Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 275

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 275
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2, average intangible assets exclude less than $1 million, $1 million, and $2 million, respectively, of average purchased credit card relationships.

Adjusted noninterest expense and adjusted noninterest income are non-GAAP measures in that they are adjusted to exclude the impact of certain items. Management believes adjusting for the selected items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the financial impacts related to those selected items.

Year ended December 31,Dollars in millions202420232022Adjusted noninterest expenseNoninterest expense (GAAP)$4,545 $4,734 $4,410 Adjustments:Efficiency related expenses— (131)— Pension settlement (other expense)— (18)— FDIC special assessment (other expense)(25)(190)— Adjusted noninterest expense (non-GAAP)$4,520 $4,395 $4,410 Adjusted noninterest incomeNoninterest income (GAAP)$809 $2,470 $2,718 Adjustments:Loss on sale of securities for securities repositioning1,833 — — Scotiabank investment agreement valuation (other income)3 — — Adjusted noninterest income (non-GAAP)$2,645 $2,470 $2,718 

Critical Accounting Policies and Estimates

Our business is dynamic and complex. Consequently, we must exercise judgment in choosing and applying accounting policies and methodologies. These choices are critical; not only are they necessary to comply with GAAP, they also reflect our view of the appropriate way to record and report our overall financial performance. All accounting policies are important, and all policies described in Note 1 (“Summary of Significant Accounting Policies”) should be reviewed for a greater understanding of how we record and report our financial performance.

In our opinion, some accounting policies are more likely than others to have a critical effect on our financial results and to expose those results to potentially greater volatility. These policies apply to areas of relatively greater business importance, or require us to exercise judgment and to make assumptions and estimates that affect amounts reported in the financial statements. Because these assumptions and estimates are based on current circumstances, they may prove to be inaccurate, or we may find it necessary to change them.  The following is a description of our current critical accounting policies. 

92

Allowance for loan and lease losses

The allowance for loan and lease losses represents