Leasing Activities (Tables)

6 Months Ended

Jun. 30, 2012

Cross-Border Energy Lease Investments

	June 30, 2012			December 31, 2011
	(millions of dollars)
Scheduled lease payments to PHI, net of non-recourse debt	$	2,120		$	2,120
Less: Unearned and deferred income		(745	)		(771	)
Investment in finance leases held in trust		1,375			1,349
Less: Deferred income tax liabilities		(816	)		(793	)
Net investment in finance leases held in trust	$	559		$	556

Income Recognized From Cross-Border Energy Lease Investments

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(millions of dollars)
Pre-tax income from PHI’s cross-border energy lease investments (included in “Other Revenue”)	$	13	$	14	$	26	$	28
Income tax expense related to cross-border energy lease investments		3		7		4		10
Net income from PHI’s cross-border energy lease investments	$	10	$	7	$	22	$	18

Net Investment In Leases By The Published Credit Ratings

Lessee Rating (a)	June 30, 2012		December 31, 2011
	(millions of dollars)
Rated Entities
AA/Aa and above	$	752	$	737
A		623		612
Total	$	1,375	$	1,349

(a) Excludes the credit ratings associated with collateral posted by the lessees in these transactions.