Capital One Financial Corporation (Parent Company Only)

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Capital One Financial Corporation (Parent Company Only)

NOTE 22—CAPITAL ONE FINANCIAL CORPORATION (PARENT COMPANY ONLY) ⁽¹⁾

Financial Information

The following Parent Company Only financial statements are provided in accordance with Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”).

Table 22.1: Parent Company Statements of Income

	Year Ended December 31,
(Dollars in millions)	2015			2014		2013
Interest income	$	120		$	114	$	94
Interest expense	185			204		250
Dividends from subsidiaries	450			3,449		5,950
Non-interest income	10			53		33
Non-interest expense	178			85		196
Income before income taxes and equity in undistributed earnings of subsidiaries	217			3,327		5,631
Income tax (benefit) provision	(67		)	11		(66		)
Equity in undistributed earnings of subsidiaries	3,766			1,112		(1,576		)
Net income	4,050			4,428		4,121
Other comprehensive (loss) income, net of tax	(186		)	442		(1,611		)
Comprehensive income	$	3,864		$	4,870	$	2,510

Table 22.2: Parent Company Balance Sheets

	December 31,
(Dollars in millions)	2015		2014
Assets:
Cash and cash equivalents	$	7,245	$	8,262
Investment in subsidiaries	48,676		44,993
Loans to subsidiaries	521		1,494
Securities available for sale	905		961
Other assets	739		618
Total assets	$	58,086	$	56,328
Liabilities:
Senior and subordinated notes	$	8,657	$	8,907
Other borrowings	1,591		1,573
Accrued expenses and other liabilities	554		795
Total liabilities	10,802		11,275
Total stockholders’ equity	47,284		45,053
Total liabilities and stockholders’ equity	$	58,086	$	56,328

Table 22.3: Parent Company Statements of Cash Flows

	Year Ended December 31,
(Dollars in millions)	2015			2014			2013
Operating activities:
Net income	$	4,050		$	4,428		$	4,121
Adjustments to reconcile net income to cash provided by operating activities:
Dividends (undistributed earnings) from subsidiaries	(3,766		)	(1,112		)	1,576
Other operating activities	(300		)	(83		)	(1,120		)
Net cash (used in) provided by operating activities	(16		)	3,233			4,577
Investing activities:
Net payments (to) from subsidiaries	(172		)	94			787
Proceeds from maturities of securities available for sale	65			50			46
Purchase of securities available for sale	0			(143		)	(287		)
Decrease (increase) in loans to subsidiaries	973			(7		)	(153		)
Net cash provided by (used in) investing activities	866			(6		)	393
Financing activities:
Borrowings:
Increase (decrease) in borrowings from subsidiaries	18			28			(3,490		)
Issuance of senior notes	2,487			1,498			849
Maturities of senior notes	(2,625		)	(2,100		)	(1,040		)
Common stock:
Net proceeds from issuances	111			100			81
Dividends paid	(816		)	(679		)	(555		)
Preferred stock:
Net proceeds from issuances	1,472			969			0
Dividends paid	(158		)	(67		)	(53		)
Purchases of treasury stock	(2,441		)	(2,045		)	(1,033		)
Proceeds from stock-based payment activities	85			146			114
Net cash used in financing activities	(1,867		)	(2,150		)	(5,127		)
(Decrease) increase in cash and cash equivalents	(1,017		)	1,077			(157		)
Cash and cash equivalents at beginning of year	8,262			7,185			7,342
Cash and cash equivalents at end of year	$	7,245		$	8,262		$	7,185

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⁽¹⁾  As of January 1, 2015, we changed our accounting principle to move from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related right to reclaim cash collateral or obligation to return cash collateral. See “Note 1—Summary of Significant Accounting Policies” for additional information. Prior period results have been recast to conform to this presentation.