Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

12. Goodwill and Other Intangible Assets

Our annual goodwill impairment testing is performed as of October 1 each year, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. Additional information pertaining to our accounting policy for goodwill and other intangible assets is summarized in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Goodwill and Other Intangible Assets.”

For our annual test, we conducted a quantitative test as of October 1, 2021, and concluded goodwill was not impaired. We determined that the estimated fair value of the Consumer Bank reporting unit was 62% greater than its carrying amount, the estimated fair value of the Commercial Bank reporting unit was 60% greater than its carrying amount and the estimated fair value of the Institutional Bank reporting unit, which is aggregated in the Commercial Bank reporting segment, was 32% greater than its carrying amount. The fair values of each reporting unit were estimated using a combination of income and market approaches. The income approach utilized discounted cash flow projections for each reporting unit. The market approach consisted primarily of public company metrics but also considered recent transactions in the financial services industry. The carrying amounts of Key’s reporting units represent an average of regulatory and economic equity.

Changes in the carrying amount of goodwill by reporting segment are presented in the following table:

Dollars in millions	Consumer Bank		Commercial Bank		Total
BALANCE AT DECEMBER 31, 2019	$	1,752	$	912	$	2,664
BALANCE AT DECEMBER 31, 2020	1,752		912		2,664
AQN Strategies acquisition	9		—		9
XUP acquisition	—		20		20
BALANCE AT DECEMBER 31, 2021	$	1,761	$	932	$	2,693

Additional information regarding recent acquisitions is provided in Note 15 (“Acquisitions and Discontinued Operations”).

As of December 31, 2021, we expect goodwill in the amount of $455 million to be deductible for tax purposes in future periods.

There were no accumulated impairment losses related to any of Key’s reporting units at December 31, 2021, December 31, 2020, and December 31, 2019.

The following table shows the gross carrying amount and the accumulated amortization of intangible assets subject to amortization:

	2021				2020
December 31, Dollars in millions	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Intangible assets subject to amortization:
Core deposit intangibles	$	355	$	275	$	355	$	236
PCCR intangibles	16		13		16		12
Other intangible assets	82		35		105		40
Total	$	453	$	323	$	476	$	288

The following table presents estimated intangible asset amortization expense for the next five years.

	Estimated
Dollars in millions	2022		2023		2024		2025		2026
Intangible asset amortization expense	$	45	$	36	$	26	$	16	$	6