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EQUIPMENT ON OPERATING LEASES
 12 Months Ended
Oct. 28, 2018
EQUIPMENT ON OPERATING LEASES  
EQUIPMENT ON OPERATING LEASES

14. EQUIPMENT ON OPERATING LEASES

Operating leases arise primarily from the leasing of John Deere equipment to retail customers. Initial lease terms generally range from 12 to 60 months. Net equipment on operating leases at October 28, 2018 and October 29, 2017 consisted of the following in millions of dollars:

 

 

 

 

 

 

 

 

 

 

 

    

2018

    

2017

 

Equipment on operating leases:

 

 

 

 

 

 

 

Agriculture and turf

 

$

5,682

 

$

5,385

 

Construction and forestry

 

 

1,483

 

 

1,209

 

Equipment on operating leases–net

 

$

7,165

 

$

6,594

 

 

The equipment is depreciated on a straight-line basis over the term of the lease. The accumulated depreciation on this equipment was $1,515 million and $1,315 million at October 28, 2018 and October 29, 2017, respectively. The corresponding depreciation expense was $928 million in 2018, $853 million in 2017, and $742 million in 2016.

Future payments to be received on operating leases totaled $2,309 million at October 28, 2018 and are scheduled in millions of dollars as follows: 2019 - $980,  2020 - $688, 2021 - $400, 2022 - $198, and 2023 - $43. At October 28, 2018 and October 29, 2017, the company’s financial services operations had $34 million and $52 million, respectively, of deposits withheld from dealers available for potential losses on residual values.