Operating Lease Equipment

9 Months Ended

Sep. 30, 2021

Operating lease equipment was $647 million and $777 million at September 30, 2021 and December 31, 2020, respectively, net of accumulated depreciation of $286 million and $290 million at September 30, 2021 and December 31, 2020, respectively. The Bancorp recorded lease income of $38 million and $39 million relating to lease payments for operating leases in leasing business revenue in the Condensed Consolidated Statements of Income during the three months ended September 30, 2021 and 2020, respectively, and $116 million and $118 million during the nine months ended September 30, 2021 and 2020, respectively. Depreciation expense related to operating lease equipment was $31 million and $32 million during the three months ended September 30, 2021 and 2020, respectively, and $95 million during both the nine months ended September 30, 2021 and 2020. The Bancorp received payments of $118 million and $119 million related to operating leases during the nine months ended September 30, 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 did not recognize any impairment losses associated with operating lease assets during both the three months ended September 30, 2021 and 2020, and recognized $25 million and $3 million of impairment losses during the nine months ended September 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 September 30, 2021 ($ in millions)	Undiscounted Cash Flows
Remainder of 2021	$	36
2022	129
2023	102
2024	66
2025	43
2026	24
Thereafter	26
Total operating lease payments	$	426