Leases

6 Months Ended

Jun. 30, 2021

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)	2021		2020		2021		2020
Lease income – sales-type and direct financing leases:
Sales-type lease selling price	$	394	$	368	$	757	$	579
Less: Carrying value of underlying assets*		103		117		162		194
Gross profit	$	291	$	251	$	595	$	385
Interest income on lease receivables		47		65		98		139
Total sales-type and direct financing lease income	$	338	$	316	$	693	$	524
Lease income – operating leases		47		68		99		139
Variable lease income		22		27		79		58
Total lease income	$	408	$	411	$	871	$	721

* Excludes unguaranteed residual value.