CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME (LOSS) Years Ended December 31, (in millions) 2002 2001 2000 Common Stock Beginning of year $ 59.3 $ 58.7 $ — Common stock issued in connection with the Distribution — — 58.1 Common stock issued under employee benefit plans 0.9 0.6 0.6 End of year $ 60.2 $ 59.3 $ 58.7 Additional Contributed Capital Beginning of year $ 287.2 $ 277.4 $ — Common stock issued in connection with the Distribution — — 269.5 Acquisition of joint venture in Japan (Notes 1 and 3) 110.8 — — Stock options issued to non-employees 1.2 1.6 1.7 Common stock issued under employee benefit plans 12.8 8.2 6.2 End of year $ 412.0 $ 287.2 $ 277.4 Retained Earnings Beginning of year $ 87.7 $ 102.9 $ 417.5 Net income (loss) 55.7 (11.4) (271.7) De-consolidation of Japan — — Elimination of reporting lag for certain international operations (Note 2) — (3.8) — End of year $ 143.4 $ 87.7 $ 102.9 Accumulated Other Comprehensive Income (Loss) Beginning of year $ 25.2 $ 0.6 $ (26.5) Other comprehensive (loss) income (69.9) 24.6 27.1 End of year $ (44.7) $ 25.2 $ 0.6 Treasury Stock Beginning of year  $ (0.7) $ — $ — Purchases of stock (30.8) (0.7) — End of year $ (31.5) $ (0.7) $ — Investment by Baxter International Inc., net Beginning of year $ — $ — $ 833.5 Investments by and advances from (payments to) Baxter International Inc., net — — (833.5) End of year $— Total stockholders’ equity $ 539.4 $ 458.7 $ 439.6 Comprehensive Income (Loss) Currency translation adjustments, net of tax $ (8.0) $ 29.9 $ (2.6) Currency translation adjustment in connection with the Japan business  (Notes 1 and 3) (47.8) — — Currency translation adjustment in connection with the Distribution — — 27.4 Pension adjustments, net of tax (1.7) — — Unrealized net (loss) gain on investments in unconsolidated affiliates, net of tax (1.7) (5.8) 2.3 Net unrealized (loss) gain on cash flow hedges, net of tax (10.7) 0.5 — Other comprehensive income (loss) (69.9) 24.6 27.1 Net income (loss) 55.7 (11.4) (271.7) Total comprehensive income (loss) $ (14.2) $ 13.2 $ (244.6) The accompanying notes are an integral part of these consolidated financial statements. S53 Edwards Lifesciences Corporation