Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

LEASES

LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At June 30, 2022, we had 413 branches, of which 273 are owned and 140 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2022 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. We present ROU assets for operating leases and finance leases on the consolidated balance sheet in “Other assets,” and “Premises, equipment and software, net,” respectively. The corresponding liabilities for those leases are presented in “Other liabilities,” and “Long-term debt.” For more information about our lease policies, see Note 8 of our 2021 Form 10-K.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

(Dollar amounts in millions)	June 30, 2022			December 31, 2021
Operating leases
ROU assets, net of amortization	$	183		$	195
Lease liabilities	209			222
Financing leases
ROU assets, net of amortization	4			4
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.5			8.5
Finance leases	17.8			18.3
Weighted average discount rate
Operating leases	2.8		%	2.8		%
Finance leases	3.1		%	3.1		%

Additional information related to lease expense is presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2022		2021		2022		2021
Lease expense:
Operating lease expense	$	12	$	12	$	24	$	24
Other expenses associated with operating leases 1	12		12		24		25
Total lease expense	$	24	$	24	$	48	$	49
Related cash disbursements from operating leases	$	12	$	12	$	25	$	25

1 Other expenses primarily relate to property taxes and building and property maintenance.

ROU assets related to new leases totaled $1 million at both June 30, 2022 and December 31, 2021.

Total contractual undiscounted lease payments for operating lease liabilities are summarized in the following schedule by expected due date:

(In millions)	Total undiscounted lease payments
2022 1	$	24
2023	46
2024	37
2025	27
2026	22
Thereafter	86
Total	$	242

1 Contractual maturities for the six months remaining in 2022.

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income was $3 million for both the second quarter of 2022 and 2021, and $7 million for both the first six months of 2022 and 2021.

We originated equipment leases, considered to be sales-type leases or direct financing leases, totaling $339 million and $327 million at June 30, 2022 and December 31, 2021, respectively. We recorded income of $3 million on these leases for both the second quarter of 2022 and 2021, and $6 million for both the first six months of 2022 and 2021.

LEASES

LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At June 30, 2022, we had 413 branches, of which 273 are owned and 140 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2022 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. We present ROU assets for operating leases and finance leases on the consolidated balance sheet in “Other assets,” and “Premises, equipment and software, net,” respectively. The corresponding liabilities for those leases are presented in “Other liabilities,” and “Long-term debt.” For more information about our lease policies, see Note 8 of our 2021 Form 10-K.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

(Dollar amounts in millions)	June 30, 2022			December 31, 2021
Operating leases
ROU assets, net of amortization	$	183		$	195
Lease liabilities	209			222
Financing leases
ROU assets, net of amortization	4			4
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.5			8.5
Finance leases	17.8			18.3
Weighted average discount rate
Operating leases	2.8		%	2.8		%
Finance leases	3.1		%	3.1		%

Additional information related to lease expense is presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2022		2021		2022		2021
Lease expense:
Operating lease expense	$	12	$	12	$	24	$	24
Other expenses associated with operating leases 1	12		12		24		25
Total lease expense	$	24	$	24	$	48	$	49
Related cash disbursements from operating leases	$	12	$	12	$	25	$	25

1 Other expenses primarily relate to property taxes and building and property maintenance.

ROU assets related to new leases totaled $1 million at both June 30, 2022 and December 31, 2021.

Total contractual undiscounted lease payments for operating lease liabilities are summarized in the following schedule by expected due date:

(In millions)	Total undiscounted lease payments
2022 1	$	24
2023	46
2024	37
2025	27
2026	22
Thereafter	86
Total	$	242

1 Contractual maturities for the six months remaining in 2022.

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income was $3 million for both the second quarter of 2022 and 2021, and $7 million for both the first six months of 2022 and 2021.

We originated equipment leases, considered to be sales-type leases or direct financing leases, totaling $339 million and $327 million at June 30, 2022 and December 31, 2021, respectively. We recorded income of $3 million on these leases for both the second quarter of 2022 and 2021, and $6 million for both the first six months of 2022 and 2021.

LEASES

. LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At June 30, 2022, we had 413 branches, of which 273 are owned and 140 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2022 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. We present ROU assets for operating leases and finance leases on the consolidated balance sheet in “Other assets,” and “Premises, equipment and software, net,” respectively. The corresponding liabilities for those leases are presented in “Other liabilities,” and “Long-term debt.” For more information about our lease policies, see Note 8 of our 2021 Form 10-K.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

(Dollar amounts in millions)	June 30, 2022			December 31, 2021
Operating leases
ROU assets, net of amortization	$	183		$	195
Lease liabilities	209			222
Financing leases
ROU assets, net of amortization	4			4
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.5			8.5
Finance leases	17.8			18.3
Weighted average discount rate
Operating leases	2.8		%	2.8		%
Finance leases	3.1		%	3.1		%

Additional information related to lease expense is presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2022		2021		2022		2021
Lease expense:
Operating lease expense	$	12	$	12	$	24	$	24
Other expenses associated with operating leases 1	12		12		24		25
Total lease expense	$	24	$	24	$	48	$	49
Related cash disbursements from operating leases	$	12	$	12	$	25	$	25

1 Other expenses primarily relate to property taxes and building and property maintenance.

ROU assets related to new leases totaled $1 million at both June 30, 2022 and December 31, 2021.

