Capital One 2009 Annual Report Download - page 36

23
The Company’s Business Could Be Negatively Affected If It Is Unable To Attract, Retain and Motivate Skilled Senior Leaders
The Company’s success depends, in large part, on its ability to retain key senior leaders, and competition for such senior leaders can
be intense in most areas of the Company’s business. The executive compensation provisions of the proposed Wall Street Reform and
Consumer Protection Act, and any further legislation or regulation restricting executive compensation, may limit the types of
compensation arrangements that the Company may enter into with its most senior leaders and could have a negative impact on the
Company’s ability to attract, retain and motivate such leaders in support of the Company’s long-term strategy. If we are unable to
retain talented senior leadership, our business could be negatively affected.
Certain Of Our Businesses Are Subject To Increased Litigation Risks
Our credit card business is subject to increased litigation as a result of the structure of the credit card industry, and we face risks from
the outcomes of such industry litigation. Substantial legal liability against the Company could have a material adverse financial effect
or cause significant reputational harm to us, which could seriously harm our business. For a full description of the litigation risks that
we face, see “Note 21 – Commitments, Contingencies and Guarantees”.
We Face Risks From Unpredictable Catastrophic Events
Despite our substantial business contingency plans, the impact from natural disasters and other catastrophic events, including terrorist
attacks, may have a negative effect on our business and infrastructure, including our information technology systems. The impact of
such events and other catastrophes on the overall economy may also adversely affect our financial condition and results of operations.
We Face Risks From The Use Of Estimates In Our Financial Statements
Pursuant to United States Generally Accepted Accounting Principles (“US GAAP”), we are required to use certain assumptions and
estimates in preparing our financial statements, including in determining the fair value of certain assets and liabilities, among other
items. If the assumptions or estimates underlying the Company’s financial statements are incorrect, the Company may experience
unexpected material losses. For a discussion of how we use estimates in accordance with US GAAP, see “Note 1 – Significant
Accounting Policies.”
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
Our corporate real estate portfolio is used to support our business segments. We own our 587,000 square foot headquarters building in
McLean, Virginia which houses our executive offices and northern Virginia staff. We own approximately 316 acres of land in
Goochland County, Virginia which contains nearly 1.2 million square feet of office space to house various business and staff groups.
Additionally, we own 72 acres of land in Plano, Texas which includes nearly 450,000 square feet of office space to support our Auto
Finance business and other functions.
Our Commercial and Consumer Banking segments utilize approximately 3.3 million square feet in owned properties and 5.2 million
square feet in leased locations across the District of Columbia, Louisiana, New Jersey, Maryland, New York, Texas and Virginia for
office and branch operations.
Our corporate real estate portfolio also includes leased or owned space totaling, in the aggregate, 2.7 million square feet in Richmond,
Toronto, Melville, New York City and various other locations.
Item 3. Legal Proceedings.
The information required by Item 3 is included in Item 8, “Financial Statements and Supplementary Data—Notes to the Consolidated
Financial Statements—“Note 21-Commitments Contingencies and Guarantees”.
Item 4. Submission of Matters to a Vote of Security Holders.
During the fourth quarter of our fiscal year ending December 31, 2009, no matters were submitted for a vote of our stockholders.