
Note 7		Land, buildings and equipment


$ millions, as at or for the year ended October 31		Land and buildings ⁽¹⁾			Computer equipment			Office furniture, equipment and other ⁽²⁾			Leasehold improvements			Total
2018	Cost
	Balance at beginning of year	$	1,356		$	1,060		$	884		$	1,073		$	4,373
	Additions ⁽³⁾		27			136			62			62			287
	Disposals ⁽⁴⁾		(16	)		(35	)		(13	)		(5	)		(69	)
	Adjustments ⁽⁵⁾		17			3			4			4			28
	Balance at end of year	$	1,384		$	1,164		$	937		$	1,134		$	4,619
2017	Balance at end of year	$	1,356		$	1,060		$	884		$	1,073		$	4,373
2018	Accumulated amortization
	Balance at beginning of year	$	606		$	868		$	436		$	680		$	2,590
	Amortization ⁽⁴⁾		37			101			46			73			257
	Disposals ⁽⁴⁾		(8	)		(19	)		(5	)		(5	)		(37	)
	Adjustments ⁽⁵⁾		9			3			–			2			14
	Balance at end of year	$	644		$	953		$	477		$	750		$	2,824
2017	Balance at end of year	$	606		$	868		$	436		$	680		$	2,590
	Net book value
	As at October 31, 2018	$	740		$	211		$	460		$	384		$	1,795
	As at October 31, 2017	$	750		$	192		$	448		$	393		$	1,783

(1)	Includes land and building underlying a finance lease arrangement. See below for further details.

(2)	Includes $152 million (2017: $133 million) of work-in-progress not subject to amortization.

(3)	Includes acquisitions through business combinations of nil (2017: $62 million).

(4)	Includes write-offs of fully amortized assets.

(5)	Includes foreign currency translation adjustments.

Net additions and disposals during the year were: Canadian Personal and Small Business Banking net additions of $45 million (2017: net disposals of $97 million); Canadian Commercial Banking and Wealth Management net additions of $6 million (2017: net disposals of $9 million); U.S. Commercial Banking and Wealth Management net additions of $28 million (2017: net additions of $68 million); Capital Markets net additions of $1 million (2017: net additions of nil); and Corporate and Other net additions of $138 million (2017: net additions of $82 million).

Finance lease property

Included in land and buildings above is a finance lease property, a portion of which is rented out and considered an investment property. The carrying value of the finance lease property is as follows:


$ millions, for the year ended October 31	2018			2017
Balance at beginning of year	$	379		$	418
Amortization		(23	)		(24	)
Foreign currency adjustments		7			(15	)
Balance at end of year	$	363		$	379

Rental income of $97 million (2017: $99 million; 2016: $99 million) was generated from the investment property. Interest expense of $25 million (2017: $28 million; 2016: $30 million) and non-interest expenses of $49 million (2017: $40 million; 2016: $49 million) were incurred in respect of the finance lease property. Our commitment related to the finance lease is disclosed in Note 21.