Leasing (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Investment in Operating Leases

The following table details our total investment in operating leases.

($ in millions)	September 30, 2019		January 1, 2019 (a)
Assets
Operating lease right-of-use assets (b)	$	168	$	161
Liabilities
Operating lease liabilities (c)	$	195	$	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 September 30, 2019, and that have noncancellable lease terms expiring after September 30, 2019.

($ in millions)
2019	$	12
2020	49
2021	38
2022	26
2023	17
2024 and thereafter	75
Total undiscounted cash flows	217
Difference between undiscounted cash flows and discounted cash flows	(22		)
Total lease liability	$	195

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 September 30,				Nine months ended September 30,
($ in millions)	2019		2018		2019		2018
Operating lease expense	$	11	$	11	$	34	$	32
Variable lease expense	2		2		6		5
Total lease expense, net (a)	$	13	$	13	$	40	$	37

(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)	September 30, 2019			December 31, 2018
Vehicles	$	10,197		$	9,995
Accumulated depreciation	(1,544		)	(1,578		)
Investment in operating leases, net	$	8,653		$	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 September 30, 2019.

($ in millions)
2019	$	387
2020	1,211
2021	696
2022	251
2023	44
2024 and thereafter	3
Total lease payments from operating leases	$	2,592

Depreciation Expense on Operating Lease Assets

We recognized $368 million and $1.1 billion in operating lease revenue for both the three months and nine months ended September 30, 2019, and 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 September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Depreciation expense on operating lease assets (excluding remarketing gains) (a)	$	262		$	274		$	785		$	846
Remarketing gains, net	(28		)	(27		)	(66		)	(61		)
Net depreciation expense on operating lease assets	$	234		$	247		$	719		$	785

(a) Includes variable lease payments related to excess mileage and excessive wear and tear on vehicles of $5 million and $14 million during the three months and nine months ended September 30, 2019, respectively, and $6 million and $19 million during the three months and nine months ended September 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 September 30, 2019.

($ in millions)
2019	$	43
2020	168
2021	144
2022	87
2023	53
2024 and thereafter	41
Total undiscounted cash flows	536
Difference between undiscounted cash flows and discounted cash flows	(55		)
Present value of lease payments recorded as lease receivable	$	481