Capital One 2012 Annual Report Download - page 250

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In 2013, $1 million in contributions are expected to be made to the pension plans and $2 million in contributions
are expected to be made to other postretirement benefits plans.
NOTE 18—INCOME TAXES
We account for income taxes in accordance with the accounting guidance prescribed by the FASB, recognizing
the current and deferred tax consequences of all transactions that have been recognized in the consolidated
financial statements using the provisions of enacted tax laws. Deferred tax assets and liabilities are determined
based on differences between the financial reporting and tax basis of assets and liabilities and are measured using
the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation
allowances are recorded to reduce deferred tax assets to an amount that is more likely than not to be realized.
Significant components of the provision for income taxes attributable to continuing operations were as follows:
Year Ended December 31,
(Dollars in millions) 2012 2011 2010
Current income tax provision:
Federal taxes .......................................................... $1,401 $ 721 $ (152)
State taxes ............................................................ 154 89 31
International taxes ..................................................... 44 33 122
Total current provision (benefit) .......................................... $1,599 $ 843 $ 1
Deferred income tax provision:
Federal taxes .......................................................... $ (232) $ 594 $1,121
State taxes ............................................................ (84) (88) 87
International taxes ..................................................... 18 (15) 71
Total deferred provision (benefit) ......................................... $ (298) $ 491 $1,279
Total income tax provision ............................................... $1,301 $1,334 $1,280
The international income tax provision is related to pretax earnings from foreign operations of approximately
$296 million in 2012, $28 million in 2011, and $611 million in 2010.
Income tax benefits of $620 million, $3 million and $2 million in 2012, 2011 and 2010, 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) 2012 2011 2010
Foreign currency translation gains (losses) ..................................... $3$ (1) $ 6
Net unrealized gains (losses) on securities available for sale ....................... 197 (15) 48
Other-than-temporary impairment on securities ................................. 59 (26) 27
Net unrealized gains (losses) related to cash flow hedge instruments ................ 58 18 5
Adoption of new consolidation accounting standards ............................. 00 (1,642)
Employee stock plans ..................................................... 15 (19) 10
Employee retirement plans ................................................. (11) (7) 0
Total income tax provision (benefit) .......................................... $321 $(50) $(1,546)
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