Capital One 2003 Annual Report Download - page 117

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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.
Note W
Capital One Financial Corporation (Parent Company Only)
Condensed Financial Information
The following Parent Company Only financial statements are provided in accordance with Regulation S-X of the
Securities and Exchange Commission which requires all issuers or guarantors of registered securities to include
separate annual financial statements.
December 31
Balance Sheets 2003 2002
Assets:
Cash and cash equivalents $ 33,873 $ 6,385
Investment in subsidiaries 6,000,005 5,146,632
Loans to subsidiaries(1) 1,748,608 1,105,005
Other 134,360 157,648
Total assets $7,916,846 $6,415,670
Liabilities:
Senior notes $1,753,514 $1,567,415
Borrowings from subsidiaries 75,180 192,878
Other 36,341 32,206
Total liabilities 1,865,035 1,792,499
Stockholders’ equity 6,051,811 4,623,171
Total liabilities and stockholders’ equity $7,916,846 $6,415,670
(1) As of December 31, 2003 and 2002, includes $576.6 million and $293.9 million, respectively, of cash invested at the Bank instead of the
open market.
Year Ended December 31
Statements of Income 2003 2002 2001
Interest from temporary investments $ 50,808 $ 44,220 $ 48,595
Interest expense (146,940) (124,097) (53,536)
Dividends, principally from bank subsidiaries 776,019 880,069 125,000
Non-interest income 6,410 1,154 4,847
Non-interest expense (3,119) (1,852) (45,223)
Income before income taxes and equity in undistributed earnings of
subsidiaries 683,178 799,494 79,683
Income tax benefit 47,786 30,619 17,221
Equity in undistributed earnings of subsidiaries 404,878 69,531 545,061
Net income $1,135,842 $ 899,644 $641,965
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