Operating Lease Equipment

3 Months Ended

Mar. 31, 2021

Operating lease equipment was $718 million and $777 million at March 31, 2021 and December 31, 2020, respectively, net of accumulated depreciation of $288 million and $290 million at March 31, 2021 and December 31, 2020, respectively. The Bancorp recorded lease income of $39 million relating to lease payments for operating leases in leasing business revenue in the Condensed Consolidated Statements of Income during both the three months ended March 31, 2021 and 2020. Depreciation expense related to operating lease equipment was $32 million and $31 million during the three months ended March 31, 2021 and 2020, respectively. The Bancorp received payments of $39 million and $41 million related to operating leases during the three months ended March 31, 2021 and 2020, respectively.

The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. As a result of these recoverability assessments, the Bancorp recognized $25 million and $3 million of impairment losses associated with operating lease assets for the three months ended March 31, 2021 and 2020, respectively. The recognized impairment losses were recorded in leasing business revenue in the Condensed Consolidated Statements of Income.

The following table presents undiscounted future lease payments for operating leases for the remainder of 2021 through 2026 and thereafter:


As of March 31, 2021 ($ in millions)	Undiscounted Cash Flows
Remainder of 2021	$	108
2022	124
2023	96
2024	59
2025	37
2026	22
Thereafter	31
Total operating lease payments	$	477