Total contractual undiscounted lease payments for operating lease liabilities are summarized in the following schedule by expected due date:

(In millions)	Total undiscounted lease payments
2022 1	$	24
2023	46
2024	37
2025	27
2026	22
Thereafter	86
Total	$	242

1 Contractual maturities for the six months remaining in 2022.

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income was $3 million for both the second quarter of 2022 and 2021, and $7 million for both the first six months of 2022 and 2021.

We originated equipment leases, considered to be sales-type leases or direct financing leases, totaling $339 million and $327 million at June 30, 2022 and December 31, 2021, respectively. We recorded income of $3 million on these leases for both the second quarter of 2022 and 2021, and $6 million for both the first six months of 2022 and 2021.

LEASES

. LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At June 30, 2022, we had 413 branches, of which 273 are owned and 140 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2022 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. We present ROU assets for operating leases and finance leases on the consolidated balance sheet in “Other assets,” and “Premises, equipment and software, net,” respectively. The corresponding liabilities for those leases are presented in “Other liabilities,” and “Long-term debt.” For more information about our lease policies, see Note 8 of our 2021 Form 10-K.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

(Dollar amounts in millions)	June 30, 2022			December 31, 2021
Operating leases
ROU assets, net of amortization	$	183		$	195
Lease liabilities	209			222
Financing leases
ROU assets, net of amortization	4			4
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.5			8.5
Finance leases	17.8			18.3
Weighted average discount rate
Operating leases	2.8		%	2.8		%
Finance leases	3.1		%	3.1		%

Additional information related to lease expense is presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2022		2021		2022		2021
Lease expense:
Operating lease expense	$	12	$	12	$	24	$	24
Other expenses associated with operating leases 1	12		12		24		25
Total lease expense	$	24	$	24	$	48	$	49
Related cash disbursements from operating leases	$	12	$	12	$	25	$	25

1 Other expenses primarily relate to property taxes and building and property maintenance.

ROU assets related to new leases totaled $1 million at both June 30, 2022 and December 31, 2021.

Total contractual undiscounted lease payments for operating lease liabilities are summarized in the following schedule by expected due date:

(In millions)	Total undiscounted lease payments
2022 1	$	24
2023	46
2024	37
2025	27
2026	22
Thereafter	86
Total	$	242

1 Contractual maturities for the six months remaining in 2022.

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income was $3 million for both the second quarter of 2022 and 2021, and $7 million for both the first six months of 2022 and 2021.

We originated equipment leases, considered to be sales-type leases or direct financing leases, totaling $339 million and $327 million at June 30, 2022 and December 31, 2021, respectively. We recorded income of $3 million on these leases for both the second quarter of 2022 and 2021, and $6 million for both the first six months of 2022 and 2021.

LEASES

. LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At June 30, 2022, we had 413 branches, of which 273 are owned and 140 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2022 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. We present ROU assets for operating leases and finance leases on the consolidated balance sheet in “Other assets,” and “Premises, equipment and software, net,” respectively. The corresponding liabilities for those leases are presented in “Other liabilities,” and “Long-term debt.” For more information about our lease policies, see Note 8 of our 2021 Form 10-K.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

(Dollar amounts in millions)	June 30, 2022			December 31, 2021
Operating leases
ROU assets, net of amortization	$	183		$	195
Lease liabilities	209			222
Financing leases
ROU assets, net of amortization	4			4
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.5			8.5
Finance leases	17.8			18.3
Weighted average discount rate
Operating leases	2.8		%	2.8		%
Finance leases	3.1		%	3.1		%

Additional information related to lease expense is presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2022		2021		2022		2021
Lease expense:
Operating lease expense	$	12	$	12	$	24	$	24
Other expenses associated with operating leases 1	12		12		24		25
Total lease expense	$	24	$	24	$	48	$	49
Related cash disbursements from operating leases	$	12	$	12	$	25	$	25

1 Other expenses primarily relate to property taxes and building and property maintenance.

ROU assets related to new leases totaled $1 million at both June 30, 2022 and December 31, 2021.

Total contractual undiscounted lease payments for operating lease liabilities are summarized in the following schedule by expected due date:

(In millions)	Total undiscounted lease payments
2022 1	$	24
2023	46
2024	37
2025	27
2026	22
Thereafter	86
Total	$	242

1 Contractual maturities for the six months remaining in 2022.

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income was $3 million for both the second quarter of 2022 and 2021, and $7 million for both the first six months of 2022 and 2021.

We originated equipment leases, considered to be sales-type leases or direct financing leases, totaling $339 million and $327 million at June 30, 2022 and December 31, 2021, respectively. We recorded income of $3 million on these leases for both the second quarter of 2022 and 2021, and $6 million for both the first six months of 2022 and 2021.