Capital One 2010 Annual Report Download - page 189

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED STATEMENTS
169
Year Ended December 31, 2010
(Dollars in millions)
Credit
Card
Consumer
Banking
Commercial
Banking Other(1)
Total
Managed
Securitization
Adjustments(1)
Total
Reported
N
et interest income (expense) .............. $ 7,894 $ 3,727 $ 1,292 $ (452) $ 12,461 $ (4) $ 12,457
N
on-interest income (expense) ............. 2,720 870 181 (55) 3,716 (2) 3,714
Total revenue ........................... 10,614 4,597 1,473 (507) 16,177 (6) 16,171
Provision for loan and lease losses .......... 3,188 241 429 55 3,913 (6) 3,907
N
on-interest expense:
Core deposit intangible amortization ...... 0 144 55 0 199 0 199
Other non-interest expense .............. 3,951 2,806 741 237 7,735 0 7,735
Total non-interest expense ................. 3,951 2,950 796 237 7,934 0 7,934
Income (loss) from continuing operations
before income taxes .................... 3,475 1,406 248 (799) 4,330 0 4,330
Income tax provision (benefit) ............. 1,201 501 88 (510) 1,280 0 1,280
Income (loss) from continuing operations, net
of tax ................................ $ 2,274 $ 905 $ 160 $ (289) $ 3,050 $ 0 $ 3,050
Year Ended December 31, 2009
(Dollars in millions)
Credit
Card
Consumer
Banking
Commercial
Banking Other(1)
Total
Managed
Securitization
Adjustments(1)
Total
Reported
N
et interest income ...................... $ 7,542 $ 3,231 $ 1,144 $ 172 $ 12,089 $ (4,392) $ 7,697
N
on-interest income ...................... 3,747 755 172 73 4,747 539 5,286
Total revenue ........................... 11,289 3,986 1,316 245 16,836 (3,853) 12,983
Provision for loan and lease losses .......... 6,051 876 983 173 8,083 (3,853) 4,230
N
on-interest expense:
Restructuring expense
(
3
)
................. 0 0 0 119 119 0 119
Core deposit intangible amortization ...... 0 169 43 0 212 0 212
Other non-interest expense .............. 3,738 2,565 618 165 7,086 0 7,086
Total non-interest expense ................. 3,738 2,734 661 284 7,417 0 7,417
Income (loss) from continuing operations before
income taxes .......................... 1,500 376 (328) (212) 1,336 0 1,336
Income tax provision (benefit) ............. 522 132 (115) (190) 349 0 349
Income (loss) from continuing operations, net o
f
tax .................................. $ 978 $ 244 $ (213) $ (22) $ 987 $ 0 $ 987
Year Ended December 31, 2008
(Dollars in millions)
Credit
Card
Consumer
Banking
Commercial
Banking Other
Total
Managed
Securitization
Adjustments(2)
Total
Reported
N
et interest income ....................... $ 7,464 $ 2,988 $ 962 $ 8 $ 11,422 $ (4,273) $ 7,149
N
on-interest income ....................... 4,678 729 144 (134) 5,417 1,327 6,744
Total revenue ............................ 12,142 3,717 1,106 (126) 16,839 (2,946) 13,893
Provision for loan and lease losses ........... 6,108 1,534 234 171 8,047 (2,946) 5,101
N
on-interest expense:
Restructuring expense(3) ................. 0 0 0 134 134 0 134
Goodwill impairment .................... 0 811 0 0 811 0 811
Other non-interest expense ............... 4,393 2,453 481 (62) 7,265 0 7,265
Total non-interest expense .................. 4,393 3,264 481 72 8,210 0 8,210
Income (loss) from continuing operations before
income taxes ........................... 1,641 (1,081) 391 (369) 582 0 582
Income tax provision (benefit) .............. 574 (101) 137 (113) 497 0 497
Income (loss) from continuing operations, net o
f
tax ................................... $ 1,067 $ (980) $ 254 $ (256) $ 85 $ 0 $ 85
________________________
(1) The significant increase in the loss from continuing operations reported in the “Other” category in 2010 compared to 2009 was primarily
attributable to an increase in the provision for repurchase losses, an increase in the residual expense from our funds transfer pricing allocation
process and a reduced benefit from the sale of securities.
(2) Reflects the impact of adjustments to reconcile our total business segment results, which are presented on a managed basis, to our reported
GAAP results. These adjustments primarily consist of: (i) the reclassification of finance charges, past due fees, other interest income and interest
expense amounts included in non-interest income for management reporting purposes to net interest income for GAAP reporting purposes and
(ii) the reclassification of net charge-offs included in non-interest income for management reporting purposes to the provision for loan and lease
losses for GAAP reporting purposes.
(3) In 2009, we completed the restructuring of our operations, which was initiated in 2007 to reduce expenses and improve our competitive
cost position.