Capital One 2015 Annual Report Download - page 139

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
120 Capital One Financial Corporation (COF)
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”) offer 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, 2015, 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 of America (“U.S.”) principally through Capital One (Europe) plc (“COEP”),
an indirect subsidiary of COBNA organized and located in the United Kingdom (“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 major business segments, which
are defined 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 20—Business
Segments.”
Basis of Presentation and Use of Estimates
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting
principles in the U.S. (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management
to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the related
disclosures. These estimates are based on information available as of the date of the consolidated financial statements. While
management makes its best judgment, actual amounts or results could differ from these estimates. Certain prior period amounts
have been reclassified to conform to the current period presentation.
Principles of Consolidation
The consolidated financial statements include the accounts of Capital One Financial Corporation and all other entities in which
we have a controlling financial interest. We determine whether we have a controlling financial interest in an entity by first evaluating
whether the entity is a voting interest entity or a variable interest entity (“VIE”). All significant intercompany account balances
and transactions have been eliminated.
Voting Interest Entities
Voting interest entities are entities that have sufficient equity and provide the equity investors voting rights that give them the
power to make significant decisions relating to the entity’s operations. Since a controlling financial interest in an entity is typically
obtained through ownership of a majority voting interest, we consolidate our majority-owned subsidiaries and other voting interest
entities in which we hold, directly or indirectly, more than 50% of the voting rights or where we exercise control through other
contractual rights.