Years Ended December 31, (in millions, except per share information) 2002 2001 2000 Net sales $ 704.0 $ 692.1 $ 803.8 Cost of goods sold 299.1 323.7 423.3 Gross profit 404.9 368.4 380.5 Selling, general and administrative expenses 227.9 203.2 215.6 Research and development expenses 65.2 55.0 54.4 Goodwill amortization — 18.5 28.5 Disposition of assets and other non-recurring charges, net 67.4 83.0 312.2 Non-recurring spin-off expenses 3.3 — 18.4 Other operating income (11.0) (16.4) (14.0) Operating income (loss) 52.1 25.1 (234.6) Interest expense, net 11.5 22.9 20.0 Other (income) expense, net (15.4) 10.6 3.8 Income (loss) before provision for income taxes 56.0 (8.4) (258.4) Provision for income taxes 0.3 1.5 13.3 Income (loss) before cumulative effect of change in accounting principle 55.7 (9.9) (271.7) Cumulative effect of change in accounting principle, net of tax (Note 2) — 1.5 — Net income (loss) $ 55.7 $ (11.4) $ (271.7) Share information (Note 2): Earnings (loss) per basic share Income (loss) before cumulative effect of change in accounting principle $ 0.94 $ (0.17) — Cumulative effect of change in accounting principle (Note 2) $ — $ (0.02) — Net income (loss) $ 0.94 $ (0.19) — Earnings (loss) per diluted share Income (loss) before cumulative effect of change in accounting principle $ 0.91 $ (0.17) — Cumulative effect of change in accounting principle (Note 2) $ — $ (0.02) — Net income (loss) $ 0.91 $ (0.19) — Weighted average number of common shares outstanding Basic 59.0 58.9 — Diluted 61.3 58.9 — The accompanying notes are an integral part of these consolidated financial statements. S51 Edwards Lifesciences Corporation CONSOLIDATED STATEMENTS  OF OPERATIONS