Consolidated Statements of Cash Flows Consolidated Statements of  Stockholders’ Equity and Comprehensive Income (Loss) 30 Edwards Lifesciences Corporation 31 Edwards Lifesciences Corporation Years Ended December 31,  (in millions) 2001 2000 1999 Cash flows provided by operating activities Net income (loss) $ ( 11 ) $ ( 272 ) $ 82 Adjustments Dispositions and write-downs of assets and other non-recurring charges, net 89 333 — Depreciation and amortization 57 74 84 Deferred income taxes ( 30 ) ( 1 ) 2 Other ( 7 ) 15 10 Changes in operating assets and liabilities, net of effect from de-consolidation  of Japan business (Note  1 ) Accounts and other receivables ( 5 ) ( 8 ) 14 Inventories ( 7 ) 1 ( 14 ) Accounts payable and accrued liabilities 7 1 ( 1 ) Other 8 ( 5 ) ( 1 ) Net cash provided by operating activities 101 138 176 Cash flows from investing activities Proceeds from sale of business 45 — — Capital expenditures ( 38 ) ( 46 ) ( 42 ) Purchase of convertible debentures — ( 13 ) — Investments in unconsolidated affiliates ( 11 ) ( 28 ) — Proceeds from asset dispositions 10 12 — Investments in intangible assets ( 8 ) ( 1 ) — Other ( 2 ) — ( 7 ) Net cash used in investing activities ( 4 ) ( 76 ) ( 49 ) Cash flows from financing activities Proceeds from issuance of short-term debt 26 220 — Payments on short-term debt ( 86 ) ( 69 ) — Proceeds from issuance of long-term debt 180 449 — Payments on long-term debt ( 211 ) ( 159 ) — Proceeds from accounts receivable securitization, net 5 32 Payments to Baxter International Inc., net — ( 511 ) ( 127 ) Other 8 1 — Net cash used in financing activities ( 78 ) ( 37 ) ( 127 ) Effect of currency exchange rate changes on cash and cash equivalents 1 3 — Net increase in cash and cash equivalents 20 28 — Cash and cash equivalents at beginning of year 28 — — Cash and cash equivalents at end of year $ 48 $ 28 $ — Supplemental disclosures Cash paid during the year for: Interest $ 19 $ 17 $ — Income taxes 10 6 — Non-cash transactions: De-consolidation of Japan business (Note  1 ) $ — $ 43 $ — Sale of inventory in exchange for note receivable (Note  3 ) — 14 — Net assets sold in consideration for convertible preferred stock (Note  3 ) — 13 — The accompanying notes are an integral part of these consolidated financial statements. Years Ended December 31,  (in millions) 2001 2000 1999 Common Stock Beginning of year $ 59 $ — $ — Common stock issued in connection with the Distribution — 58 — Common stock issued under employee benefit plans — 1 — End of year $ 59 $ 59 $ — Additional Contributed Capital Beginning of year $ 277 $ — $ — Common stock issued in connection with the Distribution — 270 — Stock options issued to non-employees 2 2 — Common stock issued under employee benefit plans 8 5 — End of year $ 287 $ 277 $ — Retained Earnings Beginning of year $ 103 $ 418 $ 336 De-consolidation of Japan — ( 43 ) — Elimination of reporting lag for certain international operations (Note  2 ) ( 4 ) — — Net income (loss) ( 11 ) ( 272 ) 82 End of year $ 88 $ 103 $ 418 Investment by Baxter International Inc., net Beginning of year $ — $ 833 $ 960 Investments by and advances from (payments to) Baxter International Inc., net — ( 833 ) ( 127 ) End of year $ — $ — $ 833 Treasury Stock Beginning of year  $ — $ — $ — Purchases  ( 1 ) — — End of year $ ( 1 ) $ — $ — Accumulated Other Comprehensive Income (Loss) Beginning of year $ 1 $ ( 27 ) $ ( 25 ) Other comprehensive income (loss) 25 28 ( 2 ) End of year $ 26 $ 1 $ ( 27 ) Total stockholders’ equity $ 459 $ 440 $ 1,224 Comprehensive Income (Loss) Currency translation adjustments, net of tax $ 30 $ ( 1 ) $ ( 1 ) Unrealized net gain (loss) on investments in unconsolidated affiliates, net of tax ( 6 ) 2 ( 1 ) Net unrealized gain on cash flow hedges, net of tax 1 — — Currency translation adjustment in connection with the Distribution — 27 — Other comprehensive income (loss) 25 28 ( 2 ) Net income (loss) ( 11 ) ( 272 ) 82 Total comprehensive income (loss) $ 14 $ ( 244 ) $ 80 The accompanying notes are an integral part of these consolidated financial statements.