KeyBank 2014 Annual Report Download - page 226

The table on the following pages shows selected financial data for our major business segments for the years
ended December 31, 2014, 2013, and 2012.
The information was derived from the internal financial reporting system that we use to monitor and manage our
financial performance. GAAP guides financial accounting, but there is no authoritative guidance for
“management accounting” — the way we use our judgment and experience to make reporting decisions.
Consequently, the line of business results we report may not be comparable to line of business results presented
by other companies.
The selected financial data is based on internal accounting policies designed to compile results on a consistent
basis and in a manner that reflects the underlying economics of the businesses. In accordance with our policies:
/Net interest income is determined by assigning a standard cost for funds used or a standard credit for funds
provided based on their assumed maturity, prepayment, and/or repricing characteristics.
/Indirect expenses, such as computer servicing costs and corporate overhead, are allocated based on
assumptions regarding the extent to which each line of business actually uses the services.
/The consolidated provision for loan and lease losses is allocated among the lines of business primarily based
on their actual net loan charge-offs, adjusted periodically for loan growth and changes in risk profile. The
amount of the consolidated provision is based on the methodology that we use to estimate our consolidated
ALLL. This methodology is described in Note 1 (“Summary of Significant Accounting Policies”) under the
heading “Allowance for Loan and Lease Losses.”
/Income taxes are allocated based on the statutory federal income tax rate of 35% and a blended state income
tax rate (net of the federal income tax benefit) of 2.2%.
/Capital is assigned to each line of business based on economic equity.
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