Premises, Equipment & Lease Commitments

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment and Lease Commitments [Abstract]

Premises, Equipment & Lease Commitments

NOTE 8—PREMISES, EQUIPMENT AND LEASE COMMITMENTS

Premises and Equipment

Premises and equipment as of December 31, 2016 and 2015 were as follows:

Table8.1: Components of Premises and Equipment

	December 31,
(Dollars in millions)	2016			2015
Land	$	423		$	458
Buildings and improvements	2,958			2,674
Furniture and equipment	1,834			1,735
Computer software	1,681			1,618
In progress	591			514
Total premises and equipment, gross	7,487			6,999
Less: Accumulated depreciation and amortization	(3,812		)	(3,415		)
Total premises and equipment, net	$	3,675		$	3,584

Depreciation and amortization expense was $710 million, $638 million and $656 million for the years ended December 31, 2016, 2015 and 2014, 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 $330 million, $276 million and $265 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Future minimum rental commitments as of December 31, 2016, for all non-cancellable operating leases with initial or remaining terms of one year or more are as follows:

Table8.2: Lease Commitments

(Dollars in millions)	Estimated Future Minimum Rental Commitments
2017	$	317
2018	314
2019	284
2020	262
2021	236
Thereafter	1,173
Total	$	2,586

Minimum sublease rental income of $192 million due in future years under non-cancellable leases has not been included in the table above as a reduction to minimum lease payments.