Capital One 2013 Annual Report Download - page 215

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Variable interests in the CDEs held by the consolidated Investor Entities are also our variable interests. The
activities of the Investor Entities are financed with a combination of invested equity capital and debt. The
activities of the CDEs are financed solely with invested equity capital. We receive federal and state tax credits
for these investments. We consolidate the VIEs in which we have the power to direct the activities that most
significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive
benefits that could be potentially significant to the VIE. We have also consolidated other investments and CDEs
that we do not consider VIEs. The assets of the VIEs that we consolidated as of December 31, 2013 and 2012
totaled approximately $389 million and $375 million, respectively. The assets of the consolidated VIEs are
reflected on our consolidated balance sheets in cash, loans held for investment, interest receivable and other
assets. The liabilities are reflected in other liabilities.
Other
We also have a variable interest in a trust that has a royalty interest in certain oil and gas properties. The
activities of the trust are financed solely with debt. The total assets of the trust were $204 million and
$255 million as of December 31, 2013 and 2012, respectively. We were not required to consolidate the trust
because we do not have the power to direct the activities of the trust that most significantly impact the trust’s
economic performance. Our retained interest in the trust, which totaled approximately $93 million and
$114 million as of December 31, 2013 and 2012, respectively, is reflected on our consolidated balance sheets
under loans held for investment. Our maximum exposure is limited to our variable interest of $93 million as of
December 31, 2013. The creditors of the trust have no recourse to our general credit. We have not provided
additional financial or other support during the period that we were not previously contractually required to
provide.
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