Capital One 2010 Annual Report Download - page 18

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TABLE OF CONTENTS
Page
PART I 1
Item 1. Business ............................................................................................... 1
Overview ............................................................................................ 1
Business Segments ................................................................................... 1
Supervision and Regulation ............................................................................ 2
Competition .......................................................................................... 9
Employees ........................................................................................... 10
Additional Information ................................................................................ 10
Forward-Looking Statements .......................................................................... 10
Item 1A. Risk Factors ............................................................................................ 12
Item 1B. Unresolved Staff Comments ............................................................................. 17
Item 2. Properties .............................................................................................. 17
Item 3. Legal Proceedings ...................................................................................... 18
Item 4. Removed and Reserved ................................................................................. 18
PART II 18
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities ............................................................................................ 18
Item 6. Selected Financial Data ................................................................................. 20
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations .................... 23
Introduction .......................................................................................... 23
Impact from Adoption of New Consolidation Accounting Standards ...................................... 24
Executive Summary and Business Outlook .............................................................. 25
Critical Accounting Policies and Estimates .............................................................. 29
Recent Accounting Pronouncements ................................................................... 34
Off-Balance Sheet Arrangements and Variable Interest Entities ........................................... 34
Consolidated Results of Operations Financial Performance ............................................... 34
Business Segment Financial Performance ............................................................... 39
Consolidated Balance Sheet Analysis and Credit Performance ............................................ 48
Risk Management .................................................................................... 67
Liquidity and Capital Management ..................................................................... 71
Market Risk Management ............................................................................. 78
Supplemental Statistical Tables ........................................................................ 80
Item 7A. Quantitative and Qualitative Disclosures About Market Risk ............................................... 88
Item 8. Financial Statements and Supplementary Data ............................................................ 88
Consolidated Statements of Income .................................................................... 89
Consolidated Balance Sheets .......................................................................... 90
Consolidated Statements of Changes in Stockholders’ Equity ............................................. 91
Consolidated Statements of Cash Flows ................................................................ 94
Notes to Consolidated Financial Statements ............................................................. 95
Note 1 — Summary of Significant Accounting Policies ................................................. 95
Note 2 — Acquisitions and Restructuring Activities .................................................... 109
Note 3 — Discontinued Operations ................................................................... 110
Note 4 — Investment Securities ...................................................................... 110
Note 5 — Loans ..................................................................................... 117
Note 6 — Allowance for Loan and Lease Losses ....................................................... 125
Note 7 — Variable Interest Entities and Securitizations ................................................. 127
Note 8 — Goodwill and Other Intangible Assets ....................................................... 134
Note 9 — Premises, Equipment & Lease Commitments ................................................. 137
Note 10 — Deposits and Borrowings ................................................................... 138
Note 11 — Derivative Instruments and Hedging Activities ............................................... 141
Note 12 — Stockholders’ Equity ....................................................................... 146
Note 13 — Regulatory and Capital Adequacy ........................................................... 146
Note 14 — Earnings Per Common Share ............................................................... 148
Note 15 — Other Non-Interest Expense ................................................................ 148
Note 16 — Stock-Based Compensation Plan ............................................................ 148
Note 17 — Employee Benefit Plans .................................................................... 151
Note 18 — Income Taxes ............................................................................. 156