AMERICAN EXPRESS CO - FORM 10-Q - EX-12 - COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES - October 30, 2009

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EXCEL - IDEA: XBRL DOCUMENT - AMERICAN EXPRESS COFinancial_Report.xls
10-Q - FORM 10-Q - AMERICAN EXPRESS COd10q.htm
EX-31.1 - CERTIFICATION OF KENNETH I. CHENAULT PURSUANT TO RULE 13A-14(A) - AMERICAN EXPRESS COdex311.htm
EX-31.2 - CERTIFICATION OF DANIEL T. HENRY PURSUANT TO RULE 13A-14(A) - AMERICAN EXPRESS COdex312.htm
EX-10.1 - LETTER AGREEMENT, DATED OCTOBER 2,2009 - AMERICAN EXPRESS COdex101.htm
EX-32.1 - CERTIFICATION OF KENNETH I. CHENAULT AND DANIEL T. HENRY PURSUANT TO 18 U.S.C. - AMERICAN EXPRESS COdex321.htm

EXHIBIT 12

AMERICAN EXPRESS COMPANY

COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in Millions)

 

     Nine Months
Ended September 30,
2009		    Years Ended December 31,
      2008    2007    2006    2005

Earnings:

               

Pretax income from continuing operations

    $ 1,880    $ 3,581    $ 5,694    $ 5,152    $ 3,979

Interest expense

      1,645      3,628      4,525      3,258      2,415

Other adjustments

      85      144      143      139      150
                                  

Total earnings (a)

    $ 3,610    $ 7,353    $ 10,362    $ 8,549    $ 6,544
                                  

Fixed charges:

               

Interest expense

    $ 1,645    $ 3,628    $ 4,525    $ 3,258    $ 2,415

Other adjustments

      79      114      106      106      151
                                  

Total fixed charges (b)

    $ 1,724    $ 3,742    $ 4,631    $ 3,364    $ 2,566
                                  

Ratio of earnings to fixed charges (a/b)

      2.09      1.96      2.24      2.54      2.55

Included in interest expense in the above computation is interest expense related to the cardmember lending activities, international banking operations, and charge card and other activities in the Consolidated Statements of Income. Interest expense does not include interest on liabilities recorded in accordance with GAAP governing unrecognized tax benefits. The Company’s policy is to classify such interest in income tax provision in the Consolidated Statements of Income.

For purposes of the “earnings” computation, “other adjustments” include adding the amortization of capitalized interest, the net loss of affiliates accounted for under the equity method whose debt is not guaranteed by the Company, the non-controlling interest in the earnings of majority-owned subsidiaries with fixed charges, and the interest component of rental expense, and subtracting undistributed net income of affiliates accounted for under the equity method.

For purposes of the “fixed charges” computation, “other adjustments” include capitalized interest costs and the interest component of rental expense.

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