Lease Obligations - Lessee (Tables)

9 Months Ended

Sep. 30, 2023

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


($ in millions)	Condensed Consolidated Balance Sheets Caption	September 30, 2023		December 31, 2022
Assets
Operating lease right-of-use assets	Other assets	$	513	508
Finance lease right-of-use assets	Bank premises and equipment	130		150
Total right-of-use assets(a)		$	643	658
Liabilities
Operating lease liabilities	Accrued taxes, interest and expenses	$	604	599
Finance lease liabilities	Long-term debt	138		156
Total lease liabilities		$	742	755

(a) Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $279 and $72, respectively, as of September 30, 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 September 30,			For the nine months ended September 30,
		2023		2022	2023	2022
Lease costs:
Amortization of ROU assets	Net occupancy and equipment expense	$	5	5	15	14
Interest on lease liabilities	Interest on long-term debt	1		1	3	4
Total finance lease costs		$	6	6	18	18
Operating lease cost	Net occupancy expense	$	22	21	65	62
Short-term lease cost	Net occupancy expense	1		—	2	1
Variable lease cost	Net occupancy expense	7		8	22	21
Sublease income	Net occupancy expense	(1)		(1)	(2)	(2)
Total operating lease costs		$	29	28	87	82
Total lease costs		$	35	34	105	100

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


	September 30, 2023		December 31, 2022
Weighted-average remaining lease term (years):
Operating leases	11.00		10.80
Finance leases	15.17		15.31
Weighted-average discount rate:
Operating leases	3.66	%	3.35
Finance leases	2.98		2.94

The following table presents information related to lease transactions for the nine months ended September 30:


($ in millions)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:(a)
Operating cash flows from operating leases	$	68	67
Operating cash flows from finance leases	3		4
Financing cash flows from finance leases	12		13

Gains on sale-leaseback transactions	1		4

(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 September 30, 2023 ($ in millions)	Operating Leases		Finance Leases	Total
Remainder of 2023	$	23	5	28
2024	92		20	112
2025	84		14	98
2026	76		9	85
2027	68		8	76
2028	59		8	67
Thereafter	352		113	465
Total undiscounted cash flows	$	754	177	931
Less: Difference between undiscounted cash flows and discounted cash flows	150		39	189
Present value of lease liabilities	$	604	138	742

Undiscounted Cash Flows for Finance Leases


As of September 30, 2023 ($ in millions)	Operating Leases		Finance Leases	Total
Remainder of 2023	$	23	5	28
2024	92		20	112
2025	84		14	98
2026	76		9	85
2027	68		8	76
2028	59		8	67
Thereafter	352		113	465
Total undiscounted cash flows	$	754	177	931
Less: Difference between undiscounted cash flows and discounted cash flows	150		39	189
Present value of lease liabilities	$	604	138	742