Capital One 2014 Annual Report Download - page 248

The following table presents the income tax provision (benefit) reported in stockholders’ equity:
Table 17.2: Income Tax Provision (Benefit) Reported in Stockholders’ Equity
Year Ended December 31,
(Dollars in millions) 2014 2013 2012
Income tax provision (benefit) recorded in AOCI(1) . . . . . . . . . . . . . . . . . . . . . . . . . $ 374 $ (978) $ 303
Income tax provision (benefit) recorded in additional paid in capital . . . . . . . . . . . 16 (10) 15
Foreign currency translation gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653
Total income tax provision (benefit) recorded in stockholders’ equity . . . . . . . . . . . $ 396 $ (983) $ 321
(1) Includes the impact from hedging instruments designated as net investment hedges that were entered into during 2014.
The following table presents the reconciliation of the U.S. federal statutory income tax rate to the Company’s
effective income tax rate applicable to income from continuing operations for the years ended December 31, 2014,
2013 and 2012:
Table 17.3: Effective Income Tax Rate
Year Ended December 31,
(Dollars in millions) 2014 2013 2012
Income tax at U.S. federal statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.0% 35.0% 35.0%
State taxes, net of federal benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8 2.1 1.9
Low-income housing, new markets tax credits, and other credits . . . . . . . . . . . . . (3.0) (2.5) (2.5)
Other foreign tax differences, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.6) (0.6) (0.7)
Nontaxable bargain purchase gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0 (4.0)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.5) (0.2) (1.2)
Effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.7% 33.8% 28.5%
226
CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Capital One Financial Corporation (COF)