Operating Lease Equipment

3 Months Ended

Mar. 31, 2022

Operating lease equipment was $622 million and $616 million at March 31, 2022 and December 31, 2021, respectively, net of accumulated depreciation of $312 million and $304 million at March 31, 2022 and December 31, 2021, respectively. The Bancorp recorded lease income of $36 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 March 31, 2022 and 2021, respectively. Depreciation expense related to operating lease equipment was $29 million and $32 million during the three months ended March 31, 2022 and 2021, respectively. The Bancorp received payments of $36 million and $39 million related to operating leases during the three months ended March 31, 2022 and 2021, 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 $2 million and $25 million of impairment losses associated with operating lease assets during the three months ended March 31, 2022 and 2021, 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 2022 through 2027 and thereafter:


As of March 31, 2022 ($ in millions)	Undiscounted Cash Flows
Remainder of 2022	$	102
2023	114
2024	79
2025	53
2026	32
2027	15
Thereafter	18
Total operating lease payments	$	413