Equipment On Operating Leases

12 Months Ended

Dec. 31, 2017

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,		2017			2016			2017			2016
Equipment on operating leases	$	1,615.5		$	1,282.3		$	4,066.3		$	3,640.6
Less allowance for depreciation		(349.8	)		(268.4	)		(1,190.0	)		(1,016.7	)
	$	1,265.7		$	1,013.9		$	2,876.3		$	2,623.9

Annual minimum lease payments due on Financial Services operating leases beginning January 1, 2018 are $628.5, $433.2, $267.1, $138.2, $49.4 and $9.6 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,		2017		2016
Residual value guarantees	$	909.8	$	699.2
Deferred lease revenues		429.2		373.4
	$	1,339.0	$	1,072.6

The deferred lease revenue is amortized on a straight-line basis over the RVG contract period.  At December 31, 2017, the annual amortization of deferred revenues beginning January 1, 2018 is $188.9, $123.8, $69.5, $42.3, $4.5 and $.2 thereafter.  Annual maturities of the RVGs beginning January 1, 2018 are $287.8, $269.9, $209.5, $79.8, $54.2 and $8.6 thereafter.