Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.23.3
Leases
 9 Months Ended
Sep. 30, 2023
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 2022 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, 2023 and December 31, 2022.
Net Investment (1)
(Dollars in millions) September 30
2023		 December 31 2022
Lease receivables $ 15,580  $ 15,123 
Unguaranteed residuals 2,291  2,143 
   Total net investment in sales-type and direct
      financing leases		 $ 17,871  $ 17,266 
(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 $6.5 billion at September 30, 2023 and December 31, 2022.
The table below presents lease income for the three and nine months ended September 30, 2023 and 2022.
Lease Income
Three Months Ended
September 30		 Nine Months Ended
September 30
(Dollars in millions) 2023 2022 2023 2022
Sales-type and direct financing leases $ 206  $ 149  $ 559  $ 428 
Operating leases 233  241  705  704 
   Total lease income $ 439  $ 390  $ 1,264  $ 1,132 
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, 2023 and December 31, 2022.
Lessee Arrangements
(Dollars in millions) September 30
2023		 December 31 2022
Right-of-use asset $ 9,187  $ 9,755 
Lease liabilities 9,799  10,359 
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 2022 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, 2023 and December 31, 2022.
Net Investment (1)
(Dollars in millions) September 30
2023		 December 31 2022
Lease receivables $ 15,580  $ 15,123 
Unguaranteed residuals 2,291  2,143 
   Total net investment in sales-type and direct
      financing leases		 $ 17,871  $ 17,266 
(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 $6.5 billion at September 30, 2023 and December 31, 2022.
The table below presents lease income for the three and nine months ended September 30, 2023 and 2022.
Lease Income
Three Months Ended
September 30		 Nine Months Ended
September 30
(Dollars in millions) 2023 2022 2023 2022
Sales-type and direct financing leases $ 206  $ 149  $ 559  $ 428 
Operating leases 233  241  705  704 
   Total lease income $ 439  $ 390  $ 1,264  $ 1,132 
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, 2023 and December 31, 2022.
Lessee Arrangements
(Dollars in millions) September 30
2023		 December 31 2022
Right-of-use asset $ 9,187  $ 9,755 
Lease liabilities 9,799  10,359 
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 2022 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, 2023 and December 31, 2022.
Net Investment (1)
(Dollars in millions) September 30
2023		 December 31 2022
Lease receivables $ 15,580  $ 15,123 
Unguaranteed residuals 2,291  2,143 
   Total net investment in sales-type and direct
      financing leases		 $ 17,871  $ 17,266 
(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 $6.5 billion at September 30, 2023 and December 31, 2022.
The table below presents lease income for the three and nine months ended September 30, 2023 and 2022.
Lease Income
Three Months Ended
September 30		 Nine Months Ended
September 30
(Dollars in millions) 2023 2022 2023 2022
Sales-type and direct financing leases $ 206  $ 149  $ 559  $ 428 
Operating leases 233  241  705  704 
   Total lease income $ 439  $ 390  $ 1,264  $ 1,132 
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, 2023 and December 31, 2022.
Lessee Arrangements
(Dollars in millions) September 30
2023		 December 31 2022
Right-of-use asset $ 9,187  $ 9,755 
Lease liabilities 9,799  10,359 
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 2022 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, 2023 and December 31, 2022.
Net Investment (1)
(Dollars in millions) September 30
2023		 December 31 2022
Lease receivables $ 15,580  $ 15,123 
Unguaranteed residuals 2,291  2,143 
   Total net investment in sales-type and direct
      financing leases		 $ 17,871  $ 17,266 
(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 $6.5 billion at September 30, 2023 and December 31, 2022.
The table below presents lease income for the three and nine months ended September 30, 2023 and 2022.
Lease Income
Three Months Ended
September 30		 Nine Months Ended
September 30
(Dollars in millions) 2023 2022 2023 2022
Sales-type and direct financing leases $ 206  $ 149  $ 559  $ 428 
Operating leases 233  241  705  704 
   Total lease income $ 439  $ 390  $ 1,264  $ 1,132 
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, 2023 and December 31, 2022.
Lessee Arrangements
(Dollars in millions) September 30
2023		 December 31 2022
Right-of-use asset $ 9,187  $ 9,755 
Lease liabilities 9,799  10,359