Leasing (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Investment in Operating Leases

The following table details our total investment in operating leases.

($ in millions)	March 31, 2020		December 31, 2019
Assets
Operating lease right-of-use assets	$	142	$	168
Finance lease right-of-use assets	48		—
Total lease right-of-use assets (a)	$	190	$	168
Liabilities
Operating lease liabilities	$	170	$	196
Finance lease liabilities	49		—
Total lease liabilities (b)	$	219	$	196

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

(b)

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 March 31, 2020, and that have noncancelable lease terms expiring after March 31, 2020.

($ in millions)
2020	$	38
2021	42
2022	28
2023	18
2024	13
2025 and thereafter	45
Total undiscounted cash flows	184
Difference between undiscounted cash flows and discounted cash flows	(14		)
Total lease liability	$	170

Lease, Cost

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

	Three months ended March 31,
($ in millions)	2020		2019
Operating lease expense	$	13	$	11
Variable lease expense	2		2
Total lease expense, net (a)	$	15	$	13

(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)	March 31, 2020			December 31, 2019
Vehicles	$	10,589		$	10,426
Accumulated depreciation	(1,525		)	(1,562		)
Investment in operating leases, net	$	9,064		$	8,864

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 March 31, 2020.

($ in millions)
2020	$	1,029
2021	1,009
2022	528
2023	153
2024	12
2025 and thereafter	—
Total lease payments from operating leases	$	2,731

Depreciation Expense on Operating Lease Assets

We recognized operating lease revenue of $367 million for the three months ended March 31, 2020, and $361 million for the three months ended March 31, 2019. 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 March 31,
($ in millions)	2020			2019
Depreciation expense on operating lease assets (excluding remarketing gains) (a)	$	250		$	261
Remarketing gains, net	(2		)	(15		)
Net depreciation expense on operating lease assets	$	248		$	246

(a) Includes variable lease payments related to excess mileage and excessive wear and tear on vehicles of $6 million during the three months ended March 31, 2020, and $4 million during the three months ended March 31, 2019.

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 March 31, 2020.

($ in millions)
2020	$	118
2021	150
2022	102
2023	69
2024	40
2025 and thereafter	25
Total undiscounted cash flows	504
Difference between undiscounted cash flows and discounted cash flows	(48		)
Present value of lease payments recorded as lease receivable	$	456