GE 2014 Annual Report Download - page 235
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GE 2014 FORM 10-K 215
FINANCIAL STATEMENTS FINANCING RECEIVABLES – SUPPLEMENTAL INFORMATION
December 31 (In millions) Non-impaired
financing receivables General reserves Impaired loans Specific reserves
2014
Commercial $ 118,381 $ 758 $ 3,095 $ 145
Real Estate 17,925 136 1,872 25
Consumer 98,640 3,603 2,180 408
Total $ 234,946 $ 4,497 $ 7,147 $ 578
2013
Commercial $ 125,377 $ 677 $ 3,892 $ 328
Real Estate 16,039 118 3,860 74
Consumer 106,051 3,414 2,988 567
Total $ 247,467 $ 4,209 $ 10,740 $ 969
We regularly review our Real Estate loans for impairment using both quantitative and qualitative factors, such as debt service
coverage and loan-to-value ratios. We evaluate a Real Estate loan for impairment when the most recent valuation reflects a
projected loan-to-value ratio at maturity in excess of 100%, even if the loan is currently paying in accordance with its
contractual terms.
Of our $1,872 million of impaired loans at Real Estate at December 31, 2014, $1,641 million are currently paying in
accordance with the contractual terms of the loan and are typically loans where the borrower has adequate debt service
coverage to meet contractual interest obligations. Impaired loans at CLL primarily represent senior secured lending positions.
IMPAIRED LOAN BALANCE CLASSIFIED BY THE METHOD USED TO MEASURE IMPAIRMENT
December 31 (In millions) 2014 2013
Discounted cash flow $ 3,994 $ 5,558
Collateral value 3,153 5,182
Total $ 7,147 $ 10,740
Our loss mitigation strategy is intended to minimize economic loss and, at times, can result in rate reductions, principal
forgiveness, extensions, forbearance or other actions, which may cause the related loan to be classified as a troubled debt
restructuring (TDR), and also as impaired. The determination of whether these changes to the terms and conditions of our
commercial loans meet the TDR criteria includes our consideration of all relevant facts and circumstances. At December 31,
2014, TDRs included in impaired loans were $5,806 million, primarily relating to Consumer ($2,132 million), CLL ($1,869
million) and Real Estate ($1,757 million).