PREMISES, EQUIPMENT, AND SOFTWARE

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

PREMISES, EQUIPMENT AND SOFTWARE

A summary of the carrying value of premises and equipment is presented below:



		December 31,
(dollars in millions)	Useful Lives	2016			2015
Land and land improvements	15 years		$47			$25
Buildings and leasehold improvements	7-40 years	684			634
Furniture, fixtures and equipment	5-15 years	1,714			1,667
Total premises and equipment, gross		2,445			2,326
Accumulated depreciation		(1,844		)	(1,731		)
Total premises and equipment, net			$601			$595

The table above includes capital leases with book values of $45 million and $47 million and related accumulated depreciation of $30 million and $25 million as of December 31, 2016 and 2015, respectively. Depreciation charged to noninterest expense was $130 million, $116 million, and $117 million for the years ended December 31, 2016, 2015, and 2014, respectively, and is presented in the Consolidated Statements of Operations in both occupancy and equipment expense.

The Company had capitalized software assets of $1.5 billion and $1.3 billion and related accumulated amortization of $691 million and $532 million as of December 31, 2016 and 2015, respectively. Amortization expense was $170 million, $146 million, and $145 million for the years ended December 31, 2016, 2015, and 2014, 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 presented below:



Year	(in millions)
2017		$160
2018	139
2019	108
2020	78
2021	41
Thereafter	114
Total ⁽¹⁾		$640

⁽¹⁾ Excluded from this balance is $138 million of in-process software at December 31, 2016.