SunTrust 2004 Annual Report Download - page 85

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
SUNTRUST 2004 ANNUAL REPORT 83
Note 9 / INTANGIBLE ASSETS
Under the provisions of SFAS No. 142, goodwill is tested for impair-
ment on an annual basis and as events or circumstances arise that
would more likely than not reduce fair value of a reporting unit
below its carrying amount. The Company completed its annual
review as of September 30, 2004, and determined there was no
impairment of goodwill as of this date.The changes in the carrying
amount of goodwill by reportable segment for the twelve months
ended December 31, 2004 and 2003 are as follows:
Note 7 / ALLOWANCE FOR LOAN LOSSES
Activity in the allowance for loan losses is summarized in the table below:
(Dollars in thousands) 2004 2003 2002
Balance at beginning of year $ 941,922 $ 930,114 $ 867,059
Allowance from acquisitions, dispositions
and other activity – net 173,844 9,324 15,531
Provision for loan losses 135,537 313,550 469,792
Loan charge-offs (316,081) (394,328) (490,117)
Loan recoveries 114,802 83,262 67,849
Balance at end of year $1,050,024 $ 941,922 $ 930,114
Note 8 / PREMISES AND EQUIPMENT
Premises and equipment at December 31 were as follows:
(Dollars in thousands) Useful Life 2004 2003
Land $ 446,760 $ 402,726
Buildings and improvements 2 – 40 years 1,544,566 1,391,864
Leasehold improvements 1 – 30 years 438,356 294,876
Furniture and equipment 1 – 20 years 1,378,395 1,231,944
Construction in progress 114,462 81,940
3,922,539 3,403,350
Less accumulated depreciation and amortization 2,062,124 1,808,043
Total premises and equipment $1,860,415 $1,595,307
Operating Capital
(Dollars in thousands) Leases Leases
2005 $121,300 $ 2,442
2006 110,108 2,305
2007 90,914 2,337
2008 74,956 2,372
2009 57,066 2,384
Thereafter 251,229 35,397
Total minimum lease payments 705,573 47,237
Amounts representing interest 25,742
Present value of net minimum lease payments $21,495
The carrying amounts of premises and equipment subject to mort-
gage indebtedness (included in long-term debt) were not signifi-
cant at December 31, 2004 and 2003.
Various Company facilities are leased under both capital and non-
cancelable operating leases with initial remaining terms in excess
of one year. Minimum payments, by year and in aggregate, as of
December 31, 2004 were as follows:
Net premises and equipment included $16.3 million and $11.5
million at December 31, 2004 and 2003, respectively, related to
capital leases.
Aggregate rent expense (principally for offices), including contin-
gent rent expense, amounted to $133.8 million, $124.7 million,
and $122.5 million for 2004, 2003 and 2002, respectively.