Recently Issued Accounting Pronouncements (Tables)

6 Months Ended

Jun. 30, 2019

Information Relating to Operating Leases

The following table reflects information relating to our operating leases:



	June 30, 2019
	(Dollars in millions)
Operating Leases (1)
Weighted-average remaining lease term (years)	4.1
Weighted-average discount rate	2.91		%
Right-of-use asset (2)	$	21
Lease liability (3)	$	21


(1)	For the three and six months ended June 30, 2019, the lease expense on operating leases was $3 million and $6 million, respectively, which includes a de-minimis amount of short-term lease expense and variable lease expense.


(2)	Recorded in premises and equipment on the Consolidated Statements of Financial Condition


(3)	Recorded in other liabilities on the Consolidated Statements of Financial Condition.

Undiscounted Cash Flows on Operating Leases

The following table presents our undiscounted cash flows on our operating lease liabilities as of June 30, 2019 and our minimum contractual obligations on our operating leases as of December 31, 2018:



	June 30, 2019		December 31, 2018
	(Dollars in millions)
Within one year	$	8	$	9
After one year and within two years	6		6
After two years and within three years	4		4
After three years and within four years	3		2
After four years and within five years	1		1
After five years	2		3
Total (1)	$	24	$	25

(1)

The difference between the total undiscounted cash payments on operating leases and the lease liability is solely the effect of discounting.

Accounting Standards Adopted and Accounting Standards Issued and Note Expected to Have a Material Impact

We adopted the following accounting standard updates (ASU) during 2019, none of which had a material impact to our financial statements:



Standard	Description	Effective Date
ASU 2019-01	Leases (Topic 842): Codification Improvements	January 1, 2019
ASU 2018-20	Leases (Topic 842): Narrow-Scope Improvements for Lessors	January 1, 2019
ASU 2018-16	Derivatives and hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes	January 1, 2019
ASU 2018-11	Leases (Topic 842): Targeted Improvements	January 1, 2019
ASU 2018-10	Codification Improvements to Topic 842, Leases	January 1, 2019
ASU 2018-07	Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting	January 1, 2019
ASU 2017-11	Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope.	January 1, 2019
ASU 2017-08	Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities	January 1, 2019
ASU 2017-06	Plan Accounting - Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting	January 1, 2019

The following ASUs have been issued and are not expected to have a material impact on our Consolidated Financial Statements and/or significant accounting policies:



Standard	Description	Effective Date
ASU 2019-05	Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief	January 1, 2020
ASU 2019-04	Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments	January 1, 2020
ASU 2018-19	Codification Improvements to Topic 326, Financial Instruments—Credit Losses	January 1, 2020
ASU 2018-18	Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606	January 1, 2020
ASU 2018-17	Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities	January 1, 2020
ASU 2018-15	Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)	January 1, 2020
ASU 2017-04	Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment	January 1, 2020