Leases

12 Months Ended

Dec. 31, 2021

We have entered into operating leases for premises and equipment. 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,	2021		2020		2019
	(in millions)
Operating lease cost	$	87	$	127	$	136
Variable lease cost	48		59		63
Short-term lease cost	—		—		4
Sublease income(1)	(43)		(54)		(60)
Total operating lease costs, net	$	92	$	132	$	143

Supplemental disclosure of cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	129	$	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. 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 24, "Related Party Transactions," for further disclosure.

In addition to the operating lease costs reflected in the table above, during 2021 and 2020, we recorded lease impairment charges of $63 million and $76 million, respectively, to write-down the lease ROU assets associated with certain branches and 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 Wealth and Personal Banking and the Corporate Center business segment.

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


At December 31,	2021			2020
	(dollars are in millions)
Operating lease ROU assets(1)(2)	$	181		$	527
Operating lease liabilities(2)	305			625
Weighted-average remaining lease term	6.7 years			6.8 years
Weighted-average discount rate	3.0		%	3.0		%

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

(2)The decreases since December 31, 2020 include the impact of our decision to exit our mass market retail banking business which resulted in the transfer of lease ROU assets and lease liabilities to other branch related assets held for sale and other branch related liabilities held for sale during the second quarter of 2021. See Note 4, "Branch Assets and Liabilities Held for Sale," for further discussion.

The following table presents a maturity analysis of our operating lease liabilities at December 31, 2021:


Year Ending December 31,
	(in millions)
2022	$	79
2023	78
2024	70
2025	35
2026	15
Thereafter	65
Total future operating lease payments	342
Less - imputed interest	(37)
Total operating lease liabilities	$	305

At December 31, 2021, additional operating leases for premises that have not yet commenced and are not reflected in the table above were not material.