Capital One 2011 Annual Report Download - page 242

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED STATEMENTS—(Continued)
Significant components of the provision for income taxes attributable to continuing operations were as follows:
Year Ended December 31,
(Dollars in millions) 2011 2010 2009
Current income tax provision:
Federal taxes ........................................................... $ 721 $ (152) $278
State taxes ............................................................. 89 31 35
International taxes ....................................................... 33 122 22
Total current provision (benefit) ............................................ $ 843 $ 1 $335
Deferred income tax provision:
Federal taxes ........................................................... $ 594 $1,121 $ 9
State taxes ............................................................. (88) 87 (6)
International taxes ....................................................... (15) 71 11
Total deferred provision (benefit) ........................................... $ 491 $1,279 $ 14
Total income tax provision ................................................ $1,334 $1,280 $349
Income tax benefits of $3 million, $2 million and $793 million in 2011, 2010 and 2009, respectively, were
allocated directly to reduce goodwill from acquisitions.
Income tax provision (benefit) reported in stockholders’ equity was as follows:
Year Ended December 31,
(Dollars in millions) 2011 2010 2009
Foreign currency translation gains (losses) .................................... $ (1) $ 6 $ (9)
Net unrealized securities gains (losses) ...................................... (15) 48 520
Other-than-temporary impairment on securities ................................ (26) 27 0
Net unrealized gains (losses) related to cash flow hedge instruments ............... 18 5 61
Adoption of new consolidation accounting standards ........................... 0(1,642) 0
Employee stock plans .................................................... (19) 10 16
Employee retirement plans ................................................ (7) 07
Total income tax provision (benefit) ......................................... $(50) $(1,546) $595
The reconciliation of income tax attributable to continuing operations, computed at the U.S. federal statutory tax
rate, to income tax expense was:
Year Ended December 31,
(Dollars in millions) 2011 2010 2009
Income tax at U.S. federal statutory tax rate .................................. 35.00% 35.00% 35.00%
State taxes, net of federal benefit ........................................... 1.4 1.3 2.4
Resolution of federal income tax issues and audits ............................. (1.1) (2.5) (4.6)
Low-income housing, New Markets, and other tax credits ....................... (4.3) (3.3) (6.5)
Other foreign tax differences, net .......................................... (0.1) (0.5) (0.2)
Other, net ............................................................. (1.8) (0.4) 0.1
Income taxes .......................................................... 29.1% 29.6% 26.2%
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