| Long-Term Borrowings |
Long-Term Borrowings 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): | | | | | | | | | | | | | | | | December 31, 2019 | | December 31, 2018 | | 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% | | $ | 8,609 |
| | $ | 10,657 |
| Floating-rate asset-backed securities(2)(3) | 2020-2024 | | 1.97%-2.46% | | 2.15% | | 5,515 |
| | 6,063 |
| Total Discover Card Master Trust I and Discover Card Execution Note Trust | | | | | | | 14,124 |
| | 16,720 |
| | | | | | | | | | | Floating-rate asset-backed security(4)(5) | 2031 | | 5.75% | | 5.75% | | 160 |
| | 197 |
| Total student loan securitization trust | | | | | | | 160 |
| | 197 |
| Total long-term borrowings - owed to securitization investors | | | | | | | 14,284 |
| | 16,917 |
| | | | | | | | | | | Discover Financial Services (Parent Company) | | | | | | | | | | Fixed-rate senior notes | 2022-2027 | | 3.75%-5.20% | | 4.16% | | 3,296 |
| | 2,743 |
| Fixed-rate retail notes | 2021-2031 | | 2.85%-4.60% | | 3.73% | | 340 |
| | 346 |
| | | | | | | | | | | Discover Bank | | | | | | | | | | Fixed-rate senior bank notes(1) | 2020-2028 | | 2.45%-4.65% | | 3.55% | | 6,785 |
| | 6,027 |
| Fixed-rate subordinated bank notes(1) | 2020-2028 | | 4.68%-7.00% | | 5.84% | | 996 |
| | 1,195 |
| Total long-term borrowings | | | | | | | $ | 25,701 |
| | $ | 27,228 |
| | | | | | | | | | |
| | (1) | The Company uses interest rate swaps to hedge portions of these long-term borrowings against changes in fair value attributable to changes in London Interbank Offered Rate (“LIBOR”) or Overnight Index Swap (“OIS”) Rate. Use of these interest rate swaps impacts carrying value of the debt. See Note 21: 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 and Commercial paper rate + 55 basis points as of December 31, 2019. |
| | (3) | The Company uses interest rate swaps to manage its exposure to changes in interest rates related to future cash flows resulting from interest payments on a portion of these long-term borrowings. There is no impact on debt carrying value from use of these interest rate swaps. See Note 21: Derivatives and Hedging Activities. |
| | (4) | 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 December 31, 2019. |
| | (5) | 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 each of the next five years and thereafter (dollars in millions): | | | | | | Amount | 2020 | $ | 5,247 |
| 2021 | 4,210 |
| 2022 | 5,119 |
| 2023 | 3,319 |
| 2024 | 2,565 |
| Thereafter | 5,241 |
| Total | $ | 25,701 |
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The Company has access to committed borrowing capacity through private securitizations to support the funding of its credit card loan receivables. As of December 31, 2019, the total commitment of secured credit facilities through private providers was $6.0 billion, $500 million of which was drawn at December 31, 2019. 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.
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