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Condensed Financial Information of the Parent Company
 12 Months Ended
Dec. 31, 2018
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of the Parent Company 25. Condensed Financial Information of the Parent Company
CONDENSED BALANCE SHEETS
December 31,
in millions
2018
2017
ASSETS
 
 
Cash and due from banks
$
3,241

$
2,257

Short-term investments
19

22

Securities available for sale
10

10

Other investments
31

29

Loans to:
 
 
Banks
50

250

Nonbank subsidiaries
31

31

Total loans
81

281

Investment in subsidiaries:
 
 
Banks
15,554

15,169

Nonbank subsidiaries
833

885

Total investment in subsidiaries
16,387

16,054

Goodwill
167

167

Corporate-owned life insurance
199

208

Derivative assets
61

29

Accrued income and other assets
279

353

Total assets
$
20,475

$
19,410

LIABILITIES
 
 
Accrued expense and other liabilities
$
480

$
466

Long-term debt due to:
 
 
Subsidiaries
471

480

Unaffiliated companies
3,929

3,441

Total long-term debt
4,400

3,921

Total liabilities
4,880

4,387

SHAREHOLDERS’ EQUITY (a)
15,595

15,023

Total liabilities and shareholders’ equity
$
20,475

$
19,410

 
 
 
(a)
See Key’s Consolidated Statements of Changes in Equity.

CONDENSED STATEMENTS OF INCOME
Year ended December 31,
 
 
 
in millions
2018
2017
2016
INCOME
 
 
 
Dividends from subsidiaries:
 
 
 
Bank subsidiaries
$
1,675

$
750

$
625

Nonbank subsidiaries
—

—

50

Interest income from subsidiaries
11

10

10

Other income
11

9

11

Total income
1,697

769

696

EXPENSE
 
 
 
Interest on long-term debt with subsidiary trusts
20

17

14

Interest on other borrowed funds
137

95

69

Personnel and other expense
69

46

101

Total expense
226

158

184

Income (loss) before income taxes and equity in net income (loss) less dividends from subsidiaries
1,471

611

512

Income tax (expense) benefit
55

29

54

Income (loss) before equity in net income (loss) less dividends from subsidiaries
1,526

640

566

Equity in net income (loss) less dividends from subsidiaries
340

658

224

NET INCOME (LOSS)
1,866

1,298

790

Less: Net income attributable to noncontrolling interests
—

2

(1
)
NET INCOME (LOSS) ATTRIBUTABLE TO KEY
$
1,866

$
1,296

$
791

 
 
 
 
.

CONDENSED STATEMENTS OF CASH FLOWS
Year ended December 31,
 
 
 
in millions
2018
2017
2016
OPERATING ACTIVITIES
 
 
 
Net income (loss) attributable to Key
$
1,866

$
1,296

$
791

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
Deferred income taxes (benefit)
109

38

(24
)
Stock-based compensation expense
8

11

12

Equity in net (income) loss less dividends from subsidiaries
(340
)
(658
)
(224
)
Other intangible asset amortization
—

—

—

Net (increase) decrease in goodwill and other intangibles
—

—

—

Net (increase) decrease in other assets
(58
)
82

(93
)
Net increase (decrease) in other liabilities
8

(82
)
9

Other operating activities, net
79

(114
)
—

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
1,672

573

471

INVESTING ACTIVITIES
 
 
 
Net (increase) decrease in securities available for sale and in short-term and other investments
1

47

(17
)
Cash infusion from purchase of Cain Brothers
—

(90
)
—

Cash used in acquisitions
—

—

(481
)
Proceeds from sales, prepayments and maturities of securities available for sale
—

1

—

Net (increase) decrease in loans to subsidiaries
200

—

160

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
201

(42
)
(338
)
FINANCING ACTIVITIES
 
 
 
Net proceeds from issuance of long-term debt
1,250

—

—

Payments on long-term debt
(750
)
—

(21
)
Repurchase of Treasury Shares
(1,145
)
(730
)
(140
)
Net cash from the issuance (redemption) of Common Shares and preferred stock
412

(350
)
1,041

Cash dividends paid
(656
)
(480
)
(335
)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
(889
)
(1,560
)
545

NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS
984

(1,029
)
678

CASH AND DUE FROM BANKS AT BEGINNING OF YEAR
2,257

3,286

2,608

CASH AND DUE FROM BANKS AT END OF YEAR
$
3,241

$
2,257

$
3,286

 
 
 
 
KeyCorp paid interest on borrowed funds totaling $131 million in 2018, $120 million in 2017, and $114 million in 2016.