Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 127

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 127
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 asset and liability is recognized for each operating lease item resulting from the adoption of ASC 842 in 2019.(b)From continuing operations.We conduct quarterly assessments of all available evidence to determine the amount of deferred tax assets that are more-likely-than-not to be realized, and therefore recorded. The available evidence used in connection with these assessments includes taxable income in prior periods, projected future taxable income, potential tax-planning strategies, and projected future reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo significant change.    At December 31, 2024, we had net capital loss carryforwards of $15 million for which we have recorded $15 million of valuation allowances. The capital loss carryforwards if not utilized, will expire beginning in 2025. Realization of this tax benefit is dependent upon Key's ability to generate sufficient capital gain in an appropriate tax year to offset the capital loss carryforward. Currently, generation of sufficient gain income is uncertain.At December 31, 2024, we had federal net operating loss carryforwards of $420 million and federal credit carryforwards of $215 million. Federal net operating loss carryforwards of $7 million are from prior acquisitions by First Niagara and are subject to annual limitations under the tax code and if not utilized, will expire in the years beginning 2027. The remaining $413 million of net operating losses generated in 2024 do not expire. The federal credit carryforward consists of general business credits generated in 2012 of $1 million and 2024 of $214 million, which expire in 2027 and 2039, respectively, under the Internal Revenue Code. We currently expect to fully utilize these losses and credits.We had state net operating loss carryforwards of $271 million, resulting in a net state deferred tax asset of $11 million and state credit carryforwards of $9 million. We currently expect to fully utilize these losses and credits. The following table shows how our total income tax expense (benefit) and the resulting effective tax rate were derived:Year ended December 31,Dollars in millions202420232022AmountRateAmountRateAmountRateIncome (loss) before income taxes times 21% statutory federal tax rate$(64)21.0 %$244 21.0 %$490 21.0 %Amortization of tax-advantaged investments185 (60.6)171 14.8 149 6.4 Tax