Capital One 2010 Annual Report Download - page 200

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED STATEMENTS
180
NOTE 24— INTERNATIONAL OPERATIONS
Our international activities are primarily performed through Capital One (Europe) plc, a subsidiary bank of COBNA that provides
consumer lending in Europe, and Capital One Bank—Canada Branch, a foreign branch office of COBNA that provides consumer
lending products in Canada. The total assets, revenue, income before income taxes and net income of the international operations are
summarized below.
December 31,
(Dollars in millions) 2010 2009 2008
Domestic
Total assets .................................................................. $ 188,397 $ 165,840 $ 161,666
Revenue (1) ................................................................... 14,816 12,282 12,961
Income from continuing operations before income taxes ......................... 3,804 1,231 529
Income tax provision .......................................................... 1,130 321 484
Income from continuing operations, net of tax ................................... 2,674 910 45
Loss from discontinued operations, net of tax ................................... (307) (103) (131)
N
et income (loss) ............................................................. $ 2,367 $ 807 $ (86)
International
Total assets .................................................................. $ 9,106 $ 3,806 $ 4,247
Revenue (1) ................................................................... 1,355 701 932
Income before income taxes ................................................... 526 105 53
Income tax provision .......................................................... 150 28 13
N
et income .................................................................. $ 376 $ 77 $ 40
Total Operations
Total assets .................................................................. $ 197,503 $ 169,646 $ 165,913
Revenue (1) ................................................................... 16,171 12,983 13,893
Income from continuing operations before income taxes ......................... 4,330 1,336 582
Income tax provision .......................................................... 1,280 349 497
Income from continuing operations, net of tax ................................... 3,050 987 85
Loss from discontinued operations, net of tax ................................... (307) (103) (131)
N
et income (loss) ............................................................. $ 2,743 $ 884 $ (46)
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(1) Revenue is net interest income plus non-interest income.
We maintain our books and records on a legal entity basis for the preparation of financial statements in conformity with U.S. GAAP.
Because certain international operations are integrated with many of our domestic operations, estimates and assumptions have been
made to assign certain expense items between domestic and foreign operations.
NOTE 25— RELATED PARTY TRANSACTIONS
In the ordinary course of business, we may have loans issued to our executive officers, directors, and principal stockholders, also
known as Regulation O Insiders. Pursuant to our policy, such loans are issued on the same terms as those prevailing at the time for
comparable loans to unrelated persons and do not involve more than the normal risk of collectibility. At December 31, 2009, we
determined that a commercial real estate loan with outstanding principal of $38 million, of which a director at the time was an indirect
member of the borrowing group, was subject to doubt as to the ability of such borrowers to comply with the present loan repayment
terms. On March 31, 2010, CONA sold the loan to a third party in an arms-length transaction for total proceeds of $35 million.