us-gaap:LoansNotesTradeAndOtherReceivablesDisclosureTextBlock

AMERICAN EXPRESS CO

4. Loans

Loans at September 30, 2009 and December 31, 2008 consisted of:


*(Millions)*	2009		2008

U.S. Card Services	$	22,686	$	32,684

International Card Services		8,771		9,499

Global Commercial Services		18		28


Cardmember lending, gross		31,475		42,211

Less: Cardmember lending reserve for losses		3,359		2,570

Cardmember lending, net	$	28,116	$	39,641


Other loans, gross (a)	$	541	$	1,057

Less: Other reserve for losses		30		39

Other loans, net	$	511	$	1,018

(a)

Other loans primarily represent small business installment loans, a store card portfolio whose billed business is not processed on the Company’s network and small business loans associated with the CPS acquisition. Other loans at December 31, 2008, included a loan to an affiliate in discontinued operations.

The following table presents changes in the cardmember lending reserve for losses for the nine months ended September 30:


*(Millions)*	2009			2008

Balance, January 1	$	2,570		$	1,831

Additions:

Cardmember lending provisions (a)		3,665			3,209

Cardmember lending other (b)		41			95

Total provision		3,706			3,304

Deductions:

Cardmember lending net write-offs – principal (c)		(2,360	)		(1,941	)

Cardmember lending net write-offs – interest and fees (c)		(376	)		(437	)

Cardmember lending other (d)		(181	)		(117	)

Balance, September 30	$	3,359		$	2,640

(a)

Represents loss provisions for cardmember lending consisting of principal (resulting from authorized transactions), interest, and fee reserves components.

(b)

Primarily represents adjustments to cardmember lending receivables resulting from unauthorized transactions. For the nine months ended September 30, 2008, this amount also includes waived fees.

(c)

Cardmember lending net write-offs – principal for September 30, 2009 and 2008 include recoveries of $253 million and $236 million, respectively. Recoveries of interest and fees were de minimis.

(d)

For September 30, 2009, this amount primarily includes $169 million of reserves that were removed in connection with securitizations during the period, which is offset in the allocated cost of the associated retained subordinated securities. This amount also includes foreign currency translation adjustments. Prior periods primarily included foreign currency translation adjustments.

The following table presents changes in the other loans reserve for losses for the nine months ended September 30:


*(Millions)*	2009			2008

Balance, January 1	$	39		$	45

Provisions		64			29

Net write-offs and other (a)		(73	)		(30	)


Balance, September 30	$	30		$	44

(a)

Net write-offs and other for September 30, 2009 and 2008 include recoveries of $9 million and $8 million, respectively, and foreign currency translation adjustments of $(22) million and $7 million, respectively.

BB&T CORP

NOTE 4. Loans and Leases

The following table provides a breakdown of BB&T’s loan portfolio as of September 30, 2009 and December 31, 2008:


	September 30, 2009		December 31, 2008
	(Dollars in millions)
Loans and leases, net of unearned income:
Commercial loans and leases	$	49,591	$	50,480
Sales finance		6,493		6,354
Revolving credit		1,929		1,777
Direct retail		14,482		15,454
Residential mortgage loans		15,463		17,091
Specialized lending		7,497		6,089
Other acquired loans		141		—

Total loans and leases held for investment (excluding covered loans)		95,596		97,245
Covered loans		8,305		—

Total loans and leases held for investment		103,901		97,245
Loans held for sale		3,126		1,424

Total loans and leases	$	107,027	$	98,669

Covered loans represent loans acquired from the FDIC subject to one of the loss sharing agreements. Other acquired loans represent consumer loans acquired from the FDIC that are not subject to one of the loss sharing agreements.

BB&T evaluated purchased loans for impairment in accordance with the provisions of FASB Topic 310-30: Loans and Debt Securities Acquired with Deteriorated Credit Quality (“Topic 310-30”). Purchased loans with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered impaired. The following table reflects the carrying value of all purchased impaired and nonimpaired loans as of September 30, 2009:


	Purchased Impaired Loans		Purchased Nonimpaired Loans		Total
	(Dollars in millions)
Residential mortgage loans	$	819	$	899	$	1,718
Commercial real estate loans		2,653		2,780		5,433
Commercial loans		93		1,061		1,154

Total covered loans		3,565		4,740		8,305
Other acquired loans		17		124		141

Total	$	3,582	$	4,864	$	8,446

As of August 14, 2009, the preliminary estimate of the contractually required payments receivable for all purchased impaired loans acquired in the Colonial Bank transaction, including those covered and not covered under loss sharing agreements with the FDIC, were $8.0 billion, the cash flows expected to be collected were $4.4 billion including interest, and the estimated fair value of the loans was $3.6 billion. These amounts were determined based upon the estimated remaining life of the underlying loans, which includes the effects of estimated prepayments. At September 30, 2009, none of these loans were classified as nonperforming assets. Therefore, interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all purchased impaired loans. There was no allowance for credit losses related to the purchased impaired loans at September 30, 2009. Because of the short time period between the execution of the Purchase and Assumption Agreement and September 30, 2009, certain amounts related to the purchased impaired loans are preliminary estimates. BB&T expects to finalize its analysis of these loans during the fourth quarter of 2009, and, therefore, adjustments to the estimated amounts may occur.

Changes in the carrying amount and accretable yield for purchased impaired and nonimpaired loans were as follows for both the three and nine months ended September 30, 2009:


	Purchased Impaired						Purchased Nonimpaired(1)
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(Dollars in millions)
Balance at beginning of period	$	—		$	—		$	—		$	—
Additions (2)		770			3,626			1,090			4,871
Accretion		(32	)		32			(39	)		39
Payments received, net		—			(76	)		—			(46	)

Balance at end of period	$	738		$	3,582		$	1,051		$	4,864

(1)	Excludes loans held for sale.

(2)	Represents the fair value of the loans at the date of acquisition.

For the purchased nonimpaired loans, excluding loans held for sale, the preliminary estimate as of the acquisition date of the contractually required payments receivable were $8.5 billion, the contractual cash flows not expected to be collected were $2.5 billion, and the estimated fair value of the loans was $4.9 billion. The difference between the carrying value of the purchased nonimpaired loans and the expected cash flows is being accreted to interest income over the remaining life of the loans. BB&T expects to finalize its analysis of these loans during the fourth quarter of 2009, and, therefore, adjustments to the estimated amounts may occur.

An analysis of the allowance for credit losses for the nine months ended September 30, 2009 and 2008 is presented in the following table:


	For the Nine Months Ended September 30,
	2009			2008
	(Dollars in millions)
Beginning balance	$	1,607		$	1,015
Other changes		70			(2	)
Provision for credit losses		2,086			917
Loans and leases charged-off		(1,345	)		(583	)
Recoveries of previous charge-offs		60			46

Net loans and leases charged-off		(1,285	)		(537	)

Ending balance	$	2,478		$	1,393

Allowance for loan and lease losses	$	2,379		$	1,377
Reserve for unfunded lending commitments		99			16

Allowance for credit losses	$	2,478		$	1,393

The following table provides a summary of BB&T’s nonperforming and past due loans at September 30, 2009 and December 31, 2008:


	September 30, 2009		December 31, 2008
	(Dollars in millions)
Nonaccrual loans and leases (1)	$	2,573	$	1,413
Foreclosed real estate		1,326		538
Other foreclosed property		53		79

Total nonperforming assets (excluding covered assets)		3,952		2,030

Covered foreclosed property		151		—

Total nonperforming assets	$	4,103	$	2,030

Loans 90 days or more past due and still accruing (excluding covered loans) (2)(3)	$	323	$	431

(1)	Covered and other acquired loans are considered to be performing due to the application of the accretion method under Topic 310-30. Covered loans that are contractually past due are noted in footnote 3 below.

(2)	Excludes mortgage loans guaranteed by GNMA that BB&T does not have the obligation to repurchase.

(3)	Excludes covered loans totaling $945 million as of September 30, 2009.

At September 30, 2009, BB&T had $148 million in loans that were accruing interest under the terms of troubled debt restructurings. This amount consists of $74 million in residential mortgage loans, $51 million in revolving credit loans, $20 million in commercial loans and $3 million in direct retail loans. Loan restructurings generally occur when a borrower is experiencing, or is expected to experience, financial difficulties in the near-term. Consequently, a modification that would otherwise not be considered is granted to the borrower. These loans may continue to accrue interest as long as the borrower complies with the revised terms and conditions and has demonstrated repayment performance with the modified terms.

BERKSHIRE HATHAWAY INC

Note 11. Receivables

Receivables of insurance and other businesses are comprised of the following (in millions).

	September 30, 2009			December 31, 2008
Insurance premiums receivable	$	5,933		$	4,961
Reinsurance recoverables		3,177			3,235
Trade and other receivables		7,400			7,141
Allowances for uncollectible accounts		(463	)		(412	)
	$	16,047		$	14,925

Loans and finance receivables of finance and financial products businesses are comprised of the following (in millions).

	September 30, 2009			December 31, 2008
Consumer installment loans and finance receivables	$	12,847		$	13,190
Commercial loans and finance receivables		997			1,050
Allowances for uncollectible loans		(330	)		(298	)
	$	13,514		$	13,942

BURLINGTON NORTHERN SANTA FE CORP

3. Accounts Receivable, Net

BNSF Railway sells a portion of its accounts receivable to Santa Fe Receivables Corporation (SFRC), a special purpose subsidiary. The sole purpose and activity of SFRC is to purchase receivables from BNSF Railway. SFRC transfers an undivided interest in such receivables, with limited exceptions, to a master trust and causes the trust to issue an undivided interest in the receivables to investors (the A/R sales program). The undivided interests in the master trust may be in the form of certificates or purchased interests and are isolated from BNSF Railway which eliminates all of BNSF Railway’s control over the undivided interest. SFRC periodically incurs minor legal fees that are paid by BNSF Railway and are financed through short-term intercompany payables.

BNSF Railway’s total capacity to sell undivided interests to investors under the A/R sales program was $700 million at September 30, 2009, which was comprised of two $175 million, 364-day accounts receivable facilities and two $175 million, 3-year accounts receivable facilities. Both 364-day facilities will mature in November 2009 and are expected to be renewed. The two 3-year facilities will mature in November 2010. Each of the financial institutions providing credit for the facilities is rated Aa3/A+ or higher. There was no outstanding interest held by investors under the A/R sales program at September 30, 2009. Outstanding undivided interests held by investors under the A/R sales program were $50 million at December 31, 2008, with $12.5 million outstanding under each of the four facilities. These undivided interests in receivables are excluded from accounts receivable by BNSF Railway in connection with the sale of undivided interests under the A/R sales program. As of September 30, 2009 and December 31, 2008, an interest in $864 million and $878 million, respectively, of receivables had been transferred by SFRC to the master trust. When SFRC transfers the interest in these receivables to the master trust, it retains an undivided interest in the receivables, which is included in accounts receivable in the Company’s Consolidated Financial Statements. The interest that continues to be held by SFRC of $864 million and $828 million at September 30, 2009 and December 31, 2008, respectively, less an allowance for uncollectible accounts, reflected the total accounts receivable transferred by SFRC to the master trust less $50 million of outstanding undivided interests held by investors at December 31, 2008. Due to a relatively short collection cycle, the fair value of the undivided interest transferred to investors in the A/R sales program approximated book value, and there was no gain or loss from the transaction.

