Capital One 2011 Annual Report Download - page 291

Exhibit 99.1
CAPITAL ONE FINANCIAL CORPORATION (COF)
Reconciliation of Non-GAAP Measures and Regulatory Capital Measures
We refer to our consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles
(“GAAP”) as our “reported” or GAAP financial statements. Effective January 1, 2010, we prospectively adopted two new
consolidation accounting standards that resulted in the consolidation of the substantial majority of our securitization trusts that had
been previously treated as off-balance sheet. Prior to our adoption of these new consolidation accounting standards, management
evaluated the company’s performance on a non-GAAP “managed” basis, which assumed that securitized loans were not sold and the
earnings from securitized loans were classified in our results of operations in the same manner as the earnings from loans that we
owned. We believed that our managed basis information is useful to investors because it portrays the results of both on- and off-
balance sheet loans that we manage, which enables investors to understand and evaluate the credit risks associated with the portfolio
of loans reported on our consolidated balance sheet and our retained interests in securitized loans. Our non-GAAP managed basis
measures may not be comparable to similarly titled measures used by other companies.
As a result of the January 1, 2010 adoption of the new consolidation accounting standards, the accounting for the loans in our
securitization trusts in our reported GAAP financial statements is similar to how we accounted for these loans on a managed basis
prior to January 1, 2010. Consequently, we believe our managed basis presentations for periods prior to January 1, 2010 are generally
comparable to our reported basis presentations for periods beginning after January 1, 2010. In periods prior to January 1, 2010, certain
of our non-GAAP managed basis measures differed from our comparable reported measures because we assumed, for our managed
basis presentation, that securitized loans that were accounted for as sales in our GAAP financial statements remained on our balance
sheet.
The following tables, which are described below, provide a reconciliation of reported GAAP financial measures to the non-GAAP
managed basis financial measures included in our filing. We also provide the details of the calculation of certain non-GAAP capital
measures that management uses in assessing its capital adequacy.
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Table 1: Reconciliation of Financial & Statistical
Summary—Reported GAAP Measures, Securitization
Adjustments and Non-GAAP Managed Basis Measures
— Reflects selected financial measures from our
consolidated GAAP financial statements or metrics
calculated based on our consolidated GAAP financial
statements to those measures calculated based on our
Non-GAAAP managed basis results.
1
Table 2: Explanatory Notes (Table 1)
— Includes explanatory footnotes that provide additional
information for certain financial and statistical measures
presented in Table 1.
2
Table 3: Reconciliation of Non-GAAP Average Balances,
Net Interest Income and Net Interest Margin
— Presents a reconciliation of our average balances and net
interest margin on a reported basis to our average
balances and net interest margin on a non-GAAP
managed basis.
3
Table 4: Reconciliation of Non-GAAP Capital Measures
and Calculation of Regulatory Capital Measures
— Presents a reconciliation of our regulatory capital
measures to certain non-GAAP capital measures.
4