Operating Lease Equipment

3 Months Ended

Mar. 31, 2023

Operating lease equipment was $578 million and $627 million at March 31, 2023 and December 31, 2022, respectively, net of accumulated depreciation of $339 million and $338 million at March 31, 2023 and December 31, 2022, respectively. The Bancorp recorded lease income of $37 million and $36 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, 2023 and 2022, respectively. Depreciation expense related to operating lease equipment was $31 million and $29 million during the three months ended March 31, 2023 and 2022, respectively. The Bancorp received payments of $41 million and $36 million related to operating leases during the three months ended March 31, 2023 and 2022, 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 impairment losses during the three months ended March 31, 2023 and recognized $2 million of impairment losses during the three months ended March 31, 2022 associated with operating lease assets. 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 2023 through 2028 and thereafter:


As of March 31, 2023 ($ in millions)	Undiscounted Cash Flows
Remainder of 2023	$	100
2024	105
2025	79
2026	51
2027	25
2028	10
Thereafter	15
Total operating lease payments	$	385