Equipment On Operating Leases

12 Months Ended

Dec. 31, 2016

Leases, Operating [Abstract]

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,	2016			2015			2016			2015
Equipment on operating leases	$	1,282.3		$	1,282.6		$	3,640.6		$	3,335.5
Less allowance for depreciation		(268.4	)		(290.4	)		(1,016.7	)		(954.7	)
	$	1,013.9		$	992.2		$	2,623.9		$	2,380.8
Annual minimum lease payments due on Financial Services operating leases beginning January 1, 2017 are $587.0, $428.6, $253.6, $125.2, $50.0 and $6.1 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,							2016			2015
Residual value guarantees							$	699.2		$	691.4
Deferred lease revenues								373.4			356.0
							$	1,072.6		$	1,047.4

The deferred lease revenue is amortized on a straight-line basis over the RVG contract period. At December 31, 2016, the annual amortization of deferred revenues beginning January 1, 2017 is $153.2, $111.8, $65.1, $39.6, $3.2 and $.5 thereafter. Annual maturities of the RVGs beginning January 1, 2017 are $259.7, $168.1, $175.8, $51.7, $36.5 and $7.4 thereafter.