Capital One 2014 Annual Report Download - page 209

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NOTE 6—VARIABLE INTEREST ENTITIES AND SECURITIZATIONS
In the normal course of business, we enter into various types of transactions with entities that are considered to be
VIEs. Our primary involvement with VIEs has been related to our securitization transactions in which we transferred
assets from our balance sheet to securitization trusts. We have primarily securitized credit card loans and home
loans, which have provided a source of funding for us and enabled us to transfer a certain portion of the economic
risk of the loans or debt securities to third parties.
The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required
to consolidate the VIE. The majority of the VIEs in which we are involved have been consolidated on our financial
statements.
Summary of Consolidated and Unconsolidated VIEs
The table below presents a summary of VIEs, aggregated based on VIEs with similar characteristics, in which we
had continuing involvement or held a variable interest as of December 31, 2014 and 2013. We separately present
information for consolidated and unconsolidated VIEs.
For consolidated VIEs, we present the carrying amount of assets and liabilities reflected on our consolidated balance
sheets. The assets of consolidated VIEs primarily consist of cash and loans, which we report on our consolidated
balance sheets under restricted cash and restricted loans, respectively, for securitization investors. The assets of a
particular VIE are the primary source of funds to settle its obligations. The creditors of the VIEs typically do not
have recourse to the general credit of the Company. The liabilities primarily consist of debt securities issued by the
VIEs, which we report under securitized debt obligations. For unconsolidated VIEs, we present the carrying amount
of assets and liabilities reflected on our consolidated balance sheets and our maximum exposure to loss. Our
maximum exposure to loss is estimated based on the unlikely event that all of the assets in the VIEs become worthless
and we are required to meet our maximum remaining funding obligations.
Table 6.1: Carrying Amount of Consolidated and Unconsolidated VIEs(1)
December 31, 2014
Consolidated Unconsolidated
Carrying Carrying Carrying Carrying Maximum
Amount Amount of Amount Amount of Exposure to
(Dollars in millions) Assets of Liabilities Assets of Liabilities Loss
Securitization-related VIEs:
Credit card loan securitizations(2) . . . . . . . . . . . . . . . . $36,779 $ 12,350 $ 0 $ 0 $ 0
Home loan securitizations(3) . . . . . . . . . . . . . . . . . . . . 0 0 221 31 876
Total securitization-related VIEs . . . . . . . . . . . . . . . . . . 36,779 12,350 221 31 876
Other VIEs:
Affordable housing entities . . . . . . . . . . . . . . . . . . . . . 0 0 3,500 488 3,500
Entities that provide capital to low-income
and rural communities . . . . . . . . . . . . . . . . . . . . . . . 374 99 1 0 1
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 0 74 0 74
Total other VIEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378 99 3,575 488 3,575
Total VIEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $37,157 $ 12,449 $ 3,796 $ 519 $ 4,451
CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Capital One Financial Corporation (COF)