Long-Term Debt

12 Months Ended

Dec. 31, 2021

Long-term Debt, Unclassified [Abstract]

LONG-TERM DEBT

LONG-TERM DEBT

Long-term debt is summarized as follows:

	December 31,
(In millions)	2021		2020
Subordinated notes	$	590	$	619
Senior notes	418		713
Finance lease obligations	4		4
Total	$	1,012	$	1,336

The preceding carrying values represent the par value of the debt adjusted for any unamortized premium or discount, unamortized debt issuance costs, and fair value hedge basis adjustments. The decrease in outstanding senior debt from the prior year was primarily due to the maturity of $281 million of 3-year, 3.50% senior notes during the third quarter of 2021.

During 2020, we terminated two receive-fixed interest rate swaps designated as hedges on senior notes, resulting in one outstanding receive-fixed interest rate swap designated as a hedge on a $500 million subordinated note with an interest rate of 3.25% at December 31, 2021. The outstanding swap constitutes a qualifying fair value hedging relationship. The terminated interest rate swaps adjusted the carrying value of the debt and this adjustment will be amortized into earnings until the original maturity date of the debt (see the subsequent Senior Notes schedule). For more information on derivatives designated as qualifying hedges, see Note 7 - Derivative Instruments and Hedging Activities.

Subordinated Notes

The following schedule presents key aspects of our subordinated notes outstanding at December 31, 2021:

(Dollar amounts in millions)	Subordinated notes
Coupon rate	Balance		Par amount		Maturity
6.95%	$	88	$	88	September 2028
3.25%	502		500		October 2029
Total	$	590	$	588

The 6.95% subordinated notes are unsecured, with interest payable quarterly; the earliest redemption date for these notes is September 15, 2023, after which the interest rate changes to an annual floating rate equal to 3mL+3.89%. The 3.25% subordinated notes are unsecured, interest is payable semi-annually, and the earliest redemption date is July 29, 2029.

Senior Notes

The following schedule presents key aspects of our issued senior notes outstanding at December 31, 2021:

(Dollar amounts in millions)	Senior notes
Coupon rate	Balance		Par amount		Maturity
4.50%	$	127	$	128	June 2023
3.35%	291		290		March 2022
Total	$	418	$	418

The senior notes are unsecured, with interest payable semi-annually. They were issued under a shelf registration filed with the Securities and Exchange Commission (“SEC”). The notes are not generally redeemable prior to maturity. In February 2022, we redeemed $290 million of the 4-year, 3.35% senior notes on the contractual call date one month prior to final maturity.

Maturities of Long-term Debt

The scheduled maturity of our long-term debt is presented in the following schedule:

(In millions)	Amount
2022	$	290
2023	128
2024	—
2025	—
2026	—
Thereafter	586
Total	$	1,004

The amounts presented in the previous schedule do not include basis adjustments related to terminated or active fair value hedges.