Discover 2011 Annual Report Download - page 78

66
Average Balance Sheet Analysis
Assets
Interest-earning assets:
Cash and cash equivalents
Restricted cash
Other short-term investments
Investment securities
Loan receivables(2):
Credit card(3)(4)
Personal loans
Federal student loans(5)
Private student loans
PCI student loans
Other
Total loan receivables
Total interest-earning
assets
Allowance for loan losses
Other assets
Total assets
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits:
Time deposits(6)
Money market deposits
Other interest-bearing savings
deposits
Total interest-bearing
deposits(7)
Borrowings:
Short-term borrowings
Securitized borrowings
Other long-term borrowings(6)
Total borrowings
Total interest-bearing
liabilities
Other liabilities and stockholders’
equity
Total liabilities and
stockholders’ equity
Net interest income
Net interest margin(8)
Net yield on interest-bearing assets(9)
Interest rate spread(10)
2011
Average
Balance
$ 3,920,401
1,179,733
153,013
5,660,114
45,204,829
2,228,226
753,666
1,637,260
3,104,504
14,137
52,942,622
63,855,883
(2,710,377)
3,791,077
$64,936,583
$25,477,735
4,656,321
5,996,123
36,130,179
127,840
15,968,420
2,467,806
18,564,066
54,694,245
10,242,338
$64,936,583
Rate
0.24%
0.14%
1.07%
1.05%
12.51%
11.94%
1.58%
7.04%
7.25%
2.95%
11.85%
9.94%
3.34%
1.23%
1.33%
2.73%
0.10%
2.10%
6.58%
2.68%
2.71%
9.18%
7.61%
7.23%
Interest
$ 9,569
1,672
1,639
59,365
5,654,088
266,081
11,904
115,307
225,096
418
6,272,894
6,345,139
849,743
57,314
79,719
986,776
133
335,143
162,500
497,776
1,484,552
$4,860,587
2010
Average
Balance
$ 9,628,759
2,124,343
235,549
1,688,453
45,616,791
1,592,661
1,817,990
826,807
—
54,938
49,909,187
63,586,291
(3,870,545)
3,978,625
$ 63,694,371
$ 27,274,405
4,303,762
2,980,286
34,558,453
410
17,247,078
2,736,017
19,983,505
54,541,958
9,152,413
$ 63,694,371
Rate
0.25%
0.16%
1.03%
1.55%
12.79%
11.41%
1.23%
5.75%
—%
4.02%
12.20%
9.67%
3.82%
1.36%
1.65%
3.33%
0.24%
1.58%
5.85%
2.16%
2.90%
9.14%
7.18%
6.77%
Interest
$ 24,319
3,419
2,435
26,222
5,836,002
181,653
22,439
47,518
—
2,211
6,089,823
6,146,218
1,042,683
58,745
49,076
1,150,504
1
272,535
159,948
432,484
1,582,988
$4,563,230
2009 (Non-GAAP As-Adjusted 1)
Average
Balance
$ 8,854,380
2,438,438
662,979
485,117
48,844,325
1,223,841
626,422
363,985
—
71,544
51,130,117
63,571,031
(3,550,229)
3,139,709
63,160,511
24,748,485
4,091,867
283,238
29,123,590
837,452
22,720,700
1,648,735
25,206,887
54,330,477
8,830,034
63,160,511
Rate
0.56%
0.75%
0.59%
5.20%
12.63%
11.38%
1.39%
4.73%
—%
4.70%
12.40%
10.12%
4.51%
1.59%
1.89%
4.08%
0.30%
1.56%
3.74%
1.66%
2.96%
9.45%
7.60%
7.16%
Interest
$ 50,024
18,195
3,883
25,230
6,169,303
139,247
8,698
17,208
—
3,364
6,337,820
6,435,152
1,116,816
64,902
5,366
1,187,084
2,538
354,215
61,662
418,415
1,605,499
$4,829,653
(1) Information related to restricted cash, investment securities, credit card loan receivables, allowance for loan losses, other assets, securitized borrowings, other long-term
borrowings and other liabilities and stockholders' equity are presented on a non-GAAP as-adjusted basis. No adjustments have been made for cash and cash equivalents, other
short-term investments, other loan receivables, interest-bearing deposits, short-term borrowings and other long-term borrowings. See “ - Reconciliations of GAAP to Non-
GAAP As Adjusted Data.”
(2) Average balances of loan receivables include non-accruing loans, which are included in the yield calculations. If the non-accruing loan balances were excluded, there would
not be a material impact on the amounts reported above.
(3) Interest income on credit card loans includes $225 million, $173 million and $187 million on a non-GAAP as-adjusted basis of amortization of balance transfer fees for the
years ended November 30, 2011, 2010 and 2009 respectively.
(4) Includes the impact of interest rate swap agreements used to change a portion of certain floating-rate credit card loan receivables to fixed-rates.
(5) Includes federal student loans held for sale.
(6) Includes the impact of interest rate swap agreements used to change a portion of fixed-rate funding to floating-rate funding.
(7) Includes the impact of FDIC insurance premiums and special assessments, and all periods reflect management's product allocation methodology as of fourth quarter 2011.
(8) Net interest margin represents net interest income as a percentage of average total loan receivables.
(9) Net yield on interest-bearing assets represents net interest income as a percentage of average total interest-earning assets.
(10) Interest rate spread represents the difference between the rate on total interest-earning assets and the rate on total interest-bearing liabilities.
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