American Express 2004 Annual Report Download - page 118

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years. Comprehensive income in the Consolidated
Statements of Shareholders’ Equity is presented net of
the following income tax provision (benefit) amounts:
COMPREHENSIVE INCOME COMPONENTS
(Millions) 2004 2003 2002
Net unrealized securities
(losses) gains $ (92) $ (91) $ 415
Net unrealized derivative
gains (losses) 152 60 (130)
Foreign currency
translation gains (losses) 11 (5) (14)
Minimum pension liability —18 29
Net income tax provision
(benefit) $71 $ (18) $ 300
Note 18 EARNINGS PER COMMON SHARE
Basic EPS is computed using the average actual
shares outstanding during the period. Diluted EPS is
basic EPS adjusted for the dilutive effect of stock
options, RSAs and other financial instruments that
may be converted into common shares. The basic
and diluted EPS computations for the years ended
December 31 are as follows:
(Millions, except per share amounts) 2004 2003 2002
Numerator:
Income before
accounting change $ 3,516 $ 3,000 $ 2,671
Cumulative effect of
accounting change,
net of tax (71) (13) —
Net Income $ 3,445 $ 2,987 $ 2,671
Denominator:
Basic: Weighted-
average shares
outstanding during
the period 1,259 1,284 1,320
Add: Dilutive effect of
stock options,
restricted stock
awards and other
dilutive securities 26 14 10
Diluted 1,285 1,298 1,330
Basic EPS:
Income before
accounting change $ 2.79 $ 2.34 $ 2.02
Cumulative effect of
accounting change,
net of tax (0.05) (0.01) —
Net income $ 2.74 $ 2.33 $ 2.02
Diluted EPS:
Income before
accounting change $ 2.74 $ 2.31 $ 2.01
Cumulative effect of
accounting change,
net of tax (0.06) (0.01) —
Net income $ 2.68 $ 2.30 $ 2.01
AXP
AR.04
116
Notes to Consolidated Financial Statements