A summary of the calculation of basic and diluted earnings per share (EPS) for the years ended December 31, 2002, 2001 and 2000 is as follows: 11 Earnings Per Share The following options were outstanding during the respective years shown below, but were not included in the  computation of that year’s diluted EPS because the options’ exercise prices were greater than the average market price  of the common shares shown below, therefore, making them anti-dilutive under the treasury method. Outstanding Options Options Exercise Options Exercise Options Exercise Granted Price Expiration Granted Price Expiration Granted Price Expiration 2002 2001 2000 22,150 $31.75 - $41.00 2005 34,450 $30.50 - $46.25 2005 226,400 $56.25 - $65.75 2006 13,900 $30.50 - $41.50 2006 224,100 $30.50 - $65.75 2006 4,000 $65.75 2009 423,616 $25.38 - $42.72 2007 472,566 $25.38 - $42.38 2007 1,316,150 $40.00 - $69.81 2010 10,175 $26.25 - $31.00 2008 11,675 $26.25 - $31.00 2008 874,480 $35.86 - $39.69 2009 967,140 $25.38 - $51.44 2009 60,000 $39.00 - $69.81 2010 1,274,364 $39.00 - $69.81 2010 1,310,654 $25.34 - $28.08 2011 1,396,090 $25.34 - $28.08 2011 85,500 $25.97 - $32.90 2012 Year Ended December 31, 2002  Income Shares Per-Share** (Numerator) (Denominator) Amount** Basic EPS Income available to common stockholders $24,775,962 38,045,128 $0.65*$_{*}$ Effect of Dilutive Securities Stock options 176,622 Diluted EPS Income available to common stockholders (with dilution) for assumed options exercised $24,775,962 38,221,750 $0.65*$_{*}$ Year Ended December 31, 2001 Basic EPS Income available to common stockholders $17,328,529 38,567,324 $0.45$_{**}$ Effect of Dilutive Securities Stock options 108,863 Diluted EPS Income available to common stockholders (with dilution) for assumed options exercised $17,328,529 38,676,187 $0.45$_{**}$ Year Ended December 31, 2000 Basic EPS Income available to common stockholders $120,802,261 38,647,288 $3.13** Effect of Dilutive Securities Stock options 1,056,998 Diluted EPS Income available to common stockholders (with dilution) for assumed options exercised $120,802,261 39,704,286 $3.04** **ADTRAN reported a realized investment gain from the sale of certain marketable equity securities, resulting in an after-tax gain of $55,410,000 ($1.39 per share assuming dilution). *ADTRAN ™ reported an impairment charge related to other-than-temporary declines in the fair value of equity securi- ties, resulting in an after-tax loss of $7,430,565 ($0.20 per share assuming dilution). 34 ADTRAN 2002 Annual Report