Capital One 2013 Annual Report Download - page 282

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Year Ended December 31,
(Dollars in millions) 2013 2012 2011
Statements of cash flows
Operating activities:
Net income ......................................................... $ 4,159 $ 3,517 $ 3,147
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Dividends (undistributed earnings) from subsidiaries:
Continuing operations ............................................ 1,305 (3,569) (1,877)
Discontinued operations ........................................... 233 217 106
Accretion .......................................................... (57) (24) (2)
Stock plan compensation expense ....................................... 143 112 92
Decrease (increase) in other assets ....................................... (818) 1 (65)
Increase (decrease) in other liabilities .................................... (388) (34) 18
Net cash (used in) provided by operating activities .......................... 4,577 220 1,419
Investing activities:
(Increase) decrease in investment in subsidiaries ........................... 787 (9,709) (46)
Proceeds from maturities of securities available for sale ...................... 46 24 0
Purchase of securities available for sale ................................... (287) (351) (54)
(Increase) decrease in loans to subsidiaries ................................ (153) (997) (1)
Proceeds from issuance of common stock for acquisition ..................... 02,638 0
Net cash provided by (used in) investing activities .......................... 393 (8,395) (101)
Financing activities:
(Decrease) increase in borrowings from subsidiaries ........................ (3,490) 555 450
Issuance of senior notes ............................................... 849 2,246 2,992
Maturities of senior notes .............................................. (1,040) (632) (855)
Dividends paid—common stock ........................................ (555) (111) (91)
Dividends paid—preferred stock ........................................ (53) (15) 0
Purchases of treasury stock ............................................ (1,033) (43) (42)
Net proceeds from issuances of common stock ............................. 81 3,233 40
Net proceeds from issuances of preferred stock ............................ 0853 0
Proceeds from stock-based payment activities ............................. 114 80 57
Net cash (used in) provided by financing activities .......................... (5,127) 6,166 2,551
(Decrease) increase in cash and cash equivalents ........................... (157) (2,009) 3,869
Cash and cash equivalents at beginning of year ............................. 7,342 9,351 5,482
Cash and cash equivalents at end of year .................................. $ 7,185 $ 7,342 $ 9,351
NOTE 22—RELATED PARTY TRANSACTIONS
In the ordinary course of business, we may have loans issued to our executive officers, directors, and principal
stockholders, also known as Regulation O Insiders. Pursuant to our policy, such loans are issued on the same
terms as those prevailing at the time for comparable loans to unrelated persons and do not involve more than the
normal risk of collectability.
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