Adaptación entre idiomas

As of November 30, 2011 and 2010, the Company had goodwill of $255.4 million recorded in connection with its acquisition of PULSE in January 2005, which was allocated to the Payment Services segment. Subsequent to the acquisition date, no adjustments have been made to the Company's goodwill balance. The Company conducted its annual goodwill

impairment testing on June 1, 2011 and 2010, at which times management concluded that there was no impairment to goodwill.

Intangible Assets

The Company's amortizable intangible assets consist primarily of acquired customer relationships recognized in the December 2010 acquisition of SLC, which is allocated to the Direct Banking segment, and acquired customer relationships and trade name intangibles recognized in the acquisition of PULSE in January 2005, which is allocated to the Payment Services segment. Non-amortizable intangible assets consist of trade name intangibles recognized in the acquisition of SLC, along with international transaction processing rights and trade name intangibles recognized in the acquisition of Diners Club in June 2008. Acquired customer relationships for SLC consist of those relationships in existence between SLC and the numerous students that carry student loan balances, while for PULSE they consist of those relationships in existence between PULSE and the numerous financial institutions that participate in its network, as valued at the date of the respective acquisitions. For more information on the Company's acquisition of SLC, see Note 4: Business Combinations.

The following table summarizes the Company's intangible assets (dollars in thousands):

Amortizable intangible assets:

Amortization expense related to the Company's intangible assets was $8.0 million, $6.7 million and $7.7 million for the years ended November 30, 2011, 2010 and 2009, respectively.

The following table presents expected intangible asset amortization expense for the next five years based on intangible assets at November 30, 2011 (dollars in thousands):

Year

10. Deposits

The Company offers its deposit products, including certificates of deposit, money market accounts, online savings accounts and Individual Retirement Account (IRA) certificates of deposit to customers through two channels: (i) through direct marketing, internet origination and affinity relationships (“direct-to-consumer deposits”); and (ii) indirectly through contractual arrangements with securities brokerage firms (“brokered deposits”). As of November 30, 2011 and November 30, 2010, the Company had approximately $26.2 billion and $20.6 billion, respectively, of direct-to-consumer deposits and approximately

$13.3 billion and $13.7 billion, respectively, of brokered deposits.

A summary of interest-bearing deposit accounts is as follows (dollars in thousands):

Certificates of deposit in amounts less than $100,000⁽¹⁾

Certificates of deposit from amounts of $100,000⁽¹⁾to less than $250,000⁽¹⁾ Certificates of deposit in amounts of $250,000⁽¹⁾or greater

Savings deposits, including money market deposit accounts Total interest-bearing deposits

Average annual interest rate

November 30, 2011

$ 20,114,121 5,290,405 1,189,779 12,869,582

$ 39,463,887 2.57%

2010

$ 19,797,420 4,626,792 1,146,843 8,738,784

$ 34,309,839 3.12%

(1) $100,000 represents the basic insurance amount previously covered by the FDIC. Effective July 21, 2010, the basic insurance per depositor was permanently increased to $250,000.

At November 30, 2011, certificates of deposit maturing over the next five years and thereafter were as follows (dollars in thousands):

Year 2012 2013 2014 2015 2016 Thereafter

Amount

$ 12,419,875

$ 6,813,369

$ 3,008,278

$ 2,021,264

$ 1,526,304

$ 805,215

11. Borrowings

Long-term borrowings consist of borrowings and capital leases having original maturities of one year or more. The following table provides a summary of the Company’s long-term borrowings and weighted average interest rates on balances outstanding at period end (dollars in thousands):

Securitized Debt

Total Discover Card Master Trust I and Discover Card Execution Note Trust

Floating rate asset-backed securities Total SLC Private Student Loan Trusts Total Long-Term Borrowings—owed to securitization investors

Discover Financial Services (Parent Company)

