Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 121

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 121
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 realignment, neither of which resulted in impairment. The results of the interim impairment test reflecting the realignment indicated the fair value of each of the three reporting units, Consumer Bank, Commercial Bank, and Institutional Bank, exceeded their respective carrying values by more than 10%. We utilized a combination of market and income approaches to calculate the estimated fair values of our reporting units. We determined in our interim quantitative test that the estimated fair value of the Consumer Bank reporting unit was 18% greater than its carrying amount, the estimated fair value of the Commercial Bank reporting unit was 25% greater than its carrying amount, and the estimated fair value of the Institutional Bank reporting unit was 34% 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 interim quantitative test, there was no goodwill impairment. For our annual test, we conducted a qualitative test as of October 1, 2024. This test involved reviewing updated internal forecasts, evaluating market data, assessing reasonableness of critical assumptions used in the last quantitative goodwill impairment test as of February 29, 2024 and considering recent transactions and events that could impact the goodwill at each reporting unit. Key concluded it was not more likely than not that goodwill was  impaired as of October 1, 2024, our annual testing date.Additionally, we monitored events and circumstances during the period from October 1, 2024 through December 31, 2024, including an evaluation of macroeconomic and market factors, industry and banking sector events, Key specific performance indicators and updated management forecasts. 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, 2024.  

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Changes in the carrying amount of goodwill by reporting segment are presented in the following table:Dollars in millionsConsumer BankCommercial BankTotalBALANCE AT DECEMBER 31, 2022$1,819 $933 $2,752 BALANCE AT DECEMBER 31, 20231,819 933 2,752 BALANCE AT DECEMBER 31, 2024$1,819 $933 $2,752 As of December 31, 2024, we expect goodwill in the amount of $293 million to be deductible for tax purposes in future periods.There were no