exceed Key’s eventual cash outlay. Further information about Key’s loan commitments at December 31, 2003, is presented in Note 18 (“Commitments, Contingent Liabilities and Guarantees”) under the heading “Commitments to Extend Credit or Funding” on page 77. Figure 24 shows the remaining contractual amount of each class of commitments to extend credit or funding, which represents Key’s maximum possible accounting loss at December 31, 2003. In some cases, Key retains a residual interest in securitized loans that may take the form of an interest-only strip, a residual asset, a servicing asset and/or a security. Key accounts for these retained interests as debt securities and classifies them as either available for sale or trading account assets on the balance sheet. The retained interests represent Key’s maximum exposure to loss if they were to decline in value. In the event that cash flows generated by the securitized assets become inadequate to service the obligations of the trusts, the investors in the asset-backed securities would have no further recourse against Key. Additional information pertaining to Key’s retained interests in loan securitizations is summarized in Note 1 under the heading “Loan Securitizations” on page 52, Note 6 (“Securities”), which begins on page 61, and Note 8 under the heading “Retained Interests in Loan Securitizations” on page 63. Other off-balance sheet arrangements. Other off-balance sheet arrangements include financial instruments that do not meet the definition of a guarantee as specified in Interpretation No. 45, “Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Other,” and other relationships, such as liquidity support provided to an asset-backed commercial paper conduit, indemnification agreements and intercompany guarantees. Information about such arrangements is provided in Note 18 under the heading “Other Off-Balance Sheet Risk” on page 79. Figure 24 summarizes Key’s significant contractual obligations, and lending-related and other off-balance sheet commitments at December 31, 2003, by the specific time periods in which related payments are due or commitments expire. Contractual obligations Commitments to extend credit or funding. Loan commitments generally help Key meet clients’ financing needs. Such commitments provide for financing on predetermined terms as long as the client continues to meet specified criteria. These commitments generally carry variable rates of interest and have fixed expiration dates or other termination clauses. In many cases, a client must pay a fee to obtain a loan commitment from Key. Because a commitment may expire without resulting in a loan, the total amount of outstanding commitments may significantly FIGURE 24. CONTRACTUAL OBLIGATIONS AND OTHER OFF-BALANCE SHEET COMMITMENTS a Deposits and borrowings exclude interest. Key is a guarantor in various agreements with third parties. As guarantor, Key may be contingently liable to make payments to the guaranteed party based on changes in an underlying that is related to an asset or liability or another entity’s failure to perform under an obligating agreement. An underlying is a specified interest rate, foreign exchange rate or other variable (including the occurrence or nonoccurrence of a specified event). Additional information regarding these types of arrangements is presented in Note 18 under the heading “Guarantees” on page 78. Guarantees 32 NEXT PAGE PREVIOUS PAGE SEARCH BACK TO CONTENTS After After December 31, 2003 Within 1 Through 3 Through After in millions 1 Year 3 Years 5 Years 5 Years Total Contractual obligations$^{a}$: Deposits with no stated maturity $32,205 GLYPH<209> GLYPH<209> GLYPH<209> $32,205 Time deposits of $100,000 or more 5,295 $1,257 $ 657 $ 436 7,645 Other time deposits 6,063 3,003 1,460 482 11,008 Federal funds purchased and securities sold under repurchase agreements 2,667 GLYPH<209> GLYPH<209> GLYPH<209> 2,667 Bank notes and other short-term borrowings 2,947 GLYPH<209> GLYPH<209> GLYPH<209> 2,947 Long-term debt 5,518 4,660 1,720 3,396 15,294 Noncancelable operating leases 120 212 170 356 858 Purchase obligations: Banking and GLYPH<222>nancial data services 56 39 GLYPH<209> GLYPH<209> 95 Telecommunications 33 34 1 GLYPH<209> 68 Professional services 35 17 7 GLYPH<209> 59 Technology equipment and software 30 20 3 GLYPH<209> 53 Other 8 12 9 7 36 Total purchase obligations 162 122 20 7 311 Total $54,977 $9,254 $4,027 $4,677 $72,935 Lending-related and other off-balance sheet commitments: Commercial, including real estate $14,379 $8,322 $2,207 $1,194 $26,102 Home equity 62 46 86 5,971 6,165 Principal investing GLYPH<209> 13 6 189 208 Commercial letters of credit 352 33 GLYPH<209> GLYPH<209> 385 Total $14,793 $8,414 $2,299 $7,354 $32,860 MANAGEMENTGLYPH<213>S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS KEYCORP AND SUBSIDIARIES