Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2014

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 8 (“Derivatives and Hedging Activities”).

December 31,
dollars in millions	2014		2013
Senior medium-term notes due through 2021 (a)	$	2,575	$	2,553
0.975% Subordinated notes due 2028 (b)		162		162
6.875% Subordinated notes due 2029 (b)		113		103
7.750% Subordinated notes due 2029 (b)		147		133
Total parent company		2,997		2,951
Senior medium-term notes due through 2039 (c)		2,611		1,858
7.413% Subordinated remarketable notes due 2027 (d)		272		270
5.80% Subordinated notes due 2014 (d)		—		768
4.95% Subordinated notes due 2015 (d)		251		251
5.45% Subordinated notes due 2016 (d)		524		544
5.70% Subordinated notes due 2017 (d)		222		229
4.625% Subordinated notes due 2018 (d)		103		104
6.95% Subordinated notes due 2028 (d)		298		298
Lease financing debt due through 2016 (e)		—		5
Secured borrowing due through 2020 (f)		302		58
Federal Home Loan Bank advances due through 2036 (g)		200		224
Investment Fund Financing due through 2052 (h)		95		90
Total subsidiaries		4,878		4,699
Total long-term debt	$	7,875	$	7,650

(a) The senior medium-term notes had a weighted-average interest rate of 3.89% at December 31, 2014, and December 31, 2013. These notes had fixed interest rates at December 31, 2014, and December 31, 2013. One of the three notes can be redeemed one month prior to its maturity date, while the other two notes may not be redeemed prior to their maturity dates.

(b) See Note 19 (“Trust Preferred Securities Issued by Unconsolidated Subsidiaries”) for a description of these notes.

(c) Senior medium-term notes had weighted-average interest rates of 1.84% at December 31, 2014, and 1.58% at December 31, 2013. These notes had a combination of fixed and floating interest rates. Two of the six notes can be redeemed one month prior to their maturity dates, while the other four notes may not be redeemed prior to their maturity dates. The 2014 issuance was at a higher rate than the existing debt.

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

(e) Lease financing debt was paid off during 2014 and had a weighted-average interest rate of 5.99% at December 31, 2013. This category of debt consisted primarily of nonrecourse debt collateralized by leased equipment under operating, direct financing, and sales-type leases.

(f) The secured borrowing had weighted-average interest rates of 4.41% at December 31, 2014, and 4.79% at December 31, 2013. 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 4 (“Loans and Loans Held for Sale”).

(g) Long-term advances from the Federal Home Loan Bank had a weighted-average interest rate of 3.47% at December 31, 2014, and December 31, 2013. These advances, which had a combination of fixed and floating interest rates, were secured by real estate loans and securities totaling $280 million at December 31, 2014, and $337 million at December 31, 2013.

(h) Investment Fund Financing had a weighted-average interest rate of 2.01% at December 31, 2014, and December 31, 2013.

Scheduled Principal Payments on Long-Term Debt

At December 31, 2014, scheduled principal payments on long-term debt were as follows:

in millions	Parent		Subsidiaries		Total
2015	$	756	$	540	$	1,296
2016		—		1,381		1,381
2017		—		298		298
2018		745		1,126		1,871
2019		—		774		774
All subsequent years		1,496		759		2,255