Equipment On Operating Leases

12 Months Ended

Dec. 31, 2012

Equipment On Operating Leases

E. EQUIPMENT ON OPERATING LEASES

A summary of equipment on operating leases for Truck, Parts and Other and for the Financial Services segment is as follows:

	TRUCK, PARTS AND OTHER						FINANCIAL SERVICES
At December 31,	2012			2011			2012			2011
Equipment on operating leases	$	1,183.7		$	939.0		$	2,778.2		$	2,373.2
Less allowance for depreciation		(325.8	)		(259.9	)		(747.4	)		(662.5	)
	$	857.9		$	679.1		$	2,030.8		$	1,710.7

Annual minimum lease payments due on Financial Services operating leases beginning January 1, 2013 are $473.6, $337.0, $214.9, $105.7, $35.9 and $4.9 thereafter.

When the equipment is sold subject to an RVG, the full sales price is received from the customer. A liability is established for the residual value obligation with the remainder of the proceeds recorded as deferred lease revenue. These amounts are summarized below:

	TRUCK, PARTS AND OTHER
At December 31,	2012		2011
Residual value guarantees	$	496.3	$	392.0
Deferred lease revenues		407.2		320.0
	$	903.5	$	712.0

The deferred lease revenue is amortized on a straight-line basis over the RVG contract period. At December 31, 2012, the annual amortization of deferred revenues beginning January 1, 2013 is $99.1, $105.9, $99.3, $60.8, $31.8 and $10.3 thereafter. Annual maturities of the RVGs beginning January 1, 2013 are $120.8, $129.2, $121.0, $74.1, $38.7 and $12.5 thereafter.