Acquisitions and Discontinued Operations

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

Acquisitions and Discontinued Operations

15. Acquisitions and Discontinued Operations

Acquisitions

Arbitria Quum Notitia, LLC (AQN Strategies). On February 25, 2021, KeyCorp acquired AQN Strategies, a diversified consulting practice, specializing in analytically driven strategies and solutions as it relates to bank transformations, credit and growth, and payments intelligence. The acquisition of AQN Strategies will advance Key’s analytics by adding senior talent and expertise directly aligned to Key’s focus areas. The acquisition was accounted for as a business combination. As a result, we recognized goodwill of $9 million. No other material assets were acquired or liabilities assumed as a result of the acquisition and the valuation was final at March 31, 2021.

XUP Payments. On November 19, 2021, KeyBank acquired XUP Payments, a B2B focused digital platform. The acquisition was accounted for as a business combination. As a result of the acquisition, we recognized goodwill of $20 million and no separately identified intangible assets were recorded. Other acquired assets and liabilities of XUP were immaterial. These amounts represent our best estimate of fair value and are expected to be finalized over a period of up to one year from the acquisiton date.

Discontinued operations

Discontinued operations includes our government-guaranteed and private education lending business.  At December 31, 2021, and December 31, 2020, approximately $567 million and $710 million, respectively, of education loans are included in discontinued assets on the consolidated balance sheets. Net interest income after provision for credit losses for this business is not material and is included in income (loss) from discontinued operations, net of taxes on the consolidated statements of income.