BNSF Railway retains the collection responsibility with respect to the accounts receivable. Proceeds from collections reinvested in the A/R sales program were approximately $11.2 billion and $14.5 billion for the nine months ended September 30, 2009 and 2008, respectively. No servicing asset or liability has been recorded because the fees BNSF Railway receives for servicing the receivables approximate the related costs. SFRC’s costs of the sale of receivables are included in other expense, net and were $2 million and $9 million for the nine months ended September 30, 2009 and 2008, respectively. These costs fluctuate monthly with changes in prevailing interest rates as well as unused available commitments and include interest, discounts associated with transferring the receivables under the A/R sales program to SFRC, program fees paid to banks, incidental commercial paper issuing costs and fees for unused commitment availability.

The amount of accounts receivable sold by BNSF Railway fluctuates based on borrowing needs and upon the availability of receivables and is directly affected by changing business volumes and credit risks, including dilution and delinquencies. In order for there to be an impact on the amount of receivables BNSF Railway could sell, the combined dilution and delinquency percentages would have to exceed an established threshold. BNSF Railway has historically experienced very low levels of dilution or delinquency and was below the established reserve threshold at September 30, 2009. Based on the current levels, if dilution or delinquency percentages were to increase by one percentage point, there would be no impact to the amount of receivables BNSF Railway could sell.

Receivables eligible under the A/R sales program do not include receivables over 90 days past due or concentrations over certain limits with any one customer and certain other receivables. At September 30, 2009 and December 31, 2008, $15 million and $9 million, respectively, of such accounts receivable were greater than 90 days old.

BNSF Railway maintains an allowance for bill adjustments and uncollectible accounts based upon the expected collectibility of accounts receivable, including receivables transferred to the master trust. At September 30, 2009 and December 31, 2008, $31 million and $43 million, respectively, of such allowances had been recorded, of which $31 million and $42 million, respectively, had been recorded as a reduction to accounts receivable, net. The remaining $1 million at December 31, 2008 had been recorded in other current liabilities because it related to the outstanding undivided interests held by investors. During the nine months ended September 30, 2009 and 2008, $6 million and $5 million, respectively, of accounts receivable were written off, net of recoveries. Credit losses are based on specific identification of uncollectible accounts and application of historical collection percentages by aging category.

The investors in the master trust have no recourse to BNSF Railway’s other assets except for customary warranty and indemnity claims. Creditors of BNSF Railway have no recourse to the assets of the master trust or SFRC unless and until all claims of their respective creditors have been paid. The A/R sales program includes thresholds for dilution, delinquency, and write-off ratios that, if exceeded, allow the investors participating in this program, at their option, to cancel the program. At September 30, 2009, BNSF Railway was in compliance with these provisions.

See Note 10 to the Consolidated Financial Statements for information about recent accounting pronouncements that will have an impact on the A/R sales program upon adoption.

CA, INC.

NOTE E — TRADE AND INSTALLMENT ACCOUNTS RECEIVABLE

The Company uses installment license agreements as a standard business practice and has a history of successfully collecting substantially all amounts due under the original payment terms without making concessions on payments, software products, maintenance, or professional services. Net trade and installment accounts receivable represent amounts due from the Company’s customers. These accounts receivable balances are presented net of allowances for doubtful accounts and unamortized discounts. Unamortized discounts reflect imputed interest for the time value of money for license agreements under the Company’s prior business model. These balances do not include unbilled contractual commitments executed under the Company’s current business model. The components of Net trade and installment accounts receivable are as follows:


	September 30,			March 31,
	2009			2009
	(in millions)
Current:
Accounts receivable — billed	$	557		$	658
Accounts receivable — unbilled		67			71
Other receivables		24			34
Unbilled amounts due within the next 12 months — prior business model		102			108
Less: Allowance for doubtful accounts		(27	)		(25	)
Less: Unamortized discounts		(5	)		(7	)

Net trade and installment accounts receivable — current	$	718		$	839


Noncurrent:
Unbilled amounts due beyond the next 12 months — prior business model	$	86		$	132
Less: Unamortized discounts		(2	)		(4	)

Net installment accounts receivable — noncurrent	$	84		$	128

CAMERON INTERNATIONAL CORP

Note 5: Receivables

Receivables consisted of the following (in thousands):

	September 30, 2009			December 31, 2008
Trade receivables	$	840,820		$	897,453
Other receivables		59,746			62,557
Allowance for doubtful accounts		(22,860	)		(9,648	)
Total receivables	$	877,706		$	950,362

CONAGRA FOODS INC /DE/

4. PAYMENT-IN-KIND NOTES RECEIVABLE

In connection with the divestiture of the trading and merchandising operations, we received the Notes described in Note 2 that were recorded at an initial estimated fair value of $479 million.

The Notes were issued in three tranches: $99,990,000 original principal amount of 10.5% notes due June 19, 2010; $200,035,000 original principal amount of 10.75% notes due June 19, 2011; and $249,975,000 original principal amount of 11.0% notes due June 19, 2012.

The Notes permit payment of interest in cash or additional notes. The Notes may be redeemed in whole or in part prior to maturity at the option of the issuer of the Notes. Redemption is at par plus accrued interest. The Notes contain certain covenants that govern the issuer’s ability to make restricted payments and enter into certain affiliate transactions. The Notes also provide for the making of mandatory offers to repurchase upon certain change of control events involving the purchaser, their co-investors, or their affiliates. In the third quarter of fiscal 2009, we received a cash interest payment on the Notes of $30 million from the purchaser. The Note due June 19, 2010, which is classified within prepaid expenses and other current assets, had a carrying value of $104 million at August 30, 2009. The Notes due June 19, 2011 and June 19, 2012, which are classified as other assets, had a total carrying value of $438 million at August 30, 2009.

Based on market interest rates of comparable instruments provided by investment bankers, we estimated the fair market value of the Notes was $548 million at August 30, 2009.

Discover Financial Services

4.	Loan Receivables

Loan receivables consist of the following (dollars in thousands):


	August 31, 2009			November 30, 2008
Credit card loans:
Discover Card⁽¹⁾	$	22,290,549		$	23,348,134
Discover Business Card		431,054			466,173

Total credit card loans		22,721,603			23,814,307
Other consumer loans:
Personal loans		1,279,162			1,028,093
Student loans		1,419,513			299,929
Other		69,531			74,282

Total other consumer loans		2,768,206			1,402,304

Total loan receivables		25,489,809			25,216,611
Allowance for loan losses		(1,832,360	)		(1,374,585	)

Net loan receivables	$	23,657,449		$	23,842,026

(1)	Amount includes $12.5 billion and $14.8 billion of the Company’s seller’s interest in credit card securitizations at August 31, 2009 and November 30, 2008, respectively. See Note 5: Credit Card Securitization Activities for further information.

The following table provides changes in the Company’s allowance for loan losses by loan type for the three and nine months ended August 31, 2009 and August 31, 2008 (dollars in thousands):


	For the Three Months Ended August 31,						For the Nine Months Ended August 31,
	2009			2008			2009			2008
Balance at beginning of period	$	1,986,473		$	846,775		$	1,374,585		$	759,925
Provision for loan losses:
Credit card loans		354,408			348,310			1,877,327			841,553
Other consumer loans		26,591			16,528			85,346			39,886

Total provision for loan losses		380,999			364,838			1,962,673			881,439
Charge-offs:
Credit card loans		(559,672	)		(290,108	)		(1,604,491	)		(803,951	)
Other consumer loans		(21,179	)		(2,287	)		(46,559	)		(3,085	)

Total charge-offs		(580,851	)		(292,395	)		(1,651,050	)		(807,036	)
Recoveries:
Credit card loans		45,486			40,420			145,503			125,032
Other consumer loans		253			131			649			409

Total recoveries		45,739			40,551			146,152			125,441

Net charge-offs		(535,112	)		(251,844	)		(1,504,898	)		(681,595	)

Balance at end of period	$	1,832,360		$	959,769		$	1,832,360		$	959,769

Information regarding net charge-offs of interest and fee revenues on credit card loans is as follows (dollars in thousands):


	For the Three Months Ended August 31,				For the Nine Months Ended August 31,
	2009		2008		2009		2008
Interest accrued subsequently charged off, net of recoveries (recorded as a reduction of interest income)	$	114,828	$	63,544	$	363,769	$	182,670
Loan fees accrued subsequently charged off, net of recoveries (recorded as a reduction to other income)	$	43,730	$	27,441	$	134,578	$	78,426

Information regarding loan receivables that are over 90 days delinquent and accruing interest and loan receivables that are not accruing interest is as follows (dollars in thousands):


	August 31, 2009		November 30, 2008
Loans over 90 days delinquent and accruing interest	$	524,875	$	444,324
Loans not accruing interest	$	218,543	$	173,123

EMC CORP

9. Notes Receivable

In June 2009, we entered into a term loan agreement with Quantum Corporation (“Quantum”), pursuant to which Quantum borrowed a principal amount equal to $75.4 million from us. The agreement requires quarterly interest payments at a rate of 12% per annum. The scheduled maturity date of this loan is September 30, 2014.

In June 2009, we entered into a second term loan agreement with Quantum pursuant to which Quantum borrowed an aggregate principal amount equal to $46.3 million from us. This second loan agreement has terms similar to the first loan agreement with quarterly interest payments at a rate of 12% per annum and provides for two tranches of borrowings. Quantum borrowed an amount equal to $24.6 million under the first tranche, with a scheduled maturity date of September 30, 2014 and an amount equal to $21.7 million under the second tranche, with a scheduled maturity date of December 31, 2011.

As of September 30, 2009, the aggregate outstanding principal amount under all loans was $121.7 million. These loans are junior to Quantum’s current senior debt and senior to all other indebtedness. These notes are included in “other assets, net” in the consolidated balance sheet.

FLEXTRONICS INTERNATIONAL LTD.

8. TRADE RECEIVABLES SECURITIZATION

The Company continuously sells designated pools of trade receivables under two asset backed securitization programs.

Global Asset-Backed Securitization Agreement

The Company continuously sells a designated pool of trade receivables to a third-party qualified special purpose entity, which in turn sells an undivided ownership interest to two commercial paper conduits, administered by an unaffiliated financial institution. In addition to these commercial paper conduits, the Company participates in the securitization agreement as an investor in the conduit. The securitization agreement allows the operating subsidiaries participating in the securitization program to receive a cash payment for sold receivables, less a deferred purchase price receivable. The Company continues to service, administer and collect the receivables on behalf of the special purpose entity and receives a servicing fee of 1.00% of serviced receivables per annum. Servicing fees recognized during the three-month and six-month periods ended October 2, 2009 and September 26, 2008 were not material and are included in Interest and other expense, net within the Condensed Consolidated Statements of Operations. As the Company estimates that the fee it receives in return for its obligation to service these receivables is at fair value, no servicing assets or liabilities are recognized.

During October 2009, the agreement was amended such that the Obligor Specific Tranche (“OST”) in the amount of $100.0 million was removed, and the maximum investment limit of the two commercial paper conduits was increased to $500.0 million exclusive of the OST. Additionally, the Company now pays commitment and program fees totaling 1.5% per annum under the facility to the extent funded through the issuance of commercial paper.

