Huntington National Bank 2004 Annual Report Download - page 115

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED
7. OPERATING LEASE ASSETS
For periods before May 2002, Huntington purchased vehicles, primarily automobiles, for lease to consumers under operating lease
arrangements. These operating lease arrangements required the lessee to make a fixed monthly rental payment over a specified lease
term, typically from 36 to 66 months. These vehicles, net of accumulated depreciation, were recorded as operating lease assets in the
consolidated balance sheet. Rental income is earned by Huntington on the operating lease assets and reported as non-interest income.
These vehicles are depreciated over the term of the lease to the estimated fair value of the vehicle at the end of the lease. The
depreciation of these vehicles is reported as a component of non-interest expense. At the end of the lease, the vehicle is either
purchased by the lessee or returned to Huntington. The following is a summary of operating lease assets at December 31:
At December 31,
(in thousands of dollars) 2004 2003
Cost of operating lease assets (including residual value of $406,965 and $814,078, respectively) $1,173,616 $2,136,502
Deferred origination fees and costs (1,138) (2,117)
Accumulated depreciation (585,168) (873,945)
Total $ 587,310 $1,260,440
The future lease rental payments due from customers on operating lease assets at December 31, 2004, totaled $259.8 million and are
due as follows: $164.7 million in 2005; $82.2 million in 2006; and $12.9 million in 2007. Depreciation expense for each of the years
ended December 31, 2004, 2003, and 2002 was $216.4 million, $350.6 million, and $463.8 million, respectively.
8. PREMISES AND EQUIPMENT
At December 31, premises and equipment stated at cost were comprised of the following:
At December 31,
(in thousands of dollars) 2004 2003
Land and land improvements $ 63,406 $ 59,347
Buildings 237,071 216,076
Leasehold improvements 142,764 127,830
Equipment 467,674 477,385
Total premises and equipment 910,915 880,638
Less accumulated depreciation and amortization (555,800) (530,926)
Net Premises and Equipment $ 355,115 $ 349,712
Depreciation and amortization charged to expense and rental income credited to occupancy expense for the year ended
December 31 were:
Year Ended December 31,
(in thousands of dollars) 2004 2003 2002
Total depreciation and amortization of premises and equipment $50,097 $46,746 $46,319
Rental income credited to occupancy expense 13,081 14,837 15,868
9. GOODWILL AND OTHER INTANGIBLE ASSETS
At December 31, goodwill and other intangible assets, net of accumulated amortization, were comprised of:
At December 31,
(in thousands of dollars) 2004 2003
Goodwill $ 210,155 $ 210,539
Favorable lease intangible 5,652 6,470
Balance, end of period $ 215,807 $ 217,009
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