Senior Notes and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Summary of Senior Notes Outstanding

A summary of senior notes outstanding at December 31, 2016 and 2015 is presented below.

TABLE 74: SENIOR NOTES

	DECEMBER 31,
($ In Millions)	RATE		2016		2015
Corporation-Senior Notes(1)(4)
Fixed Rate Due Nov. 2020(5)	3.45	%	$	499.4	$	499.7
Fixed Rate Due Aug. 2021(6)	3.38		498.5		498.7
Fixed Rate Due Aug. 2022(7)	2.38		498.7		499.0
Total Senior Notes			$	1,496.6	$	1,497.4

Summary of Long-Term Debt Outstanding

A summary of long-term debt outstanding at December 31, 2016 and 2015 is presented below.

TABLE 75: LONG-TERM DEBT

	DECEMBER 31,
($ In Millions)	2016		2015
Bank-Subordinated Debt(1)(4)
5.85% Notes due Nov. 2017(2)(10)	$	207.6	$	214.5
6.50% Notes due Aug. 2018(2)(8)(10)	315.3		326.7
Total Bank-Subordinated Debt	522.9		541.2
Corporation-Subordinated 3.95% Notes due Oct. 2025(1)(4)(9)(10)	785.0		800.4
Capital Lease Obligations(3)	23.0		29.7
Total Long-Term Debt	$	1,330.9	$	1,371.3
Long-Term Debt Qualifying as Risk-Based Capital	$	809.3	$	909.2

(1) Not redeemable prior to maturity.

(2) Under the terms of its current Offering Circular dated November 6, 2013, the Bank has the ability to offer from time to time its senior bank notes in an aggregate principal amount of up to $4.5 billion at any one time outstanding and up to an additional $1.0 billion of subordinated notes. Each senior note will mature from 30 days to fifteen years, and each subordinated note will mature from five years to fifteen years, following its date of original issuance. Each note will mature on such date as selected by the initial purchaser and agreed to by the Bank.

(3) Refer to Note 10, “Lease Commitments.”

(4) As of December 31, 2016, debt issue costs of $1.1 million and $1.0 million are included as a direct deduction from the carrying amount of Senior Notes and Long-Term Debt, respectively. As of December 31, 2015, debt issue costs of $2.6 million were recorded as an asset. Debt issue costs are amortized on a straight-line basis over the life of the Note.

(5) Notes issued at a discount of 0.117%.

(6) Notes issued at a discount of 0.437%

(7) Notes issued at a discount of 0.283%

(8) Notes issued at a discount of 0.02%

(9) Notes issued at a discount of 0.114%

(10) Interest rate swap contracts were entered into to modify the interest expense on these subordinated notes from fixed rates to floating rates. The swaps are recorded as fair value hedges and at December 31, 2016, increases in the carrying values of subordinated notes outstanding of $59.6 million were recorded. As of December 31, 2015, net adjustments in the carrying values of subordinated notes outstanding of $92.4 million were recorded.