Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Components of Lease Expense

Information pertaining to the lease term and weighted-average discount rate is summarized as follows:

March 31,	2019
Weighted-average remaining lease term:
Operating leases	7.9 years
Finance leases	7.6 years
Weighted-average discount rate:
Operating leases	3.28	%
Finance leases	4.12	%

The components of lease expense are summarized as follows:

Three months ended March 31,
in millions	2019 (a), (b)
Operating lease cost	$	34
Variable lease cost	5
Total lease cost	$	39

(a) The amortization of right-of-use assets and interest on lease liabilities for finance leases were each less than $1 million for the three months ended March 31, 2019.

(b)

Short-term lease cost was less than less than $1 million for the three months ended March 31, 2019.

Summary of Cash Flows Related to Leases

Cash flows related to leases are summarized as follows:

Three months ended March 31,
in millions	2019 (a), (b)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	36
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	28

(a) Operating and financing cash flows from finance leases were each less than $1 million for the three months ended March 31, 2019.

(b)

There were no right-of-use assets obtained in exchange for finance lease obligations for the three months ended March 31, 2019.

Summary of Additional Balance Sheet Information Related to Leases

Additional balance sheet information related to leases is summarized as follows:

March 31,
in millions	Balance sheet classification	2019
Operating lease assets	Accrued income and other assets	$	694
Operating lease liabilities	Accrued expense and other liabilities	787
Finance leases:
Property and equipment, gross	Premises and equipment	28
Accumulated depreciation	Premises and equipment	(16		)
Property and equipment, net		12
Finance lease liabilities	Long-term debt	15

Finance Lease, Maturities of Lease Liabilities

Maturities of lease liabilities are summarized as follows:

in millions	Operating Leases		Finance Leases		Total
2019	$	108	$	2	$	110
2020	139		3		142
2021	123		3		126
2022	108		3		111
2023	93		2		95
Thereafter	332		5		337
Total lease payments	903		18		921
Less imputed interest	116		3		119
Total	$	787	$	15	$	802

Lessee, Operating Lease, Maturities of Lease Liabilities

Maturities of lease liabilities are summarized as follows:

in millions	Operating Leases		Finance Leases		Total
2019	$	108	$	2	$	110
2020	139		3		142
2021	123		3		126
2022	108		3		111
2023	93		2		95
Thereafter	332		5		337
Total lease payments	903		18		921
Less imputed interest	116		3		119
Total	$	787	$	15	$	802

Operating Lease, Lease Income

The components of equipment leasing income are summarized in the table below:

Three months ended March 31,
in millions	2019
Sales-type and direct financing leases
Interest income on lease receivable	$	30
Interest income related to accretion of unguaranteed residual asset	3
Interest income on deferred fees and costs	—
Total sales-type and direct financing lease income	33
Operating leases
Operating lease income related to lease payments	33
Other operating leasing gains	4
Total operating lease income and other leasing gains	37
Total lease income	$	70

Sales-type Lease, Lease Income

The components of equipment leasing income are summarized in the table below:

Three months ended March 31,
in millions	2019
Sales-type and direct financing leases
Interest income on lease receivable	$	30
Interest income related to accretion of unguaranteed residual asset	3
Interest income on deferred fees and costs	—
Total sales-type and direct financing lease income	33
Operating leases
Operating lease income related to lease payments	33
Other operating leasing gains	4
Total operating lease income and other leasing gains	37
Total lease income	$	70

Direct Financing Lease, Lease Income

The components of equipment leasing income are summarized in the table below:

Three months ended March 31,
in millions	2019
Sales-type and direct financing leases
Interest income on lease receivable	$	30
Interest income related to accretion of unguaranteed residual asset	3
Interest income on deferred fees and costs	—
Total sales-type and direct financing lease income	33
Operating leases
Operating lease income related to lease payments	33
Other operating leasing gains	4
Total operating lease income and other leasing gains	37
Total lease income	$	70

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

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

in millions	March 31, 2019
Lease receivables	$	3,597
Unearned income	(346		)
Unguaranteed residual value	428
Deferred fees and costs	17
Net investment in sales-type and direct financing leases	$	3,696

Minimum Future Lease Payments to be Received for Sales-Type and Direct Financing Leases

At March 31, 2019, minimum future lease payments to be received for sales-type and direct financing leases are as follows:

in millions	Sales-type and direct financing lease payments
2019	$	843
2020	928
2021	659
2022	435
2023	269
Thereafter	463
Total lease payments	3,597

Minimum Future Lease Payments to be Received for Operating Leases

At March 31, 2019, minimum future lease payments to be received for operating leases are as follows:

in millions	Operating lease payments
2019	$	97
2020	121
2021	103
2022	87
2023	73
Thereafter	217
Total lease payments	$	698