In connection with the card product misclassification described in Note 1: Background and Basis of Presentation — Restatement of Financial Statements, the Company determined that corrections to the unaudited condensed

consolidated financial statements for the impacts of the card product misclassification were required for all impacted periods previously included in each of the Company’s Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2023, June 30, 2023 and September 30, 2023. Unaudited condensed consolidated financial statements as of and for the quarterly period ended March 31, 2023 were originally restated in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023. The Company has made these corrections to the recognition of discount and interchange revenue, other expense and income tax expense, as well as the related impacts to assets, liabilities and retained earnings for the periods described herein. Assets were impacted by adjustments to deferred tax assets, and liabilities were impacted by an adjustment to the liability for estimated refunds to merchants and merchant acquirers.

The restatement impacts to the Company's condensed consolidated statements of financial condition were as shown below (dollars in millions):


	March 31, 2023						June 30, 2023
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Assets
Other assets	$	4,461	$	149	$	4,610	$	4,822	$	153	$	4,975
Total assets	$	133,141	$	149	$	133,290	$	138,082	$	153	$	138,235

Liabilities and Stockholders' Equity
Liabilities
Accrued expenses and other liabilities	$	5,178	$	611	$	5,789	$	4,963	$	627	$	5,590
Total liabilities	$	119,081	$	611	$	119,692	$	124,226	$	627	$	124,853

Stockholders' Equity
Retained earnings	$	29,037	$	(462)	$	28,575	$	29,761	$	(474)	$	29,287
Total stockholders' equity	$	14,060	$	(462)	$	13,598	$	13,856	$	(474)	$	13,382
Total liabilities and stockholders' equity	$	133,141	$	149	$	133,290	$	138,082	$	153	$	138,235


	September 30, 2023
	As Previously Reported		Restatement Impacts		As Restated
Assets
Other assets	$	5,513	$	183	$	5,696
Total assets	$	143,432	$	183	$	143,615

Liabilities and Stockholders' Equity
Liabilities
Accrued expenses and other liabilities	$	5,710	$	754	$	6,464
Total liabilities	$	129,196	$	754	$	129,950

Stockholders' Equity
Retained earnings	$	30,236	$	(571)	$	29,665
Total stockholders' equity	$	14,236	$	(571)	$	13,665
Total liabilities and stockholders' equity	$	143,432	$	183	$	143,615

The restatement impacts to the Company's condensed consolidated statements of income were as shown below (dollars in millions, except for share amounts):


	For the Three Months Ended March 31, 2023						For the Three Months Ended March 31, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Other income
Discount and interchange revenue, net	$	330	$	(16)	$	314	$	309	$	(19)	$	290
Total other income	$	610	$	(16)	$	594	$	412	$	(19)	$	393





Income before income taxes	$	1,257	$	(16)	$	1,241	$	1,607	$	(19)	$	1,588
Income tax expense	$	289	$	(3)	$	286	$	373	$	(4)	$	369
Net income	$	968	$	(13)	$	955	$	1,234	$	(15)	$	1,219
Net income allocated to common stockholders	$	931	$	(13)	$	918	$	1,197	$	(15)	$	1,182
Basic earnings per common share	$	3.55	$	(0.05)	$	3.50	$	4.20	$	(0.05)	$	4.15
Diluted earnings per common share	$	3.55	$	(0.05)	$	3.50	$	4.20	$	(0.06)	$	4.14


	For the Three Months Ended June 30, 2023						For the Three Months Ended June 30, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Other income
Discount and interchange revenue, net	$	370	$	(17)	$	353	$	379	$	(19)	$	360
Total other income	$	701	$	(17)	$	684	$	603	$	(19)	$	584





Income before income taxes	$	1,169	$	(17)	$	1,152	$	1,441	$	(19)	$	1,422
Income tax expense	$	268	$	(5)	$	263	$	338	$	(4)	$	334
Net income	$	901	$	(12)	$	889	$	1,103	$	(15)	$	1,088
Net income allocated to common stockholders	$	895	$	(12)	$	883	$	1,097	$	(15)	$	1,082
Basic earnings per common share	$	3.54	$	(0.05)	$	3.49	$	3.93	$	(0.05)	$	3.88
Diluted earnings per common share	$	3.54	$	(0.05)	$	3.49	$	3.93	$	(0.06)	$	3.87


