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Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases
NOTE 6 Leases
The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of automobiles, while commercial leases may include high
dollar assets such as aircraft or lower cost items such as office equipment.
The components of the net investment in sales-type and direct financing leases, at December 31, were as follows:
(Dollars in Millions)20242023
Lease receivables$7,328 $7,239 
Unguaranteed residual values accruing to the lessor’s benefit911 1,082 
Total net investment in sales-type and direct financing leases$8,239 $8,321 
The Company, as a lessor, recorded $775 million, $738 million and $764 million of revenue on its Consolidated Statement of Income for the years ended December 31,
2024, 2023 and 2022, respectively, primarily consisting of interest income on sales-type and direct financing leases.
The contractual future lease payments to be received by the Company, at December 31, 2024, were as follows:
(Dollars in Millions)Sales-type and Direct Financing Leases Operating Leases
2025$2,758 $143 
20262,142 104 
20271,804 77 
2028865 52 
2029269 32 
Thereafter335 54 
Total lease payments8,173 $462 
Amounts representing interest(845)
Lease receivables$7,328 
The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2024, the Company’s ROU assets included in premises and equipment and lease liabilities included in long-term debt and other liabilities, were $1.4 billion and $1.5 billion,
respectively, compared with $1.4 billion of ROU assets and $1.6 billion of lease liabilities at December 31, 2023, respectively.
Total costs incurred by the Company, as a lessee, were $529 million, $496 million and $390 million for the years ended December 31, 2024, 2023 and 2022, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company.
The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31:
(Dollars in Millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$389 $409 $294 
Operating cash flows from finance leases7 7 4 
Financing cash flows from finance leases62 49 14 
Right of use assets obtained in exchange for new operating lease liabilities268 230 239 
Right of use assets obtained in exchange for new finance lease liabilities59 25 91 
The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31:
 20242023
Weighted-average remaining lease term of operating leases (in years)6.76.4
Weighted-average remaining lease term of finance leases (in years)8.18.3
Weighted-average discount rate of operating leases4.0 %3.7 %
Weighted-average discount rate of finance leases7.3 %7.7 %
The contractual future lease obligations of the Company at December 31, 2024, were as follows:
(Dollars in Millions)Operating Leases Finance
Leases
2025$324 $38 
2026291 37 
2027248 34 
2028195 26 
2029147 8 
Thereafter382 24 
Total lease payments1,587 167 
Amounts representing interest(218)(18)
Lease liabilities$1,369 $149 
Leases
NOTE 6 Leases
The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of automobiles, while commercial leases may include high
dollar assets such as aircraft or lower cost items such as office equipment.
The components of the net investment in sales-type and direct financing leases, at December 31, were as follows:
(Dollars in Millions)20242023
Lease receivables$7,328 $7,239 
Unguaranteed residual values accruing to the lessor’s benefit911 1,082 
Total net investment in sales-type and direct financing leases$8,239 $8,321 
The Company, as a lessor, recorded $775 million, $738 million and $764 million of revenue on its Consolidated Statement of Income for the years ended December 31,
2024, 2023 and 2022, respectively, primarily consisting of interest income on sales-type and direct financing leases.
The contractual future lease payments to be received by the Company, at December 31, 2024, were as follows:
(Dollars in Millions)Sales-type and Direct Financing Leases Operating Leases
2025$2,758 $143 
20262,142 104 
20271,804 77 
2028865 52 
2029269 32 
Thereafter335 54 
Total lease payments8,173 $462 
Amounts representing interest(845)
Lease receivables$7,328 
The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2024, the Company’s ROU assets included in premises and equipment and lease liabilities included in long-term debt and other liabilities, were $1.4 billion and $1.5 billion,
respectively, compared with $1.4 billion of ROU assets and $1.6 billion of lease liabilities at December 31, 2023, respectively.
Total costs incurred by the Company, as a lessee, were $529 million, $496 million and $390 million for the years ended December 31, 2024, 2023 and 2022, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company.
