Annual report pursuant to Section 13 and 15(d)

OPERATING LEASES (Notes)

v3.20.4
OPERATING LEASES (Notes)
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Operating Leases OPERATING LEASES At December 31, 2020, Huntington was obligated under non-cancelable leases for branch and office space. These leases are all classified as operating due to the amount of time such spaces are occupied relative to the underlying assets useful lives. Many of these leases contain renewal options, most of which are not included in measurement of the right-of-use asset as they are not considered reasonably certain of exercise (i.e., Huntington does not currently have a significant economic incentive to exercise these options). Some leases contain escalation clauses calling for rentals to be adjusted for increased real estate taxes and other operating expenses or proportionately adjusted for increases in the consumer or other price indices. Occasionally, Huntington will sublease the land and buildings for which it has obtained the right to use; substantially all of those sublease arrangements are classified as operating, with sublease income recognized on a straight-line basis over the contractual term of the arrangement.
Net lease assets and liabilities at December 31, 2020 and 2019 are as follows:
At December 31,
(dollar amounts in millions) Classification 2020 2019
Assets
Operating lease assets Other assets $ 199  $ 210 
Liabilities
Lease liabilities Other liabilities $ 220  $ 233 
Net lease cost for the years ended December 31, 2020 and 2019 are as follows:
Year Ended December 31,
(dollar amounts in millions) Classification 2020 2019
Operating lease cost Net occupancy $ 50  $ 47 
Short-term lease cost Net occupancy 1  1 
Sublease income Net occupancy (2) (3)
Net lease cost $ 49  $ 45 
Maturity of lease liabilities at December 31, 2020 are as follows:
(dollar amounts in millions) Total
2021 $ 43 
2022 42 
2023 37 
2024 32 
2025 26 
Thereafter 77 
Total lease payments $ 257 
Less: Interest (37)
Total lease liabilities $ 220 
Additional supplemental information related to the Company’s operating leases as of December 31, 2020 and 2019 are as follows:
Year Ended December 31,
(dollar amounts in millions) 2020 2019
Cash paid for amounts included in the measurement of lease liabilities for Operating cash flows $ (53) $ (54)
Right-of-use assets obtained in exchange for lease obligations for Operating leases 23  40 
Weighted-average remaining lease term (years) for Operating leases 7.17 7.31
Weighted-average discount rate for Operating leases 4.26  % 4.56  %