AMERICAN EXPRESS CO - FORM 10-Q - EX-12 - COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES - May 5, 2010

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10-Q - FORM 10-Q - AMERICAN EXPRESS COd10q.htm
EXCEL - IDEA: XBRL DOCUMENT - AMERICAN EXPRESS COFinancial_Report.xls
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-32.1 - CERTIFICATION OF KENNETH I. CHENAULT AND DANIEL T. HENRY - AMERICAN EXPRESS COdex321.htm

EXHIBIT 12

AMERICAN EXPRESS COMPANY

COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in Millions)

 

     Three Months                    
     Ended March 31,    Years Ended December 31,
     2010    2009    2008    2007    2006

Earnings:

               

Pretax income from continuing operations

    $ 1,252    $ 2,841    $ 3,581    $ 5,694    $ 5,152

Interest expense

      598      2,208      3,628      4,525      3,258

Other adjustments

      27      129      144      143      139

Total earnings (a)

    $ 1,877    $ 5,178    $ 7,353    $ 10,362    $ 8,549

Fixed charges:

               

Interest expense

    $ 598    $ 2,208    $ 3,628    $ 4,525    $ 3,258

Other adjustments

      23      121      114      106      106

Total fixed charges (b)

    $ 621    $ 2,329    $ 3,742    $ 4,631    $ 3,364

Ratio of earnings to fixed charges (a/b)

      3.02      2.22      1.96      2.24      2.54

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 under GAAP governing accounting for uncertainty in income taxes. 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 minority 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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