Capital One 2012 Annual Report Download - page 288

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 24—SUBSEQUENT EVENTS
Sale of Best Buy Card Portfolio
On February 19, 2013, we announced an agreement to sell the portfolio of Best Buy Stores, L.P. (“Best Buy”)
private-label and co-branded credit card accounts that we acquired in the 2012 U.S. card acquisition to Citibank,
N.A. (“Citi”). At the time of the announcement, the portfolio had loan balances of approximately $7 billion. In
addition, we and Best Buy have agreed to end our contractual credit card relationship early. The sale of the loans
to Citi, which is subject to customary closing conditions, and early termination of the Best Buy partnership are
expected to be finalized in the third quarter of 2013. Upon closing, we expect that the proceeds from the sale will
approximate the book value of the accounts, resulting in no significant gain or loss on the transaction.
We transferred the net assets subject to the sale agreement to the held for sale category upon meeting the
pertinent criteria for this classification during the first quarter of 2013. We will continue to recognize interest and
fee income on the transferred loans, but will not recognize any impacts from charge-offs and recoveries unless
these net charge-offs exceed the associated transferred allowance for loan losses. The amortization and accretion
on the related intangibles ceased upon the transfer to the held for sale category.
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