Wells Fargo 2013 Annual Report Download - page 184

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.
(in millions)
Operating
leases
Capital
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:
(in millions)
Dec. 31,
2013
Dec. 31,
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
(1) Represents low income housing tax credit investments.
(2) Represents nonmarketable equity investments for which we have elected the
fair value option. See Note 17 for additional information.
(3) These are foreclosed real estate resulting from government insured/guaranteed
loans. Both principal and interest related to these foreclosed real estate assets
are collectible because the loans were predominantly insured by the FHA or
guaranteed by the VA.
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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