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Notes to the Financial Statements
108 Ford Motor Company | 2010 Annual Report
NOTE 8. NET INVESTMENT IN OPERATING LEASES (Continued)
Net Investment in Operating Leases
The net investment in operating leases at December 31 was as follows (in millions):
2010
20102010
2010
2009
20092009
2009
Automotive Sector
Automotive SectorAutomotive Sector
Automotive Sector
Vehicles, net of depreciation................................................................................................
................................
$ 1,282 $ 2,208
Financial Services S
Financial Services SFinancial Services S
Financial Services Sector
ectorector
ector
Vehicles and other equipment, at cost (a)(b)................................................................
................................
14,800 21,769
Accumulated depreciation................................................................................................
................................
(4,320) (6,493)
Allowance for credit losses................................................................................................
................................
(87) (214)
Total Financial Services sector ................................................................................................
...............................
10,393 15,062
Total Company ................................................................................................................................
.....................
$ 11,675 $ 17,270
__________
(a) Includes the impact of the 2008 impairment of vehicles subject to operating leases at Ford Credit. See Note 15 for additional details.
(b) Includes Ford Credit's operating lease assets of $6.2 billion and $10.4 billion at December 31, 2010 and 2009, respectively, for which the related
cash flows have been used to secure certain lease securitization transactions. Cash flows associated with the net investment in operating leases
are available only for payment of the debt or other obligations issued or arising in the securitization transactions; they are not available to pay other
obligations or the claims of other creditors.
Automotive Sector
Operating lease depreciation expense (which excludes gains and losses on disposal of assets) was as follows
(in millions):
2010
20102010
2010
2009
20092009
2009
2008
20082008
2008
Operating lease depreciation expense *................................................................
................................
$ 297 $ 475 $ 699
__________
* Operating lease depreciation expense excludes Volvo depreciation for 2010, 2009 and 2008.
Included in Automotive sales are rents on operating leases. The amount contractually due for minimum rentals on
operating leases is $88 million for 2011.
Financial Services Sector
Operating lease depreciation expense (which includes gains and losses on disposal of assets) was as follows
(in millions):
2010
20102010
2010
2009
20092009
2009
2008
20082008
2008
Operating lease depreciation expense................................................................
................................
$ 1,977 $ 3,890 $ 9,048
Included in Financial Services revenues are rents on operating leases. The amounts contractually due for minimum
rentals on operating leases are as follows (in millions):
20
2020
2011
1111
11
2012
20122012
2012
2
22201
0101
013
333
Thereafter
ThereafterThereafter
Thereafter
Total
TotalTotal
Total
Minimum rentals on operating leases................................
................................
$ 1,749 $ 907 $ 507 $ 276 $ 3,439