclosure requirement for impaired loans.
Accordingly, impaired loans in our Consumer business represent
restructured smaller balance homogeneous loans meeting the
defi nition of a TDR, and are therefore subject to the disclosure
requirement for impaired loans, and commercial loans in our
Consumer–Other portfolio. The recorded investment of these
impaired loans totaled $3,105 million (with an unpaid principal
balance of $2,679 million) and comprised $69 million with no
specifi c allowance, primarily all in our Consumer–Other portfolio,
and $3,036 million with a specifi c allowance of $717 million at
December 31, 2011. The impaired loans with a specifi c allowance
included $369 million with a specifi c allowance of $102 million in
our Consumer–Other portfolio and $2,667 million with a specifi c
allowance of $615 million across the remaining Consumer busi-
ness and had an unpaid principal balance and average investment
of $2,244 million and $2,343 million, respectively, at December 31,
2011. We recognized $141 million and $114 million of interest
income, including $15 million and $30 million on a cash basis, for
the years ended December 31, 2011 and 2010, respectively, prin-
cipally in our Consumer—Non-U.S. and U.S. installment and
revolving credit portfolios. The total average investment in
impaired loans for the years ended December 31, 2011 and 2010
was $2,840 million and $2,009 million, respectively.
Impaired loans classifi ed as TDRs in our Consumer busi-
ness were $2,935 million and $2,256 million at December 31,
2011 and 2010, respectively. We utilize certain loan modifi cation
programs for borrowers experiencing fi nancial diffi culties in our
Consumer loan portfolio. These loan modifi cation programs pri-
marily include interest rate reductions and payment deferrals
in excess of three months, which were not part of the terms of
the original contract, and are primarily concentrated in our Non-
U.S. residential mortgage and U.S. credit card portfolios. For the
year ended December 31, 2011, we modifi ed $1,970 million of
consumer loans for borrowers experiencing fi nancial diffi culties,
which are classifi ed as TDRs, and included $1,020 million of non-
U.S. consumer loans, primarily residential mortgages, credit cards
and personal loans and approximately $950 million of credit card
loans in the U.S. We expect borrowers whose loans have been
modifi ed under these programs to continue to be able to meet
their contractual obligations upon the conclusion of the modifi ca-
tion. For loans modifi ed as TDRs in the last year, $251 million have
subsequently experienced a payment default, primarily in our U.S.
credit card and Non-U.S. residential mortgage portfolios.
CREDIT QUALITY INDICATORS
Our Consumer fi nancing receivables portfolio comprises both
secured and unsecured lending. Secured fi nancing receivables
comprise residential loans and lending to small and medium-
sized enterprises predominantly secured by auto and equipment,
inventory fi nance and cash fl ow loans. Unsecured fi nancing
receivables include private-label credit card fi nancing. A substan-
tial majority of these cards are not for general use and are limited
to the products and services sold by the retailer. The private label
portfolio is diverse with no metropolitan area accounting for more
than 5% of the related portfolio.