Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 107

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 107
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(152)— (a)The carrying amount represents the portion of the asset or liability designated as the hedged item.

146

(b)Certain amounts are designed as fair value hedges under the portfolio layer method. The carrying amount represents the amortized costs basis of the prepayable financial assets used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the relationship.  At December 31, 2024 and December 31, 2023,  the amortized cost of the closed portfolios used in these hedging relationships was $5 billion and $13 billion, respectively, of which $4 billion and $7 billion were designated in a portfolio layer hedging relationship. At December 31, 2024 and December 31, 2023, the cumulative basis adjustments associated with these amounts totaled $41 million and $(147) million, which is comprised of $24 million and $(147) million in active hedging relationships and $17 million and no adjustments for discontinued hedging relationships.  Cash flow hedges.  During the year ended December 31, 2024, we did not exclude any portion of these hedging instruments from the assessment of hedge effectiveness. Considering the interest rates, yield curves, and notional amounts as of December 31, 2024, we expect to reclassify an estimated $231 million of after-tax net losses on derivative instruments designated as cash flow hedges from AOCI to income during the next 12 months. In addition, we expect to reclassify approximately $4 million of pre-tax net losses related to terminated cash flow hedges from AOCI to income during the next 12 months. These reclassified amounts could differ from actual amounts recognized due to changes in interest rates hedge de-designations and the addition of other hedges subsequent to December 31, 2024. As of December 31, 2024, the maximum length of time over which we hedge forecasted transactions is 3.67 years.The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the years ended December 31, 2024, December 31, 2023, and December 31, 2022.Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationshipsDollars in millionsInterest expense – long-term debtInterest income – loansInterest Income - securitiesInvest