Consolidated Balance Sheets Consolidated Statements of Operations December 31,  (in millions, except share data) 2001 2000 Assets Current assets Cash and cash equivalents $ 48 $ 28 Accounts receivable, net of allowances of $ 5 and $ 5 85 107 Other receivables 16 22 Inventories 87 87 Deferred income taxes 18 23 Prepaid expenses 19 14 Other current assets 20 20 Total current assets 293 301 Property, plant and equipment, net 178 183 Goodwill and other intangibles, net 402 511 Investments in unconsolidated affiliates 93 98 Other assets 7 14 Total assets $ 973 $ 1,107 Liabilities and Stockholders’ Equity Current liabilities Accounts payable and accrued liabilities $ 183 $ 177 Short-term debt 1 61 Total current liabilities 184 238 Long-term debt 310 367 Other liabilities 20 62 Commitments and contingent liabilities Stockholders’ equity Preferred stock, $ 0 . 01 par value, authorized  50,000,000 shares, no shares outstanding — — Common stock, $ 1.00 par value, authorized  350,000,000 shares, 59,327,872 and  58,668,393 shares outstanding  59 59 Additional contributed capital 287 277 Retained earnings 88 103 Accumulated other comprehensive income 26 1 Common stock in treasury, at cost ( 1 ) — Total stockholders’ equity 459 440 Total liabilities and stockholders’ equity $ 973 $ 1,107 Years Ended December 31,  (in millions, except per share information) 2001 2000 1999 Net sales $ 692 $ 804 $ 905 Cost of goods sold 324 423 466 Gross profit 368 381 439 Selling, general and administrative expenses 203 216 233 Research and development expenses 55 55 55 Goodwill amortization 19 29 34 Disposition of assets and other non-recurring charges, net 83 312 — Non-recurring spin-off expenses — 18 — Other operating income ( 16 ) ( 14 ) — Operating income (loss) 24 ( 235 ) 117 Interest expense, net 23 20 — Other expense, net 10 4 4 Income (loss) before provision for income taxes ( 9 ) ( 259 ) 113 Provision for income taxes 1 13 31 Income (loss) before cumulative effect of change in accounting principle ( 10 ) ( 272 ) 82 Cumulative effect of change in accounting principle, net of tax (Note  2 ) ( 1 ) — — Net income (loss) $ ( 11 ) $ ( 272 ) $ 82 Share information (Note  1 ): Earnings per basic and diluted share Loss before cumulative effect of change in accounting principle $ ( 0.17 ) — — Cumulative effect of change in accounting principle (Note  2 ) $ ( 0.02 ) — — Net loss $ ( 0.19 ) — — Weighted average number of common shares outstanding Basic 59 — — Diluted 59 — — The accompanying notes are an integral part of these consolidated financial statements. The accompanying notes are an integral part of these consolidated financial statements. 26 Edwards Lifesciences Corporation 27 Edwards Lifesciences Corporation