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Edwards Lifesciences’ operations prior to the Distribution were included in the consolidated income tax returns of Baxter. The income tax information for periods prior to the Distribution was calculated as if Edwards Lifesciences were a stand-alone affiliated group for those periods. 

The Company’s income (loss) before provision for income taxes was generated from United States and international operations as follows: 

<img src='content_image/108511.jpg'>

The provision for income taxes consists of the following: 

<img src='content_image/108512.jpg'>

## Note 14. 

## INCOME TAXES 

## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

The components of deferred tax assets and liabilities are as follows: 

<img src='content_image/108510.jpg'>

Deferred income taxes have not been provided on the undistributed earnings of the Company’s foreign subsidiaries of approximately $80.1 million as of December 31, 2002 since these amounts are intended to be permanently reinvested in foreign operations. It is not practicable to calculate the deferred taxes associated with these earnings; however, foreign tax credits would likely be available to reduce federal income taxes in the event of distribution. 

