Finance Assets, Net (Tables)

12 Months Ended

Dec. 31, 2012

For the years ended December 31, 2012 and 2011, the benefit/charge associated with PMCC's leveraged lease transactions was recorded in Altria Group, Inc.'s consolidated statements of earnings as follows:



(in millions)	For the Year Ended December 31, 2012								For the Year Ended December 31, 2011
	Net Revenues		Benefit for Income Taxes			Total			Net Revenues		(Benefit) Provision for Income Taxes			Total
Reduction to cumulative lease earnings	$	7	$	(2	)	$	5		$	490	$	(175	)	$	315
Interest on tax underpayments	—		(73		)	(73		)	—		312			312
Total	$	7	$	(75	)	$	(68	)	$	490	$	137		$	627

Summary Of Net Investments In Finance Leases

A summary of the net investments in finance leases at December 31, 2012 and 2011 before allowance for losses was as follows:



	Leveraged Leases						Direct Finance Leases						Total
(in millions)	2012			2011			2012			2011			2012			2011
Rents receivable, net	$	2,378		$	3,926		$	116		$	162		$	2,494		$	4,088
Unguaranteed residual values	1,068			1,306			87			86			1,155			1,392
Unearned income	(968		)	(1,692		)	(1		)	(2		)	(969		)	(1,694		)
Investments in finance leases	2,478			3,540			202			246			2,680			3,786
Deferred income taxes	(1,654		)	(2,793		)	(89		)	(107		)	(1,743		)	(2,900		)
Net investments in finance leases	$	824		$	747		$	113		$	139		$	937		$	886

Finance Assets, Net (Schedule Of Leveraged And Direct Finance Rents Receivable)

Rents receivable in excess of debt service requirements on third-party nonrecourse debt related to leveraged leases and rents receivable from direct finance leases at December 31, 2012 were as follows:



(in millions)	Leveraged Leases		Direct Finance Leases		Total
2013	$	92	$	45	$	137
2014	136		45		181
2015	275		—		275
2016	99		—		99
2017	151		—		151
Thereafter	1,625		26		1,651
Total	$	2,378	$	116	$	2,494

Schedule Of Allowance For Losses On Finance Assets

The activity in the allowance for losses on finance assets for the years ended December 31, 2012, 2011 and 2010 was as follows:



(in millions)	2012			2011		2010
Balance at beginning of year	$	227		$	202	$	266
(Decrease) increase to allowance	(10		)	25		—
Amounts written-off	(118		)	—		(64		)
Balance at end of year	$	99		$	227	$	202

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 Rating Services ("Standard & Poor's") and Moody’s Investor Service, Inc. ("Moody's") at December 31, 2012 and 2011 was as follows:



(in millions)	2012		2011
Credit Rating by Standard & Poor’s/Moody’s:
“AAA/Aaa” to “A-/A3”	$	961	$	1,570
“BBB+/Baa1” to “BBB-/Baa3”	938		1,080
“BB+/Ba1” and Lower	781		1,136
Total	$	2,680	$	3,786