Capital One 2005 Annual Report Download - page 89

During 2004, the Company approved plans to liquidate certain facilities in Seattle, Washington and Tampa, Florida as part of
its facility consolidation efforts. The premises met the held-for-sale criteria of SFAS No. 144, Accounting for the Impairment
or Disposal of Long-Lived Assets (“SFAS 144”) and as such, an impairment charge of $54.0 million was recognized in non-
interest expense during the year ended December 31, 2004, to write down the properties to fair value less the estimated cost
to sell. Depreciation expense was no longer being recognized for these assets. As of December 31, 2004, the carrying value
of these assets was $56.9 million.
During 2005, the Company closed on the sale of these facilities. The final sales price of the Tampa, Florida facility was
greater than the recorded impaired value, and as such, the Company reversed $18.8 million of its previously recorded
impairment in Occupancy expense during the year ended December 31, 2005.
As discussed in Note 2—Acquisitions, the Company completed its acquisition of Hibernia in November 2005. The
acquisition added: $120.4 million in land, $186.9 million in buildings and improvements, $68.2 million of furniture and
equipment, $13.2 million of computer software and $40.2 million of construction in process at December 31, 2005, which are
reflected in the table above.
Note 9
B
orrowings
B
orrowings as of December 31, 2005 and 2004 were as follows:
2005 2004
Outstanding
Weighted
Average
Rate Outstanding
Weighted
Average
Rate
Interest-bearing deposits $ 43,092,096 3.55% $ 25,636,802 3.95%
Senior notes
Bank—fixed rate $ 4,371,893 5.69% $ 5,108,606 6.04%
Mandatory convertible securities — — 742,916 6.25
Corporation 2,372,086 6.13 1,023,268 7.37
Total $ 6,743,979
$ 6,874,790
Other borrowings
Secured borrowings $ 11,884,947 4.27% $ 8,181,860 2.99%
Junior capital income securities
and subordinated debentures 166,930 4.96 99,464 2.77
FHLB advances 1,465,344 4.45 — —
Federal funds purchased and
resale agreements 745,719 3.62 1,154,073 1.78
Other short-term borrowings 1,271,221 2.09 201,622 2.10
Total $ 15,534,161
$ 9,637,019
Interest-Bearing Deposits
As of December 31, 2005, the Company had $43.1 billion in interest-bearing deposits of which $11.0 billion represents large
denomination certificates of $100 thousand or more.
Senior Notes
Bank Notes
Senior and Subordinated Global Bank Note Program
The Senior and Subordinated Global Bank Note Program gives the Bank the ability to issue securities to both U.S. and non-
U.S. lenders and to raise funds in U.S. and foreign currencies. The Senior and Subordinated Global Bank Note Program had
$4.2 billion and $4.9 billion outstanding at December 31, 2005 and 2004, respectively. Prior to the establishment of the
Senior and Subordinated Global Bank Note Program, the Bank issued senior unsecured debt through its $8.0 billion Senior
Domestic Bank Note Program, of which $211.6 million and $231.6 million was outstanding at December 31, 2005 and 2004,
respectively. The Bank did not renew the Senior Domestic Bank Note Program for future issuances following the
establishment of the Senior and Subordinated Global Bank Note Program.
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