KeyBank 2015 Annual Report Download - page 213

granted under our deferred compensation plans and the other restricted stock or unit award programs totaled $14
million. We expect to recognize this cost over a weighted-average period of 2.2 years. The total fair value of
shares vested was $15 million in 2015, $12 million in 2014, and $19 million in 2013. 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 issue
treasury shares on or around the fifteenth day of the month following the month employee payments are received.
We issued 250,913 common shares at a weighted-average cost to the employee of $12.55 during 2015, 238,257
common shares at a weighted-average cost to the employee of $12.06 during 2014, and 264,775 common shares
at a weighted-average cost to the employee of $9.83 during 2013.
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 $593 million at December 31, 2015, and $587 million
at December 31, 2014, consisting entirely of net unrecognized losses. During 2016, we expect to recognize $17
million of net unrecognized losses in pre-tax AOCI as net pension cost.
During 2015, 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 2015 2014 2013
Interest cost on PBO $41 $46 $ 42
Expected return on plan assets (56) (66) (67)
Amortization of losses 18 16 19
Settlement loss 23 23 27
Net pension cost (benefit) $26 $19 $ 21
Other changes in plan assets and benefit obligations recognized in OCI:
Net (gain) loss $47 $ 97 $(106)
Amortization of losses (41) (39) (46)
Total recognized in comprehensive income $6 $ 58 $(152)
Total recognized in net pension cost and comprehensive income $32 $ 77 $(131)
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