PREMISES, EQUIPMENT, AND SOFTWARE

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

PREMISES, EQUIPMENT AND SOFTWARE

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



		December 31,
(dollars in millions)	Useful Lives	2015		2014
Land and land improvements	15 years		$25		$26
Buildings and leasehold improvements	7-40 years	634		607
Furniture, fixtures and equipment	5-15 years	1,667		1,613
Total premises and equipment, gross		2,326		2,246
Less: accumulated depreciation		1,731		1,651
Total premises and equipment, net			$595		$595

The above table includes capital leases with book values of $47 million and $46 million and related accumulated depreciation of $25 million and $22 million as of December 31, 2015 and 2014, respectively. Depreciation charged to noninterest expense was $116 million, $117 million, and $138 million for the years ended December 31, 2015, 2014, and 2013, respectively, and is presented in the Consolidated Statements of Operations in occupancy and equipment expense.

The Company entered into two sale-leaseback transactions during 2015, one of which included an operating lease for a period of 10 years. There were $9 million of gains recorded of which $1 million was deferred. There were no sale-leaseback transactions during 2014. 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.

The Company had capitalized software assets of $1.3 billion and $1.1 billion and related accumulated amortization of $532 million and $387 million as of December 31, 2015 and 2014, respectively. Amortization expense was $146 million, $145 million, and $102 million for the years ended December 31, 2015, 2014, and 2013, 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)
2016		$142
2017	125
2018	104
2019	72
2020	43
Thereafter	129
Total ⁽¹⁾		$615

⁽¹⁾ Excluded from this balance is $171 million of in-process software at December 31, 2015.