AMERICAN EXPRESS CO - FORM 10-K - EX-12 - COMPUTATION IN SUPPORT OF RATIO OF EARNINGS - February 17, 2017

Attached files

file filename
EX-32.2 - CERTIFICATION OF JEFFREY C. CAMPBELL, CHIEF FINANCIAL OFFICER - AMERICAN EXPRESS COd321397dex322.htm
EX-32.1 - CERTIFICATION OF KENNETH I. CHENAULT, CHIEF EXECUTIVE OFFICER - AMERICAN EXPRESS COd321397dex321.htm
EX-31.2 - CERTIFICATION OF JEFFREY C. CAMPBELL, CHIEF FINANCIAL OFFICER - AMERICAN EXPRESS COd321397dex312.htm
EX-31.1 - CERTIFICATION OF KENNETH I. CHENAULT, CHIEF EXECUTIVE OFFICER - AMERICAN EXPRESS COd321397dex311.htm
EX-23.1 - CONSENT OF PRICEWATERHOUSECOOPERS LLP - AMERICAN EXPRESS COd321397dex231.htm
EX-21 - SUBSIDIARIES OF THE COMPANY - AMERICAN EXPRESS COd321397dex21.htm
EX-10.44 - 2016 INCENTIVE COMPENSATION PLAN PORTFOLIO GRANT - AMERICAN EXPRESS COd321397dex1044.htm
EX-10.43 - 2016 INCENTIVE COMPENSATION PLAN PERFORMACE GRANT - AMERICAN EXPRESS COd321397dex1043.htm
EX-10.42 - FORM OF RESTRICTED STOCK UNIT AWARD AGREEMENT FOR EXECUTIVE OFFICERS - AMERICAN EXPRESS COd321397dex1042.htm
EX-10.41 - FORM OF NONQUALIFIED STOCK OPTION AWARD AGREEMENT FOR EXECUTIVE OFFICERS - AMERICAN EXPRESS COd321397dex1041.htm
EX-10.30 - NINTH AMENDMENT TO AXP RETIREMENT RESTORATION PLAN - AMERICAN EXPRESS COd321397dex1030.htm
10-K - FORM 10-K - AMERICAN EXPRESS COd321397d10k.htm

Exhibit 12

AMERICAN EXPRESS COMPANY

COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(Dollars in Millions)

 

 

  
        2016      2015      2014      2013      2012  

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Earnings:

                

Pretax income from continuing operations

     $                 8,096       $                 7,938       $                 8,991       $                 7,888       $                 6,451   

Interest expense(a)

       1,704         1,623         1,707         1,958         2,226   

Other adjustments(b)

       101         118         402         133         117   
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total earnings

     $ 9,901       $ 9,679       $ 11,100       $ 9,979       $ 8,794   

Fixed charges:

                

Interest expense

     $ 1,704       $ 1,623       $ 1,707       $ 1,958       $ 2,226   

Other adjustments(c)

       56         62         79         93         102   
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges

     $ 1,760       $ 1,685       $ 1,786       $ 2,051       $ 2,328   

Preferred stock dividends

       80         62         —          —          —    
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges and preferred stock dividends

       1,840         1,747         1,786         2,051         2,328   

Ratio of earnings to combined fixed charges and preferred

stock dividends

       5.38         5.54         6.22         4.87         3.78   

 

  

 

(a)   Included in interest expense is interest expense related to the Card Member lending activities, international banking operations, and charge card and other activities in the Consolidated Statements of Income. Interest expense does not include interest on liabilities recorded under GAAP governing accounting for uncertainty in income taxes. The Company’s policy is to classify such interest in income tax provision in the Consolidated Statements of Income.

 

(b)   For purposes of the “earnings” computation, “other adjustments” include adding the amortization of capitalized interest, the net loss of affiliates accounted for under the equity method whose debt is not guaranteed by the Company, the non-controlling 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 under the equity method.

 

(c)   For purposes of the “fixed charges” computation, “other adjustments” include capitalized interest costs and the interest component of rental expense.

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