SunTrust 2012 Annual Report Download - page 145

Notes to Consolidated Financial Statements (Continued)
129
NOTE 8 - PREMISES AND EQUIPMENT
Premises and equipment as of December 31 consisted of the following:
(Dollars in millions) Useful Life 2012 2011
Land Indefinite $349 $358
Buildings and improvements 2 - 40 years 1,041 1,033
Leasehold improvements 1 - 30 years 622 580
Furniture and equipment 1 - 20 years 1,357 1,322
Construction in progress 111 105
Total premises and equipment 3,480 3,398
Less accumulated depreciation and amortization 1,916 1,834
Premises and equipment, net $1,564 $1,564
The carrying amounts of premises and equipment subject to mortgage indebtedness (included in long-term debt) were
immaterial as of December 31, 2012 and 2011.
Various Company facilities are leased under both capital and noncancelable operating leases with initial remaining terms in
excess of one year. Minimum payments, by year and in aggregate, as of December 31, 2012 were as follows:
(Dollars in millions)
Operating
Leases
Capital
Leases
2013 $214 $2
2014 202 2
2015 185 2
2016 177 2
2017 154 2
Thereafter 377 5
Total minimum lease payments $1,309 15
Amounts representing interest 4
Present value of net minimum lease payments $11
Net premises and equipment included $6 million and $7 million related to capital leases as of December 31, 2012 and 2011,
respectively. Aggregate rent expense (principally for offices), including contingent rent expense and sublease income, totaled
$219 million, $184 million, and $179 million for the years ended December 31, 2012, 2011, and 2010, respectively. Depreciation
and amortization expense for the years ended December 31, 2012, 2011, and 2010 totaled $188 million, $181 million, and
$177 million, respectively.
NOTE 9 – GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
As discussed in Note 20, "Business Segment Reporting," the Company reorganized its management reporting structure in the
first quarter of 2012, including its segment reporting structure and goodwill reporting units. Goodwill was reassigned to the
new reporting units using a relative fair value allocation. After the allocation, Consumer Banking and Private Wealth
Management's goodwill balance was comprised of $3.6 billion and $335 million previously recorded within the Retail Banking
and W&IM segments, respectively. Wholesale Banking's goodwill balance was comprised of $1.3 billion, $47 million, $928
million, and $180 million previously recorded within the Retail Banking, W&IM, Diversified Commercial Banking, and CIB
segments, respectively.