Leasing Activities (Tables)

9 Months Ended

Sep. 30, 2012

Cross-Border Energy Lease Investments

	September 30, 2012			December 31, 2011
	(millions of dollars)
Scheduled lease payments to PHI, net of non-recourse debt	$	1,852		$	2,120
Less: Unearned and deferred income		(626	)		(771	)
Investment in finance leases held in trust		1,226			1,349
Less: Deferred income tax liabilities		(738	)		(793	)
Net investment in finance leases held in trust	$	488		$	556

Income Recognized From Cross-Border Energy Lease Investments

	Three Months  Ended September 30,					Nine Months  Ended September 30,
	2012		2011			2012		2011
	(millions of dollars)
Pre-tax income from PHI’s cross-border energy lease investments (included in Other Revenue)	$	13	$	7		$	39	$	35
Income tax expense (benefit) related to cross-border energy lease investments		3		(3	)		7		7
Net income from PHI’s cross-border energy lease investments	$	10	$	10		$	32	$	28

Net Investment In Leases By Published Credit Ratings

Lessee Rating (a)	September 30, 2012		December 31, 2011
	(millions of dollars)
Rated Entities
AA/Aa and above	$	759	$	737
A		467		612
Total	$	1,226	$	1,349

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