Capital One 2004 Annual Report Download - page 98

Junior Subordinated Capital Income Securities
In January 1997, Capital One Capital I, a subsidiary of the Bank created as a Delaware statutory business trust,
issued $100.0 million aggregate amount of Floating Rate Junior Subordinated Capital Income Securities that
mature on February 1, 2027. The securities represent a preferred beneficial interest in the assets of the trust.
Other Short-Term Borrowings
Revolving Credit Facility
In June 2004, the Company terminated its Domestic Revolving and Multicurrency Credit Facilities and replaced
them with a new revolving credit facility (“Credit Facility”) providing for an aggregate of $750.0 million in
unsecured borrowings from various lending institutions to be used for general corporate purposes. The Credit
Facility is available to the Corporation, the Bank, the Savings Bank, and Capital One Bank, plc. The
Corporation’s availability has been increased to $500.0 million under the Credit Facility. All borrowings under
the Credit Facility are based upon varying terms of London Interbank Offering Rate (“LIBOR”).
Collateralized Revolving Credit Facility
In April 2002, COAF entered into a revolving warehouse credit facility collateralized by a security interest in
certain auto loan assets (the “Collateralized Revolving Credit Facility”). As of December 31, 2004, the
Collateralized Revolving Credit Facility had the capacity to issue up to $4.4 billion in secured notes. The
Collateralized Revolving Credit Facility has multiple participants, each with a separate renewal date. The facility
does not have a final maturity date. Instead, each participant may elect to renew the commitment for another set
period of time. Interest on the facility is based on commercial paper rates. At December 31, 2004 and 2003,
$197.5 million and $1.2 billion, respectively, were outstanding under the facility.
Interest-bearing deposits, senior notes and other borrowings as of December 31, 2004, mature as follows:
Interest-
Bearing
Deposits
Senior
Notes
Other
Borrowings Total
2005 $ 7,682,475 $1,456,523 $4,837,008 $13,976,006
2006 5,066,053 1,225,275 2,587,405 8,878,733
2007 4,065,988 299,900 1,359,217 5,725,105
2008 2,416,812 1,497,359 652,839 4,567,010
2009 5,174,280 498,850 200,550 5,873,680
Thereafter 1,231,194 1,896,883 — 3,128,077
Total $25,636,802 $6,874,790 $9,637,019 $42,148,611
Note 7
Stock Plans
The Company has two stock-based compensation plans: one employee plan and one non-employee director plan.
Under the plans, the Company reserves common shares for issuance in various forms including incentive stock
options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units and
incentive stock awards. The form of stock compensation is specific to each plan. Generally the exercise price of
each stock option will equal or exceed the market price of the Company’s stock on the date of grant, the
maximum term will be ten years, and vesting is determined at the time of grant. Typically, the vesting for options
is 33
1
⁄ 3 percent per year beginning with the first anniversary of the grant date unless the grant contains
accelerated vesting provisions, as described below. For restricted stock, the vesting is typically 25 percent on the
first and second anniversary of the grant date and 50 percent on the third anniversary date or three years from the
time of grant.
75