Leases (Tables)

12 Months Ended

Dec. 31, 2020

Text Block [Abstract]

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

The components of the net investment in sales-type and direct financing leases, at December 31, were as follows:

(Dollars in Millions)	2020		2019
Lease receivables	$	11,890	$	12,324
Unguaranteed residual values accruing to the lessor’s benefit		1,787		1,834
Total net investment in sales-type and direct financing leases	$	13,677	$	14,158

Contractual Future Lease Payments to be Received

The contractual future lease payments to be received by the Company, at December 31, 2020, were as follows:    

(Dollars in Millions)	Sales-type and direct financing leases			Operating leases
2021	$	4,288		$	153
2022		3,664			121
2023		2,816			83
2024		1,210			56
2025		307			38
Thereafter		496			17
Total lease payments		12,781		$	468
Amounts representing interest		(891	)
Lease receivables	$	11,890

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 for the years ended December 31:

(Dollars in Millions)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	305	$	302
Operating cash flows from finance leases		6		7
Financing cash flows from finance leases		12		10
Right of use assets obtained in exchange for new operating lease liabilities		128		134
Right of use assets obtained in exchange for new finance lease liabilities		6		10

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 December 31:

	2020			2019
Weighted-average remaining lease term of operating leases (in years)		7.0			7.4
Weighted-average remaining lease term of finance leases (in years)		9.6			10.7
Weighted-average discount rate of operating leases		3.0	%		3.2	%
Weighted-average discount rate of finance leases		12.5	%		14.3	%

Schedule of Contractual Future Lease Obligations

The contractual future lease obligations of the Company at December 31, 2020, were as follows:

(Dollars in Millions)	Operating leases			Finance leases
2021	$	290		$	18
2022		254			15
2023		209			15
2024		155			13
2025		111			11
Thereafter		344			29
Total lease payments		1,363			101
Amounts representing interest		(129	)		(25	)
Lease liabilities	$	1,234		$	76