KeyBank 2006 Annual Report Download - page 46

Download and view the complete annual report

Please find page 46 of the 2006 KeyBank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

46
MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS KEYCORP AND SUBSIDIARIES
in Note 1 under the heading “Loan Securitizations” on page 69, Note 6
(“Securities”), which begins on page 80, and Note 8 under the heading
“Retained Interests in Loan Securitizations” on page 83.
Commitments to extend credit or funding. Loan commitments provide for
financing on predetermined terms as long as the client continues to meet
specified criteria. These commitments generally carry variable rates of
interest and have fixed expiration dates or other termination clauses. In
many cases, a client must pay a fee to obtain a loan commitment from Key.
Since a commitment may expire without resulting in a loan, the total
amount of outstanding commitments may exceed Key’s eventual cash
outlay significantly. Further information about Key’s loan commitments at
December 31, 2006, is presented in Note 18 (“Commitments, Contingent
Liabilities and Guarantees”) under the heading “Commitments to Extend
Credit or Funding” on page 97. Figure 27 includes the remaining contractual
amount of each class of commitments to extend credit or funding. For loan
commitments and commercial letters of credit, this amount represents Key’s
maximum possible accounting loss if the borrower were to draw upon the
full amount of the commitment and subsequently default on payment for
the total amount of the then outstanding loan.
Other off-balance sheet arrangements. Other off-balance sheet
arrangements include financial instruments that do not meet the definition
of a guarantee as specified in Interpretation No. 45, “Guarantor’s
Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others,” and other relationships,
such as liquidity support provided to asset-backed commercial paper
conduits, indemnification agreements and intercompany guarantees.
Information about such arrangements is provided in Note 18 under
the heading “Other Off-Balance Sheet Risk” on page 99.
Contractual obligations
Figure 27 summarizes Key’s significant contractual obligations, and
lending-related and other off-balance sheet commitments at December
31, 2006, by the specific time periods in which related payments are due
or commitments expire.
After After
December 31, 2006 Within 1Through 3 Through After
in millions 1 Year 3 Years 5 Years 5 Years Total
Contractual obligations:
a
Deposits with no stated maturity $39,535 — — — $39,535
Time deposits of $100,000 or more 6,263 $ 593 $ 242 $ 527 7,625
Other time deposits 8,819 1,781 400 956 11,956
Federal funds purchased and securities sold
under repurchase agreements 3,643 — — — 3,643
Bank notes and other short-term borrowings 1,192 — — — 1,192
Long-termdebt 3,885 3,543 1,670 5,435 14,533
Noncancelable operating leases 125 209 147 256 737
Purchase obligations:
Banking and financial data services 72 61 14 — 147
Telecommunications 22 9 — — 31
Professional services 24 6 2 — 32
Technology equipment and software 69 25 14 — 108
Other 15 12 4 1 32
Total purchase obligations 202 113 34 1 350
Total $63,664 $6,239 $2,493 $7,175 $79,571
Lending-related and other off-balance sheet commitments:
Commercial, including real estate $11,629 $9,802 $8,887 $ 1,953 $32,271
Home equity — — 63 7,625 7,688
When-issued and to be announced
securities commitments — — — 671 671
Commercial letters of credit 188 54 2 2 246
Principal investing commitments 1 12 31 200 244
Liabilities of certain limited partnerships
and other commitments 2 5 — 133 140
Total $11,820 $9,873 $8,983 $10,584 $41,260
a
Deposits and borrowings exclude interest.
FIGURE 27. CONTRACTUAL OBLIGATIONS AND OTHER OFF-BALANCE SHEET COMMITMENTS
Guarantees
Key is a guarantor in various agreements with thirdparties. As guarantor,
Key may be contingently liable to make payments to the guaranteed party
based on changes in a specified interest rate, foreign exchange rate or other
variable (including the occurrence or nonoccurrence of a specified event).
These variables, known as underlyings, may be related to an asset or
liability,or another entity’sfailure to perform under a contract. Additional
information regarding these types of arrangements is presented in Note 18
under the heading “Guarantees” on page 98.
Previous Page
Search
Next Page
Contents