Leases (Notes)

12 Months Ended

Dec. 31, 2019

LEASES

As a lessee, the Corporation has entered into operating leases for the majority of its real estate locations, primarily retail and office space. Total lease expenses were $81 million, including $64 million of operating lease expense and $19 million of variable lease expense, reported net of $2 million in sublease income, for the year ended December 31, 2019.

At December 31, 2019, the Corporation's Right of Use (ROU) assets and operating lease liabilities were $329 million and $367 million, respectively. The weighted average lease term for the lease liabilities was 9 years, and the weighted average discount rate of remaining payments was 3.78 percent. Lease liabilities from new ROU assets obtained during the year ended December 31, 2019 totaled $49 million. Cash paid on operating lease liabilities was $67 million for the year ended December 31, 2019.

As of December 31, 2019, the contractual maturities of operating lease liabilities were as follows:



(in millions)
Years Ending December 31
2020	$	60
2021	62
2022	53
2023	46
2024	42
Thereafter	175
Total contractual maturities	438
Less imputed interest	(71		)
Total operating lease liabilities	$	367

As a lessor, the Corporation leases certain types of manufacturing and warehouse equipment as well as public and private transportation vehicles to its customers. The Corporation recognized lease-related revenue, primarily interest income from sales-type and direct financing leases of $14 million for the year ended December 31, 2019. At December 31, 2019, the Corporation's net investment in sales-type and direct financing leases was $369 million.

As of December 31, 2019, the contractual maturities of sales-type and direct financing lease receivables were as follows:



(in millions)
Years Ending December 31
2020	$	66
2021	54
2022	90
2023	45
2024	40
Thereafter	31
Total lease payments receivable	326
Unguaranteed residual values	64
Less deferred interest income	(21		)
Total lease receivables (a)	$	369

(a)

Excludes net investment in leveraged leases of $219 million.