CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY American Express Company I 57 AXP I CONSOLIDATED FINANCIAL STATEMENTS See Notes to Consolidated Financial Statements. Accumulated Other Common Capital Comprehensive Retained Three Years Ended December 31, 2002 (Millions) Total Shares Surplus Income/(Loss) Earnings Balances at December 31, 1999 $ 10,095 $ 268 $ 5,196 $ (402) $ 5,033 Comprehensive income: Net income 2,810 2,810 Change in net unrealized securities gains 151 151 Foreign currency translation adjustments 33 33 Total comprehensive income 2,994 Repurchase of common shares (1,327) (5) (228) (1,094) Other changes, primarily employee plans 348 2 471 (125) Cash dividends declared: Common, $0.32 per share (426) (426) Balances at December 31, 2000 11,684 265 5,439 (218) 6,198 Comprehensive income: Net income 1,311 1,311 Change in net unrealized securities gains 479 479 Cumulative effect of adopting SFAS No. 133 (120) (120) Change in net unrealized derivatives losses (605) (605) Derivatives losses reclassified to earnings 429 429 Foreign currency translation adjustments (39) (39) Minimum pension liability adjustment (103) (103) Total comprehensive income 1,352 Repurchase of common shares (626) (2) (53) (571) Other changes, primarily employee plans 51 3 141 (93) Cash dividends declared: Common, $0.32 per share (424) (424) Balances at December 31, 2001 12,037 266 5,527 (177) 6,421 Comprehensive income: Net income 2,671 2,671 Change in net unrealized securities gains 770 770 Change in net unrealized derivatives losses (614) (614) Derivatives losses reclassified to earnings 372 372 Foreign currency translation adjustments (86) (86) Minimum pension liability adjustment 54 54 Total comprehensive income 3,167 Repurchase of common shares (1,153) (7) (139) (1,007) Other changes, primarily employee plans 235 2 287 (54) Cash dividends declared: Common, $0.32 per share (425) (425) Balances at December 31, 2002 $ 13,861 $ 261 $ 5,675 $ 319 $ 7,606