GE 2005 Annual Report Download - page 50

(50)
Infrastructure financing receivables, before allowance for losses, were $19.1 billion at December 31, 2005,
compared with $20.9 billion at December 31, 2004, and consisted primarily of loans and leases to the commercial
aircraft and energy industries. Related nonearning and reduced-earning receivables were insignificant at December
31, 2005, down from $0.2 billion (0.8% of outstanding receivables) at December 31, 2004.
Other financing receivables, before allowance for losses, were $11.2 billion and $15.1 billion at December
31, 2005 and December 31, 2004, respectively, and consisted primarily of financing receivables in consolidated,
liquidating securitization entities. This portfolio of receivables decreased because we have stopped transferring
assets to these entities. Nonearning receivables at December 31, 2005, were $0.1 billion (0.7% of outstanding
receivables) compared with $0.2 billion (1.2% of outstanding receivables) at December 31, 2004.
Delinquency rates on managed Commercial Finance equipment loans and leases and managed Consumer
Finance financing receivables follow.
December 31 2005 2004 2003
Commercial Finance 1.31% 1.40% 1.38%
Consumer Finance 5.08 4.85 5.62
Delinquency rates at Commercial Finance decreased from December 31, 2004, to December 31, 2005, primarily
resulting from improved credit quality across all portfolios. The increase from December 31, 2003, to December 31,
2004, reflected the effect of certain acquired portfolios, partially offset by improvement in the overall core portfolio.
Delinquency rates at Consumer Finance increased from December 31, 2004, to December 31, 2005, as a
result of higher delinquencies in our European secured financing business, discussed above. The decrease from
December 31, 2003, to December 31, 2004, reflected the results of the standardization of our write-off policy, the
acquisition of AFIG, and the U.S. acquisition of WMC, with lower relative delinquencies as a result of whole loan
sales, partially offset by higher delinquencies in our European secured financing business, discussed above. See
notes 13 and 14.
OTHER GECS RECEIVABLES totaled $19.1 billion at December 31, 2005, and $15.0 billion at December 31,
2004, and consisted primarily of nonfinancing customer receivables, insurance receivables, amounts due from GE
(generally related to certain material procurement programs), amounts due under operating leases, receivables due
on sale of securities and various sundry items.
PROPERTY, PLANT AND EQUIPMENT amounted to $67.5 billion at December 31, 2005, up $4.4 billion from
2004, primarily reflecting acquisitions of commercial aircraft at the Aviation Financial Services business of
Infrastructure. GE property, plant and equipment consisted of investments for its own productive use, whereas the
largest element for GECS was equipment provided to third parties on operating leases. Details by category of
investment are presented in note 15.
GE expenditures for plant and equipment during 2005 totaled $2.8 billion, compared with $2.4 billion in
2004. Total expenditures for the past five years were $12.7 billion, of which 32% was investment for growth
through new capacity and product development; 37% was investment in productivity through new equipment and
process improvements; and 31% was investment for other purposes such as improvement of research and
development facilities and safety and environmental protection.