Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Components of Lease Expense

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

	December 31, 2019
Weighted-average remaining lease term:
Operating leases	7.5
Finance leases	6.06
Weighted-average discount rate:
Operating leases	3.26	%
Finance leases	3.94	%

The components of lease expense are summarized as follows:

in millions	Twelve months ended December 31, 2019
Operating lease cost	$	136
Finance lease cost:
Amortization of right-of-use assets	2
Interest on lease liabilities	1
Variable lease cost	24
Total lease cost (a)	$	163

(a) Short-term lease cost was less than less than $1 million for the twelve months ended December 31, 2019.

Summary of Cash Flows Related to Leases

Cash flows related to leases are summarized as follows:

in millions	Twelve months ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	1
Operating cash flows from operating leases	146
Financing cash flows from finance leases	2
Right-of-use assets obtained in exchange for lease obligations: (a)
Operating leases	$	81
Net gain recognized from sale leaseback transaction (b)	$	14

(a) There were no right-of-use assets obtained in exchange for finance lease obligations for the twelve months ended December 31, 2019.

(b)

During the third quarter of 2019, we entered into a sale leaseback transaction related to one branch which resulted in total proceeds of $16 million.

Summary of Additional Balance Sheet Information Related to Leases

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

in millions	Balance sheet classification	December 31, 2019
Operating lease assets	Accrued income and other assets	$	654
Operating lease liabilities	Accrued expense and other liabilities	748
Finance leases:
Property and equipment, gross	Premises and equipment	28
Accumulated depreciation	Premises and equipment	(17		)
Property and equipment, net		11
Finance lease liabilities	Long-term debt	13

Finance Lease, Maturities of Lease Liabilities

Maturities of lease liabilities are summarized as follows:

in millions	Operating Leases		Finance Leases		Total
2020	$	142	$	3	$	145
2021	131		3		134
2022	117		2		119
2023	101		2		103
2024	82		1		83
Thereafter	265		4		269
Total lease payments	838		15		853
Less imputed interest	90		2		92
Total	$	748	$	13	$	761

Lessee, Operating Lease, Maturities of Lease Liabilities

Maturities of lease liabilities are summarized as follows:

in millions	Operating Leases		Finance Leases		Total
2020	$	142	$	3	$	145
2021	131		3		134
2022	117		2		119
2023	101		2		103
2024	82		1		83
Thereafter	265		4		269
Total lease payments	838		15		853
Less imputed interest	90		2		92
Total	$	748	$	13	$	761

Operating Lease, Lease Income

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

in millions	Twelve months ended December 31, 2019
Sales-type and direct financing leases
Interest income on lease receivable	$	121
Interest income related to accretion of unguaranteed residual asset	13
Interest income on deferred fees and costs	—
Total sales-type and direct financing lease income	134
Operating leases
Operating lease income related to lease payments	133
Other operating leasing gains	28
Total operating lease income and other leasing gains	161
Total lease income	$	295

Sales-type Lease, Lease Income

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

in millions	Twelve months ended December 31, 2019
Sales-type and direct financing leases
Interest income on lease receivable	$	121
Interest income related to accretion of unguaranteed residual asset	13
Interest income on deferred fees and costs	—
Total sales-type and direct financing lease income	134
Operating leases
Operating lease income related to lease payments	133
Other operating leasing gains	28
Total operating lease income and other leasing gains	161
Total lease income	$	295

Direct Financing Lease, Lease Income

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

in millions	Twelve months ended December 31, 2019
Sales-type and direct financing leases
Interest income on lease receivable	$	121
Interest income related to accretion of unguaranteed residual asset	13
Interest income on deferred fees and costs	—
Total sales-type and direct financing lease income	134
Operating leases
Operating lease income related to lease payments	133
Other operating leasing gains	28
Total operating lease income and other leasing gains	161
Total lease income	$	295

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	December 31, 2019
Lease receivables	$	3,792
Unearned income	(329		)
Unguaranteed residual value	490
Deferred fees and costs	16
Net investment in sales-type and direct financing leases	$	3,969

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

At December 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
2020	$	1,127
2021	867
2022	634
2023	413
2024	258
Thereafter	496
Total lease payments	$	3,795

Minimum Future Lease Payments to be Received for Operating Leases

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

in millions	Operating lease payments
2020	$	129
2021	114
2022	97
2023	80
2024	69
Thereafter	167
Total lease payments	$	656