Capital One 2004 Annual Report Download - page 118

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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 23
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 2004 2003
Assets:
Cash and cash equivalents $ 16,858 $ 33,873
Investment in subsidiaries 6,714,847 6,000,005
Loans to subsidiaries(1) 3,723,739 1,748,608
Other 184,568 134,360
Total assets $10,640,012 $7,916,846
Liabilities:
Senior notes $ 1,766,185 $1,753,514
Borrowings from subsidiaries 456,385 75,180
Other 29,253 36,341
Total liabilities 2,251,823 1,865,035
Stockholders’ equity 8,388,189 6,051,811
Total liabilities and stockholders’ equity $10,640,012 $7,916,846
(1) As of December 31, 2004 and 2003, includes $1.9 billion and $576.6 million, respectively, of cash invested at the Bank instead of the
open market.
Year Ended December 31
Statements of Income 2004 2003 2002
Interest from temporary investments $ 84,982 $ 50,808 $ 44,220
Interest expense (152,656) (146,940) (124,097)
Dividends, principally from bank subsidiaries 1,000,013 776,019 880,069
Non-interest income 11,929 6,410 1,154
Non-interest expense (12,891) (3,119) (1,852)
Income before income taxes and equity in undistributed earnings of
subsidiaries 931,377 683,178 799,494
Income tax benefit 37,971 47,786 30,619
Equity in undistributed earnings of subsidiaries 574,134 404,878 69,531
Net income $1,543,482 $1,135,842 $ 899,644
95