KeyBank 2008 Annual Report Download - page 102

100
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES
100
in millions Parent Subsidiaries Total
2009 $1,252 $1,853 $3,105
2010 668 571 1,239
2011 40 1,473 1,513
2012 — 2,428 2,428
2013 769 31 800
All subsequent years 3,084 2,826 5,910
December 31,
dollars in millions 2008 2007
Senior medium-term notes due through 2013
(a)
$ 2,270 $ 1,251
Senior Euro medium-term notes due through 2011
(b)
459 481
4.623% Subordinated notes due 2028
(c)
201 201
6.875% Subordinated notes due 2029
(c)
231 177
7.750% Subordinated notes due 2029
(c)
271 210
5.875% Subordinated notes due 2033
(c)
195 189
6.125% Subordinated notes due 2033
(c)
82 80
5.700% Subordinated notes due 2035
(c)
295 266
7.000% Subordinated notes due 2066
(c)
360 267
6.750% Subordinated notes due 2066
(c)
562 506
8.000% Subordinated notes due 2068
(c)
836 —
9.580% Subordinated notes due 2027
(c)
21 —
7.000% Subordinated notes due 2031
(c)
20 —
7.619% Subordinated notes due 2034
(c)
10 —
Total parent company 5,813 3,628
Senior medium-term notes due through 2039
(d)
2,671 1,388
Senior Euro medium-term notes due through 2013
(e)
2,362 2,653
7.413% Subordinated remarketable notes due 2027
(f)
311 308
7.375% Subordinated notes due 2008
(f)
—70
7.50% Subordinated notes due 2008
(f)
—164
7.00% Subordinated notes due 2011
(f)
554 530
7.30% Subordinated notes due 2011
(f)
117 113
5.70% Subordinated notes due 2012
(f)
332 310
5.80% Subordinated notes due 2014
(f)
861 783
4.95% Subordinated notes due 2015
(f)
253 249
5.45% Subordinated notes due 2016
(f)
578 514
5.70% Subordinated notes due 2017
(f)
242 209
4.625% Subordinated notes due 2018
(f)
101 91
6.95% Subordinated notes due 2028
(f)
248 301
Lease financing debt due through 2015
(g)
365 515
Federal Home Loan Bank advances due through 2036
(h)
132 131
Mortgage financing debt due through 2011
(i)
55 —
Total subsidiaries 9,182 8,329
Total long-term debt $14,995 $11,957
(a)
The senior medium-term notes had weighted-average interest rates of 3.41%
at December 31, 2008, and 5.01% at December 31, 2007. These notes had
acombination of fixed and floating interest rates, and may not be redeemed
prior to their maturity dates.
(b)
Senior Euro medium-term notes had weighted-average interest rates of 2.35% at
December 31, 2008, and 4.89% at December 31, 2007. These notes had a floating
interest rate based on the three-month LIBOR and may not be redeemed prior to
their maturity dates.
(c)
These notes had weighted-average interest rates of 6.93% at December 31, 2008, and
6.56% at December 31, 2007. All of the notes have fixed interest rates except for the
4.623% note, which has a floating interest rate equal to three-month LIBOR plus 74
basis points; the 7.000% note, which has a floating interest rate equal to three-month
LIBOR plus 358 basis points; and the 7.619% note, which has a floating interest rate
equal to three-month LIBOR plus 280 basis points. Each of these floating rate notes
reprices quarterly. See Note 13 (“Capital Securities Issued by Unconsolidated
Subsidiaries”) on page 101 for a description of these notes.
(d)
Senior medium-term notes of KeyBank had weighted-average interest rates of
3.95% at December 31, 2008, and 5.05% at December 31, 2007. These notes had
acombination of fixed and floating interest rates and may not be redeemed prior
to their maturity dates.
(e)
Senior Euro medium-term notes had weighted-average interest rates of 2.55%
at December 31, 2008, and 4.79% at December 31, 2007. These notes, which are
obligations of KeyBank, had a combination of fixed and floating interest rates based
on LIBOR and may not be redeemed prior to their maturity dates.
(f)
These notes are all obligations of KeyBank. Only the subordinated remarketable notes
due 2027 may be redeemed prior to their maturity dates.
(g)
Lease financing debt had weighted-average interest rates of 4.66% at December 31,
2008, and 5.06% at December 31, 2007. This categoryof debt consists primarily of
nonrecourse debt collateralized by leased equipment under operating, direct financing
and sales-type leases.
(h)
Long-term advances from the Federal Home Loan Bank had weighted-average interest
rates of 5.18% at December 31, 2008, and 5.40% at December 31, 2007. These
advances, which had a combination of fixed and floating interest rates, weresecured
by real estate loans and securities totaling $179 million at December 31, 2008, and
$164 million at December 31, 2007.
(i)
Mortgage financing debt had a weighted-average interest rate of 4.84% at December
31, 2008. This category of debt is collateralized by real estate properties.
At December 31, 2008, scheduled principal payments on long-term debt
were as follows:
Key uses interest rate swaps and caps, which modify the repricing characteristics of
certain long-term debt, to manage interest rate risk. For more information about such
financial instruments, see Note 19 (“Derivatives and Hedging Activities”), which begins
on page 115.
12. LONG-TERM DEBT
The following table presents the components of Key’s long-term debt,
net of unamortized discounts and adjustments related to hedging with
derivative financial instruments.