Net Investment in Operating Leases

9 Months Ended

Sep. 30, 2016

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):



	September 30, 2016			December 31, 2015
Vehicles, at cost (a)	$	32,278		$	29,673
Accumulated depreciation	(5,254		)	(4,545		)
Net investment in operating leases before allowance for credit losses	27,024			25,128
Allowance for credit losses	(63		)	(49		)
Net investment in operating leases	$	26,961		$	25,079

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(a)	Includes interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and other vehicle acquisition costs.

At September 30, 2016 and December 31, 2015, net investment in operating leases before allowance for credit losses includes $10.0 billion and $13.3 billion of net investment in operating leases 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 issued by, and other obligations of, the securitization entities that are parties to those 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 issued by, and other obligations of, the securitization entities that are parties to those securitization transactions (see Note 6 for additional information).