The third-party special purpose entity is a qualifying special purpose entity, and accordingly, the Company does not consolidate this entity. As of October 2, 2009 and March 31, 2009, approximately $462.1 million and $422.0 million of the Company’s accounts receivable, respectively, had been sold to this third-party qualified special purpose entity. The amounts represent the face amount of the total outstanding trade receivables on all designated customer accounts on those dates. The accounts receivable balances that were sold under this agreement were removed from the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. The Company received net cash proceeds of approximately $299.4 million and $298.1 million from the commercial paper conduits for the sale of these receivables as of October 2, 2009 and March 31, 2009, respectively. The difference between the amount sold to the commercial paper conduits (net of the Company’s investment participation) and net cash proceeds received from the commercial paper conduits is recognized as a loss on sale of the receivables and recorded in Interest and other expense, net in the Condensed Consolidated Statements of Operations. The Company has a recourse obligation that is limited to the deferred purchase price receivable. The deferred purchase price receivable, which approximates 5% of the total sold receivables, and the Company’s own investment participation, the aggregate total of which was approximately $162.7 million and $123.8 million as of October 2, 2009 and March 31, 2009, respectively, is recorded in Other current assets in the Condensed Consolidated Balance Sheets as of October 2, 2009 and March 31, 2009. The amount of the Company’s own investment participation varies depending on certain criteria, mainly the collection performance on the sold receivables. As the recoverability of the trade receivables underlying the Company’s own investment participation is determined in conjunction with the Company’s accounting policies for determining provisions for doubtful accounts prior to sale into the third party qualified special purpose entity, the fair value of the Company’s own investment participation reflects the estimated recoverability of the underlying trade receivables.

North American Asset-Backed Securitization Agreement

The Company continuously sells a designated pool of trade receivables to an affiliated special purpose vehicle, which in turn sells an undivided ownership interest to an agent on behalf of two commercial paper conduits administered by unaffiliated financial institutions. The Company continues to service, administer and collect the receivables on behalf of the special purpose entity and receives a servicing fee of 0.50% per annum on the outstanding balance of the serviced receivables. Servicing fees recognized during the three-month and six month periods ended October 2, 2009 were not material and are included in Interest and other expense, net within the Condensed Consolidated Statements of Operations. As the Company estimates that the fee it receives in return for its obligation to service these receivables is at fair value, no servicing assets or liabilities are recognized.

The maximum investment limit of the two commercial paper conduits is $300.0 million. During September 2009, the agreement was amended such that the Company pays commitment fees of 0.80% per annum on the aggregate amount of the liquidity commitments of the financial institutions under the facility (which approximates the maximum investment limit) and program fees of 0.70% on the aggregate amounts invested under the facility by the conduits to the extent funded through the issuance of commercial paper.

The affiliated special purpose vehicle is not a qualifying special purpose entity, since the Company, by design of the transaction, absorbs the majority of expected losses from transfers of trade receivables into the special purpose vehicle and, as such, is deemed the primary beneficiary of this entity. Accordingly, the Company consolidates the special purpose vehicle. As of October 2, 2009 and March 31, 2009, the Company transferred approximately $426.4 million and $448.7 million, respectively, of receivables into the special purpose vehicle described above. The Company sold approximately $180.2 million of the $426.4 million of receivables as of October 2, 2009, and $173.8 million of the $448.7 million of receivables as of March 31, 2009 to the two commercial paper conduits and received approximately $179.5 million and $173.1 million as of October 2, 2009 and March 31, 2009, respectively, in net cash proceeds for the sales. The accounts receivable balances that were sold to the two commercial paper conduits under this agreement were removed from the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows, and the difference between the amount sold and net cash proceeds received was recognized as a loss on sale of the receivables, and is recorded in Interest and other expense, net in the Condensed Consolidated Statements of Operations. The remaining trade receivables transferred into the special purpose vehicle and not sold to the two commercial paper conduits comprise the primary assets of that entity, and are included in trade accounts receivable, net in the Condensed Consolidated Balance Sheets of the Company. The recoverability of these trade receivables, both those included in the Condensed Consolidated Balance Sheets and those sold but uncollected by the commercial paper conduits, is determined in conjunction with the Company’s accounting policies for determining provisions for doubtful accounts. Although the special purpose vehicle is fully consolidated by the Company, it is a separate corporate entity and its assets are available first to satisfy the claims of its creditors.

The Company also sold accounts receivables to certain third-party banking institutions with limited recourse, which management believes is nominal. The outstanding balance of receivables sold and not yet collected was approximately $90.7 million and $171.6 million as of October 2, 2009 and March 31, 2009, respectively. These receivables were removed from the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows.

FORD MOTOR CO

NOTE 2. FINANCE RECEIVABLES – FINANCIAL SERVICES SECTOR

Net finance receivables were as follows (in millions):

	September 30, 2009			December 31, 2008
Retail (including direct financing leases)	$	60,269		$	67,316
Wholesale		18,489			27,483
Other finance receivables		3,708			4,057
Total finance receivables		82,466			98,856
Unearned interest supplements		(1,830	)		(1,343	)
Allowance for credit losses		(1,486	)		(1,417	)
Other		23			5
Net finance receivables – sector balance sheet	$	79,173		$	96,101

Net finance receivables subject to fair value	$	74,022		$	91,584
Fair value	$	74,669		$	84,615

Net finance receivables – sector balance sheet	$	79,173		$	96,101
Reclassification of receivables purchased from Automotive sector and Other Financial Services to Other receivables, net		(3,560	)		(2,617	)
Net finance receivables – consolidated balance sheet	$	75,613		$	93,484

The fair value of finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects the current credit, interest rate, and prepayment risks associated with similar types of instruments.

General Electric Company

5. GECS Financing Receivables and Allowance for Losses on Financing Receivables
GECS financing receivables – net, consisted of the following.

	At
	September 30,		December 31,
(In millions)	2009		2008

Loans, net of deferred income	$	298,432	$	310,203
Investment in financing leases, net of deferred income		57,446		67,578
		355,878		377,781
Less allowance for losses		(7,360)		(5,325)
Financing receivables – net(a)	$	348,518	$	372,456

(a) Included $4,406 million and $6,461 million related to consolidated, liquidating securitization entities at September 30, 2009 and December 31, 2008, respectively. In addition, financing receivables at September 30, 2009 and December 31, 2008 included $2,880 million and $2,736 million, respectively, relating to loans that had been acquired in a transfer but have been subject to credit deterioration since origination per FASB ASC 310, Receivables.

Effective January 1, 2009, loans acquired in a business acquisition are recorded at fair value, which incorporates our estimate at the acquisition date of the credit losses over the remaining life of the portfolio. As a result, the allowance for loan losses is not carried over at acquisition. This may result in lower reserve coverage ratios prospectively. Details of financing receivables – net follow.

	At
	September 30,		December 31,
(In millions)	2009		2008

Commercial Lending and Leasing (CLL)(a)
Americas	$	92,263	$	105,410
Europe		40,383		37,767
Asia		14,096		16,683
Other		776		786
		147,518		160,646
Consumer(a)
Non-U.S. residential mortgages		61,308		60,753
Non-U.S. installment and revolving credit		25,197		24,441
U.S. installment and revolving credit		22,324		27,645
Non-U.S. auto		14,366		18,168
Other		13,191		11,541
		136,386		142,548

Real Estate		45,471		46,735

Energy Financial Services		8,362		8,392

GE Capital Aviation Services (GECAS)(b)		15,046		15,429

Other(c)		3,095		4,031
		355,878		377,781
Less allowance for losses		(7,360)		(5,325)
Total	$	348,518	$	372,456

(a)        During the first quarter of 2009, we transferred Artesia from CLL to Consumer. Prior-period amounts were reclassified to conform to the current-period’s presentation.
(b)        Included loans and financing leases of $12,927 million and $13,078 million at September 30, 2009 and December 31, 2008, respectively, related to commercial aircraft at Aviation Financial Services.
(c)        Consisted of loans and financing leases related to certain consolidated, liquidating securitization entities.

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 and specific reserves follows. The vast majority of our consumer and a portion of our CLL nonearning receivables are excluded from this definition, as they represent smaller balance homogeneous loans that we evaluate collectively by portfolio for impairment.

	At
	September 30,		December 31,
(In millions)	2009		2008

Loans requiring allowance for losses	$	8,842	$	2,712
Loans expected to be fully recoverable		3,218		871
Total impaired loans	$	12,060	$	3,583

Allowance for losses (specific reserves)	$	1,874	$	635
Average investment during the period		7,463		2,064
Interest income earned while impaired(a)		133		48

(a) Recognized principally on cash basis.

Impaired loans increased by $8.5 billion from December 31, 2008 to September 30, 2009 primarily relating to increases at Real Estate ($5.4 billion) and CLL ($2.2 billion). Impaired loans increased by $4.0 billion from June 30, 2009 to September 30, 2009, primarily relating to increases at Real Estate ($2.9 billion) and CLL ($0.7 billion). The increase in impaired loans and related specific reserves in Real Estate reflects our current estimate of collateral values of the underlying properties, and our estimate of loans which are not past due, but for which it is probable that we will be unable to collect the full principal balance at maturity due to a decline in the underlying value of the collateral. Of our $6.2 billion impaired loans at Real Estate at September 30, 2009, approximately $4 billion are currently paying in accordance with the contractual terms of the loan. Impaired loans at CLL primarily represent senior secured lending positions.

GECS Allowance for Losses on Financing Receivables

	Balance		Provision								Balance
	January 1,		charged to				Gross				September 30,
(In millions)	2009		operations		Other(a)		write-offs		Recoveries		2009

CLL(b)
Americas	$	843	$	969	$	(34)	$	(746)	$	66	$	1,098
Europe		288		412		8		(225)		17		500
Asia		163		188		8		(136)		19		242
Other		2		4		2		(2)		–		6

Consumer(b)
Non-U.S. residential
mortgages		383		805		81		(424)		130		975
Non-U.S. installment
and revolving credit		1,051		1,347		41		(1,702)		376		1,113
U.S. installment and
revolving credit		1,700		2,631		(761)		(2,134)		132		1,568
Non-U.S. auto		222		351		31		(441)		138		301
Other		226		284		25		(329)		73		279

Real Estate		301		903		13		(190)		1		1,028

Energy Financial
Services		58		42		1		–		–		101

GECAS		60		69		0		(3)		–		126

Other		28		16		0		(22)		1		23
Total	$	5,325	$	8,021	$	(585)	$	(6,354)	$	953	$	7,360

(a) Other primarily included the effects of securitization activity and currency exchange.
(b) During the first quarter of 2009, we transferred Artesia from CLL to Consumer. Prior-period amounts were reclassified to conform to the current-period’s presentation.

	Balance		Provision									Balance
	January 1,		charged to					Gross				September 30,
(In millions)	2008		operations		Other		(a)	write-offs		Recoveries		2008

CLL(b)
Americas	$	471	$	394	$	157		$	(371)	$	52	$	703
Europe		232		145		(59)			(141)		23		200
Asia		226		78		(7)			(188)		5		114
Other		3		2		(1)			0		1		5

Consumer(b)
Non-U.S. residential
mortgages		246		147		(15)			(135)		52		295
Non-U.S. installment
and revolving credit		1,371		1,259		(57)			(1,968)		722		1,327
U.S. installment and
revolving credit		985		1,908		(416)			(1,477)		215		1,215
Non-U.S. auto		324		260		(59)			(479)		225		271
Other		167		136		25			(182)		54		200

Real Estate		168		47		4			(10)		1		210

Energy Financial
Services		19		12		3			0		0		34

GECAS		8		47		0			(1)		0		54

Other		18		18		(1)			(15)		0		20
Total	$	4,238	$	4,453	$	(426)		$	(4,967)	$	1,350	$	4,648

(a) Other primarily included the effects of securitization activity, currency exchange, dispositions and acquisitions.
(b) During the first quarter of 2009, we transferred Artesia from CLL to Consumer. Prior-period amounts were reclassified to conform to the current-period’s presentation.

