Capital One 2008 Annual Report Download - page 117

99
Year Ended December 31, 2007
Other National Lending
sub-segments
National Lending U.S. Card
Other
National
Lending
Auto
Finance
International
Total National
Lending
Net interest income ........................................... $ 6,271,919 $ 2,569,317 $ 1,510,869 $ 1,058,448 $ 8,841,236
Non-interest income.......................................... 4,136,158 734,569 112,261
622,308 4,870,727
Provision for loan and lease losses ................... 3,033,217 1,658,470 1,056,120
602,350 4,691,687
Other non-interest expenses.............................. 3,934,574 1,485,630 618,568
867,062 5,420,204
Income tax provision (benefit).......................... 1,183,458 53,705 (17,736) 71,441 1,237,163
Net income (loss).............................................. $ 2,256,828 $ 106,081 $ (33,822) $ 139,903 $ 2,362,909
Loans held for investment................................. $ 69,723,169 $ 36,785,274 $ 25,128,352 $ 11,656,922 $ 106,508,443
Year Ended December 31, 2006
Other National Lending sub-segments
National Lending U.S. Card
Other
National
Lending
Auto Finance International
Total National
Lending
Net interest income ...........................................
.
$ 5,539,500 $ 2,356,634 $ 1,372,517 $ 984,117 $ 7,896,134
Non-interest income..........................................
.
3,700,765 674,361 81,384 592,977 4,375,126
Provision for loan and lease losses ...................
.
2,016,476 1,191,170 494,835 696,335 3,207,646
Other non-interest expense ...............................
.
4,100,966 1,428,138 599,807 828,331 5,529,104
Income tax provision.........................................
.
1,093,289 147,319 125,740 21,579 1,240,608
Net income........................................................
.
$ 2,029,534 $ 264,368 $ 233,519 $ 30,849 $ 2,293,902
Loans held for investment.................................
.
$ 68,856,534 $ 33,502,646 $ 21,751,827 $ 11,750,819 $ 102,359,180
(1) Income statement adjustments for the year ended December 31, 2008 reclassify the net of finance charges of $5,563.4 million,
past due fees of $933.6 million, other interest income of $(158.1) million and interest expense of $2,065.6 million; and net
charge-offs of $2,946.8 million to non-interest income from net interest income and provision for loan losses, respectively.
Income statement adjustments for the year ended December 31, 2007 reclassify the net of finance charges of $6,334.8 million,
past due fees of $1,004.1 million, other interest income of $(167.3) million and interest expense of $2,681.7 million; and net
charge-offs of $2,201.5 million to non-interest income from net interest income and provision for loan losses, respectively.
Income statement adjustments for the year ended December 31, 2006 reclassify the net of finance charges of $5,485.0 million,
past due fees of $938.6 million, other interest income of $(239.7) million and interest expense of $2,342.7 million; and net
charge-offs of $1,747.5 million to non-interest income from net interest income and provision for loan losses, respectively.
(2) For 2006, Other segment includes North Fork Bank results.
Significant Segment Adjustments That Affect Comparability
During 2008, the Company recognized a goodwill impairment charge of $810.9 million in the Auto Finance sub-segment.
During 2008, the Company repurchased approximately $1.0 billion of certain senior unsecured debt, recognizing a gain of $52.0
million in non-interest income and reported in the Other segment. The Company initiated the repurchases to take advantage of the
current market environment and replaced the repurchased debt with lower-rate unsecured funding.