Leasing (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Investment in Operating Leases

The following table details our total investment in operating leases.

($ in millions)	September 30, 2020		December 31, 2019
Assets
Operating lease right-of-use assets (a)	$	140	$	168
Liabilities
Operating lease liabilities (b)	$	166	$	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 September 30, 2020, and that have noncancelable lease terms expiring after September 30, 2020.

($ in millions)
2020	$	12
2021	45
2022	33
2023	23
2024	16
2025 and thereafter	50
Total undiscounted cash flows	179
Difference between undiscounted cash flows and discounted cash flows	(13)
Total lease liability	$	166

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)	2020		2019		2020		2019
Operating lease expense	$	11	$	11	$	35	$	34
Variable lease expense	2		2		6		6
Total lease expense, net (a)	$	13	$	13	$	41	$	40

(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, 2020		December 31, 2019
Vehicles	$	11,015	$	10,426
Accumulated depreciation	(1,561)		(1,562)
Investment in operating leases, net	$	9,454	$	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 September 30, 2020.

($ in millions)
2020	$	395
2021	1,277
2022	807
2023	365
2024	58
2025 and thereafter	4
Total lease payments from operating leases	$	2,906

Depreciation Expense on Operating Lease Assets

We recognized operating lease revenue of $360 million and $1.1 billion and $368 million and $1.1 billion for the three months and nine months ended September 30, 2020, and 2019, respectively. Depreciation expense on operating lease assets includes remarketing gains 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)	2020		2019		2020		2019
Depreciation expense on operating lease assets (excluding remarketing gains) (a)	$	246	$	262	$	737	$	785
Remarketing gains, net	(71)		(28)		(62)		(66)
Net depreciation expense on operating lease assets	$	175	$	234	$	675	$	719

(a)Includes variable lease payments related to excess mileage and excessive wear and tear on vehicles of $6 million and $18 million during the three months and nine months ended September 30, 2020, respectively, and $5 million and $14 million during the three months and nine months ended September 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 September 30, 2020.

($ in millions)
2020	$	39
2021	150
2022	114
2023	84
2024	51
2025 and thereafter	39
Total undiscounted cash flows	477
Difference between undiscounted cash flows and discounted cash flows	(48)
Present value of lease payments recorded as lease receivable	$	429