OTHER ASSETS

6 Months Ended

Jun. 30, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

The following is a detail of items that comprised Other assets at June 30, 2020 and December 31, 2019:


(in thousands)	June 30, 2020		December 31, 2019
Operating lease ROU assets	$	603,876	$	656,472
Deferred tax assets	766,392		503,681
Accrued interest receivable	711,900		545,148
Derivative assets at fair value	1,644,784		555,880
Other repossessed assets	133,577		217,184
Equity method investments	268,069		271,656
MSRs	90,231		132,683
OREO	53,258		66,828
Income tax receivables	196,596		272,699
Prepaid expense	344,547		352,331
Miscellaneous assets and receivables	714,442		629,654
Total other assets	$	5,527,672	$	4,204,216

Operating lease ROU assets

We have operating leases for real estate and non-real estate assets. Real estate leases relate to office space and bank/lending retail branches. Non-real estate leases include data centers, ATMs, vehicles and certain equipment leases. Real estate leases may include one or more options to renew, with renewal terms that can extend the lease term generally from one to five years. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

For the three-month and six-month periods ended June 30, 2020, operating lease expenses were $40.7 million and $75.8 million, respectively, compared to $36.6 million and $74.2 million for the corresponding periods in 2019. Sublease income was $1.2 million and $2.6 million, respectively, for three-month and six-month periods ended June 30, 2020 compared to $1.3 million and $1.9 million for the corresponding periods in 2019. These are reported within Occupancy and equipment expenses in the Company’s Condensed Consolidated Statements of Operations.

NOTE 6. OTHER ASSETS (continued)

Supplemental balance sheet information related to leases was as follows:


Maturity of Lease Liabilities at June 30, 2020	Total Operating leases
	(in thousands)
2020	$	75,387
2021	132,623
2022	121,436
2023	106,528
2024	92,135
Thereafter	209,249
Total lease liabilities	$	737,358
Less: Interest	(71,216)
Present value of lease liabilities	$	666,142


Supplemental Balance sheet information	June 30, 2020			December 31, 2019
Operating lease ROU assets	$	603,876		$	656,472
Other liabilities	666,142			711,666
Weighted-average remaining lease term (years)	6.7			7.1
Weighted-average discount rate	3.1		%	3.1		%


	Six Months period ended
Other Information	June 30, 2020		June 30, 2019
	(in thousands)
Operating cash flows from operating leases⁽¹⁾	$	(72,177)	$	(61,597)
Leased assets obtained in exchange for new operating lease liabilities	$	(19,001)	$	717,765

(1) Activity is included within the net change in other liabilities on the Consolidated SCF.

The Company made approximately $2.0 million and $1.9 million in payments during the six-month periods ended June 30, 2020 and 2019, respectively, to Santander for rental of certain office space. The related ROU assets and lease liabilities were approximately $10.8 million and $15.2 million at June 30, 2020 and 2019, respectively.

The remainder of Other assets is comprised of:

•Deferred tax asset, net - Refer to Note 14 of these Condensed Consolidated Financial Statements for more information on tax-related activities.

•Derivative assets at fair value - Refer to the "Offsetting of Financial Assets" table in Note 11 to these Condensed Consolidated Financial Statements for the detail of these amounts.

•Equity method investments - The Company makes certain equity investments in various limited partnerships, some of which are considered VIEs, that invest in and lend to qualified community development entities, such as renewable energy investments, through the NMTC and CRA programs. The Company acts only in a limited partner capacity in connection with these partnerships, so the Company has determined that it is not the primary beneficiary of the partnerships because it does not have the power to direct the activities of the partnerships that most significantly impact the partnerships' economic performance.

•MSRs - See further discussion on the valuation of the MSRs in Note 12.

•Income tax receivables - Refer to Note 14 of these Condensed Consolidated Financial Statements for more information on tax-related activities.

•OREO and Other repossessed assets includes property and vehicles recovered through foreclosure and repossession. The balance is lower as of June 30, 2020 due to the Company’s temporary suspension of foreclosures and repossessions during the first months of the COVID-19 pandemic.

•Miscellaneous assets and receivables includes subvention receivables in connection with the agreement with Chrysler, investment and capital market receivables, derivatives trading receivables, and unapplied payments.