Discover 2015 Annual Report Download - page 102

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DISCOVER FINANCIAL SERVICES
Consolidated Statements of Financial Condition
December 31,
2015 2014
(dollars in millions,
except share amounts)
Assets
Cash and cash equivalents ............................................................................................................................. $ 9,572 $ 7,284
Restricted cash .............................................................................................................................................. 99 106
Investment securities (includes $2,963 and $3,847 at fair value at December 31, 2015 and 2014, respectively).... 3,084 3,949
Loan receivables:
Loan receivables (includes $0 and $122 at fair value at December 31, 2015 and 2014, respectively)............... 72,385 69,969
Allowance for loan losses ........................................................................................................................... (1,869) (1,746)
Net loan receivables ............................................................................................................................... 70,516 68,223
Premises and equipment, net .......................................................................................................................... 693 670
Goodwill ...................................................................................................................................................... 255 257
Intangible assets, net ..................................................................................................................................... 168 176
Other assets ................................................................................................................................................. 2,549 2,461
Total assets ....................................................................................................................................... $ 86,936 $ 83,126
Liabilities and Stockholders’ Equity
Deposits:
Interest-bearing deposit accounts ................................................................................................................ $ 47,157 $ 45,792
Non-interest bearing deposit accounts ........................................................................................................ 437 297
Total deposits ........................................................................................................................................ 47,594 46,089
Short-term borrowings ................................................................................................................................... — 113
Long-term borrowings .................................................................................................................................... 24,724 22,544
Accrued expenses and other liabilities ............................................................................................................. 3,343 3,246
Total liabilities ................................................................................................................................... 75,661 71,992
Commitments, contingencies and guarantees (Notes 16, 19, and 20)
Stockholders’ Equity:
Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 560,679,352 and 558,194,324
shares issued at December 31, 2015 and 2014, respectively .......................................................................... 5 5
Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 575,000 shares issued and
outstanding and aggregate liquidation preference of $575 at December 31, 2015 and 2014, respectively ......... 560 560
Additional paid-in capital .............................................................................................................................. 3,885 3,790
Retained earnings ......................................................................................................................................... 13,250 11,467
Accumulated other comprehensive loss ........................................................................................................... (160) (138)
Treasury stock, at cost; 139,000,423 and 109,006,038 shares at December 31, 2015 and 2014, respectively..... (6,265) (4,550)
Total stockholders’ equity ................................................................................................................... 11,275 11,134
Total liabilities and stockholders’ equity ............................................................................................... $ 86,936 $ 83,126
The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services’ consolidated variable interest entities ("VIEs")
which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle
obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only, and exclude intercompany balances
that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services.
December 31,
2015 2014
(dollars in millions)
Assets
Restricted cash .............................................................................................................................................. $ 99 $ 102
Loan receivables ........................................................................................................................................... $ 30,551 $ 32,304
Allowance for loan losses allocated to securitized loan receivables .................................................................... $ (811) $ (833)
Other assets ................................................................................................................................................. $ 34 $ 37
Liabilities
Long-term borrowings .................................................................................................................................... $ 16,764 $ 17,395
Accrued expenses and other liabilities ............................................................................................................. $ 12 $ 11
See Notes to Consolidated Financial Statements.