| Schedule Of Quarterly Error Corrections And Prior Period Adjustments |
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 | | | | | | | | | | | | | |
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