Lease Obligations - Lessee (Tables)

3 Months Ended

Mar. 31, 2019


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

($ in millions)	Condensed Consolidated Balance Sheets Caption		March 31, 2019
Assets
Operating lease right-of-use assets	Other assets	$	475
Finance lease right-of-use assets	Bank premises and equipment		17
Total right-of-use assets^(a)		$	492
Liabilities
Operating lease liabilities	Accrued taxes, interest and expenses	$	545
Finance lease liabilities	Long-term debt		17
Total lease liabilities		$	562

(a) Finance and operating lease right-of-use assets are recorded net of accumulated amortization of $18 and $22 as of March 31, 2019, respectively.

Components of Lease Costs


The following table presents the components of lease costs for the three months ended:

($ in millions)		Condensed Consolidated Statements of Income Caption		March 31, 2019
Lease costs
	Amortization of right-of-use assets	Net occupancy and equipment expense	$	1
	Interest on lease liabilities	Interest on long-term debt		-
Total finance lease costs			$	1
	Operating lease cost	Net occupancy expense	$	22
	Short-term lease cost	Net occupancy expense		-
	Variable lease cost	Net occupancy expense		8
	Sublease income	Net occupancy expense		(1)
Total operating lease costs			$	29
Total lease costs			$	30

Undiscounted Cash Flows for Operating and Finance Leases

The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2019 through 2024 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities as follows:

		Operating Leases	Finance Leases
As of March 31, 2019 ($ in millions)		Operating Leases	Finance Leases	Total
Remainder of 2019	$	75	4	79
2020		88	5	93
2021		75	4	79
2022		67	4	71
2023		59	-	59
2024		51	-	51
Thereafter		225	2	227
Total undiscounted cash flows	$	640	19	659
Less: Difference between undiscounted cash flows and discounted cash flows		(95)	(2)	(97)
Present value of lease liabilities	$	545	17	562

Lease Obligations, Other Information

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

		March 31, 2019
Weighted-average remaining lease term (years)
	Operating leases	9.09
	Finance leases	4.59
Weighted-average discount rate
	Operating leases	3.28	%
	Finance leases	5.83


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

($ in millions)			March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities^(a)
	Operating cash flows from operating leases	$	21
	Operating cash flows from finance leases		-
	Financing cash flows from finance leases		1

(Gains) and losses on sale and leaseback transactions, net			-

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.