S60 Edwards Lifesciences Corporation Note 3. ACQUISITION OF JOINT VENTURE IN JAPAN NOTES TO CONSOLIDATED  FINANCIAL STATEMENTS The acquisition of the cardiovascular business in Japan was accounted for using the predecessor basis of accounting, whereby acquired assets and liabilities are recorded at their historical balances. The impact to the Company’s balance sheet on October 1, 2002 from the acquisition was as follows: Net Assets  Net (in millions) Acquired Other Impact Current assets Accounts and other  receivables, net $ 18.8 $ (14.8) (b) $ 4.0 Inventories, net 36.0 — 36.0 Prepaid expenses  and other current  assets 1.6 — 1.6 Total current  assets 56.4 (14.8) 41.6 Property, plant and  equipment, net 15.3 — 15.3 Deferred income  taxes 42.7 (a) — 42.7 Other assets 3.1 — 3.1 $1 17.5 $ (14.8) $ 102.7 Accounts payable and  accrued liabilities $ 29.6 $ (14.8) (b) $ 14.8 Long-term debt — 19.0 (c) 19.0 Other liabilities 5.9 — 5.9 Stockholders’ equity Additional  contributed capital 129.8 (19.0) 110.8 Accumulated other  comprehensive  income (47.8) — Total stockholders’ equity 82.0 (19.0) 63.0 $1 17.5 $ (14.8) $ 102.7 On October 1, 2002, the Company acquired from Baxter for $19.0 million, net, the cardiovascular business in Japan. The purchase price excluded approximately $30 million of securitized accounts receivable. In the three months ended September 30, 2002, the Company recorded a $3.3 million charge for legal, administrative and regulatory expenses related to the acquisition. Commencing October 1, 2002 the Company began reporting the results of the Japan business on a fully consolidated basis. The acquisition did not materially impact the Company’s net income as the  terms of the joint venture agreement enabled Edwards  Lifesciences to record substantially all of the net profit generated by the Japan business (see Note 1). (a) Deferred tax asset relates to a tax basis step up in connection with the acquisition. (b) To reflect the elimination of receivables and payables between Edwards Lifesciences and the joint venture in Japan which are considered intercompany balances after the acquisition. (c) To reflect the incurrence of $19.0 million of long-term debt to effect the transaction.