EXHIBIT 12.1
AMERICAN EXPRESS COMPANY
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Three Months Years Ended December 31,
Ended March 31,
1996 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ----
Earnings:
Pretax income from
continuing operations $ 565 $ 2,183 $ 1,891 $ 2,326 $ 896 $ 622
Interest expense 554 2,343 1,925 1,776 2,171 2,761
Other adjustments 31 95 103 88 196 142
----- ------ ------ ------ ------ ------
Total earnings (a) $ 1,150 $ 4,621 $ 3,919 $ 4,190 $ 3,263 $3,525
------ ------ ------ ------ ------ ------
Fixed charges:
Interest expense $ 554 $ 2,343 $ 1,925 $ 1,776 $ 2,171 $2,761
Other adjustments 32 135 142 130 154 147
------ ------ ------ ------ ------ ------
Total fixed charges (b) $ 586 $ 2,478 $ 2,067 $ 1,906 $ 2,325 $2,908
------ ------ ------ ------ ------ ------
Ratio of earnings to
fixed charges (a/b) 1.96 1.86 1.90 2.20 1.40 1.21
Included in interest expense in the above computation is interest expense
related to the international banking operations of American Express
Company (the "Company") and Travel Related Services' Cardmember lending
activities, which is netted against interest and dividends and Cardmember
lending net finance charge revenue, respectively, 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 was reported as an equity investment in the above
computation. In the fourth quarter of 1995, the Company's ownership was
further reduced to approximately 10 percent as a result of shares issued
by FDC in connection with a merger transaction. Accordingly, as of
December 31, 1995, the Company's investment in FDC is accounted for as
Investments - Available for Sale.
EXHIBIT 12.2
AMERICAN EXPRESS COMPANY
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES AND
PREFERRED SHARE DIVIDENDS
(Dollars in millions)
Three Months Years Ended December 31,
Ended March 31,
1996 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ----
Earnings:
Pretax income from
continuing operations $ 565 $ 2,183 $ 1,891 $ 2,326 $ 896 $ 622
Interest expense 554 2,343 1,925 1,776 2,171 2,761
Other adjustments 31 95 103 88 196 142
------ ------ ------ ------ ------ ------
Total earnings (a) $ 1,150 $ 4,621 $ 3,919 $ 4,190 $ 3,263 $ 3,525
------ ------ ------ ------ ------ ------
Fixed charges and
preferred share
dividends:
Interest expense $ 554 $ 2,343 $ 1,925 $ 1,776 $ 2,171 $ 2,761
Dividends on preferred
shares 6 24 50 66 65 61
Other adjustments 32 135 142 130 154 147
------ ------ ------ ------ ------ ------
Total fixed charges and
preferred share
dividends (b) $ 592 $ 2,502 $ 2,117 $ 1,972 $ 2,390 $ 2,969
------ ------ ------ ------ ------ ------
Ratio of earnings to
fixed charges and
preferred share
dividends (a/b) 1.94 1.85 1.85 2.12 1.37 1.19
Included in interest expense in the above computation is interest expense
related to the international banking operations of American Express Company
(the "Company") and Travel Related Services' Cardmember lending activities,
which is netted against interest and dividends and Cardmember lending net
finance charge revenue, respectively, 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 was reported as an equity
investment in the above computation. In the fourth quarter of 1995, the
Company's ownership was further reduced to approximately 10 percent as a result
of shares issued by FDC in connection with a merger transaction. Accordingly,
as of December 31, 1995, the Company's investment in FDC is accounted for as
Investments - Available for Sale.