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I68 AXP INOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents the impact to net income and EPS of goodwill amortization for the year ended December 31, 2001:
(Millions, except per share amounts) Net Income Basic EPS Diluted EPS
Reported $ 1,311 $ 0.99 $ 0.98
Add back: Goodwill amortization (after-tax) $ 82 $ 0.06 $ 0.06
Adjusted $ 1,393 $ 1.05 $ 1.04
Note 6 SHORT- AND LONG-TERM DEBT AND BORROWING AGREEMENTS
Short-Term Debt
At December 31, 2002 and 2001, the company’s total short-term debt outstanding was $21.1 billion and $31.6 billion, respec-
tively, with weighted average interest rates of 1.7% and 3.0%, respectively. At December 31, 2002 and 2001, $8.7 billion and
$17.1 billion, respectively, of short-term debt outstanding was hedged by interest rate swaps. The year-end weighted average
effective interest rates were 2.4% and 4.6% for 2002 and 2001, respectively. The company generally paid fixed rates of interest
under the terms of interest rate swaps. Unused lines of credit to support commercial paper borrowings were approximately
$10.0 billion and $10.4 billion at December 31, 2002 and 2001, respectively.
Long-Term Debt
December 31, (Dollars in millions) 2002 2001
Year-End Year-End
Year-End Effective Year-End Effective
Notional Stated Interest Notional Stated Interest
Outstanding Amount of Rate on Rate with Maturity of Outstanding Amount of Rate on Rate with Maturity of
Balance Swaps Debt( a,b) Swaps(a,b) Swaps Balance Swaps Debt(a,b) Swaps(a,b) Swaps
Notes due November 20, 2007 $ 744 — 3.75% — — — ————
Notes due September 12, 2006 1,003 — 5.50% — — $ 1,000 — 5.50% — —
Notes due November 1, 2005 498 — 6.88% — — 497 — 6.88% — —
Notes due December 16, 2004 500 $ 500 6.50% 5.92% various — ————
Notes due June 23, 2004 500 — 6.75% — — 500 — 6.75% — —
Notes due December 17, 2003 1,306 1,306 6.50% 5.92% various — ————
Notes due April 8, 2003 510 510 6.50% 5.92% various — ————
Notes due May 15, 2003 1,000 — 5.90% — — 1,000 — 5.90% — —
Notes due February 14, 2003 600 600 6.50% 5.92% various — ————
Floating Rate Notes due
June 15, 2006 1,000 — 1.43% — — — ————
Floating Rate Notes due
January 15, 2005 750 — 1.45% — — — ————
Floating Rate Notes due
October 15, 2004 750 — 1.47% — — 750 — 1.88% — —
Floating Rate Notes due
September 15, 2003 950 — 1.53% — — 950 — 1.88% — —
Other Fixed Senior Notes due 2002–
2002 – 2005 4,547 3,734 6.52% 5.90% various 1,465 $ 544 6.73% 6.67% 2012
Other Floating Senior Notes due
2002 – 2005 601 250 1.72% 1.60% 2005 515 400 1.88% 1.88% 2002
Other Fixed Rate Notes due
2002 – 2007 142 — 6.73% — — 149 — 6.53% — —
Other Floating Rate Notes due 2003–
2002 – 2008 551 232 4.10% 2.98% various 748 181 3.28% 3.17% 2004
Subordinated Fixed Rate Notes
due 2003 – 2004 153 — 6.90% — — 153 — 6.90% — —
Subordinated Floating Rate
Notes due 2004 – 2006 203 — 1.71% — — 61 — 1.88% — —
Total $ 16,308 $ 7,132 4.93% $ 7,788 $ 1,125 4.73%
(a) For floating rate debt issuances, the stated and effective interest rates were based on the respective rates at December 31, 2002 and 2001; these rates are not an indication of future interest rates.
(b) Weighted average rates were determined where appropriate.