Operating Lease Equipment

6 Months Ended

Jun. 30, 2021

Operating lease equipment was $715 million and $777 million at June 30, 2021 and December 31, 2020, respectively, net of accumulated depreciation of $298 million and $290 million at June 30, 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 June 30, 2021 and 2020, and $78 million during both the six months ended June 30, 2021 and 2020. Depreciation expense related to operating lease equipment was $31 million during both the three months ended June 30, 2021 and 2020, and $64 million and $63 million during the six months ended June 30, 2021 and 2020, respectively. The Bancorp received payments of $80 million related to operating leases during both the six months ended June 30, 2021 and 2020.

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 an immaterial amount of impairment losses associated with operating lease assets for both the three months ended June 30, 2021 and 2020 and recognized $25 million and $3 million of impairment losses for the six months ended June 30, 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 future lease payments receivable from operating leases for the remainder of 2021 through 2026 and thereafter:


As of June 30, 2021 ($ in millions)	Undiscounted Cash Flows
Remainder of 2021	$	73
2022	129
2023	102
2024	65
2025	42
2026	26
Thereafter	39
Total operating lease payments	$	476