Capital One 2013 Annual Report Download - page 140

Table F—Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures Under Basel I
December 31,
(Dollars in millions) 2013 2012 2011 2010 2009
Stockholders’ equity to non-GAAP tangible common equity
Total stockholders’ equity .................................. $ 41,744 $ 40,499 $ 29,666 $ 26,541 $ 26,590
Adjustments: Goodwill and other intangible assets(1) ............. (15,784) (16,224) (13,908) (13,983) (14,107)
Noncumulative perpetual preferred stock(2) ................ (853) (853) — — —
Tangible common equity ................................... $ 25,107 $ 23,422 $ 15,758 $ 12,558 $ 12,483
Total assets to tangible assets
Total assets ............................................. $297,048 $312,918 $206,019 $197,503 $169,646
Adjustments: Goodwill and other intangible assets(1) ............. (15,784) (16,224) (13,908) (13,983) (14,107)
Tangible assets .......................................... $281,264 $296,694 $192,111 $183,520 $155,539
Total average assets to average tangible assets
Average total assets ....................................... $297,284 $286,602 $199,718 $200,114 $171,598
Adjustments: Average goodwill and other intangible assets(1) ...... (15,938) (15,604) (13,981) (14,025) (13,867)
Average tangible assets .................................... $281,346 $270,998 $185,737 $186,089 $157,731
Non-GAAP TCE ratio
TCE ratio(3) ............................................. 8.93% 7.89% 8.20% 6.84% 8.03%
Regulatory capital ratios
Total stockholders’ equity .................................. $ 41,744 $ 40,499 $ 29,666 $ 26,541 $ 26,590
Adjustments: Net unrealized (gains) losses on investment securities
available for sale recorded in AOCI(4) .................... 791 (712) (289) (368) (200)
Net losses on cash flow hedges recorded in AOCI(4) ........ 136 2 71 86 92
Disallowed goodwill and other intangible assets ............ (14,326) (14,428) (13,855) (13,953) (14,125)
Disallowed deferred tax assets .......................... —— (534) (1,150) —
Noncumulative perpetual preferred stock(2) ................ (853) (853) — — —
Other ............................................. (5) (12) (2) (2) (2)
Tier 1 common capital ..................................... 27,487 24,496 15,057 11,154 12,355
Adjustments: Noncumulative perpetual preferred stock(2) ......... 853 853———
Tier 1 restricted core capital items(5) ..................... 22 3,635 3,636 3,634
Tier 1 capital ............................................ 28,342 25,351 18,692 14,790 15,989
Adjustments: Long-term debt qualifying as Tier 2 capital ......... 1,914 2,119 2,438 2,827 3,018
Qualifying allowance for loan and lease losses ............. 2,834 2,830 1,979 3,748 1,581
Other Tier 2 components .............................. 10 13 23 29 4
Tier 2 capital ............................................ 4,758 4,962 4,440 6,604 4,603
Total risk-based capital(6) .................................. $ 33,100 $ 30,313 $ 23,132 $ 21,394 $ 20,592
Risk-weighted assets(7) .................................... $224,671 $223,472 $155,657 $127,132 $116,309
Tier 1 common ratio(8) ..................................... 12.23% 10.96% 9.67% 8.77% 10.62%
Tier 1 risk-based capital ratio(9) .............................. 12.61 11.34 12.01 11.63 13.75
Total risk-based capital ratio(10) .............................. 14.73 13.56 14.86 16.83 17.70
(1) Includes impact from related deferred taxes.
(2) Noncumulative perpetual preferred stock qualifies for Tier 1 capital; however, it is excluded from Tier 1 common capital.
(3) TCE ratio is non-GAAP measure calculated based on tangible common equity divided by tangible assets.
(4) Amounts presented are net of tax.
(5) Consists primarily of trust preferred securities.
(6) Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.
(7) Calculated based on prescribed regulatory guidelines.
(8) Tier 1 common ratio is a regulatory capital measure calculated based on Tier 1 common capital divided by risk-weighted assets.
(9) Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
(10) Total risk-based capital ratio is a regulatory capital measure calculated based on total risk-based capital divided by risk-weighted assets.
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