	For the Six Months Ended June 30, 2023						For the Six Months Ended June 30, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Other income
Discount and interchange revenue, net	$	700	$	(33)	$	667	$	688	$	(38)	$	650
Total other income	$	1,311	$	(33)	$	1,278	$	1,015	$	(38)	$	977





Income before income taxes	$	2,426	$	(33)	$	2,393	$	3,048	$	(38)	$	3,010
Income tax expense	$	557	$	(8)	$	549	$	712	$	(9)	$	703
Net income	$	1,869	$	(25)	$	1,844	$	2,336	$	(29)	$	2,307
Net income allocated to common stockholders	$	1,826	$	(25)	$	1,801	$	2,293	$	(29)	$	2,264
Basic earnings per common share	$	7.09	$	(0.09)	$	7.00	$	8.13	$	(0.10)	$	8.03
Diluted earnings per common share	$	7.09	$	(0.10)	$	6.99	$	8.12	$	(0.10)	$	8.02


	For the Three Months Ended September 30, 2023						For the Three Months Ended September 30, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Other income
Discount and interchange revenue, net	$	377	$	(17)	$	360	$	335	$	(19)	$	316
Total other income	$	722	$	(17)	$	705	$	625	$	(19)	$	606

Other expense
Other expense	$	144	$	110	$	254	$	154	$	—	$	154
Total other expense	$	1,454	$	110	$	1,564	$	1,368	$	—	$	1,368

Income before income taxes	$	888	$	(127)	$	761	$	1,327	$	(19)	$	1,308
Income tax expense	$	205	$	(30)	$	175	$	314	$	(4)	$	310
Net income	$	683	$	(97)	$	586	$	1,013	$	(15)	$	998
Net income allocated to common stockholders	$	647	$	(97)	$	550	$	975	$	(15)	$	960
Basic earnings per common share	$	2.59	$	(0.38)	$	2.21	$	3.57	$	(0.06)	$	3.51
Diluted earnings per common share	$	2.59	$	(0.38)	$	2.21	$	3.56	$	(0.05)	$	3.51


	For the Nine Months Ended September 30, 2023						For the Nine Months Ended September 30, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Other income
Discount and interchange revenue, net	$	1,077	$	(50)	$	1,027	$	1,023	$	(57)	$	966
Total other income	$	2,033	$	(50)	$	1,983	$	1,640	$	(57)	$	1,583

Other expense
Other expense	$	430	$	110	$	540	$	386	$	—	$	386
Total other expense	$	4,241	$	110	$	4,351	$	3,721	$	—	$	3,721

Income before income taxes	$	3,314	$	(160)	$	3,154	$	4,375	$	(57)	$	4,318
Income tax expense	$	762	$	(38)	$	724	$	1,026	$	(13)	$	1,013
Net income	$	2,552	$	(122)	$	2,430	$	3,349	$	(44)	$	3,305
Net income allocated to common stockholders	$	2,473	$	(122)	$	2,351	$	3,267	$	(44)	$	3,223
Basic earnings per common share	$	9.70	$	(0.47)	$	9.23	$	11.70	$	(0.15)	$	11.55
Diluted earnings per common share	$	9.69	$	(0.47)	$	9.22	$	11.69	$	(0.15)	$	11.54


	For the Three Months Ended December 31, 2023						For the Three Months Ended December 31, 2022
	Unadjusted		Restatement Impacts		As Restated		Unadjusted		Restatement Impacts		As Restated
Other income
Discount and interchange revenue, net	$	370	$	(16)	$	354	$	357	$	(20)	$	337
Total other income	$	728	$	(16)	$	712	$	654	$	(20)	$	634

Other expense
Other expense	$	250	$	13	$	263	$	154	$	—	$	154
Total other expense	$	1,775	$	13	$	1,788	$	1,495	$	—	$	1,495

