NOTE 11 - BORROWINGS AND CONTRACTUAL COMMITMENTS

Short-term Borrowings

Short-term borrowings at December 31 consisted of the following:



	2017				2016
(Dollars in millions)	Balance		Interest Rate		Balance		Interest Rate
Funds purchased		$2,561	1.33	%		$2,116	0.55	%
Securities sold under agreements to repurchase	1,503		1.39		1,633		0.55
Other short-term borrowings	717		1.00		1,015		0.56
Total short-term borrowings		$4,781				$4,764

Long-term Debt

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



	2017				2016
(Dollars in millions)	Maturity Date(s)	Interest Rate(s)	Balance		Balance
Parent Company Only:
Senior, fixed rate	2018 - 2028	2.35% - 6.00%		$3,379		$3,818
Senior, variable rate	2018 - 2019	0.25 - 1.53	267		314
Subordinated, fixed rate	2026	6.00	200		200
Junior subordinated, variable rate	2027 - 2028	2.09 - 2.32	628		627
Total			4,474		4,959
Less: Debt issuance costs			8		9
Total Parent Company debt			4,466		4,950
Subsidiaries ¹:
Senior, fixed rate ²	2018 - 2057	0.80 - 9.10	3,609		2,539
Senior, variable rate	2020 - 2043	1.04 - 1.84	512		2,613
Subordinated, fixed rate	2018 - 2026	3.30 - 7.25	1,206		1,651
Total			5,327		6,803
Less: Debt issuance costs			8		5
Total subsidiaries debt			5,319		6,798

Total long-term debt ³				$9,785		$11,748

¹77% and 88% of total subsidiary debt was issued by the Bank as of December 31, 2017 and 2016, respectively.

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

³Includes $530 million and $963 million of long-term debt measured at fair value at December 31, 2017 and 2016, respectively.

The Company had no foreign denominated debt outstanding at December 31, 2017 or 2016. Maturities of long-term debt at December 31, 2017 were as follows:



(Dollars in millions)	Parent Company		Subsidiaries
2018		$874		$361
2019	792		27
2020	—		1,508
2021	965		4
2022	990		1,022
Thereafter	853		2,405
Total maturities	4,474		5,327
Less: Debt issuance costs	8		8
Total long-term debt		$4,466		$5,319

During 2017, the Bank (i) issued $1.0 billion of 3-year fixed rate senior notes, (ii) issued $300 million of 3-year floating rate senior notes, and (iii) issued $1.0 billion of 5-year fixed rate senior notes under its Global Bank Note program. Additionally, $2.8 billion of the Company's long-term FHLB advances were terminated or matured during the year. Furthermore, $1.5 billion of senior notes and $188 million of subordinated notes matured during 2017. 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, 2017, 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 $1.6 billion and $1.7 billion qualified as Tier 2 capital at December 31, 2017 and 2016, respectively. 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, 2017, 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, 2017 and are not presented in the table.



	Payments Due by Period
(Dollars in millions)	2018		2019		2020		2021		2022		Thereafter		Total
Unfunded lending commitments		$25,265		$9,648		$13,773		$13,380		$15,879		$12,066		$90,011
Purchase obligations ¹	278		260		76		50		48		247		959
Consumer and other time deposits ^{2, 3}	4,720		2,559		1,331		617		834		2,015		12,076
Brokered time deposits ³	105		181		251		194		178		76		985
Commitments to fund partnership investments ⁴	690		—		—		—		—		—		690

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 $395 million, $236 million, and $243 million in 2017, 2016, and 2015, respectively.

² The aggregate amount of time deposit accounts in denominations of $250,000 or more was $3.2 billion and $1.7 billion at December 31, 2017 and 2016, 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.