($204 million), ($428 million) and ($55 million) in other-than-temporary impairments on structured securities and corporate debt securities for the years ended December 31, 2002, 2001 and 2000, respectively. For the year ended December 31, 2001, the “Investment Income” line in the Statement of Income is reduced by a $34 million charge ($22 million after-tax) related to the cumulative effect of the adoption of EITF Issue No. 99-20, “Recognition of Inter- est Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets” as of January 1, 2001. Before this accounting change, which the company deems immaterial, the company’s consolidated net income for the year ended December 31, 2001 was $1,333 million, basic earnings per common share was $1.01, and diluted earnings per com- mon share was $1.00. Management and distribution fees declined 7 percent in 2002 due to lower average assets under management, partially offset by higher distribution fees. The distribution fee increase is the result of lower mutual fund sales being more than offset by other product related sales increases. In 2001, management and distribution fees declined 13 percent due to lower average assets under management and weaker sales, particularly in mutual fund products, reflecting the negative impact of weak equity market conditions throughout the year. Other revenues rose in both 2002 and 2001 due to increased life and property-casualty insurance premiums and charges and higher financial planning and advice service fees. The provision for losses and benefits for annuities increased 5 percent during 2002 reflecting a higher inforce level, increased costs related to guaranteed minimum death benefits, and the effect of depreciation in the S&P 500 on equity indexed annuities, partially offset by the benefit of a lower crediting rate. In 2001, the provision for losses and benefits for annuities declined due to lower fixed annuities inforce and the benefit of lower crediting rates. Insurance provisions for losses and benefits rose in 2002 and 2001, reflecting higher inforce levels in both years and, in 2002, higher claims, partially offset by a lower crediting rate. Investment certificate provisions for losses and benefits decreased 44 percent during 2002 due to lower crediting rates, partially offset by higher average reserve levels and the effect on the stock market certificate product of depreciation in the S&P 500 during 2002. Investment certificate provisions for losses and benefits decreased slightly in 2001 as higher average reserve levels were offset by lower crediting rates. In the following table, the company presents AEFA’s aggregate revenues on a basis that is net of provisions for losses and benefits because the company manages the AEFA business and evaluates its financial performance, where appropriate, in terms of the “spread” on its products. An important part of AEFA’s business is margin related, particularly the insurance, annuity and certifi- cate businesses. One of the gross margin drivers for the AEFA business is the return on invested cash, primarily generated by sales of insurance, annuity and investment certificates, less provisions for losses and benefits on these products. These investments tend to be interest rate sensitive. Thus, GAAP revenues tend to be higher in periods of rising interest rates, and lower in times of decreasing interest rates. The same relationship is true of provisions for losses and benefits, only it is more accentuated period-to- period because rates credited to customers’ accounts generally reset at shorter intervals than the yield on underlying investments. The company presents this portion of the AEFA business on a net basis to eliminate potentially less informative comparisons of period-to-period changes in revenue and provisions for losses and benefits in light of the impact of these changes in interest rates. Years Ended December 31, (Millions) 2002 2001 2000 Total GAAP revenues $ 5,617 $ 4,791 $ 6,130 Less: Provision for losses and benefits – Annuities 1,034 989 1,018 Insurance 737 648 556 Investment certificates 183 329 337 Total 1,954 1,966 1,911 Net revenues $ 3,663 $ 2,825 $ 4,219 Human resources expense declined 4 percent in 2002, reflecting lower field force compensation-related costs and the benefits  of reengineering and cost containment initiatives within the home office where the average number of employees was down  15 percent from last year. Human resources expense also declined in 2001, reflecting lower field force compensation-related expenses due to the decline in the number of advisors and the impact of lower volumes on advisor compensation, as well as the I 44 AXP I FINANCIAL REVIEW