XML 107 R14.htm IDEA: XBRL DOCUMENT
v3.20.4

Leases | 12 Months Ended
--- | ---
Dec. 31, 2020
Leases [Abstract] |
Leases | L EASES PNC enters into both lessor and lessee arrangements. For more information on lease accounting, see Note 1 Accounting Policies and for additional details on our equipment lease financing receivables see Note 4 Loans and Related Allowance for Credit Losses. Lessor Arrangements PNC’s lessor arrangements primarily consist of direct financing, sales-type and operating leases for equipment. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. The following table provides details on our income from lessor arrangements: Table 64: Lease Income
Year ended December 31 |  |  |
In millions | 2020 | 2019 |
Sales-type and direct financing leases (a) | $ | 269 |  | $ | 295 |  |
Operating leases (b) | 95 |  | 117 |  |
Lease income | $ | 364 |  | $ | 412 |  |
(a)Included in Loan interest income on the Consolidated Income Statement. (b)Included in Corporate services on the Consolidated Income Statement. The following table provides the components of our equipment lease financing assets: Table 65: Sales-Type and Direct Financing Leases
| December 31 |
In millions | 2020 | 2019 |
Lease receivables (a) | $ | 6,246 |  | $ | 7,353 |  |
Unguaranteed residual asset values | 957 |  | 741 |  |
Unearned income | (789) |  | (939) |  |
Equipment lease financing | $ | 6,414 |  | $ | 7,155 |  |
(a)In certain cases, PNC obtains third-party residual value insurance to reduce its residual risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $0.4 billion and $0.3 billion for 2020 and 2019, respectively. Operating lease assets were $1.0 billion and accumulated depreciation was $0.2 billion at December 31, 2020 compared to operating lease assets of $1.1 billion and accumulated depreciation of $0.3 billion at December 31, 2019. We had no lease transactions with related parties or deferred selling profits at December 31, 2020 and 2019. The future minimum lease payments based on maturity of our lessor arrangements at December 31, 2020 were as follows: Table 66: Future Minimum Lease Payments of Lessor Arrangements
In millions | Operating Leases | Sales-type and Direct Financing Leases
2021 | $ | 95 |  | $ | 1,467 |
2022 | 75 |  | 1,315 |
2023 | 42 |  | 948 |
2024 | 35 |  | 806 |
2025 | 24 |  | 473 |
2026 and thereafter | 42 |  | 1,237 |
Total future minimum lease payments | $ | 313 |  | $ | 6,246 |
Lessee Arrangements We lease retail branches, datacenters, office space, land and equipment under operating and finance leases. Our leases have remaining lease terms of one year to 47 years, some of which may include options to renew the leases for up to 99 years, and some of which may include options to terminate the leases prior to the end date. Certain leases also include options to purchase the leased asset. The exercise of lease renewal, termination and purchase options is at our sole discretion. We recognize on the balance sheet all leases with lease terms greater than twelve months as a lease liability with a corresponding right-of-use asset. At adoption of ASU 2016-02 on January 1, 2019, we elected the practical expedient to account for the lease and nonlease components of existing real estate leases and leases of advertising assets, such as signage, as a single lease component. Effective January 1, 2019, lease and nonlease components of new lease agreements are accounted for separately. Lease components consist of fixed payments including rent, real estate taxes and insurance costs and nonlease components consist of common-area maintenance costs. In addition, we elected the practical expedient to not apply the recognition requirements under the standard to short-term leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, as we recognize lease expense for these leases on a straight-line basis over the lease term. Generally, we have elected to use the Overnight Indexed Swap rate corresponding to the term of the lease at the lease measurement date as our incremental borrowing rate to measure the right-of-use asset and lease liability. Certain of our lease agreements include rental payments based on a percentage of revenue and others include rental payments if certain bank deposit levels are met. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Subleases to third parties were not material at December 31, 2020 and 2019. The following tables provide details on our operating leases: Table 67: Operating Lease Costs and Cash Flows
Year ended December 31 |  |  |  |
In millions | 2020 |  | 2019 |
Operating lease cost (a) | $ | 358 |  |  | $ | 360 |  |
Operating cash flows | $ | 360 |  |  | $ | 353 |  |
(a)Included in Occupancy, Equipment and Marketing expense on the Consolidated Income Statement. Table 68: Operating Lease Assets and Liabilities
| December 31 |
In millions | 2020 |  | 2019 |
Operating lease assets (a) | $ | 1,876 |  |  | $ | 1,982 |  |
Operating lease liabilities (b) | $ | 2,097 |  |  | $ | 2,170 |  |
(a)Included in Other assets on the Consolidated Balance Sheet. (b)Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. Finance lease assets and liabilities, income and cash flows at December 31, 2020 and 2019 were not material. Operating lease term and discount rates of our lessee arrangements at December 31, 2020 and 2019 were as follows: Table 69: Operating Lease Term and Discount Rates of Lessee Arrangements
| December 31 |
| 2020 |  | 2019 |
Weighted-average remaining lease term (years) | 8 |  | 9 |
Weighted-average discount rate | 2.21 | % |  | 2.42 | % |
Future undiscounted cash flows on our lessee arrangements at December 31, 2020 are as follows: Table 70: Future Lease Payments of Operating Lease Liabilities
In millions |  | December 31, 2020
2021 |  | $ | 364 |
2022 |  | 340 |
2023 |  | 309 |
2024 |  | 260 |
2025 |  | 217 |
2026 and thereafter |  | 822 |
Total future lease payments |  | $ | 2,312 |
Less: Interest |  | 215 |
Present value of operating lease liabilities |  | $ | 2,097 |
