The reconciliation of income tax attributable to continuing operations computed at the U.S. federal statutory tax rate to income tax expense was: The following table sets forth the computation of basic and diluted earnings per share: During 2002, the Company increased its valuation allowance by $7.4 million for certain state and international loss carryforwards generated during the year.  At December 31, 2002, the Company had net operating losses available for federal income taxes purposes of $55.0 million which are subject to certain annual limitations under the Internal Revenue Code, and expire at various dates from 2018 to 2020. Also, foreign net operating losses of $56.7 million (net of related valuation allowances) were available, of which $55.7 million expires at various dates from 2005 to 2008. Significant components of the provision for income taxes attributable to continuing operations were as follows: Securities of approximately 23,000,000, 5,217,000 and 5,496,000 during 2002, 2001 and 2000, respectively, were not included in the computation of diluted earnings per share because their inclusion would be antidilutive. Year Ended December 31 2002 2001 2000 Federal taxes $ 708,667 $ 138 $ 284,661 State taxes 5,485 2,214 578 International taxes 2,654 555 1,156 Deferred income taxes (165,411) 390,548 1,445 Income taxes $ 551,395 $393,455 $ 287,840 Year Ended December 31 2002 2001 2000 Numerator: Net income $ 899,644 $ 641,965 $469,634 Denominator: Denominator for basic earnings per share- Weighted-average shares 219,984 209,867 196,478 Effect of dilutive securities: Stockoptions 8,224 10,709 12,971 Restricted stock 37 - - Contingently issuable shares 499 - - Dilutive potential common shares 8,760 10,709 12,971 Denominator for diluted earnings per share- Adjusted weighted-average shares 228,744 220,576 209,449 Basic earnings per share $ 4.09 $ 3.06 $ 2.39 Diluted earnings per share $ 3.93 $ 2.91 $ 2.24 Securitizations 57,962 75, 084 Deferred revenue 915,953 624,254 Securities available for sale 33,735 5,453 Other 53,964 44,322 Total deferred tax liabilities 1,061,614 749,113 Net deferred tax liabilities $ (4,793) $ (173,022)  December 31 2002 2001 Deferred tax assets: Allowance for loan losses $ 442,393 $ 107,389 Unearned income 323,404 260,208 Stockincentive plan 49,585 48,117 Foreign  17,469 4,203 Net operating losses 19,165 23,119 State taxes, net of federal benefit 61,649 50,786 Derivative instruments 61,491 45,371 Other 142,033 89,831 Subtotal 1,117,189 629,024 Valuation allowance (60,368) (52,933) Total deferred tax assets 1,056,821 576,091 Year Ended December 31 2002 2001 2000 Income tax at statutory federal tax rate 35.00% 35.00% 35.00% Other, including state taxes 3.00 3.00 3.00 Income taxes 38.00% 38.00% 38.00% Not L Earnings Per Share Deferred tax liabilities: 65