Discover Financial Services - FORM 10-Q - EX-12.1 - STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMPUT - May 1, 2018

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EX-32.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO - Discover Financial Servicesdfsex3213312018.htm
EX-31.2 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO RULE 13A-14(A) UNDER THE SE - Discover Financial Servicesdfsex3123312018.htm
EX-31.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO RULE 13A-14(A) UNDER THE SE - Discover Financial Servicesdfsex3113312018.htm
EX-10.5 - AMENDMENT NO. 6 TO THE DIRECTOR'S COMPENSATION PLAN OF DISCOVER FINANCIAL SERVIC - Discover Financial Servicesdfsex1053312018.htm
EX-10.4 - AMENDMENT TO 2017 DIRECTORS' ANNUAL EQUITY AWARD CERTIFICATE FOR RESTRICTED STOC - Discover Financial Servicesdfsex1043312018.htm
EX-10.3 - FORM 2018 AWARD CERTIFICATE FOR PERFORMANCE STOCK UNITS UNDER DISCOVER FINANCIAL - Discover Financial Servicesdfsex1033312018.htm
EX-10.2 - FORM 2018 AWARD CERTIFICATE FOR RESTRICTED STOCK UNITS UNDER DISCOVER FINANCIAL - Discover Financial Servicesdfsex1023312018.htm
EX-10.1 - FORM 2018 AWARD CERTIFICATE FOR RESTRICTED STOCK UNITS UNDER DISCOVER FINANCIAL - Discover Financial Servicesdfsex1013312018.htm
10-Q - 10-Q - Discover Financial Servicesdfs331201810q.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 Three Months Ended March 31,
 
For the Calendar Years Ended December 31,
 
2018
 
2017
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
$
856

 
$
868

 
$
3,537

 
$
3,656

 
$
3,612

 
$
3,694

 
$
3,944

Losses from unconsolidated investees
11

 
14

 
55

 
58

 
50

 
29

 
18

Total earnings
$
867

 
$
882

 
$
3,592

 
$
3,714

 
$
3,662

 
$
3,723

 
$
3,962

Fixed charges:(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
$
469

 
$
386

 
$
1,648

 
$
1,398

 
$
1,263

 
$
1,134

 
$
1,146

Interest factor in rents
1

 
1

 
4

 
5

 
6

 
5

 
5

Total fixed charges
$
470

 
$
387

 
$
1,652

 
$
1,403

 
$
1,269

 
$
1,139

 
$
1,151

Combined fixed charges and preferred stock dividends:(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
$
469

 
$
386

 
$
1,648

 
$
1,398

 
$
1,263

 
$
1,134

 
$
1,146

Interest factor in rents
1

 
1

 
4

 
5

 
6

 
5

 
5

Preferred stock dividends
20

 
14

 
87

 
57

 
59

 
60

 
60

Total combined fixed charges and preferred stock dividends
$
490

 
$
401

 
$
1,739

 
$
1,460

 
$
1,328

 
$
1,199

 
$
1,211

Earnings before income tax expense and fixed charges
$
1,337

 
$
1,269

 
$
5,244

 
$
5,117

 
$
4,931

 
$
4,862

 
$
5,113

Earnings before income tax expense and combined fixed charges and preferred stock dividends
$
1,357

 
$
1,283

 
$
5,331

 
$
5,174

 
$
4,990

 
$
4,922

 
$
5,173

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
2.8

 
3.3

 
3.2

 
3.6

 
3.9

 
4.3

 
4.4

Ratio of earnings to combined fixed charges and preferred stock dividends
2.8

 
3.2

 
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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