Discover Financial Services - FORM 10-Q - EX-12.1 - STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMPUT - October 29, 2015

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EX-32.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT T - Discover Financial Servicesdfsex32193015.htm
EX-31.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO RULE 13A-14(A) UNDER THE SE - Discover Financial Servicesdfsex31193015.htm
EX-10.1 - AMENDMENT NO. 4 TO DISCOVER FINANCIAL SERVICES EMPLOYEE STOCK PURCHASE PLAN. - Discover Financial Servicesdfsex10193015.htm
EX-31.2 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO RULE 13A-14(A) UNDER THE SE - Discover Financial Servicesdfsex31293015.htm
10-Q - 10-Q - Discover Financial Servicesdfs930201510q.htm


Exhibit 12.1
DISCOVER FINANCIAL SERVICES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(dollars in millions)
 
For the Nine Months Ended September 30,
 
For the Calendar Years Ended December 31,
 
For the Fiscal Years Ended November 30,
 
2015
 
2014
 
2014
 
2013
 
2012
 
2011
 
2010
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
$
2,824

 
$
3,046

 
$
3,694

 
$
3,944

 
$
3,753

 
$
3,511

 
$
1,269

Losses from unconsolidated investees
37

 
19

 
29

 
18

 
12

 
5

 
4

Total earnings
$
2,861

 
$
3,065

 
$
3,723

 
$
3,962

 
$
3,765

 
$
3,516

 
$
1,273

Fixed charges:(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
$
934

 
$
832

 
$
1,134

 
$
1,146

 
$
1,331

 
$
1,485

 
$
1,583

Interest factor in rents
5

 
4

 
5

 
5

 
6

 
5

 
5

Total fixed charges
$
939

 
$
836

 
$
1,139

 
$
1,151

 
$
1,337

 
$
1,490

 
$
1,588

Combined fixed charges and preferred stock dividends:(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
$
934

 
$
832

 
$
1,134

 
$
1,146

 
$
1,331

 
$
1,485

 
$
1,583

Interest factor in rents
5

 
4

 
5

 
5

 
6

 
5

 
5

Preferred stock dividends
44

 
44

 
60

 
60

 
—

 
—

 
39

Total combined fixed charges and preferred stock dividends
$
983

 
$
880

 
$
1,199

 
$
1,211

 
$
1,337

 
$
1,490

 
$
1,627

Earnings before income tax expense and fixed charges
$
3,800

 
$
3,901

 
$
4,862

 
$
5,113

 
$
5,102

 
$
5,006

 
$
2,861

Earnings before income tax expense and combined fixed charges and preferred stock dividends
$
3,844

 
$
3,945

 
$
4,922

 
$
5,173

 
$
5,102

 
$
5,006

 
$
2,900

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
4.0

 
4.7

 
4.3

 
4.4

 
3.8

 
3.4

 
1.8

Ratio of earnings to combined fixed charges and preferred stock dividends
3.9

 
4.5

 
4.1

 
4.3

 
3.8

 
3.4

 
1.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Fixed charges are the sum of interest expense, amortized premiums, discounts and capitalized expenses related to indebtedness and an estimate of interest within rental expense. Combined fixed charges and preferred stock requirements are the sum of interest expense, amortized premiums, discounts and capitalized expenses related to indebtedness, an estimate of interest within rental expense and preference security dividend requirements.



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