BB&T 2009 Annual Report Download - page 116

BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 6. Premises and Equipment
A summary of premises and equipment is presented in the accompanying table:
December 31,
2009 2008
(Dollars in millions)
Land and land improvements $ 429 $ 420
Buildings and building improvements 1,039 1,008
Furniture and equipment 1,043 1,012
Leasehold improvements 464 410
Construction in progress 17 69
Capitalized leases on premises and equipment 63
Total 2,998 2,922
Less—accumulated depreciation and amortization (1,415) (1,342)
Net premises and equipment $ 1,583 $ 1,580
Useful lives for premises and equipment are as follows: buildings and building improvements—40 years;
furniture and equipment—5 to 10 years; leasehold improvements—estimated useful life or lease term, including
certain renewals which were deemed probable at lease inception, whichever is less; and capitalized leases on
premises and equipment—estimated useful life or remaining term of tenant lease, whichever is less. Certain
properties are pledged to secure mortgage indebtedness totaling $2 million at December 31, 2009 and 2008.
BB&T has noncancelable leases covering certain premises and equipment. Many of the leases have one or
more renewal options, generally for periods of two to five years. Total rent expense applicable to operating leases
was $210 million, $164 million and $159 million for 2009, 2008 and 2007, respectively. Rental income from owned
properties and subleases was $7 million, $7 million and $8 million for 2009, 2008 and 2007, respectively. Future
minimum lease payments for operating leases for the five years subsequent to 2009 are $172 million, $153 million,
$127 million, $112 million and $96 million. The payments for 2015 and later years total $539 million.
Branch Bank did not immediately acquire the real estate, banking facilities, furniture or equipment of
Colonial as part of the purchase and assumption agreement. However, Branch Bank has the option to purchase
the real estate and furniture and equipment from the FDIC. At December 31, 2009, all Colonial banking facilities
and equipment were leased from the FDIC on a month-to-month basis.
NOTE 7. Goodwill and Other Intangible Assets
The changes in the carrying amounts of goodwill attributable to each of BB&T’s operating segments for the
years ended December 31, 2009 and 2008 are reflected in the table below. To date, there have been no goodwill
impairments recorded by BB&T.
Goodwill Activity by Operating Segment
Banking
Network
Residential
Mortgage
Banking Sales Finance Specialized Lending Insurance Services Financial Services All Other Total
(Dollars in millions)
Balance January 1, 2008 $4,035 $ 7 $ 93 $100 $ 741 $192 $26 $5,194
Acquired goodwill, net — — — 1 246 — — 247
Contingent consideration — — — — 48 — — 48
Other adjustments 3 — — (3) (6) — — (6)
Balance December 31, 2008 4,038 7 93 98 1,029 192 26 5,483
Acquired goodwill, net 533 — — 10 29 — — 572
Contingent consideration — — — — 2 — — 2
Other adjustments (2) — — 2 (4) — — (4)
Balance, December 31, 2009 $4,569 $ 7 $ 93 $110 $1,056 $192 $26 $6,053
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