NOTES TO CONSOLIDATED  FINANCIAL STATEMENTS Note 14.  INCOME TAXES S72 Edwards Lifesciences Corporation Edwards Lifesciences’ operations prior to the Distribution were included in the consolidated income tax returns of Baxter. The income tax information for periods prior to the Distribution was calculated as if Edwards Lifesciences were a stand-alone affiliated group for those periods.  The Company’s income (loss) before provision for income taxes was generated from United States and international operations as follows: The components of deferred tax assets and liabilities are as follows:  The provision for income taxes consists of the following: Deferred income taxes have not been provided on the undistributed earnings of the Company’s foreign subsidiaries of approximately $80.1 million as of December 31, 2002 since these amounts are intended to be permanently reinvested in foreign operations. It is not practicable to calculate the deferred taxes associated with these earnings; however, foreign tax credits would likely be available to reduce federal income taxes in the event of distribution.  December 31, (in millions) 2002 2001 Deferred tax assets Investments in unconsolidated  affiliates $ 29.7 $ — Net operating loss carryforwards 19.0 13.2 Accrued liabilities 12.0 4.9 Other intangible assets 10.5 — Allowance for doubtful accounts 7.9 5.5 Tax credit carryforwards 6.4 3.1 Compensation and benefits 5.6 6.7 Inventories 2.4 3.0 Other 9.9 4.7 Total deferred tax assets  103.4 41.1 Deferred tax liabilities Property, plant and equipment (15.8) (12.9) Deferred gain on sale of assets — (13.9) Other intangible assets — (10.0) Other (1.3) (1.1) Total deferred tax liabilities (17.1) (37.9) Valuation allowance (19.9) (4.2) Net deferred tax assets (liabilities) $ 66.4 $ (1.0) Years Ended December 31, (in millions) 2002 2001 2000 United States $ 3.5 $ (66.7) $ (320.8) International 52.5 58.3 62.4 $ 56.0 $ (8.4) $ (258.4) Years Ended December 31, (in millions) 2002 2001 2000 Current United States Federal $ 0.6 $ — $ — State and local 0.3 0.7 1.0 International  including  Puerto Rico 10.6 30.9 13.2 Current income  tax expense 11.5 31.6 14.2 Deferred United States Federal (7.4) (15.3) — State and local (0.9) (5.1) (0.9) International  including  Puerto Rico (2.9) (9.7) — Deferred income  tax benefit (11.2) (30.1) (0.9) Total income tax  expense $ 0.3 $ 1.5 $ 13.3