Attached files

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10-Q - AMERICAN EXPRESS CREDIT CORPc59396_10q.htm
EX-4.3 - AMERICAN EXPRESS CREDIT CORPc59396_ex4-3.htm
EX-4.1 - AMERICAN EXPRESS CREDIT CORPc59396_ex4-1.htm
EX-4.2 - AMERICAN EXPRESS CREDIT CORPc59396_ex4-2.htm
EX-31.2 - AMERICAN EXPRESS CREDIT CORPc59396_ex31-2.htm
EX-32.2 - AMERICAN EXPRESS CREDIT CORPc59396_ex32-2.htm
EX-31.1 - AMERICAN EXPRESS CREDIT CORPc59396_ex31-1.htm
EX-32.1 - AMERICAN EXPRESS CREDIT CORPc59396_ex32-1.htm
EX-12.1 - AMERICAN EXPRESS CREDIT CORPc59396_ex12-1.htm

EXHIBIT 12.2
AMERICAN EXPRESS COMPANY
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months
Ended
September 30,

 

Years Ended December 31,

 

 

 


 



 

 

2009

 

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. American Express’ 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 American Express, 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.