Income before income taxes	$	512	$	(29)	$	483	$	1,343	$	(20)	$	1,323
Income tax expense	$	124	$	(7)	$	117	$	318	$	(6)	$	312
Net income	$	388	$	(22)	$	366	$	1,025	$	(14)	$	1,011
Net income allocated to common stockholders	$	386	$	(22)	$	364	$	1,019	$	(14)	$	1,005
Basic earnings per common share	$	1.54	$	(0.09)	$	1.45	$	3.74	$	(0.05)	$	3.69
Diluted earnings per common share	$	1.54	$	(0.09)	$	1.45	$	3.74	$	(0.06)	$	3.68

The restatement impacts to the Company's condensed consolidated statements of comprehensive income were as shown below (dollars in millions):


	For the Three Months Ended March 31, 2023						For the Three Months Ended March 31, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Net income	$	968	$	(13)	$	955	$	1,234	$	(15)	$	1,219
Comprehensive income	$	1,072	$	(13)	$	1,059	$	1,115	$	(15)	$	1,100


	For the Three Months Ended June 30, 2023						For the Three Months Ended June 30, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Net income	$	901	$	(12)	$	889	$	1,103	$	(15)	$	1,088
Comprehensive income	$	666	$	(12)	$	654	$	1,065	$	(15)	$	1,050


	For the Six Months Ended June 30, 2023						For the Six Months Ended June 30, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Net income	$	1,869	$	(25)	$	1,844	$	2,336	$	(29)	$	2,307
Comprehensive income	$	1,738	$	(25)	$	1,713	$	2,179	$	(29)	$	2,150


	For the Three Months Ended September 30, 2023						For the Three Months Ended September 30, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Net income	$	683	$	(97)	$	586	$	1,013	$	(15)	$	998
Comprehensive income	$	580	$	(97)	$	483	$	911	$	(15)	$	896


	For the Nine Months Ended September 30, 2023						For the Nine Months Ended September 30, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Net income	$	2,552	$	(122)	$	2,430	$	3,349	$	(44)	$	3,305
Comprehensive income	$	2,318	$	(122)	$	2,196	$	3,090	$	(44)	$	3,046


	For the Three Months Ended December 31, 2023						For the Three Months Ended December 31, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Net income	$	388	$	(22)	$	366	$	1,025	$	(14)	$	1,011
Comprehensive income	$	736	$	(22)	$	714	$	1,039	$	(14)	$	1,025

The restatement impacts to the Company's condensed consolidated statements of cash flows were as shown below (dollars in millions):


	For the Three Months Ended March 31, 2023						For the Three Months Ended March 31, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Cash flows provided by operating activities
Net income	$	968	$	(13)	$	955	$	1,234	$	(15)	$	1,219
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	$	(115)	$	(4)	$	(119)	$	(13)	$	(4)	$	(17)
Changes in assets and liabilities:

Increase in accrued expenses and liabilities	$	(376)	$	17	$	(359)	$	230	$	19	$	249
Net cash provided by operating activities	$	1,791	$	—	$	1,791	$	1,734	$	—	$	1,734


	For the Six Months Ended June 30, 2023						For the Six Months Ended June 30, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Cash flows provided by operating activities
Net income	$	1,869	$	(25)	$	1,844	$	2,336	$	(29)	$	2,307
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	$	(269)	$	(8)	$	(277)	$	(145)	$	(9)	$	(154)
Changes in assets and liabilities:

Increase in accrued expenses and liabilities	$	(812)	$	33	$	(779)	$	323	$	38	$	361
Net cash provided by operating activities	$	3,298	$	—	$	3,298	$	3,346	$	—	$	3,346


	For the Nine Months Ended September 30, 2023						For the Nine Months Ended September 30, 2022
	As Previously Reported		Restatement Impacts		As Restated		As Previously Reported		Restatement Impacts		As Restated
Cash flows provided by operating activities
Net income	$	2,552	$	(122)	$	2,430	$	3,349	$	(44)	$	3,305
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	$	(470)	$	(38)	$	(508)	$	(317)	$	(14)	$	(331)
Changes in assets and liabilities:

Increase in accrued expenses and liabilities	$	(190)	$	160	$	(30)	$	325	$	58	$	383
Net cash provided by operating activities	$	5,687	$	—	$	5,687	$	4,965	$	—	$	4,965