General Electric Company

5. GECS Financing Receivables and Allowance for Losses on Financing Receivables
GECS financing receivables – net, consisted of the following.

	At
	September 30,		December 31,
(In millions)	2009		2008

Loans, net of deferred income	$	298,432	$	310,203
Investment in financing leases, net of deferred income		57,446		67,578
		355,878		377,781
Less allowance for losses		(7,360)		(5,325)
Financing receivables – net(a)	$	348,518	$	372,456

	At
	September 30,		December 31,
(In millions)	2009		2008

Commercial Lending and Leasing (CLL)(a)
Americas	$	92,263	$	105,410
Europe		40,383		37,767
Asia		14,096		16,683
Other		776		786
		147,518		160,646
Consumer(a)
Non-U.S. residential mortgages		61,308		60,753
Non-U.S. installment and revolving credit		25,197		24,441
U.S. installment and revolving credit		22,324		27,645
Non-U.S. auto		14,366		18,168
Other		13,191		11,541
		136,386		142,548

Real Estate		45,471		46,735

Energy Financial Services		8,362		8,392

GE Capital Aviation Services (GECAS)(b)		15,046		15,429

Other(c)		3,095		4,031
		355,878		377,781
Less allowance for losses		(7,360)		(5,325)
Total	$	348,518	$	372,456

	At
	September 30,		December 31,
(In millions)	2009		2008

Loans requiring allowance for losses	$	8,842	$	2,712
Loans expected to be fully recoverable		3,218		871
Total impaired loans	$	12,060	$	3,583

Allowance for losses (specific reserves)	$	1,874	$	635
Average investment during the period		7,463		2,064
Interest income earned while impaired(a)		133		48

GECS Allowance for Losses on Financing Receivables

	Balance		Provision								Balance
	January 1,		charged to				Gross				September 30,
(In millions)	2009		operations		Other(a)		write-offs		Recoveries		2009

CLL(b)
Americas	$	843	$	969	$	(34)	$	(746)	$	66	$	1,098
Europe		288		412		8		(225)		17		500
Asia		163		188		8		(136)		19		242
Other		2		4		2		(2)		–		6

Consumer(b)
Non-U.S. residential
mortgages		383		805		81		(424)		130		975
Non-U.S. installment
and revolving credit		1,051		1,347		41		(1,702)		376		1,113
U.S. installment and
revolving credit		1,700		2,631		(761)		(2,134)		132		1,568
Non-U.S. auto		222		351		31		(441)		138		301
Other		226		284		25		(329)		73		279

Real Estate		301		903		13		(190)		1		1,028

Energy Financial
Services		58		42		1		–		–		101

GECAS		60		69		0		(3)		–		126

Other		28		16		0		(22)		1		23
Total	$	5,325	$	8,021	$	(585)	$	(6,354)	$	953	$	7,360

	Balance		Provision									Balance
	January 1,		charged to					Gross				September 30,
(In millions)	2008		operations		Other		(a)	write-offs		Recoveries		2008

CLL(b)
Americas	$	471	$	394	$	157		$	(371)	$	52	$	703
Europe		232		145		(59)			(141)		23		200
Asia		226		78		(7)			(188)		5		114
Other		3		2		(1)			0		1		5

Consumer(b)
Non-U.S. residential
mortgages		246		147		(15)			(135)		52		295
Non-U.S. installment
and revolving credit		1,371		1,259		(57)			(1,968)		722		1,327
U.S. installment and
revolving credit		985		1,908		(416)			(1,477)		215		1,215
Non-U.S. auto		324		260		(59)			(479)		225		271
Other		167		136		25			(182)		54		200

Real Estate		168		47		4			(10)		1		210

Energy Financial
Services		19		12		3			0		0		34

GECAS		8		47		0			(1)		0		54

Other		18		18		(1)			(15)		0		20
Total	$	4,238	$	4,453	$	(426)		$	(4,967)	$	1,350	$	4,648

HARRIS CORP /DE/

Note E — Receivables

Receivables are summarized below:


	October 2,				July 3,
	2009				2009
	(In millions)
Accounts receivable		$	602.9			$	630.4
Unbilled costs on cost-plus contracts			146.9				149.1
Notes receivable due within one year, net			4.4				4.5

			754.2				784.0
Less allowances for collection losses			(11.5	)			(13.2	)

		$	742.7			$	770.8

HCP, INC.

(6) Loans Receivable

The following table summarizes the Company’s loans receivable (in thousands):

	September 30, 2009									December 31, 2008
	Real Estate Secured			Other			Total			Real Estate Secured		Other			Total
Mezzanine	$	—		$	999,118		$	999,118		$	—	$	999,891		$	999,891
Joint venture partners	—			778			778			—		7,055			7,055
Other	785,636			83,700			869,336			71,224		81,725			152,949
Unamortized discounts, fees and costs	(123,920		)	(70,983		)	(194,903		)	—		(83,262		)	(83,262		)
Loan loss allowance	—			—			—			—		(241		)	(241		)
	$	661,716		$	1,012,613		$	1,674,329		$	71,224	$	1,005,168		$	1,076,392

On October 5, 2006, through its merger with CRP, the Company acquired an interest-only, senior secured term loan made to an affiliate of the Cirrus Group, LLC (“Cirrus”). The loan had a maturity date of December 31, 2008, with a one-year extension period at the option of the borrower, subject to certain conditions, under which amounts were borrowed to finance the acquisition, development, syndication and operation of new and existing surgical partnerships. The loan accrues interest at a rate of 14.0%, of which 9.5% is payable monthly and the balance of 4.5% is deferred until maturity. The loan is collateralized by all of the assets of the borrower (comprised primarily of interests in partnerships operating surgical facilities, some of which are on the premises of properties owned by HCP Ventures IV or the Company) and is supported in part by limited guarantees made by certain principals of Cirrus. Recourse under certain of these guarantees is limited to the guarantors’ respective interests in certain entities owning real estate that are pledged to secure such guarantees. At December 31, 2008, the borrower did not meet the conditions necessary to exercise its extension option and did not repay the loan upon maturity. On April 22, 2009, new terms for extending the maturity date of the loan were agreed to, including the payment of a $1.1 million extension fee, and the maturity was extended to December 31, 2010. At September 30, 2009 and December 31, 2008, the carrying value of this loan, including accrued interest of $3 million and $0.6 million, respectively, was $85 million and $80 million, respectively. In July 2009, the Company issued a notice of default for the borrower’s failure to make interest payments. Through September 30, 2009 the borrower has failed to make four of its contractual payments. However, at September 30, 2009, the Company continues to maintain this loan on accrual status as the Company believes it is reasonably assured it will collect all amounts outstanding under the loan, including accrued but unpaid interest, based on the estimated fair value of underlying collateral and guarantees supporting the loan. During the three and nine months ended September 30, 2009, the Company recognized interest income from this loan of $3.2 million and $9.1 million, respectively, and received cash payments from this borrower of $0.6 million and $3.0 million, respectively.

On December 21, 2007, the Company made an investment in mezzanine loans having an aggregate face value of $1.0 billion, for approximately $900 million, as part of the financing for The Carlyle Group’s $6.3 billion purchase of HCR ManorCare. These interest-only loans mature in January 2013 and bear interest on their face values at a floating rate of one-month London Interbank Offered Rate (“LIBOR”) plus 4.0%. These loans are mandatorily pre-payable in January 2012 unless the borrower satisfies certain performance conditions. At closing, the loans were secured by an indirect pledge of equity ownership in 339 HCR ManorCare facilities located in 30 states and were subordinate to other debt of approximately $3.6 billion. At September 30, 2009, the carrying value of these loans was $930 million.

On August 3, 2009, the Company purchased a $720 million participation in first mortgage debt of HCR ManorCare, at a discount of $130 million, for approximately $590 million. The $720 million participation bears interest at LIBOR plus 1.25% and represents 45% of the $1.6 billion most senior tranche of HCR ManorCare’s mortgage debt incurred as part of the above mentioned financing for The Carlyle Group’s acquisition of Manor Care, Inc. in December 2007. The mortgage debt matures in January 2012, with a one-year extension available at the borrower’s option subject to certain performance conditions, and was secured by a first lien on 331 facilities located in 30 states at closing. At September 30, 2009, the carrying value of the participation in this loan was $595 million.

HONEYWELL INTERNATIONAL INC.

NOTE 7. Accounts, Notes and Other Receivables

	September 30, 2009	December 31, 2008

Trade	$6,243	$5,893
Other	455	422
	6,698	6,315
Less - Allowance for doubtful accounts	(234)	(186)
	$6,464	$6,129

International Business Machines Corporation

5. Financing Receivables: The following table presents financing receivables, net of allowances for doubtful accounts, including residual values.

	At September 30,		At December 31,
(Dollars in millions)	2009		2008
Current:
Net investment in sales-type and direct financing leases	$	4,181	$	4,226
Commercial financing receivables	3,800		5,781
Client loan receivables	4,411		4,861
Installment payment receivables	552		608
Total	$	12,944	$	15,477
Noncurrent:
Net investment in sales-type and direct financing leases	$	5,397	$	5,938
Commercial financing receivables	60		94
Client loan receivables	4,367		4,718
Installment payment receivables	405		433
Total	$	10,229	$	11,183

Net investment in sales-type and direct financing leases is for leases that relate principally to the company’s systems products and are for terms ranging generally from two to six years. Net investment in sales-type and direct financing leases includes unguaranteed residual values of $868 million and $916 million at September 30, 2009 and December 31, 2008, respectively, and is reflected net of unearned income of $962 million and $1,049 million and of allowance for doubtful accounts of $179 million and $217 million at those dates, respectively.

Commercial financing receivables relate primarily to inventory and accounts receivable financing for dealers and remarketers of IBM and non-IBM products. Payment terms for inventory and accounts receivable financing generally range from 30 to 90 days.

Client loan receivables relate to loans that are provided by Global Financing primarily to the company’s clients to finance the purchase of the company’s software and services. Separate contractual relationships on these financing arrangements are for terms ranging generally from two to seven years. Each financing contract is priced independently at competitive market rates. The company has a history of enforcing the terms of these separate financing agreements.

The company utilizes certain of its financing receivables as collateral for non-recourse borrowings. Financing receivables pledged as collateral for borrowings were $260 million and $373 million at September 30, 2009 and December 31, 2008, respectively.

The company did not have any financing receivables held for sale as of September 30, 2009 and December 31, 2008.

Kimco Realty Corporation

8. Mortgages and Other Financing Receivables

During March 2009, the Company committed approximately $6.0 million as its share of a $20.0 million one-year Debtor-in-Possession (“DIP”) facility to an auto parts supplier. The DIP facility bears interest at LIBOR plus 11% with a floor of 15% per annum and is collateralized by all assets of the borrower. As of September 30, 2009, there was no outstanding balance on this facility.

