Operating Lease Equipment

12 Months Ended

Dec. 31, 2021

Operating lease equipment was $616 million and $777 million at December 31, 2021 and 2020, respectively, net of accumulated depreciation of $304 million and $290 million at December 31, 2021 and 2020, respectively. The Bancorp recorded lease income of $152 million, $156 million and $151 million relating to lease payments for operating leases in leasing business revenue in the Consolidated Statements of Income for the years ended December 31, 2021, 2020 and 2019, respectively. Depreciation expense related to operating lease equipment was $124 million, $126 million and $122 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Bancorp received payments of $155 million and $161 million related to operating leases during the years ended December 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, $7 million and $3 million of impairment losses associated with operating lease assets for the years ended December 31, 2021, 2020 and 2019, respectively. The recognized impairment losses were recorded in leasing business revenue in the Consolidated Statements of Income.

The following table presents future lease payments receivable from operating leases for 2022 through 2026 and thereafter:


As of December 31, 2021 ($ in millions)	Undiscounted Cash Flows
2022	$	138
2023	114
2024	76
2025	48
2026	26
Thereafter	27
Total operating lease payments	$	429