NET INVESTMENT IN OPERATING LEASES

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

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



	December 31, 2017			September 30, 2018
Vehicles, at cost (a)	$	32,659		$	33,703
Accumulated depreciation	(5,927		)	(6,056		)
Net investment in operating leases before allowance for credit losses	26,732			27,647
Allowance for credit losses	(71		)	(77		)
Net investment in operating leases	$	26,661		$	27,570

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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 December 31, 2017 and September 30, 2018, net investment in operating leases before allowance for credit losses includes $11.5 billion and $12.4 billion, respectively, 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 investments 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 7 for additional information).