During the nine months ended September 30, 2009, the Company sold a portion of its participation in two mortgage receivables, at par, aggregating approximately $6.8 million to an unaffiliated third party. No gain or loss was recognized in connection with these transactions.

During June 2009, the Company recognized a non-cash impairment charge of $3.5 million, against the carrying value of a mortgage receivable that was in default. The Company began foreclosure proceedings on the underlying property and anticipates this process to be completed in the fourth quarter 2009. This impairment charge reflects the decrease in the estimated fair value, based on the estimated sales price, of the collateral.

LOEWS CORP

6. Receivables


	September 30, 2009		December 31, 2008
(In millions)

Reinsurance	$	7,001	$	7,761
Other insurance		1,931		2,039
Receivable from brokers		1,331		936
Accrued investment income		434		360
Federal income taxes		465		382
Other		984		844
Total		12,146		12,322
Less: allowance for doubtful accounts on reinsurance receivables		357		366
allowance for other doubtful accounts		267		284
Receivables	$	11,522	$	11,672

MEDCO HEALTH SOLUTIONS INC

5. accounts receivable

The Company separately reports accounts receivable due from manufacturers and accounts receivable due from clients. Client accounts receivable are presented net of allowance for doubtful accounts and include a reduction for rebates and guarantees payable to clients when these payables are settled on a net basis in the form of an invoice credit. As of September 26, 2009 and December 27, 2008, identified net Specialty Pharmacy accounts receivable, primarily due from payors and patients, amounted to $461.3 million and $476.4 million, respectively.

The Company’s allowance for doubtful accounts as of September 26, 2009 and December 27, 2008 of $136.8 million and $120.0 million, respectively, includes $82.5 million and $71.9 million, respectively, related to the Specialty Pharmacy segment. The relatively higher allowance for the Specialty Pharmacy segment reflects a different credit risk profile than the pharmacy benefit management (“PBM”) business, and is characterized by reimbursement through medical coverage, including government agencies, and higher patient co-payments. See Note 9, “Segment Reporting,” to the unaudited interim condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for more information on the Specialty Pharmacy segment. The Company’s allowance for doubtful accounts as of September 26, 2009 and December 27, 2008 also includes $36.9 million and $34.6 million, respectively, related to PolyMedica Corporation (“PolyMedica”) for diabetes supplies, which are primarily reimbursed by insurance companies and government agencies. The increase in the reserve balance reflects increased coverage of aged balances. In addition, the Company’s allowance for doubtful accounts reflects amounts associated with member premiums for the Company’s Medicare Part D product offerings.

NEWFIELD EXPLORATION CO /DE/

8. Accounts Receivable:

As of the indicated dates, our accounts receivable consisted of the following:

	September 30, 2009			December 31, 2008
	(In millions)

Revenue	$	157		$	157
Joint interest		114			197
Other		28			26
Reserve for doubtful accounts		(6	)		(5	)
Total accounts receivable	$	293		$	375

NORTHERN TRUST CORP

5. Loans and Leases – Amounts outstanding in selected loan categories are shown below.


(In Millions)	September 30, 2009			December 31, 2008			September 30, 2008
U.S.
Residential Real Estate	$	10,818.2		$	10,381.4		$	9,957.6
Commercial		6,807.5			8,253.6			7,741.7
Commercial Real Estate		3,126.9			3,014.0			2,940.8
Personal		4,738.8			4,766.7			4,629.0
Other		811.9			1,404.2			1,747.8
Lease Financing		1,015.2			1,143.8			1,122.6

Total U.S.		27,318.5			28,963.7			28,139.5
Non-U.S.		804.4			1,791.7			1,730.7

Total Loans and Leases	$	28,122.9		$	30,755.4		$	29,870.2
Reserve for Credit Losses Assigned to Loans and Leases		(307.8	)		(229.1	)		(194.7	)

Net Loans and Leases	$	27,815.1		$	30,526.3		$	29,675.5

Other U.S. loans and non-U.S. loans included $1.0 billion at September 30, 2009, $1.9 billion at December 31, 2008, and $2.5 billion at September 30, 2008 of short duration advances, primarily related to overdrafts associated with the timing of custody clients’ investments.

The following table shows outstanding amounts of nonperforming and impaired loans as of September 30, 2009, December 31, 2008, and September 30, 2008.


(In Millions)	September 30, 2009		December 31, 2008		September 30, 2008
Nonperforming Loans	$	292.3	$	96.7	$	58.8
Nonperforming Loans Classified as Impaired:
Impaired Loans with Reserves	$	112.7	$	31.5	$	33.1
Impaired Loans without Reserves*		135.5		54.1		15.5

Total Impaired Loans	$	248.2	$	85.6	$	48.6
Reserves for Impaired Loans	$	45.7	$	15.5	$	7.9
Average Balance of Impaired Loans During the Period	$	198.8	$	31.5	$	28.4

*	When an impaired loan’s discounted cash flows, collateral value, or market price equals or exceeds its carrying value (net of charge-offs), a reserve is not required.

At September 30, 2009, residential real estate loans totaling $9.7 million were held for sale and carried at the lower of cost or market. Loan commitments for residential real estate loans that will be held for sale when funded are carried at fair value and had a total notional amount of $25.9 million at September 30, 2009. All other loan commitments are carried at the amount of unamortized fees with a reserve for credit loss liability recognized for estimated probable losses. At September 30, 2009, legally binding commitments to extend credit totaled $25.7 billion compared with $25.4 billion at December 31, 2008, and $24.7 billion at September 30, 2008.

PACCAR INC

NOTE D – Finance Receivables

Loans represent fixed- or floating-rate loans to customers collateralized by the vehicles purchased. Retail direct financing and sales-type finance leases are contracts leasing equipment to retail customers and dealers, respectively. These leases are reported as the sum of minimum lease payments receivable and estimated residual value of the property subject to the contracts, reduced by unearned interest on finance leases which is shown separately. Dealer wholesale financing represents floating-rate wholesale loans to PACCAR dealers for new and used trucks. The loans are collateralized principally by the trucks being financed. Interest and other receivables are interest due on loans and leases and other amounts due in the normal course of business. The allowance for losses for loans, leases and other in each geographic region are evaluated together as a group since they relate to a similar customer base and their contractual terms require regular payment of principal and interest primarily over 36 to 60 months and are secured by the same type of collateral. The Company specifically evaluates large accounts with past due balances or that otherwise are deemed to be at a higher risk of credit loss.

Finance and other receivables include the following:


	September 30 2009			December 31 2008
Loans	$	2,960.6		$	3,506.7
Retail direct financing leases		2,332.4			2,558.4
Sales-type finance leases		756.9			817.9
Dealer wholesale financing		1,177.3			1,635.0
Interest and other receivables		127.8			127.3
Unearned interest:
Finance leases		(370.7	)		(430.6	)

		6,984.3			8,214.7
Less allowance for losses:
Loans, leases and other		(163.2	)		(167.1	)
Dealer wholesale financing		(9.8	)		(11.2	)

	$	6,811.3		$	8,036.4

PAPA JOHNS INTERNATIONAL INC

8. Notes Receivable

Selected franchisees have borrowed funds from our subsidiary, Capital Delivery, Ltd., principally for use in the acquisition, construction and development of their restaurants. We have also entered into loan agreements with certain franchisees that purchased restaurants from us or from other franchisees. In addition, as part of the 2006 sale of our former Perfect Pizza operations, we have a loan outstanding from the purchaser. Loans outstanding, net of allowance for doubtful accounts, were approximately $11.2 million as of September 27, 2009 and $7.6 million as of December 28, 2008.

We have recorded reserves of $7.3 million and $5.4 million as of September 27, 2009 and December 28, 2008, respectively, for potentially uncollectible notes receivable from franchisees and the purchaser of the Perfect Pizza operations. We concluded the reserves were necessary due to certain franchisees’ economic performance and underlying collateral value and credit risk related to the Perfect Pizza operations.

In connection with the 2006 sale of our former Perfect Pizza operations, we remain contingently liable for payment under approximately 70 lease arrangements, primarily associated with Perfect Pizza restaurant sites for which the Perfect Pizza franchisor is primarily liable. The leases have varying terms, the latest of which expires in 2017. The potential amount of undiscounted payments we could be required to make in the event of non-payment by Perfect Pizza and associated franchisees is approximately $6.2 million. We have not recorded a liability with respect to such leases as of September 27, 2009, as our cross-default provisions with the Perfect Pizza franchisor substantially reduce the risk that we will be required to make payments under these leases at the present time.

PLAINS ALL AMERICAN PIPELINE LP

Note 3—Trade Accounts Receivable

We review all outstanding accounts receivable balances on a monthly basis and record a reserve for amounts that we expect will not be fully recovered. Actual balances are not applied against the reserve until substantially all collection efforts have been exhausted. At September 30, 2009 and December 31, 2008, substantially all of our net accounts receivable were less than 30 days past their scheduled invoice date. Our allowance for doubtful accounts receivable totaled $9 million and $5 million at September 30, 2009 and December 31, 2008, respectively. Although we consider our allowance for doubtful trade accounts receivable to be adequate, actual amounts could vary significantly from estimated amounts.

At September 30, 2009 and December 31, 2008, we had received approximately $153 million and $66 million, respectively, of advance cash payments from third parties to mitigate credit and performance risk. In addition, we enter into netting arrangements with our counterparties. These arrangements cover a significant part of our transactions and also serve to mitigate credit and performance risk.

QUALCOMM INC/DE

Accounts Receivable.

	September 27, 2009		September 28, 2008
	(In millions)
Trade, net of allowances for doubtful accounts of $4 and $38, respectively	$	639	$	3,732
Long-term contracts		38		33
Investment receivables		2		412
Other		21		10
	$	700	$	4,187

Trade accounts receivable at September 28, 2008 included a $2.5 billion licensing receivable that was paid in October 2008. Investment receivables at September 28, 2008 primarily related to amounts due for redemptions of money market investments for which the Company received partial payment in fiscal 2009, and the remaining $48 million net receivable was recorded in other assets at September 27, 2009, substantially all of which was classified as noncurrent due to the uncertainty regarding the timing of distributions.

SCHWAB CHARLES CORP

Loans to Banking Clients and Related Allowance for Credit Losses

The composition of the loan portfolio is as follows:


	September 30, 2009			December 31, 2008
Residential real estate mortgages	$	3,450		$	3,195
Home equity lines of credit		3,209			2,662
Secured personal loans		274			187
Other		24			20

Total loans to banking clients		6,957			6,064
Allowance for credit losses		(44	)		(20	)

Total loans to banking clients – net	$	6,913		$	6,044

Included in the loan portfolio are nonaccrual loans totaling $26 million and $8 million at September 30, 2009 and December 31, 2008, respectively. Nonperforming assets, which include nonaccrual loans and other real estate owned, totaled $28 million and $9 million at September 30, 2009 and December 31, 2008, respectively. There were no loans accruing interest that were contractually 90 days or more past due at September 30, 2009 or December 31, 2008. The amount of interest revenue that would have been earned on non-accrual loans, versus interest revenue recognized on these loans, was not material to the Company’s results of operations for the first nine months of 2009 or 2008.

