Capital One 2001 Annual Report Download - page 66

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64 notes
Note S
Capital One Financial Corporation
(Parent Company Only) Condensed
Financial Information
Balance Sheets as of December 31 2001 2000
Assets:
Cash and cash equivalents $9,847 $ 9,284
Investment in subsidiaries 3,327,778 1,832,387
Loans to subsidiaries(1) 950,231 808,974
Other 164,923 98,034
Total assets $4,452,779 $ 2,748,679
Liabilities:
Senior notes $549,187 $ 549,042
Borrowings from subsidiaries 569,476 204,367
Other 10,638 32,756
Total liabilities 1,129,301 786,165
Stockholders’ equity 3,323,478 1,962,514
Total liabilities and
stockholders’ equity $4,452,779 $ 2,748,679
(1) As of December 31, 2001 and 2000, includes $122,053 and $63,220, respectively,
of cash invested at the Bank instead of the open market.
Statements of Income for
the Year Ended December 31 2001 2000 1999
Interest from
temporary investments $48,595 $ 41,321 $ 32,191
Interest expense (53,536) (46,486) (41,011)
Dividends, principally
from bank subsidiaries 125,000 250,000 220,001
Non-interest income 4,847 61 39
Non-interest expense (45,223) (8,184) (6,274)
Income before income taxes
and equity in undistributed
earnings of subsidiaries 79,683 236,712 204,946
Income tax benefit 17,221 5,049 5,721
Equity in undistributed
earnings of subsidiaries 545,061 227,873 152,424
Net income $641,965 $ 469,634 $ 363,091
Note R
International Activities
The Company’s international activities are primarily performed
through Capital One Bank (Europe) plc, a subsidiary bank of the
Bank that provides consumer lending and other financial products in
the United Kingdom and France, and Capital One Bank—Canada
Branch, a foreign branch office of the Bank that provides consumer
lending products in Canada. The total assets, revenue, income before
income taxes and net income of the international operations are
summarized below.
Because certain international operations are integrated with many of
the Company’s domestic operations, estimates and assumptions have
been made to assign certain expense items between domestic and
foreign operations. Amounts are allocated for income taxes and other
items incurred.
2001 2000 1999
Domestic
Total assets $25,254,438 $ 15,719,760 $10,202,219
Revenue(1) 5,609,616 4,336,911 3,246,868
Income before income taxes 1,064,240 906,732 661,759
Net income 660,809 562,174 415,631
International
Total assets 2,929,609 3,169,581 3,134,224
Revenue(1) 473,667 286,390 178,093
Income before income taxes (29,000) (149,258) (84,742)
Net loss (18,844) (92,540) (52,540)
Total Company
Total assets $28,184,047 $ 18,889,341 $13,336,443
Revenue(1) 6,083,283 4,623,301 3,424,961
Income before income taxes 1,035,420 757,474 577,017
Net income 641,965 469,634 363,091
(1) Revenue equals net interest income plus non-interest income.