Borrowings

Long-term debt was net of unamortized debt discounts/premiums and debt issuance costs of $26 million and $24 million at September 30, 2017 and December 31, 2016, respectively.



	September 30, 2017		December 31, 2016
Senior Notes	$	3,205	$	2,558
Medium-Term Notes	—		250
Finance lease obligation	63		68
Total long-term debt	$	3,268	$	2,876

On March 2, 2017, CSC issued $650 million aggregate principal amount of Senior Notes that mature in 2027. The Senior Notes have a fixed interest rate of 3.200% with interest payable semi-annually.

The Company’s long-term debt at September 30, 2017 had a weighted-average interest rate of 3.11%.

Annual maturities on long-term debt outstanding are as follows:



	September 30, 2017
2017	$	3
2018	908
2019	8
2020	709
2021	9
Thereafter	1,657
Total maturities	3,294
Unamortized discount, net	(13		)
Debt issuance costs	(13		)
Total long-term debt	$	3,268

Short-term borrowings: Schwab Bank maintains a secured credit facility with the Federal Home Loan Bank of San Francisco (FHLB). Amounts available under this facility are dependent on the value of Schwab Bank’s First Mortgages, HELOCs, and investment securities that are pledged as collateral. As of September 30, 2017, the collateral pledged by Schwab Bank provided a total borrowing capacity of $19.9 billion including the $5.0 billion outstanding. The Company could increase its borrowing capacity by pledging additional securities. At December 31, 2016, there were no amounts outstanding under this facility.

As a condition of the FHLB borrowings, Schwab Bank is required to hold FHLB stock, with the investment recorded in other assets on the condensed consolidated balance sheets. The investment in FHLB was $135 million at September 30, 2017 and $81 million at December 31, 2016.

CSC has authorization from its Board of Directors to issue Commercial Paper Notes not to exceed $1.5 billion. Management has set a current limit for the commercial paper program not to exceed the amount of the committed, unsecured credit facility, which was $750 million at September 30, 2017. CSC had no Commercial Paper Notes outstanding at September 30, 2017 and December 31, 2016.

CSC and Schwab also have access to uncommitted, unsecured bank credit lines with several banks. Schwab had no borrowings outstanding under these lines at September 30, 2017 and December 31, 2016.