Note 13 GECS Financing Receivables (investment in time sales, loans and financing leases)

	December 31 (In millions)	1994	1993
	Time sales and loans
	Consumer services	$25,906	$18,770
	Specialized financing	17,988	17,028
	Mid-market financing	5,916	4,693
	Equipment management	1,516	1,331
		51,326	41,822
	Deferred income	(1,305)	(1,074)
	Time sales and loans -- net	50,021	40,748
	Investment in financing leases
	Direct financing leases	25,916	22,063
	Leveraged leases	2,482	2,867
	Investment in financing leases	28,398	24,930
		78,419	65,678
	Less allowance for losses	(2,062)	(1,730)
		$76,357	$83,948

Time sales and loans represents transactions in a variety of forms, including time sales, revolving charge and credit, mortgages, installment loans, intermediate-term loans and revolving loans secured by business assets. The portfolio includes time sales and loans carried at the principal amount on which finance charges are billed periodically, and time sales and loans acquired on a discount basis carried at gross book value, which includes finance charges. At year-end 1994 and 1993, specialized financing and consumer services loans included $13,282 million and $11,887 million, respectively, for commercial real estate loans. Note 16 contains information on airline loans and leases. At December 31, 1994, contractual maturities for time sales and loans over the next five years and after were: $20,147 million in 1995; $7,466 million in 1996; $5,708 million in 1997; $4,047 million in 1998; $4,115 million in 1999; and $9,843 million in 2000 and later -- aggregating $51,326 million. Experience has shown that a substantial portion of receivables will be paid prior to contractual maturity. Accordingly, the maturities of time sales and loans are not to be regarded as forecasts of future cash collections. Financing leases consists of direct financing and leveraged leases of aircraft, railroad rolling stock, autos, other transportation equipment, data processing equipment, medical equipment, and other manufacturing, power generation, mining and commercial equipment and facilities. As the sole owner of assets under direct financing leases and as the equity participant in leveraged leases, GECS is taxed on total lease payments received and is entitled to tax deductions based on the cost of leased assets and tax deductions for interest paid to third-party participants. GECS generally is entitled to any residual value of leased assets and to any investment tax credit on leased equipment. Investment in direct financing and leveraged leases represents unpaid rentals and estimated unguaranteed residual values of leased equipment, less related deferred income. Because GECS has no general obligation for principal and interest on notes and other instruments representing third-party participation related to leveraged leases, such notes and other instruments have not been included in liabilities but have been offset against the related rentals receivable. GECS' share of rentals receivable on leveraged leases is subordinate to the share of other participants who also have security interests in the leased equipment. GECS' investment in financing leases is shown on the following page.

Investment in financing leases
	Total financing leases		Direct financing leases		Leveraged leases
December 31 (in millions)	1994	1993	1994	1993	1994	1993
Total minimum lease payments receivable	$39,968	$38,080	$30,338	$26,584	$9,630	$11,496
Less principal and interest on third-party nonrecourse debt	(7,103)	(8,398)	--	--	(7,103)	(8,398)
Rentals receivable	32,865	29,682	30,338	26,584	2,527	3,098
Estimated unguaranteed residual value of leased assets	4,889	4,490	3,767	3,323	1,122	1,167
Less deferred income (a)	(9,356)	(9,242)	(8,189)	(7,844)	(1,167)	(1,398)
Investment in financing leases (as shown in previous table)	28,398	24,930	25,916	22,063	2,482	2,867
Less amounts to arrive at net investment
Allowance for loses	(570)	(538)	(471)	(464)	(99)	(74)
Deferred taxes arising from financing leases	(5,075)	(4,917)	(2,470)	(2,157)	(2,605)	(2,760)
Net investment in financing leases	$22,753	$19,475	$22,975	$19,442	$(222)	$33

(a) Total financing lease deferred income is net of deferred initial direct costs of $93 million and $83 million for 1994 and 1993, respectively. At December 31, 1994, contractual maturities for rentals receivable over the next five years and after were: $7,409 million in 1995; $6,235 million in 1996; $5,148 million in 1997; $3,050 million in 1998; $2,096 million in 1999; and $8,927 million in 2000 and later -- aggregating $32,865 million. As with time sales and loans, experience has shown that a portion of receivables will be paid prior to contractual maturity and these amounts should not be regarded as forecasts of future cash flows. Nonearning consumer time sales and loans, primarily private-label credit card receivables, amounted to $422 million and $391 million at December 31, 1994 and 1993, respectively. A majority of these receivables were subject to various loss-sharing arrangements that provide full or partial recourse to the originating private-label entity. Nonearning and reduced-earning receivables other than consumer time sales and loans were $346 million and $509 million at year-end 1994 and 1993, respectively. Earnings of $4 million and $11 million realized in 1994 and 1993, respectively, were $27 million and $41 million lower than would have been reported had these receivables earned income in accordance with their original terms.

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