Premises and Equipment

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

NOTE 8 - PREMISES AND EQUIPMENT

Premises and equipment as of December 31 consisted of the following:



(Dollars in millions)	Useful Life	2012		2011
Land	Indefinite		$349		$358
Buildings and improvements	2 - 40 years	1,041		1,033
Leasehold improvements	1 - 30 years	622		580
Furniture and equipment	1 - 20 years	1,357		1,322
Construction in progress		111		105
Total premises and equipment		3,480		3,398
Less accumulated depreciation and amortization		1,916		1,834
Premises and equipment, net			$1,564		$1,564

The carrying amounts of premises and equipment subject to mortgage indebtedness (included in long-term debt) were immaterial as of December 31, 2012 and 2011.

Various Company facilities are leased under both capital and noncancelable operating leases with initial remaining terms in excess of one year. Minimum payments, by year and in aggregate, as of December 31, 2012 were as follows:



(Dollars in millions)	Operating Leases		Capital Leases
2013		$214		$2
2014	202		2
2015	185		2
2016	177		2
2017	154		2
Thereafter	377		5
Total minimum lease payments		$1,309	15
Amounts representing interest			4
Present value of net minimum lease payments				$11

Net premises and equipment included $6 million and $7 million related to capital leases as of December 31, 2012 and 2011, respectively. Aggregate rent expense (principally for offices), including contingent rent expense and sublease income, totaled $219 million, $184 million, and $179 million for the years ended December 31, 2012, 2011, and 2010, respectively. Depreciation and amortization expense for the years ended December 31, 2012, 2011, and 2010 totaled $188 million, $181 million, and $177 million, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details