EX-12 3 a09-11386_1ex12.htm EX-12

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,

 

 

 

2009

 

2008

 

2007

 

2006

 

2005

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

Pretax income from continuing operations

 

$

544

 

$

3,581

 

$

5,694

 

$

5,152

 

$

3,979

 

Interest expense

 

556

 

3,628

 

4,525

 

3,258

 

2,415

 

Other adjustments

 

28

 

144

 

143

 

139

 

150

 

Total earnings (a)

 

$

1,128

 

$

7,353

 

$

10,362

 

$

8,549

 

$

6,544

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

556

 

$

3,628

 

$

4,525

 

$

3,258

 

$

2,415

 

Other adjustments

 

24

 

114

 

106

 

106

 

151

 

Total fixed charges (b)

 

$

580

 

$

3,742

 

$

4,631

 

$

3,364

 

$

2,566

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (a/b)

 

1.94

 

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 under Financial Accounting Standards Board (FASB) Financial Interpretation No. 48, “Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109.” 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 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.