Leases

Schedule of supplemental information relating to the cash flows arising from lease transactions


($ in millions)
For the year ended December 31:	2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from finance leases	$	8
Financing cash outflows from finance leases		22
Operating cash outflows from operating leases		1,541
ROU assets obtained in exchange for new finance lease liabilities		209	*
ROU assets obtained in exchange for new operating lease liabilities		6,481	*

* Includes opening balance additions as a result of the adoption of the new lease guidance effective January 1, 2019. The post adoption addition of leases for the year ended December 31, 2019 was $1,679 million for operating leases and immaterial for finance leases.

Schedule of expected undiscounted cash out flows for operating and finance leases

Imputed

($ in millions)

2020

2021

2022

2023

2024

Thereafter

Interest*

Total**

Finance leases

$

62

$

59

$

48

$

31

$

12

$

46

$

(54)

$

204

Operating leases

1,486

1,198

928

673

514

806

(346)

5,259

* Imputed interest represents the difference between undiscounted cash flows and discounted cash flows.

** The company entered into lease agreements for certain facilities and equipment with payments totaling approximately $181 million that have not yet commenced as of December 31, 2019, and therefore are not included in this table.

Capital lease commitments



											Beyond
($ in millions)	2019		2020		2021		2022		2023		2023
Operating lease commitments
Gross minimum rental commitments (including vacant space below)	$	1,581	$	1,233	$	914	$	640	$	445	$	815
Vacant space		29		23		14		9		5		8
Sublease income commitments		11		7		5		4		4		2
Capital lease commitments		3		3		3		3		2		28

Schedule of maturity analysis of the lease payments due to IBM on sales-type and direct financing leases


($ in millions)	Total
2020	$	2,632
2021		1,921
2022		1,053
2023		382
2024		82
Thereafter		7
Total undiscounted cash flows	$	6,077
Present value of lease payments (recognized as financing receivables)		5,567	*
Difference between undiscounted cash flows and discounted cash flows	$	(509)

* The present value of the lease payments will not equal the financing receivables balances in the Consolidated Balance Sheet, due to certain items including IDCs, allowance for credit losses and residual values, which are included in the financing receivable balance, but are not included in the future lease payments.