Leasing (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Investment in Operating Leases

The following table details our total investment in operating leases.

($ in millions)	June 30, 2020		December 31, 2019
Assets
Operating lease right-of-use assets (a)	$	137	$	168
Liabilities
Operating lease liabilities (b)	$	163	$	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 June 30, 2020, and that have noncancelable lease terms expiring after June 30, 2020.

($ in millions)
2020	$	25
2021	43
2022	30
2023	20
2024	13
2025 and thereafter	46
Total undiscounted cash flows	177
Difference between undiscounted cash flows and discounted cash flows	(14		)
Total lease liability	$	163

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)	2020		2019		2020		2019
Operating lease expense	$	11	$	12	$	24	$	23
Variable lease expense	2		2		4		4
Total lease expense, net (a)	$	13	$	14	$	28	$	27

(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, 2020			December 31, 2019
Vehicles	$	10,656		$	10,426
Accumulated depreciation	(1,568		)	(1,562		)
Investment in operating leases, net	$	9,088		$	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 June 30, 2020.

($ in millions)
2020	$	722
2021	1,114
2022	635
2023	228
2024	26
2025 and thereafter	1
Total lease payments from operating leases	$	2,726

Depreciation Expense on Operating Lease Assets

We recognized operating lease revenue of $343 million and $710 million, and $363 million and $724 million for the three months and six months ended June 30, 2020, and June 30, 2019, 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)	2020		2019			2020		2019
Depreciation expense on operating lease assets (excluding remarketing losses and gains) (a)	$	241	$	262		$	491	$	523
Remarketing losses (gains), net	11		(23		)	9		(38		)
Net depreciation expense on operating lease assets	$	252	$	239		$	500	$	485

(a) Includes variable lease payments related to excess mileage and excessive wear and tear on vehicles of $5 million and $12 million during the three months and six months ended June 30, 2020, respectively, and $5 million and $9 million during the three months and six months ended June 30, 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 June 30, 2020.

($ in millions)
2020	$	75
2021	149
2022	112
2023	78
2024	46
2025 and thereafter	31
Total undiscounted cash flows	491
Difference between undiscounted cash flows and discounted cash flows	(49		)
Present value of lease payments recorded as lease receivable	$	442