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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases
NOTE 7 Leases
The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of
automobiles, while commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment.
The components of the net investment in sales-type and direct financing leases, at December 31, were as follows:
(Dollars in Millions)20232022
Lease receivables$7,239 $8,731 
Unguaranteed residual values accruing to the lessor’s benefit1,082 1,323 
Total net investment in sales-type and direct financing leases$8,321 $10,054 
The Company, as a lessor, recorded $738 million, $764 million and $888 million of revenue on its Consolidated Statement of Income for the years ended December 31,
2023, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases.
The contractual future lease payments to be received by the Company, at December 31, 2023, were as follows:
(Dollars in Millions)Sales-type and Direct Financing Leases Operating Leases
2024$3,069 $138 
20252,182 110 
20261,333 66 
2027690 42 
2028260 27 
Thereafter369 57 
Total lease payments7,903 $440 
Amounts representing interest(664)
Lease receivables$7,239 
The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2023, the Company’s ROU assets included in premises and equipment and lease liabilities included in long-term debt and other liabilities, were $1.4
billion and $1.6 billion, respectively, compared with $1.6 billion of ROU assets and $1.7 billion of lease liabilities at December 31, 2022, respectively.
Total costs incurred by the Company, as a lessee, were $496 million, $390 million and $364 million for the years ended December 31, 2023, 2022 and 2021, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company.
The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31:
(Dollars in Millions)202320222021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$409 $294 $288 
Operating cash flows from finance leases7 4 5 
Financing cash flows from finance leases49 14 12 
Right of use assets obtained in exchange for new operating lease liabilities230 239 164 
Right of use assets obtained in exchange for new finance lease liabilities25 91 75 
The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31:
 20232022
Weighted-average remaining lease term of operating leases (in years)6.46.8
Weighted-average remaining lease term of finance leases (in years)8.38.5
Weighted-average discount rate of operating leases3.7 %3.3 %
Weighted-average discount rate of finance leases7.7 %7.9 %
The contractual future lease obligations of the Company at December 31, 2023, were as follows:
(Dollars in Millions)Operating Leases Finance
Leases
2024$377 $41 
2025295 38 
2026245 36 
2027196 22 
2028144 8 
Thereafter360 23 
Total lease payments1,617 168 
Amounts representing interest(211)(18)
Lease liabilities$1,406 $150 
Leases
NOTE 7 Leases
The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of
automobiles, while commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment.
The components of the net investment in sales-type and direct financing leases, at December 31, were as follows:
(Dollars in Millions)20232022
Lease receivables$7,239 $8,731 
Unguaranteed residual values accruing to the lessor’s benefit1,082 1,323 
Total net investment in sales-type and direct financing leases$8,321 $10,054 
The Company, as a lessor, recorded $738 million, $764 million and $888 million of revenue on its Consolidated Statement of Income for the years ended December 31,
2023, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases.
The contractual future lease payments to be received by the Company, at December 31, 2023, were as follows:
(Dollars in Millions)Sales-type and Direct Financing Leases Operating Leases
2024$3,069 $138 
20252,182 110 
20261,333 66 
2027690 42 
2028260 27 
Thereafter369 57 
Total lease payments7,903 $440 
Amounts representing interest(664)
Lease receivables$7,239 
The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2023, the Company’s ROU assets included in premises and equipment and lease liabilities included in long-term debt and other liabilities, were $1.4
billion and $1.6 billion, respectively, compared with $1.6 billion of ROU assets and $1.7 billion of lease liabilities at December 31, 2022, respectively.
Total costs incurred by the Company, as a lessee, were $496 million, $390 million and $364 million for the years ended December 31, 2023, 2022 and 2021, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company.
