Consolidated Statements of Operations and Comprehensive Income Dollars in thousands, except per share amounts For the Year Ended December 31,  2003 2002  2001 (Note 2)  (Note 2) REVENUE: Minimum rent  $ 1,375,407 $ 1,297,047 $ 1,271,142 Overage rent  47,991 47,314 48,534 Tenant reimbursements  674,854 643,049 606,516 Management fees and other revenues (Note 3)  78,292 — — Other income  137,109 136,742 122,643 Total revenue 2,313,653 2,124,152 2,048,835 EXPENSES: Property operating  327,819 307,411 285,955 Depreciation and amortization  498,136 467,395 453,557 Real estate taxes  219,274 210,181 198,190 Repairs and maintenance  84,623 74,098 77,940 Advertising and promotion  61,765 59,857 63,258 Provision for credit losses  14,253 9,014 8,415 Home and regional office costs (Note 3)  80,105 45,159 44,758 General and administrative (Note 3)  15,083 3,233 3,054 Costs related to withdrawn tender offer (Note 11)  10,581 — — Other  27,229 29,548 33,290 Impairment on investment properties  — — 47,000 Total operating expenses 1,338,868 1,205,896 1,215,417 OPERATING INCOME 974,785 918,256 833,418 Interest expense  602,510 599,266 607,625 Income before minority interest 372,275 318,990 225,793 Minority interest  (7,277 ) (10,498 )  (10,593 ) Gain (loss) on sales of assets and other, net (Note 4)  (5,146 ) 162,011 2,610 Gain from debt related transactions, net (Note 3)  —  14,576 273 Income tax expense of taxable REIT subsidiaries  (7,597 ) — — Income before unconsolidated entities 352,255 485,079 218,083 Loss from MerchantWired, LLC, net (Note 7)  —  (32,742 )  (18,104 ) Income from other unconsolidated entities  99,645 92,811 82,481 Income from continuing operations 451,900 545,148 282,460 Results of operations from discontinued operations  7,421 16,507 — Gain on disposal or sale of discontinued operations, net  22,394 — Cumulative effect of accounting change  — (1,700 ) Income before allocation to limited partners 481,715 561,655 280,760 LESS: Limited partners’ interest in the Operating Partnerships  100,956 127,727 55,526 Preferred distributions of the Operating Partnership  12,044 11,340 11,417 Preferred dividends of subsidiary  — — 14,668 NET INCOME 368,715 422,588 199,149 Preferred dividends  (55,138 ) (64,201 )  (51,360 ) NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 313,577 $ 358,387 $ 147,789 BASIC EARNINGS PER COMMON SHARE: Income from continuing operations  $  1.53 $  1.92 $  0.87 Net income 1.65 1.99 0.86 DILUTED EARNINGS PER COMMON SHARE: Income from continuing operations  $  1.53 $  1.92 $  0.86 Net income 1.65 1.99 0.85 Net Income $ 368,715 $ 422,588 $ 199,149 Cumulative effect of accounting change  — — (1,995 ) Unrealized gain (loss) on interest rate hedge agreements  21,135 4,431 (12,041 ) Net (income) loss on derivative instruments reclassified from accumulated other comprehensive income (loss) into interest expense  (4,442 ) (982 )  4,071 Currency translation adjustment  2,993 (1,665 )  72  Other  1,009  — — Comprehensive income $ 389,410 $ 424,372 $ 189,256 The accompanying notes are an integral part of these statements. simon property group, inc. 46