PREMISES, EQUIPMENT, AND SOFTWARE

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

PREMISES, EQUIPMENT, AND SOFTWARE

PREMISES, EQUIPMENT AND SOFTWARE

A summary of the carrying value of premises and equipment follows:

		December 31,
(dollars in millions)	Useful Lives	2014		2013
Land and land improvements	15 years		$26		$33
Buildings and leasehold improvements	7-40 years	607		636
Furniture, fixtures and equipment	5-15 years	1,613		1,598
Total premises and equipment, gross		2,246		2,267
Less: accumulated depreciation		1,651		1,675
Total premises and equipment, net			$595		$592

The above table includes capital leases with book values of $46 million and $45 million and related accumulated depreciation of $22 million and $17 million as of December 31, 2014 and 2013, respectively. Depreciation charged to noninterest expense was $117 million, $138 million, and $163 million for the years ended December 31, 2014, 2013, and 2012, respectively, and is presented in the Consolidated Statements of Operations in occupancy and equipment expense.

The Company entered into a sale-leaseback transaction during 2013, which includes an operating lease for a period of 10 years. There was a $15 million gain recorded in 2013 of which $14 million was deferred. There were no sale-leaseback transactions during 2014 and 2012.

The Company had capitalized software assets, net of amortization, of $754 million and $729 million as of December 31, 2014 and 2013, respectively. Amortization expense was $145 million, $102 million, and $77 million for the years ended December 31, 2014, 2013, and 2012, respectively. Capitalized software assets are reported as a component of other assets in the Consolidated Balance Sheets.

The estimated future amortization expense for capitalized software assets is as follows:

Year	(in millions)
2015		$127
2016	110
2017	93
2018	72
2019	41
Thereafter	130
Total (1)		$573

⁽¹⁾ Excluded from this balance is $181 million of in-process software at December 31, 2014.