Equipment On Operating Leases

12 Months Ended

Dec. 31, 2020

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,		2020			2019			2020			2019
Equipment on operating leases	$	576.8		$	706.3		$	4,493.9		$	4,350.0
Less allowance for depreciation		(154.9	)		(160.8	)		(1,331.1	)		(1,247.4	)
	$	421.9		$	545.5		$	3,162.8		$	3,102.6

Annual minimum lease payments due on Financial Services operating leases beginning January 1, 2021 are $668.2, $451.8, $252.8, $104.3, $35.0 and $5.1 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,		2020		2019
Residual value guarantees	$	358.4	$	439.6
Deferred lease revenues		99.0		147.7
	$	457.4	$	587.3

The deferred lease revenue is amortized on a straight-line basis over the RVG contract period. At December 31, 2020, the annual amortization of deferred revenues beginning January 1, 2021 is $53.6, $24.6, $12.1, $8.5, $.2 and nil thereafter. Annual maturities of the RVGs beginning January 1, 2021 are $179.8, $82.4, $54.2, $15.9, $15.2 and $10.9 thereafter.