AMERICAN EXPRESS CREDIT CORP - FORM 10-Q - EX-12.2 - November 6, 2014

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EX-31.1 - EX-31.1 - AMERICAN EXPRESS CREDIT CORPd814194dex311.htm
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EX-31.2 - EX-31.2 - AMERICAN EXPRESS CREDIT CORPd814194dex312.htm
EX-12.1 - EX-12.1 - AMERICAN EXPRESS CREDIT CORPd814194dex121.htm
EX-32.1 - EX-32.1 - AMERICAN EXPRESS CREDIT CORPd814194dex321.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, 2014		   
  		     Years Ended December 31,   

 

          2013        2012        2011        2010        2009   

Earnings:

               

Pretax income from continuing operations

      $ 6,766      $ 7,888      $ 6,451      $ 6,956      $ 5,964      $ 2,841   

Interest expense (a)

        1,302        1,958        2,226        2,320        2,423        2,208   

Other adjustments (b)

        147        133        117        124        126        129   

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total earnings

      $ 8,215      $ 9,979      $ 8,794      $ 9,400      $ 8,513      $ 5,178   

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

               

Interest expense

      $ 1,302      $ 1,958      $ 2,226      $ 2,320      $ 2,423      $ 2,208   

Other adjustments (c)

        60        93        102        94        85        121   

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

      $ 1,362      $ 2,051      $ 2,328      $ 2,414      $ 2,508      $ 2,329   

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

        6.03        4.87        3.78        3.89        3.39        2.22   

 

  

 

  (a)

Included in interest expense is interest expense related to the Card Member 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. American Express’ policy is to classify such interest in income tax provision in the Consolidated Statements of Income.

 

  (b)

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 noncontrolling 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.

 

  (c)

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

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