NOTE 11 - BORROWINGS AND CONTRACTUAL COMMITMENTS

Other short-term borrowings

Other short-term borrowings at December 31 consisted of the following:



	2016				2015
(Dollars in millions)	Balance		Interest Rate		Balance		Interest Rate
Master notes		$483	0.25	%		$582	0.20	%
Dealer collateral	451		0.55		442		0.20
Other	81		2.28		—		—
Total other short-term borrowings		$1,015				$1,024

Long-term debt

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



	2016				2015
(Dollars in millions)	Maturity Date(s)	Interest Rate(s)	Balance		Balance
Parent Company Only:
Senior, fixed rate	2017 - 2028	2.35% - 6.00%		$3,818		$3,614
Senior, variable rate	2017 - 2026	0.25 - 2.50	314		331
Subordinated, fixed rate	2026	6.00	200		200
Junior subordinated, variable rate	2027 - 2028	1.58 - 1.83	627		627
Total			4,959		4,772
Less: Debt issuance costs ¹			9
Total Parent Company debt			4,950		4,772
Subsidiaries ²:
Senior, fixed rate ³	2017 - 2053	0.80 - 9.27	2,539		1,620
Senior, variable rate	2017 - 2043	0.61 - 2.27	2,613		1,097
Subordinated, fixed rate ⁴	2017 - 2026	3.30 - 7.25	1,651		973
Total			6,803		3,690
Less: Debt issuance costs ¹			5
Total subsidiaries debt			6,798		3,690

Total long-term debt				$11,748		$8,462

¹Related to the Company's adoption of ASU 2015-03. Debt issuance costs were immaterial in the comparative prior year period, and accordingly, were not reclassified from other assets to long-term debt. See Note 1, "Significant Accounting Policies," for additional information.

²88% and 81% of total subsidiary debt was issued by the Bank as of December 31, 2016 and 2015, respectively.

³Includes leases and other obligations that do not have a stated interest rate.

⁴Includes $963 million and $973 million of subordinated debt measured at fair value at December 31, 2016 and 2015, respectively.

The Company had no foreign denominated debt outstanding at December 31, 2016 or 2015. Maturities of long-term debt at December 31, 2016 were as follows:



(Dollars in millions)	Parent Company		Subsidiaries
2017		$482		$1,305
2018	874		1,237
2019	792		27
2020	—		1,721
2021	969		505
Thereafter	1,842		2,008
Total maturities	4,959		6,803
Less: Debt issuance costs	9		5
Total long-term debt		$4,950		$6,798

During 2016, the Bank (i) issued $1.0 billion of 5-year fixed rate senior notes and used the proceeds to pay off $1.0 billion of higher cost, fixed rate senior notes that were due in 2016, (ii) issued $1.0 billion of 5-year fixed rate senior notes and used the proceeds to pay off $750 million of higher cost, fixed rate senior notes that were due in 2017, (iii) added $3.8 billion of long-term FHLB advances and, (iv) issued $750 million of 10-year fixed rate subordinated notes. Furthermore, $1.4 billion of the Bank's long-term FHLB advances were terminated. 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, 2016, 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 $1.7 billion and $1.0 billion qualified as Tier 2 capital at December 31, 2016 and 2015, respectively, and $157 million qualified as Tier 1 capital at December 31, 2015. Beginning January 1, 2016, the long-term debt that qualified as Tier 1 capital at December 31, 2015 has been completely phased-out of Tier 1 capital and is 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 the Company's borrowings, partnership investments, and lease arrangements, as well as commitments to lend to clients and to fund capital expenditures and service contracts.

The following table presents the Company's significant contractual commitments at December 31, 2016, except for long-term debt and short-term borrowings, 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 were immaterial at December 31, 2016 and are not presented in the table.



	Payments Due by Period
(Dollars in millions)	2017		2018		2019		2020		2021		Thereafter		Total
Unfunded lending commitments		$26,057		$8,786		$13,727		$16,439		$14,568		$11,994		$91,571
Purchase obligations ¹	497		22		20		14		12		219		784
Consumer and other time deposits ^{2, 3}	3,893		1,794		1,082		983		603		1,112		9,467
Brokered time deposits ³	161		102		175		232		131		123		924
Foreign time deposits ³	610		—		—		—		—		—		610
Commitments to fund partnership investments ⁴	563		—		—		—		—		—		563

¹ For legally binding purchase obligations of $5 million or more, amounts include either termination fees under the associated contracts when early termination provisions exist, or the total potential obligation over the full contractual term for noncancelable purchase obligations. Payments made towards the purchase of goods or services under these contracts totaled $236 million, $243 million, and $223 million in 2016, 2015, and 2014, respectively.

² The aggregate amount of time deposit accounts in denominations of $250,000 or more totaled $1.7 billion and $1.4 billion at December 31, 2016 and 2015, respectively.

³ Amounts do not include interest.

⁴ Commitments to fund investments in affordable housing and other partnerships do not have defined funding dates as certain criteria must be met before the Company is obligated to fund. Accordingly, these commitments are considered to be due on demand for presentation purposes. See Note 10, "Certain Transfers of Financial Assets and Variable Interest Entities," in this Form 10-K for additional information.