EX-12 2 axpq317ex12.htm EX-12


EXHIBIT 12

AMERICAN EXPRESS COMPANY
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in Millions)

                                     
    
Nine Months Ended
                               
    
September 30,
   
Years Ended December 31,
 
   
2017
   
2016
   
2015
   
2014
   
2013
   
2012
 
Earnings:
                                   
 Pretax income
 
$
5,593
   
$
8,096
   
$
7,938
   
$
8,991
   
$
7,888
   
$
6,451
 
 Interest expense(a)
   
1,532
     
1,704
     
1,623
     
1,707
     
1,958
     
2,226
 
 Other adjustments(b)
   
104
     
101
     
118
     
402
     
133
     
117
 
Total earnings
 
$
7,229
   
$
9,901
   
$
9,679
   
$
11,100
   
$
9,979
   
$
8,794
 
Fixed charges:
                                               
 Interest expense
 
$
1,532
   
$
1,704
   
$
1,623
   
$
1,707
   
$
1,958
   
$
2,226
 
 Other adjustments(c)
 
 
38
   
 
56
   
 
62
   
 
79
   
 
93
   
 
102
 
Total fixed charges
   
1,570
     
1,760
     
1,685
     
1,786
     
2,051
     
2,328
 
Preferred stock dividends
   
61
     
80
     
62
     
     
     
 
Total fixed charges and preferred stock dividends
 
$
1,631
   
$
1,840
   
$
1,747
   
$
1,786
   
$
2,051
   
$
2,328
 
Ratio of earnings to combined fixed charges and preferred stock dividends
   
4.43
     
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. The Company’s 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 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.
(c)
For purposes of the “fixed charges” computation, “other adjustments” include capitalized interest costs and the interest component of rental expense.