BB&T 2011 Annual Report Download - page 116

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The following table summarizes the pre-default balance for modifications that experienced a payment default during the
year ended December 31, 2011, that had been classified as restructurings during the previous 12 months. BB&T defines
payment default as movement of the restructuring to nonaccrual status, foreclosure or charge-off, whichever occurs first.
Year Ended
December 31, 2011
(Dollars in millions)
Commercial:
Commercial and industrial $ 39
Commercial real estate - other 92
Commercial real estate - residential ADC 80
Other lending subsidiaries —
Retail:
Direct retail lending 16
Revolving credit 15
Residential mortgage 31
Sales finance 2
Other lending subsidiaries 5
If a restructuring subsequently defaults, BB&T evaluates the restructuring for possible impairment. As a result, the related
allowance may be increased or charge-offs may be taken to reduce the carrying value of the loan.
NOTE 5. Premises and Equipment
A summary of premises and equipment is presented in the accompanying table:
December 31,
2011 2010
(Dollars in millions)
Land and land improvements $ 508 $ 495
Buildings and building improvements 1,220 1,180
Furniture and equipment 1,132 1,117
Leasehold improvements 521 499
Construction in progress 37 22
Capitalized leases on premises and equipment 52 41
Total 3,470 3,354
Less - accumulated depreciation and amortization (1,615) (1,514)
Net premises and equipment $ 1,855 $ 1,840
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.
BB&T has noncancelable leases covering certain premises and equipment. Total rent expense applicable to operating
leases was $199 million, $188 million and $210 million for 2011, 2010 and 2009, respectively. Rental income from
owned properties and subleases was $7 million, $8 million and $7 million for 2011, 2010 and 2009, respectively. Future
minimum lease payments for operating leases for the five years subsequent to 2011 are $184 million, $170 million, $158
million, $139 million and $123 million. The payments for 2017 and later years total $644 million.
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