AmazonScience/document-haystack

1Securitized debt obligations increased by $1.1 billion to $18.0 billion as of December 31, 2023 from December 31, 2022 2primarily driven by net issuances in our credit card and auto securitization programs.3Other debt remained substantially flat at $31.8 billion as of December 31, 2023 compared to December 31, 2022.  4We provide additional information on our funding sources in “Liquidity Risk Profile” and “Item 8. Financial Statements and 5Supplementary Data—Note 8—Deposits and Borrowings.”6Deferred Tax Assets and Liabilities7Deferred tax assets and liabilities represent decreases or increases in taxes expected to be paid in the future because of future 8reversals of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net 9operating loss and tax credit carryforwards. Deferred tax assets are recognized subject to management’s judgment that these 10future deductions are more likely than not to be realized. We evaluate the recoverability of these future tax deductions by 11assessing the adequacy of expected taxable income from all sources, including taxable income in carryback years, reversal of 12taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely 13heavily on estimates. We use our historical experience and our short and long-range business forecasts to make these estimates.14Deferred tax assets, net of deferred tax liabilities and valuation allowances, were approximately $7.9 billion as of December 31, 152023, an increase of $280 million from December 31, 2022. The increase in our net deferred tax assets was primarily driven by 16an increase in our allowance for credit losses, partially offset by an increase in fair value of our available for sale securities and 17derivatives in 2023.18Our recorded valuation allowance balances were $496 million and $446 million as of December 31, 2023 and 2022, 19respectively. If changes in circumstances lead us to change our judgment about our ability to realize deferred tax assets in future 20years, we will adjust our valuation allowances in the period that our change in judgment occurs and record a corresponding 21increase or charge to income.22We provide additional information on income taxes in “Consolidated Results of Operations” and “Item 8. Financial Statements 23and Supplementary Data—Note 15—Income Taxes.”24OFF-BALANCE SHEET ARRANGEMENTS 25In the ordinary course of business, we engage in certain activities that are not reflected on our consolidated balance sheets, 26generally referred to as off-balance sheet arrangements. These activities typically involve transactions with unconsolidated 27variable interest entities (“VIEs”) as well as other arrangements, such as letters of credit, loan commitments and guarantees, to 28meet the financing needs of our customers and support their ongoing operations. We provide additional information regarding 29these types of activities in “Item 8. Financial Statements and Supplementary Data—Note 5—Variable Interest Entities and 30Securitizations” and “Item 8. Financial Statements and Supplementary Data—Note 18—Commitments, Contingencies, 31Guarantees and Others.”3261 Capital One Financial Corporation (COF)