Note 22
Deferred Income Taxes

Aggregate deferred tax amounts are summarized below.

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December 31 (In millions)         1997     1996
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Assets
GE                             $ 4,891  $ 4,097
GECS                             4,320    3,310
                                 9,211    7,407
Liabilities
GE                               4,576    4,630
GECS                            13,286   11,050
                                17,862   15,680
Net deferred tax liability     $ 8,651  $ 8,273
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Principal components of the net deferred tax balances for GE and GECS are as follows:

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December 31 (In millions)        1997      1996
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GE
Provisions for expenses       $(3,367)  $(2,740)
Retiree insurance plans          (856)     (806)
Prepaid pension asset           2,301     2,139
Depreciation                      955       836
Other - net                       652     1,104
                                 (315)      533
GECS
Financing leases                7,909     7,488
Operating leases                2,156     1,833
Net unrealized gains
   on securities                1,264       404
Allowance for losses           (1,372)   (1,184)
Insurance reserves             (1,000)     (787)
AMT credit carryforwards         (354)     (561)
Other - net                       363       547
                                8,966     7,740
Net deferred tax liability    $ 8,651   $ 8,273
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The GE provisions for expenses category represents the tax effects of temporary differences related to expense accruals for a wide variety of items, such as employee compensation and benefits, interest on tax deficiencies, product warranties and other provisions for sundry losses and expenses that are not currently deductible.