NOTES TO CONSOLIDATED  FINANCIAL STATEMENTS Note 17.  QUARTERLY FINANCIAL RESULTS AND MARKET  FOR THE COMPANY’S STOCK (UNAUDITED) (a) The third quarter includes (1) a $67.4 million pretax charge related to the impairment of the Company’s investment in WorldH eart preferred stock, (2) a $20.1 million tax benefit related to the loss on sale of its United States perfusion services business in June 2001 resulting from tax law developments and the filing of the Company’s 2001 tax return, and (3) a $3.3 million charge for legal, administrative and regulatory expense related to the acquisition of the cardiovascular business in Japan. Number of Stockholders On February 28, 2003, there were 38,593 stockholders of record of Edwards Lifesciences’ common stock.  Dividends Edwards Lifesciences has never paid any cash dividends on its capital stock and has no current plans to pay any cash dividends. The current policy of Edwards Lifesciences is to retain any future earnings for use in the business of the Company. (b) The second quarter includes (1) a $68.2 million pretax loss on the sale of the Company’s perfusion services business to Fres enius, and (2) a $14.8 million pretax charge consisting of the write-down of selected goodwill, intangible assets and other assets. S75 Edwards Lifesciences Corporation First Second Third Fourth Total Years ended December 31, (in millions, except per share data) quarter quarter quarter quarter year 2002 Net sales $ 162.3 $ 172.8 $ 165.8 $ 203.1 $ 704.0 Gross profit 93.2 98.4 95.9 117.4 404.9 Net income (loss) (a) 20.8 30.6 (17.4) 21.7 55.7 Earnings (loss) per common share Basic 0.35 0.52 (0.30) 0.37 0.94 Diluted 0.34 0.50 (0.30) 0.36 0.91 Market price High 29.60 28.05 25.75 27.50 29.60 Low 25.00 22.18 18.40 23.81 18.40 2001 Net sales $ 191.9 $ 192.4 $ 147.8 $ 160.0 $ 692.1 Gross profit 95.7 97.2 83.4 92.1 368.4 Net income (loss) (b) 12.7 (55.7) 14.5 17.1 (11.4) Earnings (loss) per common share Basic 0.22 (0.95) 0.25 0.29 (0.19) Diluted 0.21 (0.95) 0.24 0.28 (0.19) Market price High 22.75 26.45 28.00 29.15 29.15 Low 16.75 17.80 20.40 22.60 16.75