Discover 2009 Annual Report Download - page 13

Part I. |Item 1. Business
Introduction
Discover Financial Services is a leading credit card issuer in the United States and an electronic payment services
company. In March 2009, we became a bank holding company under the Bank Holding Company Act of 1956 and a
financial holding company under the Gramm-Leach-Bliley Act in connection with our participation in the U.S. Treasury’s
Capital Purchase Program (“CPP”). Therefore, we are now subject to oversight, regulation and examination by the Board
of Governors of the Federal Reserve System (the “Federal Reserve”).
We offer credit cards, personal and student loans, and deposit products. At November 30, 2009, we had $50.9
billion in managed receivables and $12.6 billion in deposits issued through direct-to-consumer channels and affinity
relationships. We operate the Discover Network, our credit card payments network; the PULSE Network (“PULSE”), our
automated teller machine (“ATM”), debit and electronic funds transfer network; and Diners Club International (“Diners
Club”), our global payments network. As we continue to work toward achieving card acceptance across our networks, we
expect Discover customers to be able to use their cards at merchant and ATM locations that accept Diners Club cards in a
growing number of countries around the world and Diners Club customers to be able to use their cards on the Discover
Network in North America and on the PULSE Network domestically and internationally.
Our business segments are Direct Banking, formerly referred to as U.S. Card, and Payment Services, formerly referred
to as Third-Party Payments. We have changed the names of our segments to better reflect the nature of the products and
services included in our segments. The composition of each segment, however, has not changed. Our Direct Banking
segment includes our credit cards issued to individuals and small businesses on the Discover Network, our other consumer
lending products and our deposit products. Our Payment Services segment includes PULSE, Diners Club and our third-
party issuing business, which includes credit, debit and prepaid cards issued on the Discover Network by third parties.
Available Information
We are required to file annual, quarterly and current reports, proxy statements and other information required by the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), with the Securities and Exchange Commission (the
“SEC”). You may read and copy any document we file with the SEC at the SEC’s Public Reference Room located at 100 F
Street, N.E., Washington, DC 20549. Information on the operation of the Public Reference Room may be obtained by
calling the SEC at 1-800-SEC-0330. In addition, the SEC maintains an internet website at http://www.sec.gov, from which
interested persons can electronically access our SEC filings.
We make available free of charge through our internet site http://www.discover.com, our annual reports on Form
10-K; quarterly reports on Form 10-Q; current reports on Form 8-K; proxy statements; Forms 3, 4 and 5 filed by or on
behalf of directors, executive officers and certain large stockholders; and any amendments to those documents filed or
furnished pursuant to the Exchange Act. These filings will become available as soon as reasonably practicable after such
material is electronically filed with or furnished to the SEC.
In addition, the following information is available on the Investor Relations page of our website: (i) Corporate
Governance Policies; (ii) Code of Ethics and Business Conduct; and (iii) the charters of the Audit and Risk, Compensation,
and Nominating and Governance Committees of our board of directors. These documents will also be available in print
without charge to any person who requests them by writing or telephoning our principal executive offices: Discover
Financial Services, Office of the Corporate Secretary, 2500 Lake Cook Road, Riverwoods, Illinois 60015, U.S.A.,
telephone number [phone].
Operating Model
We manage our business activities in two segments: Direct Banking, formerly referred to as U.S. Card, and Payment
Services, formerly referred to as Third-Party Payments. For additional financial information relating to our business and
our operating segments, see Note 25: Segment Disclosures to our consolidated financial statements. We are principally
engaged in providing products and services to customers in the United States, although the royalty revenue we receive
from Diners Club licensees is derived from sources outside of the United States. For quantitative information concerning
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