Discover 2009 Annual Report Download - page 72

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Financial measures using managed data are non-GAAP financial measures. Beginning with “– Earnings Summary,”
the discussion of our results of operations and financial condition is on a GAAP basis. The following table provides a
reconciliation of the loan receivables and related statistics that are impacted by asset securitization, and which are shown
on a managed basis in this annual report, to the most directly comparable GAAP-basis financial measure:
Reconciliation of GAAP to Managed Data
For the Years Ended November 30,
2009 2008 2007
(dollars in thousands)
Loan Receivables
Total Loans
GAAP Basis........................................................................................................................................ $23,625,084 $25,216,611 $20,831,117
Securitization Adjustment...................................................................................................................... 27,235,288 25,878,667 27,349,319
Managed Basis ................................................................................................................................... $50,860,372 $51,095,278 $48,180,436
Average Total Loans
GAAP Basis........................................................................................................................................ $26,552,574 $21,348,493 $19,947,784
Securitization Adjustment...................................................................................................................... 24,588,040 27,662,655 26,965,690
Managed Basis ................................................................................................................................... $51,140,614 $49,011,148 $46,913,474
Interest Yield
GAAP Basis........................................................................................................................................ 11.31% 10.89% 10.73%
Securitization Adjustment...................................................................................................................... 13.49% 13.93% 14.07%
Managed Basis ................................................................................................................................... 12.36% 12.61% 12.65%
Net Principal Charge-off Rate
GAAP Basis........................................................................................................................................ 7.45% 4.59% 3.40%
Securitization Adjustment...................................................................................................................... 8.12% 5.32% 4.15%
Managed Basis ................................................................................................................................... 7.77% 5.01% 3.83%
Delinquency Rate (over 30 days)
GAAP Basis........................................................................................................................................ 4.92% 4.35% 3.26%
Securitization Adjustment...................................................................................................................... 5.65% 4.77% 3.82%
Managed Basis ................................................................................................................................... 5.31% 4.56% 3.58%
Delinquency Rate (over 90 days)
GAAP Basis........................................................................................................................................ 2.58% 2.06% 1.51%
Securitization Adjustment...................................................................................................................... 2.95% 2.27% 1.79%
Managed Basis ................................................................................................................................... 2.78% 2.17% 1.67%
Credit Card Loans
GAAP Basis........................................................................................................................................ $20,230,302 $23,814,307 $20,579,923
Securitization Adjustment...................................................................................................................... 27,235,288 25,878,667 27,349,319
Managed Basis ................................................................................................................................... $47,465,590 $49,692,974 $47,929,242
Average Credit Card Loans
GAAP Basis........................................................................................................................................ $24,266,782 $20,566,864 $19,845,880
Securitization Adjustment...................................................................................................................... 24,588,040 27,662,655 26,965,690
Managed Basis ................................................................................................................................... $48,854,822 $48,229,519 $46,811,570
Interest Yield
GAAP Basis........................................................................................................................................ 11.69% 10.92% 10.75%
Securitization Adjustment...................................................................................................................... 13.49% 13.93% 14.07%
Managed Basis ................................................................................................................................... 12.59% 12.65% 12.66%
Net Principal Charge-off Rate
GAAP Basis........................................................................................................................................ 7.87% 4.73% 3.41%
Securitization Adjustment...................................................................................................................... 8.12% 5.32% 4.15%
Managed Basis ................................................................................................................................... 8.00% 5.07% 3.84%
Delinquency Rate (over 30 days)
GAAP Basis........................................................................................................................................ 5.52% 4.55% 3.28%
Securitization Adjustment...................................................................................................................... 5.65% 4.77% 3.82%
Managed Basis ................................................................................................................................... 5.60% 4.66% 3.59%
Delinquency Rate (over 90 days)
GAAP Basis........................................................................................................................................ 2.92% 2.16% 1.53%
Securitization Adjustment...................................................................................................................... 2.95% 2.27% 1.79%
Managed Basis ................................................................................................................................... 2.94% 2.22% 1.68%
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