2003 FORM 10-K ZIMMER HOLDINGS, INC. AND SUBSIDIARIES ITEM 6. Selected Financial Data  19 The financial information for each of the past five years ended December 31, is set forth below (in millions, except per share amounts): (1) Includes the results of Centerpulse subsequent to October 2, 2003 and Centerpulse balance sheet data as of December 31, 2003. See Note 3 to the audited financial statements for more information on the Centerpulse acquisition. (2) Pro forma net earnings for the year ended December 31, 2003 are before the cumulative effect of an accounting change of $55.1 million. The years ended December 31, 2002, 2001, 2000 and 1999 reflect the retroactive application of a new accounting method for instruments. Effective January 1, 2003, Zimmer changed its method of accounting for instruments which are owned by Zimmer and used by orthopaedic surgeons during total joint replacement and other surgical procedures. Instruments are recognized as long-lived assets and are included in property, plant and equipment and are depreciated using the straight-line method based on estimated useful lives, determined principally in reference to associated product life cycles, primarily five years. In prior periods, undeployed instruments were carried as a prepaid cost and recognized in selling, general and administrative expense in the year in which the instruments were placed into service. (3) For periods ended prior to August 6, 2001, average common shares reflect the number of shares of Company common stock outstanding on August 6, 2001, the date all of the shares of Company common stock were distributed to the stockholders of the Company’s former parent. For periods subsequent to August 6, 2001, average common shares reflect any new issuances of common stock and the dilutive effect of outstanding stock options, where appropriate. Summary of Operations 2003 (1) 2002 2001 2000 1999 Net sales $1,901.0 $1,372.4 $1,178.6 $1,040.6 $938.9 Net earnings 346.3 257.8 149.8 176.0 149.9 Pro forma net earnings assuming change in accounting principle for instruments is applied retroactively (2) 291.2 260.8 156.2 177.1 155.3 Earnings per common share Basic $ 1.67 $ 1.33 $ 0.77 $ 0.91 $ 0.77 Diluted 1.64 1.31 0.77 0.91 0.77 Pro forma earnings per common share assuming change in accounting principle for instruments is applied retroactively (2) Basic $ 1.40 $ 1.34 $ 0.81 $ 0.91 $ 0.80 Diluted 1.38 1.33 0.80 0.91 0.80 Average common shares outstanding (3) Basic 207.7 194.5 193.7 193.6 193.6 Diluted 211.2 196.8 194.3 193.6 193.6 Balance Sheet Data Total assets $5,156.0 $ 858.9 $ 745.0 $ 597.4 $605.6 Due to former parent – – – 144.0 41.0 Short-term debt 101.3 156.7 150.0 – – Long-term debt 1,007.8 – 213.9 – – Other long-term obligations 352.6 91.8 79.3 5.5 4.2 Stockholders’ equity 3,143.3 366.3 78.7 N/A N/A