Capital One 2002 Annual Report Download - page 77

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75
The Company maintains its books and records on a legal entity basis for the
preparation of financial statements in conformity with GAAP. 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.
The information presented in Note B, Segments, is prepared from the
Company’s internal management information system used in performance
evaluation and resource allocation by management, which is maintained on a
line of business level through allocations from legal entities.
Note W Capital One Financial Corporation (Parent Company Only)
Condensed Financial Information
December 31
Balance Sheets 2002 2001
Assets:
Cash and cash equivalents $ 6,385 $ 9,847
Investment in subsidiaries 5,146,632 3,327,778
Loans to subsidiaries(1) 1,105,005 950,231
Other 157,648 164,923
Total assets $ 6,415,670 $ 4,452,779
Liabilities:
Senior notes $ 1,567,415 $ 549,187
Borrowings from subsidiaries 192,878 569,476
Other 32,206 10,638
Total liabilities 1,792,499 1,129,301
Stockholders’ equity 4,623,171 3,323,478
Total liabilities and stockholders’ equity $ 6,415,670 $ 4,452,779
(1) As of December 31, 2002 and 2001, includes $293.9 million and $122.1 million, respectively, of cash invested at the Bank instead of the open market.
Year Ended December 31
Statements of Income 2002 2001 2000
Domestic
Interest from temporary investments $ 44,220 $ 48,595 $ 41,321
Interest expense (124,097) (53,536) (46,486)
Dividends, principally from bank subsidiaries 880,069 125,000 250,000
Non-interest income 1,154 4,847 61
Non-interest expense (1,852) (45,223) (8,184)
Income before income taxes and equity in
undistributed earnings of subsidiaries 799,494 79,683 236,712
Income tax benefit 30,619 17,221 5,049
Equity in undistributed earnings of subsidiaries 69,531 545,061 227,873
Net income $ 899,644 $ 641,965 $ 469,634