NOTE 8 - PREMISES AND EQUIPMENT

Premises and equipment at December 31 consisted of the following:



(Dollars in millions)	Useful Life (in years)	2017		2016
Land	Indefinite		$321		$320
Buildings and improvements	1 - 40	1,047		1,028
Leasehold improvements	1 - 30	691		645
Furniture and equipment	1 - 20	1,430		1,492
Construction in progress		488		357
Total premises and equipment		3,977		3,842
Less: Accumulated depreciation and amortization		2,243		2,286
Premises and equipment, net			$1,734		$1,556

None of the Company's premises and equipment was subject to mortgage indebtedness (included in long-term debt) at December 31, 2017 and 2016. Capital leases included in net premises and equipment was immaterial at both December 31, 2017 and 2016. Aggregate rent expense (principally for offices), including any contingent rent expense and sublease income, totaled $201 million, $202 million, and $200 million for the years ended December 31, 2017, 2016, and 2015, respectively. Depreciation and amortization expense on premises and equipment for the years ended December 31, 2017, 2016, and 2015 totaled $175 million, $179 million, and $175 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 $17 million, $43 million, and $54 million for the years ended December 31, 2017, 2016, and 2015, respectively. At December 31, 2017 and 2016, the remaining deferred gain associated with sale-leaseback transactions was $49 million and $67 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 21 years, with the longest lease term having an expiration date in 2081. Many of these leases include a renewal option and some provide for periodic adjustment of rentals based on changes in various economic indicators.

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, 2017.



(Dollars in millions)	Operating Leases
2018		$205
2019	199
2020	179
2021	167
2022	151
Thereafter	657
Total minimum lease payments		$1,558