Leasing (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Investment in Operating Leases

The following table details our total investment in operating leases.

($ in millions)	June 30, 2019		January 1, 2019 (a)
Assets
Operating lease right-of-use assets (b)	$	172	$	161
Liabilities
Operating lease liabilities (c)	$	200	$	190

(a) Date of adoption.

(b) Included in other assets on our Condensed Consolidated Balance Sheet.

(c)

Included in accrued expenses and other liabilities on our Condensed Consolidated Balance Sheet.

Lessee, Operating Lease, Liability, Maturity

The following table presents future minimum rental payments we are required to make under operating leases that have commenced as of June 30, 2019, and that have noncancellable lease terms expiring after June 30, 2019.

($ in millions)
2019	$	25
2020	48
2021	37
2022	25
2023	16
2024 and thereafter	71
Total undiscounted cash flows	222
Difference between undiscounted cash flows and discounted cash flows	(22		)
Total lease liability	$	200

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum rental payments required under operating leases as of December 31, 2018, prior to the date of adoption and as defined by the previous lease accounting guidance, with noncancellable lease terms expiring after December 31, 2018, were as follows.

Year ended December 31, ($ in millions)
2019	$	48
2020	47
2021	46
2022	37
2023	31
2024 and thereafter	294
Total minimum payments required	$	503

Lease, Cost

The following table details the components of total net operating lease expense.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2019		2018		2019		2018
Operating lease expense	$	12	$	11	$	23	$	21
Variable lease expense	2		1		4		3
Total lease expense, net (a)	$	14	$	12	$	27	$	24

(a) Included in other operating expenses in our Condensed Consolidated Statement of Comprehensive Income

Schedule of Property Subject to or Available for Operating Lease

The following table details our investment in operating leases.

($ in millions)	June 30, 2019			December 31, 2018
Vehicles	$	9,961		$	9,995
Accumulated depreciation	(1,554		)	(1,578		)
Investment in operating leases, net	$	8,407		$	8,417

Lessor, Operating Lease, Payments to be Received, Maturity

The following table presents future minimum rental payments we have the right to receive under operating leases with noncancellable lease terms expiring after June 30, 2019.

($ in millions)
2019	$	726
2020	1,062
2021	536
2022	129
2023	16
2024 and thereafter	1
Total lease payments from operating leases	$	2,470

Depreciation Expense on Operating Lease Assets

We recognized $363 million and $724 million, and $374 million and $756 million in operating lease revenue for the three months and six months ended June 30, 2019, and June 30, 2018, respectively. Depreciation expense on operating lease assets includes remarketing gains and losses recognized on the sale of operating lease assets. The following table summarizes the components of depreciation expense on operating lease assets.

	Three months ended June 30,						Six months ended June 30,
($ in millions)	2019			2018			2019			2018
Depreciation expense on operating lease assets (excluding remarketing gains) (a)	$	262		$	281		$	523		$	572
Remarketing gains, net	(23		)	(16		)	(38		)	(34		)
Net depreciation expense on operating lease assets	$	239		$	265		$	485		$	538

(a) Includes variable lease payments related to excess mileage and excessive wear and tear on vehicles $5 million and $9 million during the three and six months ended June 30, 2019, respectively, and $6 million and $13 million during the three and six months ended June 30, 2018.

Finance Lease, Liability, Maturity

The following table presents future minimum rental payments we have the right to receive under finance leases with noncancellable lease terms expiring after June 30, 2019.

($ in millions)
2019	$	82
2020	157
2021	142
2022	79
2023	46
2024 and thereafter	32
Total undiscounted cash flows	538
Difference between undiscounted cash flows and discounted cash flows	(60		)
Present value of lease payments recorded as lease receivable	$	478