Capital One 2014 Annual Report Download - page 145

Other-than-temporary impairment (“OTTI”): An impairment charge taken on a security whose fair value has
fallen below the carrying value on the balance sheet and its value is not expected to recover through the holding
period of the security.
Patriot Act: The USA PATRIOT Act of 2001 (Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism).
Portfolio Sale: The sale of the Best Buy private label and co-branded credit card portfolio to Citibank, N.A., which
was completed on September 6, 2013.
Proxy Statement: Capital One’s Proxy Statement for the 2014 Annual Stockholders Meeting.
Public Fund deposits: Deposits that are derived from a variety of political subdivisions such as school districts and
municipalities.
Purchase volume: Dollar amount of customer purchases, net of returns.
Rating Agency: An independent agency that assesses the credit quality and likelihood of default of an issue or
issuer and assigns a rating to that issue or issuer.
Repurchase Agreement: An instrument used to raise short-term funds whereby securities are sold with an agreement
for the seller to buy back the securities at a later date.
Restructuring charges: Charges typically from the consolidation and/or relocation of operations.
Return on assets: Calculated based on income from continuing operations, net of tax, for the period divided by
average total assets for the period.
Return on average common equity: Calculated based on the sum of (i) income from continuing operations, net of
tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock
dividends, for the period, divided by average common equity. Our calculation of return on average common equity
may not be comparable to similarly titled measures reported by other companies.
Return on average tangible common equity: Calculated based on the sum of (i) income from continuing
operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; and
(iii) less preferred stock dividends, for the period, divided by average tangible common equity. Our calculation
of return on average tangible common equity may not be comparable to similarly titled measures reported by
other companies.
Risk-weighted assets: Risk-weighted assets consist of on- and off-balance sheet assets that are assigned to one of
several broad risk categories and weighted by factors representing their risk and potential for default. In 2014, the
calculation of risk weighted assets is based on the general risk-based approach, as defined by regulators.
Securitized Debt Obligations: A type of asset-backed security and structured credit product constructed from a
portfolio of fixed-income assets.
SOP 03-3: Statement of Position 03-3 (or ASC 310-30), Accounting for Certain Loans or Debt Securities Acquired
in a Transfer.
Small-ticket commercial real estate: Our small-ticket commercial real estate portfolio is predominantly low, or
no documentation loans, with balances generally less than $2 million. This portfolio was originated on a national
basis through a broker network, and is in a run-off mode.
123 Capital One Financial Corporation (COF)