Leasing (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

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, 2021, and that have noncancelable lease terms expiring after June 30, 2021.

($ in millions)
2021	$	20
2022	35
2023	27
2024	20
2025	18
2026 and thereafter	58
Total undiscounted cash flows	178
Difference between undiscounted cash flows and discounted cash flows	(11)
Total lease liability	$	167

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)	2021		2020		2021		2020
Operating lease expense	$	14	$	11	$	26	$	24
Variable lease expense	2		2		4		4
Total lease expense, net (a)	$	16	$	13	$	30	$	28

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

Schedule of Investment in Operating Lease

The following table details our investment in operating leases.

($ in millions)	June 30, 2021		December 31, 2020
Vehicles	$	12,170	$	11,182
Accumulated depreciation	(1,455)		(1,543)
Investment in operating leases, net	$	10,715	$	9,639

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, 2021.

($ in millions)
2021	$	818
2022	1,326
2023	877
2024	274
2025	36
2026 and thereafter	2
Total lease payments from operating leases	$	3,333

Depreciation Expense on Operating Lease Assets

We recognized operating lease revenue of $384 million and $754 million for the three months and six months ended June 30, 2021, respectively, and $343 million and $710 million for the three months and six months ended June 30, 2020. Depreciation expense on operating lease assets includes net 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)	2021		2020		2021		2020
Depreciation expense on operating lease assets (excluding remarketing gains and losses) (a)	$	210	$	241	$	437	$	491
Remarketing (gains) losses, net	(128)		11		(192)		9
Net depreciation expense on operating lease assets	$	82	$	252	$	245	$	500

(a)Includes variable lease payments related to excess mileage and excessive wear and tear on vehicles of $5 million and $10 million during the three months and six months ended June 30, 2021, respectively, and $5 million and $12 million during the three months and six months ended June 30, 2020.

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, 2021.

($ in millions)
2021	$	90
2022	152
2023	124
2024	97
2025	44
2026 and thereafter	29
Total undiscounted cash flows	536
Difference between undiscounted cash flows and discounted cash flows	(53)
Present value of lease payments recorded as lease receivable	$	483