Changes in the allowance for credit losses were as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
Balance at beginning of period	$	41		$	12		$	20		$	7
Charge-offs		(4	)		(1	)		(9	)		(2	)
Recoveries		—			—			—			—
Provision for credit losses		7			5			33			11

Balance at end of period	$	44		$	16		$	44		$	16

Shire plc

9. Accounts receivable, net

Accounts receivable at September 30, 2009 of $539.2 million (December 31, 2008: $395.0 million), are stated net of a provision for discounts and doubtful accounts of $14.5 million (December 31, 2008: $20.2 million).

Provision for discounts and doubtful accounts:

	2009	2008
	$’M	$’M
	_____________	_____________
As at January 1	20.2	9.8
Provision charged to operations	85.4	64.8
Provision utilization	(82.8)	(59.2)
Reclassification	(8.3)	-
	_____________	_____________
As at September 30	14.5	15.4
	_____________	_____________

During the nine months to September 30, 2009 the Company reclassified its provision for Tricare Health Care Program rebates of $8.3 million at January 1, 2009 from provisions for discounts and doubtful accounts to accounts payable and accrued expenses.

Starwood Hotel & Resorts Worldwide Inc

Note 7. Notes Receivable Securitizations and Sales

From time to time, the Company securitizes, without recourse, its fixed rate VOI notes receivable. To accomplish these securitizations, the Company transfers a pool of VOI notes receivable to third-party special purpose entities (together with the special purpose entities in the next sentence, the “SPEs”) and the SPEs transfer the VOI notes receivable to qualifying special purpose entities (“QSPEs”). The Company continues to service the securitized VOI notes receivable pursuant to servicing agreements negotiated at arms-length based on market conditions; accordingly, the Company has not recognized any servicing assets or liabilities. All of the Company’s VOI notes receivable securitizations to date have qualified to be, and have been, accounted for as sales. In order to be accounted for as a sale, the transferor must surrender control of the financial assets and receive consideration other than beneficial interests in the transferred asset.

With respect to those transactions still outstanding at September 30, 2009, the Company retains economic interests (the “Retained Interests”) in securitized VOI notes receivables through SPE ownership of QSPE beneficial interests. The Retained Interests, which are comprised of subordinated interests and interest only strips in the related VOI notes receivable, provide credit enhancement to the third-party purchasers of the related QSPE beneficial interests. Retained Interests cash flows are limited to the cash available from the related VOI notes receivable, after servicing and other related fees, absorbing 100% of any credit losses on the related VOI notes receivable and QSPE fixed rate interest expense. With respect to those transactions still outstanding at September 30, 2009, the Retained Interests are classified and accounted for as “available-for-sale” securities. Securities are classified as “available for sale” if the Company does not have the intent and ability to hold these securities to maturity or these securities were not bought with the intent to be sold in the near term. These securities are reported at fair value, with credit losses recorded in the statement of income and other unrealized gains and losses reported in stockholders’ equity.

The Company’s securitization agreements provide the Company with the option, subject to certain limitations, to repurchase or replace defaulted VOI notes receivable at their outstanding principal amounts. Such activity totaled $8 million and $21 million during the three and nine months ended September 30, 2009, respectively, and $6 million and $17 million during the three and nine months ended September 30, 2008, respectively. The Company has been able to resell the VOIs underlying the VOI notes repurchased or replaced under these provisions without incurring significant losses. The Company’s replacement of the defaulted VOI notes receivable under the securitization agreements with new VOI notes receivable resulted in net gains of approximately $0 million and $2 million during the three and nine months ended September 30, 2009, respectively, and $1 million and $3 million during the three and nine months ended September 30, 2008, respectively, which are included in vacation ownership and residential sales and services in the Company’s consolidated statements of income.

In June 2009, the Company securitized approximately $181 million of VOI notes receivable (the “2009 Securitization”) resulting in cash proceeds of approximately $125 million. The Company retained $44 million of interests in the QSPE, which included $43 million of notes the Company effectively owned after the transfer and $1 million related to the interest only strip. The related loss on the 2009 Securitization of $2 million is included in vacation ownership and residential sales and services in the Company’s consolidated statements of income.

Key assumptions used in measuring the fair value of the Retained Interests at the time of the 2009 Securitization were as follows: an average discount rate of 12.8%, an average expected annual prepayment rate including defaults of 17.9%, and an expected weighted average remaining life of prepayable notes receivable of 52 months. These key assumptions are based on the Company’s historical experience.

Although the notes effectively owned after the transfer were measured at fair value on the transfer date, they require prospective accounting treatment as notes receivable and will be carried at the basis established at the date of transfer and accrete interest over time to return to the historical cost basis. If the Company deems such amount to be non-recoverable in the future, it will record a valuation allowance. As of September 30, 2009, the value of the notes that the Company effectively owned from the 2009 Securitization was approximately $45 million, which the Company classified as “Other assets” in its consolidated balance sheets. During the three and nine months ended September 30, 2009, the Company recorded $2 million of interest income associated with these effectively owned notes.

At September 30, 2009, the aggregate outstanding principal balance of VOI notes receivable that has been securitized was $356 million. The aggregate principal amount of those VOI notes receivables that were more than 90 days delinquent at September 30, 2009 was approximately $6 million.

Gross credit losses for all VOI notes receivable that have been securitized totaled $12 million and $30 million during the three and nine months ended September 30, 2009, respectively, and $9 million and $24 million during the three and nine months ended September 30, 2008, respectively.

The Company received aggregate cash proceeds of $5 million and $16 million from the Retained Interests during the three and nine months ended September 30, 2009, respectively, and $7 million and $21 million during the three and nine months ended September 30, 2008, respectively. The Company received aggregate servicing fees of $1 million and $3 million related to these VOI notes receivable in the three and nine months ended September 30, 2009 and 2008, respectively.

At the time of each VOI notes receivable securitization and at the end of each financial reporting period, the Company estimates the fair value of its Retained Interests using a discounted cash flow model. All assumptions used in the models are reviewed and updated, if necessary, based on current trends and historical experience. The key assumption used in measuring the fair value associated with its outstanding note securitizations was as follows: an average discount rate of 9.4%, an average expected annual prepayment rate including defaults of 16.2% and an expected weighted average remaining life of prepayable notes receivable of 80 months.

The fair value of the Company’s retained interest as of September 30, 2009 and December 31, 2008 was $7 million and $19 million with amortized cost basis of $8 million and $21 million, respectively. Other-than-temporary impairments related to other factors and recognized in accumulated other comprehensive income as of September 30, 2009 and December 31, 2008 totaled $1 million and $2 million, respectively. Total other-than-temporary impairments related to credit losses recorded in gain (loss) on asset dispositions and impairments totaled $6 million and $22 million for the three and nine months ended September 30, 2009, respectively, and $2 million during the three and nine months ended September 30, 2008.

The Company completed a sensitivity analysis on the net present value of the Retained Interests to measure the change in value associated with independent changes in individual key variables. The methodology applied unfavorable changes for the key variables of expected prepayment rates, discount rates and expected gross credit losses as of September 30, 2009. The decreases in value of the Retained Interests that would result from various independent changes in key variables are shown in the chart that follows (in millions). The factors may not move independently of each other.


Annual prepayment rate:
100 basis points-dollars	$	0.4
100 basis points-percentage		5.7	%
200 basis points-dollars	$	0.9
200 basis points-percentage		12.8	%
Discount rate:
100 basis points-dollars	$	0.2
100 basis points-percentage		2.5	%
200 basis points-dollars	$	0.3
200 basis points-percentage		4.9	%
Gross annual rate of credit losses:
100 basis points-dollars	$	2.9
100 basis points-percentage		42.2	%
200 basis points-dollars	$	4.0
200 basis points-percentage		57.4	%

STATE STREET Corp

Note 3. Loans and Lease Financing

At September 30, 2009, we held commercial real estate loans with an aggregate carrying value of approximately $592 million that were purchased in 2008 pursuant to indemnified repurchase agreements. The loans, which are primarily collateralized by direct and indirect interests in commercial real estate, were recorded at their then-estimated fair value, based on management’s expectation with respect to collection of principal and interest using appropriate market discount rates as of the date of acquisition.

Although a portion of these loans is 90 days or more contractually past-due, we do not report them as past-due loans, because under applicable accounting standards, the interest earned on these loans is based on an accretable yield resulting from management’s expectation of the cash flows for each loan relative to both the timing and collection of principal and interest as of the reporting date, not contractual payment terms. These cash flow estimates are updated quarterly to reflect changes in management’s expectations, which consider market conditions.

At September 30, 2009, we held structured asset-backed loans with an aggregate carrying value of approximately $2.52 billion that were added in connection with the May 2009 consolidation of the asset-backed commercial paper conduits. These loans, which represent undivided interests in securitized pools of underlying third-party receivables, are held for investment.

The allowance for loan losses was $53 million at September 30, 2009 and $18 million at December 31, 2008. During the nine months ended September 30, 2009, activity in the allowance for loan losses was composed of an aggregate provision of approximately $114 million, of which $98 million related to the commercial real estate loans described above, offset by net charge-offs of approximately $79 million, of which $69 million related to the commercial real estate loans. At September 30, 2009, approximately $5 million of the aforementioned commercial real estate loans had been classified by management as non-performing, as the yield associated with certain of the loans, determined when the loans were acquired, was deemed to be non-accretable. This determination was based on management’s expectation of the future collection of principal and interest on the loans.

TEXTRON INC

Note 7: Accounts Receivable, Finance Receivables and Securitizations

Accounts Receivable


	October 3,			January 3,
(In millions)	2009			2009
Accounts receivable - Commercial	$	500		$	496
Accounts receivable - U.S. Government contracts		451			422

		951			918
Allowance for doubtful accounts		(25	)		(24	)

	$	926		$	894

Finance Receivables

We evaluate finance receivables on a managed as well as owned basis since we retain subordinated interests in finance receivables sold in securitizations resulting in credit risk. In contrast, we do not have a retained financial interest or credit risk in the performance of the serviced portfolio and, therefore, performance of these portfolios is limited to billing and collection activities. Our Finance group manages and services finance receivables for a variety of investors, participants and third-party portfolio owners. A reconciliation of our managed and serviced finance receivables to finance receivables held for investment, net is provided below:


	October 3,			January 3,
(In millions)	2009			2009
Total managed and serviced finance receivables	$	8,999		$	12,173
Less: Nonrecourse participations sold to independent investors		772			820
Less: Third-party portfolio servicing		318			532

Total managed finance receivables		7,909			10,821
Less: Securitized receivables		813			2,248

Owned finance receivables		7,096			8,573
Less: Finance receivables held for sale		998			1,658

Finance receivables held for investment		6,098			6,915
Allowance for loan losses		(302	)		(191	)

Finance receivables held for investment, net	$	5,796		$	6,724

Finance receivables held for investment at October 3, 2009 and January 3, 2009 include approximately $549 million and $1.1 billion, respectively, of finance receivables that have been legally sold to special purpose entities and are consolidated subsidiaries of Textron Financial Corporation. The assets of these special purpose entities are pledged as collateral for $443 million and $853 million of debt at October 3, 2009 and January 3, 2009, respectively, which is reflected as securitized on-balance sheet debt.

In connection with our fourth quarter 2008 plan to exit portions of the commercial finance business, we classified certain finance receivables as held for sale. As a result of our marketing efforts for these finance receivables, we determined that the markets for certain classes of finance receivables were illiquid and inactive during the first half of 2009. We realized that, given market conditions, we were likely to be able to generate more cash flow from the loans’ obligors and/or the underlying collateral than from a buyer of the portfolio. We reached this conclusion based on our evaluation of the obligors’ ability to repay the loans as compared to our evaluation of both the existence of potential buyers for these assets and market prices. Accordingly, since we intended to hold a portion of these finance receivables for the foreseeable future, we reclassified $719 million, net of the valuation allowance, from the held for sale classification to held for investment in the first half of 2009.

