Condensed Financial Information of the Parent Company

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of the Parent Company

25. Condensed Financial Information of the Parent Company

CONDENSED BALANCE SHEETS

December 31, in millions	2016		2015
ASSETS
Cash and due from banks	$	3,286	$	2,608
Short-term investments	70		58
Securities available for sale	10		10
Other investments	25		14
Loans to:
Banks	250		250
Nonbank subsidiaries	31		187
Total loans	281		437
Investment in subsidiaries:
Banks	14,564		9,955
Nonbank subsidiaries	668		703
Total investment in subsidiaries	15,232		10,658
Goodwill	167		167
Other intangible assets	—		—
Corporate-owned life insurance	207		206
Derivative assets	53		12
Accrued income and other assets	451		319
Total assets	$	19,782	$	14,489
LIABILITIES
Accrued expense and other liabilities	$	553	$	503
Derivative liabilities	2		—
Long-term debt due to:
Subsidiaries	850		423
Unaffiliated companies	3,137		2,817
Total long-term debt	3,987		3,240
Total liabilities	4,542		3,743
SHAREHOLDERS’ EQUITY (a)	15,240		10,746
Total liabilities and shareholders’ equity	$	19,782	$	14,489

(a) See Key’s Consolidated Statements of Changes in Equity.

CONDENSED STATEMENTS OF INCOME

Year ended December 31,
in millions	2016			2015			2014
INCOME
Dividends from subsidiaries:
Bank subsidiaries	$	625		$	1,000		$	300
Nonbank subsidiaries	50			1			—
Interest income from subsidiaries	10			10			16
Other income	11			20			15
Total income	696			1,031			331
EXPENSE
Interest on long-term debt with subsidiary trusts	16			10			10
Interest on other borrowed funds	67			52			53
Personnel and other expense	101			73			40
Total expense	184			135			103
Income (loss) before income taxes and equity in net income (loss) less dividends from subsidiaries	512			896			228
Income tax (expense) benefit	54			39			45
Income (loss) before equity in net income (loss) less dividends from subsidiaries	566			935			273
Equity in net income (loss) less dividends from subsidiaries(a)	224			(15		)	634
NET INCOME (LOSS)	790			920			907
Less: Net income attributable to noncontrolling interests	(1		)	4			7
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	$	791		$	916		$	900

(a) Includes results of discontinued operations described in Note 14 (“Acquisition, Divestiture, and Discontinued Operations”).

CONDENSED STATEMENTS OF CASH FLOWS

Year ended December 31,
in millions	2016			2015			2014
OPERATING ACTIVITIES
Net income (loss) attributable to Key	$	791		$	916		$	900
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred income taxes (benefit)	(24		)	10			(8		)
Stock-based compensation expense	12			9			14
Equity in net (income) loss less dividends from subsidiaries(a)	(224		)	15			(634		)
Other intangible asset amortization	—			2			—
Net (increase) decrease in goodwill and other intangibles	—			86			—
Net (increase) decrease in other assets	(93		)	29			(53		)
Net increase (decrease) in other liabilities	9			(7		)	98
Other operating activities, net	—			(52		)	24
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	471			1,008			341
INVESTING ACTIVITIES
Net (increase) decrease in short-term and other investments	(17		)	(27		)	4
Purchases of securities available for sale	—			(11		)	(2		)
Cash used in acquisitions	(481		)	—			(114		)
Proceeds from sales, prepayments and maturities of securities available for sale	—			20			—
Net (increase) decrease in loans to subsidiaries	160			(146		)	257
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(338		)	(164		)	145
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	—			1,000			—
Payments on long-term debt	(21		)	(750		)	—
Repurchase of Treasury Shares	(140		)	(448		)	(484		)
Net proceeds from the issuance of common shares and preferred stock	1,041			22			27
Cash dividends paid	(335		)	(267		)	(240		)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	545			(443		)	(697		)
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS	678			401			(211		)
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR	2,608			2,207			2,418
CASH AND DUE FROM BANKS AT END OF YEAR	$	3,286		$	2,608		$	2,207

(a) Includes results of discontinued operations described in Note 14 (“Acquisition, Divestiture, and Discontinued Operations”).

KeyCorp paid interest on borrowed funds totaling $114 million in 2016, $112 million in 2015, and $114 million in 2014.