Discover 2009 Annual Report Download - page 157

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Discover Financial Services
(Parent Company Only)
Condensed Statements of Income
For the Years Ended November 30,
2009 2008 2007
(dollars in thousands)
Interest income .............................................................................................................................................. $ 53,696 $ 72,368 $103,320
Interest expense ............................................................................................................................................. 49,324 43,135 99,159
Net interest income ..................................................................................................................................... 4,372 29,233 4,161
Dividends from subsidiaries ............................................................................................................................. — 95,000 589,265
Management fees from subsidiaries .................................................................................................................. — — 31,374
Antitrust litigation settlement............................................................................................................................. 1,153,936 526,817 —
Other income ................................................................................................................................................ (497) (1,207) 894
Total income .............................................................................................................................................. 1,157,811 649,843 625,694
Other expense
Employee compensation and benefits............................................................................................................. 30,121 30,220 28,117
Marketing and business development............................................................................................................. 134 218 257
Information processing and communications ................................................................................................... 125 123 405
Professional fees ......................................................................................................................................... 8,025 7,216 3,061
Premises and equipment .............................................................................................................................. 3,051 3,531 3,473
Other........................................................................................................................................................ 29,309 2,514 1,250
Total other expense.................................................................................................................................. 70,765 43,822 36,563
Income before income tax (expense) benefit and equity in undistributed net income of subsidiaries and losses from
discontinued operations ............................................................................................................................... 1,087,046 606,021 589,131
Income tax (expense) benefit............................................................................................................................ (420,641) (197,082) 133
Equity in undistributed net income of subsidiaries ................................................................................................ 609,780 531,720 —
Loss from discontinued operations..................................................................................................................... — (12,909) (634)
Net income................................................................................................................................................ $1,276,185 $ 927,750 $588,630
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