Net Investments in Operating Leases

6 Months Ended

Jun. 30, 2013

Net investment in operating leases consist primarily of lease contracts for vehicles with retail customers, daily rental companies, government entities, and fleet customers with terms of 60 months or less.

Net investment in operating leases were as follows (in millions):



	June 30, 2013			December 31, 2012
Vehicles, at cost, including initial direct costs	$	20,652		$	17,510
Less: Accumulated depreciation	(3,060		)	(2,786		)
Net investment in operating leases before allowance for credit losses (a)	17,592			14,724
Less: Allowance for credit losses	(23		)	(23		)
Net investment in operating leases	$	17,569		$	14,701

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(a)

At June 30, 2013 and December 31, 2012, includes net investment in operating leases of $6.3 billion that have been included in securitization transactions but continue to be reported in our consolidated financial statements. These net investment in operating leases are available only for payment of the debt and other obligations issued or arising in the securitization transactions; they are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt and other obligations issued or arising in securitization transactions. See Note 5 for additional information.

- Definition

The entire disclosure for operating leases of a lessor. This may include a general description of lessor's leasing arrangements for operating leases, including the basis on which contingent rental payments are determined, the existence and terms of renewal or purchase options and escalation clauses, restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions.

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