Attached files
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 Six Months Ended June 30, | For the Calendar Years Ended December 31, | For the Fiscal Years Ended November 30, | For the One Month Ended December 31, 2012 | ||||||||||||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||
Earnings: | |||||||||||||||||||||||||||||||
Income before income tax expense | $ | 1,812 | $ | 1,850 | $ | 3,612 | $ | 3,694 | $ | 3,944 | $ | 3,753 | $ | 3,511 | $ | 274 | |||||||||||||||
Losses from unconsolidated investees | 26 | 24 | 50 | 29 | 18 | 12 | 5 | 1 | |||||||||||||||||||||||
Total earnings | $ | 1,838 | $ | 1,874 | $ | 3,662 | $ | 3,723 | $ | 3,962 | $ | 3,765 | $ | 3,516 | $ | 275 | |||||||||||||||
Fixed charges:(1) | |||||||||||||||||||||||||||||||
Total interest expense | $ | 673 | $ | 611 | $ | 1,263 | $ | 1,134 | $ | 1,146 | $ | 1,331 | $ | 1,485 | $ | 103 | |||||||||||||||
Interest factor in rents | 3 | 4 | 6 | 5 | 5 | 6 | 5 | 1 | |||||||||||||||||||||||
Total fixed charges | $ | 676 | $ | 615 | $ | 1,269 | $ | 1,139 | $ | 1,151 | $ | 1,337 | $ | 1,490 | $ | 104 | |||||||||||||||
Combined fixed charges and preferred stock dividends:(1) | |||||||||||||||||||||||||||||||
Total interest expense | $ | 673 | $ | 611 | $ | 1,263 | $ | 1,134 | $ | 1,146 | $ | 1,331 | $ | 1,485 | $ | 103 | |||||||||||||||
Interest factor in rents | 3 | 4 | 6 | 5 | 5 | 6 | 5 | 1 | |||||||||||||||||||||||
Preferred stock dividends | 28 | 29 | 59 | 60 | 60 | — | — | — | |||||||||||||||||||||||
Total combined fixed charges and preferred stock dividends | $ | 704 | $ | 644 | $ | 1,328 | $ | 1,199 | $ | 1,211 | $ | 1,337 | $ | 1,490 | $ | 104 | |||||||||||||||
Earnings before income tax expense and fixed charges | $ | 2,514 | $ | 2,489 | $ | 4,931 | $ | 4,862 | $ | 5,113 | $ | 5,102 | $ | 5,006 | $ | 379 | |||||||||||||||
Earnings before income tax expense and combined fixed charges and preferred stock dividends | $ | 2,542 | $ | 2,518 | $ | 4,990 | $ | 4,922 | $ | 5,173 | $ | 5,102 | $ | 5,006 | $ | 379 | |||||||||||||||
Ratio of earnings to fixed charges | 3.7 | 4.0 | 3.9 | 4.3 | 4.4 | 3.8 | 3.4 | 3.6 | |||||||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 3.6 | 3.9 | 3.8 | 4.1 | 4.3 | 3.8 | 3.4 | 3.6 | |||||||||||||||||||||||
(1) | Fixed charges are the sum of interest expensed, amortized premiums, discounts and capitalized expenses related to indebtedness, 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. |