Equipment On Operating Leases

12 Months Ended

Dec. 31, 2019

Lessor Disclosure [Abstract]

Equipment On Operating Leases

F. EQUIPMENT ON OPERATING LEASES

A summary of equipment on operating leases for Truck, Parts and Other and for the Financial Services segment is presented below.

	TRUCK, PARTS AND OTHER						FINANCIAL SERVICES
At December 31,		2019			2018			2019			2018
Equipment on operating leases	$	706.3		$	948.1		$	4,350.0		$	4,098.3
Less allowance for depreciation		(160.8	)		(161.5	)		(1,247.4	)		(1,243.3	)
	$	545.5		$	786.6		$	3,102.6		$	2,855.0

Annual minimum lease payments due on Financial Services operating leases beginning January 1, 2020 are $646.8, $472.9, $281.1, $126.5, $40.8 and $6.9 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,		2019		2018
Residual value guarantees	$	439.6	$	591.1
Deferred lease revenues		147.7		251.3
	$	587.3	$	842.4

The deferred lease revenue is amortized on a straight-line basis over the RVG contract period. At December 31, 2019, the annual amortization of deferred revenues beginning January 1, 2020 is $78.6, $41.7, $17.6, $8.9, $.8 and $.1 thereafter. Annual maturities of the RVGs beginning January 1, 2020 are $187.3, $150.8, $55.9, $31.2, $8.3 and $6.1 thereafter.