condensed consolidated statements of operations Year ended December 31, PRODUCT SALES Net sales $1,755.4 $1,385.0 $1,142.1 Cost of sales 320.3 221.7 198.1 Product gross margin 1,435.1 1,163.3 944.0 RESEARCH SERVICES Research service revenues (primarily from related party through April 16, 2001) 16.0 40.3 60.3 Cost of research services 14.5 36.6 56.1 Research services margin 1.5 3.7 4.2 Selling, general and administrative 693.6 629.5 481.1 Research and development 763.5 233.1 227.5 Technology fees from related party – – (0.7) Legal settlement – 118.7 – Restructuring charge (reversal) and asset write-offs, net (0.4) 62.4 (1.7) Operating income (loss) (20.1) 123.3 242.0 Interest income 13.0 15.8 30.6 Interest expense (15.6) (17.4) (18.1) Loss on investments, net – (30.2) (4.5) Unrealized (loss) gain on derivative instruments, net (0.3) (1.7) 4.2 Other, net (6.5) – 6.1 Earnings (loss) from continuing operations before income taxes and minority interest (29.5) 89.8 260.3 Provision for income taxes 22.2 25.1 88.5 Minority interest 0.8 0.7 0.6 Earnings (loss) from continuing operations (52.5) 64.0 171.2 Earnings from discontinued operations, net of applicable income tax expense of $7.0 million and $20.6 million for years ended 2002 and 2001, respectively – 11.2 54.9 Cumulative effect of change in accounting principle, net of $0.5 million of tax – – (1.2) NET EARNINGS (LOSS) $ (52.5) $ 75.2 $ 224.9 Basic: Continuing operations $ (0.40) $ 0.49 $ 1.30 Discontinued operations – 0.09 0.42 Cumulative effect of accounting change, net – – (0.01) Net basic earnings (loss) per share $ (0.40) $ 0.58 $ 1.71 Diluted: Continuing operations $ (0.40) $ 0.49 $ 1.29 Discontinued operations – 0.08 0.40 Cumulative effect of accounting change, net – – (0.01) Net diluted earnings (loss) per share $ (0.40) $ 0.57 $ 1.68 In millions, except per share data 2003 2002 2001