PACCAR INC | 2013 | FY | 3


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,

   2013     2012     2013     2012  

Equipment on operating leases

   $ 1,357.8      $ 1,183.7      $ 3,212.2      $ 2,778.2   

Less allowance for depreciation

     (319.5     (325.8     (922.1     (747.4
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1,038.3      $ 857.9      $ 2,290.1      $ 2,030.8   
  

 

 

   

 

 

   

 

 

   

 

 

 

Annual minimum lease payments due on Financial Services operating leases beginning January 1, 2014 are $530.3, $373.4, $245.0, $127.2, $41.9 and $6.6 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,

   2013      2012  

Residual value guarantees

   $ 653.9       $ 496.3   

Deferred lease revenues

     439.9         407.2   
  

 

 

    

 

 

 
   $ 1,093.8       $ 903.5   
  

 

 

    

 

 

 

The deferred lease revenue is amortized on a straight-line basis over the RVG contract period. At December 31, 2013, the annual amortization of deferred revenues beginning January 1, 2014 is $175.3, $127.5, $82.7, $47.8, $6.5 and $.1 thereafter. Annual maturities of the RVGs beginning January 1, 2014 are $180.0, $149.2, $144.0, $120.4, $45.6 and $14.7 thereafter.


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