Leases

9 Months Ended

Sep. 30, 2022

Leases

Leases

10. 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)	2022		2021		2022		2021
Lease income — sales-type and direct financing leases:
Sales-type lease selling price	$	99	$	119	$	888	$	870
Less: Carrying value of underlying assets*		(57)		(48)		(195)		(205)
Gross profit	$	43	$	70	$	693	$	664
Interest income on lease receivables		54		44		144		142
Total sales-type and direct financing lease income	$	97	$	114	$	838	$	806
Lease income — operating leases		29		38		86		136
Variable lease income		19		18		75		97
Total lease income	$	145	$	169	$	998	$	1,038

* Excludes unguaranteed residual value.