As a result of the significant influence of economic and liquidity conditions on our business plans, strategies and liquidity position, and the rapid changes in these and other factors we utilize to determine which assets are classified as held for sale, we currently believe the term “foreseeable future” represents a time period of six to nine months. Unanticipated changes in both internal and external factors affecting our financial performance, liquidity position or the value and/or marketability of our finance receivables could result in a modification of this assessment.

In the third quarter of 2009, we received unanticipated inquiries to purchase receivable portfolios classified as held for investment. Based on the nature of these inquiries, we determined that a sale of these portfolios would be consistent with our goal to maximize the economic value of our portfolio and accelerate cash collections. As a result, $313 million of the net finance receivables reclassified from held for sale to held for investment earlier in 2009 were reclassified as held for sale in the third quarter of 2009 and $108 million of additional finance receivables were also classified as held for sale.

Nonaccrual and Impaired Finance Receivables

We periodically evaluate finance receivables held for investment, excluding homogeneous loan portfolios and finance leases, for impairment. Finance receivables classified as held for sale are reflected at fair value and are excluded from this assessment. A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired finance receivables are classified as either nonaccrual or accrual loans. Nonaccrual finance receivables includes accounts that are contractually delinquent by more than three months for which the accrual of interest income is suspended. Impaired accrual finance receivables represent loans with original terms that have been significantly modified to reflect deferred principal payments, generally at market interest rates, for which collection of principal and interest is not doubtful.

The impaired finance receivables are as follows:


	October 3,		January 3,
(In millions)	2009		2009
Impaired nonaccrual finance receivables	$	781	$	234
Impaired accrual finance receivables		276		19

Total impaired finance receivables	$	1,057	$	253
Less: Impaired finance receivables without identified reserve requirements		378		71

Impaired nonaccrual finance receivables with identified reserve requirements	$	679	$	182

Nonaccrual finance receivables include impaired nonaccrual finance receivables and nonaccrual accounts in homogeneous loan portfolios that are contractually delinquent by more than three months, but are not considered to be impaired. A summary of these finance receivables and the related allowance for losses by collateral type is as follows:


		October 3, 2009						January 3, 2009
						Allowance						Allowance for
						for Losses						Losses on
				Impaired		on Impaired				Impaired		Impaired
		Nonaccrual		Nonaccrual		Nonaccrual		Nonaccrual		Nonaccrual		Nonaccrual
		Finance		Finance		Finance		Finance		Finance		Finance
(In millions)	Collateral Type	Receivables		Receivables		Receivables		Receivables		Receivables		Receivables
Resort	Notes receivable(1)	$	303	$	300	$	42	$	78	$	74	$	9
Finance	Hotels		62		62		7		—		—		—
	Resort construction and inventory		67		67		—		—		—		—
	Land		17		17		4		—		—		—
Distribution Finance	Dealer inventory		89		67		21		43		34		3
Captive Finance	General aviation aircraft		139		123		24		17		6		2
	Golf equipment		16		3		1		18		—		—

Golf Mortgage	Golf course property		96		95		21		107		107		25
Finance	Marinas		8		8		—		—		—		—
Structured Capital	Capital equipment		32		32		27		—		—		—
Other			9		7		—		14		13		4

	Total	$	838	$	781	$	147	$	277	$	234	$	43


(1)		Finance receivables collateralized primarily by timeshare notes receivable may also be collateralized by certain real estate and other assets of our borrowers.

The increase in nonaccrual finance receivables is primarily attributable to the lack of liquidity available to borrowers in resort finance, weaker general economic conditions and weaker aircraft values in captive finance. The increase in resort finance included one $212 million account, which is primarily collateralized by timeshare notes receivable and several resort properties. For structured capital, the increase in nonaccrual finance receivables and the allowance for losses on impaired nonaccrual finance receivables is due to a $32 million lease that is secured by automobile manufacturing equipment. Nonaccrual finance receivables resulted in a $36 million reduction in Finance revenues for the nine months ended October 3, 2009, compared with $10 million in the corresponding period of 2008, as no finance charges were recognized using the cash basis method.

Securitizations

Our Finance group has historically sold its distribution finance receivables to a qualified special purpose trust through securitization transactions. Distribution finance receivables represent loans secured by dealer inventories that typically are collected upon the sale of the underlying product. The distribution finance revolving securitization trust is a master trust that purchases inventory finance receivables from the Finance group and issues asset-backed notes to investors. Through a revolving securitization, the proceeds from collection of the principal balance of these loans can be used by the trust to purchase additional distribution finance receivables from us each month. Proceeds from securitizations include amounts received related to the incremental increase in the issuance of additional asset-backed notes to investors, and exclude amounts received related to the ongoing replenishment of the outstanding sold balance of these short-duration finance receivables. For the nine months ended October 3, 2009, we had no proceeds from securitizations, compared with $250 million in the corresponding period of 2008.

Generally, we retain an interest in the assets sold in the form of servicing responsibilities and subordinated interests, including interest-only securities, seller certificates and cash reserves. We had $103 million and $191 million of retained interests associated with $775 million and $2.2 billion of off-balance sheet finance receivables in the distribution finance securitization trust as of October 3, 2009 and January 3, 2009, respectively. The amortized cost basis of our retained interests is $86 million at October 3, 2009. At October 3, 2009, the trust had $978 million of asset-backed notes outstanding of which $103 million represent our remaining retained interests. In connection with the maturity of the notes, the trust accumulated $203 million of cash during the third quarter of 2009 from collections of finance receivables. This cash, combined with cash accumulated during the first eight days of October, was utilized to repay $240 million of the notes held by third-party investors in October 2009. Due to required amortization and accumulation periods associated with the scheduled maturity of the remaining asset-backed notes, the trust’s revolving period ended in the third quarter of 2009. As of October 8, 2009, due to a change in required cash distributions, the trust will be consolidated by us.

Cash received on retained interests totaled $117 million and $44 million for the nine months ended October 3, 2009 and September 27, 2008, respectively. Servicing fees received totaled $3 million and $18 million for the three and nine months ended October 3, 2009, respectively, compared with $8 million and $25 million for the corresponding periods of 2008.

Total net pre-tax losses, including impairments were $27 million for the nine months ended October 3, 2009. During the second quarter of 2009, we recognized a $31 million other-than-temporary impairment of our retained interests, excluding interest-only securities. Of this amount, $18 million was charged to income primarily due to credit losses, representing a decrease in cash flows expected to be collected on these interests for the distribution finance revolving securitization. The remaining $13 million impairment charge was recognized in other comprehensive income as it is attributable to an increase in market discount rates. For the three and nine months ended September 27, 2008, net pre-tax gains, including impairments totaled $10 million and $40 million, respectively. See Note 12: Fair Values of Assets and Liabilities for disclosure of the fair value estimates for retained interests in securitizations and the impairments recorded on the interest-only securities and other retained interests in 2009.

US BANCORP \DE\

Note 4 Loans

The composition of the loan portfolio was as follows:


	September 30, 2009					December 31, 2008
			Percent					Percent
(Dollars in Millions)	Amount		of Total			Amount		of Total
Commercial
Commercial	$	44,166		24.1	%	$	49,759		26.9	%
Lease financing		6,546		3.6			6,859		3.7

Total commercial		50,712		27.7			56,618		30.6
Commercial real estate
Commercial mortgages		24,649		13.5			23,434		12.6
Construction and development		9,247		5.0			9,779		5.3

Total commercial real estate		33,896		18.5			33,213		17.9
Residential mortgages
Residential mortgages		19,634		10.7			18,232		9.8
Home equity loans, first liens		5,313		2.9			5,348		2.9

Total residential mortgages		24,947		13.6			23,580		12.7
Retail
Credit card		16,402		9.0			13,520		7.3
Retail leasing		4,696		2.6			5,126		2.8
Home equity and second mortgages		19,427		10.6			19,177		10.3
Other retail
Revolving credit		3,428		1.9			3,205		1.7
Installment		5,532		3.0			5,525		3.0
Automobile		9,426		5.1			9,212		5.0
Student		4,731		2.6			4,603		2.5

Total other retail		23,117		12.6			22,545		12.2

Total retail		63,642		34.8			60,368		32.6

Total loans, excluding covered assets		173,197		94.6			173,779		93.8
Covered Assets		9,859		5.4			11,450		6.2

Total loans	$	183,056		100.0	%	$	185,229		100.0	%

Loans are presented net of unearned interest and deferred fees and costs, which amounted to $1.4 billion at September 30, 2009, and $1.5 billion at December 31, 2008.

Covered assets represent assets acquired from the FDIC subject to loss sharing agreements and included expected reimbursements from the FDIC of approximately $1.9 billion at September 30, 2009, and $2.4 billion at December 31, 2008. The carrying amount of the covered assets consisted of loans subject to specialized accounting rules related to purchased impaired loans (“purchased impaired loans”), loans not subject to those rules, and other assets as shown in the following table:


	September 30, 2009								December 31, 2008
	Purchased								Purchased
	impaired		Other		Other				impaired		Other		Other
(Dollars in Millions)	loans		loans		Assets		Total		loans		loans		Assets		Total
Residential mortgage loans	$	4,925	$	1,745	$	–	$	6,670	$	5,763	$	2,022	$	–	$	7,785
Commercial real estate loans		435		436		–		871		427		455		–		882
Commercial loans		–		86		–		86		–		127		–		127
Foreclosed real estate		–		–		310		310		–		–		274		274
Losses reimbursable by the FDIC		–		–		1,922		1,922		–		–		2,382		2,382

Total	$	5,360	$	2,267	$	2,232	$	9,859	$	6,190	$	2,604	$	2,656	$	11,450

At September 30, 2009, $260 million of the purchased impaired loans in covered assets were classified as nonperforming assets, compared with $298 million at December 31, 2008, because the expected cash flows are primarily based on the liquidation of underlying collateral and the timing and amount of the cash flows could not be reasonably estimated. Interest income is recognized on other purchased impaired loans in covered assets through accretion of the difference between the carrying amount of those loans and their expected cash flows. The allowance for credit losses related to purchased impaired loans represents only credit deterioration subsequent to acquisition date because they were recorded at fair value, including expected credit losses, at acquisition. There has not been any significant credit deterioration since that date. The Company also classified approximately $.1 billion of loans not subject to loss sharing agreements as purchased impaired loans.

Changes in the accretable balance for purchased impaired loans were as follows for the three and nine months ended September 30, 2009:


	Three Months			Nine Months
	Ended			Ended
	September 30,			September 30,
(Dollars in Millions)	2009			2009
Balance at beginning of period	$	2,074		$	2,719
Accretion		(82	)		(265	)
Disposals		(3	)		(50	)
Reclassifications (to) from nonaccretable difference, net		94			(139	)
Other, including purchase accounting adjustments		(17	)		(199	)

Balance at end of period	$	2,066		$	2,066

VENTAS INC

NOTE 6—LOANS RECEIVABLE

As of December 31, 2008, we held a receivable for three outstanding first mortgage loans (the “Sunwest Loans”) in the aggregate principal amount of $20.0 million. These loans, made in 2005, originally accrued interest at a non-default annual rate of 9%. During the third quarter of 2008, the borrowers defaulted on certain of their obligations under the Sunwest Loans, including the monthly payment of principal and interest to us. The Sunwest Loans were originally secured by four seniors housing communities containing approximately 300 units and were jointly and severally guaranteed by Sunwest Management, Inc. (“Sunwest”) and two of its principals. Receivers were appointed at, and we initiated foreclosure actions on, each asset securing the Sunwest Loans during 2008. We also commenced a collection and enforcement action against the guarantors. During 2008, we recorded a provision for loan losses on the Sunwest Loans of $6.0 million, which was based on estimated discounted cash flows and other valuation metrics, including the fair value of the collateral.

