Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 128

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 128
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-exempt interest income(27)8.7 (35)(3.1)(28)(1.2)Corporate-owned life insurance income(29)9.5 (28)(2.4)(28)(1.2)State income tax, net of federal tax benefit(20)6.6 18 1.6 53 2.3 State income tax rate change, net of federal benefit(17)5.5 — — — — Tax credits(211)69.1 (196)(16.9)(204)(8.8)FDIC Insurance25 (8.3)22 1.9 12 .5 Other15 (4.9)— — (22)(.9)Total income tax expense (benefit)$(143)46.6 %$196 16.9 %$422 18.1 %

159

Liability for Unrecognized Tax BenefitsThe change in our liability for unrecognized tax benefits is as follows:Year ended December 31,Dollars in millions20242023Balance at beginning of year$45 $40 Increase for other tax positions of prior years— 5 Decrease for payments and settlements(3)— Decrease related to tax positions taken in prior years(3)— Balance at end of year$39 $45 Each quarter, we review the amount of unrecognized tax benefits recorded in accordance with the applicable accounting guidance. Any adjustment to unrecognized tax benefits is recorded in income tax expense. The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was $39 million at December 31, 2024, and $45 million at December 31, 2023. It is reasonably possible that the balance of unrecognized tax benefits could decrease in the next twelve months due to examinations by various tax authorities or the expiration of statutes of limitations.As permitted under the applicable accounting guidance, it is our policy to record interest and penalties related to unrecognized tax benefits in income tax expense. We recorded net interest benefit of less than $1 million, $4 million, and $1.5 million in 2024, 2023, and 2022, respectively. We did not recover any state tax penalties in 2024, 2023, or 2022. At December 31, 2024, we had $1 million accrued interest payable, compared to $0.6 million at December