The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31:
(Dollars in Millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$389 $409 $294 
Operating cash flows from finance leases7 7 4 
Financing cash flows from finance leases62 49 14 
Right of use assets obtained in exchange for new operating lease liabilities268 230 239 
Right of use assets obtained in exchange for new finance lease liabilities59 25 91 
The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31:
 20242023
Weighted-average remaining lease term of operating leases (in years)6.76.4
Weighted-average remaining lease term of finance leases (in years)8.18.3
Weighted-average discount rate of operating leases4.0 %3.7 %
Weighted-average discount rate of finance leases7.3 %7.7 %
The contractual future lease obligations of the Company at December 31, 2024, were as follows:
(Dollars in Millions)Operating Leases Finance
Leases
2025$324 $38 
2026291 37 
2027248 34 
2028195 26 
2029147 8 
Thereafter382 24 
Total lease payments1,587 167 
Amounts representing interest(218)(18)
Lease liabilities$1,369 $149 
Leases
NOTE 6 Leases
The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of automobiles, while commercial leases may include high
dollar assets such as aircraft or lower cost items such as office equipment.
The components of the net investment in sales-type and direct financing leases, at December 31, were as follows:
(Dollars in Millions)20242023
Lease receivables$7,328 $7,239 
Unguaranteed residual values accruing to the lessor’s benefit911 1,082 
Total net investment in sales-type and direct financing leases$8,239 $8,321 
The Company, as a lessor, recorded $775 million, $738 million and $764 million of revenue on its Consolidated Statement of Income for the years ended December 31,
2024, 2023 and 2022, respectively, primarily consisting of interest income on sales-type and direct financing leases.
The contractual future lease payments to be received by the Company, at December 31, 2024, were as follows:
(Dollars in Millions)Sales-type and Direct Financing Leases Operating Leases
2025$2,758 $143 
20262,142 104 
20271,804 77 
2028865 52 
2029269 32 
Thereafter335 54 
Total lease payments8,173 $462 
Amounts representing interest(845)
Lease receivables$7,328 
The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2024, the Company’s ROU assets included in premises and equipment and lease liabilities included in long-term debt and other liabilities, were $1.4 billion and $1.5 billion,
respectively, compared with $1.4 billion of ROU assets and $1.6 billion of lease liabilities at December 31, 2023, respectively.
Total costs incurred by the Company, as a lessee, were $529 million, $496 million and $390 million for the years ended December 31, 2024, 2023 and 2022, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company.
The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31:
(Dollars in Millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$389 $409 $294 
Operating cash flows from finance leases7 7 4 
Financing cash flows from finance leases62 49 14 
Right of use assets obtained in exchange for new operating lease liabilities268 230 239 
Right of use assets obtained in exchange for new finance lease liabilities59 25 91 
The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31:
 20242023
Weighted-average remaining lease term of operating leases (in years)6.76.4
Weighted-average remaining lease term of finance leases (in years)8.18.3
Weighted-average discount rate of operating leases4.0 %3.7 %
Weighted-average discount rate of finance leases7.3 %7.7 %
The contractual future lease obligations of the Company at December 31, 2024, were as follows:
(Dollars in Millions)Operating Leases Finance
Leases
2025$324 $38 
2026291 37 
2027248 34 
2028195 26 
2029147 8 
Thereafter382 24 
Total lease payments1,587 167 
Amounts representing interest(218)(18)
Lease liabilities$1,369 $149 
Leases
NOTE 6 Leases
The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of automobiles, while commercial leases may include high
dollar assets such as aircraft or lower cost items such as office equipment.
The components of the net investment in sales-type and direct financing leases, at December 31, were as follows:
(Dollars in Millions)20242023
Lease receivables$7,328 $7,239 
Unguaranteed residual values accruing to the lessor’s benefit911 1,082 
Total net investment in sales-type and direct financing leases$8,239 $8,321 
The Company, as a lessor, recorded $775 million, $738 million and $764 million of revenue on its Consolidated Statement of Income for the years ended December 31,
2024, 2023 and 2022, respectively, primarily consisting of interest income on sales-type and direct financing leases.
