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The major factors for the changes in operating lease, rental and other income, depreciation and other expense and lease margin for the year ended December 31, 2011 are outlined in the table below: 

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•  The decrease in operating lease impairments and improved results on trucks returned from leases in 2011 reflect higher used truck prices. 

•  Average operating lease assets increased $214.3 million in 2011, which increased income by $34.3 million and related depreciation on operating leases by $27.8 million, as a result of higher volume of equipment placed in service reflecting higher demand for leased vehicles. 

•  Higher truck transportation demand also resulted in an increase in revenues per asset in 2011. The increase in revenue consisted of higher asset utilization (the proportion of available operating lease units that are being leased) of $4.4 million, higher lease rates of $13.5 million and higher fuel and service revenue of $3.9 million. The 2011 increase in costs per asset of $17.6 million is due to higher vehicle operating expenses, including higher fuel costs and variable costs from higher asset utilization levels. 

The following table summarizes the provision for losses on receivables and net charge-offs: 

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The provision for losses on receivables for 2011 declined $19.6 million compared to 2010 due to generally improving economic conditions which have improved the profitability and cash flow for many of the Company’s customers in the transportation industry, particularly in the U.S. and Canada. 

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