Bank Premises and Equipment

9 Months Ended

Sep. 30, 2017

8. Bank Premises and Equipment

The following table provides a summary of bank premises and equipment as of:

($ in millions)		September 30, 2017	December 31, 2016
Land and improvements^(a)	$	643	663
Buildings^(a)		1,676	1,672
Equipment		1,828	1,761
Leasehold improvements		396	398
Construction in progress^(a)		99	99
Bank premises and equipment held for sale:
Land and improvements		24	29
Buildings		11	9
Equipment		1	1
Accumulated depreciation and amortization		(2,660)	(2,567)
Total bank premises and equipment	$	2,018	2,065

(a) At September 30, 2017 and December 31, 2016, land and improvements, buildings and construction in progress included $91 and $92, respectively, 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 in its consumer distribution 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.

The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. Impairment losses associated with such assessments and lower of cost or market adjustments were $1 million and $6 million for the three and nine months ended September 30, 2017, respectively, and $28 million and $31 million for the three and nine months ended September 30, 2016, respectively. The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income.