The contractual future lease payments to be received by the Company, at December 31, 2024, were as follows:
(Dollars in Millions)Sales-type and Direct Financing Leases Operating Leases
2025$2,758 $143 
20262,142 104 
20271,804 77 
2028865 52 
2029269 32 
Thereafter335 54 
Total lease payments8,173 $462 
Amounts representing interest(845)
Lease receivables$7,328 
The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2024, the Company’s ROU assets included in premises and equipment and lease liabilities included in long-term debt and other liabilities, were $1.4 billion and $1.5 billion,
respectively, compared with $1.4 billion of ROU assets and $1.6 billion of lease liabilities at December 31, 2023, respectively.
Total costs incurred by the Company, as a lessee, were $529 million, $496 million and $390 million for the years ended December 31, 2024, 2023 and 2022, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company.
The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31:
(Dollars in Millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$389 $409 $294 
Operating cash flows from finance leases7 7 4 
Financing cash flows from finance leases62 49 14 
Right of use assets obtained in exchange for new operating lease liabilities268 230 239 
Right of use assets obtained in exchange for new finance lease liabilities59 25 91 
The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31:
 20242023
Weighted-average remaining lease term of operating leases (in years)6.76.4
Weighted-average remaining lease term of finance leases (in years)8.18.3
Weighted-average discount rate of operating leases4.0 %3.7 %
Weighted-average discount rate of finance leases7.3 %7.7 %
The contractual future lease obligations of the Company at December 31, 2024, were as follows:
(Dollars in Millions)Operating Leases Finance
Leases
2025$324 $38 
2026291 37 
2027248 34 
2028195 26 
2029147 8 
Thereafter382 24 
Total lease payments1,587 167 
Amounts representing interest(218)(18)
Lease liabilities$1,369 $149 
Leases
NOTE 6 Leases
The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of automobiles, while commercial leases may include high
dollar assets such as aircraft or lower cost items such as office equipment.
The components of the net investment in sales-type and direct financing leases, at December 31, were as follows:
(Dollars in Millions)20242023
Lease receivables$7,328 $7,239 
Unguaranteed residual values accruing to the lessor’s benefit911 1,082 
Total net investment in sales-type and direct financing leases$8,239 $8,321 
The Company, as a lessor, recorded $775 million, $738 million and $764 million of revenue on its Consolidated Statement of Income for the years ended December 31,
2024, 2023 and 2022, respectively, primarily consisting of interest income on sales-type and direct financing leases.
The contractual future lease payments to be received by the Company, at December 31, 2024, were as follows:
(Dollars in Millions)Sales-type and Direct Financing Leases Operating Leases
2025$2,758 $143 
20262,142 104 
20271,804 77 
2028865 52 
2029269 32 
Thereafter335 54 
Total lease payments8,173 $462 
Amounts representing interest(845)
Lease receivables$7,328 
The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2024, the Company’s ROU assets included in premises and equipment and lease liabilities included in long-term debt and other liabilities, were $1.4 billion and $1.5 billion,
respectively, compared with $1.4 billion of ROU assets and $1.6 billion of lease liabilities at December 31, 2023, respectively.
Total costs incurred by the Company, as a lessee, were $529 million, $496 million and $390 million for the years ended December 31, 2024, 2023 and 2022, respectively, and principally related to contractual lease payments on operating leases. The Company’s leases do not impose significant covenants or other restrictions on the Company.
The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended December 31:
(Dollars in Millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$389 $409 $294 
Operating cash flows from finance leases7 7 4 
Financing cash flows from finance leases62 49 14 
Right of use assets obtained in exchange for new operating lease liabilities268 230 239 
Right of use assets obtained in exchange for new finance lease liabilities59 25 91 
The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for use in its operations at December 31:
 20242023
Weighted-average remaining lease term of operating leases (in years)6.76.4
Weighted-average remaining lease term of finance leases (in years)8.18.3
Weighted-average discount rate of operating leases4.0 %3.7 %
Weighted-average discount rate of finance leases7.3 %7.7 %
The contractual future lease obligations of the Company at December 31, 2024, were as follows:
(Dollars in Millions)Operating Leases Finance
Leases
2025$324 $38 
2026291 37 
2027248 34 
2028195 26 
2029147 8 
Thereafter382 24 
Total lease payments1,587 167 
Amounts representing interest(218)(18)
Lease liabilities$1,369 $149