Long-Term Borrowings

3 Months Ended

Mar. 31, 2020

Long-term borrowings consist of borrowings having original maturities of one year or more. The following table provides a summary of the Company's long-term borrowings and weighted-average interest rates on outstanding balances (dollars in millions):

	March 31, 2020					December 31, 2019
	Maturity	Interest Rate	Weighted-Average Interest Rate	Outstanding Amount		Outstanding Amount
Securitized Debt
Fixed-rate asset-backed securities⁽¹⁾	2020-2024	1.85%-3.32%	2.50%	$	8,771	$	8,609
Floating-rate asset-backed securities⁽²⁾	2020-2024	0.93%-1.30%	1.09%	5,016		5,515
Total Discover Card Master Trust I and Discover Card Execution Note Trust				13,787		14,124

Floating-rate asset-backed security⁽³⁾⁽⁴⁾	2031	4.25%	4.25%	152		160
Total student loan securitization trust				152		160
Total long-term borrowings - owed to securitization investors				13,939		14,284

Discover Financial Services (Parent Company)
Fixed-rate senior notes	2022-2027	3.75%-5.20%	4.16%	3,306		3,296
Fixed-rate retail notes	2020-2031	2.85%-4.60%	3.73%	338		340

Discover Bank
Fixed-rate senior bank notes⁽¹⁾	2020-2030	2.45%-4.65%	3.75%	7,496		6,785
Fixed-rate subordinated bank notes	2020-2028	4.68%-7.00%	5.84%	1,019		996
Total long-term borrowings				$	26,098	$	25,701


(1)	The Company uses interest rate swaps to hedge portions of these long-term borrowings against changes in fair value attributable to changes in LIBOR or Overnight Index Swap ("OIS") Rate. Use of these interest rate swaps impacts carrying value of the debt. See Note 14: Derivatives and Hedging Activities.


(2)	Discover Card Execution Note Trust floating-rate asset-backed securities include issuances with the following interest rate terms: 1-month LIBOR + 23 to 60 basis points as of March 31, 2020.


(3)	The student loan securitization trust floating-rate asset-backed security includes an issuance with the following interest rate term: Prime rate + 100 basis points as of March 31, 2020.


(4)	Repayment of this debt is dependent upon the timing of principal and interest payments on the underlying student loans. The date shown represents final maturity date.

The following table summarizes long-term borrowings maturing over the remainder of this year, over each of the next four years, and thereafter (dollars in millions):

	March 31, 2020
2020	$	4,759
2021	4,255
2022	5,204
2023	3,418
2024	2,630
Thereafter	5,832
Total	$	26,098

The Company has access to committed borrowing capacity through private securitizations to support the funding of its credit card loan receivables. As of March 31, 2020, the total commitment of secured credit facilities through private providers was $6.0 billion, none of which was drawn as of March 31, 2020. Access to the unused portions of the secured credit facilities is subject to the terms of the agreements with each of the providers, which have various expirations in calendar years 2021 through 2022. Borrowings outstanding under each facility bear interest at a margin above LIBOR or the asset-backed commercial paper costs of each individual conduit provider. The terms of each agreement provide for a commitment fee to be paid on the unused capacity and include various affirmative and negative covenants, including performance metrics and legal requirements similar to those required to issue any term securitization transaction.