Lease Obligations - Lessee (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024		December 31, 2023
Assets
Operating lease right-of-use assets	Other assets	$	510	511
Finance lease right-of-use assets	Bank premises and equipment	164		126
Total right-of-use assets(a)		$	674	637
Liabilities
Operating lease liabilities	Accrued taxes, interest and expenses	$	596	601
Finance lease liabilities	Long-term debt	176		134
Total lease liabilities		$	772	735

(a)    Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $304 and $48, respectively, as of March 31, 2024, and $292 and $77, respectively, as of December 31, 2023.

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,
		2024		2023
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	22
Short-term lease cost	Net occupancy expense	—		1
Variable lease cost	Net occupancy expense	8		7
Sublease income	Net occupancy expense	(1)		(1)
Total operating lease costs		$	29	29
Total lease costs		$	35	35

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

	March 31, 2024		December 31, 2023
Weighted-average remaining lease term (years):
Operating leases	11.06		11.07
Finance leases	12.84		15.21
Weighted-average discount rate:
Operating leases	3.80	%	3.72
Finance leases	3.82		3.02

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

($ in millions)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:(a)
Operating cash flows from operating leases	$	23	23
Operating cash flows from finance leases	1		1
Financing cash flows from finance leases	5		4
Gains on sale-leaseback transactions	—		1

(a)    The cash flows related to short-term and variable lease payments are not included in the amounts presented 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 2024 through 2029 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities:

As of March 31, 2024 ($ in millions)	Operating Leases		Finance Leases	Total
Remainder of 2024	$	70	18	88
2025	88		23	111
2026	79		22	101
2027	71		21	92
2028	63		21	84
2029	54		11	65
Thereafter	326		105	431
Total undiscounted cash flows	$	751	221	972
Less: Difference between undiscounted cash flows and discounted cash flows	155		45	200
Present value of lease liabilities	$	596	176	772

Undiscounted Cash Flows for Finance Leases

The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2024 through 2029 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities:

As of March 31, 2024 ($ in millions)	Operating Leases		Finance Leases	Total
Remainder of 2024	$	70	18	88
2025	88		23	111
2026	79		22	101
2027	71		21	92
2028	63		21	84
2029	54		11	65
Thereafter	326		105	431
Total undiscounted cash flows	$	751	221	972
Less: Difference between undiscounted cash flows and discounted cash flows	155		45	200
Present value of lease liabilities	$	596	176	772