Capital One 2013 Annual Report Download - page 157

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company
Capital One Financial Corporation, a Delaware Corporation established in 1995 and headquartered in McLean,
Virginia, is a diversified financial services holding company with banking and non-banking subsidiaries. Capital
One Financial Corporation and its subsidiaries (the “Company”) offers a broad array of financial products and
services to consumers, small businesses and commercial clients through branches, the internet and other
distribution channels. As of December 31, 2013, our principal subsidiaries included:
• Capital One Bank (USA), National Association (“COBNA”), which offers credit and debit card products,
other lending products and deposit products; and
• Capital One, National Association (“CONA”), which offers a broad spectrum of banking products and
financial services to consumers, small businesses and commercial clients.
The Company and its subsidiaries are hereafter collectively referred to as “we”, “us” or “our.” COBNA and
CONA are collectively referred to as the “Banks.”
We also offer products outside of the United States principally through Capital One (Europe) plc (“COEP”), an
indirect subsidiary of COBNA organized and located in the U.K, and through a branch of COBNA in Canada.
COEP has authority, among other things, to provide credit card and installment loans. Our branch of COBNA in
Canada has the authority to provide credit card loans.
Our principal operations are currently organized for management reporting purposes into three primary business
segments, which are defined primarily based on the products and services provided or the type of customer
served: Credit Card, Consumer Banking and Commercial Banking. We provide details on our business segments,
the integration of recent acquisitions into our business segments and the allocation methodologies and accounting
policies used to derive our business segment results in “Note 19—Business Segments.”
Recent Acquisitions and Sales
On November 1, 2013, we acquired Beech Street Capital, a privately-held, national originator and servicer of
Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation
(“Freddie Mac”) and Federal Housing Authority (“FHA”) multifamily commercial real estate loans. The
acquisition expands and enhances our existing multifamily capabilities and product offerings. At closing, we
acquired a mortgage servicing portfolio of approximately $10 billion.
On September 6, 2013, we completed the sale of the Best Buy private label and co-branded credit card portfolio
to Citibank, N.A (“Portfolio Sale”). Pursuant to the agreement with Citibank, N.A. (“Citibank”), we received
$6.4 billion for the net portfolio assets.
On February 17, 2012, we completed the acquisition (the “ING Direct acquisition”) of substantially all of the
ING Direct business in the United States (“ING Direct”) from ING Groep N.V., ING Bank N.V., ING Direct
N.V. and ING Direct Bancorp (collectively the “ING Direct Sellers”). The ING Direct acquisition resulted in the
addition of loans of $40.4 billion, other assets of $53.9 billion and deposits of $84.4 billion as of the acquisition
date.
On May 1, 2012, pursuant to the agreement with HSBC Finance Corporation, HSBC USA Inc. and HSBC
Technology and Services (USA) Inc. (collectively, “HSBC”), we closed the acquisition of substantially all of the
assets and assumed liabilities of HSBC’s credit card and private-label Credit Card business in the United States
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