Capital One 2006 Annual Report Download - page 106

88
under the Credit Facility. All borrowings under the Credit Facility are based upon varying terms of London Interbank
Offering Rate (LIBOR).
Collateralized Revolving Credit Facilities
In March 2005, COAF entered into a revolving warehouse credit facility collateralized by a security interest in certain auto
loan assets (the Capital One Auto Loan Facility II). The Capital One Auto Loan Facility II has the capacity to issue up to
$1.8 billion in secured notes. The Capital One Auto Loan Facility II has multiple participants each with separate renewal
dates. The facility does not have a final maturity date. Instead, the 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, 2006 and 2005, $1.2 billion
and $599.0 million, respectively, were outstanding under the facility.
In April 2002, COAF entered into a revolving warehouse credit facility collateralized by a security interest in certain auto
loan assets (the Capital One Auto Facility I). As of December 31, 2006, the Capital One Auto Facility I had the capacity to
issue up to $3.3 billion in secured notes. The Capital One Auto Facility I has multiple participants each with separate renewal
dates. 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, 2006 and 2005,
$461.0 million and $381.0 million, respectively, were outstanding under the facility.
Interest-bearing deposits, Senior and subordinated notes and Other borrowings as of December 31, 2006, mature as follows:
Interest-
Bearing
Deposits
Senior and
Subordinated
Notes Other
Borrowings Total
2007 $ 31,405,210 $ 461,546 $ 13,303,627 $ 45,170,383
2008 10,628,671 1,817,740 4,727,961 17,174,372
2009 7,189,683 1,599,046 3,543,696 12,332,425
2010 3,426,194 749,046 1,032,863 5,208,103
2011 13,493,907 3,199,046 2,905 16,695,858
Thereafter 7,979,157 1,899,046 1,645,955 11,524,158
Total $ 74,122,822 $ 9,725,470 $ 24,257,007 $ 108,105,299
Note 10
Stock Plans
The Company has two active 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 and restricted stock units.
The following table provides the number of reserved common shares and the number of common shares available for future
issuance for the Companys active stock-based compensation plans as of December 31, 2006, 2005 and 2004. The ability to
issue grants from other plans was terminated in 2004.
Available For Issuance
Plan Name Shares
Reserved 2006 2005 2004
2004 Stock Incentive Plan 20,000,000 12,287,294 4,313,190 7,068,515
1999 Non-Employee Directors Stock Incentive Plan 825,000 134,600 166,500 193,430
Generally the exercise price of stock options, or value of restricted stock awards, will equal the fair market value of the
Companys stock on the date of grant. The maximum contractual term for options is ten years, and option vesting is
determined at the time of grant. The vesting for most options is 33 1/3 percent per year beginning with the first anniversary of
the grant date. For restricted stock, the vesting is usually 25 percent on the first and second anniversaries of the grant date and
50 percent on the third anniversary date or three years from the date of grant.
The Company also issues cash equity units which are recorded as liabilities as expense is recognized. Cash equity units are
not issued out of the Companys stock-based compensation plans because they are settled with a cash payment for each unit
vested equal to the fair market value of the Companys stock on the vesting date. Cash equity units vest 25 percent on the
first and second anniversaries of the grant date and 50 percent on the third anniversary date or three years from the date of
grant.