EX-12 3 cred_ex12.txt EXHIBIT 12.1 AMERICAN EXPRESS CREDIT CORPORATION (a wholly-owned subsidiary of American Express Travel Related Services Company, Inc.) COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions)
Six Months Ended June 30, (Unaudited) Years Ended December 31, --------------------- ------------------------------------------------------- 2001 2000 2000 1999 1998 1997 1996 ---- ---- ---- ---- ---- ---- ---- Earnings: Net income $ 160 $ 146 $ 286 $ 223 $ 237 $ 212 $ 215 Income tax provision 80 79 150 120 128 114 115 Interest expense 783 683 1,459 1,130 1,190 1,125 1,117 ------ ------ ------ ------ ------ ------ ------ Total earnings (a) $1,023 $908 $1,895 $1,473 $1,555 $1,451 $1,447 ====== ====== ====== ====== ====== ====== ====== Fixed charges: Interest expense (b) $783 $683 $1,459 $1,130 $1,190 $1,125 $1,117 ====== ====== ====== ====== ====== ====== ====== Ratio of earnings to fixed charges (a/b) 1.31 1.33 1.30 1.30 1.31 1.29 1.30
Note: Gross rentals on long-term leases were minimal in amount in each of the periods shown. EXHIBIT 12.2 AMERICAN EXPRESS COMPANY COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions)
Six Months Ended June 30, 2001 Years Ended December 31, ------------------------------------------------------------------ (Unaudited) 2000 1999 1998 1997 1996 ----------- ---- ---- ---- ---- ---- Earnings: Pretax income from continuing operations $ 894 $3,908 $3,438 $2,925 $2,750 $2,664 Interest expense 1,577 2,952 2,178 2,224 2,122 2,160 Other adjustments 86 163 151 124 127 139 ------ ------ ------ ------ ------ ------ Total earnings (a) $2,557 $7,023 $5,767 $5,273 $4,999 $4,963 ------ ------ ------ ------ ------ ------ Fixed charges: Interest expense $1,577 $2,952 $2,178 $2,224 $2,122 $2,160 Other adjustments 84 165 152 129 129 130 ------ ------ ------ ------ ------ ------ Total fixed charges (b) $1,661 $3,117 $2,330 $2,353 $2,251 $2,290 ------ ------ ------ ------ ------ ------ Ratio of earnings to fixed charges (a/b) 1.54 2.25 2.48 2.24 2.22 2.17
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.