Leases

12 Months Ended

Dec. 31, 2020

LeasesWe have entered into operating leases for premises and equipment. As discussed more fully in Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," beginning January 1, 2019, lease ROU assets and lease liabilities for operating leases are recognized at effective commencement date based on the present value of lease payments over the lease term.

The following table summarizes the components of total operating lease costs, net and provides supplemental cash flow information related to leases:



Year Ended December 31,	2020		2019
	(in millions)
Operating lease cost	$	127	$	136
Variable lease cost	59		63
Short-term lease cost	—		4
Sublease income(1)	(54)		(60)
Total operating lease costs, net	$	132	$	143

Supplemental disclosure of cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	135	$	126
ROU assets recognized for new operating lease liabilities	24		132

(1)We have entered into agreements to sublease certain office space, including agreements to receive rental income from our affiliates for rent. As owner or lessee of the properties, we have entered into agreements with these affiliates to charge them rent based on the office space utilized by their employees during the period. See Note 23, "Related Party Transactions," for further disclosure.

In addition to the operating lease costs reflected in the table above, during 2020, we recorded lease impairment charges of $76 million to write down the lease ROU assets associated with approximately 60 branches and certain office space that we determined we would exit as part of our Restructuring Plan. See Note 3, "Strategic Initiatives," for further discussion. During 2019, we determined that we would exit approximately 20 branches and, as a result, we recorded lease impairment charges of $13 million to write down the lease ROU assets associated with these branches based on their estimated remaining useful lives. These impairment charges are reflected in occupancy expense, net in the consolidated statement of income (loss) and were reported in the Corporate Center business segment.

The following table presents information about our operating lease ROU assets and liabilities:


At December 31,	2020			2019
	(dollars are in millions)
Operating lease ROU assets(1)	$	527		$	719
Operating lease liabilities	625			783
Weighted-average remaining lease term	6.8 years			7.2 years
Weighted-average discount rate	3.0		%	3.1		%

(1)Reported net of level lease adjustments and accumulated impairment losses.

The following table presents a maturity analysis of our operating lease liabilities at December 31, 2020:


Year Ending December 31,
	(in millions)
2021	$	121
2022	122
2023	115
2024	111
2025	74
Thereafter	167
Total future operating lease payments	710
Less - imputed interest	(85)
Total operating lease liabilities	$	625

At December 31, 2020, we had $6 million of additional operating leases for premises that have not yet commenced and are not reflected in the table above.

Prior to the adoption of the new accounting guidance on January 1, 2019, net rental expense under operating leases, which did not include certain variable lease costs, was $103 million in 2018.