KeyBank 2008 Annual Report Download - page 91

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES
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Equipment Finance meets the equipment leasing needs of companies
worldwide and provides equipment manufacturers, distributors and resellers
with financing options for their clients. Lease financing receivables and
related revenues are assigned to other lines of business (primarily Institutional
and Capital Markets, and Commercial Banking) if those businesses are
principally responsible for maintaining the relationship with the client.
Institutional and Capital Markets,through its KeyBanc Capital Markets
unit, provides commercial lending, treasury management, investment
banking, derivatives, foreign exchange, equity and debt underwriting
and trading, and syndicated finance products and services to large
corporations and middle-market companies.
Through its Victory Capital Management unit, Institutional and Capital
Markets also manages or offers advice regarding investment portfolios
for a national client base, including corporations, labor unions, not-for-
profit organizations, governments and individuals. These portfolios
may be managed in separate accounts, common funds or the Victory
family of mutual funds.
Consumer Finance provides government-guaranteed education loans to
students and their parents, and processes tuition payments for private
schools. Through its Commercial Floor Plan Lending unit, this line of
business also finances inventory for automobile dealers. In October 2008,
Consumer Finance exited retail and floor-plan lending for marine and
recreational vehicle products and began to limit new education loans to
those backed by government guarantee. This line of business continues
to service existing loans in these portfolios and to honor existing
education loan commitments. These actions are consistent with Key’s
strategy of de-emphasizing nonrelationship or out-of-footprint businesses.
OTHER SEGMENTS
Other Segments consist of Corporate Treasury and Key’s Principal
Investing unit.
RECONCILING ITEMS
Total assets included under “Reconciling Items” primarily represent the
unallocated portion of nonearning assets of corporate support functions.
Charges related to the funding of these assets are part of net interest
income and are allocated to the business segments through noninterest
expense. Reconciling Items also includes intercompany eliminations
and certain items that are not allocated to the business segments because
they do not reflect their normal operations.
Other Segments Total Segments Reconciling Items Key
2008 2007 2006 2008 2007 2006 2008 2007 2006 2008 2007 2006
$(134) $(95) $(112) $2,105 $3,007 $3,035 $(150) $(139) $(117) $ 1,955 $2,868 $2,918
34 209
(e)
141 1,714 2,154 2,111 156
(f)
75
(f)
16
(f)
1,870 2,229 2,127
(100) 114 29 3,819 5,161 5,146 6(64) (101) 3,825 5,097 5,045
———1,838 531 151 (3) (2) (1) 1,835 529 150
—— — 900 430 394 —— — 900 430 394
11
(e)
55
(e)
27 2,738 2,742 2,797 (60)
(f)
76
(f)
(42) 2,678 2,818 2,755
(111) 59 2 (1,657) 1,458 1,804 69 (138) (58) (1,588) 1,320 1,746
(87) (25) (40) (491) 502 635 371 (123) (82) (120) 379 553
(24) 84 42 (1,166) 956 1,169 (302) (15) 24 (1,468) 941 1,193
———–— (22) (143) ————(22) (143)
(24) 84 42 (1,166) 934 1,026 (302) (15) 24 (1,468) 919 1,050
————————5——5
$ (24) $ 84 $ 42 $(1,166) $ 934 $1,026 $(302) $ (15) $ 29 $(1,468) $ 919 $1,055
N/M 9% 3% N/M 102% 98% N/M (2)% 2% N/M 100% 100%
N/M 9 4 N/M 100 100 N/A N/A N/A N/A N/A N/A
$ 209 $ 255 $ 298 $75,512 $67,190 $64,853 $ 107 $ 167 $ 143 $ 75,619 $67,357 $64,996
14,992 12,665 11,624 103,139 92,884 89,439 1,251 2,000 2,263 104,390 94,884 91,702
2,819 3,035 1,890 65,341 61,859 59,491 (186) (120) (188) 65,155 61,739 59,303
—— — $ 515 $173 $101 $156 $166 $104 $ 671 $339 $205
———1,260 275 170 ———1,260 275 170
N/M N/M N/M (13.35)% 13.24% 17.02% N/M N/M N/M (16.45)% 12.19% 15.43%
N/M N/M N/M (13.35) 12.94 14.42 N/M N/M N/M (16.45) 11.90 13.64
42 43 40 12,386 12,936 14,075 5,709 5,998 5,931 18,095 18,934 20,006