NOTE 11 - BORROWINGS AND CONTRACTUAL COMMITMENTS

Other short-term borrowings

Other short-term borrowings at December 31 were as follows:



	2015				2014
(Dollars in millions)	Balance		Interest Rate		Balance		Interest Rate
FHLB advances		$—	—	%		$4,000	0.23	%
Master notes	582		0.20		1,280		0.15
Dealer collateral	442		0.20		354		0.13
Total other short-term borrowings		$1,024				$5,634

Long-term debt

Long-term debt at December 31 consisted of the following:



	2015				2014
(Dollars in millions)	Maturity Date(s)	Interest Rate(s)	Balance		Balance
Parent Company Only:
Senior, fixed rate	2016 - 2028	2.35% - 6.00%		$3,614		$3,630
Senior, variable rate	2016 - 2019	0.48 - 1.86	331		358
Subordinated, fixed rate	2026	6.00	200		200
Junior subordinated, variable rate	2027 - 2028	1.03 - 1.31	627		627
Total Parent Company debt			4,772		4,815
Subsidiaries ¹:
Senior, fixed rate ²	2016 - 2053	0.80 - 9.65	1,620		5,682
Senior, variable rate	2016 - 2043	0.44 - 2.23	1,097		742
Subordinated, fixed rate ³	2017 - 2020	5.20 - 7.25	973		1,283
Subordinated, variable rate			—		500
Total subsidiaries debt			3,690		8,207
Total long-term debt				$8,462		$13,022

¹81% and 90% of total subsidiary debt was issued by the Bank as of December 31, 2015 and 2014, respectively.

²Includes leases and other obligations that do not have a stated interest rate.

³Debt recorded at fair value.

The Company had no foreign denominated debt outstanding at December 31, 2015 or 2014. Maturities of long-term debt at December 31, 2015 were as follows:



(Dollars in millions)	Parent Company		Subsidiaries
2016		$1,038		$73
2017	1,232		1,711
2018	874		502
2019	792		33
2020	—		226
Thereafter	836		1,145
Total		$4,772		$3,690

During 2015, the Bank terminated $3.8 billion of FHLB advances. These early terminations were related to a repositioning of the balance sheet and resulted in the recognition of $24 million in debt extinguishment costs, net of related hedges, recorded in other noninterest expense in the Consolidated Statement of Income. Additionally during 2015, $1.0 billion of the Bank's long-term FHLB advances matured and another $1.2 billion were added. Furthermore, the Bank had variable rate and fixed rate subordinated debt of $500 million and $269 million, respectively, that matured during 2015. The Company had no additional material issuances, advances, repurchases, terminations, or extinguishments of long-term debt during the year.

Restrictive provisions of several long-term debt agreements prevent the Company from creating liens on, disposing of, or issuing (except to related parties) voting stock of subsidiaries. Furthermore, there are restrictions on mergers, consolidations, certain leases, sales or transfers of assets, minimum shareholders’ equity, and maximum borrowings by the Company. At December 31, 2015, the Company was in compliance with all covenants and provisions of long-term debt agreements.

As currently defined by federal bank regulators, long-term debt of $157 million and $627 million qualified as Tier 1 capital at December 31, 2015 and 2014, and long-term debt of $1.0 billion and $792 million qualified as Tier 2 capital at December 31, 2015 and 2014, respectively. Beginning January 1, 2016, the long-term debt that qualified as Tier 1 capital at December 31, 2015 will be completely phased-out of Tier 1 capital and will be classified as Tier 2 capital, using the methodology specified under Basel III. See Note 13, "Capital," for additional information regarding regulatory capital adequacy requirements for the Company and the Bank.

The Company does not consolidate certain wholly-owned trusts which were formed for the sole purpose of issuing trust preferred securities. The proceeds from the trust preferred securities issuances were invested in junior subordinated debentures of the Parent Company. The obligations of these debentures constitute a full and unconditional guarantee by the Parent Company of the trust preferred securities.

Contractual Commitments

In the normal course of business, the Company enters into certain contractual commitments. These commitments include obligations to make future payments on lease agreements, contractual commitments for capital expenditures, and service contracts.

The following table presents the Company's significant contractual commitments at December 31, 2015, except for long-term debt, operating leases, and pension and other postretirement benefit plans. Information on those obligations is included above, in Note 8, "Premises and Equipment," and in Note 15, "Employee Benefit Plans." Capital lease obligations and foreign time deposits were immaterial at December 31, 2015 and are not presented in the table.



	Payments Due by Period
(Dollars in millions)	2016		2017		2018		2019		2020		Thereafter		Total
Purchase obligations ¹		$349		$17		$13		$4		$—		$—		$383
Consumer and other time deposits ^{2, 3}	4,736		1,933		1,317		575		876		382		9,819
Brokered time deposits ³	196		83		104		181		212		123		899

¹ Amounts represent termination fees for legally binding purchase obligations of $5 million or more. Payments made towards the purchase of goods or services under these contracts totaled $243 million, $223 million, and $194 million in 2015, 2014, and 2013, respectively.

² The aggregate amount of time deposit accounts in denominations of $250,000 or more totaled $1.4 billion at both December 31, 2015 and 2014, respectively.

³ Amounts do not include interest.