The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31:
(Dollars in Millions)202320222021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$409 $294 $288 
Operating cash flows from finance leases7 4 5 
Financing cash flows from finance leases49 14 12 
Right of use assets obtained in exchange for new operating lease liabilities230 239 164 
Right of use assets obtained in exchange for new finance lease liabilities25 91 75 
The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31:
 20232022
Weighted-average remaining lease term of operating leases (in years)6.46.8
Weighted-average remaining lease term of finance leases (in years)8.38.5
Weighted-average discount rate of operating leases3.7 %3.3 %
Weighted-average discount rate of finance leases7.7 %7.9 %
The contractual future lease obligations of the Company at December 31, 2023, were as follows:
(Dollars in Millions)Operating Leases Finance
Leases
2024$377 $41 
2025295 38 
2026245 36 
2027196 22 
2028144 8 
Thereafter360 23 
Total lease payments1,617 168 
Amounts representing interest(211)(18)
Lease liabilities$1,406 $150 
Leases
NOTE 7 Leases
The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of
automobiles, while commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment.
The components of the net investment in sales-type and direct financing leases, at December 31, were as follows:
(Dollars in Millions)20232022
Lease receivables$7,239 $8,731 
Unguaranteed residual values accruing to the lessor’s benefit1,082 1,323 
Total net investment in sales-type and direct financing leases$8,321 $10,054 
The Company, as a lessor, recorded $738 million, $764 million and $888 million of revenue on its Consolidated Statement of Income for the years ended December 31,
2023, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases.
The contractual future lease payments to be received by the Company, at December 31, 2023, were as follows:
(Dollars in Millions)Sales-type and Direct Financing Leases Operating Leases
2024$3,069 $138 
20252,182 110 
20261,333 66 
2027690 42 
2028260 27 
Thereafter369 57 
Total lease payments7,903 $440 
Amounts representing interest(664)
Lease receivables$7,239 
The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2023, the Company’s ROU assets included in premises and equipment and lease liabilities included in long-term debt and other liabilities, were $1.4
billion and $1.6 billion, respectively, compared with $1.6 billion of ROU assets and $1.7 billion of lease liabilities at December 31, 2022, respectively.
Total costs incurred by the Company, as a lessee, were $496 million, $390 million and $364 million for the years ended December 31, 2023, 2022 and 2021, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company.
The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31:
(Dollars in Millions)202320222021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$409 $294 $288 
Operating cash flows from finance leases7 4 5 
Financing cash flows from finance leases49 14 12 
Right of use assets obtained in exchange for new operating lease liabilities230 239 164 
Right of use assets obtained in exchange for new finance lease liabilities25 91 75 
The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31:
 20232022
Weighted-average remaining lease term of operating leases (in years)6.46.8
Weighted-average remaining lease term of finance leases (in years)8.38.5
Weighted-average discount rate of operating leases3.7 %3.3 %
Weighted-average discount rate of finance leases7.7 %7.9 %
The contractual future lease obligations of the Company at December 31, 2023, were as follows:
(Dollars in Millions)Operating Leases Finance
Leases
2024$377 $41 
2025295 38 
2026245 36 
2027196 22 
2028144 8 
Thereafter360 23 
Total lease payments1,617 168 
Amounts representing interest(211)(18)
Lease liabilities$1,406 $150 
Leases
NOTE 7 Leases
The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of
automobiles, while commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment.
The components of the net investment in sales-type and direct financing leases, at December 31, were as follows:
(Dollars in Millions)20232022
Lease receivables$7,239 $8,731 
Unguaranteed residual values accruing to the lessor’s benefit1,082 1,323 
Total net investment in sales-type and direct financing leases$8,321 $10,054 
The Company, as a lessor, recorded $738 million, $764 million and $888 million of revenue on its Consolidated Statement of Income for the years ended December 31,
2023, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases.
