Operating Lease Equipment

9 Months Ended

Sep. 30, 2022

Operating lease equipment was $612 million and $616 million at September 30, 2022 and December 31, 2021, respectively, net of accumulated depreciation of $326 million and $304 million at September 30, 2022 and December 31, 2021, respectively. The Bancorp recorded lease income of $36 million and $38 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, 2022 and 2021, respectively, and $108 million and $116 million during the nine months ended September 30, 2022 and 2021, respectively. Depreciation expense related to operating lease equipment was $30 million and $31 million during the three months ended September 30, 2022 and 2021, respectively, and $89 million and $95 million during the nine months ended September 30, 2022 and 2021, respectively. The Bancorp received payments of $109 million and $118 million related to operating leases during the nine months ended September 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 did not recognize any impairment losses associated with operating lease assets during both the three months ended September 30, 2022 and 2021, and recognized $2 million and $25 million of impairment losses during the nine months ended September 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 September 30, 2022 ($ in millions)	Undiscounted Cash Flows
Remainder of 2022	$	36
2023	129
2024	95
2025	68
2026	44
2027	20
Thereafter	20
Total operating lease payments	$	412