CONSOLIDATED STATEMENTS OF INCOME American Express Company Years Ended December 31, (Millions, except per share amounts) 2002 2001 2000 Revenues Discount revenue $ 7,931 $ 7,714 $ 7,779 Interest and dividends, net 2,991 2,137 3,290 Management and distribution fees 2,285 2,458 2,812 Securitization income 1,941 1,432 1,012 Net card fees 1,726 1,675 1,651 Cardmember lending net finance charge revenue 1,485 1,424 1,255 Travel commissions and fees 1,408 1,537 1,821 Other commissions and fees 2,113 2,088 1,989 Life and other insurance revenues 802 674 575 Other 1,125 1,443 1,491 Total revenues 23,807 22,582 23,675 Expenses Human resources 5,725 6,271 6,633 Provisions for losses and benefits: Annuities and investment certificates 1,217 1,318 1,355 Life insurance, international banking and other 1,040 909 694 Charge card 960 1,195 1,006 Cardmember lending 1,369 1,318 891 Professional services 2,021 1,651 1,530 Marketing and promotion 1,548 1,301 1,515 Occupancy and equipment 1,458 1,574 1,528 Interest 1,082 1,501 1,354 Communications 514 528 514 Restructuring charges (7) 605 — Disaster recovery charge (7) 90 — Other 3,160 2,725 2,747 Total expenses 20,080 20,986 19,767 Pretax income 3,727 1,596 3,908 Income tax provision 1,056 285 1,098 Net income $ 2,671 $ 1,311 $ 2,810 Earnings Per Common Share Basic $ 2.02 $ 0.99 $ 2.12 Diluted $ 2.01 $ 0.98 $ 2.07 Average common shares outstanding for  earnings per common share: Basic 1,320 1,324 1,327 Diluted 1,330 1,336 1,360 See Notes to Consolidated Financial Statements. I 54 AXP I CONSOLIDATED FINANCIAL STATEMENTS