Lease Obligations - Lessee (Tables)

9 Months Ended

Sep. 30, 2019

Lease Obligations - Lessee

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		September 30, 2019
Assets
Operating lease right-of-use assets	Other assets	$	462
Finance lease right-of-use assets	Bank premises and equipment		25
Total right-of-use assets(a)		$	487
Liabilities
Operating lease liabilities	Accrued taxes, interest and expenses	$	543
Finance lease liabilities	Long-term debt		26
Total lease liabilities		$	569

(a) Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $57 and $25 as of September 30, 2019, respectively.

Components of Lease Costs

The following table presents the components of lease costs:
				For the three months ended September 30, 2019	For the nine months ended September 30, 2019
($ in millions)		Condensed Consolidated Statements of Income Caption
Lease costs:
	Amortization of right-of-use assets	Net occupancy and equipment expense	$	2	5
	Interest on lease liabilities	Interest on long-term debt		-	-
Total finance lease costs			$	2	5
	Operating lease cost	Net occupancy expense	$	25	72
	Short-term lease cost	Net occupancy expense		-	-
	Variable lease cost	Net occupancy expense		7	23
	Sublease income	Net occupancy expense		(1)	(3)
Total operating lease costs			$	31	92
Total lease costs			$	33	97

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 September 30, 2019 ($ in millions)				Total
Remainder of 2019	$	25	2	27
2020		88	6	94
2021		77	5	82
2022		72	4	76
2023		63	1	64
2024		55	1	56
Thereafter		258	14	272
Total undiscounted cash flows	$	638	33	671
Less: Difference between undiscounted cash flows and discounted cash flows		95	7	102
Present value of lease liabilities	$	543	26	569

Lease Obligations, Other Information

The following table presents the weighted-average remaining lease term and weighted-average discount rate as of:
		September 30, 2019
Weighted-average remaining lease term (years):
	Operating leases	9.35
	Finance leases	11.35
Weighted-average discount rate:
	Operating leases	3.24	%
	Finance leases	4.78

The following table presents information related to lease transactions for the nine months ended:
($ in millions)			September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:(a)
	Operating cash flows from operating leases	$	72
	Operating cash flows from finance leases		1
	Financing cash flows from finance leases		3
Gains on sale and leaseback transactions			5
(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.