NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES The calculation of Key’s net income and earnings per common share, excluding goodwill amortization, is presented below.  Year ended December 31, dollars in millions, except per share amounts 2003 2002 2001 EARNINGS Net income $903 $976 $132 Add: Goodwill amortization GLYPH<209> GLYPH<209> 82 a Adjusted net income $903 $976 $214 WEIGHTED AVERAGE COMMON SHARES Weighted-average common shares outstanding (000) 422,776 425,451 424,275 Weighted-average common shares and potential  common shares outstanding (000) 426,157 430,703 429,573 EARNINGS PER COMMON SHARE Net income per common share $2.13 $2.29 $.31 Add: Goodwill amortization GLYPH<209> GLYPH<209> .19 a Adjusted net income per common share $2.13 $2.29 $.50 Adjusted net income per common share GLYPH<209> assuming dilution $2.12 $2.27 $.50 a Goodwill amortization for 2001 excludes a $150 million write-down (equivalent to $.35 per both basic and diluted common share) associated with KeyGLYPH<213>s decision to downsize the automobile GLYPH<222>nance business. The following table shows the gross carrying amount and the accumulated amortization of intangible assets that are subject to amortization. December 31, 2003 2002 Gross Carrying Accumulated Gross Carrying Accumulated in millions Amount Amortization Amount Amortization Intangible assets subject to amortization: Core deposit intangibles $228 $208 $227 $197 Other intangible assets 24 7 11 6 Total $252 $215 $238 $203 Corporate and Investment Consumer Investment Management in millions Banking Banking Services Total BALANCE AT DECEMBER 31, 2002 $480 $213 $449 $1,142 Changes in goodwill: Acquisition of NewBridge Partners GLYPH<209> GLYPH<209> 12 12 Adjustment of Union Bankshares, Ltd. goodwill (4) GLYPH<209> GLYPH<209> (4) BALANCE AT DECEMBER 31, 2003 $476 $213 $461 $1,150 Key’s annual impairment testing of goodwill was performed at October 1, 2003, and was completed during the fourth quarter. The test determined that no impairment of Key’s goodwill existed at that date. Additional information pertaining to the accounting for intangible assets is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Goodwill and Other Intangible Assets” on page 53.  During 2003, other intangible assets with a fair value of $14 million were acquired in conjunction with the purchase of NewBridge Partners and are being amortized using either an accelerated or straight-line method Changes in the carrying amount of goodwill by major business group are as follows:  over periods ranging from 3 to 10 years. Additional information pertaining to this acquisition is discussed in Note 3 (“Acquisitions and Divestiture”) on page 57.  67 NEXT PAGE BACK TO CONTENTS SEARCH PREVIOUS PAGE