Leases

3 Months Ended

Mar. 31, 2022

10. Leases:

Accounting for Leases as a Lessor

The following table presents amounts included in the Consolidated Income Statement related to lessor activity:


(Dollars in millions)
For the three months ended March 31:	2022		2021
Lease income — sales-type and direct financing leases:
Sales-type lease selling price	$	54	$	360
Less: Carrying value of underlying assets*		(19)		(57)
Gross profit	$	36	$	304
Interest income on lease receivables		45		51
Total sales-type and direct financing lease income	$	81	$	354
Lease income — operating leases		30		51
Variable lease income		28		57
Total lease income	$	138	$	463

* Excludes unguaranteed residual value.

Sales-type lease revenue was $54 million for the three months ended March 31, 2022 and $360 million for the three months ended March 31, 2021. The decrease was predominantly due to the zSystems product cycle dynamics.