EX-12 2 dex12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement Re: Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

DISCOVER FINANCIAL SERVICES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     For the Years Ended November 30,
      2009    2008    2007    2006    2005
     (dollars in millions)

Earnings:

               

Income from continuing operations before income tax expense

    $ 2,120,898    $ 1,657,605    $ 1,525,714    $ 1,667,753    $ 956,036

Losses from unconsolidated investees

      3,396      3,946      4,279      2,968      2,089
                                  

Total earnings

      2,124,294      1,661,551      1,529,993      1,670,721      958,125

Fixed Charges(1):

               

Total interest expense

      1,251,285      1,288,004      1,223,271      836,279      718,212

Interest factor in rents

      4,383      4,777      3,489      2,947      2,826
                                  

Total fixed charges

      1,255,668      1,292,781      1,226,760      839,226      721,038

Preferred stock requirements

      88      —        —        —        —  
                                  

Earnings from continuing operations before income tax expense and fixed charges

    $ 3,379,962    $ 2,954,332    $ 2,756,753    $ 2,509,947    $ 1,679,163

Ratio of earnings to fixed charges

      2.7      2.3      2.2      3.0      2.3

Earnings from continuing operations before income tax expense, fixed charges and preferred stock requirements

    $ 3,380,050    $ 2,954,332    $ 2,756,753    $ 2,509,947    $ 1,679,163

Ratio of earnings to fixed charges and preferred stock requirements

      2.3      2.3      2.2      3.0      2.3
                                    

 

(1) Fixed charges defined as interest expensed, amortized premiums discounts and capitalized expenses related to indebtedness and interest within rental expense.