Operating Lease Equipment

6 Months Ended

Jun. 30, 2023

Operating lease equipment was $537 million and $627 million at June 30, 2023 and December 31, 2022, respectively, net of accumulated depreciation of $357 million and $338 million at June 30, 2023 and December 31, 2022, respectively. The Bancorp recorded lease income of $35 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 June 30, 2023 and 2022, respectively, and $72 million during both the six months ended June 30, 2023 and 2022. Depreciation expense related to operating lease equipment was $29 million and $30 million during the three months ended June 30, 2023 and 2022, respectively, and $60 million and $59 million during the six months ended June 30, 2023 and 2022, respectively. The Bancorp received payments of $77 million and $72 million related to operating leases during the six months ended June 30, 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 recognized an immaterial amount of impairment losses during both the three months ended June 30, 2023 and 2022, and recognized an immaterial amount and $2 million of impairment losses during the six months ended June 30, 2023 and 2022, respectively, 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 June 30, 2023 ($ in millions)	Undiscounted Cash Flows
Remainder of 2023	$	65
2024	103
2025	78
2026	50
2027	25
2028	10
Thereafter	15
Total operating lease payments	$	346