Earnings Per Common Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Common Share

2. Earnings Per Common Share

Our basic and diluted earnings per Common Share are calculated as follows:

	Three months ended  March 31,
dollars in millions, except per share amounts	2012		2011
EARNINGS
Income (loss) from continuing operations	$	205	$	282
Less: Net income (loss) attributable to noncontrolling interests		—		8
Income (loss) from continuing operations attributable to Key		205		274
Less: Dividends on Series A Preferred Stock		6		6
Cash dividends on Series B Preferred Stock (b)		—		31
Amortization of discount on Series B Preferred Stock (b)		—		53
Income (loss) from continuing operations attributable to Key common shareholders		199		184
Income (loss) from discontinued operations, net of taxes(a)		(5)		(11)
Net income (loss) attributable to Key common shareholders	$	194	$	173
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average common shares outstanding (000)		949,342		881,894
Effect of dilutive convertible preferred stock, common share options and other stock awards (000)		4,629		5,942
Weighted-average common shares and potential common shares outstanding (000)		953,971		887,836
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.21	$	.21
Income (loss) from discontinued operations, net of taxes (a)		(.01)		(.01)
Net income (loss) attributable to Key common shareholders(c)		.20		.20
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	$	.21	$	.21
Income (loss) from discontinued operations, net of taxes (a)		(.01)		(.01)
Net income (loss) attributable to Key common shareholders — assuming dilution (c)		.20		.19

(a) In April 2009, we decided to wind down the operations of Austin, a subsidiary that specialized in managing hedge fund investments for institutional customers. In September 2009, we decided to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank. As a result of these decisions, we have accounted for these businesses as discontinued operations. The loss from discontinued operations for the periods ended March 31, 2012 and March 31, 2011, was primarily attributable to fair value adjustments related to the education lending securitization trusts.

(b) Includes a $49 million deemed dividend recorded in the first quarter of 2011 related to the repurchase of the $2.5 billion Series B Preferred Stock.

(c) EPS may not foot due to rounding.