Capital One 2012 Annual Report Download - page 237

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The table below summarizes other comprehensive income activity and the related tax impact for 2012, 2011 and
2010:
Year Ended December 31, 2012
(Dollars in millions)
Before
Tax
Provision
(Benefit)
After
Tax
Other comprehensive income:
Net unrealized gains (losses) on securities available for sale ............... $ 513 $197 $316
Other-than-temporary impairment not recognized in earnings .............. 160 59 101
Net unrealized gains (losses) on cash flow hedges ....................... 120 47 73
Foreign currency translation adjustments .............................. 81 0 81
Other .......................................................... (1) 0 (1)
Other comprehensive income (loss) .................................. $ 873 $303 $570
Year Ended December 31, 2011
(Dollars in millions)
Before
Tax
Provision
(Benefit)
After
Tax
Other comprehensive income:
Net unrealized gains (losses) on securities available for sale ............... $ (54) $ (15) $ (39)
Other-than-temporary impairment not recognized in earnings .............. (65) (26) (39)
Net unrealized gains (losses) on cash flow hedges ....................... 44 18 26
Foreign currency translation adjustments .............................. (13) 0 (13)
Other .......................................................... (21) (7) (14)
Other comprehensive income (loss) .................................. $(109) $ (30) $ (79)
Year Ended December 31, 2010
(Dollars in millions)
Before
Tax Tax
After
Tax
Other comprehensive income:
Net unrealized gains (losses) on securities available for sale ............... $182 $ 48 $134
Other-than-temporary impairment not recognized in earnings .............. 76 27 49
Net unrealized gains (losses) on cash flow hedges ....................... 13 5 8
Foreign currency translation adjustments .............................. (10) 0 (10)
Other comprehensive income (loss) .................................. $261 $ 80 $181
NOTE 13—REGULATORY AND CAPITAL ADEQUACY
Regulation and Capital Adequacy
Bank holding companies and national banks are subject to capital adequacy standards adopted by the Federal Reserve
and the OCC, respectively. The capital adequacy standards set forth minimum risk-based and leverage capital
requirements that are based on quantitative and qualitative measures of their assets and off-balance sheet items. Under
the capital adequacy standards, bank holding companies and banks currently are required to maintain a total risk-based
capital ratio of at least 8%, a Tier 1 risk-based capital ratio of at least 4%, and a Tier 1 leverage capital ratio of at least
4% (3% for banks that meet certain specified criteria, including excellent asset quality, high liquidity, low interest rate
exposure and the highest regulatory rating) in order to be considered adequately capitalized.
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