Capital One 2011 Annual Report Download - page 214

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED STATEMENTS—(Continued)
Entities that Provide Capital to Low-Income and Rural Communities
We hold variable interests in entities (“Investor Entities”) that invest in community development entities
(“CDEs”) that provide debt financing to businesses and non-profit entities in low-income and rural communities.
Variable interests in the CDEs held by the consolidated Investor Entities are also our variable interests. The
activities of the Investor Entities are financed with a combination of invested equity capital and debt. The
activities of the CDEs are financed solely with invested equity capital. We receive federal and state tax credits
for these investments. We consolidate the VIEs in which we have the power to direct the activities that most
significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive
benefits that could be potentially significant to the VIE. We have also consolidated other investments and CDEs
that we do not consider VIEs. The assets of the VIEs that we consolidated at December 31, 2011 and 2010
totaled approximately $258 million and $230 million, respectively. The assets of the consolidated VIEs are
reflected on our consolidated balance sheets in cash, loans held for investment, interest receivable and other
assets. The liabilities are reflected in other liabilities.
The total assets of the VIEs that we held an interest in but were not required to consolidate at December 31, 2011
and 2010 totaled approximately $6 million. Our interests in these unconsolidated VIEs are reflected on our
consolidated balance sheets in loans held for investment and other assets. Our maximum exposure to these
entities is limited to our variable interest of $6 million as of December 31, 2011. The creditors of the VIEs have
no recourse to our general credit. We have not provided additional financial or other support during the period
that we were not previously contractually required to provide.
Other
We have a variable interest in Capital One Financial Advisors, LLC which we consolidate as we have the power
to direct the activities that most significantly impact the VIE’s economic performance and the obligation to
absorb losses or the right to receive benefits that could be potentially significant to the VIE. The assets of the
VIE that we consolidated totaled approximately $1 million as of December 31, 2011 and less than $1 million as
of December 31, 2010. The assets are consolidated in our balance sheet in cash and other assets.
We also have a variable interest in a trust that has a royalty interest in certain oil and gas properties. The
activities of the trust are financed solely with debt. The total assets of the trust were $309 million and $395
million as of December 31, 2011 and 2010, respectively. We were not required to consolidate the trust because
we do not have the power to direct the activities of the trust that most significantly impact the trust’s economic
performance. Our retained interest in the trust, which totaled approximately $139 million and $174 million as of
December 31, 2011 and 2010, respectively, is reflected on our consolidated balance sheets under loans held for
investment. Our maximum exposure is limited to our variable interest of $139 million as of December 31, 2011.
The creditors of the trust have no recourse to our general credit. We have not provided additional financial or
other support during the period that we were not previously contractually required to provide.
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