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I80 AXP INOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 17 EARNINGS PER COMMON SHARE
Basic EPS is computed using the average actual shares outstanding during the period. Diluted EPS is basic EPS adjusted for the
dilutive effect of stock options, RSAs and other financial instruments that may be converted into common shares. The basic
and diluted EPS computations are as follows:
(Millions, except per share amounts) 2002 2001 2000
Numerator:
Net income $ 2,671 $ 1,311 $ 2,810
Denominator:
Basic: Weighted-average shares outstanding during the period 1,320 1,324 1,327
Add: Dilutive effect of stock options, restricted stock awards
and other dilutive securities 10 12 33
Diluted 1,330 1,336 1,360
Basic EPS $ 2.02 $ 0.99 $ 2.12
Diluted EPS $ 2.01 $ 0.98 $ 2.07
Stock options having an exercise price greater than the average market price of the company’s common shares for each period
presented are excluded from the computation of EPS because the effect would be antidilutive. The number of these excluded
stock options for the years ended December 31, 2002, 2001 and 2000 was 101 million, 72 million and 0.5 million, respectively.
Note 18 OPERATING SEGMENTS AND GEOGRAPHIC OPERATIONS
Operating Segments
The company is principally engaged in providing travel related, financial advisory and international banking services through-
out the world. TRS’ products and services include, among others, charge cards, cardmember lending products, Travelers
Cheques, and corporate and consumer travel services. AEFA’s services and products include financial planning and advice,
investment advisory services and a variety of products, including insurance and annuities, investment certificates and mutual
funds. AEB’s products and services include providing private, financial institution and corporate banking; personal financial
services and global trading. The company operates on a global basis, although the principal market for financial advisory
services is the United States.
The following table presents certain information regarding these operating segments at December 31, 2002, 2001 and 2000
and for each of the years then ended. The segment results have been affected by charges discussed in Notes 19 and 20. For cer-
tain income statement items that are affected by asset securitizations at TRS, data is provided on both a managed basis, which
excludes the effect of securitizations, as well as on a GAAP basis. See Note 4 to the Consolidated Financial Statements and the
TRS Results of Operations section of the Financial Review for further information regarding the effect of securitizations on
the financial statements. In addition, net revenues (managed basis) are presented net of provisions for losses and benefits for
annuities, insurance and investment certificate products of AEFA.