Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2012

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.

December 31, dollars in millions	2012		2011
Senior medium-term notes due through 2021 (a)	$	2,653	$	3,074
1.100% Subordinated notes due 2028 (b)		162		162
6.875% Subordinated notes due 2029 (b)		117		118
7.750% Subordinated notes due 2029 (b)		152		152
5.700% Subordinated notes due 2035 (b)		—		195
8.000% Subordinated notes due 2068 (b)		—		598
Total parent company		3,084		4,299
Senior medium-term notes due through 2039 (c)		129		1,494
Senior Euro medium-term notes due through 2013 (d)		26		579
7.413% Subordinated remarketable notes due 2027 (e)		268		265
5.70% Subordinated notes due 2012 (e)		—		308
5.80% Subordinated notes due 2014 (e)		803		830
4.95% Subordinated notes due 2015 (e)		251		252
5.45% Subordinated notes due 2016 (e)		564		573
5.70% Subordinated notes due 2017 (e)		241		242
4.625% Subordinated notes due 2018 (e)		108		106
6.95% Subordinated notes due 2028 (e)		300		300
Lease financing debt due through 2016 (f)		9		19
Federal Home Loan Bank advances due through 2036 (g)		974		225
Investment Fund Financing due through 2052 (h)		90		28
Total subsidiaries		3,763		5,221
Total long-term debt	$	6,847	$	9,520

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 8 (“Derivatives and Hedging Activities”).

(a) The senior medium-term notes had weighted-average interest rates of 5.11% at December 31, 2012, and 4.49% at December 31, 2011. These notes had a combination of fixed and floating interest rates during 2012 and 2011; however, the outstanding notes as of December 31, 2012, had fixed interest rates. These notes may not be redeemed prior to their maturity dates.

(b) See Note 17 (“Trust Preferred Securities Issued by Unconsolidated Subsidiaries”) for a description of these notes.

(c) Senior medium-term notes had weighted-average interest rates of 5.03% at December 31, 2012, and 3.91% at December 31, 2011. These notes had a combination of fixed and floating interest rates, and may not be redeemed prior to their maturity dates.

(d) Senior Euro medium-term notes had weighted-average interest rates of .64% at December 31, 2012, and .59% at December 31, 2011. These notes had a combination of fixed and floating interest rates based on LIBOR, and may not be redeemed prior to their maturity dates.

(e) These notes are all obligations of KeyBank. Only the subordinated remarketable notes due 2027 may be redeemed prior to their maturity dates.

(f) Lease financing debt had weighted-average interest rates of 6.20% at December 31, 2012, and 5.44% at December 31, 2011. This category of debt consists primarily of nonrecourse debt collateralized by leased equipment under operating, direct financing and sales-type leases.

(g) Long-term advances from the Federal Home Loan Bank had weighted-average interest rates of 1.09% at December 31, 2012, and 3.75% at December 31, 2011. These advances, which had a combination of fixed and floating interest rates, were secured by real estate loans and securities totaling $1.6 billion at December 31, 2012, and $428 million at December 31, 2011.

(h) Investment Fund Financing had a weighted-average interest rate of 2.01% at December 31, 2012, and 2.30% at December 31, 2011.

Scheduled Principal Payments on Long-Term Debt

At December 31, 2012, scheduled principal payments on long-term debt were as follows:

in millions	Parent		Subsidiaries		Total
2013	$	754	$	32	$	786
2014		—		1,568		1,568
2015		771		407		1,178
2016		—		603		603
2017		—		263		263
All subsequent years		1,559		890		2,449