Leases

6 Months Ended

Jun. 30, 2020

Leases

Leases

9. 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)	2020		2019		2020		2019
Lease income — sales-type and direct financing leases
Sales-type lease selling price	$	368	$	179	$	579	$	328
Less: Carrying value of underlying assets*		117		74		194		129
Gross profit	$	251	$	105	$	385	$	199
Interest income on lease receivables		65		73		139		151
Total sales-type and direct financing lease income	$	316	$	178	$	524	$	350
Lease income — operating leases		68		82		139		172
Variable lease income		27		9		58		27
Total lease income	$	411	$	269	$	721	$	548

* Excludes unguaranteed residual value.