Leases

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
(Dollars in millions)	2021		2020		2021		2020
Lease income — sales-type and direct financing leases:
Sales-type lease selling price	$	120	$	154	$	877	$	733
Less: Carrying value of underlying assets*		49		64		211		258
Gross profit	$	71	$	90	$	666	$	475
Interest income on lease receivables		44		56		142		195
Total sales-type and direct financing lease income	$	115	$	145	$	808	$	670
Lease income — operating leases		38		65		137		204
Variable lease income		18		25		97		82
Total lease income	$	171	$	235	$	1,042	$	956

* Excludes unguaranteed residual value.