Huntington National Bank 2006 Annual Report Download - page 106

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED
10. AUTOMOBILE OPERATING LEASE ASSETS
For periods before May 2002, Huntington purchased vehicles, primarily automobiles, for lease to consumers under operating lease
arrangements. These operating lease arrangements required the lessee to make a fixed monthly rental payment over a specified
lease term, typically from 36 to 66 months. Rental income is earned by Huntington on these operating lease assets and reported
as non-interest income. The assets are depreciated over the term of the lease to the estimated fair value at the end of the lease.
The depreciation of these assets is reported as a component of non-interest expense. At the end of the lease, the asset is either
purchased by the lessee or returned to Huntington. The following is a summary of operating lease assets at December 31:
At December 31,
(in thousands of dollars) 2006 2005
Cost of operating lease assets (including residual values of $28,572 and $148,937, respectively) $ 90,940 $460,596
Deferred origination fees and costs (23) (272)
Accumulated depreciation (62,586) (271,321)
Total $ 28,331 $189,003
The future lease rental payments due from customers on operating lease assets at December 31, 2006, totaled $5.2 million and are
due as follows: $5.2 million in 2007 and less than $0.1 million thereafter. Depreciation expense for each of the years ended
December 31, 2006, 2005, and 2004 was $28.6 million, $94.8 million, and $215.0 million, respectively.
11. PREMISES AND EQUIPMENT
At December 31, premises and equipment stated at cost were comprised of the following:
At December 31,
(in thousands of dollars) 2006 2005
Land and land improvements $ 79,273 $ 67,787
Buildings 270,942 246,745
Leasehold improvements 154,097 149,466
Equipment 491,428 477,192
Total premises and equipment 995,740 941,190
Less accumulated depreciation and amortization (622,968) (580,513)
Net premises and equipment $ 372,772 $360,677
Depreciation and amortization charged to expense and rental income credited to net occupancy expense for the three years ended
December 31, 2006 were:
Year Ended December 31,
(in thousands of dollars) 2006 2005 2004
Total depreciation and amortization of premises and equipment $ 52,333 $50,355 $50,097
Rental income credited to occupancy expense 11,602 11,010 13,081
12. SHORT-TERM BORROWINGS
At December 31, short-term borrowings were comprised of the following:
At December 31,
(in thousands of dollars) 2006 2005
Federal funds purchased $ 520,354 $ 931,097
Securities sold under agreements to repurchase 1,111,959 888,985
Commercial paper 2,677 2,480
Other borrowings 41,199 66,698
Total short-term borrowings $ 1,676,189 $1,889,260
Other borrowings consist of borrowings from the U.S. Treasury, funds held as collateral from swap counterparties, and other
notes payable.
104