The foreclosure of two seniors housing communities securing one of the Sunwest Loans is currently stayed by receivership proceedings instituted by the Commission involving Sunwest and the other guarantors. Our collection and enforcement action against the Sunwest guarantors was dismissed without prejudice due to the receivership proceedings, but may be reinstated by us at anytime.

On September 30, 2009, we completed the non-judicial foreclosure of a seniors housing community located in Merced, California related to one of the Sunwest Loans. Immediately upon foreclosure, we sold the property to an affiliate of one of our existing tenants for approximately $6.3 million. In connection with the sale, we provided $5.0 million of first mortgage financing to the purchaser, secured by, among other things, the property, and received cash consideration of $1.2 million after expenses. The loan matures in September 2012, bears interest at a variable rate of 30-day LIBOR plus 6.5% per annum and is guaranteed by our tenant. We did not recognize any gain or loss as a result of this transaction. The net carrying value of the remaining two Sunwest Loans at September 30, 2009 was $8.8 million.

Although we cannot give any assurances regarding the value of our recovery on the collateral for the remaining Sunwest Loans, we currently expect that the estimated fair value of the foreclosed assets, if foreclosure proceedings are successful, will approximate the current net carrying value. If foreclosure proceedings are successful, we may take ownership of the seniors housing communities and engage healthcare operators to operate them under a management or lease arrangement, or we may sell one or more of the properties.

WELLS FARGO & CO/MN

5. LOANS AND ALLOWANCE FOR CREDIT LOSSES

The major categories of loans outstanding showing those subject to accounting guidance for PCI loans are presented in the following table. Certain loans acquired in the Wachovia acquisition are subject to the measurement provisions contained in the Receivables topic of the Codification for PCI loans. These include loans with credit deterioration since origination and for which it is probable that we will not collect all contractual principal and interest. PCI loans are initially recorded at fair value, and no allowance is carried over or initially recorded. Outstanding balances of all other loans are presented net of unearned income, net deferred loan fees, and unamortized discount and premium totaling $14,350 million at September 30, 2009, and $16,891 million, at December 31, 2008.

Sept. 30, 2009

Dec. 31, 2008

All

All

PCI

other

PCI

other

(in millions)

loans

Total

loans

Total

Commercial and commercial real estate:

Commercial

2,407

167,203

169,610

4,580

197,889

202,469

Real estate mortgage

5,950

97,492

103,442

7,762

95,346

103,108

Real estate construction

4,250

27,469

31,719

4,503

30,173

34,676

Lease financing

—

14,115

—

15,829

Total commercial and commercial real estate

12,607

306,279

318,886

16,845

339,237

356,082

Consumer:

Real estate 1-4 family first mortgage

39,538

193,084

232,622

39,214

208,680

247,894

Real estate 1-4 family junior lien mortgage

425

104,113

104,538

728

109,436

110,164

Credit card

—

23,597

—

23,555

Other revolving credit and installment

—

90,027

151

93,102

93,253

Total consumer

39,963

410,821

450,784

40,093

434,773

474,866

Foreign

1,768

28,514

30,282

1,859

32,023

33,882

Total loans

54,338

745,614

799,952

58,797

806,033

864,830

We pledge loans to secure borrowings from the FHLB and the Federal Reserve Bank as part of our liquidity management strategy. Loans pledged where the secured party does not have the right to sell or repledge totaled $322.2 billion at September 30, 2009, and $337.5 billion at December 31, 2008. We did not have any pledged loans where the secured party has the right to sell or repledge at September 30, 2009, or at December 31, 2008.

We consider a loan to be impaired under the loan impairment provisions contained in FASB ASC 310-10 when, based on current information and events, we determine that we will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. We assess and account for as impaired certain nonaccrual commercial, commercial real estate and foreign loans that are over $5 million and certain consumer, commercial, commercial real estate and foreign loans whose terms have been modified in a troubled debt restructuring (TDR). The recorded investment in impaired loans and the methodology used to measure impairment was:



	Sept. 30,		Dec. 31,
(in millions)	2009		2008

Impairment measurement based on:
Collateral value method	$	356		88
Discounted cash flow method (1)		14,129		3,552

Total (2)	$	14,485		3,640


(1)		The September 30, 2009, balance includes $444 million of Government National Mortgage Association (GNMA) loans that are insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs. Although both principal and interest are insured, the insured interest rate may be different than the original contractual interest rate prior to modification, resulting in interest impairment under a discounted cash flow methodology.
(2)		Includes $13,973 million and $3,468 million of impaired loans with a related allowance of $2,754 million and $816 million at September 30, 2009, and December 31, 2008, respectively. The remaining impaired loans do not have a related allowance.

The average recorded investment in impaired loans was $12,234 million in third quarter 2009 and $2,944 million in fourth quarter 2008. In the first nine months of 2009, the average recorded investment was $8,790 million.

The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded credit commitments. Changes in the allowance for credit losses were:


	Quarter ended Sept. 30,						Nine months ended Sept. 30,
(in millions)	2009			2008			2009			2008

Balance, beginning of period	$	23,530			7,517			21,711			5,518
Provision for credit losses		6,111			2,495			15,755			7,535
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(986	)		(305	)		(2,337	)		(897	)
Real estate mortgage		(215	)		(9	)		(398	)		(19	)
Real estate construction		(254	)		(36	)		(595	)		(93	)
Lease financing		(88	)		(19	)		(173	)		(44	)

Total commercial and commercial real estate		(1,543	)		(369	)		(3,503	)		(1,053	)

Consumer:
Real estate 1-4 family first mortgage		(1,015	)		(146	)		(2,229	)		(330	)
Real estate 1-4 family junior lien mortgage		(1,340	)		(669	)		(3,428	)		(1,476	)
Credit card		(691	)		(396	)		(2,025	)		(1,078	)
Other revolving credit and installment		(860	)		(586	)		(2,562	)		(1,617	)

Total consumer		(3,906	)		(1,797	)		(10,244	)		(4,501	)

Foreign		(71	)		(59	)		(181	)		(185	)

Total loan charge-offs		(5,520	)		(2,225	)		(13,928	)		(5,739	)

Loan recoveries:
Commercial and commercial real estate:
Commercial		62			27			153			90
Real estate mortgage		6			1			22			4
Real estate construction		5			—			11			2
Lease financing		6			3			13			9

Total commercial and commercial real estate		79			31			199			105

Consumer:
Real estate 1-4 family first mortgage		49			7			114			20
Real estate 1-4 family junior lien mortgage		49			28			119			63
Credit card		43			35			131			113
Other revolving credit and installment		178			117			580			363

Total consumer		319			187			944			559

Foreign		11			12			30			40

Total loan recoveries		409			230			1,173			704

Net loan charge-offs (1)		(5,111	)		(1,995	)		(12,755	)		(5,035	)

Allowances related to business combinations/other		(2	)		10			(183	)		9

Balance, end of period	$	24,528			8,027			24,528			8,027

Components:
Allowance for loan losses	$	24,028			7,865			24,028			7,865
Reserve for unfunded credit commitments		500			162			500			162

Allowance for credit losses	$	24,528			8,027			24,528			8,027

Net loan charge-offs (annualized) as a percentage of average total loans (1)		2.50	%		1.96			2.05			1.71
Allowance for loan losses as a percentage of total loans (2)		3.00			1.91			3.00			1.91
Allowance for credit losses as a percentage of total loans (2)		3.07			1.95			3.07			1.95


(1)		For PCI loans charge-offs are only recorded to the extent that losses exceed the purchase accounting estimates.

(2)		The allowance for loan losses and the allowance for credit losses include $233 million at September 30, 2009, and none for prior periods related to PCI loans acquired from Wachovia. Loans acquired from Wachovia are included in total loans net of related purchase accounting net write-downs.

Purchased Credit-Impaired Loans

PCI loans had an unpaid principal balance of $87.8 billion at September 30, 2009, and $98.4 billion at December 31, 2008 (refined), and a carrying value, excluding allowance for loan losses, of $54.3 billion and $59.4 billion, respectively. The following table provides details on the PCI loans acquired from Wachovia.



	Dec. 31, 2008
(in millions)	(refined)

Contractually required payments including interest	$	115,161
Nonaccretable difference (1)		(45,231	)

Cash flows expected to be collected (2)		69,930
Accretable yield		(10,492	)

Fair value of loans acquired	$	59,438


(1)		Includes $40.9 billion in principal cash flows not expected to be collected, $2.0 billion of pre-acquisition charge-offs and $2.3 billion of future interest not expected to be collected.
(2)		Represents undiscounted expected principal and interest cash flows.

For PCI loans, the impact of loan modifications is included in the expected cash flows of the quarterly evaluation for subsequent decreases or increases of cash flows. For variable rate loans included in PCI loans, expected future cash flows will be recalculated as the rates adjust over the lives of the loans. At acquisition, the expected future cash flows were based on the variable rates that were in effect at that time. The change in the accretable yield related to PCI loans is presented in the following table.



	Quarter ended			Nine months ended
(in millions)	Sept. 30, 2009			Sept. 30, 2009

Balance, beginning of period (refined)	$	(9,452	)		(10,492	)
Accretion		892			1,952
Increase in expected cash flows (1)		(5,663	)		(5,683	)

Balance, end of period	$	(14,223	)		(14,223	)


(1)		Represents increases in interest cash flows due to the impact of modifications incorporated into the quarterly assessment of expected future cash flows and/or changes in interest rates on variable rate loans and amounts reclassified from nonaccretable difference.

Deterioration in expected cash flows for PCI loans subsequent to the acquisition on December 31, 2008, results in the establishment of an allowance, provided for through a charge to income. Charge-offs and improvements in expected losses will reduce the allowance. Changes in the allowance for loan losses for PCI loans are presented in the following table.



	Commercial,
	CRE and			Other
(in millions)	foreign			consumer		Pick-a-Pay		Total

Balance at December 31, 2008	$	—			—		—		—
Provision for losses due to credit deterioration		580			—		—		580
Charge-offs		(347	)		—		—		(347	)

Balance at September 30, 2009	$	233			—		—		233

In third quarter 2009, we recorded $409 million of provision for credit losses for deterioration in Wachovia’s PCI loan portfolio that occurred subsequent to the December 31, 2008, acquisition. This included net charge-offs of $225 million in third quarter 2009 and an addition of $184 million to the allowance for loan losses for PCI loans at September 30, 2009. This allowance is included in the allowance for loan losses.

YUM BRANDS INC

Note 8A – Supplemental Balance Sheet Information

	9/5/09			12/27/08
Accounts and notes receivable	$	271		$	252
Allowance for doubtful accounts		(30	)		(23	)
Accounts and notes receivable, net	$	241		$	229