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 27 Operating Lease Commitments

Note 27 Operating Lease Commitments

At 31 December 2006, UBS was obligated under a number of non-cancellable operating leases for premises and equipment used primarily for banking purposes. The significant premises leases usually include renewal options and escalation clauses in line with general office rental market conditions as well as rent adjustments based on price indices. However, the lease agreements do not contain contingent rent payment clauses and purchase options. The leases also do not impose any restrictions on UBS's ability to pay dividends, engage in debt financing transactions or enter into further lease agreements.

The minimum commitments for non-cancellable leases of premises and equipment are presented as follows:

CHF million	31.12.06
Operating leases due
2007	1,003
2008	995
2009	924
2010	839
2011	722
2012 and thereafter	4,280
Subtotal commitments for minimum payments under operating leases	8,763
Less: Sublease rentals under non-cancellable leases	849
Net commitments for minimum payments under operating leases	7,914

CHF million	31.12.06	31.12.05	31.12.04
Gross operating lease expense	1,178	1,232	1,309
from continuing operations	1,165	1,092	1,197
from discontinued operations	13	140	112
Sublease rental income from continuing operations	56	51	43
Net operating lease expense	1,122	1,181	1,266
from continuing operations	1,109	1,041	1,154
from discontinued operations	13	140	112

Operating lease contracts include non-cancellable long-term leases of office buildings in most UBS locations. At 31 December 2006, the minimum lease commitments for sixteen office locations each exceeded CHF 100 million. Non-cancellable minimum lease commitments for four office locations in New Jersey, London, Zurich and New York each exceeded CHF 500 million.

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