Leases | L EASES PNC enters into both lessor and lessee arrangements. For more information on lease accounting, see Note 1 Accounting Policies and for additional details on our equipment lease financing receivables see Note 4 Loans and Related Allowance for Credit Losses. Lessor Arrangements PNC’s lessor arrangements primarily consist of direct financing, sales-type and operating leases for equipment. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. The following table provides details on our income from lessor arrangements: Table 64: Lease Income
Year ended December 31 |  |  |
In millions | 2020 | 2019 |
Sales-type and direct financing leases (a) | $ | 269 |  | $ | 295 |  |
Operating leases (b) | 95 |  | 117 |  |
Lease income | $ | 364 |  | $ | 412 |  |
(a)Included in Loan interest income on the Consolidated Income Statement. (b)Included in Corporate services on the Consolidated Income Statement. The following table provides the components of our equipment lease financing assets: Table 65: Sales-Type and Direct Financing Leases
| December 31 |
In millions | 2020 | 2019 |
Lease receivables (a) | $ | 6,246 |  | $ | 7,353 |  |
Unguaranteed residual asset values | 957 |  | 741 |  |
Unearned income | (789) |  | (939) |  |
Equipment lease financing | $ | 6,414 |  | $ | 7,155 |  |
(a)In certain cases, PNC obtains third-party residual value insurance to reduce its residual risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $0.4 billion and $0.3 billion for 2020 and 2019, respectively. Operating lease assets were $1.0 billion and accumulated depreciation was $0.2 billion at December 31, 2020 compared to operating lease assets of $1.1 billion and accumulated depreciation of $0.3 billion at December 31, 2019. We had no lease transactions with related parties or deferred selling profits at December 31, 2020 and 2019. The future minimum lease payments based on maturity of our lessor arrangements at December 31, 2020 were as follows: Table 66: Future Minimum Lease Payments of Lessor Arrangements
In millions | Operating Leases | Sales-type and Direct Financing Leases
2021 | $ | 95 |  | $ | 1,467 |
2022 | 75 |  | 1,315 |
2023 | 42 |  | 948 |
2024 | 35 |  | 806 |
2025 | 24 |  | 473 |
2026 and thereafter | 42 |  | 1,237 |
Total future minimum lease payments | $ | 313 |  | $ | 6,246 |
Lessee Arrangements We lease retail branches, datacenters, office space, land and equipment under operating and finance leases. Our leases have remaining lease terms of one year to 47 years, some of which may include options to renew the leases for up to 99 years, and some of which may include options to terminate the leases prior to the end date. Certain leases also include options to purchase the leased asset. The exercise of lease renewal, termination and purchase options is at our sole discretion. We recognize on the balance sheet all leases with lease terms greater than twelve months as a lease liability with a corresponding right-of-use asset. At adoption of ASU 2016-02 on January 1, 2019, we elected the practical expedient to account for the lease and nonlease components of existing real estate leases and leases of advertising assets, such as signage, as a single lease component. Effective January 1, 2019, lease and nonlease components of new lease agreements are accounted for separately. Lease components consist of fixed payments including rent, real estate taxes and insurance costs and nonlease components consist of common-area maintenance costs. In addition, we elected the practical expedient to not apply the recognition requirements under the standard to short-term leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, as we recognize lease expense for these leases on a straight-line basis over the lease term. Generally, we have elected to use the Overnight Indexed Swap rate corresponding to the term of the lease at the lease measurement date as our incremental borrowing rate to measure the right-of-use asset and lease liability. Certain of our lease agreements include rental payments based on a percentage of revenue and others include rental payments if certain bank deposit levels are met. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Subleases to third parties were not material at December 31, 2020 and 2019. The following tables provide details on our operating leases: Table 67: Operating Lease Costs and Cash Flows
Year ended December 31 |  |  |  |
In millions | 2020 |  | 2019 |
Operating lease cost (a) | $ | 358 |  |  | $ | 360 |  |
Operating cash flows | $ | 360 |  |  | $ | 353 |  |
(a)Included in Occupancy, Equipment and Marketing expense on the Consolidated Income Statement. Table 68: Operating Lease Assets and Liabilities
| December 31 |
In millions | 2020 |  | 2019 |
Operating lease assets (a) | $ | 1,876 |  |  | $ | 1,982 |  |
Operating lease liabilities (b) | $ | 2,097 |  |  | $ | 2,170 |  |
(a)Included in Other assets on the Consolidated Balance Sheet. (b)Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. Finance lease assets and liabilities, income and cash flows at December 31, 2020 and 2019 were not material. Operating lease term and discount rates of our lessee arrangements at December 31, 2020 and 2019 were as follows: Table 69: Operating Lease Term and Discount Rates of Lessee Arrangements
| December 31 |
| 2020 |  | 2019 |
Weighted-average remaining lease term (years) | 8 |  | 9 |
Weighted-average discount rate | 2.21 | % |  | 2.42 | % |
Future undiscounted cash flows on our lessee arrangements at December 31, 2020 are as follows: Table 70: Future Lease Payments of Operating Lease Liabilities
In millions |  | December 31, 2020
2021 |  | $ | 364 |
2022 |  | 340 |
2023 |  | 309 |
2024 |  | 260 |
2025 |  | 217 |
2026 and thereafter |  | 822 |
Total future lease payments |  | $ | 2,312 |
Less: Interest |  | 215 |
Present value of operating lease liabilities |  | $ | 2,097 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 1 -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 3 -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration