Lease Obligations - Lessee (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Lease Assets and Lease Liabilities

The following table provides a summary of lease assets and lease liabilities as of:

($ in millions)	Condensed Consolidated Balance Sheets Caption	March 31, 2023		December 31, 2022
Assets
Operating lease right-of-use assets	Other assets	$	491	508
Finance lease right-of-use assets	Bank premises and equipment	145		150
Total right-of-use assets(a)		$	636	658
Liabilities
Operating lease liabilities	Accrued taxes, interest and expenses	$	582	599
Finance lease liabilities	Long-term debt	152		156
Total lease liabilities		$	734	755

(a)    Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $271 and $71, respectively, as of March 31, 2023, and $255 and $66, respectively, as of December 31, 2022.

Components of Lease Costs, Weighted-Average Lease Term and Discount Rate

The following table presents the components of lease costs:

($ in millions)	Condensed Consolidated Statements of Income Caption	For the three months ended March 31,
		2023		2022
Lease costs:
Amortization of ROU assets	Net occupancy and equipment expense	$	5	5
Interest on lease liabilities	Interest on long-term debt	1		1
Total finance lease costs		$	6	6
Operating lease cost	Net occupancy expense	$	22	20
Short-term lease cost	Net occupancy expense	1		—
Variable lease cost	Net occupancy expense	7		7
Sublease income	Net occupancy expense	(1)		(1)
Total operating lease costs		$	29	26
Total lease costs		$	35	32

The following table presents the weighted-average remaining lease term and weighted-average discount rate as of:

	March 31, 2023		December 31, 2022
Weighted-average remaining lease term (years):
Operating leases	10.70		10.80
Finance leases	15.31		15.31
Weighted-average discount rate:
Operating leases	3.43	%	3.35
Finance leases	2.97		2.94

The following table presents information related to lease transactions for the three months ended March 31:

($ in millions)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:(a)
Operating cash flows from operating leases	$	23	22
Operating cash flows from finance leases	1		1
Financing cash flows from finance leases	4		4
Gains on sale-leaseback transactions	1		—

(a)    The cash flows related to the short-term and variable lease payments are not included in the amounts in the table as they were not included in the measurement of lease liabilities.

Undiscounted Cash Flows for Operating Leases

The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2023 through 2028 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities:

As of March 31, 2023 ($ in millions)	Operating Leases		Finance Leases	Total
Remainder of 2023	$	67	15	82
2024	86		21	107
2025	78		14	92
2026	69		9	78
2027	62		8	70
2028	53		9	62
Thereafter	298		120	418
Total undiscounted cash flows	$	713	196	909
Less: Difference between undiscounted cash flows and discounted cash flows	131		44	175
Present value of lease liabilities	$	582	152	734

Undiscounted Cash Flows for Finance Leases

The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2023 through 2028 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities:

As of March 31, 2023 ($ in millions)	Operating Leases		Finance Leases	Total
Remainder of 2023	$	67	15	82
2024	86		21	107
2025	78		14	92
2026	69		9	78
2027	62		8	70
2028	53		9	62
Thereafter	298		120	418
Total undiscounted cash flows	$	713	196	909
Less: Difference between undiscounted cash flows and discounted cash flows	131		44	175
Present value of lease liabilities	$	582	152	734