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Occupancy Expense and Information Systems and Communications Expense
 12 Months Ended
Dec. 31, 2017
Occupancy Expense and Information Systems and Communications Expense [Abstract]  
Occupancy Expense and Information Systems and Communications Expense
Occupancy Expense and Information Systems and Communications Expense
Occupancy expense and information systems and communications expense include depreciation of buildings, leasehold improvements, computer hardware and software, equipment, and furniture and fixtures. Total depreciation expense in 2017, 2016 and 2015 was $526 million, $472 million and $443 million, respectively.
We lease 1,025,000 square feet at One Lincoln Street, our headquarters building located in Boston, Massachusetts, and a related underground parking garage, under 20-year, non-cancelable capital leases expiring in September 2023. A portion of the lease payments is offset by subleases for approximately 127,000 square feet of the building. As of December 31, 2017 and 2016, an aggregate net book value of $159 million and $194 million, respectively, related to the above-described capital leases was recorded in premises and equipment, with the related liability recorded in long-term debt, in our consolidated statement of condition.
Capital lease asset amortization is recorded in occupancy expense on a straight-line basis in our consolidated statement of income over the respective lease term. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. In 2017, 2016 and 2015, interest expense related to these capital lease obligations, reflected in NII, was $20 million, $22 million and $32 million, respectively. As of December 31, 2017 and 2016, accumulated amortization of capital lease assets was $401 million and $365 million, respectively.
We have entered into non-cancelable operating leases for premises and equipment. Nearly all of these leases include renewal options. Costs related to operating leases for office space are recorded in occupancy expense. Costs related to operating leases for equipment are recorded in information systems and communications expense. Both are recorded on a straight-line basis.
Total rental expense net of sublease revenue in 2017, 2016 and 2015 amounted to $229 million, $194 million and $190 million, respectively. Total rental expense was reduced by sublease revenue of $5 million in 2017 and $4 million in both 2016 and 2015.
The following table presents a summary of future minimum lease payments under non-cancelable capital and operating leases as of December 31, 2017. Aggregate future minimum rental commitments have been reduced by aggregate sublease rental commitments of $41 million for capital leases and $19 million for operating leases.
(In millions)
Capital
Leases
 
Operating
Leases
 
Total
2018
$
53

 
$
197

 
$
250

2019
45

 
175

 
220

2020
45

 
154

 
199

2021
45

 
144

 
189

2022
45

 
125

 
170

Thereafter
34

 
336

 
370

Total minimum lease payments
267

 
$
1,131

 
$
1,398

Less amount representing interest payments
(56
)
 
 
 
 
Present value of minimum lease payments
$
211

 
 
 
 
Expenses
The following table presents the components of other expenses for the periods indicated:
 
Years Ended December 31,
(In millions)
2017
 
2016
 
2015
Insurance
$
118

 
$
93

 
$
126

Regulatory fees and assessments
106

 
82

 
115

Bank operations
80

 
62

 
105

Sales advertising public relations
67

 
52

 
65

Litigation
(15
)
 
50

 
422

Other
233

 
245

 
185

Total other expenses
$
589

 
$
584

 
$
1,018


Restructuring Charges
In the year ended December 31, 2017, we recorded restructuring charges of $245 million, compared to $142 million in the year ended December 31, 2016. The charges were primarily related to Beacon.
The following table presents aggregate restructuring activity for the periods indicated:
(In millions)
Employee
Related Costs
 
Real Estate
Actions
 
Asset and Other Write-offs
 
Total
Accrual Balance at December 31, 2014
$
39

 
$
23

 
$
7

 
$
69

Accruals for Business Operations and IT
(5
)
 
(3
)
 
13

 
5

Payments and other adjustments
(25
)
 
(9
)
 
(17
)
 
(51
)
Accrual Balance at December 31, 2015
$
9

 
$
11

 
$
3

 
$
23

Accruals for Business Operations and IT
(2
)
 
—

 
—

 
(2
)
Accruals for Beacon
94

 
18

 
30

 
142

Payments and other adjustments
(64
)
 
(12
)
 
(31
)
 
(107
)
Accrual Balance at December 31, 2016
$
37

 
$
17

 
$
2

 
$
56

Accruals for Beacon
186

 
32

 
27

 
245

Payments and Other Adjustments
(57
)
 
(17
)
 
(26
)
 
(100
)
Accrual Balance at December 31, 2017
$
166

 
$
32

 
$
3

 
$
201