EXHIBIT 12.1
AMERICAN EXPRESS COMPANY
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Six Months
Ended June 30, Years Ended December 31,
--------------------------------
1995 1994 1993 1992 1991
Earnings: ------------- ---- ---- ---- ----
Pretax income from
continuing operations $ 1,070 $1,891 $ 2,326 $ 896 $ 622
Interest expense 1,173 1,925 1,783 2,171 2,761
Other adjustments 46 103 88 196 142
----- ----- ----- ----- -----
Total earnings (a) $ 2,289 $3,919 $ 4,197 $3,263 $3,525
----- ----- ----- ----- -----
Fixed charges:
Interest expense $ 1,173 $1,925 $ 1,783 $2,171 $2,761
Other adjustments 69 142 130 154 147
----- ----- ----- ----- -----
Total fixed charges (b) $ 1,242 $2,067 $ 1,913 $2,325 $2,908
----- ----- ----- ----- -----
Ratio of earnings to
fixed charges (a/b) 1.84 1.90 2.19 1.40 1.21
Included in interest expense in the above computation is interest
expense related to the Company's international banking operations and
Travel Related Services' consumer lending activities, which is netted
against interest and dividends in the Consolidated Statement of Income.
For purposes of the "earnings" computation, other adjustments include
adding the amortization of capitalized interest, the net loss of
affiliates accounted for at equity whose debt is not guaranteed by the
Company, the minority 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 at equity.
For purposes of the "fixed charges" computation, other adjustments
include capitalized interest costs and the interest component of rental
expense.
On May 31, 1994, the Company completed the spin-off of Lehman Brothers
through a dividend to American Express common shareholders.
Accordingly, Lehman Brothers' results are reported as a discontinued
operation and are excluded from the above computation for all periods
presented. In March 1993, the Company reduced its ownership in First
Data Corporation to approximately 22 percent through a public offering.
As a result, beginning in 1993 FDC is reported as an equity investment
in the above computation.
EXHIBIT 12.2
AMERICAN EXPRESS COMPANY
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES AND
PREFERRED SHARE DIVIDENDS
(Dollars in millions)
Six Months
Ended June 30, Years Ended December 31,
-------------------------------
1995 1994 1993 1992 1991
Earnings: -------------- ---- ---- ---- ----
Pretax income from
continuing operations $1,070 $1,891 $2,326 $ 896 $ 622
Interest expense 1,173 1,925 1,783 2,171 2,761
Other adjustments 46 103 88 196 142
----- ----- ----- ----- -----
Total earnings (a) $2,289 $3,919 $4,197 $3,263 $3,525
Fixed charges and ----- ----- ----- ----- -----
preferred share
dividends:
Interest expense $1,173 $1,925 $1,783 $2,171 $2,761
Dividends on preferred
shares 12 50 66 65 61
Other adjustments 69 142 130 154 147
----- ----- ----- ----- -----
Total fixed charges and
preferred share
dividends (b) $1,254 $2,117 $1,979 $2,390 $2,969
----- ----- ----- ----- -----
Ratio of earnings to
fixed charges and
preferred share
dividends (a/b) 1.82 1.85 2.12 1.37 1.19
Included in interest expense in the above computation is interest
expense related to the Company's international banking operations and
Travel Related Services' consumer lending activities, which is netted
against interest and dividends in the Consolidated Statement of Income.
For purposes of the "earnings" computation, other adjustments include
adding the amortization of capitalized interest, the net loss of
affiliates accounted for at equity whose debt is not guaranteed by the
Company, the minority 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 at equity.
For purposes of the "fixed charges and preferred share dividends"
computation, dividends on outstanding preferred shares have been
increased to an amount representing the pretax earnings required to
cover such dividend requirements. Other adjustments include capitalized
interest costs and the interest component of rental expense.
On May 31, 1994, the Company completed the spin-off of Lehman Brothers
through a dividend to American Express common shareholders.
Accordingly, Lehman Brothers' results are reported as a discontinued
operation and are excluded from the above computation for all periods
presented. In March 1993, the Company reduced its ownership in First
Data Corporation to approximately 22 percent through a public offering.
As a result, beginning in 1993 FDC is reported as an equity investment
in the above computation.