Comerica 2014 Annual Report Download - page 115

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Comerica Incorporated and Subsidiaries
F-78
NOTE 6 - PREMISES AND EQUIPMENT
A summary of premises and equipment by major category follows:
(in millions)
December 31 2014 2013
Land $ 88 $ 90
Buildings and improvements 808 830
Furniture and equipment 508 515
Total cost 1,404 1,435
Less: Accumulated depreciation and amortization (872)(841)
Net book value $ 532 $ 594
The Corporation conducts a portion of its business from leased facilities and leases certain equipment. Rental expense
for leased properties and equipment amounted to $89 million, $78 million and $81 million in 2014, 2013 and 2012, respectively.
Rental expense in 2014 included approximately $10 million of lease termination charges. As of December 31, 2014, future minimum
rental payments under operating leases were as follows:
(in millions)
Years Ending December 31
2015 $ 73
2016 67
2017 58
2018 51
2019 42
Thereafter 182
Total $ 473
NOTE 7 - GOODWILL AND CORE DEPOSIT INTANGIBLES
The following table summarizes the carrying value of goodwill for the years ended December 31, 2014, 2013 and 2012.
(in millions)
December 31 2014 2013 2012
Business Bank $ 380 $ 380 $ 380
Retail Bank 194 194 194
Wealth Management 61 61 61
Total $ 635 $ 635 $ 635
The Corporation performs its annual evaluation of goodwill impairment in the third quarter of each year and on an interim
basis if events or changes in circumstances between annual tests indicate goodwill might be impaired. In 2014 and 2013, the annual
test of goodwill impairment was performed as of the beginning of the third quarter. At the conclusion of the first step of the annual
and interim goodwill impairment tests performed in 2014 and 2013 the estimated fair values of all reporting units exceeded their
carrying amounts, including goodwill, indicating that goodwill was not impaired. There have been no events since the annual test
performed in the third quarter 2014 that would indicate that it was more likely than not that goodwill had become impaired.
A summary of core deposit intangible carrying value and related accumulated amortization follows:
(in millions)
December 31 2014 2013
Gross carrying amount $ 34 $ 34
Accumulated amortization (21)(18)
Net carrying amount $ 13 $ 16
The Corporation recorded amortization expense related to the core deposit intangible of $3 million and $4 million for the
years ended December 31, 2014 and 2013, respectively. At December 31, 2014, estimated future amortization expense was as
follows: