Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 93

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 93
---
 properties, and right-of-use assets(a)OREO, other repossessed properties, and right-of-use assets  are valued based on:•  Appraisals and third-party price opinions, less estimated selling costs Generally, we classify these assets as Level 3, but OREO and other repossessed properties for which we receive binding purchase agreements are classified as Level 2. Returned lease inventory is valued based on market data for similar assets and is classified as Level 2. Level 2 and 3Other equity investmentsWe have other investments in equity securities that do not have readily determinable fair values and do not qualify for the practical expedient to measure the investment using a net asset value per share.  We have elected to measure these securities at cost less impairment plus or minus adjustments due to observable orderly transactions. Impairment is recorded when there is evidence that the expected fair value of the investment has declined to below the recorded cost. At each reporting period, we assess if these investments continue to qualify for this measurement alternative.  At December 31, 2024, and December 31, 2023, the carrying amount of equity investments recorded under this method was $394 million and $339 million, respectively. We recorded $5 million of impairment for the year ended December 31, 2024. We recorded no impairment for the year ended December 31, 2023.Level 3Mortgage Servicing Rights(a)Refer to Note 9 (“Mortgage Servicing Assets”).Level 3(a)Asset classes included in “Accrued income and other assets” on the Consolidated Balance Sheets

139

Quantitative Information about Level 3 Fair Value MeasurementsThe range and weighted-average of the significant unobservable inputs used to fair value our material Level 3 recurring and nonrecurring assets at December 31, 2024, and December 31, 2023, along with the valuation techniques used, are shown in the following table:Level 3 Asset (Liability) Valuation TechniqueSignificantUnobservable InputRange(Weighted-Average) (a), (b)Dollars in millionsDecember 31, 2024December 31, 2023December 31, 2024December 31, 2023Recurring    Loans, net of unearned income (residential)$10 $9 Market comparable pricingComparability factor68.00%-95.00% (77.48%)62