EX-12 2 ex12.txt AMERICAN EXPRESS CREDIT CORPORATION (a wholly-owned subsidiary of American Express Travel Related Services Company, Inc.) EXHIBIT 12.1 COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES OF AMERICAN EXPRESS CREDIT CORPORATION (millions)
NINE MONTHS ENDED SEPTEMBER 30, (UNAUDITED) YEARS ENDED DECEMBER 31, --------------- -------------------------------------------------------- 2000 1999 1999 1998 1997 1996 1995 ---- ---- ---- ---- ---- ---- ---- Earnings: Net Income $ 203 $ 171 $ 223 $ 237 $ 212 $ 215 $ 197 Income tax provision 107 92 120 128 114 115 105 Interest expense 1,058 822 1,130 1,190 1,125 1,117 1,054 ------- -------- ------- ------- ------- ------- ------- Total earnings $1,368 $1,085 $1,473 $1,555 $1,451 $1,447 $1,356 ====== ====== ====== ====== ====== ====== ====== Fixed charges - Interest expense $1,058 $ 822 $1,130 $1,190 $1,125 $1,117 $1,054 ====== ======= ====== ====== ====== ====== ====== Ratio of earnings to fixed charges 1.29 1.32 1.30 1.31 1.29 1.30 1.29
Note: Gross rentals on long-term leases were minimal in amount in each of the periods shown. AMERICAN EXPRESS CREDIT CORPORATION (a wholly-owned subsidiary of American Express Travel Related Services Company, Inc.) EXHIBIT 12.2 COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES OF AMERICAN EXPRESS COMPANY (Dollars in millions)
NINE MONTHS ENDED SEPTEMBER 30, YEARS ENDED DECEMBER 31, 2000 --------------------------------------------------------------- (UNAUDITED) 1999 1998 1997 1996 1995 ----------- ---- ---- ---- ---- ---- EARNINGS: Pretax income from continuing operations $2,995 $3,438 $2,925 $2,750 $2,664 $2,183 Interest expense 2,177 2,178 2,224 2,122 2,160 2,343 Other adjustments 125 151 124 127 139 95 -------- -------- -------- -------- -------- -------- Total earnings (a) $5,297 $5,767 $5,273 $4,999 $4,963 $4,621 ======== ======== ======== ======== ======== ======== Fixed charges: Interest expense $2,177 $2,178 $2,224 $2,122 $2,160 $2,343 Other adjustments 125 152 129 129 130 135 -------- -------- -------- -------- -------- -------- Total fixed charges (b) $2,302 $2,330 $2,353 $2,251 $2,290 $2,478 ======== ======== ======== ======== ======== ======== Ratio of earnings to fixed charges (a/b) 2.30 2.48 2.24 2.22 2.17 1.86
Included in interest expense in the above computation is interest expense related to the international banking operations of American Express Company ("American Express") 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 Statements 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 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. In the fourth quarter of 1995, American Express' ownership in First Data Corporation ("FDC") was 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.