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: 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. 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. I 80 AXP I NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Operating Segments Note 18 OPERATING SEGMENTS AND GEOGRAPHIC OPERATIONS (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