ZIMMER HOLDINGS, INC. AND SUBSIDIARIES 2003 FORM 10-K Consolidated Balance Sheets (in millions, except share amounts) December 31, 2003 2002 ASSETS Current Assets: Cash and equivalents $ 77.5 $ 15.7 Restricted cash 14.5 – Accounts receivable, less allowance for doubtful accounts 486.4 214.8 Inventories, net 527.7 257.6 Prepaid expenses 43.5 71.7 Deferred income taxes 189.1 52.6 Total Current Assets 1,338.7 612.4 Property, Plant and Equipment, net 525.2 157.8 Goodwill 2,291.8 – Intangible Assets 760.5 – Deferred Income Taxes 161.2 70.1 Other Assets 78.6 18.6 Total Assets $5,156.0 $858.9 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 127.6 $ 59.8 Income taxes payable (receivable) (59.0) 19.5 Other current liabilities 475.4 164.8 Short-term debt 101.3 156.7 Total Current Liabilities 645.3 400.8 Other Long-term Liabilities 352.6 91.8 Long-term Debt 1,007.8 – Total Liabilities 2,005.7 492.6 Commitments and Contingencies (Note 21) Minority Interest 7.0 – Stockholders’ Equity: Common stock, $0.01 par value, one billion shares authorized, 242.4 million (195.2 million in 2002) issued and outstanding 2.4 2.0 Paid-in capital 2,342.5 36.9 Retained earnings 659.7 313.4 Accumulated other comprehensive income 138.7 14.0 Total Stockholders’ Equity 3,143.3 366.3 Total Liabilities and Stockholders’ Equity $5,156.0 $858.9 The accompanying notes are an integral part of these consolidated financial statements. 36