December 31 (In millions)		2006			2005
Loans, net of deferred income		$ 270,343			$ 227,923
Investment in financing leases, net of deferred income		68,569			64,309
		338,912			292,232
Less allowance for losses (note 14)		(4,680	)		(4,593	)
Financing receivables — net		$ 334,232			$ 287,639

Included in the above are the financing receivables of consolidated, liquidating securitization entities as follows:

December 31 (In millions)		2006			2005
Loans, net of deferred income		$ 11,399			$ 15,868
Investment in financing leases, net of deferred income		134			769
		11,533			16,637
Less allowance for losses		(24	)		(22	)
Financing receivables — net		$ 11,509			$ 16,615

Details of financing receivables — net follow.

December 31 (In millions)		2006			2005
Commercial Finance
Equipment and leasing		$ 76,057			$ 70,851
Commercial and industrial		49,222			41,402
Real estate		27,944			19,555
		153,223			131,808
GE Money
Non-U.S. residential mortgages		58,237			46,205
Non-U.S. installment and revolving credit		36,279			31,849
U.S. installment and revolving credit		29,007			21,963
Non-U.S. auto		25,088			22,803
Other		8,059			7,286
		156,670			130,106
Infrastructure (a)		21,200			19,124
Other (b)		7,819			11,194
		338,912			292,232
Less allowance for losses		(4,680	)		(4,593	)
Total		$ 334,232			$ 287,639

(a)	Included loans and financing leases of $11,165 million and $11,192 million at December 31, 2006 and 2005, respectively, related to commercial aircraft at Aviation Financial Services and loans and financing leases of $7,574 million and $5,419 million at December 31, 2006 and 2005, respectively, related to Energy Financial Services.
(b)	Included loans and financing leases of $6,853 million and $10,160 million at December 31, 2006 and 2005, respectively, related to certain consolidated, liquidating securitization entities.

GECS financing receivables include both loans and financing leases. Loans represent transactions in a variety of forms, including revolving charge and credit, mortgages, installment loans, intermediate-term loans and revolving loans secured by business assets. The portfolio includes loans carried at the principal amount on which finance charges are billed periodically, and loans carried at gross book value, which includes finance charges.

Investment in financing leases consists of direct financing and leveraged leases of aircraft, railroad rolling stock, autos, other transportation equipment, data processing equipment, medical equipment, commercial real estate and other manufacturing, power generation, 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 is generally entitled to any residual value of leased assets.

Investment in direct financing and leveraged leases represents net unpaid rentals and estimated unguaranteed residual values of leased equipment, less related deferred income. 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. The 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.

Net investment in financing leases

	Total financing leases
December 31 (In millions)		2006			2005
Total minimum lease payments receivable		$ 88,598			$ 86,436
Less principal and interest on third-party nonrecourse debt		(17,309	)		(19,061	)
Net rentals receivable		71,289			67,375
Estimated unguaranteed residual value of leased assets		10,062			9,379
Less deferred income		(12,782	)		(12,445	)
Investment in financing leases, net of deferred income		68,569			64,309
Less amounts to arrive at net investment
Allowance for losses		(392	)		(525	)
Deferred taxes		(8,314	)		(8,037	)
Net investment in financing leases		$ 59,863			$ 55,747
	Direct financing leases(a)
December 31 (In millions)		2006			2005
Total minimum lease payments receivable		$ 64,637			$ 60,594
Less principal and interest on third-party nonrecourse debt		—			—
Net rentals receivable		64,637			60,594
Estimated unguaranteed residual value of leased assets		7,068			6,260
Less deferred income		(9,634	)		(9,305	)
Investment in financing leases, net of deferred income		62,071			57,549
Less amounts to arrive at net investment
Allowance for losses		(370	)		(380	)
Deferred taxes		(3,410	)		(3,495	)
Net investment in financing leases		$ 58,291			$ 53,674
	Leveraged leases(b)
December 31 (In millions)		2006			2005
Total minimum lease payments receivable		$ 23,961			$ 25,842
Less principal and interest on third-party nonrecourse debt		(17,309	)		(19,061	)
Net rentals receivable		6,652			6,781
Estimated unguaranteed residual value of leased assets		2,994			3,119
Less deferred income		(3,148	)		(3,140	)
Investment in financing leases, net of deferred income		6,498			6,760
Less amounts to arrive at net investment
Allowance for losses		(22	)		(145	)
Deferred taxes		(4,904	)		(4,542	)
Net investment in financing leases		$ 1,572			$ 2,073

(a)	Included $654 million and $475 million of initial direct costs on direct financing leases at December 31, 2006 and 2005, respectively.
(b)	Included pre-tax income of $306 million and $248 million and income tax of $115 million and $96 million during 2006 and 2005, respectively. Net investment credits recognized during 2006 and 2005 were inconsequential.

Contractual maturities

(In millions)		Total loans			Net rentals receivable
Due in
2007		$ 89,651			$ 18,422
2008		33,413			15,094
2009		25,731			11,637
2010		14,759			7,860
2011		17,893			5,244
2012 and later		88,896			13,032
Total		$ 270,343			$ 71,289

We expect actual maturities to differ from contractual maturities.

Individually “impaired” loans are defined by GAAP as larger balance or restructured loans for which it is probable that the lender will be unable to collect all amounts due according to original contractual terms of the loan agreement. An analysis of impaired loans follows.

December 31 (In millions)		2006			2005
Loans requiring allowance for losses		$ 1,346			$ 1,479
Loans expected to be fully recoverable		497			451
		$ 1,843			$ 1,930
Allowance for losses		$ 446			$ 627
Average investment during year		1,860			2,118
Interest income earned while impaired (a)		34			46

(a)	Recognized principally on cash basis.

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