Percentage of receivables sold

  
Sales of current customer receivables. Effective April 1, 2021, we discontinued the majority of our factoring programs and subsequently announced the discontinuation of our remaining unconsolidated receivables facility effective in the fourth quarter of 2021. The remaining balance related to these discontinued programs was $161 million as of December 31, 2021. As shown in the table below, WCS no longer holds any GE business receivables. Customer receivables held by WCS and third parties were $3,134 million and $2,582 million, respectively, at March 31, 2021. When GE businesses sell customer receivables to WCS or third parties, they accelerate the receipt of cash that would otherwise have been collected from customers. In any given period, the amount of cash received from sales of customer receivables compared to the cash GE would have otherwise collected had those customer receivables not been sold represents the cash generated or used in the period relating to this activity. As of December 31, 2020, GE businesses sold approximately 40% of their gross customer receivables to WCS or third parties. Separately from the factoring programs that have been discontinued, the Company from time to time sells current or long-term receivables to third parties in response to customer-sponsored requests or programs, to facilitate sales, or for risk mitigation purposes. Activity related to customer receivables sold by GE businesses is as follows:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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|  |  |  |  |  |  |
|  | WCS |  | Third Parties |  | WCS |  | Third Parties |
|  | 2021 |  | 2020 |
| Balance at January 1 | $ | 3,618  |  |  | $ | 2,992  |  |  | $ | 3,087  |  |  | $ | 6,757  |  |
| GE businesses sales to WCS | 13,773  |  |  | —  |  |  | 32,869  |  |  | —  |  |
| GE businesses sales to third parties | —  |  |  | 1,415  |  | (a) | —  |  |  | 863  |  |
| WCS sales to third parties | (10,816) |  |  | 10,816  |  |  | (18,654) |  |  | 18,654  |  |
| Collections and other | (6,676) |  |  | (15,062) |  |  | (14,004) |  |  | (23,283) |  |
| Reclassification from long-term customer receivables | 100  |  |  | —  |  |  | 321  |  |  | —  |  |
| Balance at December 31 | $ | —  |  |  | $ | 161  |  |  | $ | 3,618  |  |  | $ | 2,992  |  |

(a) Related primarily to our participation in customer-sponsored supply chain finance programs. Within these programs, the Company has no continuing involvement, fees associated with the transferred receivables are covered by the customer and cash is received at the original invoice due date.  


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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| LONG-TERM RECEIVABLES |  |  |  |
| December 31 | 2021 | 2020 |  |  |  |
| Long-term customer receivables | $ | 521  |  | $ | 585  |  |  |  |  |
| Financing receivables | 592  |  | 713  |  |  |  |  |
| Supplier advances | 309  |  | 351  |  |  |  |  |
| Non-income based tax receivables | 245  |  | 244  |  |  |  |  |
| Receivables from disposed businesses | 150  |  | 230  |  |  |  |  |
| Sundry receivables | 440  |  | 569  |  |  |  |  |
|  |  |  |  |  |  |
| Allowance for credit losses | (160) |  | (174) |  |  |  |  |
| Total long-term receivables  | $ | 2,097  |  | $ | 2,518  |  |  |  |  |

  
UNCONSOLIDATED RECEIVABLES FACILITIES. In the fourth quarter of 2021, we discontinued our one remaining revolving receivables facility, under which customer receivables purchased from GE businesses were sold to third parties. Upon the sale of receivables, we received proceeds of cash and deferred purchase price and the Company’s remaining risk with respect to the sold receivables was limited to the balance of the deferred purchase price. As a result of our termination and settlement of the facility, there are no remaining receivables in the facility and the balance of our deferred purchase price was reduced to zero.   
Activity related to our unconsolidated receivables facilities is included in the WCS sales to third parties line in the sales of GE businesses current customer receivables table above and is as follows:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| For the years ended December 31 | 2021 |  | 2020 |
| Customer receivables sold to receivables facilities | $ | 9,324  |  |  | $ | 13,591  |  |
| Collections and other on receivables sold to receivables facilities | 11,371  |  |  | 15,515  |  |
| Total cash purchase price for customer receivables | 8,683  |  |  | 13,031  |  |
| Cash collections re-invested to purchase customer receivables | 7,920  |  |  | 11,567  |  |
|  |  |  |  |
| Non-cash increases to deferred purchase price | $ | 608  |  |  | $ | 481  |  |
| Cash payments received on deferred purchase price | 597  |  |  | 489  |  |

  
CONSOLIDATED SECURITIZATION ENTITIES. GE consolidated two variable interest entities (VIEs) that purchased customer receivables and long-term customer receivables from GE businesses prior to the April 1, 2021 discontinuation of the majority of the Company's factoring programs. At December 31, 2021, there were no remaining assets or liabilities in these entities. At December 31, 2020, these VIEs held current customer receivables of $1,489 million and long-term customer receivables of $93 million. At December 31, 2020, the outstanding non-recourse debt under their respective debt facilities was $892 million.    
2021 FORM 10-K 60
