Discover 2009 Annual Report Download - page 160

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29. Quarterly Results (unaudited) (dollars in thousands, except per share data):
November 30,
2009
August 31,
2009
May 31,
2009
February 28,
2009
November 30,
2008
August 31,
2008
May 31,
2008
February 29,
2008
Interest income.................... $ 638,086 $ 833,217 $ 857,984 $ 815,793 $ 736,006 $681,692 $612,063 $ 662,802
Interest expense................... 314,158 304,401 320,005 312,720 329,672 305,643 313,248 339,441
Net interest income........... 323,928 528,816 537,979 503,073 406,334 376,049 298,815 323,361
Provision for loan losses ....... 399,732 380,999 643,861 937,813 714,176 364,838 210,969 305,632
Other income(1) ................... 1,253,559 1,315,960 1,081,120 1,189,956 1,568,901 875,121 844,892 975,544
Other expense .................... 607,499 523,838 560,628 559,123 594,082 612,547 606,825 602,343
Income before income tax
expense....................... 570,256 939,939 414,610 196,093 666,977 273,785 325,913 390,930
Income tax expense ............. 217,719 362,485 188,810 75,699 223,336 94,885 124,370 152,101
Income from continuing
operations....................... 352,537 577,454 225,800 120,394 443,641 178,900 201,543 238,829
Income (loss) from
discontinued operations,
net of tax ........................ — — — — (11,306) 1,153 32,605 (157,615)
Net income (loss) ............. $ 352,537 $ 577,454 $ 225,800 $ 120,394 $ 432,335 $180,053 $234,148 $ 81,214
Net income available to
common stockholders .... $ 333,903 $ 559,387 $ 209,246 $ 120,394 $ 432,335 $180,053 $234,148 $ 81,214
Basic earnings per common
share
Income from continuing
operations ................... $ 0.62 $ 1.09 $ 0.43 $ 0.25 $ 0.92 $ 0.38 $ 0.42 $ 0.50
Income (loss) from
discontinued operations,
net of tax..................... — — — — (0.02) 0.00 0.07 (0.33)
Net income ..................... $ 0.62 $ 1.09 $ 0.43 $ 0.25 $ 0.90 $ 0.38 $ 0.49 $ 0.17
Diluted earnings per common
share
Income from continuing
operations ................... $ 0.60 $ 1.07 $ 0.43 $ 0.25 $ 0.92 $ 0.37 $ 0.42 $ 0.50
Income (loss) from
discontinued operations,
net of tax..................... — — — — (0.03) 0.00 0.06 (0.33)
Net income ..................... $ 0.60 $ 1.07 $ 0.43 $ 0.25 $ 0.89 $ 0.37 $ 0.48 $ 0.17
(1) The years ended November 30, 2009 and 2008 include $1.9 billion and $0.9 billion, respectively, of income related to the Visa and MasterCard antitrust litigation settlement, which is included in
the Direct Banking segment, formerly referred to as the U.S. Card segment. See Note 23: Litigation.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief
Financial Officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in
Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), which are designed to ensure
that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified by the SEC’s rules and forms. Disclosure controls
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