UBS AG

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	Note 1 Summary of Significant Accounting Policies

	Note 2

	Note 3 Net Interest and Trading Income

	Note 4 Net Fee and Commission Income

	Note 5 Other Income

	Note 6 Personnel Expenses

	Note 7 General and Administrative Expenses

	Note 8 Earnings per Share (EPS) and Shares Outstanding

	Note 9 Financial Assets Designated at Fair Value

	Note 10

	Note 11 Securities Borrowing, Securities Lending, Repurchase and Reverse Repurchase Agreements

	Note 12 Trading Portfolio

	Note 13 Financial Investments Available-for-Sale

	Note 14 Investments in Associates

	Note 15 Property and Equipment

	Note 16 Goodwill and Other Intangible Assets

	Note 17 Other Assets

	Note 18 Due to Banks and Customers

	Note 19 Financial Liabilities Designated at Fair Value and Debt Issued

	Note 20 Other Liabilities

	Note 21 Provisions

	Note 22 Income Taxes

	Note 23 Derivative Instruments and Hedge Accounting

	Note 24 Pledgeable Off-Balance Sheet Securities

	Note 25 Fiduciary Transactions

	Note 26 Commitments and Contingent Liabilities

	Note 27 Operating Lease Commitments

	Note 28 Pledged Assets

	Note 29 Financial Instruments Risk Position

	Note 30 Fair Value of Financial Instruments and Continued Recognition of Transferred Financial Assets

	Note 31 Pension and Other Post-Retirement Benefit Plans

	Note 32 Equity Participation and Other Compensation Plans

	Note 33 Related Parties

	Note 34 Post-Balance Sheet Events

	Note 35 Significant Subsidiaries and Associates

	Note 36 Invested Assets and Net New Money

	Note 37 Business Combinations

	Note 38 Discontinued Operations

	Note 39 Currency Translation Rates

	Note 40 Swiss Banking Law Requirements

	Note 41 Reconciliation of International Financial Reporting Standards (IFRS) to United States Generally Accepted Accounting Principles (US GAAP)

	Note 42 Additional Disclosures Required under US GAAP and SEC Rules





	Parent Bank Review

	Financial Statements

	Accounting Principles

	Additional Income Statement Information

	Additional Balance Sheet Information

	Off-Balance Sheet and Other Information





	A - Introduction

	B - Selected Financial Data

	C - Information on the Company

	D - Information Required by Industry Guide 3

UBS Homepage > Analysts & Investors > Annual Reporting 2006 > Financial Report > Note 15 Property and Equipment

Note 15 Property and Equipment

At historical cost less accumulated depreciation
CHF million	Own-used properties	Leasehold improvements	IT, software and com- munication	Other machines and equipment	Plant and manu- facturing equipment	Projects in progress	31.12.06	31.12.05
Historical cost
Balance at the beginning of the year	9,446	3,050	4,261	1,596	2,904	413	21,670	21,428
Additions	140	206	662	240	36	509	1,793	1,865
Additions from acquired companies	0	5	19	4	1	0	29	116
Disposals / write-offs ¹	(407)	(110)	(539)	(817)	(2,960)	(82)	(4,915)	(2,363)
Reclassifications	102	119	116	(97)	18	(284)	(26)	50
Foreign currency translation	5	(60)	(42)	(33)	54	2	(74)	574
Balance at the end of the year	9,286	3,210	4,477	893	53	558	18,477	21,670
Accumulated depreciation
Balance at the beginning of the year	4,781	1,999	3,474	1,349	672	0	12,275	11,998
Depreciation ²	244	237	676 ⁴	103	65	0	1,325	1,556
Disposals / write-offs ¹	(108)	(86)	(225)	(807)	(716)	0	(1,942)	(1,702)
Reclassifications	11	(18)	0	(3)	0	0	(10)	32
Foreign currency translation	2	(36)	(38)	(19)	21	0	(70)	391
Balance at the end of the year	4,930	2,096	3,887	623	42	0	11,578	12,275
Net book value at the end of the year³	4,356	1,114	590	270	11	558	6,899	9,395
1 Includes write-offs of fully depreciated assets. 2 Depreciation expense of CHF 62 million and CHF 295 million is related to discontinued operations for 2006 and 2005 respectively. 3 Fire insurance value of property and equipment is CHF 13,596 million (2005: CHF 16,050 million). 4 Includes a CHF 34 million software impairment.

At fair value
CHF million	31.12.06	31.12.05
Balance at the beginning of the year	28	80
Additions	0	26
Sales	(14)	(25)
Revaluations	0	0
Reclassifications	0	(55)
Foreign currency translation	0	2
Balance at the end of the year	14	28

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