EXHIBIT 12.1
AMERICAN EXPRESS CREDIT CORPORATION
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
(millions)
Year Ended December 31,
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1995 1994 1993 1992 1991
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Earnings:
Income before extraordinary
charge $ 197 $ 139 $ 137 $ 138 $ 174
Income tax provision 105 75 64 70 87
Interest expense 1,054 736 599 728 946
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Total earnings $1,356 $ 950 $ 800 $ 936 $1,207
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Fixed charges -
interest expense $1,054 $ 736 $ 599 $ 728 $ 946
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Ratio of earnings to
fixed charges 1.29 1.29 1.34* 1.29 1.28
Note: Gross rentals on long-term leases were minimal in amount in each
of the periods shown.
* The ratio of earnings to fixed charges calculated in accordance
with the Receivables Agreements after the impact of the
extraordinary charge of $34 million (pretax) was 1.28.
EXHIBIT 12.2
AMERICAN EXPRESS COMPANY
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
(millions)
Year Ended December 31,
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____________________________________
1995 1994 1993 1992 1991
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Earnings:
Pretax income from
continuing operations $2,183 $1,891 $2,326 $ 896 $ 622
Interest expense 2,343 1,925 1,776 2,171 2,761
Other adjustments 95 103 88 196 142
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Total earnings (a) $4,621 $3,919 $4,190 $3,263 $3,525
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Fixed charges:
Interest expense $2,343 $1,925 $1,776 $2,171 $2,761
Other adjustments 135 142 130 154 147
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Total fixed charges (b) $2,478 $2,067 $1,906 $2,325 $2,908
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Ratio of earnings to
fixed charges (a/b) 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 and TRS'
Cardmember lending activities, which is netted against interest and dividends
and Cardmember lending net finance charge revenue, respectively, in the
Consolidated Statement of Income of American Express.
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 American Express,
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, American Express 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, American Express 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, American Express' 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, American Express' investment in FDC is accounted for as Investments -
Available for Sale.