Premises, Property, and Equipment Property Plant And Equipment (Notes)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 9 - PREMISES, PROPERTY, AND EQUIPMENT

Premises, property, and equipment at December 31 consisted of the following:



(Dollars in millions)	Useful Life (in years)	2018		2017
Land	Indefinite		$310		$321
Buildings and improvements	1 - 50	1,059		1,047
Leasehold improvements	1 - 30	758		691
Furniture and equipment	1 - 20	1,429		1,430
Software ¹	1 - 5	1,890		1,671
Construction and software in progress		351		488
Total premises, property, and equipment		5,797		5,648
Less: Accumulated depreciation and amortization		3,773		3,595
Premises, property, and equipment, net			$2,024		$2,053


¹	Beginning October 1, 2018, the Company reclassified capitalized software and related accumulated amortization previously presented in Other assets to Premises, property, and equipment, net, on the Consolidated Balance Sheets. Prior periods have been revised to conform to the current presentation for comparability.

None of the Company's premises, property, and equipment was subject to mortgage indebtedness at December 31, 2018 and 2017. Capital leases included in net premises, property, and equipment was immaterial at both December 31, 2018 and 2017. Aggregate rent expense (principally for offices), including any contingent rent expense and sublease income, totaled $179 million, $201 million, and $202 million for the years ended December 31, 2018, 2017, and 2016, respectively. Depreciation and amortization expense on premises, property, and equipment for the years ended December 31, 2018, 2017, and 2016 totaled $333 million, $299 million, and $290 million, respectively. See Note 1, “Significant Accounting Policies,” for the Company's accounting policies regarding premises, property, and equipment and related depreciation and amortization.

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 on the Consolidated Statements of Income. Amortization of deferred gains on sale-leaseback transactions totaled $6 million, $17 million, and $43 million for the years ended December 31, 2018, 2017, and 2016, respectively. At December 31, 2018 and 2017, the remaining deferred gain associated with sale-leaseback transactions was $42 million and $49 million, respectively. In connection with the Company's January 1, 2019 adoption of ASC Topic 842, Leases, the remaining deferred gain on sale-leaseback transactions was recognized in retained earnings through a cumulative effect adjustment. See Note 1, “Significant Accounting Policies,” for additional information.

The Company has various obligations under noncancelable operating leases for premises, property, and equipment. The leases predominantly expire over the next 20 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 with initial terms in excess of one year at December 31, 2018:



(Dollars in millions)	Operating Leases
2019		$204
2020	195
2021	186
2022	171
2023	148
Thereafter	585
Total minimum lease payments		$1,489