Capital One 2013 Annual Report Download - page 292

Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(1)
Year Ended December 31,
(Dollars in millions) 2013 2012 2011 2010 2009
Ratio (including interest expense on deposits):
Earnings:
Income from continuing operations before income taxes .... $6,417 $5,035 $4,587 $4,330 $1,336
Fixed charges ...................................... 1,796 2,377 2,251 2,903 2,975
Equity in undistributed loss of unconsolidated subsidiaries . . 154 127 112 49 60
Earnings available for fixed charges, as adjusted .............. $8,367 $7,539 $6,950 $7,282 $4,371
Fixed charges:
Interest expense on deposits and borrowings .............. $1,792 $2,375 $2,246 $2,896 $2,967
Interest factor in rent expense ......................... 42578
Total fixed charges .................................. $1,796 $2,377 $2,251 $2,903 $2,975
Ratio of earnings to fixed charges .......................... 4.66 3.17 3.09 2.51 1.47
Ratio (excluding interest expense on deposits):
Earnings:
Income from continuing operations before income taxes .... $6,417 $5,035 $4,587 $4,330 $1,336
Fixed charges ...................................... 555 974 1,064 1,438 882
Equity in undistributed loss of unconsolidated subsidiaries . . 154 127 112 49 60
Earnings available for fixed charges, as adjusted .......... $7,126 $6,136 $5,763 $5,817 $2,278
Fixed charges:
Interest expense on borrowings(2) ....................... $ 551 $ 972 $1,059 $1,431 $ 874
Interest factor in rent expense ......................... 42578
Total fixed charges .................................. $ 555 $ 974 $1,064 $1,438 $ 882
Ratio of earnings to fixed charges, excluding interest on
deposits ............................................. 12.84 6.30 5.42 4.05 2.58
(1) On February 27, 2009, we acquired CCB. On February 17, 2012, we acquired ING Direct. On May 1, 2012, we closed the 2012 U.S.
card acquisition. Each of these transactions was accounted for under the acquisition method of accounting, and their respective results
of operations are included in our results from each respective transaction date.
(2) Represents total interest expense reported in our consolidated statements of income, excluding interest on deposits of $1.2 billion,
$1.4 billion, $1.2 billion, $1.5 billion and $2.1 billion for the years ended December 31, 2013, 2012, 2011, 2010, and 2009,
respectively.