In 2002 and 2001, human resources expense decreased 12 percent and 3 percent, respectively, as a result of a lower average number of employees, reflecting ongoing reengineering efforts throughout both years, and, in 2002, the impact of a technology outsourcing agreement. Other operating expenses increased 14 percent in 2002 due to higher costs related to cardmember loyalty programs, losses primarily from strategic investments versus gains in the prior year, as well as the impact of the technology out- sourcing agreement, which transferred costs from human resources expense, although at a lower level. These increases were par- tially offset by reengineering initiatives and other cost containment efforts. Similarly, in 2001, other operating expenses rose due to cardmember loyalty programs, business growth and lower gains than the prior year, partially offset by reengineering activities and other cost containment efforts. SELECTED STATISTICAL INFORMATION (Billions, except percentages and where indicated) Years Ended December 31, 2002 2001 2000 Total cards-in-force (millions): United States 35.1 34.6 33.3 Outside the United States* 22.2 20.6 18.4 Total 57.3 55.2 51.7 Basic cards-in-force (millions): United States 26.9 26.8 26.3 Outside the United States* 18.3 15.6 13.9 Total 45.2 42.4 40.2 Card billed business: United States $ 234.1 $ 224.5 $ 221.7 Outside the United States 77.3 73.5 75.0 Total $ 311.4 $ 298.0 $ 296.7 Average discount rate* 2.64% 2.67% 2.70% Average basic cardmember spending (dollars)* $ 7,645 $ 7,666 $ 8,229 Average fee per card — managed (dollars)* $ 34 $ 34 $ 36 Non-Amex brand:** Cards-in-force (millions)  0.7 0.7 0.6 Billed business $ 3.7 $ 3.4 $ 3.2 Travel sales $ 15.5 $ 17.2 $ 22.6 Travel commissions and fees/sales 9.1% 8.9% 8.1% Travelers Cheque: Sales $ 22.1 $ 23.5 $ 24.6 Average outstandings $ 6.5 $ 6.4 $ 6.4 Average investments $ 6.9 $ 6.6 $ 6.2 Tax equivalent yield 8.7% 9.0% 8.9% * Cards-in-force include proprietary cards and cards issued under network partnership agreements outside the U.S. Average Discount Rate, Average Basic Cardmember Spending and Average Fee per Card are computed from proprietary card activities only. At September 30, 2002, 1.5 million of Canadian lending cards were transferred to basic (though these types of cards were available under a supplemental card program) as the specific cards were issued under a stand-alone offer. The impact of this transfer on the year ended December 31, 2001 would have been to increase Basic Cards-in-Force Outside the U.S. to 16.8 million and decrease Average Basic Cardmember Spending to $7,447. ** These data relate to Visa and Eurocards issued in connection with joint venture activities. . I 39 AXP I FINANCIAL REVIEW