Leasing (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Investment in Operating Leases

The following table details our total investment in operating leases.

($ in millions)	December 31, 2019		January 1, 2019 (a)
Assets
Operating lease right-of-use assets (b)	$	168	$	161
Liabilities
Operating lease liabilities (c)	$	196	$	190

(a) Date of adoption.

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

(c)

Included in accrued expenses and other liabilities on our 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 December 31, 2019, and that have noncancelable lease terms expiring after December 31, 2019.

Year ended December 31, ($ in millions)
2020	$	50
2021	43
2022	29
2023	18
2024	14
2025 and thereafter	62
Total undiscounted cash flows	216
Difference between undiscounted cash flows and discounted cash flows	(20		)
Total lease liability	$	196

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 noncancelable 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.

Year ended December 31, ($ in millions)	2019		2018		2017
Operating lease expense	$	45	$	43	$	42
Variable lease expense	8		7		7
Total lease expense, net (a)	$	53	$	50	$	49

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

Schedule of Property Subject to or Available for Operating Lease

The following table details our investment in operating leases.

Year ended December 31, ($ in millions)	2019			2018
Vehicles	$	10,426		$	9,995
Accumulated depreciation	(1,562		)	(1,578		)
Investment in operating leases, net	$	8,864		$	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 noncancelable lease terms expiring after December 31, 2019.

Year ended December 31, ($ in millions)
2020	$	1,339
2021	851
2022	383
2023	86
2024	6
2025 and thereafter	—
Total lease payments from operating leases	$	2,665

Depreciation Expense on Operating Lease Assets

We recognized operating lease revenue of $1.5 billion for both the years ended December 31, 2019, and 2018, and $1.9 billion for the year ended December 31, 2017. 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.

Year ended December 31, ($ in millions)	2019			2018			2017
Depreciation expense on operating lease assets (excluding remarketing gains) (a)	$	1,050		$	1,115		$	1,368
Remarketing gains, net	(69		)	(90		)	(124		)
Net depreciation expense on operating lease assets	$	981		$	1,025		$	1,244

(a) Includes variable lease payments related to excess mileage and excessive wear and tear on vehicles of $19 million during the year ended December 31, 2019, $24 million during the year ended December 31, 2018, and $32 million during the year ended December 31, 2017.

Finance Lease, Liability, Maturity

The following table presents future minimum rental payments we have the right to receive under finance leases with noncancelable lease terms expiring after December 31, 2019.

Year ended December 31, ($ in millions)
2020	$	167
2021	142
2022	94
2023	60
2024	32
2025 and thereafter	19
Total undiscounted cash flows	514
Difference between undiscounted cash flows and discounted cash flows	(55		)
Present value of lease payments recorded as lease receivable	$	459