Operating Lease Equipment

3 Months Ended

Mar. 31, 2024

Operating lease equipment was $427 million and $459 million at March 31, 2024 and December 31, 2023, respectively, net of accumulated depreciation of $361 million and $355 million at March 31, 2024 and December 31, 2023, respectively. The Bancorp recorded lease income of $28 million and $37 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, 2024 and 2023, respectively. Depreciation expense related to operating lease equipment was $23 million and $31 million for the three months ended March 31, 2024 and 2023, respectively. The Bancorp received payments of $27 million and $41 million related to operating leases during the three months ended March 31, 2024 and 2023, 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 the three months ended March 31, 2024 and did not recognize any impairment losses during the three months ended March 31, 2023 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 2024 through 2029 and thereafter:


As of March 31, 2024 ($ in millions)	Undiscounted Cash Flows
Remainder of 2024	$	76
2025	78
2026	51
2027	26
2028	11
2029	6
Thereafter	9
Total operating lease payments	$	257