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Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases Leases:
Accounting for Leases as a Lessor
The following table presents amounts included in the Consolidated Income Statement related to lessor activity.
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2023202220232022
Lease income — sales-type and direct financing leases:
    
Sales-type lease selling price$248 $735 $338 $789 
Less: Carrying value of underlying assets*(61)(120)(91)(139)
Gross profit$187 $615 $247 $651 
Interest income on lease receivables59 45 118 90 
Total sales-type and direct financing lease income$246 $660 $365 $741 
Lease income — operating leases
25 27 51 56 
Variable lease income14 28 35 56 
Total lease income$284 $715 $451 $853 
*Excludes unguaranteed residual value.
Sales-type lease revenue was $284 million and $451 million for the three and six months ended June 30, 2023, respectively, compared to $715 million and $853 million for the three and six months ended June 30, 2022, respectively. The decreases in both the three and six month periods were predominantly due to the zSystems product cycle dynamics.
Leases Leases:
Accounting for Leases as a Lessor
The following table presents amounts included in the Consolidated Income Statement related to lessor activity.
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2023202220232022
Lease income — sales-type and direct financing leases:
    
Sales-type lease selling price$248 $735 $338 $789 
Less: Carrying value of underlying assets*(61)(120)(91)(139)
Gross profit$187 $615 $247 $651 
Interest income on lease receivables59 45 118 90 
Total sales-type and direct financing lease income$246 $660 $365 $741 
Lease income — operating leases
25 27 51 56 
Variable lease income14 28 35 56 
Total lease income$284 $715 $451 $853 
*Excludes unguaranteed residual value.
Sales-type lease revenue was $284 million and $451 million for the three and six months ended June 30, 2023, respectively, compared to $715 million and $853 million for the three and six months ended June 30, 2022, respectively. The decreases in both the three and six month periods were predominantly due to the zSystems product cycle dynamics.