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Occupancy Expense and Information Systems and Communications Expense
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Occupancy Expense and Information Systems and Communications Expense Occupancy Expense and Information Systems and Communications Expense
Occupancy expense and information systems and communications expense include depreciation of buildings, leasehold improvements, computer hardware and software, equipment, furniture and fixtures, and amortization of lease right-of-use assets. Total depreciation and amortization expense in 2025, 2024 and 2023 was $892 million, $824 million and $829 million, respectively.
We use our incremental borrowing rate to determine the present value of the lease payments for finance and operating leases described below. Additionally, we do not separate nonlease components such as real estate taxes and common area maintenance from base lease payments.
As of December 31, 2025 and 2024, we had finance leases for information technology equipment of $89 million and $67 million, respectively, recorded in premises and equipment, with the related liability of $106 million and $79 million, respectively, recorded in long-term debt, in our consolidated statement of condition.
Finance lease right-of-use asset amortization is recorded in information systems and communications expense on a straight-line basis in our consolidated statement of income over the respective lease term. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. Accumulated amortization of the finance lease right-of-use assets was $182 million as of December 31, 2025. Interest expense related to the finance lease obligation reflected in NII was $3 million in both 2025 and 2024.
As of December 31, 2025, aggregate net book value of the operating lease right-of-use assets recorded in other assets was $865 million, with the related lease liability recorded in accrued expenses and other liabilities in our consolidated statement of condition.
We have entered into non-cancellable operating leases for premises and equipment. Nearly all of
these leases include renewal options, and only those reasonably certain of being exercised are included in the term of the lease. Costs for operating leases are recorded on a straight-line basis which includes both interest expense and right-of-use asset amortization. Operating lease costs for office space are recorded in occupancy expense. Costs related to operating leases for equipment are recorded in information systems and communications expense.
As of December 31, 2025, we have additional operating and finance leases, primarily for office space and equipment, that have not yet commenced with approximately $80 million of undiscounted future minimum lease payments. These leases will largely commence in fiscal year 2026 with lease terms ranging from 2 to 10 years.
None of our leases contain residual value guarantees.
The following table presents lease costs, sublease rental income, cash flows and new leases arising from lease transactions for 2025:
Years Ended December 31,
(In millions)20252024
Finance lease:
Amortization of right-of-use assets$47 $48 
Interest on lease liabilities3 3 
Total finance lease expense50 51 
Sublease income — — 
Net finance lease expense50 51 
Operating lease:
Operating lease expense179 168 
Sublease income (13)(17)
Net operating lease expense166 151 
Net lease expense$216 $202 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$3 $3 
Operating cash flows from operating leases193 179 
Financing cash flows from finance leases43 46 
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases$214 $174 
Finance leases64 — 
The following table presents future minimum lease payments under non-cancellable leases as of December 31, 2025:
(In millions)Operating LeasesFinance LeasesTotal
2026
$174 $34 $208 
2027154 29 183 
2028136 29 165 
2029101 22 123 
203083 — 83 
Thereafter410 — 410 
Total future minimum lease payments1,058 114 1,172 
Less imputed interest(195)(8)(203)
Total$863 $106 $969 
The following table presents details related to remaining lease terms and discount rate as of December 31, 2025 and 2024:
December 31, 2025December 31, 2024
Weighted-average remaining lease term (in years):
Finance leases3.41.4
Operating leases8.38.1
Weighted-average discount rate:
Finance leases5 %3 %
Operating leases5 %4 %
Occupancy Expense and Information Systems and Communications Expense Occupancy Expense and Information Systems and Communications Expense
Occupancy expense and information systems and communications expense include depreciation of buildings, leasehold improvements, computer hardware and software, equipment, furniture and fixtures, and amortization of lease right-of-use assets. Total depreciation and amortization expense in 2025, 2024 and 2023 was $892 million, $824 million and $829 million, respectively.
We use our incremental borrowing rate to determine the present value of the lease payments for finance and operating leases described below. Additionally, we do not separate nonlease components such as real estate taxes and common area maintenance from base lease payments.
As of December 31, 2025 and 2024, we had finance leases for information technology equipment of $89 million and $67 million, respectively, recorded in premises and equipment, with the related liability of $106 million and $79 million, respectively, recorded in long-term debt, in our consolidated statement of condition.
Finance lease right-of-use asset amortization is recorded in information systems and communications expense on a straight-line basis in our consolidated statement of income over the respective lease term. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. Accumulated amortization of the finance lease right-of-use assets was $182 million as of December 31, 2025. Interest expense related to the finance lease obligation reflected in NII was $3 million in both 2025 and 2024.
As of December 31, 2025, aggregate net book value of the operating lease right-of-use assets recorded in other assets was $865 million, with the related lease liability recorded in accrued expenses and other liabilities in our consolidated statement of condition.
We have entered into non-cancellable operating leases for premises and equipment. Nearly all of
these leases include renewal options, and only those reasonably certain of being exercised are included in the term of the lease. Costs for operating leases are recorded on a straight-line basis which includes both interest expense and right-of-use asset amortization. Operating lease costs for office space are recorded in occupancy expense. Costs related to operating leases for equipment are recorded in information systems and communications expense.
As of December 31, 2025, we have additional operating and finance leases, primarily for office space and equipment, that have not yet commenced with approximately $80 million of undiscounted future minimum lease payments. These leases will largely commence in fiscal year 2026 with lease terms ranging from 2 to 10 years.
None of our leases contain residual value guarantees.
The following table presents lease costs, sublease rental income, cash flows and new leases arising from lease transactions for 2025:
Years Ended December 31,
(In millions)20252024
Finance lease:
Amortization of right-of-use assets$47 $48 
Interest on lease liabilities3 3 
Total finance lease expense50 51 
Sublease income — — 
Net finance lease expense50 51 
Operating lease:
Operating lease expense179 168 
Sublease income (13)(17)
Net operating lease expense166 151 
Net lease expense$216 $202 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$3 $3 
Operating cash flows from operating leases193 179 
Financing cash flows from finance leases43 46 
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases$214 $174 
Finance leases64 — 
The following table presents future minimum lease payments under non-cancellable leases as of December 31, 2025:
(In millions)Operating LeasesFinance LeasesTotal
2026
$174 $34 $208 
2027154 29 183 
2028136 29 165 
2029101 22 123 
203083 — 83 
Thereafter410 — 410 
Total future minimum lease payments1,058 114 1,172 
Less imputed interest(195)(8)(203)
Total$863 $106 $969 
The following table presents details related to remaining lease terms and discount rate as of December 31, 2025 and 2024:
December 31, 2025December 31, 2024
Weighted-average remaining lease term (in years):
Finance leases3.41.4
Operating leases8.38.1
Weighted-average discount rate:
Finance leases5 %3 %
Operating leases5 %4 %