Leases

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
(Dollars in millions)	2020		2019		2020		2019
Lease income – sales-type and direct financing leases
Sales-type lease selling price	$	154	$	188	$	733	$	516
Less: Carrying value of underlying assets*		64		75		258		204
Gross profit	$	90	$	113	$	475	$	312
Interest income on lease receivables		56		71		195		222
Total sales-type and direct financing lease income	$	145	$	184	$	670	$	534
Lease income – operating leases		65		80		204		252
Variable lease income		25		12		82		38
Total lease income	$	235	$	276	$	956	$	824

* Excludes unguaranteed residual value.