5. Securitization of Receivables

We sold financing receivables in securitization transactions, recognizing gains of $2.0 million for the three months ended March 31, 2014. We did not securitize any transactions during three months ended March 31, 2013. In connection with securitization transactions, we retained servicing responsibilities and residual assets. In certain instances, we receive annual servicing fees ranging from 0.05% to 0.20% of the outstanding balance. The investors and the securitization trusts have no recourse to our other assets for failure of debtors to pay when due. Our residual assets are subordinate to investors’ interests, and their values are subject to credit, prepayment and interest rate risks on the transferred financial assets.

The fair values of retained assets, including the discount rates used in valuing those assets and the sensitivity to an increase in the discount rates of 5% and 10%, as of March 31, 2014 and December 31, 2013, were as follows:

In computing gains and losses on securitizations, the discount rates were consistent with the discount rates presented in the above table. Based on the nature of the receivables and experience-to-date, we do not currently expect to incur any credit losses on the receivables sold.

The following is an analysis of certain cash flows between us and the securitization trusts:

As of March 31, 2014 and December 31, 2013, our managed receivables totaled $2.1 billion, of which $1.6 billion were securitized. There were no securitization credit losses in the three months ended March 31, 2014 or 2013, and no material securitization delinquencies as of March 31, 2014 and December 31, 2013.