Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Composition of Total Net Investment in Lease Financing Receivables

The composition of the Company’s total net investment in lease financing receivables included within equipment financing loans in the Consolidated Statements of Condition was as follows:

(in millions)	March 31, 2020		December 31, 2019
Lease payments receivable	$	1,451.7	$	1,417.1
Estimated residual value of leased assets	128.7		128.0
Gross investment in lease financing receivables	1,580.4		1,545.1
Plus: Deferred origination costs	13.0		13.4
Less: Unearned income	(158.5)		(156.9)
Total net investment in lease financing receivables	$	1,434.9	$	1,401.6

Contractual Maturities of Lease Financing Receivables

The contractual maturities of the Company's lease financing receivables were as follows:

(in millions)	March 31, 2020
2020 (1)	$	408.6
2021	448.4
2022	340.8
2023	208.7
2024	117.7
Later years	56.2
Total	$	1,580.4

(1)Contractual maturities for the nine months remaining in 2020.

Lease Income

The following table summarizes People's United's total lease income:

	Three Months Ended March 31,
(in millions)	2020		2019
Lease financing receivables	$	17.6	$	15.5
Operating leases	12.6		12.7
Total lease income	$	30.2	$	28.2

Lease Costs

The following tables provide the components of lease cost and supplemental information:

	Three Months Ended March 31,
(in millions)	2020		2019
Operating lease cost	$	16.7	$	15.3
Variable lease cost	3.1		2.3
Finance lease cost	0.1		—
Sublease income	(0.5)		(0.4)
Net lease cost	$	19.4	$	17.2

Lease Costs

(dollars in millions)	March 31, 2020			December 31, 2019
Lease ROU assets:
Operating leases	$	275.9		$	276.6
Finance leases	2.5			2.6
Lease liabilities:
Operating leases	307.5			307.9
Finance leases	5.2			5.3
Weighted-average discount rate:
Operating leases	3.12		%	3.13		%
Finance leases	2.58			2.58
Weighted-average remaining lease term (in years):
Operating leases	7.8			7.7
Finance leases	11.9			12.2

	Three Months Ended March 31,
(in millions)	2020		2019
Cash payments included in the measurement of lease liabilities:
Reported in operating cash from operating leases	$	17.1	$	15.4
Reported in financing cash from finance leases	0.1		—
ROU assets obtained in exchange for lessee:
Operating lease liabilities (1)	14.3		10.3
Finance lease liabilities (1)	—		—

(1)Excludes related transition adjustment recorded during three months ended March 31, 2019 (see above).

Lease Right-of-use Assets and Liabilities

(dollars in millions)	March 31, 2020			December 31, 2019
Lease ROU assets:
Operating leases	$	275.9		$	276.6
Finance leases	2.5			2.6
Lease liabilities:
Operating leases	307.5			307.9
Finance leases	5.2			5.3
Weighted-average discount rate:
Operating leases	3.12		%	3.13		%
Finance leases	2.58			2.58
Weighted-average remaining lease term (in years):
Operating leases	7.8			7.7
Finance leases	11.9			12.2

	Three Months Ended March 31,
(in millions)	2020		2019
Cash payments included in the measurement of lease liabilities:
Reported in operating cash from operating leases	$	17.1	$	15.4
Reported in financing cash from finance leases	0.1		—
ROU assets obtained in exchange for lessee:
Operating lease liabilities (1)	14.3		10.3
Finance lease liabilities (1)	—		—

(1)Excludes related transition adjustment recorded during three months ended March 31, 2019 (see above).

Schedule of Contractual Maturities of Lease Liabilities

The contractual maturities of the Company's lease liabilities as of March 31, 2020 were as follows:

(in millions)	Operating Leases		Finance Leases
2020 (1)	$	50.4	$	0.4
2021	65.3		0.5
2022	47.7		0.5
2023	36.0		0.5
2024	30.0		0.5
Later years	121.0		3.7
Total lease payments	350.4		6.1
Less: Interest	(42.9)		(0.9)
Total lease liabilities	$	307.5	$	5.2

(1)Contractual maturities for the nine months remaining in 2020.