EXHIBIT 12.1
AMERICAN EXPRESS CREDIT CORPORATION
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
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| Three Months |
| Years Ended December 31, |
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| 2009 |
| 2008 |
| 2007 |
| 2006 |
| 2005 |
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| Restated |
| Restated |
| Restated |
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Earnings: |
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Net income |
| $ | 135 |
| $ | 864 |
| $ | 725 |
| $ | 622 |
| $ | 415 |
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Income tax provision |
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| 22 |
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| 132 |
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| 60 |
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| 95 |
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| 50 |
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Interest expense |
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| 195 |
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| 1,618 |
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| 2,046 |
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| 1,614 |
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| 1,141 |
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Total earnings (a) |
| $ | 352 |
| $ | 2,614 |
| $ | 2,831 |
| $ | 2,331 |
| $ | 1,606 |
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Fixed charges - Interest expense (b) |
| $ | 195 |
| $ | 1,618 |
| $ | 2,046 |
| $ | 1,614 |
| $ | 1,141 |
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Ratio of earnings to fixed charges (a/b) |
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| 1.81 |
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| 1.62 |
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| 1.38 |
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| 1.44 |
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| 1.41 |
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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.
