Our Time - GE 2004 Annual Report
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Notes to Consolidated Financial Statements Note 13: GECS Allowance for Losses on Financing Receivables

(In millions) 2004   2003   2002  
BALANCE AT JANUARY 1                  
Commercial Finance $ 2,244   $ 2,664   $ 2,532  
Consumer Finance   3,984     2,782     2,173  
Equipment & Other Services   28     54     87  
    6,256     5,500     4,792  
PROVISION CHARGED TO OPERATIONS                  
Commercial Finance   651     887     1,110  
Consumer Finance   3,219     2,808     1,950  
Equipment & Other Services   18     57     24  
    3,888     3,752     3,084  
OTHER ADDITIONS (REDUCTIONS)(a)   (74 )   679     704  
GROSS WRITE-OFFS                  
Commercial Finance   (954 )   (1,321 )   (1,262 )
Consumer Finance(b)   (4,423 )   (3,114 )   (2,383 )
Equipment & Other Services   (75 )   (88 )   (77 )
    (5,452 )   (4,523 )   (3,722 )
RECOVERIES                  
Commercial Finance   163     126     95  
Consumer Finance   846     710     534  
Equipment & Other Services   21     12     13  
    1,030     848     642  
BALANCE AT DECEMBER 31                  
Commercial Finance   2,140     2,244     2,664  
Consumer Finance   3,473     3,984     2,782  
Equipment & Other Services   35     28     54  
Balance at December 31 $ 5,648   $ 6,256   $ 5,500  
(a) Other additions (reductions) primarily included the effects of acquisitions, securitization activity and the effects of exchange rates. These additions (reductions) included $314 million, $480 million and $487 million related to acquisitions and $(461) million, $(335) million and $(80) million related to securitization activity in 2004, 2003 and 2002, respectively.
(b) Included $889 million in 2004 related to the standardization of our write-off policy.

See note 12 for amounts related to consolidated, liquidating securitization entities.

SELECTED FINANCING RECEIVABLES RATIOS

December 31 2004   2003  
ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES AS A PERCENTAGE OF TOTAL FINANCING RECEIVABLES            
Commercial Finance   1.47 %   1.65 %
Consumer Finance(a)   2.72     4.21  
Equipment & Other Services   0.23     0.12  
Total   1.96     2.46  
NONEARNING AND REDUCED EARNING FINANCING RECEIVABLES AS A PERCENTAGE OF TOTAL FINANCING RECEIVABLES            
Commercial Finance   1.1 %   1.3 %
Consumer Finance(a)   2.0     2.6  
Equipment & Other Services   1.2     0.6  
Total   1.5     1.7  
(a) The standardization of our write-off policy in 2004 reduced the allowance for losses on financing receivables as a percentage of total financing receivables by 74 basis points, and nonearning and reduced earning financing receivables as a percentage of total financing receivables by 57 basis points.

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