Finance Assets, net (Tables)

12 Months Ended

Dec. 31, 2015

Summary of Net Investments in Finance Leases

A summary of the net investments in finance leases, substantially all of which were leveraged leases, at December 31, 2015 and 2014, before allowance for losses was as follows:



(in millions)	2015			2014
Rents receivable, net	$	923		$	1,241
Unguaranteed residual values	674			827
Unearned income	(316		)	(412		)
Investments in finance leases	1,281			1,656
Deferred income taxes	(928		)	(1,135		)
Net investments in finance leases	$	353		$	521

Schedule of Rents Receivable

Rents receivable in excess of debt service requirements on third-party nonrecourse debt at December 31, 2015 were as follows:



(in millions)
2016	$	42
2017	64
2018	155
2019	192
2020	136
Thereafter	334
Total	$	923

Schedule of Allowance for Losses on Finance Assets

The activity in the allowance for losses on finance assets for the years ended December 31, 2015, 2014 and 2013 was as follows:



(in millions)	2015		2014			2013
Balance at beginning of year	$	42	$	52		$	99
Decrease to allowance	—		(10		)	(47		)
Balance at end of year	$	42	$	42		$	52

Schedule of Credit Quality of Investments in Finance Leases

The credit quality of PMCC’s investments in finance leases as assigned by Standard & Poor’s Ratings Services (“Standard & Poor’s”) and Moody’s Investors Service, Inc. (“Moody’s”) at December 31, 2015 and 2014 was as follows:



(in millions)	2015		2014
Credit Rating by Standard & Poor’s/Moody’s:
“AAA/Aaa” to “A-/A3”	$	212	$	417
“BBB+/Baa1” to “BBB-/Baa3”	702		833
“BB+/Ba1” and Lower	367		406
Total	$	1,281	$	1,656