Annual report [Section 13 and 15(d), not S-K Item 405]

Leases (Tables)

v3.25.4
Leases (Tables)
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Net Investment in Sales-type and Direct Financing Leases
The table below presents the net investment in sales-type and direct financing leases at December 31, 2025 and 2024.
Net Investment (1)
December 31
(Dollars in millions) 2025 2024
Lease receivables $ 19,198  $ 18,559 
Unguaranteed residuals 3,520  2,543 
   Total net investment in sales-type and direct
      financing leases
$ 22,718  $ 21,102 
(1)In certain cases, the Corporation obtains third-party residual value insurance to reduce its residual asset risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $9.4 billion and $8.0 billion at December 31, 2025 and 2024.
Sales-type Lease, Lease Income
The table below presents lease income for 2025, 2024 and 2023.
Lease Income
(Dollars in millions) 2025 2024 2023
Sales-type and direct financing
   leases
$ 1,245  $ 1,082  $ 788 
Operating leases 942  931  945 
   Total lease income $ 2,187  $ 2,013  $ 1,733 
Operating Lease, Lease Income
The table below presents lease income for 2025, 2024 and 2023.
Lease Income
(Dollars in millions) 2025 2024 2023
Sales-type and direct financing
   leases
$ 1,245  $ 1,082  $ 788 
Operating leases 942  931  945 
   Total lease income $ 2,187  $ 2,013  $ 1,733 
Direct Financing Lease, Lease Income
The table below presents lease income for 2025, 2024 and 2023.
Lease Income
(Dollars in millions) 2025 2024 2023
Sales-type and direct financing
   leases
$ 1,245  $ 1,082  $ 788 
Operating leases 942  931  945 
   Total lease income $ 2,187  $ 2,013  $ 1,733 
Supplemental Information for Lessee Arrangements .
Supplemental Information for Lessee Arrangements
December 31
(Dollars in millions) 2025 2024
Right-of-use assets $ 8,395  $ 8,527 
Lease liabilities 9,086  9,135 
Weighted-average discount rate
  used to calculate present
  value of future minimum lease
  payments
4.29  % 3.93  %
Weighted-average lease term
  (in years)
8.1 8.0
Right-of-use assets obtained in
  exchange for new operating
  lease liabilities (1)
$ 222  $ 603 
2025 2024 2023
Operating cash flows from
  operating leases (2)
$ 1,896  $ 1,972  $ 1,975 
Lease Cost and Supplemental
  Information:
Operating lease cost $ 1,945  $ 1,971  $ 1,981 
Variable lease cost (3)
561  471  460 
   Total lease cost (4)
$ 2,506  $ 2,442  $ 2,441 
(1)Represents non-cash activity and, accordingly, is not reflected in the Consolidated Statement of Cash Flows.
(2)Represents cash paid for amounts included in the measurements of lease liabilities.
(3)Primarily consists of payments for common area maintenance and property taxes.
(4)Amounts are recorded in occupancy and equipment expense in the Consolidated Statement of Income.
Maturities of Lessor and Lessee Arrangements
The maturities of lessor and lessee arrangements outstanding at December 31, 2025 are presented in the table below based on undiscounted cash flows.

Maturities of Lessor and Lessee Arrangements
Lessor
Lessee (1)
Operating
Leases
Sales-type and
Direct Financing
Leases (2)
Operating
Leases
(Dollars in millions) December 31, 2025
2026 $ 593  $ 7,083  $ 1,739 
2027 512  5,805  1,611 
2028 425  5,015  1,371 
2029 303  2,024  1,073 
2030 203  2,167  891 
Thereafter 216  2,423  3,709 
Total undiscounted
cash flows
$ 2,252  24,517  10,394 
Less: Net present
value adjustment
5,319  1,308 
Total (3)
$ 19,198  $ 9,086 
(1)Excludes $594 million in commitments under lessee arrangements that have not yet commenced with lease terms that will begin in 2026.
(2)Includes $11.9 billion in commercial lease financing receivables and $7.3 billion in direct/indirect consumer lease financing receivables.
(3)Represents lease receivables for lessor arrangements and lease liabilities for lessee arrangements.
Maturities of Lessor and Lessee Arrangements
The maturities of lessor and lessee arrangements outstanding at December 31, 2025 are presented in the table below based on undiscounted cash flows.

Maturities of Lessor and Lessee Arrangements
Lessor
Lessee (1)
Operating
Leases
Sales-type and
Direct Financing
Leases (2)
Operating
Leases
(Dollars in millions) December 31, 2025
2026 $ 593  $ 7,083  $ 1,739 
2027 512  5,805  1,611 
2028 425  5,015  1,371 
2029 303  2,024  1,073 
2030 203  2,167  891 
Thereafter 216  2,423  3,709 
Total undiscounted
cash flows
$ 2,252  24,517  10,394 
Less: Net present
value adjustment
5,319  1,308 
Total (3)
$ 19,198  $ 9,086 
(1)Excludes $594 million in commitments under lessee arrangements that have not yet commenced with lease terms that will begin in 2026.
(2)Includes $11.9 billion in commercial lease financing receivables and $7.3 billion in direct/indirect consumer lease financing receivables.
(3)Represents lease receivables for lessor arrangements and lease liabilities for lessee arrangements.
Maturities of Lessor and Lessee Arrangements
The maturities of lessor and lessee arrangements outstanding at December 31, 2025 are presented in the table below based on undiscounted cash flows.

Maturities of Lessor and Lessee Arrangements
Lessor
Lessee (1)
Operating
Leases
Sales-type and
Direct Financing
Leases (2)
Operating
Leases
(Dollars in millions) December 31, 2025
2026 $ 593  $ 7,083  $ 1,739 
2027 512  5,805  1,611 
2028 425  5,015  1,371 
2029 303  2,024  1,073 
2030 203  2,167  891 
Thereafter 216  2,423  3,709 
Total undiscounted
cash flows
$ 2,252  24,517  10,394 
Less: Net present
value adjustment
5,319  1,308 
Total (3)
$ 19,198  $ 9,086 
(1)Excludes $594 million in commitments under lessee arrangements that have not yet commenced with lease terms that will begin in 2026.
(2)Includes $11.9 billion in commercial lease financing receivables and $7.3 billion in direct/indirect consumer lease financing receivables.
(3)Represents lease receivables for lessor arrangements and lease liabilities for lessee arrangements.