Fixed rate senior notes due 2017 Principal value (including

discount of $451) Fair value adjustment⁽³⁾ Book value

Fixed rate senior notes due 2019 Discover Bank

Subordinated bank notes due 2019 (including discount of $1,437) Subordinated bank notes due 2020 (including discount of $2,901) Floating rate secured borrowings Floating rate secured borrowings

Floating rate secured borrowings⁽⁴⁾ Capital lease obligations

5 to 130 basis points 3-month LIBOR(1) +

34 basis points Commercial Paper rate + 70 basis points

3-month LIBOR(1) + 7 to 45 basis points Prime rate +100 basis rate + 50 basis points

Fixed

(1) London Interbank Offered Rate (“LIBOR”).

(2) Repayment of this debt is dependent upon the timing of principal and interest payments on the underlying student loans. The dates shown represent final maturity dates.

(3) The Company uses interest rate swaps to hedge this long-term borrowing against changes in fair value attributable to changes in LIBOR. See Note 23:

Derivatives and Hedging Activities.

(4) Under a program established by the U.S. Department of Education, this loan facility was entered into to fund certain federal student loans, which were held for sale at November 30, 2011 and November 30, 2010. Principal and interest payments on the underlying student loans will reduce the balance of the secured borrowing over time, with final maturity in August 2013. However, upon sale of the loans, this loan facility will be repaid or assumed by a buyer.

Maturities. Long-term borrowings had the following maturities at November 30, 2011 (dollars in thousands):

Year Due in 2012 Due in 2013 Due in 2014 Due in 2015 Due in 2016 Thereafter Total

Discover Financial Services (Consolidated)

$ 3,326,416

5,616,755 2,789,761 600,288 399,997 5,553,961

$ 18,287,178

Discover Financial Services (Parent Company Only)

$ —

—

—

—

— 809,404

$ 809,404

As of November 30, 2011, the Company had an unsecured credit agreement that was effective through May 2012;

however, the commitment was terminated by the Company effective December 16, 2011 due to the availability of other sources of contingent liquidity. The agreement previously provided for a revolving credit commitment of up to $2.4 billion (of which the Company could borrow up to 30% and Discover Bank could borrow up to 100% of the total commitment). As of

November 30, 2011, the Company had no outstanding balances due under the facility. The credit agreement provided for a commitment fee on the unused portion of the facility, which could range from 0.07% to 0.175% depending on the index debt ratings. Loans outstanding under the credit facility would have borne interest at a margin above the Federal Funds rate, LIBOR, the EURIBOR or the Euro Reference rate. The terms of the credit agreement included various affirmative and negative

covenants, including financial covenants related to the maintenance of certain capitalization and tangible net worth levels, and certain double leverage, delinquency and Tier 1 capital to managed loans ratios. The credit agreement also included customary events of default with corresponding grace periods, including, without limitation, payment defaults, cross-defaults to other agreements evidencing indebtedness for borrowed money and bankruptcy-related defaults.

The Company also has access to committed undrawn capacity through private securitizations to support the funding of its credit card loan receivables. As of November 30, 2011, the total commitment of secured credit facilities through private providers was $7 billion, of which $250 million had been used and was included in long-term borrowings at November 30, 2011. Access to the unused portions of the secured credit facilities is dependent upon the agreement with each of the providers which have various expirations in fiscal years 2013, 2014 and 2015. Borrowings outstanding under each facility bear interest at a margin above LIBOR or the asset-backed commercial paper costs of each individual conduit provider. The terms of each agreement provide for a commitment fee to be paid on the unused capacity, and include various affirmative and negative covenants, including performance metrics and legal requirements similar to those required to issue any term securitization transaction.

Short-Term Borrowings. Short-term borrowings consist of overnight Federal Funds purchased with original maturities less than one year. Total short-term borrowings as of November 30, 2011 were $50 million and the weighted-average interest rate was 0.08%. There were no outstanding short-term borrowings as of November 30, 2010.