Leases (Tables)

9 Months Ended

Sep. 30, 2019

Components of Net Investment in Sales-Type and Direct Financing Leases

The components of the net investment in sales-type and direct financing leases were as follows:


(Dollars in Millions)	September 30, 2019		December 31, 2018
Lease receivables	$	12,150	$	12,207
Unguaranteed residual values accruing to the lessor’s benefit		1,873		1,877
Total net investment in sales-type and direct financing leases	$	14,023	$	14,084

Contractual Future Lease Payments to be Received

The contractual future lease payments to be received by the Company at September 30, 2019, were as follows:


(Dollars in Millions)	Sales-type and direct financing leases			Operating leases
One Year or Less	$	4,623		$	181
Over One Through Two Years		3,737			140
Over Two Through Three Years		2,615			104
Over Three Through Four Years		1,251			69
Over Four Through Five Years		432			52
Thereafter		501			59
Total lease payments		13,159		$	605
Amounts representing interest		(1,009	)
Lease receivables	$	12,150

Summary of Amounts Relevant to Company's Assets Leased for Use in its Operations

The following table presents amounts relevant to the Company’s assets leased for use in its operations:


(Dollars in Millions)	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	75	$	226
Operating cash flows from finance leases		1		5
Financing cash flows from finance leases		3		8
Right of use assets obtained in exchange for new operating lease liabilities		27		100
Right of use assets obtained in exchange for new finance lease liabilities		5		7

Summary of Weighted-Average Remaining Lease Terms and Discount Rates

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 September 30, 2019:


Weighted-average remaining lease term of operating leases (in years)	7.5
Weighted-average remaining lease term of finance leases (in years)	10.4
Weighted-average discount rate of operating leases	3.2	%
Weighted-average discount rate of finance leases	15.3	%

Schedule of Contractual Future Lease Obligations

The contractual future lease obligations of the Company at September 30, 2019, were as follows:


(Dollars in Millions)	Operating leases			Finance leases
One Year or Less	$	305		$	17
Over One Through Two Years		255			15
Over Two Through Three Years		230			13
Over Three Through Four Years		186			11
Over Four Through Five Years		138			10
Thereafter		416			37
Total lease payments		1,530			103
Amounts representing interest		(186	)		(32	)
Lease liabilities	$	1,344		$	71