Leasing Activity

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leasing Activity

Note 5:  Leasing Activity

The information below provides a summary of our leasing activities as a lessor and lessee. See Note 5 (Leasing Activity) in our 2021 Form 10-K for additional information about our leasing activities.

As a Lessor

Noninterest income on leases, included in Table 5.1, is included in other noninterest income on our consolidated statement of income. Lease expense, included in other noninterest expense on our consolidated statement of income, was $186 million and $220 million for the third quarter of 2022 and 2021, respectively, and $559 million and $672 million for the first nine months of 2022 and 2021, respectively.

Table 5.1: Leasing Revenue

	Quarter ended September 30,			Nine months ended September 30,
(in millions)	2022		2021	2022		2021
Interest income on lease financing	$	134	169	$	438	522
Other lease revenue:
Variable revenue on lease financing	28		25	85		76
Fixed revenue on operating leases	243		244	730		758
Variable revenue on operating leases	17		14	46		50
Other lease-related revenue (1)	34		39	121		66
Noninterest income on leases	322		322	982		950
Total leasing revenue	$	456	491	$	1,420	1,472

(1)Predominantly includes net gains (losses) on disposition of assets leased under operating leases or lease financings.

As a Lessee

Substantially all of our leases are operating leases. Table 5.2 presents balances for our operating leases.

Table 5.2: Operating Lease Right-of-Use (ROU) Assets and Lease Liabilities

(in millions)	Sep 30, 2022		Dec 31, 2021
ROU assets	$	3,804	3,805
Lease liabilities	4,423		4,476

Table 5.3 provides the composition of our lease costs, which are predominantly included in net occupancy expense.

Table 5.3: Lease Costs

	Quarter ended September 30,			Nine months ended September 30,
(in millions)	2022		2021	2022		2021
Fixed lease expense – operating leases	$	263	262	$	769	792
Variable lease expense	67		72	210		219
Other (1)	(7)		(15)	(25)		(46)
Total lease costs	$	323	319	$	954	965

(1)Predominantly includes gains recognized from sale leaseback transactions and sublease rental income.