Capital One 2000 Annual Report Download - page 56

The Corporation has three shelf registration statements under
which the Corporation from time to time may offer and sell (i) sen-
ior or subordinated debt securities, consisting of debentures, notes
and/or other unsecured evidences, (ii) preferred stock, which may
be issued in the form of depository shares evidenced by deposi-
tory receipts and (iii) common stock. The amount of securities
registered is limited to a $1,550,000 aggregate public offering price
or its equivalent (based on the applicable exchange rate at the time
of sale) in one or more foreign currencies, currency units or com-
posite currencies as shall be designated by the Corporation. At
December 31, 2000, the Corporation had existing unsecured senior
debt outstanding under the shelf registrations of $550,000 includ-
ing $125,000 maturing in 2003, $225,000 maturing in 2006, and
$200,000 maturing in 2008. In January 2001, the Corporation also
issued 6,750,390 shares of common stock in a public offering
under the shelf registrations. The net proceeds from the issuance
were $412,786. Proceeds from the sale of stock are to be used for
general corporate purposes.
Interest-bearing deposits, other borrowings and senior notes
as of December 31, 2000, mature as follows:
Interest-bearing Other
Deposits Borrowings Senior Notes Total
2001 $ 4,094,147 $ 2,205,158 $ 665,000 $ 6,964,305
2002 1,323,608 241,452 532,620 2,097,680
2003 817,722 209,573 1,105,689 2,132,984
2004 604,712 125,352 295,000 1,025,064
2005 1,234,959 45,967 811,294 2,092,220
Thereafter 303,877 98,436 640,994 1,043,307
Total $ 8,379,025 $ 2,925,938 $ 4,050,597 $ 15,355,560
Note F
ASSOCIATE BENEFIT AND STOCK PLANS
The Company sponsors a contributory Associate Savings Plan in
which substantially all full-time and certain part-time associates are
eligible to participate. The Company makes contributions to each el-
igible employee's account, matches a portion of associate
contributions and makes discretionary contributions based upon the
Company meeting a certain earnings per share target. The Company's
contributions to this plan were $44,486, $27,157 and $16,357 for the
years ended December 31, 2000, 1999 and 1998, respectively.
The Company has five stock-based compensation plans. The
Company applies Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees" ("APB 25") and related
Interpretations in accounting for its stock-based compensation
plans. In accordance with APB 25, no compensation cost has been
recognized for the Company's fixed stock options, since the
exercise price of all options equals or exceeds the market price of
the underlying stock on the date of grant, nor for the Associate
Stock Purchase Plan (the "Purchase Plan"), which is considered to
be noncompensatory. For the performance-based option grants
discussed below, compensation cost is measured as the difference
between the exercise price and the target stock price required for
vesting and is recognized over the estimated vesting period. The
Company recognized $10,994, $44,542 and $70,038 of
compensation cost relating to its associate stock plans for the years
ended December 31, 2000, 1999 and 1998, respectively.
SFAS No. 123, "Accounting for Stock-Based Compensation"
("SFAS 123") requires, for companies electing to continue to follow
the recognition provisions of APB 25, pro forma information regard-
ing net income and earnings per share, as if the recognition
provisions of SFAS 123 were adopted for stock options granted sub-
sequent to December 31, 1994. For purposes of pro forma
disclosure, the fair value of the options was estimated at the date
of grant using a Black-Scholes option-pricing model with the
weighted average assumptions described below and is amortized to
expense over the options' vesting period.
Year Ended December 31 2000 1999 1998
ASSUMPTIONS
Dividend yield .21% .24% .32%
Volatility factors of expected
market price of stock 49% 45% 40%
Risk-free interest rate 6.09% 5.29% 5.44%
Expected option lives
(in years) 4.5 5.4 5.2
PRO FORMA INFORMATION
Net income $ 412,987 $325,701$287,637
Basic earnings per share $2.10$1.65$1.46
Diluted earnings per share $1.97$1.55$1.38
54 notes