Premises, Equipment & Lease Commitments

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment and Lease Commitments [Abstract]

NOTE 9—PREMISES, EQUIPMENT AND LEASE COMMITMENTS

Premises and Equipment

Premises and equipment as of December 31, 2015 and 2014 were as follows:

Table 9.1: Components of Premises and Equipment



	December 31,
(Dollars in millions)	2015			2014
Land	$	458		$	552
Buildings and improvements	2,674			2,577
Furniture and equipment	1,735			1,730
Computer software	1,618			1,556
In progress	514			467
Total premises and equipment, gross	6,999			6,882
Less: Accumulated depreciation and amortization	(3,415		)	(3,197		)
Total premises and equipment, net	$	3,584		$	3,685

Depreciation and amortization expense was $638 million, $656 million and $571 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Lease Commitments

Certain premises and equipment are leased under agreements that expire at various dates through 2056, without taking into consideration available renewal options. Many of these leases provide for payment by us, as the lessee, of property taxes, insurance premiums, cost of maintenance and other costs. In some cases, rentals are subject to increases in relation to a cost of living index. Total rent expenses amounted to approximately $276 million, $265 million and $245 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Future minimum rental commitments as of December 31, 2015, for all non-cancelable operating leases with initial or remaining terms of one year or more are as follows:

Table 9.2: Lease Commitments



(Dollars in millions)	Estimated Future Minimum Rental Commitments
2016	$	292
2017	281
2018	266
2019	230
2020	205
Thereafter	1,027
Total	$	2,301

Minimum sublease rental income of $124 million due in future years under non-cancelable leases has not been included in the table above as a reduction to minimum lease payments.