GE 2014 Annual Report Download - page 92

72 GE 2014 FORM 10-K
MD&A STATEMENT OF FINANCIAL POSITION
Further information on the determination of the allowance for losses on financing receivables and the credit quality and
categorization of our financing receivables is provided in the “Critical Accounting Estimates” section within MD&A section and
Notes 6 and 27 to the consolidated financial statements in this Form 10-K Report.
FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES
December 31 (Dollars in millions) 2014 2013
Financing receivables $ 242,093
$ 258,207
Nonaccrual receivables 5,225
(a) 7,915
Allowance for losses 5,075
5,178
Nonaccrual financing receivables as a percent of financing receivables 2.2
% 3.1 %
Allowance for losses as a percent of nonaccrual financing receivables 97.1
65.4
Allowance for losses as a percent of total financing receivables 2.1
2.0
(a) Of our $5.2 billion of nonaccrual loans at December 31, 2014, $2.7 billion are currently paying in accordance with the contractual terms.
Financing receivables, before allowance for losses, decreased $16.1 billion from December 31, 2013, primarily as a result of
the stronger U.S. dollar ($7.7 billion), the reclassification of Budapest Bank to assets of businesses held for sale and the sale
of GEMB-Nordic ($5.3 billion), write-offs ($5.1 billion) and transfers to assets held for sale and equipment leased to others
($3.1 billion), partially offset by originations exceeding collections (which includes sales) ($5.7 billion).
Nonaccrual receivables decreased $2.7 billion from December 31, 2013 primarily due to payoffs, collections and write-offs in
our Real Estate and CLL portfolios and asset sales and resolutions in Consumer, primarily in our U.K. portfolio.
Allowance for losses decreased $0.1 billion from December 31, 2013. Allowance for losses decreased at Commercial and
Real Estate, primarily as a result of write-offs and resolutions. These decreases were offset by increases at Consumer,
primarily as a result of an increase in the projected net write-offs over the next 12 months in the U.S. consistent with the
growth of related financing receivables, partially offset by the reclassification of Budapest Bank to assets of business held for
sale and the sale of GEMB-Nordic. The allowance for losses as a percent of total financing receivables increased from 2.0% at
December 31, 2013 to 2.1% at December 31, 2014 reflecting decreases in both the allowance for losses and the overall
financing receivables balance as discussed above.
For additional information related to the portfolio of financing receivables, refer to the General Electric Capital Corporation
annual report on Form 10-K for the year ended December 31, 2014.