XML 97 R23.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Goodwill and Other Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | 12. Goodwill and Other Intangible Assets Our annual goodwill impairment testing is performed as of October 1 each year, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. The reporting units at which goodwill is tested for impairment are the Consumer Bank, Commercial Bank and Institutional Bank reporting units. The Commercial Bank and Institutional Bank reporting units are aggregated within Key’s overall Commercial Bank reporting segment. As of December 31, 2023, the Commercial Bank and Institutional Bank reporting units were allocated goodwill of $800 million and $133 million, respectively. Additional information pertaining to our accounting policy for goodwill and other intangible assets is summarized in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Goodwill and Other Intangible Assets.” For our annual test, we conducted a quantitative test as of October 1, 2023. We utilized a combination of market and income approaches to calculate the estimated fair values of our reporting units. We determined that the estimated fair value of the Consumer Bank reporting unit was 31% greater than its carrying amount, the estimated fair value of the Commercial Bank reporting unit was 31% greater than its carrying amount, and the estimated fair value of the Institutional Bank reporting unit was 7% greater than its carrying amount. The carrying amounts of the reporting units represent the average equity based on blended capital for goodwill impairment testing and management reporting purposes. Based on the results of the quantitative test, there was no goodwill impairment. Additionally, we monitored events and circumstances during the period from October 1, 2023 through December 31, 2023, including macroeconomic and market factors, industry and banking sector events, Key specific performance indicators, a comparison of management’s forecast and assumptions to those used in the October 1, 2023 quantitative impairment test, and the sensitivity of the October 1, 2023 quantitative test results to changes in assumptions through December 31, 2023. Based on these considerations, we concluded that it was not more-likely- than-not that the fair value of one or more of the reporting units is below its respective carrying value as of December 31, 2023. Changes in the carrying amount of goodwill by reporting segment are presented in the following table:
Dollars in millions | Consumer Bank | Commercial Bank | Total
BALANCE AT DECEMBER 31, 2021 | $ | 1,761 |  | $ | 932 |  | $ | 2,693 |
XUP acquisition measurement period adjustment | — |  | 1 |  | 1 |
GradFin acquisition | 58 |  | — |  | 58 |
BALANCE AT DECEMBER 31, 2022 | 1,819 |  | 933 |  | 2,752 |
BALANCE AT DECEMBER 31, 2023 | $ | 1,819 |  | $ | 933 |  | $ | 2,752 |
Additional information regarding recent acquisitions is provided in Note 15 (“Acquisitions and Discontinued Operations”). As of December 31, 2023, we expect goodwill in the amount of $359 million to be deductible for tax purposes in future periods. There were no accumulated impairment losses related to any of Key’s reporting units at December 31, 2023, December 31, 2022, and December 31, 2021. The following table shows the gross carrying amount and the accumulated amortization of intangible assets subject to amortization:
| 2023 |  | 2022
December 31, Dollars in millions | Gross Carrying Amount | Accumulated Amortization |  | Gross Carrying Amount | Accumulated Amortization
Intangible assets subject to amortization: |  |  |  |  |
Core deposit intangibles | $ | 356 |  | $ | 326 |  |  | $ | 355 |  | $ | 303 |
PCCR intangibles | 16 |  | 15 |  |  | 16 |  | 14 |
Other intangible assets | 80 |  | 56 |  |  | 84 |  | 44 |
Total | $ | 452 |  | $ | 397 |  |  | $ | 455 |  | $ | 361 |
The following table presents estimated intangible asset amortization expense for the next five years.
| Estimated
Dollars in millions | 2024 | 2025 | 2026 | 2027 | 2028
Intangible asset amortization expense | $ | 28 |  | $ | 19 |  | $ | 7 |  | $ | 1 |  | $ | — |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration