Discover Financial Services | 2013 | FY | 3


Other Income and Other Expense
Total other income includes the following components (dollars in millions):
 
For the Calendar Year Ended December 31, 2013
 
For the Fiscal Years Ended November 30,
 
For the One Month Ended December 31, 2012
 
 
2012
 
2011
 
Royalty and licensee revenue
$
68

 
$
72

 
$
72

 
$
6

Merchant fees
44

 
17

 
16

 
3

Transition service agreement revenue
6

 
12

 
27

 
1

Gain from sales of merchant contracts

 
3

 
11

 

Other income
51

 
59

 
53

 
9

Total other income
$
169

 
$
163

 
$
179

 
$
19

 
 
 
 
 
 
 
 

Total other expense includes the following components (dollars in millions):
 
For the Calendar Year Ended December 31, 2013
 
For the Fiscal Years Ended November 30,
 
For the One Month Ended December 31, 2012
 
 
2012
 
2011
 
Postage
$
86

 
$
85

 
$
82

 
$
7

Fraud losses
110

 
93

 
72

 
9

Supplies
26

 
22

 
23

 
2

Credit related inquiry fees
19

 
20

 
17

 
1

Litigation expense
(12
)
 
218

 
22

 

Incentive expense
61

 
59

 
23

 
5

Other expense
198

 
107

 
101

 
11

Total other expense
$
488

 
$
604

 
$
340

 
$
35

 
 
 
 
 
 
 
 

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