KeyBank 2007 Annual Report Download - page 60

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58
MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS KEYCORP AND SUBSIDIARIES
Income taxes. For the fourth quarter of 2007, Key recorded a tax
benefit of $83 million from continuing operations as a result of a pre-
tax loss from continuing operations for that period. For the fourth
quarter of 2006, Key recorded a tax provision of $97 million, resulting
in an effective tax rate of 23.8%. The effective tax rate for the year-ago
quarter was reduced by the settlement of various federal and state tax
audit disputes, offset in part by an increase in effective state tax rates
applied to Key’s lease financing business. Excluding these items, the
effective tax rate for the fourth quarter of 2006 was 26.7%, compared
to Key’s combined federal and state tax rate of 37.5%. For a discussion
of the factors that account for the difference between Key’s effective tax
rate and the combined statutory tax rate, and matters pending resolution
with the IRS, see the section entitled “Income taxes,” which begins on
page 34.
CERTIFICATIONS
KeyCorp has filed, as exhibits to its Annual Report on Form 10-K for
the year ended December 31, 2007, the certifications of its Chief
Executive Officer and Chief Financial Officer required pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.
On May 18, 2007, KeyCorp submitted to the New York Stock Exchange
the Annual CEO Certification required pursuant to Section 303A.12(a)
of the New York Stock Exchange Listed Company Manual.