Bank Premises and Equipment

9 Months Ended

Sep. 30, 2014

Bank Premises and Equipment

Bank Premises and Equipment

7. Bank Premises and Equipment

The following table provides a summary of bank premises and equipment as of:
($ in millions)		September 30, 2014	December 31, 2013
Land and improvements	$	822	838
Buildings		1,794	1,763
Equipment		1,650	1,581
Leasehold improvements		413	397
Construction in progress		90	118
Accumulated depreciation and amortization		(2,302)	(2,166)
Total	$	2,467	2,531

At September 30, 2014, land and improvements included $166 million associated with parcels of undeveloped land intended for future branch expansion. The Bancorp monitors changing customer preferences associated with the channels it uses for banking transactions to evaluate the efficiency, competitiveness and quality of the customer service experience of its retail transaction network. As part of this ongoing assessment the Bancorp may determine that it is no longer fully committed to maintaining full-service branches at certain of its existing banking center locations. Similarly, the Bancorp may also determine that it is no longer fully committed to building banking centers on certain parcels of land which had previously been held for future branch expansion. In these circumstances, the Bancorp performs an assessment of the recoverability of these long-lived assets. Impairment losses associated with such assessments were immaterial and $17 million for the three and nine months ended September 30, 2014, respectively, and immaterial for the three and nine months ended September 30, 2013. The Bancorp's assessment of the recoverability of these asset groups requires the exercise of judgment in projecting the extent and nature of their future use and the related cash flows which may be impacted by unanticipated events or circumstances.