WELLS FARGO & COMPANY/MN | 2013 | FY | 3


Note 7: Premises, Equipment, Lease Commitments and Other Assets       

        
      December 31,
(in millions)  2013 2012
Land$ 1,759 1,832
Buildings  7,931 7,670
Furniture and equipment  7,517 7,194
Leasehold improvements  1,939 1,839
Premises and equipment leased   
 under capital leases  82 122
  Total premises and equipment  19,228 18,657
Less: Accumulated depreciation   
 and amortization  10,072 9,229
   Net book value,   
    premises and equipment$ 9,156 9,428
        

Depreciation and amortization expense for premises and equipment was $1.2 billion, $1.3 billion and $1.4 billion in 2013, 2012 and 2011, respectively.

Dispositions of premises and equipment, included in noninterest expense, resulted in a net loss of $15 million in 2013, a net gain of $7 million in 2012 and a net loss of $17 million in 2011, respectively.

We have obligations under a number of noncancelable operating leases for premises and equipment. The leases predominantly expire over the next 15 years, with the longest expiring in 2105, 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, 2013.

       
    Operating Capital
(in millions) leases leases
Year ended December 31,    
2014$ 1,155  3
2015  1,052  2
2016  908  3
2017  778  3
2018  648  3
Thereafter  2,812  13
 Total minimum lease payments$ 7,353  27
Executory costs  $ (9)
Amounts representing interest    (7)
Present value of net minimum    
 lease payments  $ 11

Operating lease rental expense (predominantly for premises), net of rental income, was $1.3 billion, $1.1 billion and $1.2 billion in 2013, 2012 and 2011, respectively.

The components of other assets were:

         
       Dec. 31,Dec. 31,
(in millions)  2013 2012
Nonmarketable equity investments:  
 Cost method:   
  Private equity$ 2,308 2,572
  Federal bank stock  4,670 4,227
   Total cost method  6,978 6,799
 Equity method:   
  LIHTC investments (1)  6,209 4,767
  Private equity and other  5,782 6,156
   Total equity method  11,991 10,923
 Fair value (2)  1,386 -
    Total nonmarketable    
     equity investments 20,355 17,722
Corporate/bank-owned life insurance  18,738 18,649
Accounts receivable  21,422 25,828
Interest receivable  5,019 5,006
Core deposit intangibles  4,674 5,915
Customer relationship and    
 other amortized intangibles  1,084 1,352
Foreclosed assets:   
 Government insured/guaranteed (3)  2,093 1,509
 Non-government insured/guaranteed  1,844 2,514
Operating lease assets  2,047 2,001
Due from customers on acceptances 279 282
Other  8,787 12,800
     Total other assets$ 86,342 93,578
         

 

Income (expense) related to nonmarketable equity investments was:

 

         
      Year ended December 31,
(in millions)  2013 2012 2011
Net realized gains from nonmarketable   
 equity investments$ 1,158 1,086 842
All other  (287) (185) (298)
 Total$ 871 901 544
         

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