Capital One 2005 Annual Report Download - page 111

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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 26
Capital One Financial Corporation (Parent Company Only)
C
ondensed 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
nancial statements. fi
December 31
Balance Sheets 2005 2004
Assets:
Cash and cash equivalents $ 2,683 $ 16,858
Investment in subsidiaries 13,175,657 6,714,847
Loans to subsidiaries(1) 3,607,787 3,723,739
Other 162,500 184,568
Total assets $ 16,948,627 $ 10,640,012
Liabilities:
Senior and subordinated notes $ 2,372,086 $ 1,766,185
Borrowings from subsidiaries 374,922 456,385
Other 72,705 29,253
Total liabilities 2,819,713 2,251,823
Stockholders’ equity 14,128,914 8,388,189
Total liabilities and stockholders’ equity $ 16,948,627 $ 10,640,012
(1
) As of December 31, 2005 and 2004, includes $1.3 billion and $1.9 billion, respectively, of cash invested at the Bank instead of the open market.
Year Ended December 31
Statements of Income 2005 2004 2003
Interest from temporary investments $ 201,196
$ 84,982 $ 50,808
Interest expense (152,531) (152,656) (146,940)
Dividends, principally from bank subsidiaries 1,170,000
1,000,013 776,019
Non-interest income 371
11,929 6,410
Non-interest expense (27,065) (12,891) (3,119)
Income before income taxes and equity in undistributed earnings of
subsidiaries 1,191,971
931,377 683,178
Income tax (expense) benefit (5,032) 37,971 47,786
Equity in undistributed earnings of subsidiaries 622,208
574,134 404,878
Net income $ 1,809,147 $ 1,543,482 $ 1,135,842
102