Lease Obligations - Lessee (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Lease Assets and Lease Liabilities

The following table provides a summary of lease assets and lease liabilities as of:

($ in millions)	Condensed Consolidated Balance Sheets Caption	June 30, 2024		December 31, 2023
Assets
Operating lease right-of-use assets	Other assets	$	523	511
Finance lease right-of-use assets	Bank premises and equipment	158		126
Total right-of-use assets(a)		$	681	637
Liabilities
Operating lease liabilities	Accrued taxes, interest and expenses	$	608	601
Finance lease liabilities	Long-term debt	171		134
Total lease liabilities		$	779	735

(a)    Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $316 and $53, respectively, as of June 30, 2024, and $292 and $77, respectively, as of December 31, 2023.

Components of Lease Costs, Weighted-Average Lease Term and Discount Rate

The following table presents the components of lease costs:

($ in millions)	Condensed Consolidated Statements of Income Caption	For the three months ended June 30,			For the six months ended June 30,
		2024		2023	2024	2023
Lease costs:
Amortization of ROU assets	Net occupancy and equipment expense	$	5	5	10	10
Interest on lease liabilities	Interest on long-term debt	2		1	3	2
Total finance lease costs		$	7	6	13	12
Operating lease cost	Net occupancy expense	$	22	22	44	44
Short-term lease cost	Net occupancy expense	—		1	—	1
Variable lease cost	Net occupancy expense	7		7	14	14
Sublease income	Net occupancy expense	(1)		(1)	(1)	(1)
Total operating lease costs		$	28	29	57	58
Total lease costs		$	35	35	70	70

The following table presents the weighted-average remaining lease term and weighted-average discount rate as of:

	June 30, 2024		December 31, 2023
Weighted-average remaining lease term (years):
Operating leases	11.32		11.07
Finance leases	12.78		15.21
Weighted-average discount rate:
Operating leases	3.92	%	3.72
Finance leases	3.79		3.02

The following table presents information related to lease transactions for the six months ended June 30:

($ in millions)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:(a)
Operating cash flows from operating leases	$	47	46
Operating cash flows from finance leases	3		2
Financing cash flows from finance leases	9		8
Gains on sale-leaseback transactions	—		1

(a)    The cash flows related to short-term and variable lease payments are not included in the amounts presented as they were not included in the measurement of lease liabilities.

Undiscounted Cash Flows for Operating Leases

The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2024 through 2029 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities:

As of June 30, 2024 ($ in millions)	Operating Leases		Finance Leases	Total
Remainder of 2024	$	47	12	59
2025	91		23	114
2026	82		22	104
2027	74		21	95
2028	66		21	87
2029	57		11	68
Thereafter	359		104	463
Total undiscounted cash flows	$	776	214	990
Less: Difference between undiscounted cash flows and discounted cash flows	168		43	211
Present value of lease liabilities	$	608	171	779

Undiscounted Cash Flows for Finance Leases

The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2024 through 2029 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities:

As of June 30, 2024 ($ in millions)	Operating Leases		Finance Leases	Total
Remainder of 2024	$	47	12	59
2025	91		23	114
2026	82		22	104
2027	74		21	95
2028	66		21	87
2029	57		11	68
Thereafter	359		104	463
Total undiscounted cash flows	$	776	214	990
Less: Difference between undiscounted cash flows and discounted cash flows	168		43	211
Present value of lease liabilities	$	608	171	779