The following table presents the impact to net income and EPS of goodwill amortization for the year ended December 31, 2001: 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. (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. I 68 AXP I NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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% (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 Short-Term Debt Long-Term Debt Note 6 SHORT- AND LONG-TERM DEBT AND BORROWING AGREEMENTS