Capital One 2009 Annual Report Download - page 60

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Secondary Equity Offering
On September 30, 2008, the Company raised $760.8 million through the issuance of 15,527,000 shares of common stock at $49.00 per
share.
Goodwill Impairment
During the fourth quarter of 2008, the Company recorded an impairment to goodwill of $810.9 million. The impairment was recorded
in the Auto Finance business. The deficit was primarily a result of a reduced estimate of the fair value of the Auto Finance business
due to the decision to scale that business back beginning in 2008.
Sale of MasterCard Shares
During the second quarter of 2008, the Company recognized a gain of $44.9 million in other non-interest income from the sale of
154,991 shares of MasterCard class B common stock.
Visa IPO
During the first quarter of 2008, Visa completed an initial public offering (“IPO”) of its stock. With IPO proceeds Visa established an
escrow account for the benefit of member banks to fund certain litigation settlements and claims. As a result, in the first quarter of
2008, the Company reduced its Visa-related indemnification liabilities of $90.9 million recorded in other liabilities with a
corresponding reduction of other non-interest expense. In addition, the Company recognized a gain of $109.0 million in non-interest
income for the redemption of 2.5 million shares related to the Visa IPO. Both items were included in the Other category.
Debt Refinancing
During the first quarter of 2008, the Company repurchased approximately $1.0 billion of certain senior unsecured debt, recognizing a
gain of $52.0 million in non-interest income. The Company initiated the repurchases to take advantage of the current market
environment and replaced the repurchased debt with lower-rate unsecured funding.
2007 Summary of Significant Events
Shut Down of Mortgage Origination Operations of Wholesale Mortgage Banking Unit
See “Note 4 – Discontinued Operations” for further details.
Restructuring Charges Associated with Cost Initiative
During the second quarter of 2007, we announced a broad-based initiative to reduce expenses and improve our competitive cost
position. We recognized $138.2 million in restructuring charges in 2007.
Share Repurchase
During 2007, we executed a $3.0 billion stock repurchase program, resulting in a net share retirement of 43,717,110 shares.
Litigation Settlements and Reserves
During the fourth quarter of 2007, we recognized a pre-tax charge of $79.8 million for liabilities in connection with the antitrust
lawsuit settlement with American Express. Additionally, we recorded a legal reserve of $59.1 million for estimated possible damages
in connection with other pending Visa litigation, reflecting our share of such potential damages as a Visa member.
Sale of Interest in Spain
During 2007, the Company completed the sale of its interest in a relationship agreement to develop and market consumer credit
products in Spain and recorded a net gain related to this sale of $31.3 million consisting of a $41.6 million increase in non-interest
income partially offset by a $10.3 million increase in non-interest expense.