Bank of America Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Net Investment in Sales-type and Direct Financing Leases

The table below presents the net investment in sales-type and direct financing leases at December 31, 2022 and 2021.



Net Investment (1)


	December 31
(Dollars in millions)	2022		2021
Lease receivables	$	15,123	$	16,806
Unguaranteed residuals	2,143		2,078
Total net investment in sales-type and direct financing leases	$	17,266	$	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 $6.5 billion and $7.1 billion at December 31, 2022 and 2021.

Sales-type Lease, Lease Income

The table below presents lease income for 2022, 2021 and 2020.



Lease Income

(Dollars in millions)	2022		2021		2020
Sales-type and direct financing leases	$	589	$	613	$	707
Operating leases	941		930		931
Total lease income	$	1,530	$	1,543	$	1,638

Operating Lease, Lease Income

The table below presents lease income for 2022, 2021 and 2020.



Lease Income

(Dollars in millions)	2022		2021		2020
Sales-type and direct financing leases	$	589	$	613	$	707
Operating leases	941		930		931
Total lease income	$	1,530	$	1,543	$	1,638

Direct Financing Lease, Lease Income

The table below presents lease income for 2022, 2021 and 2020.



Lease Income

(Dollars in millions)	2022		2021		2020
Sales-type and direct financing leases	$	589	$	613	$	707
Operating leases	941		930		931
Total lease income	$	1,530	$	1,543	$	1,638

Lease, Cost

The following table provides information on the right-of-use assets, lease liabilities and weighted-average discount rates and lease terms at December 31, 2022 and 2021.



Supplemental Information for Lessee Arrangements

	December 31
(Dollars in millions)	2022			2021
Right-of-use asset	$	9,755		$	10,233
Lease liabilities	10,359			10,858
Weighted-average discount rate used to calculate present value of future minimum lease payments	3.25		%	2.91		%
Weighted-average lease term (in years)	8.6			9.0
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	$	824		$	1,713

	2022			2021			2020
Operating cash flows from operating leases (2)	$	1,986		$	1,964		$	2,039

Lease Cost and Supplemental Information:
Operating lease cost	$	2,008		$	2,025		$	2,149
Variable lease cost (3)	464			462			474
Total lease cost (4)	$	2,472		$	2,487		$	2,623

(1)Represents non-cash activity and, accordingly, is not reflected in the Consolidated Statement of Cash Flows.

(2)Represents cash paid for amounts included in the measurements of lease liabilities.

(3)Primarily consists of payments for common area maintenance and property taxes.

(4)Amounts are recorded in occupancy and equipment expense in the Consolidated Statement of Income.

Maturity of Lessor and Lessee Arrangements

The maturities of lessor and lessee arrangements outstanding at December 31, 2022 are presented in the table below based on undiscounted cash flows.



Maturities of Lessor and Lessee Arrangements

	Lessor				Lessee (1)
	Operating Leases		Sales-type and Direct Financing Leases (2)		Operating Leases
(Dollars in millions)	December 31, 2022
2023	$	819	$	4,932	$	1,998
2024	682		4,399		1,850
2025	509		2,539		1,567
2026	368		1,993		1,354
2027	289		990		1,131
Thereafter	664		1,635		4,189
Total undiscounted cash flows	$	3,331	16,488		12,089
Less: Net present value adjustment			1,365		1,730
Total (3)			$	15,123	$	10,359

(1)Excludes $278 million in commitments under lessee arrangements that have not yet commenced with lease terms that will begin in 2023.

(2)Includes $10.2 billion in commercial lease financing receivables and $4.9 billion in direct/indirect consumer lease financing receivables.

(3)Represents lease receivables for lessor arrangements and lease liabilities for lessee arrangements.