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Leases (Tables)
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Components of Lease Income

The components of lease income were as follows:

 

(dollars in millions)

 

For the
Three
Months
ended
June 30,
2021

 

 

For the Six
Months
Ended
June 30,
2021

 

 

For the
Three
Months
ended
June 30,
2020

 

 

For the Six
Months
Ended
June 30,
2020

 

Interest income on lease financing (1)

 

$

14

 

 

$

28

 

 

$

14

 

 

$

26

 

 

(1) Included in Interest Income – Loans and leases in the Consolidated Statements of Income and Comprehensive Income.

Components of Net Investment in Direct Financing Leases The components of net investment in direct financing leases, including the carrying amount of the lease receivables, as well as the unguaranteed residual asset were as follows:

 

(dollars in millions)

 

June 30,
2021

 

 

December 31,
2020

 

Net investment in the lease - lease payments receivable

 

$

1,871

 

 

$

1,771

 

Net investment in the lease - unguaranteed
   residual assets

 

 

78

 

 

 

80

 

Total lease payments

 

$

1,949

 

 

$

1,851

 
Summary of Remaining Maturity of Undiscounted Lease Receivables

The following table presents the remaining maturity analysis of the undiscounted lease receivables as of June 30, 2021, as well as the reconciliation to the total amount of receivables recognized in the Consolidated Statements of Condition:

 

(dollars in millions)

 

June 30,
2021

 

2021

 

$

17

 

2022

 

 

53

 

2023

 

 

287

 

2024

 

 

308

 

2025

 

 

404

 

Thereafter

 

 

880

 

Total lease payments

 

 

1,949

 

Plus: deferred origination costs

 

 

28

 

Less: unearned income

 

 

(103

)

Total lease finance receivables, net

 

$

1,874

 
Summary of Components of Lease Expense

The components of lease expense were as follows:

 

(dollars in millions)

 

For the
Three
Months
Ended
June 30,
2021

 

 

For the Six
Months
Ended
June 30,
2021

 

 

For the
Three
Months
Ended
June 30,
2020

 

 

For the Six
Months
Ended
June 30,
2020

 

Operating lease cost

 

$

7

 

 

$

13

 

 

$

7

 

 

$

14

 

Sublease income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total lease cost

 

$

7

 

 

$

13

 

 

$

7

 

 

$

14

 
Summary of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to the leases for the following periods:

 

(dollars in millions)

 

For the
Three
Months
Ended
June 30,
2021

 

 

For the Six
Months
Ended
June 30,
2021

 

 

For the
Three
Months
Ended
June 30,
2020

 

 

For the Six
Months
Ended
June 30,
2020

 

Cash paid for amounts included in the measurement
   of lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

7

 

 

$

13

 

 

$

7

 

 

$

14

 
Summary of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to the leases for the following periods:

 

(in millions, except lease term and discount rate)

 

June 30,
2021

 

 

December 31,
2020

 

Operating Leases:

 

 

 

 

 

 

Operating lease right-of-use assets

 

 

256

 

 

$

267

 

Operating lease liabilities

 

 

256

 

 

 

267

 

Weighted average remaining lease term

 

16 years

 

 

16 years

 

Weighted average discount rate

 

 

3.07

%

 

 

3.12

%
Summary of Maturities of Lease Liabilities

 

Maturities of lease liabilities:

 

June 30,
2021

 

 

(dollars in millions)

 

 

 

 

2021

 

$

13

 

 

2022

 

 

26

 

 

2023

 

 

26

 

 

2024

 

 

25

 

 

2025

 

 

24

 

 

Thereafter

 

 

218

 

 

Total lease payments

 

 

332

 

 

Less: imputed interest

 

 

(76

)

 

Total present value of lease liabilities

 

$

256