Discover Financial Services - FORM 10-Q - EX-12.1 - STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMPUT - October 31, 2018

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EX-32.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO - Discover Financial Servicesdfsex3219302018.htm
EX-31.2 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO RULE 13A-14(A) UNDER THE SE - Discover Financial Servicesdfsex3129302018.htm
EX-31.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO RULE 13A-14(A) UNDER THE SE - Discover Financial Servicesdfsex3119302018.htm
10-Q - 10-Q - Discover Financial Servicesdfs930201810q.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,
 
2018
 
2017
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
$
2,700

 
$
2,638

 
$
3,537

 
$
3,656

 
$
3,612

 
$
3,694

 
$
3,944

Losses from unconsolidated investees
34

 
43

 
55

 
58

 
50

 
29

 
18

Total earnings
$
2,734

 
$
2,681

 
$
3,592

 
$
3,714

 
$
3,662

 
$
3,723

 
$
3,962

Fixed charges(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
$
1,534

 
$
1,212

 
$
1,648

 
$
1,398

 
$
1,263

 
$
1,134

 
$
1,146

Interest factor in rents
3

 
3

 
4

 
5

 
6

 
5

 
5

Total fixed charges
$
1,537

 
$
1,215

 
$
1,652

 
$
1,403

 
$
1,269

 
$
1,139

 
$
1,151

Combined fixed charges and preferred stock dividends(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
$
1,534

 
$
1,212

 
$
1,648

 
$
1,398

 
$
1,263

 
$
1,134

 
$
1,146

Interest factor in rents
3

 
3

 
4

 
5

 
6

 
5

 
5

Preferred stock dividends
41

 
43

 
87

 
57

 
59

 
60

 
60

Total combined fixed charges and preferred stock dividends
$
1,578

 
$
1,258

 
$
1,739

 
$
1,460

 
$
1,328

 
$
1,199

 
$
1,211

Earnings before income tax expense and fixed charges
$
4,271

 
$
3,896

 
$
5,244

 
$
5,117

 
$
4,931

 
$
4,862

 
$
5,113

Earnings before income tax expense and combined fixed charges and preferred stock dividends
$
4,312

 
$
3,939

 
$
5,331

 
$
5,174

 
$
4,990

 
$
4,922

 
$
5,173

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
2.8

 
3.2

 
3.2

 
3.6

 
3.9

 
4.3

 
4.4

Ratio of earnings to combined fixed charges and preferred stock dividends
2.7

 
3.1

 
3.1

 
3.5

 
3.8

 
4.1

 
4.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.


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