Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Components of Long-Term Debt

The following table presents the components of our long-term debt, net of unamortized discounts and adjustments related to hedging with derivative financial instruments. We use interest rate swaps and caps, which modify the repricing characteristics of certain long-term debt, to manage interest rate risk. For more information about such financial instruments, see Note 9 (“Derivatives and Hedging Activities”).

December 31,
dollars in millions	2016		2015
Senior medium-term notes due through 2021 (a)	$	2,799	$	2,817
7.25% Subordinated notes due 2021 (b)	358		—
6.75% Senior notes due 2020 (b)	338		—
1.586% Subordinated notes due 2028 (c)	162		162
6.875% Subordinated notes due 2029 (c)	111		114
7.750% Subordinated notes due 2029 (c)	141		147
Other subordinated notes (d)	78		—
Total parent company	3,987		3,240
Senior medium-term notes due through 2039 (e)	6,715		5,242
3.18% Senior remarketable notes due 2027 (f)	193		183
5.45% Subordinated notes due 2016 (f)	—		503
5.70% Subordinated notes due 2017 (f)	207		215
4.625% Subordinated notes due 2018 (f)	102		103
3.40% Subordinated notes due 2026 (f)	567		—
6.95% Subordinated notes due 2028 (f)	299		298
Secured borrowing due through 2021 (g)	68		134
Federal Home Loan Bank advances due through 2036 (h)	126		166
Investment Fund Financing due through 2052 (i)	100		100
Obligations under Capital Leases due through 2032 (j)	20		—
Total subsidiaries	8,397		6,944
Total long-term debt	$	12,384	$	10,184

(a) Senior medium-term notes had a weighted-average interest rate of 3.57% at December 31, 2016, and 3.58% at December 31, 2015. These notes had fixed interest rates at December 31, 2016, and December 31, 2015. These notes may not be redeemed prior to their maturity dates.

(b) These notes are all obligations of KeyCorp and may not be redeemed prior to their maturity dates.

(c) See Note 20 (“Trust Preferred Securities Issued by Unconsolidated Subsidiaries”) for a description of these notes.

(d) These subordinated notes represent seven trust preferred debentures acquired in the First Niagara acquisition. These notes have different interest rates ranging from 2.167% to 10.875% with maturity dates between 2030 and 2037. See Note 20 (“Trust Preferred Securities Issued by Unconsolidated Subsidiaries”) for a description of these notes.

(e) Senior medium-term notes had weighted-average interest rates of 1.93% at December 31, 2016, and 1.99%at December 31, 2015. These notes had a combination of fixed and floating interest rates, and may not be redeemed prior to their maturity dates.

(f) These notes are all obligations of KeyBank and may not be redeemed prior to their maturity dates.

(g) The secured borrowing had weighted-average interest rates of 4.45% at December 31, 2016, and 4.42% at December 31, 2015. This borrowing is collateralized by commercial lease financing receivables, and principal reductions are based on the cash payments received from the related receivables. Additional information pertaining to these commercial lease financing receivables is included in Note 5 (“Loans and Loans Held for Sale”).

(h) Long-term advances from the Federal Home Loan Bank had a weighted-average interest rate of 3.64% at December 31, 2016, and 3.58% at December 31, 2015. These advances, which had fixed interest rates, were secured by real estate loans and securities totaling $126 million at December 31, 2016, and $251 million at December 31, 2015.

(i) Investment Fund Financing had a weighted-average interest rate of 1.94%at December 31, 2016, and December 31, 2015.

(j) These are capital leases acquired in the First Niagara merger with a maturity range from January 2018 through October 2032.

Scheduled Principal Payments on Long-Term Debt

At December 31, 2016, scheduled principal payments on long-term debt were as follows:

in millions	Parent		Subsidiaries		Total
2017	—		$	270	$	270
2018	$	750	2,120		2,870
2019	—		2,253		2,253
2020	1,332		1,012		2,344
2021	1,413		752		2,165
All subsequent years	493		1,989		2,482