Capital One 2007 Annual Report Download - page 98

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76
the NYSE of the Companys common stock during the five trading days ending the day before the completion of the merger, which
was $80.32.
In 2006, the Company recorded certain refinements to its initial estimates of the fair value of the assets and liabilities related to the
Hibernia acquisition. These adjustments resulted in a $33.6 million decrease to goodwill.
Note 4
Segments
The segments reflect the manner in which financial information is currently evaluated. The Company strategically manages and
reports the results of its business through two operating segment levels: Local Banking and National Lending. Local Banking includes
consumer, small business and commercial deposits and lending conducted within its branch network. The Company diversified into
banking through the acquisition of Hibernia Corporation in late 2005 and the acquisition of North Fork in fourth quarter 2006. The
National Lending segment consists of the following three sub-segments:
U.S. Card sub-segment which consists of domestic consumer credit and certain debit card activities.
Auto Finance sub-segment which includes automobile and other motor vehicle financing activities.
Global Financial Services sub-segment consisting of international lending activities, small business lending, installment
loans, home loans, healthcare financing and other diversified activities.
In the third quarter of 2007, the Company shut down mortgage origination operations of its wholesale mortgage banking unit,
GreenPoint, which was acquired in December 2006 through the North Fork acquisition. The results of the mortgage origination
operations are being reported as discontinued operations for 2007 and 2006, and are not included in segment results of the Company.
The results of GreenPoints held for investment portfolio were reported as discontinued operations for the year ended December 31,
2007. The results of GreenPoints mortgage servicing business were reported as part of the Companys continuing operations and
included in the Local Banking segment for 2007. GreenPoints commercial and consumer mortgage held for investment portfolios
were moved into the Local Banking Segment and Other category, respectively, in the fourth quarter of 2007.
The Local Banking and National Lending Banking segments are considered reportable segments based on quantitative thresholds
applied to the managed loan portfolio for reportable segments provided by SFAS No. 131, Disclosures about Segments of an
Enterprise and Related Information, and are disclosed separately. The Other category includes the Companys liquidity portfolio,
emerging businesses not included in the reportable segments, and various non-lending activities. The Other category also includes the
net impact of transfer pricing, certain unallocated expenses, gains/losses related to the securitization of assets, and restructuring
charges related to the Companys 2007 cost initiative.
The Company maintains its books and records on a legal entity basis for the preparation of financial statements in conformity with
GAAP. The following tables present information prepared from the Companys internal management information system, which is
maintained on a line of business level through allocations from the consolidated financial results.