Wells Fargo 2008 Annual Report Download - page 112


(in millions) Year ended December 31,
2008 2007 2006
Net gains from private equity
investments $265 $598 $393
Net gains (losses) from all other
nonmarketable equity investments (10) 4 20
Net gains from nonmarketable
equity investments $255 $602 $413
Note 7: Premises, Equipment, Lease Commitments and Other Assets
Operating lease rental expense (predominantly for premises),
net of rental income, was $709 million, $673 million and
$631 million in 2008, 2007 and 2006, respectively.
The components of other assets were:
Depreciation and amortization expense for premises and
equipment was $861 million, $828 million and $737 million
in 2008, 2007 and 2006, respectively.
Net gains on dispositions of premises and equipment,
included in noninterest expense, were $22 million, $3 million
and $13 million in 2008, 2007 and 2006, respectively.
We have obligations under a number of noncancelable
operating leases for premises and equipment. The terms of
these leases are primarily up to 15 years, with the longest up
to 97 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 capital leases
and noncancelable operating leases, net of sublease rentals,
with terms greater than one year as of December 31, 2008.
Income related to nonmarketable equity investments was:
(in millions) December 31,
2008 2007
Land $ 2,029 $ 707
Buildings 8,232 4,088
Furniture and equipment 5,589 4,526
Leasehold improvements 1,309 1,258
Premises and equipment leased
under capital leases 110 67
Total premises and equipment 17,269 10,646
Less: Accumulated depreciation
and amortization 6,000 5,524
Net book value, premises and equipment $11,269 $ 5,122
(in millions) Operating Capital
leases leases
Year ended December 31,
2009 $ 1,408 $ 43
2010 2,128 42
2011 1,042 9
2012 926 3
2013 797 3
Thereafter 3,995 15
Total minimum lease payments $10,296 115
Executory costs (2)
Amounts representing interest (10)
Present value of net minimum
lease payments $103
(in millions) December 31,
2008 2007
Nonmarketable equity investments:
Cost method:
Private equity investments $ 2,706 $ 2,024
Federal bank stock 6,106 1,925
Other 2,292 1,907
Total cost method 11,104 5,856
Equity method 4,400 1,074
Principal investments (1) 1,278 —
Total nonmarketable
equity investments 16,782 6,930
Operating lease assets 2,251 2,218
Accounts receivable 22,493 10,913
Interest receivable 5,746 2,977
Core deposit intangibles 11,999 435
Customer relationship and other intangibles 3,516 319
Foreclosed assets:
GNMA loans (2) 667 535
Other 1,526 649
Due from customers on acceptances 615 62
Other 44,206 12,107
Total other assets $109,801 $37,145
(1) Principal investments are recorded at fair value with realized and unrealized
gains and losses included in net gains (losses) from equity investments in the
income statement.
(2) Consistent with regulatory reporting requirements, foreclosed assets include
foreclosed real estate securing GNMA loans. Both principal and interest for
GNMA loans secured by the foreclosed real estate are collectible because the
GNMA loans are insured by the Federal Housing Administration or guaranteed
by the Department of Veterans Affairs.