Wells Fargo 2006 Annual Report Download - page 87

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85
(in millions) Year ended December 31,
2006 2005 2004
Net gains from private equity
investments $393 $351 $319
Net gains from all other nonmarketable
equity investments 20 43 33
Net gains from nonmarketable
equity investments $413 $394 $352
Note 7: Premises, Equipment, Lease Commitments and Other Assets
Operating lease rental expense (predominantly for premises),
net of rental income, was $631 million, $583 million and
$586 million in 2006, 2005 and 2004, respectively.
The components of other assets were:
Depreciation and amortization expense for premises and
equipment was $737 million, $810 million and $654 million
in 2006, 2005 and 2004, respectively.
Net gains (losses) on dispositions of premises and equipment,
included in noninterest expense, were $13 million, $56 million
and $(5) million in 2006, 2005 and 2004, respectively.
We have obligations under a number of noncancelable
operating leases for premises and equipment. The terms of
these leases are predominantly up to 15 years, with the longest
up to 73 years, and many provide for periodic adjustment
of rentals based on changes in various economic indicators.
Some leases also include a renewal option. The following table
provides the future minimum payments under noncancelable
operating leases and capital leases, net of sublease rentals,
with terms greater than one year as of December 31, 2006.
Income related to nonmarketable equity investments was:
(in millions) December 31,
2006 2005
Land $ 657 $ 649
Buildings 3,891 3,617
Furniture and equipment 3,786 3,425
Leasehold improvements 1,117 1,115
Premises and equipment leased
under capital leases 60 60
Total premises and equipment 9,511 8,866
Less: Accumulated depreciation
and amortization 4,813 4,449
Net book value,premises and equipment $4,698 $4,417
(in millions) Operating leases Capital leases
Year ended December 31,
2007 $ 567 $ 3
2008 474 2
2009 396 1
2010 321 1
2011 253 1
Thereafter 1,135 16
Total minimum lease payments $3,146 24
Executory costs (2)
Amounts representing interest (10)
Present value of net minimum
lease payments $ 12
(in millions) December 31,
2006 2005
Nonmarketable equity investments:
Private equity investments $ 1,671 $ 1,537
Federal bank stock 1,326 1,402
All other 2,240 2,151
Total nonmarketable equity
investments (1) 5,237 5,090
Operating lease assets 3,091 3,414
Accounts receivable 7,522 11,606
Interest receivable 2,570 2,279
Core deposit intangibles 383 489
Foreclosed assets:
GNMA loans (2) 322 —
Other 423 191
Due from customers on acceptances 103 104
Other 9,892 9,299
Total other assets $29,543 $32,472
(1) At December 31, 2006 and 2005, $4.5 billion and $4.4 billion, respectively,
of nonmarketable equity investments, including all federal bank stock,
were accounted for at cost.
(2) As a result of a change in regulatory reporting requirements effective January 1,
2006, foreclosed assets included foreclosed real estate securing Government
National Mortgage Association (GNMA) loans. These assets are fully collectible
because the corresponding GNMA loans are insured by the Federal Housing
Administration or guaranteed by the Department of Veterans Affairs. Such
assets were included in accounts receivable at December 31, 2005.
85