The following table presents the year-end and average balances, as well as the delinquent and net charge-off amounts of the reported, off-balance sheet and managed consumer loan portfolios. Supplemental Loan Information Year Ended December 31 2002 2001 Loans Loans Loans Loans Outstanding Delinquent Outstanding Delinquent Managed loans $ 59,746,537 $ 3,345,394 $ 45,263,963 $ 2,241,647  Off-balance sheet loans (31,892,885) (1,533,030) (24,342,949) (1,229,090)  Reported consumer loans $ 27,853,652 $ 1,812,364 $ 20,921,014 $ 1,012,557  Average Net Charge- Average Net Charge- Loans Offs Loans Offs Managed loans $ 52,799,566 $ 2,769,249 $ 35,612,317 $ 1,655,947  Off-balance sheet loans (27,259,570) (1,509,565) (18,328,011) (833,690) Reported consumer loans $ 25,539,996 $ 1,259,684 $ 17,284,306 $ 822,257 Beneficial Interests in Securitized Financial Assets , the interest component of cash flows attributable to retained interests in securitizations is recorded in other interest income.  The Company’s retained residual interests in the off-balance sheet securitizations are recorded in accounts receivable from securitizations, and are comprised of interest-only strips, retained subordinated undivided interests in the transferred receivables, cash collateral accounts and accrued but unbilled interest on the transferred receivables. The interest-only strip is recorded at fair value, while the other residual interests are carried at cost, which approximates fair value. Retained residual interests totaled $1.1 billion and $934.3 million at December 31, 2002 and 2001, respectively. The Company’s retained residual interests, as well as the billed finance charge and fee receivables, are generally restricted or subordinated to investors’ interests and their value is subject to substantial credit, repayment and interest rate risks on the transferred financial assets. The investors and the trusts have no recourse to the Company’s assets, other than the retained residual interests, if the off-balance sheet loans are not paid when due.  The key assumptions used in determining the fair value of the interest-only strips resulting from securitizations of consumer loan receivables completed during the period included the weighted average ranges for charge-off rates, principal repayment rates, lives of receivables and discount rates included in the following table. The gain on sale recorded from off-balance sheet securitizations is based on the estimated fair value of the assets sold and retained and liabilities incurred, and is recorded at the time of sale in servicing and securitizations on the consolidated statements of income. The related receivable is the interest-only strip, which is based on the present value of the estimated future cash flows from excess finance charges and past-due fees over the sum of the return paid to security holders, estimated contractual servicing fees and credit losses. The Company periodically reviews the key assumptions and estimates used in determining the value of the interest-only strip. Prior to December 31, 2002, decreases in fair value below the carrying amount as a result of changes in the key assumptions were recognized in servicing and securitizations income, while, increases in fair values as a result of changes in key assumptions were recorded as unrealized gains and included as a component of cumulative other comprehensive income, on a net-of-tax basis, in accordance with the provisions of SFAS No. 115,  Accounting for Certain Investments in Debt and Equity Securities . Effective December 31, 2002 and for all subsequent periods, the Company recognizes all changes in the fair value of  the interest-only strip immediately in servicing and securitizations on the consolidated statements of income. In accordance with EITF 99-20, Recognition of Interest Income and Impairment of Purchased and Retained If these assumptions are not met, or if they change, the interest-only strip and related servicing and securitizations income would be affected. The following adverse changes to the key assumptions and estimates, presented in accordance with SFAS 140, are hypothetical and should be used with caution. As the figures indicate, any change in fair value based on a 10% or 20% variation in assumptions cannot be extrapolated because the relationship of a change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the interest-only strip is calculated independently from any change in another assumption. However, changes in one factor may result in changes in other factors, which might magnify or counteract the sensitivities. Securitization Key Assumptions Year Ended December 31 2002 2001 Weighted average life  for receivables (months) 8 to 10 6 to 9 Principal repayment rate  (weighted average rate) 13% to 15% 13% to 15% Charge-off rate  (weighted average rate) 5% to 6% 4% to 6% Discount rate  (weighted average rate) 8% to 9% 9% to 11% 70