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 Year Ended December 31, 2013 | For the Fiscal Years Ended November 30, | ||||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
| Earnings: | ||||||||||||||||||||
| Income from continuing operations before income tax expense | 2,037 | 2,061 | 3,944 | 3,753 | 3,511 | 1,269 | 2,121 | |||||||||||||
| Losses from unconsolidated investees | 12 | 8 | 18 | 12 | 5 | 4 | 3 | |||||||||||||
| Total earnings | 2,049 | 2,069 | 3,962 | 3,765 | 3,516 | 1,273 | 2,124 | |||||||||||||
Fixed charges:(1) | ||||||||||||||||||||
| Total interest expense | 544 | 595 | 1,146 | 1,331 | 1,485 | 1,583 | 1,251 | |||||||||||||
| Interest factor in rents | 3 | 2 | 5 | 6 | 5 | 5 | 5 | |||||||||||||
| Total fixed charges | 547 | 597 | 1,151 | 1,337 | 1,490 | 1,588 | 1,256 | |||||||||||||
Combined fixed charges and preferred stock requirements:(1) | ||||||||||||||||||||
| Total interest expense | 544 | 595 | 1,146 | 1,331 | 1,485 | 1,583 | 1,251 | |||||||||||||
| Interest factor in rents | 3 | 2 | 5 | 6 | 5 | 5 | 5 | |||||||||||||
| Preferred stock requirements | 30 | 30 | 60 | — | — | 39 | 73 | |||||||||||||
| Total combined fixed charges and preferred stock requirements | 577 | 627 | 1,211 | 1,337 | 1,490 | 1,627 | 1,329 | |||||||||||||
| Earnings from continuing operations before income tax expense and fixed charges | 2,596 | 2,666 | 5,113 | 5,102 | 5,006 | 2,861 | 3,380 | |||||||||||||
| Earnings from continuing operations before income tax expense and combined fixed charges and preference dividends | 2,626 | 2,696 | 5,173 | 5,102 | 5,006 | 2,900 | 3,453 | |||||||||||||
| Ratio of earnings to fixed charges | 4.7 | 4.5 | 4.4 | 3.8 | 3.4 | 1.8 | 2.7 | |||||||||||||
| Ratio of earnings to combined fixed charges and preference dividends | 4.6 | 4.3 | 4.3 | 3.8 | 3.4 | 1.8 | 2.6 | |||||||||||||
| (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. |