Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2.2
Leases
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases Leases
The Corporation enters into both lessor and lessee arrangements. For more information on lease accounting, see Note 1 – Summary of Significant Accounting Principles and Note 8 – Leases to the Consolidated Financial Statements of the Corporation’s 2021 Annual Report on Form 10-K. For more information on lease financing receivables, see Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses.
Lessor Arrangements
The Corporation’s lessor arrangements primarily consist of operating, sales-type and direct financing 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 table below presents the net investment in sales-type and direct financing leases at September 30, 2022 and December 31, 2021.
Net Investment (1)
(Dollars in millions) September 30
2022		 December 31
2021
Lease receivables $ 14,937  $ 16,806 
Unguaranteed residuals 1,793  2,078 
   Total net investment in sales-type and direct
      financing leases		 $ 16,730  $ 18,884 
(1)In certain cases, the Corporation obtains third-party residual value insurance to reduce its residual asset risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $6.6 billion and $7.1 billion at September 30, 2022 and December 31, 2021.
The table below presents lease income for the three and nine months ended September 30, 2022 and 2021.
Lease Income
Three Months Ended September 30 Nine Months Ended September 30
(Dollars in millions) 2022 2021 2022 2021
Sales-type and direct
   financing leases		 $ 149  $ 152  $ 428  $ 468 
Operating leases 241  235  704  689 
   Total lease income $ 390  $ 387  $ 1,132  $ 1,157 
Lessee Arrangements
The Corporation's lessee arrangements predominantly consist of operating leases for premises and equipment; the Corporation's financing leases are not significant.
The table below provides information on the right-of-use assets and lease liabilities at September 30, 2022 and December 31, 2021.
Lessee Arrangements
(Dollars in millions) September 30
2022		 December 31
2021
Right-of-use asset $ 9,743  $ 10,233 
Lease liabilities 10,310  10,858 
Leases Leases
The Corporation enters into both lessor and lessee arrangements. For more information on lease accounting, see Note 1 – Summary of Significant Accounting Principles and Note 8 – Leases to the Consolidated Financial Statements of the Corporation’s 2021 Annual Report on Form 10-K. For more information on lease financing receivables, see Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses.
Lessor Arrangements
The Corporation’s lessor arrangements primarily consist of operating, sales-type and direct financing 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 table below presents the net investment in sales-type and direct financing leases at September 30, 2022 and December 31, 2021.
Net Investment (1)
(Dollars in millions) September 30
2022		 December 31
2021
Lease receivables $ 14,937  $ 16,806 
Unguaranteed residuals 1,793  2,078 
   Total net investment in sales-type and direct
      financing leases		 $ 16,730  $ 18,884 
(1)In certain cases, the Corporation obtains third-party residual value insurance to reduce its residual asset risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $6.6 billion and $7.1 billion at September 30, 2022 and December 31, 2021.
The table below presents lease income for the three and nine months ended September 30, 2022 and 2021.
Lease Income
Three Months Ended September 30 Nine Months Ended September 30
(Dollars in millions) 2022 2021 2022 2021
Sales-type and direct
   financing leases		 $ 149  $ 152  $ 428  $ 468 
Operating leases 241  235  704  689 
   Total lease income $ 390  $ 387  $ 1,132  $ 1,157 
Lessee Arrangements
The Corporation's lessee arrangements predominantly consist of operating leases for premises and equipment; the Corporation's financing leases are not significant.
The table below provides information on the right-of-use assets and lease liabilities at September 30, 2022 and December 31, 2021.
Lessee Arrangements
(Dollars in millions) September 30
2022		 December 31
2021
Right-of-use asset $ 9,743  $ 10,233 
Lease liabilities 10,310  10,858 
Leases Leases
The Corporation enters into both lessor and lessee arrangements. For more information on lease accounting, see Note 1 – Summary of Significant Accounting Principles and Note 8 – Leases to the Consolidated Financial Statements of the Corporation’s 2021 Annual Report on Form 10-K. For more information on lease financing receivables, see Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses.
Lessor Arrangements
The Corporation’s lessor arrangements primarily consist of operating, sales-type and direct financing 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 table below presents the net investment in sales-type and direct financing leases at September 30, 2022 and December 31, 2021.
Net Investment (1)
(Dollars in millions) September 30
2022		 December 31
2021
Lease receivables $ 14,937  $ 16,806 
Unguaranteed residuals 1,793  2,078 
   Total net investment in sales-type and direct
      financing leases		 $ 16,730  $ 18,884 
(1)In certain cases, the Corporation obtains third-party residual value insurance to reduce its residual asset risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $6.6 billion and $7.1 billion at September 30, 2022 and December 31, 2021.
The table below presents lease income for the three and nine months ended September 30, 2022 and 2021.
Lease Income
Three Months Ended September 30 Nine Months Ended September 30
(Dollars in millions) 2022 2021 2022 2021
Sales-type and direct
   financing leases		 $ 149  $ 152  $ 428  $ 468 
Operating leases 241  235  704  689 
   Total lease income $ 390  $ 387  $ 1,132  $ 1,157 
Lessee Arrangements
The Corporation's lessee arrangements predominantly consist of operating leases for premises and equipment; the Corporation's financing leases are not significant.
The table below provides information on the right-of-use assets and lease liabilities at September 30, 2022 and December 31, 2021.
Lessee Arrangements
(Dollars in millions) September 30
2022		 December 31
2021
Right-of-use asset $ 9,743  $ 10,233 
Lease liabilities 10,310  10,858 
Leases Leases
The Corporation enters into both lessor and lessee arrangements. For more information on lease accounting, see Note 1 – Summary of Significant Accounting Principles and Note 8 – Leases to the Consolidated Financial Statements of the Corporation’s 2021 Annual Report on Form 10-K. For more information on lease financing receivables, see Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses.
Lessor Arrangements
The Corporation’s lessor arrangements primarily consist of operating, sales-type and direct financing 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 table below presents the net investment in sales-type and direct financing leases at September 30, 2022 and December 31, 2021.
Net Investment (1)
(Dollars in millions) September 30
2022		 December 31
2021
Lease receivables $ 14,937  $ 16,806 
Unguaranteed residuals 1,793  2,078 
   Total net investment in sales-type and direct
      financing leases		 $ 16,730  $ 18,884 
(1)In certain cases, the Corporation obtains third-party residual value insurance to reduce its residual asset risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $6.6 billion and $7.1 billion at September 30, 2022 and December 31, 2021.
The table below presents lease income for the three and nine months ended September 30, 2022 and 2021.
Lease Income
Three Months Ended September 30 Nine Months Ended September 30
(Dollars in millions) 2022 2021 2022 2021
Sales-type and direct
   financing leases		 $ 149  $ 152  $ 428  $ 468 
Operating leases 241  235  704  689 
   Total lease income $ 390  $ 387  $ 1,132  $ 1,157 
Lessee Arrangements
The Corporation's lessee arrangements predominantly consist of operating leases for premises and equipment; the Corporation's financing leases are not significant.
The table below provides information on the right-of-use assets and lease liabilities at September 30, 2022 and December 31, 2021.
Lessee Arrangements
(Dollars in millions) September 30
2022		 December 31
2021
Right-of-use asset $ 9,743  $ 10,233 
Lease liabilities 10,310  10,858