EXHIBIT 12.1
AMERICAN EXPRESS CREDIT CORPORATION
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
| Six | ||||||||||||||||
| Months | ||||||||||||||||
| Ended | ||||||||||||||||
| June 30, | Years Ended December 31, | |||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||
| Earnings: | ||||||||||||||||
| Net income | $ | 407 | $ | 720 | $ | 622 | $ | 415 | $ | 234 | ||||||
| Income tax provision | 57 | 57 | 95 | 50 | 75 | |||||||||||
| Interest expense | 871 | 2,046 | 1,614 | 1,141 | 863 | |||||||||||
| Total earnings (a) | $ | 1,335 | $ | 2,823 | $ | 2,331 | $ | 1,606 | $ | 1,172 | ||||||
| Fixed charges - | ||||||||||||||||
| Interest expense (b) | $ | 871 | $ | 2,046 | $ | 1,614 | $ | 1,141 | $ | 863 | ||||||
| Ratio of earnings | ||||||||||||||||
| to fixed charges (a/b) | 1.53 | 1.38 | 1.44 | 1.41 | 1.36 | |||||||||||
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” (FIN 48). Credco’s policy is to classify such interest in income tax provision in the Consolidated Statements of Income.
