Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

LEASES

LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At December 31, 2023, we had 407 branches, of which 278 are owned and 129 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2024 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding ROU asset. We include ROU assets for operating leases and finance leases in “Other assets” and “Premises, equipment and software, net” on the consolidated balance sheet, respectively. The corresponding liabilities for those leases are included in “Other liabilities” and “Long-term debt.”

ROU assets and related lease liabilities reflect the present value of the future minimum lease payments over the lease term at commencement date. Because most of our leases do not provide an implicit rate, we use our secured incremental borrowing rate that is commensurate with the lease term when calculating the present value of future payments. The ROU asset also reflects any lease prepayments, initial direct costs, amortization, and certain nonlease components, such as maintenance, utilities, or tax payments. Our lease terms incorporate options to extend or terminate the lease when it is reasonably certain that we will exercise these options.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

	December 31,
(Dollar amounts in millions)	2023			2022
Operating leases
ROU assets, net of amortization	$	172		$	173
Lease liabilities	198			198
Finance leases
ROU assets, net of amortization	3			4
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.7			8.4
Finance leases	16.5			17.4
Weighted average discount rate
Operating leases	3.4		%	2.9		%
Finance leases	3.1		%	3.1		%

The following schedule presents additional information related to lease expense:

	Year Ended December 31,
(In millions)	2023		2022		2021
Lease expense:
Operating lease expense	$	43	$	46	$	47
Other expenses associated with operating leases 1	60		51		50
Total lease expense	$	103	$	97	$	97
Related cash disbursements for operating leases	$	49	$	50	$	50

1 Other expenses primarily include property taxes and building and property maintenance.

The following schedule presents the total contractual undiscounted lease payments for operating lease liabilities by expected due date for each of the next five years:

(In millions)	Total undiscounted lease payments
2024	$	43
2025	36
2026	31
2027	22
2028	17
Thereafter	85
Total lease payments	$	234
Less imputed interest	36
Total	$	198

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income totaled $14 million during both 2023 and 2022, and $13 million during 2021.

We originated equipment leases, considered to be sales-type leases or direct-financing leases, totaling $383 million and $386 million at December 31, 2023 and 2022, respectively. We recorded income of $16 million, $12 million, and $11 million on these leases during 2023, 2022, and 2021, respectively.

LEASES

LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At December 31, 2023, we had 407 branches, of which 278 are owned and 129 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2024 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding ROU asset. We include ROU assets for operating leases and finance leases in “Other assets” and “Premises, equipment and software, net” on the consolidated balance sheet, respectively. The corresponding liabilities for those leases are included in “Other liabilities” and “Long-term debt.”

ROU assets and related lease liabilities reflect the present value of the future minimum lease payments over the lease term at commencement date. Because most of our leases do not provide an implicit rate, we use our secured incremental borrowing rate that is commensurate with the lease term when calculating the present value of future payments. The ROU asset also reflects any lease prepayments, initial direct costs, amortization, and certain nonlease components, such as maintenance, utilities, or tax payments. Our lease terms incorporate options to extend or terminate the lease when it is reasonably certain that we will exercise these options.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

	December 31,
(Dollar amounts in millions)	2023			2022
Operating leases
ROU assets, net of amortization	$	172		$	173
Lease liabilities	198			198
Finance leases
ROU assets, net of amortization	3			4
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.7			8.4
Finance leases	16.5			17.4
Weighted average discount rate
Operating leases	3.4		%	2.9		%
Finance leases	3.1		%	3.1		%

The following schedule presents additional information related to lease expense:

	Year Ended December 31,
(In millions)	2023		2022		2021
Lease expense:
Operating lease expense	$	43	$	46	$	47
Other expenses associated with operating leases 1	60		51		50
Total lease expense	$	103	$	97	$	97
Related cash disbursements for operating leases	$	49	$	50	$	50

1 Other expenses primarily include property taxes and building and property maintenance.

The following schedule presents the total contractual undiscounted lease payments for operating lease liabilities by expected due date for each of the next five years:

(In millions)	Total undiscounted lease payments
2024	$	43
2025	36
2026	31
2027	22
2028	17
Thereafter	85
Total lease payments	$	234
Less imputed interest	36
Total	$	198

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income totaled $14 million during both 2023 and 2022, and $13 million during 2021.

We originated equipment leases, considered to be sales-type leases or direct-financing leases, totaling $383 million and $386 million at December 31, 2023 and 2022, respectively. We recorded income of $16 million, $12 million, and $11 million on these leases during 2023, 2022, and 2021, respectively.

LEASES

LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At December 31, 2023, we had 407 branches, of which 278 are owned and 129 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2024 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding ROU asset. We include ROU assets for operating leases and finance leases in “Other assets” and “Premises, equipment and software, net” on the consolidated balance sheet, respectively. The corresponding liabilities for those leases are included in “Other liabilities” and “Long-term debt.”

ROU assets and related lease liabilities reflect the present value of the future minimum lease payments over the lease term at commencement date. Because most of our leases do not provide an implicit rate, we use our secured incremental borrowing rate that is commensurate with the lease term when calculating the present value of future payments. The ROU asset also reflects any lease prepayments, initial direct costs, amortization, and certain nonlease components, such as maintenance, utilities, or tax payments. Our lease terms incorporate options to extend or terminate the lease when it is reasonably certain that we will exercise these options.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

	December 31,
(Dollar amounts in millions)	2023			2022
Operating leases
ROU assets, net of amortization	$	172		$	173
Lease liabilities	198			198
Finance leases
ROU assets, net of amortization	3			4
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.7			8.4
Finance leases	16.5			17.4
Weighted average discount rate
Operating leases	3.4		%	2.9		%
Finance leases	3.1		%	3.1		%

The following schedule presents additional information related to lease expense:

	Year Ended December 31,
(In millions)	2023		2022		2021
Lease expense:
Operating lease expense	$	43	$	46	$	47
Other expenses associated with operating leases 1	60		51		50
Total lease expense	$	103	$	97	$	97
Related cash disbursements for operating leases	$	49	$	50	$	50

1 Other expenses primarily include property taxes and building and property maintenance.

The following schedule presents the total contractual undiscounted lease payments for operating lease liabilities by expected due date for each of the next five years:

(In millions)	Total undiscounted lease payments
2024	$	43
2025	36
2026	31
2027	22
2028	17
Thereafter	85
Total lease payments	$	234
Less imputed interest	36
Total	$	198

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income totaled $14 million during both 2023 and 2022, and $13 million during 2021.

We originated equipment leases, considered to be sales-type leases or direct-financing leases, totaling $383 million and $386 million at December 31, 2023 and 2022, respectively. We recorded income of $16 million, $12 million, and $11 million on these leases during 2023, 2022, and 2021, respectively.