Premises and Equipment Property Plant And Equipment (Notes)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 8 - PREMISES AND EQUIPMENT

Premises and equipment at December 31 consisted of the following:

(Dollars in millions)	Useful Life (in years)	2016		2015
Land	Indefinite		$320		$330
Buildings and improvements	1 - 40	1,028		1,073
Leasehold improvements	1 - 30	645		636
Furniture and equipment	1 - 20	1,492		1,463
Construction in progress		357		249
Total premises and equipment		3,842		3,751
Less: Accumulated depreciation and amortization		2,286		2,249
Premises and equipment, net			$1,556		$1,502

None of the Company's premises and equipment was subject to mortgage indebtedness (included in long-term debt) at December 31, 2016 and 2015. Net capital leases included in net premises and equipment was immaterial at both December 31, 2016 and 2015. Aggregate rent expense (principally for offices), including any contingent rent expense and sublease income, totaled $202 million, $200 million, and $206 million for the years ended December 31, 2016, 2015, and 2014, respectively. Depreciation and amortization expense on premises and equipment for the years ended December 31, 2016, 2015, and 2014 totaled $179 million, $175 million, and $176 million, respectively.

The Company previously completed sale-leaseback transactions consisting of branch properties and various individual office buildings. Upon completion of these transactions, the Company recognized a portion of the resulting gains and deferred the remainder to be recognized ratably over the expected term of the lease, predominantly 10 years, as an offset to net occupancy expense. To the extent that terms on these leases are extended, the remaining deferred gain would be amortized over the new lease term. Amortization of deferred gains on sale-leaseback transactions was $43 million, $54 million, and $53 million for the years ended December 31, 2016, 2015, and 2014, respectively. At December 31, 2016 and 2015, the remaining deferred gain associated with sale-leaseback transactions was $67 million and $108 million, respectively.

The Company has various obligations under capital leases and noncancelable operating leases for premises and equipment. The leases predominantly expire over the next 13 years, with the longest expiring in 2081. Many of these leases provide for periodic adjustment of rentals based on changes in various economic indicators, while others also include a renewal option.

The following table presents future minimum payments under noncancelable operating leases, net of sublease rentals, with initial terms in excess of one year at December 31, 2016.

(Dollars in millions)	Operating Leases
2017		$205
2018	193
2019	179
2020	159
2021	148
Thereafter	727
Total minimum lease payments		$1,611