Commercial Commitments

We have entered into various commercial commitments, such as guarantees and standby letters of credit, related to certain transactions. These commercial commitments require us to fulfill specified obligations in the event of third-party demands. Similar to our balance sheet investments, these commitments expose us to credit, market, and equipment risk. Accordingly, we evaluate our commitments and other contingent obligations using techniques similar to those we use to evaluate funded transactions.

The following table shows our commercial commitments (in millions):



	March 31, 2013		December 31 2012
Affiliate guarantees (a)	$	42.0	$	42.0
Asset residual value guarantees	5.1		11.2
Lease payment guarantees	39.3		41.0
Performance bonds	0.5		0.6
Standby letters of credit	9.8		9.7
Total commercial commitments (b)	$	96.7	$	104.5

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(a)	Excludes one of our guarantees because it does not state a maximum potential future payment and because we believe the likelihood we will be required to perform under that guarantee is remote. In April 2013, $42.0 million of our affiliate guarantees were terminated when the related affiliates were sold. See "Note 13. Subsequent Events" for additional information.


(b)	The carrying values of liabilities on the balance sheet for our commercial commitments were $6.2 million at March 31, 2013 and $6.4 million at December 31, 2012. The expiration dates for our commitments range from 2013–2022. We are not aware of any event that would require us to satisfy any of our commitments.

Affiliate guarantees are our commitments to repay the financing an affiliate used to acquire assets and we make these guarantees in lieu of direct equity investments in the affiliates. We are not aware of any events that would require us to satisfy our affiliate guarantees and we expect our affiliates' cash flows will be sufficient to meet their financing obligations.

Asset residual value guarantees are our commitments to third parties that an asset or asset group will be worth a specified amount at the end of a lease term. We earn a fee for providing these guarantees, which we amortize into income over the guarantee period. If the assets are disposed of for more than the amount we guaranteed, we receive a share of the proceeds in excess of the guaranteed amount.

Lease payment guarantees are our commitments to financial institutions to make lease payments for a third-party in the event of their default. Any liability that results from these guarantees may be reduced by the value of the underlying asset or asset group.

We are also a party to standby letters of credit and performance bonds, which primarily relate to workers’ compensation and general liability insurance coverages. No material claims have been made against these obligations, and no material losses are anticipated.