NOTES TO CONSOLIDATED  FINANCIAL STATEMENTS occurred had the ELCR Sale been consummated on  January 1, 2001. The following amounts are in millions, except per share amounts: Other Non-recurring Charges ($14.8 million) Based upon the non-strategic nature and declining profitability of certain products in the Company’s portfolio (including certain distributed products), the Company decided during the quarter ended June 30, 2001 to discontinue its sales effort of these products. The long-lived assets and the investments related to these products were evaluated to determine whether any impairment in their recoverability existed at the determination date. As a result, Edwards Lifesciences assessed whether the estimated cash flows of the products or investments over the estimated lives of the related  assets were sufficient to recover their costs. Where such cash flows were insufficient, the Company utilized a  discounted cash flow model to estimate the fair value of assets or investments and recorded an impairment charge to adjust the carrying values to estimated fair values. As a result of this evaluation, Edwards Lifesciences recorded a non-cash charge of $14.8 million primarily related to the impairment of intangibles ($8.3 million), the impairment  of an investment ($5.5 million) and the write-down of  non-productive assets ($1.0 million). 2000  Loss on Sale and Abandonment of Assets ($302.0 million) During 2000, the Company sold the majority of its United States and Western European assets and rights related to its perfusion products to Jostra AG (the “Jostra Sale”). In accordance with SFAS No.121, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of,” and Staff Accounting Bulletin No. 100, “Restructuring and Impairment Charges,” the Company recorded a pre-tax impairment charge of $290.5 million in 2000 to reduce the carrying value of these assets to fair value based upon the estimated net proceeds from the Jostra Sale. Assets subject to this impairment charge consisted primarily of goodwill ($245.0 million) and special-use manufacturing and support assets. The goodwill impairment charge was calculated based upon a pro rata allocation of the goodwill using the relative fair values of the affected long-lived assets and identifiable intangibles acquired at the inception date of the goodwill. On August 31, 2000, Edwards Lifesciences completed the Jostra Sale for $24.0 million (consisting of $10.0 million in cash and a $14.0 million note receivable, payable in six equal quarterly installments through March 1, 2002, plus interest at an annual effective rate of 8%). All payments under the note have been made. In conjunction with the Jostra Sale, during 2000 the Company recorded charges to establish a $9.7 million reserve for personnel costs and a $1.8 million reserve for exit activities. The personnel costs consisted primarily of severance, medical plan continuation and outplacement services for the approximately 225 employees impacted by the Jostra Sale. The impacted employees were located in Europe, the United States and Puerto Rico, and primarily worked in a manufacturing capacity. The exit activities consisted primarily of information systems costs, contract termination costs and shutdown expenses. The following table summarizes the utilization of these reserves through December 31, 2001:  Balance at Balance at Initial  Utilized in December 31, Utilized in December 31, (in millions) Reserve 2000 2000 2001 2001 Personnel costs $ 9.7 $ (1.8) $ 7.9 $ (7.9) $ — Exit activities 1.8 (1.4) 0.4 (0.4) — $1 1.5 $ (3.2) $ 8.3 $ (8.3) $ — Year Ended December 31, 2001 Net sales $ 631.1 Net income 45.9 Net income per share: Basic 0.78 Diluted 0.75 S62 Edwards Lifesciences Corporation