KeyBank 2014 Annual Report Download - page 205

over a weighted-average period of 2.5 years. The total fair value of shares vested was $6 million during 2014, $7
million during 2013, and $7 million during 2012. Dividend equivalents presented in the preceding table represent
the value of dividends accumulated during the vesting period.
Discounted Stock Purchase Plan
Our Discounted Stock Purchase Plan provides employees the opportunity to purchase our common shares at a 10%
discount through payroll deductions or cash payments. Purchases are limited to $10,000 in any month and $50,000
in any calendar year, and are immediately vested. To accommodate employee purchases, we either issue treasury
shares or acquire common shares on the open market on or around the fifteenth day of the month following the
month employee payments are received. We issued 238,257 common shares at a weighted-average cost to the
employee of $12.06 during 2014, 264,775 common shares at a weighted-average cost to the employee of $9.83
during 2013, and 301,794 common shares at a weighted-average cost to the employee of $7.30 during 2012.
Information pertaining to our method of accounting for stock-based compensation is included in Note 1
(“Summary of Significant Accounting Policies”) under the heading “Stock-Based Compensation.”
16. Employee Benefits
In accordance with the applicable accounting guidance for defined benefit and other postretirement plans, we
measure plan assets and liabilities as of the end of the fiscal year.
Pension Plans
Effective December 31, 2009, we amended our cash balance pension plan and other defined benefit plans to
freeze all benefit accruals and close the plans to new employees. We will continue to credit participants’ existing
account balances for interest until they receive their plan benefits. We changed certain pension plan assumptions
after freezing the plans.
Pre-tax AOCI not yet recognized as net pension cost was $587 million at December 31, 2014, and $529 million
at December 31, 2013, consisting entirely of net unrecognized losses. During 2015, we expect to recognize $18
million of net unrecognized losses in pre-tax AOCI as net pension cost.
During 2014 and 2013, lump sum payments made under certain pension plans triggered settlement accounting. In
accordance with the applicable accounting guidance for defined benefit plans, we performed a remeasurement of
the affected plans in conjunction with the settlement and recognized the settlement loss as reflected in the
following table.
The components of net pension cost and the amount recognized in OCI for all funded and unfunded plans are as
follows:
Year ended December 31,
in millions 2014 2013 2012
Interest cost on PBO $46 $42 $47
Expected return on plan assets (66) (67) (70)
Amortization of losses 16 19 16
Settlement loss 23 27 —
Net pension cost (benefit) $19 $ 21 $ (7)
Other changes in plan assets and benefit obligations recognized in OCI:
Net (gain) loss $97 $(106) $ 63
Amortization of losses (39) (46) (16)
Total recognized in comprehensive income $58 $(152) $ 47
Total recognized in net pension cost and comprehensive income $77 $(131) $ 40
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