Discover 2009 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2009 Discover annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 178

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178

combined selected financial data presented for 2006 and 2005 do not reflect any changes that have occurred in our
financing and operations as a result of our spin-off and accordingly, may not be indicative of our future performance or
of the results that would have been achieved had we operated as a separate, stand-alone entity during those periods.
However, the combined financial data presented for 2006 and 2005 have been prepared on the same basis as the
audited financial statements, and in the opinion of our management, include all adjustments, consisting of only ordinary
recurring adjustments, necessary for a fair presentation of the information set forth in this annual report on Form 10-K.
Included in the selected historical financial data are certain amounts and statistics reported on a managed basis. Our
senior management evaluates business performance and allocates resources using financial data that is presented on a
managed basis. Managed loans consist of our on-balance sheet loan portfolio, loans held for sale and loan receivables
that have been securitized and against which beneficial interests have been issued. Owned loans, a subset of managed
loans, refer to our on-balance sheet loan portfolio and loans held for sale and include the undivided seller’s interest we
retain in our securitizations. A managed basis presentation, which is not a presentation in accordance with GAAP,
involves reporting securitized loans with our owned loans in the managed basis statements of financial condition and
reporting the earnings on securitized loans in the same manner as the owned loans instead of as securitization income.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – GAAP to Managed Data
Reconciliations.”
-44-