The following table presents quantitative information about delinquencies, net credit losses and components of securitized U.S. cardmember loans at December 31: At December 31, 2002 and 2001, interest-only strips were $413 million and $295 million, respectively. The key economic assumptions and the sensitivity of the current year’s fair value to immediate 10 percent and 20 percent adverse changes in assumed economics are as follows: These sensitivities are hypothetical and will be different from what actually occurs in the future. Any change in fair value  based on a 10 percent variation in assumptions cannot be extrapolated because the relationship of the change in assumption on the fair value of the retained interest is calculated independent of any change in another assumption; in reality, changes in one factor may result in changes in another, which magnify or counteract the sensitivities. The table below summarizes cash flows received from securitization trusts in: The company also securitizes equipment lease receivables. At December 31, 2002 and 2001, the amounts sold and outstanding to third party investors were $254 million and $675 million, respectively. These sales result in a reduction of interest expense and provisions for losses, as well as servicing revenue, all of which are insignificant to the company’s results of operations.  Effective January 1, 2002, the company adopted SFAS No. 142, “Goodwill and Other Intangible Assets,” which established new accounting and reporting standards for goodwill and other intangible assets. Under the new rules, goodwill and other intangible assets deemed to have indefinite lives are no longer amortized but are instead subject to annual impairment tests. Management completed goodwill impairment tests as of the date of initial adoption, and again during 2002. Such tests did not indicate impairment. As of December 31, 2002, the company had acquired identifiable intangible assets with definite lives of $238 million (net of accumulated amortization of $84 million). These intangible assets have a weighted-average remaining useful life of 5 years, and mainly reflect purchased credit card relationships and certain automated teller machine merchant contracts. The aggregate amortization expense for these intangible assets during the year ended December 31, 2002 was $42 million. Estimated amorti- zation expense associated with these intangible assets for the five years ending December 31, 2007 are as follows (millions): 2003, $47; 2004, $47; 2005, $47; 2006, $45 and 2007, $26. Net goodwill was approximately $1.3 billion and $1.2 billion at December 31, 2002 and 2001, respectively. At December 31, 2002, this consisted of approximately $1.1 billion at TRS and $0.2 billion at AEFA. At December 31, 2001, the net balance consisted of approximately $1.0 billion at TRS and $0.2 billion at AEFA. I 67 AXP I NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 5 GOODWILL AND OTHER INTANGIBLES Total Principal Principal Amount of Loans Net Credit Losses  (Billions) Amount of Loans 30 Days or More Past Due During the Year 2002 2001 2002 2001 2002 2001 Cardmember loans managed $ 32.8 $ 30.2 $ 1.1 $ 1.1 $ 1.9 $ 1.7 Less: Securitized cardmember loans sold 16.9 14.3 0.6 0.6 1.0 0.8 Cardmember loans on balance sheet $ 15.9 $ 15.9 $ 0.5 $ 0.5 $ 0.9 $ 0.9 Cash Flows from Average Loan Life Expected Credit Retained Interests (Millions, except rates per annum) (months) Losses Discounted at Interest Rates Assumption 5.4 5.43% 12% 2.19% Impact on fair value of 10% adverse change $ 14.3 $ 15.4 $ 1.6 $ 0.9 Impact on fair value of 20% adverse change $ 23.4 $ 38.4 $ 3.1 $ 1.7 (Millions) 2002 2001 Proceeds from new securitizations during the period $ 4,163 $ 3,919 Proceeds from reinvestment of payments in cardmember securitizations $ 36,942 $ 24,433 Servicing fees received $ 331 $ 267 Other cash flows received on retained interests $ 1,514 $ 1,194