EXHIBIT 12.1
AMERICAN EXPRESS COMPANY
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Nine Months Years Ended December 31,
Ended September 30, -----------------------------
1995 1994 1993 1992 1991
------------------- ---- ---- ---- ----
Earnings:
Pretax income from
continuing operations $1,641 $1,891 $2,326 $ 896 $ 622
Interest expense 1,749 1,925 1,783 2,171 2,761
Other adjustments 62 103 88 196 142
----- ----- ----- ----- -----
Total earnings (a) $3,452 $3,919 $4,197 $3,263 $3,525
----- ----- ----- ----- -----
Fixed charges:
Interest expense $1,749 $1,925 $1,783 $2,171 $2,761
Other adjustments 101 142 130 154 147
----- ----- ----- ----- -----
Total fixed charges (b) $1,850 $2,067 $1,913 $2,325 $2,908
----- ----- ----- ----- -----
Ratio of earnings to
fixed charges (a/b) 1.87 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)
Nine Months Years Ended December 31,
Ended September 30, -----------------------------
1995 1994 1993 1992 1991
------------------- ---- ---- ---- ----
Earnings:
Pretax income from
continuing operations $1,641 $1,891 $2,326 $ 896 $ 622
Interest expense 1,749 1,925 1,783 2,171 2,761
Other adjustments 62 103 88 196 142
----- ----- ----- ----- -----
Total earnings (a) $3,452 $3,919 $4,197 $3,263 $3,525
----- ----- ----- ----- -----
Fixed charges and
preferred share
dividends:
Interest expense $1,749 $1,925 $1,783 $2,171 $2,761
Dividends on preferred
shares 18 50 66 65 61
Other adjustments 101 142 130 154 147
----- ----- ----- ----- -----
Total fixed charges and
preferred share
dividends (b) $1,868 $2,117 $1,979 $2,390 $2,969
----- ----- ----- ----- -----
Ratio of earnings to
fixed charges and
preferred share
dividends (a/b) 1.85 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.