Capital One 2014 Annual Report Download - page 157

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NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company
Capital One Financial Corporation, a Delaware Corporation established in 1994 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, 2014, 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 loans. Our branch of COBNA in Canada also 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 expanded and
enhanced our existing multifamily capabilities and product offerings. At closing, we acquired a commercial 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., we received $6.4 billion for the
net portfolio assets.
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 completed the acquisition of substantially all of
the assets and assumed substantially all of the liabilities of HSBC’s credit card and private-label Credit Card business
in the United States (other than the HSBC Bank USA, National Association consumer credit card program and
certain other retained assets and liabilities) (the “2012 U.S. card acquisition”). The 2012 U.S. card acquisition
included (i) the acquisition of HSBC’s U.S. Credit Card portfolio; (ii) its on-going private label and co-branded
CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Capital One Financial Corporation (COF)