AMERICAN EXPRESS CREDIT CORP - FORM 10-Q - EX-12.2 - May 5, 2017

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EX-32.2 - EX-32.2 - AMERICAN EXPRESS CREDIT CORPd170331ex322.htm
EX-32.1 - EX-32.1 - AMERICAN EXPRESS CREDIT CORPd170331ex321.htm
EX-31.2 - EX-31.2 - AMERICAN EXPRESS CREDIT CORPd170331ex312.htm
EX-31.1 - EX-31.1 - AMERICAN EXPRESS CREDIT CORPd170331ex311.htm
EX-12.1 - EX-12.1 - AMERICAN EXPRESS CREDIT CORPd170331ex121.htm
10-Q - 10-Q - AMERICAN EXPRESS CREDIT CORPd17033110q.htm
EXHIBIT 12.2
AMERICAN EXPRESS COMPANY
 COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS


   
Three Months Ended
  
Years Ended December 31,
      
(Dollars in Millions)
  
March 31, 2017
  
2016
  
2015
  
2014
  
2013
  
2012
  
Earnings:
                          
Pretax income from continuing operations
  
$
1,817
  
$
8,096
  
$
7,938
  
$
8,991
  
$
7,888
  
$
6,451
  
Interest expense (a)
    
443
    
1,704
    
1,623
    
1,707
    
1,958
    
2,226
  
Other adjustments (b)
    
27
    
101
    
118
    
402
    
133
    
117
  
Total earnings
  
$
2,287
  
$
9,901
  
$
9,679
  
$
11,100
  
$
9,979
  
$
8,794
  
Fixed charges:
                                      
Interest expense
  
$
443
  
$
1,704
  
$
1,623
  
$
1,707
  
$
1,958
  
$
2,226
  
Other adjustments (c)
    
12
    
56
    
62
    
79
    
93
    
102
  
Total fixed charges
  
$
455
  
$
1,760
  
$
1,685
  
$
1,786
  
$
2,051
  
$
2,328
  
Preferred stock dividends
  
$
21
  
$
80
  
$
62
  
$
―
  
$
―
  
$
―
  
Total fixed charges and preferred stock dividends
  
$
476
  
$
1,840
  
$
1,747
  
$
1,786
  
$
2,051
  
$
2,328
  
Ratio of earnings to combined fixed charges and preferred stock dividends
    
4.80
    
5.38
    
5.54
    
6.22
    
4.87
    
3.78
  
(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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