Operating Lease Equipment

6 Months Ended

Jun. 30, 2022

Operating lease equipment was $600 million and $616 million at June 30, 2022 and December 31, 2021, respectively, net of accumulated depreciation of $328 million and $304 million at June 30, 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 June 30, 2022 and 2021, respectively, and $72 million and $78 million during the six months ended June 30, 2022 and 2021, respectively. Depreciation expense related to operating lease equipment was $30 million and $31 million during the three months ended June 30, 2022 and 2021, respectively, and $59 million and $64 million during the six months ended June 30, 2022 and 2021, respectively. The Bancorp received payments of $72 million and $80 million related to operating leases during the six months ended June 30, 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 an immaterial amount of impairment losses associated with operating lease assets during both the three months ended June 30, 2022 and 2021, and recognized $2 million and $25 million of impairment losses during the six months ended June 30, 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 June 30, 2022 ($ in millions)	Undiscounted Cash Flows
Remainder of 2022	$	69
2023	119
2024	83
2025	57
2026	35
2027	15
Thereafter	19
Total operating lease payments	$	397