Consolidated Results of Operations Income from continuing operations was $467 million in 2003 compared with a loss of $245 million, including impair- ments, in 2002 and income of $816 million in 2001. Including income from discontinued operations, net income for 2003 was $643 million, compared with a net loss of $218 million in 2002 and net income of $914 million in 2001. The following items, on an after-tax basis, are included in income from continuing operations for the years 2003, 2002 and 2001: The after-tax results by major operating activity for 2003, 2002 and 2001 are summarized below: The items in the table above are explained on pages 18, 19 and 20. The pre-tax amounts are shown on pages 18 and 20. Exploration and Production: After considering the explo- ration and production items in the preceding table (described on page 18), the remaining changes in explo- ration and production earnings are primarily attributable to changes in selling prices, production volumes and operating costs and exploration expenses, as discussed below. Selling prices: Higher average selling prices of crude oil, natural gas liquids and natural gas increased exploration and production revenues from continuing operations by approximately $170 million in 2003 compared with 2002. In 2002, the change in average selling prices did not significantly affect revenues compared with 2001. The Cor- poration’s average selling prices from continuing opera- tions, including the effects of hedging, were as follows: In the discussion which follows, the financial effects of cer- tain transactions are disclosed on an after-tax basis. Man- agement reviews segment earnings on an after-tax basis and uses after-tax amounts in its review of variances in seg- ment earnings. Management believes that after-tax amounts are a preferable method of explaining variances in earnings, since they show the entire effect of a transaction rather than only the pre-tax amount. After-tax amounts are determined by applying the appropriate income tax rate in each tax jurisdiction to pre-tax amounts. Millions of dollars 2003 2002 2001 Premiums on bond repurchases $(34) $ (6) $ GLYPH<209> Accrued severance and London  office lease costs (32) GLYPH<209> (10) United States income tax benefit 30 GLYPH<209> GLYPH<209> Net gains from asset sales 11 100 GLYPH<209> Asset impairments GLYPH<209> (737) GLYPH<209> Charge for increase in United  Kingdom income tax rate GLYPH<209> (43) GLYPH<209> Reduction in carrying value of  refining and marketing intangible  assets and severance GLYPH<209> (22) (2) Charge related to Enron bankruptcy GLYPH<209> GLYPH<209> (19) $(25) $(708) $(31) Millions of dollars, except per share data 2003 2002 2001 Exploration and production $ 414 $ (102) $ 796 Refining and marketing 327 85 233 Corporate (101) (63) (78) Interest expense (173) (165) (135) Income (loss) from  continuing operations 467 (245) 816 Discontinued operations Net gains from asset sales 116 GLYPH<209> GLYPH<209> Income from operations 53 27 98 Income from cumulative effect  of accounting change 7 GLYPH<209> GLYPH<209> Net income (loss) $ 643 $ (218) $ 914 Income (loss) per share from  continuing operations — diluted $5.17 $(2.78) $ 9.15 Net income (loss)  per share — diluted $7.11 $(2.48) $10.25 Comparison of Results 2003 2002 2001 Crude oil (per barrel) United States $24.23 $24.04 $23.38 Foreign 24.93 24.69 24.50 Natural gas liquids (per barrel) United States 23.74 16.12 18.76 Foreign 24.09 19.09 18.99 Natural gas (per Mcf) United States 4.02 3.72 4.02 Foreign 3.01 2.26 2.55 16