page 99 Bombardier Inc. Annual Report 2003-04 4 F INANCE RECEIVABLES BC’s finance receivables were as follows as at January 31: Product description The inventory finance portfolio represents mainly floorplan receivables from retailers of recreational products. These receivables are generally collateralized by the related inventory and are secured by repurchase agreements with distributors or manufacturers. In the event of default, BC may repossess the products from a retailer within a specified time period and may require the distributors or manufacturers to repurchase them. Effective June 1, 2002, certain modifications were made to the securitization agreements related to the floorplan receivable portfolios. As a result, the Corporation regained control for accounting purposes, of these portfolios and, accordingly, an amount of $2.0 billion of securitized receivables and the related short-term borrowings and long-term debt were recognized on-balance sheet as of that date. No gains or losses resulted from these transactions. Receivable financing with BRP consists of trade receivables originated from BRP. BC funds receivables subject to certain eligibility criteria for BRP’s U.S. and European subsidiaries. Funding occurs in U.S. dollars and currency risk is retained by BRP (see note 9).  The commercial aircraft portfolio includes loans and lease receivables related to interim and long-term financing of commercial aircraft. The loans and lease receivables are generally collateralized by the related assets. a) Continued portfolios (1) Includes $1,582 million securitized to third parties as at January 31, 2004 ($2,089 million as at January 31, 2003). (2) Comprised of $669 million of loans, $2,558 million of receivables and $116 million of lease receivables as at January 31, 2004 ($771 million, $2,953 million and $151 million respectively, as at January 31, 2003). (3) In addition, manufactured housing portfolios in public securitization vehicles amounting to $1,559 million as at January 31, 2004 ($2,096 million as at January 31, 2003) were serviced by BC. (4) Includes the technology management and finance, mid-market equipment commercial finance and small ticket finance portfolios.  (5) Comprised of $690 million of loans and $191 million of lease receivables as at January 31, 2004 ($1,852 million of loans, $1,039 million of receivables and $398 million of lease receivables as at January 31, 2003). 2004 2003 WEIGHTED WEIGHTED WEIGHTED WEIGHTED AVERAGE AVERAGE AVERAGE AVERAGE MATURITY RATE MATURITY RATE TOTAL (MONTHS) (%) TOTAL (MONTHS) (%) Continued portfolios Inventory finance (1) $2,474 5 8.7 $2,953 5 8.8 Receivable financing with BRP 84 2 5.2 – – – 2,558 2,953 Commercial aircraft Interim financing 685 7 4.6 786 6 4.5 Long-term leasing 100 68 5.7 136 73 5.6 785 922 Total (2) 3,343 3,875 Allowance for credit losses (38) (44) Total continued portfolios  3,305 3,831 Wind-down portfolios Manufactured housing (3) 310 245 11.6 434 258 11.6 Business aircraft 265 63 6.7 1,221 55 6.2 Consumer finance 195 88 11.0 342 89 11.4 Industrial equipment 42 37 8.8 59 42 8.8 Receivable factoring – – – 1,039 3 4.3 Other (4) 69 15 8.5 194 21 9.0 Total (5) 881 3,289 Allowance for credit losses (38) (107) Total wind-down portfolios  843 3,182 $4,148 $7,013