The contractual future lease payments to be received by the Company, at December 31, 2023, were as follows:
(Dollars in Millions)Sales-type and Direct Financing Leases Operating Leases
2024$3,069 $138 
20252,182 110 
20261,333 66 
2027690 42 
2028260 27 
Thereafter369 57 
Total lease payments7,903 $440 
Amounts representing interest(664)
Lease receivables$7,239 
The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2023, the Company’s ROU assets included in premises and equipment and lease liabilities included in long-term debt and other liabilities, were $1.4
billion and $1.6 billion, respectively, compared with $1.6 billion of ROU assets and $1.7 billion of lease liabilities at December 31, 2022, respectively.
Total costs incurred by the Company, as a lessee, were $496 million, $390 million and $364 million for the years ended December 31, 2023, 2022 and 2021, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company.
The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31:
(Dollars in Millions)202320222021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$409 $294 $288 
Operating cash flows from finance leases7 4 5 
Financing cash flows from finance leases49 14 12 
Right of use assets obtained in exchange for new operating lease liabilities230 239 164 
Right of use assets obtained in exchange for new finance lease liabilities25 91 75 
The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31:
 20232022
Weighted-average remaining lease term of operating leases (in years)6.46.8
Weighted-average remaining lease term of finance leases (in years)8.38.5
Weighted-average discount rate of operating leases3.7 %3.3 %
Weighted-average discount rate of finance leases7.7 %7.9 %
The contractual future lease obligations of the Company at December 31, 2023, were as follows:
(Dollars in Millions)Operating Leases Finance
Leases
2024$377 $41 
2025295 38 
2026245 36 
2027196 22 
2028144 8 
Thereafter360 23 
Total lease payments1,617 168 
Amounts representing interest(211)(18)
Lease liabilities$1,406 $150 
Leases
NOTE 7 Leases
The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of
automobiles, while commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment.
The components of the net investment in sales-type and direct financing leases, at December 31, were as follows:
(Dollars in Millions)20232022
Lease receivables$7,239 $8,731 
Unguaranteed residual values accruing to the lessor’s benefit1,082 1,323 
Total net investment in sales-type and direct financing leases$8,321 $10,054 
The Company, as a lessor, recorded $738 million, $764 million and $888 million of revenue on its Consolidated Statement of Income for the years ended December 31,
2023, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases.
The contractual future lease payments to be received by the Company, at December 31, 2023, were as follows:
(Dollars in Millions)Sales-type and Direct Financing Leases Operating Leases
2024$3,069 $138 
20252,182 110 
20261,333 66 
2027690 42 
2028260 27 
Thereafter369 57 
Total lease payments7,903 $440 
Amounts representing interest(664)
Lease receivables$7,239 
The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2023, the Company’s ROU assets included in premises and equipment and lease liabilities included in long-term debt and other liabilities, were $1.4
billion and $1.6 billion, respectively, compared with $1.6 billion of ROU assets and $1.7 billion of lease liabilities at December 31, 2022, respectively.
Total costs incurred by the Company, as a lessee, were $496 million, $390 million and $364 million for the years ended December 31, 2023, 2022 and 2021, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company.
The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31:
(Dollars in Millions)202320222021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$409 $294 $288 
Operating cash flows from finance leases7 4 5 
Financing cash flows from finance leases49 14 12 
Right of use assets obtained in exchange for new operating lease liabilities230 239 164 
Right of use assets obtained in exchange for new finance lease liabilities25 91 75 
The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31:
 20232022
Weighted-average remaining lease term of operating leases (in years)6.46.8
Weighted-average remaining lease term of finance leases (in years)8.38.5
Weighted-average discount rate of operating leases3.7 %3.3 %
Weighted-average discount rate of finance leases7.7 %7.9 %
The contractual future lease obligations of the Company at December 31, 2023, were as follows:
(Dollars in Millions)Operating Leases Finance
Leases
2024$377 $41 
2025295 38 
2026245 36 
2027196 22 
2028144 8 
Thereafter360 23 
Total lease payments1,617 168 
Amounts representing interest(211)(18)
Lease liabilities$1,406 $150